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Senate Bill 26-182

Updated Clean Energy Plan from a municipally owned utility

As a community-owned utility, we understand that rising electric prices add to the economic pressures facing families and small businesses in the Pikes Peak region. Our commitment is clear: plan for a sustainable future while keeping rates affordable and reliability strong.

We’ve made significant progress toward our Sustainable Energy Plan, like retiring the Martin Drake Power Plant, completing the 175-megawatt Pike Solar Array and adding our first 100-megawatt energy storage project. These milestones reflect our dedication to clean energy.

 

A smart, responsible transition

Achieving Colorado’s statutory deadline of 80% greenhouse gas reductions by 2030 has become increasingly challenging.

Without adjustments, we risk reliability and affordability for homes, businesses, hospitals and military installations. We remain committed to sustainability, but we need a measured approach.

The Colorado Senate and House of Representatives have passed Senate Bill 26-182, marking a significant milestone in Colorado Springs Utilities' efforts to meet the state's clean energy goals while maintaining electric reliability and affordability.

It will be sent to Governor Polis, who has signaled he will sign the bill into law. The bill gives Springs Utilities a three-year extension on the retirement of the coal unit at the Ray Nixon Power Plant.

The bipartisan legislation replaces previous legislation announced earlier this year, Senate Bill 26-022This new bill allows Colorado Springs Utilities to file a new Clean Energy Plan by the end of 2026, and creates a pathway for us to operate the coal-fired unit at our Ray Nixon Power Plant until Dec. 31, 2032. 

The new bill also requires stricter state enforcement and more transparency from Colorado Springs Utilities than was requested in the original bill.

This legislation is the result of months of collaboration with local, state and federal leaders to protect electric reliability and rate stability for our customers.

Learn more

This legislation is sponsored by Sen. Marc Snyder, Senate Minority Leader Cleave Simpson, Rep. Amy Paschal and House Minority Leader Jarvis Caldwell.

Sen. Marc Snyder (D-Manitou Springs) – "Resource planning is a complex process that requires long-term planning, and this legislation provides the flexibility necessary to adjust to the various roadblocks Colorado Springs Utilities has faced over the past two years from supply chain constraints, tariffs, the recission of clean energy tax credits, and all-around higher costs for energy.”

Minority Leader Cleave Simpson (R-Alamosa) – "Whether you live on the Front Range or in the San Luis Valley, access to transmission continues to be a necessary step in building new pathways to energy generation and in maintaining a reliable power system. This bill provides Colorado Springs Utilities a short extension on the life of its existing power plant to create the time necessary to access new transmission opportunities in the Southwest Power Pool Regional Transmission Organization.”

Minority Leader Jarvis Caldwell (R-Colorado Springs) – SB26-182 ensures that environmental policy is sensitive to Coloradans already struggling to make ends meet. SB26-182 takes a measured approach that strikes the delicate balance necessary to make certain that no one in our community is left behind in the pursuit of the state’s climate goals.”

Rep. Amy Paschal (D-Colorado Springs) – The bill requires a new, detailed generation and transmission plan including the closure of Nixon to be submitted by the end of 2026, followed by annual status updates. I encourage CSU customers to engage in the planning process to ensure your voices are heard and to subsequently ensure the plan is on track."

Important next steps

In April 2026, we entered the Southwest Power Pool's Regional Transmission Organization (RTO). Joining an RTO gives the ability to access renewable energy resources at substantially lower prices. 

Another important step will occur in June 2026 when we update our Sustainable Energy Plan. This plan will assess advanced technologies to meet emissions targets while protecting reliability and ensuring long-term rate stability.

Adding renewable energy

Also in April, we announced plans to seek bids for 300 megawatts of new electric generation from wind, solar and energy storage resources, with a target for introducing them into the system by 2030.

Customers may voice their opinion on the proposed legislation in a variety of ways, including contacting their legislators.

A timeline: challenges and our response

Colorado legislation passed in 2019 requires utilities to reduce greenhouse gas emissions by 80% by 2030 and 90% by 2050.   We have made significant progress toward these Clean Energy Plan targets, but still face unique challenges that prevent us from achieving the 2030 deadline. 

Frequently asked questions

 

When do you plan to retire the Ray Nixon Power Plant?

We are required to retire the power plant by 2030. This proposed legislation would extend that timeline.