Colorado’s Coal Plants Extend Operations Amid Health and Climate Concerns

Colorado Springs resident Jane Ard-Smith testified before state lawmakers in April that extending the life of the Ray D. Nixon Power Plant beyond its 2029 closure date would worsen her respiratory health, sparking broader debate over the state’s energy transition. Three coal-fired plants—located in Craig, Pueblo, and Colorado Springs—have delayed shutdowns due to federal emergency orders, equipment failures, and grid constraints, according to state officials.

Why Are Colorado’s Coal Plants Extending Operations?

The Craig Generating Station, operated by Tri-State Generation and Transmission Association, remains online past its 2025 retirement date after a 90-day federal emergency order. Similarly, Xcel Energy’s Comanche Generating Station in Pueblo and Colorado Springs Utilities’ Ray D. Nixon Plant have postponed closures to address grid stability and repair costs. State law mandates phasing out coal by 2029, but utilities argue delays are necessary to meet renewable energy targets.

“Folks with breathing-related ailments like me—we looked forward to breathing a little bit easier,” Ard-Smith said during testimony. Her concerns align with health experts who warn that prolonged coal use will increase air pollution, hospital visits, and mortality rates.

What Are the Health and Environmental Impacts?

Cross-state studies link coal-fired plants to severe public health risks. A 2019 Colorado State University study found that closing such facilities could reduce deaths in marginalized communities. Conversely, keeping them operational exacerbates exposure to fine particulate matter, mercury, and greenhouse gases, which contribute to respiratory illnesses, cardiovascular disease, and climate change.

Dr. Sara Carpenter, a pediatrician and executive director of Healthy Air and Water Colorado, emphasized that coal pollution harms “lungs, hearts, and brains.” She cited research showing that reduced air pollution correlated with improved lung function in adolescents, highlighting the long-term risks of delayed transitions to renewables.

How Does This Affect Colorado’s Climate Goals?

Democratic Gov. Jared Polis admitted in May that Colorado will miss its 2040 target for 100% renewable electricity, though the state aims to meet an 80% clean energy benchmark by 2030. The extended operations of the three plants, which are among the state’s worst polluters, threaten progress on reducing emissions and improving air quality.

The International Energy Agency attributes about one-third of global warming since preindustrial times to coal combustion. In Colorado, smog from coal plants and other sources has led to failing grades for air quality in regions like Rio Blanco County, which received a “D” from the American Lung Association.

What Legal and Political Actions Are Underway?

Colorado’s attorney general and state litigators have sued the federal government over emergency orders allowing the Craig plant to stay open. A June 4 law now caps greenhouse gas emissions from coal plants operating past their planned retirement dates. Meanwhile, the Biden administration’s $700 million investment in “clean coal” projects has drawn criticism from environmental advocates.

Nationwide, over 70% of coal units slated for shutdown in 2023 remained operational, per Global Energy Monitor. The U.S. Energy Information Administration projects further delays in 2024, despite a 2.4% rise in emissions linked to coal use in 2023.

What’s Next for Colorado’s Energy Transition?

Colorado Springs Utilities plans to keep the Ray D. Nixon Plant open until 2032, citing the need for transmission upgrades and affordability concerns. The utility’s CEO argued that a 6.5% annual rate increase, already in effect, strains low-income households, which accounted for the highest number of energy assistance applications in 2025.

Public health researchers warn that prolonged coal use will worsen ozone levels during Colorado’s annual “ozone season,” prompting air quality alerts for vulnerable populations. As the state balances energy reliability with climate goals, the debate over coal’s role in the grid remains contentious.