FARMINGTON, N.M. —Navajo Transitional Energy Company (NTEC) has closed a transaction in which it acquired a seven percent ownership interest in units 4 and 5 of the Four Corners Power Plant (FCPP).
NTEC purchased the partial ownership from an affiliate of Arizona Public Service (APS), which operates the coal-fired power plant.
The energy company is owned by the Navajo Nation.
NTEC owns the Navajo Mine south of Fruitland, New Mexico.
Under the purchase and sale agreement, NTEC purchased the seven percent interest from 4C Acquisition, LLC, an affiliate of APS, which operates the plant. The agreement was executed several weeks ago, and the transaction closed July 2.
As a result of the transaction, NTEC, a business entity 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. 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.
The deal gives 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.
Some information provided by the Associated Press