Navajo Generating Station

IEEFA Research

IEEFA U.S.: Virginia coal plant’s future isn’t bright: preparation for  transition should commence now

IEEFA U.S.: Virginia coal plant’s future isn’t bright: preparation for transition should commence now

Virginia City Hybrid Energy Center (VCHEC), one of the newest in U.S., risks closure due to market forces

December 16, 2020 (IEEFA)—Retiring the Virginia City Hybrid Energy Center (VCHEC) will bring unnecessarily abrupt economic hardship to Wise County if state and local officials do not begin to plan now for a transition, concludes a report published today by the Institute for Energy Economic and Financial Analysis. The 8-year-old coal-fired power plant, owned by […]

IEEFA update: Peabody Energy flirts with bankruptcy—again

IEEFA update: Peabody Energy flirts with bankruptcy—again

Bear market for coal, new financial pressures push world’s largest coal company towards default

Just three-and-a-half years after emerging from its previous bankruptcy, Peabody Energy—the world’s largest private coal miner—admitted to investors on Monday that it could face yet another trip to bankruptcy court in the coming months. Coal bankruptcies in the United States have become increasingly common. Cheap gas and renewable power have steadily replaced coal in the […]

IEEFA report: The case for utility-company reinvestment in Arizona’s coalfield communities

IEEFA report: The case for utility-company reinvestment in Arizona’s coalfield communities

Statewide risk as fast-moving transition sweeps across power-generation industry

March 2, 2020 (IEEFA) — Arizona utility companies that are closing coal-fired power plants must reinvest aggressively in regional coalfield communities in order to avoid local economic disarray that could affect the state’s overall financial health, concludes a report published today by the Institute for Energy Economics and Financial Analysis. The report—The Case (and the […]

IEEFA U.S.: Bill to incentivize federal reinvestment in tribal regions of Arizona suggests a model for coalfield communities nationally

IEEFA U.S.: Bill to incentivize federal reinvestment in tribal regions of Arizona suggests a model for coalfield communities nationally

Bipartisan support is possible; Congressional appropriations will be key

Sept. 29, 2019 (IEEFA) — A bill to encourage federal reinvestment in communities hurt by the closure of the Navajo Generating Station (NGS)-Kayenta Mine complex in Arizona suggests a model that could work for coalfield communities nationally, concludes a report published today by the Institute for Energy Economics and Financial Analysis. The report—Bill to Spark […]

and September 19, 2019 Read More →
IEEFA: Proposed Navajo acquisition of bankrupt U.S. coal company is an ill-timed gamble

IEEFA: Proposed Navajo acquisition of bankrupt U.S. coal company is an ill-timed gamble

Plan to buy Cloud Peak’s mines in Montana and Wyoming comes as Powder River Basin producers face more hard times - NTEC could modernize with leadership change

Aug. 22, 2019 (IEEFA) — A plan by the Navajo Transitional Energy Company (NTEC) to acquire Cloud Peak Energy’s coal mines in Montana and Wyoming is a high-risk gamble and poorly timed, concludes a report published today by the Institute for Energy Economics and Financial Analysis. The report, Proposed Navajo Acquisition of Bankrupt U.S. Coal Company […]

IEEFA U.S.: Carbon-capture pitch raises ‘false hope, fiscal risk’ for New Mexico town

IEEFA U.S.: Carbon-capture pitch raises ‘false hope, fiscal risk’ for New Mexico town

Company tied to New York vulture capital ‘not a credible business partner;’ Enchant Energy Corp. seeks $5.8 million federal grant for itself and associates

July 12, 2019 (IEEFA) — A novice company’s push to create a partnership with the City of Farmington, N.M., that would attempt to turn a closing coal-fired power plant into a carbon capture experiment would put the town at financial risk, concludes a report published today by the Institute for Energy Economics and Financial Analysis. […]

IEEFA U.S.: Imminent Hopi-Navajo budget crisis as coal industry collapses

IEEFA U.S.: Imminent Hopi-Navajo budget crisis as coal industry collapses

Federal action required, potential for bipartisan national coalfield reinvestment legislation: past models include Hurricanes Katrina and Sandy response, bailout of auto industry, mitigation for military base closures

May 30, 2019 (IEEFA) – Closure this year of the Navajo Generating Station (NGS) and Kayenta Mine will gut tribal government budgets in northern Arizona, according to a report published today by the Institute for Energy Economics and Financial Analysis. In response to the planned closures, Navajo Nation will reduce public-service expenditures by 23 percent […]

IEEFA U.S.: Solar tax credit extension through 2024 critical for coalfield communities

IEEFA U.S.: Solar tax credit extension through 2024 critical for coalfield communities

Support needed during energy transition — Navajo Generating Station/Kayenta Mine cited as ‘prime examples’

(IEEFA U.S.) — The federal solar tax credit should be extended by at least four years in coalfield areas, like the ones around the Navajo Generating Station (NGS) and Kayenta Coal Mine in Arizona, according to a briefing  note released today by the Institute for Energy Economics and Financial Analysis (IEEFA). “Scheduled curtailment of the […]

IEEFA update: Navajo coal mine and plant acquisition plan raises liability issues

IEEFA update: Navajo coal mine and plant acquisition plan raises liability issues

Failure to address employee benefits, maintenance, and cleanup costs

March 8, 2019 (IEEFA New Mexico) — The Navajo Transitional Energy Company’s (NTEC) proposed acquisition of the failing coal-fired Navajo Generating Station (NGS) and its feeder Kayenta Mine continue to raise questions about possible consequences should the sale be allowed to move forward. In addition to wide concerns about the financial viability of the project, the […]

IEEFA report: Business case for acquiring failing plant and Kayenta mine poses ‘serious financial risk’ to Navajo Nation

