|
Representative Hansen of Utah called a Congressional hearing on September 23, 1997 to
discuss the Sierra Club and Glen Canyon Institute’s proposals to drain Lake Powell.
In preparation for the
hearing, Representative John Shadegg of Arizona asked the Salt
River Project for data on the potential economic effects of such a plan on the Navajo
Power Project in Page, Arizona. The Navajo Power Project Fact Sheet
was the result.
Navajo Power Project Fact Sheet
Updated 12/15/97
Number of potentially displaced head of household jobs:
|
Indian |
Non-Indian |
Total |
| Navajo Generating Station full-time |
316 |
264 |
580 |
| Kayenta Mine full-time |
455 |
35 |
490 |
| Navajo Generating Station seasonal |
359 |
27 |
386 |
Scrubber Construction Project
(concludes mid-2000) |
485 |
15 |
500 |
| Total |
1,615 |
341 |
1,956 |
Annual costs of closing the Navajo Project:
| Navajo Generating Station payroll- |
39,700,000 |
| Kayenta Mine payroll- |
18,000,000 |
| Scrubber project payroll- |
13,000,000 |
| Mine royalties and fees paid to Navajo Nation- |
21,000,000 |
Coconino County taxes paid by NGS -
(approximately $8.1 million to schools) |
12,000,000 |
| Navajo Tribal Utility Authority Revenue - |
1,400,000 |
NGS Materials and supplies purchased in Coconino County -
(An additional $13.9 million is spent in other Arizona counties) |
1,420,000 |
| Increase in fuel and operating costs to utility customers - |
19,000,000 |
| Fuel and operating costs for replacement combined cycle natural gas plants projected
to be 7% higher than Navajo Project costs. |
|
| Total Annual costs: |
$ 125,520,000 |
One time costs of closing the Navajo Project:
| Replacement of NGS’s generating capacity with new combined cycle
natural gas plants (from a 1996 survey of gas turbine construction costs) – |
$1,500,000,000 |
| Estimated cost to decommission plant and mine - |
137,000,000 |
| Kayenta Mine & Joint Facilities net book value - |
85,800,000 |
Navajo Generating Station net book value -
Includes $470 million scrubber construction in progress for sulfur dioxide pollution
controls ordered by the EPA, now 2/3 complete. Remaining term of the Navajo Project Water
Service Agreement |
870,000,000 |
| Estimated lost value of homes for Page, LeChee, Kaibeto, Shonto, Kayenta,
and Black Mesa, Arizona full-time employees: |
74,900,000 |
| Total one-time costs: |
$2,667,700,000 |
| Individuals supplied with electricity by the Navajo Project: |
3,000,000 |
Assumes NGS’s production of 1,377,000,000 kiloWatt hours per month at 85% capacity
is distributed to residents of Phoenix, Tucson, Los Angeles, and Las Vegas, where the
average two and one half person household uses approximately 1,150kWh per month. Actual
power deliveries include both business and residential customers |
