By Chris Wack

Xcel Energy-Colorado said its upcoming Clean Energy Plan will deliver its customers an estimated 85% reduction in carbon dioxide emissions from 2005 levels by 2030.

The company said the plan will result in greater reductions than required by Colorado law and will double renewable energy and battery storage on the Xcel Energy Colorado system, providing customers with electricity derived from about 80% renewable sources while maintaining affordable and reliable energy service. In 2018, Xcel Energy said it would try to have a carbon-free electricity system by 2050.

The plan would add 5,500 megawatts of new wind, solar generation and battery storage, and significantly reduce coal plant operations by 2030, while retiring or repowering all remaining coal units by 2040.

Xcel said the plan should ensure grid stability and reliability with flexible resources capable of operating around renewable resources, as well as during times of extreme heat or cold.

Xcel Energy's Colorado said the plan should also help keep customers' electricity bills low, with customer bill increases at or below the rate of inflation.

The company said no layoffs are anticipated at any of the coal plants affected by the plan, and the company and union leaders are partnering to manage this transition through attrition, retirement and retraining of employees.

The plan will go before the Colorado Public Utilities Commission late next month.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

02-24-21 1400ET