About Navajo Transitional Energy Company
Navajo Transitional Energy Company, LLC is a wholly owned limited liability company of the Navajo Nation that has been authorized to purchase and operate the BHP Navajo Mine, located on the Navajo Nation, south of Farmington, New Mexico. The Navajo Mine currently supplies coal to the Four Corners Power Plant (FCPP), which is also located on the Navajo Nation. Navajo Mine is operated by BHP Billiton Navajo Coal Company on a lease on Navajo Nation lands and has provided coal to FCPP for 50 years.
FCPP is owned by a consortium of public utilities and is operated by Arizona Public Service (APS). APS owns 100 percent of Units 1, 2 and 3 while six companies own Units 4 and 5; APS owning 15 percent, Southern California Edison (SCE) 48 percent, Public Service Company of New Mexico 13 percent, Salt River Project 10 percent, Tucson Electric Power seven percent and El Paso Electric, seven percent.
In November 2010 APS announced they would purchase SCE’s 48 percent share in Units 4 and 5 and bring the two units to required emissions standards by retrofitting selective catalytic reduction technology imposed by the Environmental Protection Agency as Best Available Retrofit Technology (BART). Units 1, 2 and 3 will be closed. This move will decrease the annual average coal burn from approximately eight million tons to six million tons of coal. This decreased volume has made the mining operation unattractive to BHP Billiton for the continued investment in and operation of the Navajo Mine.
The Navajo Nation was offered the opportunity to purchase the mine.
On December 30, 2013 the Navajo Nation obtained the mining license to Navajo Mine. The Navajo Nation created NTEC to own and operate the Navajo Mine. BHP Billiton will continue as Mine Manager through 2016. Employees at the mine will continue as employees of the Mine Manager, BHP Billiton, through 2016.
The Navajo Nation will continue to receive royalties and taxes from the operation and over 800 well-paying jobs at the power plant and mine will continue to be filled predominantly by Navajo Nation tribal members.
A new Mine Manager company will need to be selected to begin managing the mine in 2017. If the transactions are completed as planned, NTEC will have coal supply agreements in place with FCPP through 2031.
NTEC will also be responsible for developing opportunities in renewable and sustainable energy resources of the Navajo nation as well as other technologies while maintaining respect for the Navajo Nation’s land, air, water, natural resources and economic resources.