Xcel Energy to develop 240 MW solar project to power steel mill in Colorado

Xcel Energy has signed a contract with New CF&I, Inc., a steel manufacturer based in Colorado, USA and subsidiary of Evraz, to build a 240 MW solar photovoltaic power plant at the site of the company's steel mill in Pueblo.

The mill is currently powered through a direct transmission link to the 1,410 MW Comanche coal-fired power station, which Xcel plans to close as part its Colorado Energy Plan to replace coal-fired resources and with wind and solar energy.

Under the contract, Xcel Energy will provide electric service to Evraz under new fixed rates for 23 years. The agreement allows the utility to interrupt its service to the mill if extra power is needed for grid support during peak use periods, while the solar facility would continue to supply the plant. At other times, Xcel Energy will take excess power from the solar plant to supply other customers.

Xcel Energy has submitted the proposal for the plant and contract to the Colorado Public Utilities Commission. This is contingent upon the Commission's approval of the overall energy plan, which an administrative law judge has recommended be approved by 4 September.