The Texas Public Utility Commission issued a ruling permitting Southwestern Public Service Company to retire its Tolk coal facility and replace it with renewable energy infrastructure and battery storage systems. The decision also approved two natural gas peaker plants with cost restrictions. The renewable projects are projected to generate 1,100 megawatts of wind capacity, 322 megawatts of battery storage, and 189 megawatts of solar generation to serve customers in Texas and New Mexico through the Southwest Power Pool.
The Tolk plant, located in Sudan near Lubbock, will cease operations in early 2029 following approvals from both Texas and New Mexico regulatory bodies. The facility has been a significant consumer of groundwater from the Ogallala Aquifer, withdrawing 1.2 billion gallons in 2024, though consumption has declined from 3.3 billion gallons annually in 2015. The transition away from coal addresses concerns about water depletion in the drought-prone region.
Environmental advocates noted that the closure will eliminate substantial pollution from the facility’s operations. In 2025, the plant released 3.2 million tons of carbon dioxide, 5.4 million pounds of nitrogen oxide, and 15.5 million pounds of sulfur dioxide. A health analysis attributed approximately 10 premature deaths annually to the plant’s emissions, primarily affecting surrounding rural counties. The renewable energy replacement requires minimal water resources compared to the coal operation.
The regulatory pathway for Tolk’s retirement originated from a 2020 agreement with environmental groups, which initially targeted a closure date no later than 2032. The accelerated timeline reflects both the economic uncompetitiveness of the aging coal facility and the viability of renewable alternatives. New Mexico’s Public Regulation Commission approved the renewable construction and related projects earlier during the summer, while declining certain requests regarding the treatment of natural gas facilities under state energy standards.
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