Navajo Transitional Energy Co. (NTEC) released a report by Washington, D.C., firm 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% 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 EVA study stated.
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 13-page study detailed and refuted 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,” NTEC CEO Clark Moseley said. “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.”
In addition, the EVA study refuted claims that the power plant is a risk because of its age, stated 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 www.navajo-tec.com/media.