Texas Public Utility Commission Approves Tolk Coal Plant Closure and Renewable Energy Development
The Texas Public Utility Commission (PUC) has approved Southwestern Public Service Company's (SPS) plan to close its Tolk coal plant near Lubbock and replace its capacity with renewable energy and battery storage. This decision, which also includes the approval of two new gas peaker plants with strict cost caps, will provide reliable, clean electricity to customers in the Southwest Power Pool. The plan involves the construction of 1,100 megawatts of wind power, 322 MW of battery storage, and 189 MW of solar energy, collectively capable of powering approximately 375,000 homes in Texas and New Mexico. The Tolk plant, which has been a significant consumer of water from the rapidly depleting Ogallala Aquifer, is now slated for retirement in early 2029. This move follows a 2020 agreement between SPS (owned by Xcel Energy) and the Sierra Club, which initially set a retirement date no later than 2032.