Xcel Energy’s Pawnee Station conversion to natural gas moves ahead; hearing continued, limited site prep allowed

Xcel Energy sought county approval Jan. 28 to amend a 1976 special use permit for the Pawnee Station, proposing to convert the existing 505‑megawatt coal‑fired plant to natural gas while preserving its net capacity and adding the ability to blend hydrogen or other alternative fuels at up to 30% if later approved.

Planning Administrator Nicole Hay told the Board the conversion would keep the Pawnee Station’s 505 MW capacity, add roughly 537 acres to the permitted area (from approximately 1,650 to 2,187 acres), require new short segments of gas pipeline, retire coal and ash handling equipment, and add a 13,125‑square‑foot above‑ground water treatment facility and a temporary 3.47‑acre laydown yard. The project’s timeline in the application envisions construction starting in early 2025 for service by Jan. 1, 2026. Hay said the Planning Commission recommended approval on a 7–0 vote.

The application packet and Hay’s summary also cited an emissions goal: “the conversion will assist both PSCo and the State of Colorado in achieving the reduction of carbon emissions by over 80 percent by 2030,” language read into the record by Hay from the applicant’s materials. The packet notes that state law (C.R.S. § 29‑20‑108) requires the County to take final action by March 6, 2025 on a complete application for major electric or natural gas facilities; otherwise the application is deemed approved.

County staff outlined several conditions they recommended if the Board approves the amendment, including maintaining a fire service agreement with a local fire protection district while activities are conducted on the property, submitting an updated Brush Rural Fire Protection District agreement or inclusion order within 120 days, obtaining all applicable permits before construction, and negotiating a detailed road use agreement (including baseline and post‑construction surveys, a mitigation plan, and an irrevocable letter of credit equal to 115% of estimated road restoration costs).

At the hearing, Xcel representatives described logistics and mitigation plans. Justin Muehlbauer, Project Manager, said most construction deliveries would move by road rather than rail; Richard Ferguson, Reliability Engineering Manager, said coal removal and ash handling must follow EPA and Colorado Department of Public Health and Environment (CDPHE) requirements and that any on‑site ash would be placed in a CCR‑regulated landfill on site with regulatory oversight and certification provided to the County. Xcel’s team also said it is negotiating a new service arrangement with the Brush Rural Fire Protection District and that Brush has indicated a willingness to honor the expired agreement until formal inclusion is complete.

County staff and public works officials pressed Xcel for specifics on haul routes and heavy‑haul timing because Morgan County has a planned 2025 overlay project for County Road 24 from I‑76 to State Highway 34. Public Works Director Bruce Bass told the Board the county typically receives asphalt in June and that the overlay could overlap with heavy haul activity; he noted the Board and Xcel should plan for coordination and a formal road use agreement. Xcel agreed to conduct a baseline survey and submit required materials to support road repairs after construction.

Board members also sought clarity on title and parcel ownership for an NE¼ portion of Section 17 included in the applicant’s requested expansion; County Attorney Kathryn Sellars said updated title work would be required if Xcel claims ownership. On staffing, Xcel said construction employment would average about 50 workers and rise up to 100 at peak activity; Xcel indicated long‑term operations staffing would be slightly reduced after conversion.

Commissioner Timothy A. Malone moved to continue the public hearing to Feb. 4, 2025 to allow the Board to finalize conditions including verification of ownership for the NE¼ of Section 17 and stronger assurances about fire district arrangements; Commissioner Kelvin S. Bernhardt seconded. The Board also agreed to allow limited preliminary site preparation on the property (erosion/stormwater controls, laydown yard setup and minor grading) before the continued hearing, provided Xcel obtain any required permits and the road use agreement language be updated to reflect preliminary work. The motion carried 3–0.

Next steps: the Board will revisit the amendment at the continued hearing on Feb. 4 with the expectation that Xcel provide updated ownership documentation, a road use agreement draft, and confirmation of a fire protection agreement or inclusion order. Under state statute, if the County does not act by March 6, 2025 on a complete application, the application is deemed approved under C.R.S. § 29‑20‑108.