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1999 Friends of Lake Powell, Inc.
www.lakepowell.org
P.O. Box 7007
Page, AZ 86040 USA
(928) 645-2741  Fax: 928-353-2227

NAVAJO POWER PROJECT

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

 

For more information contact. friends@lakepowell.org