Navajo Transitional Energy Company (NTEC) owns and manages BHP Navajo Mine in northwestern New Mexico, which supplies coal to the nearby Four Corners Power Plant. This week, NTEC announced it has acquired a 7 percent ownership interest in a couple units of the Four Corners Power Plant. The agreement was executed last week, and the transaction closed on July 2, 2018.
NTEC purchased units 4 and 5 from 4C Acquisition LLC, an affiliate of Arizona Public Service Co. (APS), the power plant’s majority owner.
Tribal officials said ownership of a power plant is a first for a Navajo Nation enterprise.
“This is a milestone for NTEC. 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,” said Clark Moseley, NTEC CEO.
APS and NTEC also entered a new coal supply agreement to govern the power plant’s fuel purchases from NTEC. The new agreement provides NTEC more flexibility in the sale and purchase of coal from the Navajo Mine.
In connection with these transactions, 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. In this time and era, Navajos are seeking a seat at the energy table and NTEC is providing the means to make that happen,” said Steve Grey, governmental and external affairs director.