Prospective operator of Navajo Generating Station near Page plans major cutbacks

A Chicago-based company in negotiations to take over a coal-fired power plant in northern Arizona said it would run the generating station at less than half its existing capacity to ensure it’s economical, a company official said Tuesday. Fewer employees and a new lease and coal supply agreement also are in the mix as Middle River Power pursues a takeover of the Navajo Generating Station. The current owners of the 2,250-megwatt plant near the Arizona-Utah border are planning to shut it down next year unless someone else buys it, saying power produced by natural gas is cheaper. Joseph Greco, a senior vice president for Middle River Power, told Arizona utility regulators the company would operate the plant at 44 percent of its capacity, and differently during peak and off-peak demand, making it more economical while ensuring a steady power base. The company offered few other details, citing nondisclosure agreements. The power plant sits on the Navajo Nation and is fed by coal jointly owned by the Navajo and Hopi tribes. Navajo President Russell Begaye has said a lease agreement with Middle River Power and its parent company, New York-based Avenue Capital, could come before tribal lawmakers at their October session. Still, a sale is considered a long shot...MORE