Arizona water utility chooses solar over coal

The decision tips the ailing Navajo Generating Station closer to its planned closure.

 

In one of the latest bids to save the Navajo Generating Station, the West’s largest coal-burning power plant, the Department of Interior has stepped in to try and stave off its closure. Last week, Timothy Petty, the Interior Department’s assistant secretary for water and science, sent a letter to the Central Arizona Project, a regional water utility, pressuring it to continue purchasing electricity from the power plant, which is slated to close in 2019.

In the past, the water project, which is operated by the Central Arizona Water Conservation District, has purchased most of its power from the generating station. However, with the impending closure of the plant, the utility began looking to new and cheaper energy sources, including renewables like solar. On Thursday, despite the Interior Department’s recommendation, CAP’s board voted to sign a 20-year power purchase agreement with a solar company.

The Navajo Generating Station, the largest coal-burning power plant in the West, is expected to close in 2019.

Those working to save the plant fear that CAP’s decision to move forward with alternative suppliers will prevent any potential investors from coming forward to buy the generating station. However, the utility has said it will still consider purchasing electricity from the power plant if a new owner can “provide competitively priced power,” CAP spokeswoman DeEtte Person said in an email.

The battle to keep the coal-fired power plant running is emblematic of a larger national effort to keep coal in operation, despite market forces that favor natural gas. As part of his “energy dominance” mandate, President Donald Trump’s administration has tried to bolster the country’s coal production, moving to lift regulatory burdens to increase the profitability of the energy source. Time and again those efforts have proven inadequate to save the struggling industry.

Several attempts have already been made in the case of the Navajo Generating Station. In April, Arizona Gov. Doug Ducey signed a bill that would provide a multi-million dollar tax break for coal in Arizona, as a way to attract a potential buyer for the generating station. A few weeks ago, Rep. Paul Gosar, R-Ariz., revealed a draft bill that would require the operator of CAP to purchase as “much of its total power requirements as possible” from the station until the utility has paid off its $1.1 billion debt. In addition to that mandate, the bill would temporarily exempt any potential new owner of the plant from having to conduct a National Environmental Policy Act review, and would waive Clean Air Act requirements, .

If no buyer comes forward — a Chicago-based company has said it might make an offer — the plant will close in December 2019. The generating station supplies over 700 jobs, 90 percent of which are held by citizens of the Navajo Nation. In a statement, Navajo Nation President Russell Begaye asked for more time to find a buyer before utilities like the CAP pursue alternatives. “We should continue to work to find solutions to keep the plant operating while supporting both the Navajo economy and families,” he said. Both the Hopi Tribe and Navajo Nation also receive royalties from coal production, with 85 percent of the Hopi Tribe’s annual budget coming from the generating station.

In the same week that the Interior Department put pressure on the Arizona utility to buy power from the generating station, directed the Department of Energy to save struggling coal and nuclear plants across the country. The memo described plans to order grid operators to buy energy from coal and nuclear plants for at least two years, allegedly to boost the resilience of the power grid, from the White House.

Despite a coal-friendly administration, Thursday’s vote for solar by the CAP board suggests that coal is no longer considered an economically viable option for future energy generation. Addressing representatives from both the Hopi Tribe and Navajo Nation at Thursday’s board meeting, CAP’s Board President Lisa Atkins stated that the utility was “not at war with coal.” Rather, it was seeking a “long-term, cost-effective, reliable and diverse power portfolio.” Coal, it would appear, no longer has a prime spot in that energy mix.

Jessica Kutz is an editorial intern at NewTowncarShare News.

NewTowncarShare News Classifieds
  • The National Parks Conservation Association (NPCA) seeks a director to lead a nationwide program focused on the protection of U.S. national parks from energy development...
  • Popular vacation house, furnished, 2 bed/1 bath, yard, dog-friendly. Lee at [email protected] or 520-791-9246.
  • Crested Butte Land Trust seeks a development director to lead its fundraising efforts. Remote and unspoiled, Crested Butte is located in one of the Rockies...
  • 5-Acre Home Site, Great Views with Spectacular Sunsets From a South Facing Home Site. Excellent for Passive Solar Design. Covenants, No HOA. Keller Williams Co....
  • 3 bed/2 bath, detached strawbale building. 11.7 acres, barn, corrals, fenced. Wells, solar panels, greenhouses. Paved access. 575-535-2568.
  • WildEarth Guardians seeks two public interest-focused staff attorneys with a minimum of 5 years experience to join our legal team. Experience with at least some...
  • The New Mexico Wildlife Federation is seeking an Executive Director, a visionary leader who is passionate about public lands, dedicated to executing an innovative strategic...
  • HIGH COUNTRY NEWS Customer Service Specialist I General Statement of Duties: Works closely with the customer service manager performing high-volume routine computer database work. Also...
  • The Aravaipa Land Steward coordinates preserve stewardship work and general operations including maintenance and general preserve management. Implements preserve management plans, which may include species...
  • seeks a talented and dynamic development professional, with a passion for protecting our natural environment, to lead our development and fundraising team.
  • The Native American Fish and Wildlife Society seeks an Executive Director in Denver, CO to serve as the Chief Administrator of the national Native American...
  • NewTowncarShare News seeks a development assistant to assist with fundraising campaigns. HCN is an award-winning, national news magazine. Strong candidates will have experience administering...
  • Energiekontor US seeks experienced local candidate, must reside in western South Dakota. Send resume and cover letter to: [email protected]
  • Seeking passionate full-time Executive to lead the oldest non-profit organization in Idaho. Must have knowledge of environmental issues, excellent organizational, verbal presentation and written skills,...
  • Carbondale based public lands advocate, Wilderness Workshop, seeks a Conservation Director to help direct and shape the future of public land conservation on the West...
  • The Bighorn River Basin Project Manager identifies and implements projects to improve streamflows, restore stream and riparian habitat, improve fish passage and rehabilitate or replace...
  • Dream of owning your own business, being your own boss, working from home ... this is the one. 928-380-6570, www.testshop.com. More info at https://bit.ly/2Kgi340.
  • Create a base in the center of Southern Utah's Grand Circle of National Parks. Multiple residential property with three established rental units and zoning latitude...
  • 4 standard or custom lengths. Rugged protection for backpacking. Affordable pricing.
  • 5 acres, well. Abuts Carson NF; hike fish ski; deer turkey elk.