Closing coal plant a numbers game
Mar 8 - McClatchy-Tribune Regional News - Cyndy Cole The Arizona Daily
Sun, Flagstaff
Members of several conservation groups opposed to coal mining have
contributed to a report saying the owners of Navajo Generating Station
in Page would be best off financially if they closed the coal plant.
Figuring in financial costs for releasing greenhouse gases under some
sort of federal limits (which don't exist today), and uncertain costs
for coal supplies into the future, the authors conclude that Salt River
Project could make perhaps $158 million by shutting Navajo and investing
it in renewable energy instead.
One contributor called it a big-picture report that he hopes will prompt
utilities to think about what would happen when or if the country gets
serious about cutting greenhouse gases.
"It provides more questions than answers, but I think (the
report) has value because utilities and Arizona Corporation Commission
aren't asking these questions," said Roger Clark, of the Grand Canyon
Trust, who was consulted in the writing of the report.
A THOUSAND JOBS AT STAKE
But a spokesman for SRP pointed out the local costs of a closure, which
were not contained in the report.
Navajo Generating Station employs 545 people full time, and the mine
that feeds it provides another 400 jobs with Peabody Western Coal, plus
royalties to the Navajo Nation, said Scott Harelson, an SRP spokesman.
SRP currently gets about 6.5 percent of its retail energy from renewable
sources.
The authors, with a group called Natural Capitalism Solutions, propose
more efficient energy use, retraining people who now work in the coal
energy industry, and covering 134 million square feet of the 336-mile
Central Arizona Project canals with solar panels. The cost of that
project would be perhaps $8 billion and would take maybe 20 years to
recoup.
The report did not say how that $8 billion price tag would be financed.
But Clark said utility customers should push for much more renewable
energy now -- while up-front costs for renewables can be more expensive
than traditional power, fuel costs to harness the wind and sun stay
stable.
"The fuel price on renewables is fixed. It's zero. And so if you're
looking at long-term power projects, that's something you should be
looking at," he said.
At present, if the United States government were to adopt carbon-capping
legislation and set a price on it, SRP would pass any fees that would
result at the coal plant along to its customers.
CLEAN AIR AN ISSUE
In 1991, the plant's owners put about $450 million into reducing sulfur
produced from the power plant's emissions.
Currently, the plant is undergoing another retrofit to cut one more
pollutant, at a cost of $43 million.
It's up to the Environmental Protection Agency to decide, possibly this
fall, whether the plant needs to go further to clean the air, as
managers at the National Park Service have advocated, to improve views
more at the Grand Canyon.
In 2005, the Navajo Generating Station produced 690,527 tons of carbon
dioxide and 91 pounds of mercury -- the latter an element found in Lake
Mary fish, leading to advisory limits on how many fish can be eaten.
The report cites data from other regions showing a link between coal
mining or coal burning and increased risk of health problems and death.
Clark says it doesn't matter whether his group supports or opposes coal
burning in Page, but that coal supplies will eventually run out under
any scenario, and the plant will someday close.
Harelson of SRP would not put a date on any such event.
The coal plant is scheduled to operate into 2024, according to filings
with federal agencies.
VALUE IN SHUTTING DOWN
In all, the report puts the plant's pollution credits, water value, a
premium for switching to green electricity and avoided coal-purchasing
costs at about $1.3 billion.
The report proposed SRP look at the value of water to cool the plant,
for example, which was put at $3 million to $36 million per year, and at
increased coal costs possible under climate change legislation.
The 2.2 megawatt plant burns a maximum of 25,000 tons of coal in a day,
according to the report, brought in from the Black Mesa area by train.
Power from the plant is used, in part, in Los Angeles, Phoenix, Tucson
and Las Vegas, including to move water through the Central Arizona
Project to central and southern Arizona.
A coal plant provides power to meet ongoing, steady power needs.
One difficulty with wind and solar renewables is that they don't always
produce maximum power when utilities need it (they're not as steady),
and energy storage options are limited.
Cyndy Cole can be reached at 913-8607 or at
ccole@azdailysun.com
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McClatchy-Tribune Information Services
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