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XL Energy outlines Pawnee conversion to natural gas, estimates $90M project and PUC deadline
Summary
XL Energy told the Brush school board it plans to convert the Pawnee plant from coal to natural gas, keeping roughly 505 MW of capacity, with construction targeting early 2025 and a PUC-mandated conversion date of Jan. 1, 2026; the company said workforce offers and tax benefits should broadly continue.
Hollins Ric, area manager for XL Energy in Northern Colorado, briefed the School District No. Re-2 Brush board on plans to convert the Pawnee power plant from coal to natural gas.
Ric said Pawnee’s capacity is about 505 megawatts and that the company plans to retain that level of firm, dispatchable generation through the conversion. He described the conversion as an approximately $90 million project that would include a boiler conversion, a new wastewater-treatment plant and a new natural-gas pipeline tie-in. Ric said construction discussions and permitting had begun and that the company hopes to start construction in the first quarter of 2025.
Ric told the board the Colorado Public Utilities Commission set a target date of Jan. 1, 2026 for the conversion. He said the utility expects to meet statewide emissions-reduction benchmarks tied to 2030 goals and that the conversion will help the company reduce emissions compared with coal. On workforce and local economics, Ric said the company’s policy is to offer affected employees roles elsewhere in the company so that layoffs are minimized, but he acknowledged not all roles would remain local. He also said property-tax revenues tied to plant operations currently contribute to county and school-district funding and that the company expects those tax benefits to remain roughly similar after conversion.
Board members questioned longer-term implications for assessed valuation and bond-redemption planning if the plant’s status changes in future years; administrators said the district will continue to analyze assessed-value scenarios and bond timelines as more information becomes available.
The presentation included a brief history of prior emissions controls installed at the plant and the role of Pawnee as a significant local taxpayer and employer. No formal action was taken; the item was presented for information and local planning.
Quote: "Target date is January 1st of 2026 that's what the Pu had Public Utilities Commission has mandated us to do," Ric said.
Next steps: Board members asked staff to consider strategic planning and bond-redemption scenarios in light of the plant’s announced timeline.
