The Comanche Power Plant in Pueblo will continue to operate a coal-powered electrical generating unit that was slated for retirement this month for one more year.

The move comes after Xcel Energy, the state’s largest utility company, petitioned in November to keep one generator operating after an outage at the coal-fired power plant. Gov. Jared Polis backed the petition.

On Wednesday, the Public Utilities Commission approved a variance submitted by the utility. This allows Comanche 2, which was slated to be retired on Dec. 31, to continue operating as Xcel fixes the Comanche 3.

“The Commission found that the outage at Comanche 3 was the sole justification for the extension of Comanche 2,” a fact sheet released by the commission said. “The cause of the (Comanche 3) outage, the steps necessary to repair it and the costs are unknown at this time.”

The petition, originally submitted in November, was initially met with concern from groups like Western Resource Advocates. The group “fights climate change to sustain the environment, economy, and people of the West,” its “about” page says online.

Keeping Comanche in operation may cost Colorado’s ratepayers about $35.4 million annually, according to a report by Grid Strategies, a power sector consulting firm. As winter rolls in, natural gas prices will rise, making it more expensive for Xcel to purchase energy.

“Due to an unexpected breakdown of one of Colorado’s coal plant units, the administration is working to keep energy production stable and protect consumers from winter energy cost spikes by keeping another unit in operation for one year beyond its anticipated closure date,” a statement from the Governor’s Office said. The state obtained roughly 43% of its energy from renewable sources in 2024 and is “well on its way to achieving 100% clean energy.”

Nationally, coal may make a comeback thanks to pushes from President Donald Trump. On Jan. 20, the president declared an energy emergency, saying generation capacity is “far too inadequate to meet our Nation’s needs.”

In an April executive order, President Trump doubled down on his commitment to coal.

“We must increase domestic energy production, including coal. Coal is abundant and cost effective, and can be used in any weather condition,” the order said. “Our nation’s beautiful clean coal resources will be critical to meeting the rise in electricity demand due to the resurgence of domestic manufacturing and the construction of artificial intelligence data processing centers.”

But coal is not the only piece of the puzzle.

Energy Secretary Chris Wright, a Colorado native, said he wants to “unleash American energy at home and abroad.” Wright said America should focus on ensuring a wide array of cheap, abundant and sustainable energy sources that include geothermal, nuclear, oil and gas, according to past coverage by the Gazette.

Nationally, and despite the president’s push, coal power plants are closing. Much of this is associated to the high costs of operation. In fact, a coal plant costs just under twice as much as a nuclear plant to run on average, according to the Energy Information Administration (EIA).

Coal cost $41.32 per megawatt-hour in 2024, according to the EIA. By comparison, nuclear energy costs about $23.08 per megawatt-hour, while “gas turbine and small scale” power sources, which include solar and wind, cost about $23 per megawatt hour.

Most of Colorado’s energy generation comes from natural gas-fired power plants. As of August, the state produced more than 2,100 thousand megawatt-hours from natural gas, 1,838 thousand megawatt hours from non-hydroelectric renewable energy, 1,295 thousand megawatt-hours were provided by coal fired plants while 153 thousand megawatt-hours came from hydroelectric sources, according to the EIA.

As part of the commission’s approval of the variance, it expects Xcel Energy to create a report providing an update on the status of Comanche Unit 3. This will happen on or before March 1, according to the commission.

After that, it expects Xcel to “file an application for any additional variances or resource approvals” on or before June 1, 2026, building on the earlier report. This report will also include an Xcel analysis of ways it can “ensure affordable and reliable electricity” for Coloradans.

Wednesday’s announcement was received positively by WRA.

“WRA is pleased the Commissioners adopted common sense guardrails in granting the petition, including robust monthly accounting, operational restrictions for Comanche 2 & 3 that will maintain the status quo from an emissions perspective,” said the group’s Clean Energy Director Erin Overturf.

Comanche 2 generates 335 megawatts of electricity. Comanche 3, a much newer unit, provides more than double that amount, generating about 750 megawatts of power.