Xcel Energy intends to shutter the 1,067-megawatt (MW) Tolk coal-fired generating station, which provides power to Texas and New Mexico, by December 31, 2032, according to an uncontested comprehensive stipulation endorsed by Southwestern Public Service (SPS), and filed with the New Mexico Public Regulation Commission (NMPRC).
On July 1, in accordance with the Public Utility Act, SPS filed its application with the commission to authorize SPS to modify the service life of Tolk.
Tolk’s depreciation rates are to be calculated based on a remaining useful life through December 31, 2037.
SPS will submit a robust analysis of Tolk abandonment and potential means of replacement by June 2021, which will include a review by an independent evaluator and be incorporated in SPS’s 2021 integrated resource plan application. The Tolk analysis will include, without limitation, replacement resources priced based on an RFP or RFI process, and the value of reselling the water rights.
In the IRP public input process and prior to filing the IRP, SPS will hold two technical conferences located in Santa Fe or Albuquerque, New Mexico.
SPS will run at least one scenario where all coal-burning units are retired or replaced by 2030.