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By EPN Staff
Key Points
  • Several states, including Colorado, Maryland, Nebraska, Utah, Kentucky, and North Carolina, are postponing planned coal plant retirements due to rising electricity demand, reliability concerns, and delays in replacement generation projects.
  • The U.S. Department of Energy has committed over $700 million in funding to modernize and refurbish coal-fired power plants, while the EPA has delayed enforcement of regulations that could raise energy costs, signaling a broader federal shift toward maintaining grid stability.
  • Rep. Hurd (R-3) urged Energy Secretary Chris Wright to keep Colorado’s Comanche Generating Station operating under Section 202(c) of the Federal Power Act, citing its $200 million economic impact, vital tax revenue, and critical role in preventing power shortages in southern Colorado.

Facing increases in energy demand and concerns over grid reliability and energy affordability, multiple states have approved delays in the planned retirement of coal power units.  

Most recently, U.S. Rep. Jeff Hurd (R-CO) appealed directly to Energy Secretary Chris Wright to stop the closure of Comanche Generating Station in Pueblo, Colo. slated for premature closure to meet Gov. Jared Polis’ carbon reduction plan. 

His Oct. 30 letter asks the administration to direct the Public Service Company of Colorado to keep two units (Comanche 2 and 3) online until “sufficient replacement generation is online.” Comanche 2 is slated for closure later this year, while Comanche 3, currently offline for repairs, will be retired by 2030. 

Closure, mandated by the state, will adversely impact the community’s tax revenue and economy while compromising the reliability of the electrical grid.

Why it matters

Rising demand, due in part to high power usage by data centers and increased electrification of automobiles and home heating, has prompted concerns about grid reliability and energy affordability. Because of this, the Trump Administration has said it will support “reliable and affordable power, and address the “undue burden” placed on some domestic energy resources — coal being one of them

In October, the U.S. Department of Energy announced it would provide $100 million to coal-fired power plants seeking to modernize and refurbish facilities. In September, the department committed to providing $625 million for modernizing, recommissioning, and upgrading coal plants. 

Meanwhile, the Environmental Protection Agency has delayed compliance with several Biden-era regulations that could impact the affordability of coal-powered energy.  

Multiple states have also approved delays in the planned retirement of coal power units.  

  • Talen Energy delayed the 2025 closure of its Brandon Shores coal-fired facility in Maryland until 2029, until transmission upgrades are completed to provide reliable power from other sources.  
  • Next year’s conversion to natural gas at the North Omaha Power Station was delayed by a lawsuit by Nebraska Attorney General Mike Hilgers that contends the transition could jeopardize the reliability and affordability of power. 
  • PacifiCorp will extend coal-fired units at the Jim Bridger Power Plant until at least 2039 instead of converting them to natural gas. The operator will instead install carbon capture and sequestration technology.  The company also delayed the retirement of the Hunter power plant in Utah. 
  • Louisville Gas and Electric Company and Kentucky Utilities Company will extend the life of the coal-fired unit at the Mill Creek plant in Kentucky to meet rising energy demands from data centers and other economic development. 
  • Duke Energy is delaying the closure of three North Carolina plants, Belews Creek, Marshall, and Rogers Energy Complex, due to rising energy demand
The bigger picture

Hurd asked Wright to keep the power plant open under the authority of Section 202(c) of the Federal Power Act, the law invoked earlier this year to keep the J.H. Campbell Power Plant in Michigan open. The law allows such an order for 90 days, which can be renewed. 

The largest coal plant in the state generates $200 million in direct and indirect economic activity and $31 million per year in property tax revenue to the community. 

“If Comanche 2 retires this year as scheduled, and Comanche 3 continues to face mechanical and regulatory constraints, southern Colorado will face a significant reliability gap. These risks are not theoretical: they directly endanger public health and safety, particularly during extreme weather when renewable output is lowest,” wrote Hurd. 

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