The Pueblo Chieftain reports the Colorado Public Utilities Commission agreed to the plan Monday.
Xcel said in June that one unit at the Comanche Generating Station would be retired in 2022, 11 years early, and the other in 2025, 10 years ahead of schedule. The utility said about 80 jobs would be lost.
A third coal-fired unit would remain in operation.
Xcel plan to buy two existing gas-fired generating plants in Colorado and add five solar farms and three wind farms.
Some of the new solar farms would be built in Pueblo County, which includes the city of Pueblo.