The Navajo Generating Station can continue to be competitive under a reduced-price fuel proposal through 2040, said Peabody Energy, the coal giant which owns a coal mine currently fueling the Arizona plant.

The utility owners of the Navajo plant on February 16 voted to shut down the 2,250-MW coal-fired power plant in December 2019. The decision to close the plant on tribal land near Page along the border with Utah was based on the “rapidly changing economics of the energy industry,” which has seen natural gas prices sink to record lows, the plant’s owners said.

The plant is operated by Salt River Project (SRP). SRP is a utility owner along with Arizona Public Service Co., Tucson Electric Power Co., and NV Energy. The U.S. Bureau of Reclamation is a participant in the project.

But according to the Arizona Republic, Peabody Energy told regulators last week that the power plant could profit under new ownership. The newspaper reported that the coal company’s officials are “positioning the Navajo Generating Station for new buyers to come in and take over the troubled coal plant, which would allow the company to continue selling coal to the facility” from its Kayenta Mine in northern Arizona.…

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