Mohave
proposal gets mixed reaction
By JOHN G.
EDWARDS
REVIEW-JOURNAL
John Kennon,
a Laughlin area resident who retired from the closed
coal-fired power plant there, wonders why Nevada officials
want to build another one near Ely.
"Seems
too bad that a multimillion-dollar power plant sits
rusting ... in Laughlin while another is being built
in Ely," Kennon, 59, said in an e-mail. "Too
bad Nevada Power and Southern California Edison could
not figure out to put a working power plant back in
service. I hope the lights stay on."
Thanks to
Salt River Project, a public power company serving Phoenix,
the 1,580-megawatt Mohave Generating Station may start
cranking out electricity again in a few years.
Salt River
this week announced that it is looking for partners
willing to help it restore Mohave to service. Restoration
would cost about $1.1 billion including $500,000 for
pollution-reduction equipment. John Coggin, the utility's
manager of supply and trading, said former employees
of the Laughlin plant would be attractive job candidates
if Salt River is successful in reopening the plant.
Salt River
has drawn mixed reactions to its proposal. Nevada Power
Co., which is seeking regulatory approval for a $3.7
billion coal-fired plant in Ely and related transmission
line, is not interested in partnering in Mohave, said
spokeswoman Andrea Smith.
"We
don't believe it's economically feasible to restart
(Mohave)," Smith said.
But Arizona
Public Service of Phoenix and Tucson Electric Power
of Tucson, shown interest in the Mohave project.
"As
part of our commitment to provide customers with reliable
and affordable electricity, it's prudent for us to evaluate
any potential source of generation that might help us
meet the energy needs of our growing population,"
said Mark Fallon, a spokesman for Arizona Public Service.
"As
an active participant in the market, APS would always
be interested in purchasing competitively priced power
from operating power plants," Fallon said.
Joe Salkowski,
a spokesman for Tucson Electric Power and its parent
UniSource Energy, said his companies have discussed
the project with SRP.
"And
we may have an interest in participating in some way,
but we haven't committed to any determination of what
would be appropriate," he said.
Tucson Electric
could sign a long-term contract for power from Mohave
or it could join Salt River as a partner.
Southern
California Edison and the Los Angeles Department of
Water and Power, like Nevada Power, have said they were
no longer interested in restarting Mohave.
"Although
SCE is no longer pursuing a return to service for Mohave,
we support SRP's efforts to find a new ownership group,"
Edison said.
Salt River
proposes to buy coal from Navajo Nation and Hopi Tribe.
Edison, Nevada
Power and other owners of Mohave closed the power plant
at year-end 2005 when they failed to negotiate agreements
with the American Indian tribes for coal and water needed
to ship the coal by slurry line. Under an agreed federal
court judgment with environment, the Mohave owners promised
to install pollution control equipment or shut it at
that time. The Laughlin power plant employed 345 workers.
An industry
insider, speaking on the condition of anonymity, said
it was logical for Salt River to pursue opportunities
for Mohave, given the explosive growth of power demand
and longer time needed to develop a new power plant.
The source said power use in the southwestern United
States is increasing by 1,000 megawatts every year,
but utilities are reluctant to build more plants that
rely on volatile-priced natural gas.
"We're
behind, and it's going to be hard to catch up,"
he said. The source said utilities will be inclined
to consider Mohave if it proves feasible to reopen the
plant.
However,
the plant owners would need to get an extension on Mohave's
contract for an allotment of water from the Colorado
River in order to continue operations beyond 2026, he
said.
Kennon, who
retired from Mohave 10 years ago at age 49, said he
would go back to work at Mohave "if the money is
there."
He added:
"Guess my next question should be, 'Who do I contact
for a job?'"
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