Tag Archives: navajo generating station

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Coalition Formed to Combat Proposed EPA Regulations

A group of Arizona business leaders and politicians announced that they have created a coalition to address proposed regulations on the Navajo Generating Station.

The Arizona Coalition for Water, Energy and Jobs said in a press conference on Tuesday that regulations proposed by the U.S. Environmental Protection Agency, if implemented, will have an adverse effect on the Arizona economy by “significantly increasing water prices.”

The proposed regulations, which are a part of the EPA’s “regional haze program,” would require the generating station to install pollution control technology, intended to reduce haze and increase visibility over the Grand Canyon.

“This (the regulations) will not improve enjoyment of the Grand Canyon, but will increase the cost of business,” Sid Wilson, chairman of the coalition said.

Wilson, who came out of a four-year retirement from the Central Arizona Water Conservation District to chair the coalition, said during the conference that implementing the necessary emissions control technology, which are proposed to be complied with by Aug. 6, “could cost up to $1 billion.”

“At risk are 3,400 jobs each year,” said Karrin Taylor, board chair of Valley Partnership.

“If these jobs disappear, they would be very difficult to replace,” said Kelly Norton, president of the Arizona Mining Association, noting that an increase in water prices would have a “cascading effect on the economy.”

Taylor also said that the regulations would stagnate business development in Arizona.

“One of the most important considerations for developing businesses is power and water rates,” she said.  “If we double or triple the cost of water, we immediately remove an important attribute of business development.”

She said that Arizona has “always had a competitive advantage” due to its ability to offer low rates on water and power, and noted “the Navajo Generating Station is at the heart of that system.”

“We can’t put at risk such an important economic tool for a rule that will deliver no benefit,” she said.

House Speaker Andy Tobin said during the conference that the coalition is rallying both locally and in Washington for support on the issue.

“I am asking the President of the United States to protect Arizona from these regulations,” he said.

David Martin, president of the Arizona Chapter of the Associated General Contractors, said during the conference that the proposed regulations would produce results “similar to what happened at the Mohave Power Station,” which was forced to be shut down in 2005 after facing similar government intervention.

“We are not going to let special interests force us into the same corner,” he said.

Coalition members also said that the benefits of the regulations, which they cite as being based on “flawed technical analysis,” do not exceed the costs.

“The EPA has yet to thoughtfully approach the cost/benefit analysis required under law,” Martin said.  “If the costs of this rule exceed the benefits, and they clearly do, there would be no required retrofit.”

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Navajo Generating Station worth Billions to Navajo Nation

The Navajo Generating Station in northern Arizona will help contribute nearly $13 billion to the Navajo economy and help support thousands of jobs from 2020 through 2044 – if agreements can be reached to keep the plant operating beyond 2019 – according to a study prepared for the Navajo Nation and Salt River Project by the L William Seidman Research Institute at the W.P. Carey School of Business at Arizona State University.

Located on the Navajo Nation, near Page, NGS is one of the largest and most important suppliers of electricity in the Southwest.

According to the ASU report, Navajo Generating Station and Kayenta Mine: An Economic Impact Analysis for the Navajo Nation, NGS and the Kayenta Mine, the plant’s coal supplier, will contribute $12.94 billion to the Navajo Nation economy through sustained jobs and wages if the plant was to remain operational through 2044.

NGS currently employs about 518 people, nearly 86 percent of whom are Native American.  The Kayenta Mine has more than 400 employees, of whom about 90 percent are also Native American.

“I have been saying we need to protect existing jobs on the Navajo Nation,” said Navajo Nation President Ben Shelly.  “This study shows that the plant and the mine not only support existing jobs at the plant and mine, but support other jobs in the area.”

The ASU report examined the direct, indirect and induced economic impact of NGS and Kayenta Mine on the Navajo Nation using the IMPLAN model employed by the state of Arizona to examine various economic projections.  A full copy of the report is available at www.ngspower.com.

The study on the plant’s economic impact on the Navajo Nation is separate from a 2012 study from ASU that concluded that NGS and the Kayenta Mine will provide more than $20 billion in economic contributions throughout the state for the period measured from 2011 to 2044.  The new study examined the economic effects exclusively for the Navajo Nation.

