Navajo Council Energy Advisor Outlines Economic Impacts of Navajo Generating Station

Navajo Times | Krista Allen

Published January 28, 2019

TSE BONITO, N.M. — A Navajo Nation Council energy advisor presented information about the economic impacts of Navajo Generating Station (NGS) and Kayenta Mine during a Naa’bik’iayat’i Committee work session meeting on Wednesday, January 23.

“This is study that looked at the region,” Anthony Peterman, Navajo Nation Council energy advisor said during his presentation.

The study Peterman and the delegates referred to was the 2012 study “Navajo Generating Station and Kayenta Mine, An Economic Impact Analysis for the Navajo Nation,” released by the W.P. Carey School of Business from Arizona State University.

The study stated the two operations have a combined $518 million impact to the northeastern Arizona economy through 2020.

For the Navajo Nation, the two operations supply about $40 million a year to the Navajo General Fund and employs more than 700 Navajo people.

Peterman also outlined a general timeline for issues related to negotiations and potential closure of NGS and added that hard deadlines are moving target contingent upon Navajo Transitional Energy Company’s (NTEC) negotiations to acquire NGS and Kayenta Mine. Once NTEC firms up the terms of the purchase agreement with both Peabody and SRP then the deadlines become clear.

Late in 2018, NTEC announced they are proceeding with negotiations to make the purchase and keep the two operations running beyond their scheduled decommissioning later this year.

“We believe there is a clear and beneficial path forward to acquire and operate both NGS and Kayenta Mine as a vertically-integrated entity,” NTEC CEO Clark Moseley stated in a company release. NTEC’s plan would have one tribal entity own and operate the power plant and the coal mine.

“This is a business decision about a business transaction for NTEC. We are going to thoroughly evaluate plans and make sound business decisions that are beneficial for NTEC and the Navajo Nation,” said NTEC Board Chair Tim McLaughlin in a release.