Three environmental groups, who sued the Mohave
plant owners, won federal court approval in 1999 for an order
that allowed Mohave to continue operation for a few years. But
the order also requires the owners to close the power plant at
least temporarily if pollution-reduction equipment hasn't been
installed by the end of this year. The plaintiffs in the
lawsuit -- the Sierra Club, Grand Canyon Trust and National
Parks Conservation Association -- earlier this year said they
will not agree to an extension of that deadline. For years, area
residents have complained about air pollution from the plant,
including sulfur dioxide, nitrogen oxide and mercury.
Representatives for Mohave's owners haven't approached the
environmentalists about an extension and spokesmen for the
plaintiffs said they have not agreed to one.
Utilities and regulators are expressing a desire to continue
operating Mohave because it burns relatively inexpensive coal,
unlike the plants that would be used to replace Mohave's 1,580
megawatts of generating capacity, said attorney James Ham, who
represents the Hopi Tribe.
In written testimony filed Sept. 26 with the California
Public Utilities Commission, Southern California Edison, the
operator and majority owner of the Mohave plant, said: "The
recent sharp run-up in natural-gas prices ... has underscored
the high importance and value of Mohave to diversify.
(California state officials) have expressed concern regarding
the near-term reliability of supply in the Southern California
region, which Mohave supports," the utility continued.
"In this context, (Edison) believes there is both increased
importance to and improved prospects for reaching resolution
that would allow for continued Mohave operation pending
installation of the required pollution controls (probably with
some short-term interruption of operations)," the California
utility said.
Customers of utilities, including Nevada Power, may benefit
from continued operation of Mohave because the coal it burns is
relatively cheap, compared with increasingly pricey natural gas
burned at most other generation plants. High natural-gas prices
are expected to continue, in part because hurricanes damaged
Gulf Coast gas-production plants.
It cost about 1.5 cents to generate a kilowatt hour of
electricity at Mohave in August, compared with 8 cents for a
kilowatt hour from an efficient gas-fired power plant, documents
filed with federal regulators show. At the spot price for
natural gas in August, Nevada Power would pay about $92 million
more for power from a gas-fired plant to get the same amount of
electricity that it received last year from the coal-fired
Mohave power plant.
Roger Clark of the Grand Canyon Trust and Rob Smith,
Southwest regional director for the Sierra Club, suggested
Edison expressed optimism about Mohave in an effort to show
increased costs that would justify a higher electricity rate
increase. The environmental groups are concerned about the
18,000 tons of nitrogen oxide, 38,000 tons of sulfur dioxide and
9.6 million tons of carbon dioxide, as well as 399 pounds of
mercury that the plant emitted in 2003, according to the
Environmental Protection Agency.
Hopi Tribe attorney Ham, however, said the testimony was
reason for optimism about continued operation of Mohave.
The possible Mohave shutdown is "now on the regulators' radar
screen. It's got their attention," because of skyrocketing
prices for gas and power generated with gas, Ham said.
"The economics of that plant make installing the pollution
controls now more than ever extremely attractive," Ham said.
Roberto Denis, senior vice president of Nevada Power,
acknowledged that coal fired-plants like Mohave are more
important financially because they do not rely on expensive
natural gas for generation.
"With the ever rising gas price, that economic interest
increases. You balance economic interests with environmental
interests," Denis said.
He remains pessimistic about avoiding a temporary plant
closure but said the plant owners will preserve the power plant
in case they decide to resume power generation there.
Denis pointed to an earlier letter from environmental groups
who won the 1999 court order.
"It sounded pretty grim to me that there's any hope that they
would relent," Denis said.
He also saw no signs of progress in efforts to secure
contracts for coal and water from the Hopi Tribe and Navajo
Nation. Water is needed to transport the coal as a liquid slurry
through a pipeline.
The Hopi Tribe, however, reported progress is being made on
the coal and water issues. Edison has agreed to spend $200
million to build a new 273-mile coal slurry line from the coal
mine on Indian land to Mohave, according to the tribe.
The U.S. Geological Survey reported that the Coconino
Aquifer, an underground water source, continued enough water to
operate the slurry and provide water for economic development on
the Navajo and Hopi reservations.
"That is extremely hopeful development," Hopi Chairman Wayne
Taylor Jr. said.
The plant closing would affect not only 340 employees at the
power plant in Laughlin but also the Navajo Nation and Hopi
Tribe, which benefit from jobs at a coal mine and from royalties
on coal from the mine. |