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Could Coal Subsidies Be Considered?

Could Coal Subsidies Be Considered?
March 31
10:37 2017

One of the ways of saving the Navajo Generating Station could possibly be if the federal government lowered the price of coal. It’s an idea that has mostly been discarded since it was announced that the price of coal may lead to the closure.

Now, however, Navajo Nation leaders are reportedly considering asking the federal government to think about subsidies for coal. This idea is considered viable since President Trump himself, both during his campaign, and in the past week, has talked about helping the coal industry.

The closing of NGS would have a serious negative ripple effect across the Navajo Nation, the Hopi Reservation and the entire state of Arizona for years to come. That’s not to mention how it would affect the city of Page.

The closing of the plant would have hundreds of people out of work, and that includes the many people who work at the Kayenta coal mine.

Meanwhile, with or without subsidies for coal, NGS closes this summer unless the Navajo nation and the Salt River Project reach an acceptable lease agreement. That’s been an issue ever since the vote was made in February to close the plant in 2019.

The problem is that without that lease agreement the plant closes this summer so that SRP and other owners have time to clear the area and return it to its natural state.

With a lease agreement, the plant would continue pumping out electricity until the end of 2019, and then the process of returning the land to its original condition would begin.

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