NGS Owners Initial Proposal 1 21-2011

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NGS Owners Initial Proposal 1 21-2011

  1. 1. Navajo Generating Station Owners Initial Proposal Long Term Emissions Control Plan January 21, 2011
  2. 2. Plant Overview <ul><li>Three units placed in service 1974 to 1976 </li></ul><ul><li>750 MW each unit </li></ul><ul><li>2250 MW total </li></ul><ul><li>500 KV switchyard and transmission </li></ul><ul><li>Located on Navajo reservation </li></ul><ul><li>Coal from nearby Kayenta mine </li></ul>01/21/2011 GDReeves
  3. 3. Ownership 01/21/2011 GDReeves Entity Percent Ownership (%) Capacity Ownership (MW) 1 USBR 24.3 546.6 2 SRP 21.7 488.3 3 LADWP 21.2 477.0 4 APS 14.0 315.0 5 NV Energy 11.3 254.3 6 TEP 7.5 168.8 Total 100.0 2250.0
  4. 4. Navajo & Hopi Annual Economic Benefits (Plant and Mine) <ul><li>Navajo Nation </li></ul><ul><ul><li>Royalties, Permits, Leases, Etc. $ 41M </li></ul></ul><ul><ul><li>Wages, Scholarships, Donations $ 96M </li></ul></ul><ul><ul><li>Total $137M </li></ul></ul><ul><li>Hopi Tribe </li></ul><ul><ul><li>Royalties, Scholarships, Etc. $12.2M </li></ul></ul>01/21/2011 GDReeves
  5. 5. Employment <ul><li>NGS </li></ul><ul><ul><li>540 full-time employees </li></ul></ul><ul><ul><ul><li> 81% Native American </li></ul></ul></ul><ul><ul><li>Several hundred part-time employees during major maintenance </li></ul></ul><ul><ul><ul><li> Approximately 90% Native American </li></ul></ul></ul><ul><li>Kayenta Mine </li></ul><ul><ul><li>415 full-time employees </li></ul></ul><ul><ul><ul><li> 90% Native American </li></ul></ul></ul>01/21/2011 GDReeves 5
  6. 6. Objectives <ul><li>Ensure the continued long-term safe, reliable and economical operation of the Navajo Generating Station </li></ul><ul><li>Comply with all environmental requirements </li></ul>01/21/2011 GDReeves
  7. 7. Key Challenges EPA Rulings Expected Co-Tenancy Expires LADWP Withdraws Lease Expires 323 Grants Expire Coal Contract Expires Transmission Contracts Expire LADWP Seeks Withdrawal Environmental Critical Agreements Ownership Equipment Installation Requirement Expected 01/21/2011 GDReeves Water Service Contract Expires 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
  8. 8. Environmental <ul><li>Existing environmental controls </li></ul><ul><ul><li>Electrostatic precipitators (ESP’s) to control fly ash </li></ul></ul><ul><ul><li>SO 2 scrubbers (wet) installed in the nineties </li></ul></ul><ul><ul><li>Low NOx Burners being installed now </li></ul></ul><ul><ul><ul><li>Units 2 & 3 complete; Unit 1 in 2011 </li></ul></ul></ul><ul><li>Environmental controls have significantly reduced emissions </li></ul><ul><ul><li>ESP’s capture 99% of fly ash emissions </li></ul></ul><ul><ul><li>SO 2 emissions reduced by 90% </li></ul></ul><ul><ul><li>NOx emissions will be reduced by 40% </li></ul></ul>01/21/2011 GDReeves
  9. 9. Proposal <ul><li>Complete the voluntary installation of Low NOx Burners with Separated Over Fire Air by Dec. 2011 </li></ul><ul><ul><li>NOx reduction of 12,618 tons/year </li></ul></ul><ul><ul><li>$45 million </li></ul></ul><ul><li>Establish a “Visibility Improvements” Fund </li></ul><ul><ul><li>NGS to contribute $3 million per year </li></ul></ul><ul><ul><li>Illustrative Uses </li></ul></ul><ul><ul><ul><li>Non-Fire forest management </li></ul></ul></ul><ul><ul><ul><li>Revegetation of high dust areas </li></ul></ul></ul><ul><ul><ul><li>Soil stabilization of dirt roads </li></ul></ul></ul><ul><ul><ul><li>Electric or natural gas buses </li></ul></ul></ul>01/21/2011 GDReeves
  10. 10. Proposal (Continued) <ul><li>Install Technology to reduce annual average NOx emissions to 0.08 lb/MMBtu </li></ul><ul><ul><li>Unit 3 by 12/31/2027 </li></ul></ul><ul><ul><li>Unit 2 by 12/31/2028 </li></ul></ul><ul><ul><li>Unit 1 by 12/31/2029 </li></ul></ul><ul><li>Maintain a plant wide annual average NOx emission rate of not more than 0.08 lb/MMBtu starting in 2030 </li></ul>01/21/2011 GDReeves
  11. 11. 01/21/2011 GDReeves Back-up Slides

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