Xcel power plant foe files appeal of PUC decision

By JOHN NORTON
THE PUEBLO CHIEFTAIN

An opponent of Xcel Energy's plan to build a new coal-fired generating unit at its Comanche Station in Pueblo has filed an appeal of the Colorado Public Utilities Commission decision approving the plant.

However, PUC spokesman Terry Bote said that since Leslie Glustrom was not an official intervenor in the case, she has no standing to file.

Bote said that the commission could probably consider the matter at one of its meetings in the next 30 days.

Glustrom, who lives in the Denver area says she represents a coalition of environmental groups, accused the commission of violating state law and its own rules by not considering the environmental costs of the plant and waiving requirements that Xcel seek bids from other power-plant builders.

Glustrom said she was going ahead with the appeal.

"The PUC left a hole big enough in its rules to drive a 750-megawatt power plant through."

She accused the commission of violating its own rules covering the approval of a least-cost power plan.

“Xcel claims that the Pueblo coal plant will save consumers money,” she said, “but their analysis is faulty in several serious ways.

"For example, Xcel’s analysis failed to take into account the possibility that coal will increase in price. Yet, just last year, many coal prices doubled or came close to doubling. Xcel isn’t very concerned about the possibility of increased costs of coal. They intend to pass those costs on to their ratepayers, just as they are presently passing on the high costs of natural gas.”

Xcel spokesman Mark Stutz defended the ruling.

"The decision by the PUC was based on a far-reaching and broad-based settlement by about a dozen groups representing the environmental community," he said.

The PUC approved a settlement worked out between Xcel and a number of groups, including the Sierra Club, that calls for more stringent pollution controls on the Pueblo plant than are in place now, increased efforts to get customers to conserve energy and other programs to promote cleaner air. Other groups, for whom global warming is a major issue, were not part of the agreement and are continuing to fight the plant.

Besides environmental issues, labor groups also tried to get Xcel to agree to hire union workers for the construction of the $1.35 billion project, but weren't able to make that a part of the settlement.

So while environmental groups that were not part of the settlement are expected to fight its permit when that goes before the state health department this summer, and possibly take the PUC to court, the Colorado Building Trades Council also is putting pressure on Xcel for a project labor agreement.

Even though voters in Pueblo approved a plan in November to use an up-front tax payment from Xcel to build a new police headquarters building and other projects, the city is still in negotiations with the utility over the terms of an annexation agreement that will bring the Comanche station into the city limits.

City officials won't comment on whether a labor agreement is part of those talks.

City Manager Dave Galli said, "We're negotiating with them the terms of the annexation agreement. All discussions have been in executive session. A lot of things aren't public at this point."

City Councilman Gilbert "Bo" Ortiz, who was elected with strong union backing, also declined to comment, but did point out that in a council meeting on Jan. 5, 2004, Xcel officials said the plant would be built by union workers.

"They did make some promises out in the private sector and in council chambers that they would sign a project labor agreement," Ortiz said this week.

However, Stutz said that Xcel is still studying the issue and hasn't made a decision yet.

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