By Jim Snyder/The Hill

A fight in Colorado over legislation that could require the state’s largest utility to switch from coal to cleaner-burning natural gas may be a precursor to a bigger battle in Washington over climate legislation.

Coal lobbyists view Colorado as a test case because they worry a trio of senators is also considering extra incentives to encourage utilities to replace older coal-fired power  plants with facilities that use natural gas or other electricity sources like solar and wind energy to lower greenhouse gas emissions.

In Colorado, the target is another pollutant, nitrogen oxide, which raises haze and ozone levels that can lead to respiratory problems. Gov. Bill Ritter (D), state lawmakers and Xcel Energy announced a plan earlier this month to require the utility to reduce nitrogen oxide levels by as much as 80 percent by 2017.

Because coal has a higher carbon content than natural gas does, another result of the legislation would be lower greenhouse gas emissions.

The governor’s office expects the bill will force Xcel to close at least two coal-fired plants that generate 900 megawatts of electricity in the Boulder and Denver areas, according to a news release from the governor’s office.

In response, the American Coalition for Clean Coal Electricity (ACCCE), a group of coal producers and users, has bought nearly $2 million worth of radio, television and newspaper ads that warn switching to natural gas will cost consumers money.

“Consumers are going to get creamed by this bill,” said Lisa Camooso Miller, a spokeswoman for ACCCE.

Representatives from the natural-gas industry say new reserves in shale rock will lower costs and moderate price swings for natural gas.

The Colorado Mining Association, an affiliate of the National Mining Association, is also lobbying against the bill. In a letter, it asks residents to send state lawmakers notes that the legislation would allow Xcel to cover the expense of switching to natural gas by raising consumer electric bills. The association also maintains the bill will cost jobs in the coal industry.

Mark Stutz, a spokesman for Xcel, said the utility would submit a plan to state regulators in August as to how it plans to meet the emissions-reduction targets. While using natural gas instead of coal is the “primary” option, according to the governor’s office, Stutz said the utility has not ruled out keeping its existing fleet of coal plants if retrofits can reduce emissions by the required amount.

He said the utility agreed to the plan because it feared eventually it would face tougher clean-air regulations from the Environmental Protection Agency.

the full story can be found here.