Energy Environmental Blog

Long-Term Contracts Are Back

Written by Greg Russell | Apr 6, 2010 7:02:16 AM

At least, that's a significant possibility raised in this article in the Denver Post.  Colorado legislation directing Xcel Energy to come up with a comprehensive plan to cut pollution at the utility's smaller, aging coal-fired plants gives primary consideration to switching to natural gas.  Long term contracts might be one way to accomplish that:  "To facilitate that [i.e., long-term price stability], the act says utilities may, with PUC approval, enter into guaranteed gas contracts of three to 20 years."