September 21, 2018 Read More →

Navajo Generating Station purchase falls through

Bloomberg:

Private equity company Middle River Power LLC is ending its bid to buy Navajo Generating Station, the biggest coal-fired power station west of the Mississippi River.

The collapse of the deal deeply threatens the survival of the coal-fired power plant in Page, Ariz., which is slated to close at the end of 2019 unless a new buyer steps forward immediately.

Middle River was “terminating its efforts with regard to the overall work” on buying the plant, spokesman Todd Fogarty told Bloomberg Environment Sept. 20. “Unfortunately, recent developments in California and Arizona will create additional challenges for baseload power plants, and it has not been possible to secure from counterparties commitments to purchase a sufficient amount of power generated from Navajo Generating Station to enable a workable operating paradigm,” the company said in an email to Bloomberg Environment.

As such, Middle River Power and global investment firm Avenue Capital Group “have concluded that the steps required to facilitate our ownership and operation of the plant are no longer possible within the required timeframe and therefore we are terminating our efforts,” the company said.

The plant has become a freighted political symbol, representing for some the Trump administration’s efforts to prop up the coal industry, and for others a dying business that can’t compete against cheaper natural gas and renewables.

Another loser is Peabody Energy Corp., which owns the nearby Kayenta Mine. The mine supplies all the plant’s coal and has no other customers, because no rail spur connects the mine to the outside world.

More: Private equity company ends bid to buy Navajo Generating Station

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