IEEFA report: Business case for acquiring failing plant and Kayenta mine poses ‘serious financial risk’ to Navajo Nation

‘Little clarity, no certainty’ seen in NTEC plan; reclamation liabilities loom large

February 22, 2019 (IEEFA Arizona) — The Institute for Energy Economics and Financial Analysis (IEEFA) published a report today concluding that a tribal company’s plan to acquire the failing Navajo Generating Station (NGS) and its companion mine would most likely create a money-losing enterprise.  The report—“NTEC’s Plant/Mine Acquisition Plan Puts Navajo Nation at Serious Financial Risk”—concludes […]

More News and Commentary

IEEFA U.S.: Arizona should move quickly to approve precedent-setting proposal for coal community transition

IEEFA U.S.: Arizona should move quickly to approve precedent-setting proposal for coal community transition

Utility plan would provide significant benefits for Navajo Nation, Hopi Tribe

A coal community transition funding proposal pending before the Arizona Corporation Commission would provide much-needed financial support for the Navajo Nation, Hopi Tribe and other communities affected by the shift from coal to cleaner generation sources. The commission, which regulates electric utilities, should move quickly to approve it, especially given that two years already have […]

and

IEEFA U.S.: ‘New Promise Act’ would help communities transition from coal-based economy

O’Halleran legislation aims to cushion economic losses caused by plant closures

April 2, 2021 (IEEFA) — The recently introduced New Promise Act, sponsored by Rep. Tom O’Halleran, D-Ariz., marks a potentially important step forward in recognizing the need for a federal commitment to economic revitalization in communities that have been hard-hit by the decline of the coal economy. The bill, inspired by the closure of the […]

IEEFA U.S.: Virginia coal plant’s future isn’t bright: preparation for  transition should commence now
, and

IEEFA U.S.: Virginia coal plant’s future isn’t bright: preparation for transition should commence now

Virginia City Hybrid Energy Center (VCHEC), one of the newest in U.S., risks closure due to market forces

December 16, 2020 (IEEFA)—Retiring the Virginia City Hybrid Energy Center (VCHEC) will bring unnecessarily abrupt economic hardship to Wise County if state and local officials do not begin to plan now for a transition, concludes a report published today by the Institute for Energy Economic and Financial Analysis. The 8-year-old coal-fired power plant, owned by […]

IEEFA U.S.: Decline in coal exports adds to Navajo-owned company’s problems

IEEFA U.S.: Decline in coal exports adds to Navajo-owned company’s problems

Weak demand and low prices are likely creating steep losses for NTEC

U.S. coal exports to Asia—once heralded as the saving grace for struggling coal producers in the western United States—are facing new strains from low prices and weak demand in the wake of the global COVID-19 crisis.  In its third-quarter financial statement released earlier this month, Westshore Terminals in British Columbia, the primary terminal for U.S. thermal coal […]

IEEFA update: Peabody Energy flirts with bankruptcy—again
and

IEEFA update: Peabody Energy flirts with bankruptcy—again

Bear market for coal, new financial pressures push world’s largest coal company towards default

Just three-and-a-half years after emerging from its previous bankruptcy, Peabody Energy—the world’s largest private coal miner—admitted to investors on Monday that it could face yet another trip to bankruptcy court in the coming months. Coal bankruptcies in the United States have become increasingly common. Cheap gas and renewable power have steadily replaced coal in the […]

Navajo Power links up with solar developer sPower to build PV projects on tribal land

Greentech Media: Solar heavyweight sPower and local startup Navajo Power are chasing a 200-megawatt deal with Arizona utility Salt River Project, but that’s just the beginning. For decades, the massive coal-fired Navajo Generating Station powered the great cities of the Desert Southwest: Los Angeles, Phoenix, Las Vegas. Yet the Navajo Nation that hosted it contains […]

May 7, 2020 Read More →
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Commentary: Time for utility companies to reinvest in Arizona’s coalfield communities

The shift away from coal should enhance rather than weaken basic services

Arizona is losing its coal industry faster than anyone ever expected, and the state’s power generation sector can and should be reinvesting heavily now in the towns, counties and communities hit hard by this sudden turn. A report we published in February shows what’s happening in the industry across greater Arizona, where electricity generation is […]

IEEFA report: The case for utility-company reinvestment in Arizona’s coalfield communities
, and

IEEFA report: The case for utility-company reinvestment in Arizona’s coalfield communities

Statewide risk as fast-moving transition sweeps across power-generation industry

March 2, 2020 (IEEFA) — Arizona utility companies that are closing coal-fired power plants must reinvest aggressively in regional coalfield communities in order to avoid local economic disarray that could affect the state’s overall financial health, concludes a report published today by the Institute for Energy Economics and Financial Analysis. The report—The Case (and the […]

IEEFA U.S.: Wind farms are forever

IEEFA U.S.: Wind farms are forever

As coal, gas, and nuclear plants struggle to survive, a fast-growing industry digs in

When the Lake Benton II wind farm in southwestern Minnesota was taken offline this past October after 20 years of service, the shutdown made news for its novelty. Wind farms are being built these days, not closed, and Lake Benton II was supposed to last until 2029. AT AROUND THE SAME TIME THAT THE 100-MEGAWATT […]

January 23, 2020 Read More →
IEEFA U.S.: The coal rebound that didn’t happen
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IEEFA U.S.: The coal rebound that didn’t happen

Industry continues to struggle against increasingly competitive market forces

Some energy pundits have spoken in recent times of an impending U.S. coal renaissance. The Heritage Foundation trumpeted coal’s “Colossal Comeback” in 2017, and a Wall Street Journal reporter in 2018 wrote of its global “resilience.” Industry executives three years ago credited the newly-elected Trump administration with paving the way for fresh investments in new […]