Press and Photos
From: Calvin Johnson caljohnson2006@yahoo.com Black Mesa EIS meeting
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FINAL CLOSURE OF MOHAVE GENERATING STATION SIGNALS END OF ERA FOR THE WEST’S DIRTIEST POWER PLANT AND SIGNALS NEW ERA OF CLEAN ENERGY FOR NAVAJO AND HOPI PEOPLE With the announcement from Mohave’s operator that they will no longer work to re-open the 1500 megawatt coal-fired plant, the Just Transition Plan now stands as the most viable solution for tribal economic development FLAGSTAFF, AZ – Just Transition Coalition members expressed hope for a renewable energy future today following the announcement by Southern California Edison (Edison) that the utility will no longer work to re-open the Mohave Generating Station that shut down on December 31, 2005. The permanent closure of the Mohave power plant in Laughlin, NV signals an end of an era and a possible new beginning, coalition members said. The plant has been closed because neither coal or water contracts were in place to continue, and the owners chose not to make the agreed upon investments in pollution control with those uncertainties. This announcement means that the Mohave owners, primarily Edison, will no longer maintain this coal burning power plant on stand by status to reopen in the future. Other owners of the plant are Salt River Project, Los Angeles Department of Water and Power, and Sierra Pacific’s Nevada Power. The Just Transition Plan is a proposal from several citizen groups to encourage development of renewable energy, such as wind and solar projects, on the Navajo and Hopi reservations in northern Arizona as a long term solution to the pollution and groundwater pumping needed to run the Mohave power plant. Funding for these new energy projects is proposed to come from the windfall profits made by the Mohave owners from the sale of federal pollution credits not used for offsetting sulfur dioxide emissions from the Mohave plant. Enei Begaye, member of the Just Transition Coalition, said “A permanent closure of the Mohave plant presents a great opportunity for both the Navajo and Hopi tribes to redirect tribal funds from negotiations with Edison into rebuilding. The Just Transition proposal is a way to bring the Navajo and Hopi people a long term sustainable and healthy economy.” “The Mohave plant represents the past, but renewable energy proposed through the Just Transition Plan represents the future for cleaner energy for California and long term jobs for the Navajo and Hopi people,” said Wahleah Johns of the Black Mesa Water Coalition, another coalition partner. In May, 2006, utility regulators in California approved part of the Just Transition Plan that forced SCE to set aside tens of millions of dollars from their sale of sulfur dioxide allowances through a federal pollution trading program. With this latest announcement, the Just Transition Plan becomes the most viable plan for economic development from Mohave’s closure, according to the coalition. “Now is the time for our tribal leaders to join the people in building a new and clean start,” said Enei Begaye of the Black Mesa Water Coalition. “Mohave’s closure is hopefully a turning point for our energy dependence on coal to a just transition towards cleaner wind and solar,” said Andy Bessler, Southwest Representative for the Sierra Club. “It also helps us deal with global warming since coal-fired power plants are the leading source of climate warming carbon dioxide gas pollution.” |
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Tuesday Mohave closure now permanent
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For Immediate Release: Contact: Information for the Just Transition Coalition:
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TRIBAL, CONSERVATION GROUPS SEEK 'JUST TRANSITION'
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Groups want closure proceeds invested in renewable energyBy TERENCE CHEA SAN FRANCISCO – Tribal leaders and environmental groups on Wednesday asked California energy regulators to take sale proceeds from the closure of a Nevada power plant and reinvest them in renewable energy projects. Leaders of the Navajo and Hopi tribes in Arizona, along with representatives of the San Francisco-based Sierra Club and other environmental groups, filed the petition with the California Public Utilities Commission. On Dec. 1, operators of the Mohave Generating Station near Laughlin, Nev., closed the 1,580-megawatt power plant rather than install pollution control equipment estimated to cost $1.1 billion. The station, about 100 miles south of as Vegas, used coal from Black Mesa Mine in Arizona and served electricity customers in California. The station's owners, including Southern California Edison, were expected to receive tens of millions of dollars from the sale of pollution credits that allowed the release of 53,000 tons of sulfur dioxide. The tribes and environmental groups want those proceeds to be invested in energy projects that will help tribal communities affected by the plant's closure. About 200 mostly Navajo coal mine workers lost their jobs when the plant was shut down, according to the Just Transition Coalition, which filed the petition. The groups seek funding from Southern California Edison's sale of about $40 million per year in pollution credits to be used to clean up contamination, create jobs and develop renewable energy sources for the region. "This is a way to bring about renewable energy such as wind and solar and a stronger economy for people who really need it," said Andy Bessler, southwest representative for the Sierra Club. On Wednesday, PUC President Michael Peevey received the petition, and the commission would evaluate it, said PUC spokesman Susan Carothers. Southern California Edison, which owns 56 percent of the station, was also evaluating the proposal and would not comment on it, said spokesman Gloria Quinn. In 1999, environmental groups won a consent degree that required the plant, which was blamed for contaminating the region's air, to upgrade its pollution controls or close by Jan. 1 this year. |
