Coal mine operator seeks new buyer for Navajo plant

PHOENIX — A coal mine operator said the price of its coal could be lowered through 2025 if a new buyer takes over a Northern Arizona power plant.

Peabody Energy officials are hopeful that new ownership would make the Navajo Generation Station profitable again, The Arizona Republic reported. Peabody’s Kayenta Mine provides fuel for the power plant near Page

that provides power to Arizona and Nevada.

“Let me be clear, the Navajo Generating Station is an economically viable and essential resource to the state of Arizona,” said Brian Galli, Peabody group executive and chief marketing officer.

The power plant is owned by the Salt River Project, Arizona Public Service Co., Tucson Electric Power and Nevada Energy.

The four entities voted to shut it down by this summer unless they can get a new lease agreement with the Navajo Nation,

which owns the land. The plant owners said it would be more economical to use natural gas as an alternative power source, but Galli questioned whether it would be a cheaper move. “Prudent and responsible energy planning is done on a long-term basis and not on short-term price fluctuations,” Galli said. “The leaders in Arizona need to pay attention to what is being said about the long-term viability of the Navajo Generating Station. We believe there is another side to the story.”