Paying a farmer in advance to get a share of the crops is a great way to get the freshest produce, but there are risks.
Salt River Project says Nevada Utility wants to sell its share of SRP's Navajo coal power plant
Salt River Project Company confirmed that a Nevada utility wants to sell its share of a coal-fired power plant in northern Arizona. It’s the latest in a series of financial hits for SRP.
Nevada state lawmakers have approved legislation that allows Nevada Energy Incorporated to sell its 11 percent share of the SRP-operated Navajo Generating Station by 2019. The move creates more uncertainty about the future of the Navajo plant.
Only a few weeks ago, the largest utility in Los Angeles announced it will stop purchasing power from the facility within the next three years, and the U.S. Environmental Protection Agency is pushing SRP to install millions of dollars in upgrades to clean air technology at the station.
SRP spokesman Scott Harrelson said the utility hopes to overcome the challenges and keep the plant operating through 2044.
"If for some reason we cannot reach agreements on all of these different issues, the potential exists for the plant to shut down after 2019," Harrelson said.
Despite the millions and possibly billions of dollars in losses, Harrelson said it is too early to say if SRP customers will see a rate increase.