Despite its economic importance, a number of significant challenges threaten the future viability of NGS.  To ensure future operations of NGS, the plant’s lease and various rights of way with the Navajo Nation must be extended and the coal supply contract with Peabody Energy renegotiated prior to any additional costly emission controls from the EPA.

The plant’s lease and various rights of way with the Navajo Nation are set to expire around 2019 and the Navajo Nation Council is currently considering legislation to extend them.  In addition, the plant’s owners are also renegotiating the coal supply contract with Peabody Energy.  Perhaps most significantly, the U.S. Environmental Protection has proposed additional and costly environmental rules to address regional visibility.

NGS is a coal-fired power plant that provides electricity to customers in Arizona, Nevada and California, and energy to pump water through the Central Arizona Project.  The participants in NGS include the plant’s operator, SRP; the U.S. Bureau of Reclamation; Arizona Public Service Co.; Los Angeles Department of Water and Power; Tucson Electric Power Co. and NV Energy.

Power Outage Map

State challenges pollution control upgrades

The Arizona Corporation Commission is criticizing recent actions by the U.S. Environmental Protection Agency to clean up the state’s power plants.

The commission voted Tuesday to file an amicus brief in federal appeals court supporting the state’s challenge to pollution control upgrades at three coal-fired power plants.

The EPA partially approved Arizona’s air quality plan for the Cholla, Coronado and Apache generating stations. But the agency set its own limits for nitrogen oxide emissions and gave the plants’ operators five years to comply.

The commission says the EPA’s decision doesn’t strike the right balance of environmental stewardship and protection of Arizona’s economy.

The commission says it also will weigh in against a proposal for pollution control upgrades at the Navajo Generating Station. Public comments are due Aug. 5.

Navajo Tribal Utility Authority Solar Investments

SRP Buys RECs From Navajo Tribal Utility Authority For Solar Investments

In an effort to support solar for more residents of the Navajo Nation, Salt River Project has agreed to purchase solar photovoltaic Renewable Energy Certificates (RECs) from the Navajo Tribal Utility Authority (NTUA), an enterprise of the Navajo Nation. The $220,000, five-year purchase agreement will be used to acquire additional off-grid systems for tribal residents.

A REC is proof that 1 megawatt-hour of electricity was generated from a renewable-energy resource. Once the electricity is generated and the provider has fed the electricity into the grid or the off-grid user has utilized the electricity, the RECs can be sold on the open market as a commodity.

“This is an opportunity that we see as a direct benefit for our solar energy customers,” said Navajo Tribal Utility Authority General Manager Walter Haase. “With this partnership, SRP is helping us help families who otherwise might not be able to have any access to electrical power. This program will provide that basic access.”

Since 1999, Navajo Tribal Utility Authority has offered solar photovoltaic power systems to its low-income residential customers who do not have access to the electric grid. Currently, NTUA rents 263 solar photovoltaic systems to Navajo tribal members.  NTUA is also adding solar systems adjacent to some of its facilities. The system in Chinle is completed and the systems in Crownpoint, Fort Defiance and Shonto are expected to be completed later this year.

In February 2012, Navajo Tribal Utility Authority also initiated a partnership with the owners of the Navajo Generating Station (NGS), of which SRP owns a 21.7% share, on a project to extend electrical power to families living within the LeChee area.  The project will bring electricity to more than 62 LeChee-area homes over a three-year period and will be joint-funded between NTUA, NGS, and the LeChee Chapter, with NGS owners contributing $2 million in funding over three years beginning in 2012.

“SRP is excited about the opportunity to partner with NTUA in providing more people on the Navajo Nation with access to electricity,” said Charlie Duckworth, Senior Director of SRP Energy Management. “The purchase adds to the number of distributed photovoltaic systems available on the Navajo Nation and improves the welfare of the Navajo people by providing more tribal members access to electricity.”

For more information on Navajo Tribal Utility Authority, visit Navajo Tribal Utility Authority’s website at ntua.com. Visit SRP’s website at srpnet.com.