Anjali Taneja House District 18 | Sierra Club Rio Grande Chapter
Yesterday, the Sierra Club entered into an uncontested comprehensive agreement in a proceeding before the New Mexico Public Regulation Commission. This proceeding will decide if Xcel Energy can adjust electricity rates. The agreement includes commitments by Xcel Energy, a subsidiary of Southwestern Public Service Company (SPS), to retire the 1,050 megawatt coal-fired Tolk power plant in Texas by 2032. Additionally, it requires a formal study to evaluate an earlier retirement scenario due to the plant’s economic decline and the depletion of the Ogallala aquifer, which supplies millions of gallons daily for cooling water. Tolk is situated in the Texas Panhandle and provides electricity to both New Mexico and Texas.
These commitments from New Mexico are pending until they receive Commission approval and will be reviewed next by a hearing examiner in February. The examiner will then submit a recommendation on the stipulation to the Commission for a final decision.
Camilla Feibelman, Director of the Rio Grande Chapter of the Sierra Club, released a statement regarding this agreement.
In 2019, Xcel filed applications in different jurisdictions seeking approval to increase its rates for customers in New Mexico and Texas. Xcel operates two large coal plants—Tolk and Harrington—in the Texas Panhandle that serve both states' customers. Through regulatory proceedings, Xcel sought approval to retire Tolk no later than 2032. Due to groundwater scarcity in the arid Texas Panhandle, Xcel aims for an earlier retirement date. According to Sierra Club reports, retiring both Xcel coal plants sooner than requested would lead to cost savings, pollution reduction, and water conservation.
