In another example of the extraordinary amount of natural gas now available for recovery in North America, Governor Bill Ritter of Colorado has announced a legislative proposal which will “require Xcel Energy to sharply reduce pollutants by retiring, retrofitting or repowering Front Range coal-fired power plants by the end of 2017 and replacing them with facilities fueled by natural gas and other lower- or non-emitting energy sources.”

this is an example of using natural gas as a “base load” fuel to generate electrical power, instead of its traditional role of being used only for “peak load” periods.

In a press release, issued by the Governor’s office, Gov. Ritter said,

“This proposal will keep Colorado at the forefront of America’s energy revolution. It will protect consumers, clean our air and protect public health, and create new jobs by increasing demand for Colorado-produced natural gas.”

According to the Governor’s office, this proposal was worked out in conjunction with Xcel Energy who’s Colorado CEO said, “Xcel Energy supports proposed legislation to establish a comprehensive process for addressing more stringent current and future federal Clean Air Act requirements.”

Under the proposal, Xcel Energy will conduct and “evaluation of retiring or retrofitting 900 megawatts of coal-fired capacity at metro-area power plants, giving primary consideration to replacing or repowering those plants with natural gas and other lower-emitting resources.”

The full press release follows:
FOR IMMEDIATE RELEASE

FRIDAY, MARCH 5, 2010

CONTACTS

Evan Dreyer, Governor’s Office, 720.350.8370, [email protected]

Mark Stutz, Xcel Energy, 303.294.2300, [email protected]

GOV. RITTER, XCEL & COALITION ANNOUNCE ENERGY PLAN

Proposal seeks to cut air pollution and create jobs in homegrown energy sector

Gov. Bill Ritter, Xcel Energy and a coalition of lawmakers, energy companies and environmentalists announced agreement today on legislation that will lead the nation in cutting air pollution, creating jobs and increasing the use of cleaner energy sources.

The proposed Colorado Clean Air-Clean Jobs Act would require Xcel Energy to sharply reduce pollutants by retiring, retrofitting or repowering Front Range coal-fired power plants by the end of 2017 and replacing them with facilities fueled by natural gas and other lower- or non-emitting energy sources.

“Colorado’s New Energy Economy is already leading the country toward a cleaner and more secure energy future,” Gov. Ritter said. “This proposal will keep Colorado at the forefront of America’s energy revolution. It will protect consumers, clean our air and protect public health, and create new jobs by increasing demand for Colorado-produced natural gas.”

The Governor thanked Xcel Energy for its national leadership and for partnering with Colorado to create a more diverse and secure energy portfolio and to protect the state’s environment. Gov. Ritter said he hopes the proposal is supported by Democrats and Republicans alike.

Under the proposal, Xcel Energy would work with the Colorado Department of Public Health and Environment to submit plans by Aug. 15 to the state Public Utilities Commissions to reduce nitrogen oxide emissions at coal plants by up to 80 percent over the next eight years, likely sooner. Xcel is Colorado’s largest utility, serving more than 1.1 million residential customers.

Xcel Energy’s plan would include an evaluation of retiring or retrofitting 900 megawatts of coal-fired capacity at metro-area power plants, giving primary consideration to replacing or repowering those plants with natural gas and other lower-emitting resources.

“Xcel Energy supports proposed legislation to establish a comprehensive process for addressing more stringent current and future federal Clean Air Act requirements,” said David Eves, president and CEO for Public Service Co. of Colorado, an Xcel Energy company. “The company is optimistic that any final legislative proposal would focus on meeting these requirements in a fashion that is cost-effective for consumers and ensures ongoing system reliability. We look forward to working with the Governor’s Office and the General Assembly to develop the framework that will help us to meet these goals.”

State Sen. Bruce Whitehead, who will be a sponsor of the legislation in the Senate: “This is a perfect example of how we in Colorado build broad coalitions to solve our biggest challenges. We once again are demonstrating to the rest of the country how to increase economic, energy and environmental security.”

Rep. Judy Solano, a House sponsor: “One of my top priorities is creating jobs in Colorado’s nationally recognized clean energy economy. This groundbreaking proposal will help ensure stable, reliable and affordable energy for the people and businesses of our state.”

Martha Rudolph, executive director of the Colorado Department of Public Health and Environment: “The proposed Colorado Clean Air-Clean Jobs Act would protect the health of Coloradans by significantly reducing many harmful air pollutants, including those that contribute to the formation of ozone, and improve visibility conditions in our most pristine parks and wilderness areas. Utilizing the cleaner-burning home-grown energy in this proposal would help Colorado make significant progress toward meeting federal Clean Air Act requirements.”

Colorado Energy & Air Quality Facts

  • Colorado has the third-largest reserves of natural gas and is the seventh-largest producer of natural gas, with more than 41,000 active oil and gas wells.
  • Colorado’s population is expected to double to 10 million people over the next 40 years.
  • Even as the Governor’s Energy Office helps home- and business-owners save money and energy through efficiency and conservation measures, Colorado still will need an estimated 2-4 gigawatts of additional electricity by 2020 to keep pace with population growth and other demands. Colorado currently consumes 11 GW of electricity during peak summertime load periods.
  • Natural gas can play a key role as a cleaner-burning source of baseload electricity generation, which also will support increased use of wind and solar as a major source of power.
  • Reducing regional haze is a national visibility goal in the federal Clean Air Act meant to restore vistas in certain wilderness areas and national parks to natural levels.
  • Regional haze comes from numerous sources, including in-state power plants, and it impairs visibility in Colorado’s wilderness areas and national parks.
  • Colorado is working aggressively on its Regional Haze State Implementation Plan (SIP) with the U.S. EPA and other stakeholder groups.
  • The SIP will include strategies for air quality monitoring, for reducing emissions from major stationary sources that are impairing visibility and for tracking progress.
  • The Colorado Clean Air-Clean Jobs proposal will help Colorado meet its goals under the Regional Haze SIP by using cleaner-burning homegrown energy.
  • Reducing nitrogen oxide also will help protect and improve ecosystem health in
  • Colorado’s high alpine environments, especially in Rocky Mountain National Park where nitrogen oxide emissions are currently contributing to ecosystem degradation.

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