Oct. 22--Participants in a regulatory review of the Mohave Generating Station
at Laughlin said Thursday they are encouraged by a proposed order that could
mean the power plant will continue operating. The coal-fired power plant, which is partly owned by Southern California
Edison and Nevada Power Co., is expected to be shut down at least temporarily at
the end of next year. It appears unlikely that $1.1 billion in pollution-control
equipment can be installed by then, so Edison probably will close the plant to
comply with the court decision. Yet, Nevada Power and the Hopi Indian Tribe say a recommended order filed
Wednesday provides hope the plant may resume operations. Administrative Law Judge Carol Brown filed the proposed order with the
California Public Utilities Commission calling for continued efforts to keep
Mohave viable. However, she did not reach a conclusion about the plant's future. The commission is not expected to act on her recommendation for at least 30
days. "This is a tentative, but heartfelt victory for all Hopi people,"
Tribal Chairman Wayne Taylor Jr. said in statement. "The CPUC has
acknowledged the importance of Mohave to California ratepayers. And in doing so,
it has pointed out the devastating impact a plant shutdown would have on the
Hopi economy." Southern California Edison also reacted positively to the proposed order. "We are pleased that the proposed decision acknowledges that determining
whether continued operation of Mohave is in the best interest of our customers
is impossible until coal and water issues are resolved," the California
utility said. "The commission's (proposed) decision at this time is made without
prejudice to the ultimate resolution of whether Mohave should continue as a
coal-burning plant," her proposed order states. "However, by authorizing Edison to make certain investments at this time
we keep that question open until such time as a definitive public interest
judgment can be made," Brown continued. She referred to the commission's responsibility to determine whether it is in
the public's interest to keep the plant operating. The plant needs to secure coal and water if it is to reopen and resume
operation after a temporary closure. Brown proposed the parties continue
negotiations on coal and water. Nevada Power said the recommendation would be helpful. "(Brown) ruled or clarified to Southern California Edison that we should
move forward, attempting to resolve fuel and water issues at the Mohave
Generating Station," said Mark Sandoval, generation executive for Nevada
Power parent, Sierra Pacific Resources. Later, the California commission will determine how much of Mohave-related
expenses Edison can recover, Sandoval said. "Everything is still very tentative. There's a lot of things that are
driving the economics of that facility, not only for the (plant) co-owners but
for the Hopi and Navajo Nation," he added. Nevada Power owns 14 percent of the plant and gets 220 megawatts of power
from it. Coal for the plant comes by slurry line from a mine on Hopi and Navajo
land in Northeast Arizona. The Hopi tribal government estimates it will lose
one-third of its operating budget if the Mohave plant and Black Mesa Mine are
shut down. James Ham, an attorney for the Hopi Tribe, said the administrative law judge
determined a certificate of public convenience and necessity "was not
necessary because the plant already has one, and that Edison could proceed with
the critical path expenditures, which it found to be reasonable."
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