We report the creation of an interacting cold Rydberg gas of strontium atoms. We show that the excitation spectrum of the inner valence electron is sensitive to the interactions in the Rydberg gas, even though they are mediated by the outer Rydberg e
lectron. By studying the evolution of this spectrum we observe density-dependent population transfer to a state of higher angular momentum l. We determine the fraction of Rydberg atoms transferred, and identify the dominant transfer mechanism to be l-changing electron-Rydberg collisions associated with the formation of a cold plasma.
