Deal to restart
Mohave power plant falls apart
Mar 31, 2006 - Las Vegas Review-Journal
Author(s): John G. Edwards
By JOHN G. EDWARDS
REVIEW-JOURNAL
A deal reached earlier this month to restart the Mohave Generating
Station in Laughlin using coal from a mine on lands of the Navajo Nation
and Hopi Tribes has collapsed.
A confidential document dated March 7 was leaked to the news media,
sources said, and outlined a tentative agreement on nonfinancial terms.
However, "the March 7 document is no longer current to these
discussions," said Gil Alexander, a spokesman of Southern California
Edison, majority owner of the plant.
Nevada Power is a minority owner in the Mohave plant.
Meanwhile, Edison advised the California Public Utilities Commission
that the 1,580-megawatt plant probably could not reopen for another four
years. To comply with a court order, the Mohave plant must have about
$500 million in pollution-reduction equipment before it resumes
operation.
The owners shut the plant Dec. 31 because that was the deadline for
having the pollution- reduction equipment installed or closing the
plant, even if only temporarily.
Roberto Denis, senior vice president of Nevada Power parent Sierra
Pacific Resources, said: "The restoration of the plant at this juncture
faces some serious hurdles that must be overcome."
The plant cannot be equipped with pollution-control equipment until
Mohave owners have a long-term contract for coal and water to use in a
new coal slurry line, he said. The line would carry the coal from the
Indian reservations in northeast Arizona to the Laughlin plant.
© Copyright 2006 NetContent, Inc. Duplication and
distribution restricted.Visit http://www.powermarketers.com/index.shtml
for excellent coverage on your energy news front.
|