ARIZONA: A consortium of Arizona energy utilities, including Arizona Public Service Company, the Salt River Project, and Tucson Electric Power, is stepping up to address the economic challenges faced by communities affected by the transition away from coal-fired power plants.
This initiative involves allocating over $134,000 in grants to support various organizations and projects in regions grappling with job losses and economic hardships resulting from coal-fired power plants.
A closer look at the beneficiaries of Arizona's energy utilities grants
In the latest round of economic development grants, five organizations will benefit from the financial assistance. Notable recipients include Northland Pioneer College in Show Low, which plans to redesign its Energy and Industrial Technician program.
The City of Page will utilize funds to hire a grant-writing consulting firm, supporting efforts to expand broadband access and business incubators. Town of Eagar will receive funding for essential services such as fire safety medical training, and Eagar’s Public Works, Water, and Sewer Department will use the funds for water conservation programs.
Joseph City Foundation, near the Cholla Power Plant that is slated for closure in 2025, will focus on training and job development opportunities.
The closures of coal-fired plants, such as the Navajo Generating Station in 2019 and the impending shutdown of units at the Springerville Generating Station by 2032, have led to layoffs and economic challenges in affected regions.
In response, three Arizona utilities have committed to providing a total of $1 million in grants through the Utilities' Grant Funding Program. These funds are earmarked for tribal, state, and local governments, public schools, nonprofit groups, and other entities impacted by the shift in energy production.
Arizona energy utilities tackle socio-economic challenges
The move comes as a part of a broader commitment by the energy utilities to address the socio-economic challenges arising from the closure of coal-fired power plants.
Roberto Nutlouis, a representative from the affected communities, emphasized the need for a just and equitable transition, highlighting the adverse effects on the region's land, water, and people while benefiting cities like Phoenix and Tucson, per Rose Law Group Reporter.
The economic impact of plant closures extends beyond job losses. The Navajo Generating Station, along with the Kayenta Mine, once employed around 700 workers and contributed between $30 million to $50 million in revenue to the Navajo Nation. The closure of such facilities necessitates proactive measures to support affected communities in their economic recovery.
Efforts are underway to secure a $100 million Just Transition agreement between the Navajo Nation and Arizona Public Service, focusing on general economic recovery, electrification initiatives, and an assessment of unelectrified homes and businesses.
Additionally, the agreement includes a commitment by APS to purchase 600 megawatts of renewable electricity generation from the Navajo Nation or nearby communities.
The proactive steps taken by Arizona energy utilities to provide financial aid to communities affected by coal-fired plant closures demonstrate a commitment to a just and equitable transition.