By Ryan Randazzo | The Republic
The Navajo Nation Council on Monday approved a new $350 million lease for the coal plant near Page that could allow it to remain open another two years.
Salt River Project, Arizona Public Service Co., Tucson Electric Power and NV Energy agreed to run the Navajo Generating Station through 2019 if the tribe approved a new lease by July 1. Otherwise, the utilities have said they will close the facility because it is more economical to buy power from natural-gas plants.
The tribe’s council passed amendments to the lease that SRP and the other owners now must negotiate.
SRP Deputy General Manager Mike Hummel said the utility is pleased with the vote.
“This agreement provides meaningful benefits for all involved and creates a path forward during this challenging transition,” he said in a prepared statement.
“Importantly to us, the replacement lease paves the way for SRP employees at the plant to remain on the job for an additional two-plus years and allows us to fulfill our commitment to redeploying all regular NGS employees to other SRP facilities after 2019 should they so choose.”
The coal plant and mine that supplies it employ about 750 people, nearly all members of the Navajo and Hopi tribes. The tribes both also benefit from coal sales from the mine and other economic activity associated with the operations.
