For nearly a half-century, the Navajo Nation has helped transform the city of Tucson into a prosperous and growing city by hosting one of the coal-fired power plants that powered its lights and economic activity.
The Navajo Nation provided the labor, the land and the water to keep coal plants owned by Tucson Electric Power Company and other utilities operating, and had hoped that when the time came to shutter these coal plants TEP would assist the Navajo in making a transition to a new economy.
The Navajo Generating Station, co-owned by TEP, burned its last coal on Nov. 18, 2019, and still a year after its closure, TEP has failed to step up and provide support to help rebuild the Navajo and Hopi communities. Itโs a sad irony that the owners of NGS, including TEP, even failed to power 15,000 homes on the Navajo Nation (that are still without power today) while TEPโs service area burns bright and its shareholders continue to profit.
Fortunately, TEP has an opportunity next week to right the wrongs of the past. The utility is seeking to raise rates as it transitions away from coal-fired power plants. This request is up for a vote before the Arizona Corporation Commission on Dec. 8-9.
However, glaringly absent from TEPโs proposal is any formal commitment to provide the Navajo Nation with funding support after the closure of the plant. TEP also has failed to develop transition plans for its other coal units.
TEPโs failure to make firm promises that would ensure consistent, stable funding for a transition to clean energy โ in partnership with the Navajo Nation โ is a major missed opportunity. Part of a just and equitable transition happens when impacted communities like ours can own and operate clean energy projects to benefit the community and the state.
We are grateful that Arizona Public Service recognized this opportunity and stepped up to take corporate responsibility. The stateโs largest utility last month committed $144 million to the tribe and pledged to buy power from Navajo clean energy projects, a proposal that would also need at least partial approval by the ACC. This just and equitable transition package was the largest to date in the U.S. and should send a clear signal to other coal owners, such as TEP.
Also, in September, ACC Chairman Bob Burns along with Commissioners Lea Marquez Peterson and Sandra Kennedy voted in favor of an APS Tribal Energy Efficiency Program, supported annually with $457,000 in funding, which will help implement energy efficiency projects for Navajo and Hopi communities impacted by the closure of coal-fired power plants.
Utility funding such as this can help build the infrastructure needed to create a sustainable future for the Navajo Nation. We see great potential to become a leader in the development of renewable energy projects. Our hope is to partner with the Arizona Corporation Commission and TEP to continue this path to recovery in the wake of coal plant closures.
The closure of NGS has had negative consequences for the Navajo Nationโs economy. My administration is already responding to a $30 million to $50 million shortfall this fiscal year due to a reduction in power plant and mine-related revenue. And, the Navajo and Hopi people are feeling the consequences of nearly 1,000 displaced workers from the closure of the plant and Kayenta coal mine.
The Arizona Corporation Commission should consider our recommendations to ensure the Navajo people can move forward on a secure economic foundation.
Now is the time for TEP to show leadership and address these energy injustices and create long-term health and economic prosperity for the Navajo Nation.
