FARMINGTON, N.M. – Navajo Transitional Energy Company responded to a study that claims financial losses of NTEC’s investment into the Four Corners Power Plant.
“The study released by the Institute for Energy Economics and Financial Analysis is far from correct in assuming that NTEC would lose $170 million through 2027 due to our investment into the Four Corners Power Plant. Furthermore, the study makes assumptions about an industry the IEEFA doesn’t support,” said Clark Moseley, NTEC CEO.
The IEEFA released a study, “A Bad Bet: Owning Four Corners Power Plant is a Risky Gamble for the Navajo Nation and Plant’s Other Owners,” earlier this month stating NTEC would lose $170 million from owning 7 percent of Four Corners Power Plant. The study claims declined cost to energy production ratios, maintenance, and energy production competition as reasons for projected NTEC losses.
The study lists five risk points. The first two are about the age of the power plant and sites declined production since 2016 to forecast a bleak outlook for the Four Corners Power Plant.
“The study fails to state that three of five units were decommissioned at Four Corners Power Plant in 2014. Simple math shows that less units in operation means less output of energy, therefore the study’s claims are flawed because they fail to mention how the decommissioning of units 1, 2, and 3 effected the production of energy,” Moseley said. In other words, the decrease in production was a planned and entirely expected decrease unrelated to the age of the plant.
The third and fourth risk outlined in the study are based on predictions that assume lower costs of energy would make coal-based energy less competitive. NTEC as an owner of is already seeing a strong demand for its power from the Four Corners Plant.
Renewable energy faces challenges of producing energy when consumption is at the