The final purchase price for the Southern California Edison share is approximately $182 million, which is substantially less than other generation alternatives.
important details regarding the purchase
This solution was the best alternative for APS and its customers and provides a cleaner environment while preserving a needed reliable and affordable supply of energy for the Southwest.
As APS committed when it announced its proposal in 2013, there will be no layoffs at the power plant. We will continue to support the Navajo Nation and Farmington area with high-quality jobs that are important economic drivers for the region.
what does this mean for…
Installing emission control equipment at Units 1, 2 and 3, or shutting them down and seeking replacement power elsewhere, would have imposed substantial additional costs on our customers. The proposal to acquire Southern California Edison’s share of Units 4 and 5 saves customers nearly $500 million over the next best alternative.
There will be no layoffs at the plant, which employs 434 workers (82% of whom are Navajo).
Capacity at the coal-fired station, which was previously one of the nation’s largest, will be reduced by 560 megawatts from 2,100 MW to 1,540 MW. Emissions of NOX will decline by 36%, mercury by 61%, particulates by 43%, CO2 by 30% and SO2 by 24%.
Continued operation of Units 4 and 5 is expected to provide more than $6.3 billion in economic value to the region over the next 30 years, at least 70% of which will benefit the Navajo Nation and its citizens. The plant and the supporting mining operations have a $225 million annual impact on the Farmington and Navajo economies and pay more than $100 million per year in taxes, fees and royalties to the Navajo Nation and state, local and federal entities.