APS closes 3 units at Four Corners power plant

Three coal-fired generators that opened in the 1960s near Farmington, N.M., closed Monday as part of a $182 million plan for Arizona Public Service Co. to meet environmental regulations, the utility reported. APS Vice President of Fossil Generation David Hansen traveled to the Four Corners Power Plant on Monday for a ceremony with the 434 plant workers to mark the closure. APS also purchased a larger stake in two units that will remain open at the plant, a move that could cost APS customers almost $3 a month. The transaction is part of APS’ proposal to meet Environmental Protection Agency requirements for pollution from the plant’s five generators. Rather than pay to upgrade the three oldest units, APS closed them and paid $182 million for a larger stake in Units 4 and 5, which don’t need as much investment to meet EPA standards. APS has not been replacing workers at the plant as they quit or retired since 2010 when the plan was first proposed, avoiding layoffs from the closure, Hansen said. No layoffs are planned because the 120 remaining workers from the first three units will be needed during the next three years to decommission the plant, he said. After that, they should all be absorbed into the larger workforce of the bigger two units that remain open. “It was bittersweet for sure,” Hansen said of watching the three units power down for the last time. “It was a little emotional for some who dedicated their entire careers to the safe, reliable operations of Units 1, 2 and 3. They realize making that sacrifice allows the benefits of operating Units 4 and 5 to continue into the future.” Keeping part of the plant open was important in reaching a resolution to the environmental concerns. The plant and a nearby coal mine generate about $225 million a year in economic benefits to the Navajo Nation and New Mexico economies, according to APS. Unemployment on the reservation is about 50 percent, so the more than 800 jobs at the plant and mine are critical. More than 80 percent of the positions are held by Native Americans. The operations are responsible for about 30 percent of the Navajo Nation’s general fund...more