http://www.latimes.com/business/la-fi-mohave12jan12,1,128726.story Indians Seek Funds From EdisonA coalition that includes Arizona Navajo and Hopi members seeks up to $40 million a year in compensation after the closing of a power plant.By Marc Lifsher Members of two Arizona Indian tribes asked regulators Wednesday to order Southern California Edison Co. to pay them as much as $40 million a year to make up for job losses and other economic fallout from the shutdown of the massive Mohave power plant on Dec. 31. A coalition that includes Navajo and Hopi Indians as well as environmental groups said the money also would compensate tribal members for "a long history of sacrifices" made on behalf of Edison customers who benefited from cheap power from the Mohave plant since it opened in 1971. The plant in Laughlin Nev., generated electricity for the Los Angeles Basin using coal dug from the Black Mesa mine on tribal lands in northeast Arizona. Losing its sole customer curtailed production and forced layoffs at Black Mesa, costing the Indians 200 high-paying jobs and $20 million in annual mining royalties. The Mohave plant, one of the biggest sources of sulfur dioxide pollution in the West, was closed after Edison failed to meet a deadline for installing expensive pollution-control equipment as required in the 1999 settlement of an environmental lawsuit. In a motion filed Wednesday, the coalition asked the California Public Utilities Commission to order Edison to give the Indians money the utility is expected to earn by selling pollution credits created by mothballing the 1,585-megawatt power plant. Edison, which operated the plant and is its majority owner, relied on Mohave for 7% of its electricity. The request for financial restitution, which has not been endorsed by the two tribal governments, is legally unprecedented, some energy experts said. "They are plowing new ground, and it's going to be a tough argument to make," said Michael Shames, a veteran advocate for energy users with the Utility Consumers' Action Network. Edison, a unit of Rosemead-based Edison International, declined to comment on the Indians' motion, saying it needed to review the document. Meanwhile, the utility and Peabody Energy, the world's largest coal-mining company and operator of the Black Mesa mine, continue to negotiate with the two tribes' governments over contracts for coal and water supplies needed to possibly reopen the Mohave plant. It's unclear how many Hopi and Navajo are actually active in the newly formed Just Transition Coalition, which also includes the Grand Canyon Trust and the Sierra Club among its members. Beth Sutton, a spokeswoman for Peabody Energy, described the coalition as "a few vocal extremists" and said its PUC motion was "yet another red herring to divert attention from real solutions to minimize Mohave's shutdown." The coalition wants the PUC to track Edison's sales of pollution credits and to make the funds available to the tribes for job creation and economic development, including solar and wind energy projects. Under the federal Clean Air Act, owners of older power plants receive credits that allow them to continue operating without being fined for emitting excessive amounts of sulfur dioxide. Those credits can be sold to other polluters if the original owner reduces or eliminates its smokestack emissions. The credits are traded on the open market and currently sell for about $1,300 per ton of sulfur dioxide. Mohave annually poured about 53,000 tons a year into the atmosphere and potentially could earn $65 million a year for its owners. In addition to Edison's 56% stake, the Los Angeles Department of Water and Power and two Arizona utilities hold minority shares in the plant. "It's wrong to allow [Edison] to reap hundreds of millions of dollars in new, unearned revenues from the sale of sulfur allowances," said Leonard Selestewa, a Hopi with a group called the Black Mesa Trust. "Millions of people have benefited from Mohave; now it's our turn." PUC President Michael Peevey, who met with Selestewa and other coalition members, said he was sympathetic with the tribes' grievances. "We've never been confronted with anything like this," he said. Pollution credits collected by a utility typically belong to ratepayers, Peevey noted, and the commission will need to examine whether it's legal for revenue from the sale of those credits to be shared with outside groups. The PUC also must consider the Indians' claims that they suffered financial hardships because of unfair contracts with Peabody and Edison, and weigh those against the benefits they received from royalty payments and job creation, Peevey said. The Indians have as much claim to the revenue from Mohave emission credits as Edison ratepayers, and economic restitution would be "appropriate and just," said Sara Steck Myers, attorney for the Just Transition Coalition. "There's been a contribution made by the Navajo and the Hopi nations to the welfare and benefit of California ratepayers as well as to Edison," itself," she said. Restitution payments to the Indians could pay off for California electricity consumers if they are invested in alternative energy projects that send power back to Los Angeles, said Roger Clark of the Grand Canyon Trust in Flagstaff, Ariz. The trust brought the original lawsuit against the Mohave plant, contending that its pollution was obscuring views of the renowned national park. Development of alternative energy projects also would provide needed local power and jobs for the 8,000 Hopi and 250,000 Navajo tribal members, who suffer unemployment rates of close to 50%, Indian coalition members said. Past royalty payments have not been "trickling down to the community level," said Marshall Johnson, a Navajo who lives near the Black Mesa mine. The Indians make a strong argument for getting at least some financial support, said Matt Freedman, an analyst with the Consumer Reform Network, a ratepayer advocacy organization that regularly appears before the PUC. "I think there's an obligation to provide a transition plan for the Hopi and Navajo people to help them move away from a reliance on dirty coal," Freedman said. |
