Navajo Transitional Energy Company
Published February 28, 2019
FARMINGTON, N.M. — Navajo Transitional Energy Company (NTEC) released a report by Energy Ventures Analysis (EVA) entitled “Owning Four Corners is a Good Deal for NTEC and the Navajo Nation” that refutes a December 2018 IEEFA study that claimed NTEC’s 7 percent ownership in the Four Corners Power Plant was a bad investment that could cost NTEC $170 million from 2020 to 2027.
“IEEFA relied upon cost data for FCPP based upon years when the plant was out of service to make major investments for future operations and based upon other owners of FCPP, not NTEC,” the Energy Ventures Analysis (EVA) study stated in the executive summary.
The EVA study explained that data used to lead the IEEFA to their claim of losses was based on data compiled in years when the power plant’s two units were undergoing major upgrades that resulted in units being off line for a substantial amount of time.
The study was composed by Energy Ventures Analysis, a Washington, D.C. firm that specializes in consultation of coal, natural gas, and renewable energy development.
The 13-page study details and refutes the five central claims made by Institute for Energy and Economic and Financial Analysis (IEEFA) study, “A Bad Bet: Owning the Four Corners Power Plant is a Risky Gamble for the Navajo Nation and the Plant’s Other Owners.”
“Navajo Transitional Energy Company is strong and sound company that is becoming a pillar of success of the Navajo Nation. The Navajo Nation’s investment to purchase Navajo Mine and a portion of the Four Corners Power Plant continues to show it’s worth and the study from Energy Ventures Analysis only solidifies our points as to why Four Corners Power Plant was and is a good investment for NTEC,” said Clark Moseley, NTEC CEO.
In addition, the EVA study refutes claims that the power plant is a risk because of its age, states that natural gas prices are volatile, and renewable energy isn’t ready to meet current energy demands.
“In total, NTEC has been a highly profitable entity in 2018, including both its ownership of the Navajo Mine and FCPP, and can expect to be profitable in 2019 and future years,” the study stated.
“Our work and investment into business opportunities are for the betterment of the Navajo Nation. As a Navajo Nation business entity, we are fully vested in achieving results that will help Navajo people. This study is proof that we have been and continue to do so,” Moseley said.
The study is available to review at https://www.navajo-tec.com/media