Navajo Transitional Energy Co. (NTEC) has acquired a 7% ownership interest in units 4 and 5 of the Four Corners Power Plant (FCPP). NTEC purchased the interest from 4C Acquisition LLC (4CA), an affiliate of Arizona Public Service Co., which operates the FCPP. The agreement was executed last week, and the transaction closed on July 2. As a result of the transaction, NTEC, a business wholly owned by the Navajo Nation, becomes an owner of a coal-fired power plant, a first for a Navajo Nation enterprise.
“This is a milestone for NTEC,” said Clark Moseley, NTEC CEO. “One of our primary goals has been to manage the assets of NTEC responsibly to allow for growth and prosperity as a Navajo Nation-owned enterprise. This news is great for NTEC and we look forward to maximizing the benefits of this milestone.”
Concurrently with the purchase, NTEC and Arizona Public Service Co. also entered into an amended and restated coal supply agreement, which governs FCPP fuel purchases from NTEC. The amended and restated coal supply agreement provides NTEC with more flexibility in the sale and purchase of coal from NTEC’s Navajo mine. NTEC was also able to pay off the remaining balance of its term loan that was used to refinance NTEC’s purchase of the Navajo mine from BHP Billiton in 2013.
“NTEC has been working long and hard on securing and finalizing this deal,” said Steve Grey, governmental and external affairs director. “In this time and era, Navajos are seeking a seat at the energy table and NTEC is providing the means to make that happen.”