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, according to AZ Central.

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, a leaked White House draft memo 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, according to a statement 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 High Country News.

High Country News Classifieds
  • COMMUNITY ENGAGEMENT DIRECTOR
    Colorado Wild Public Lands (COWPL), based in Basalt, is an exciting nonprofit working to keep public lands open and accessible. Our growing organization is seeking...
  • BUSINESS SUPPORT ASSISTANT (PART-TIME)
    High Country News, an award-winning media organization covering the communities and environment of the Western United States, seeks a part-time business support assistant to provide...
  • SOCIAL MEDIA AND DIGITAL ADVERTISING SPECIALIST
    The Southern Utah Wilderness Alliance (SUWA), Utah's largest conservation organization, has an immediate opening for a full-time Social Media and Digital Advertising Specialist. This position...
  • SPRING-FED PARCELS ON THE UPPER SAC RIVER
    Adjacent parcels above the Upper Sacramento river, near Dunsmuir. The smaller is just under 3 acres, with the larger at just under 15 acres. Multiple...
  • DEVELOPMENT COORDINATOR
    Greater Yellowstone Coalition seeks a development professional to coordinate the organization's individual giving program. The position description is available at http://greateryellowstone.org/careers Please email a letter...
  • IDAHO STATE DIRECTOR
    The Wilderness Society is seeking a full time Idaho State Director who will preferably be based in Boise, Idaho. At least 8-10 years of experience...
  • COMMUNICATIONS MANAGER AND BEARS EARS EDUCATION CENTER MANAGER
    Conservation nonprofit Friends of Cedar Mesa in Bluff, Utah is hiring for two positions. We seek a Communications Manager to execute inspiring and impactful communications...
  • EXECUTIVE DIRECTOR
    Wilderness Volunteers Wilderness Volunteers (WV), a 24-year leader in preserving our nation's wildlands, is seeking a motivated person with deep outdoor interests to guide our...
  • HECHO POLICY AND ADVOCACY MANAGER
    Hispanics Enjoying Camping, Hunting, and the Outdoors (HECHO) was created in 2013 to help fulfill our duty to conserve and protect our public lands for...
  • FISHERIES BIOLOGIST
    Under the direct supervision of the Director of Shoshone-Paiute Tribe's Fish, Wildlife & Parks, in coordination with the Tribal Programs Administrator and the Tribal Chairman,...
  • REGIONAL EXECUTIVE DIRECTOR NORTHERN ROCKIES, PRAIRIES & PACIFIC REGION
    Founded in 1936, the National Wildlife Federation has grown into America's largest and most trusted grassroots conservation organization with 53 state/territorial affiliates and more than...
  • STEWARDSHIP MANAGER
    STEWARDSHIP MANAGER Job Vacancy and Description Posted June 2, 2021: Open until filled The New Mexico Land Conservancy (NMLC) is a non-profit, regional land trust...
  • KSJD - MORNING EDITION HOST/REPORTER
    KSJD is seeking a host/reporter. Please see for www.ksjd.org for more information. EEO compliant.
  • ON THE EDGE OF CEDAR MESA/BEARS EARS
    Quiet, comfy house for rent in Bluff, Utah. Walk to San Juan River. Bike or hike to many nearby ruins and rock art sites. Beautiful...
  • CARPENTER AND LABORER WANTED.
    Come to Ketchikan and check out the Rain forest on the coast, Hike the shorelines, hug the big trees, watch deer in the muskeg meadows,...
  • PROJECT MANAGER
    Title: Project Manager Reports To: Program Director Salary Range: Negotiable; starting at $60,000 Location: Bend, OR The Deschutes River Conservancy seeks a Project Manager to...
  • PROGRAM DIRECTOR
    The Deschutes River Conservancy seeks a Program Director to join our dynamic team in restoring streamflow and improving water quality in the Deschutes Basin. WHO...
  • EXECUTIVE DIRECTOR - TWISPWORKS
    Established healthy nonprofit in the Methow Valley of Washington state, TwispWorks is hiring the next Executive Director. Terrific opportunity to strive for our mission to...
  • BOARD DIRECTOR
    Help us achieve our mission of promoting excellence in the professional practice of wilderness stewardship, science and education to ensure the life-sustaining benefits of wilderness....
  • TEMPORARY FULL-TIME RANCH OPERATIONS ASSISTANT
    Twin Willows Ranch in Ocate, NM is seeking to immediately fill a Temporary Full-Time employment position as Ranch Operations Assistant for Facilities, Equipment, Land, and...