News
LCG, March 18, 2025--RWE and Meta today announced a new power purchase agreement (PPA) for offtake from RWE's 200-MW Waterloo Solar Project, which is located in Bastrop County, Texas. Under the agreement, Meta will purchase 100% of the output from the solar facility, which will support Meta's goal of matching its electricity needs with 100 percent clean energy. The project is scheduled to commence onsite construction in late 2025.
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LCG, March 14, 2025--The California Public Utilities Commission (CPUC) approved an expansion of San Diego Gas & Electric's (SDG&E) Westside Canal Battery Energy Storage facility. The expansion project is located in California's Imperial Valley and will add 100 MW of energy storage capacity to the existing 131 MW facility. The new capacity is expected to be fully operational by June 2025. Upon completion, the Westside Canal facility, with a total capacity of 231 MW, will be the largest storage asset in SDG&E's utility-owned battery storage portfolio.
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Industry News
Navajo Generating Station Lease Extended through 2019
LCG, June 28, 2017--The Navajo Nation Council on June 26 voted 18-4 to approve the replacement lease and related agreements to extend the operations of the coal-fired Navajo Generating Station. The 2,250-MW electric generating station is located on the Navajo Indian Reservation near Page, Arizona, approximately 20 miles from the Grand Canyon. The station includes three, 750-MW units, and coal is supplied from the Kayenta Mine, which is located on tribal trust lands leased from the Navajo Nation and Hopi Tribe.
Rather than closing the plant in 2017, the utility owners of Navajo Generating Station (NGS) voted last February to extend operations of the coal-fired power plant to the December 2019 end of its lease if the agreement could be reached with the Navajo Nation. The four utility owners of NGS include: Salt River Project (SRP), Arizona Public Service Co., NV Energy and Tucson Electric Power. The U.S. Bureau of Reclamation is the fifth owner.
The over two-year extension of the agreement preserves continued employment at the plant and additional revenues for the Navajo Nation and the Hopi Tribe. It also provides the Nation or others with the potential to operate the plant beyond 2019 should they so choose - although the current non-governmental group does not intend to be participants at that time.
Without the new lease, preparations to start the decommissioning of the plant would be required as early as July. The new lease allows the operating owner of the facility - the Salt River Project - to defer any decommissioning activities until after the original 50-year lease period concludes, in December of 2019. This allows NGS and Kayenta Mine operations to continue in the near-term without interruption, and allows more time to find new ownership for NGS.
In February, the utility owners of NGS stated low natural gas prices favor gas-fired generation over coal-fired generation like NGS. An SRP representative stated, "The utility owners do not make this decision lightly. NGS and its employees are one reason why this region, the state of Arizona and the Phoenix metropolitan area have been able to grow and thrive. However, SRP has an obligation to provide low-cost service to our more than 1 million customers and the higher cost of operating NGS would be borne by our customers."
After the new lease was approved by the Council, the U.S. Secretary of the Interior issued a statement that, "Since the first weeks of the Trump Administration, one of Interior's top priorities has been to roll up our sleeves with diverse stakeholders in search of an economic path forward to extend NGS and Kayenta Mine operations after 2019. Operating NGS and the Kayenta Mine through 2019 is the first step to meet this priority."
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