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Committee approves Navajo project amendment to reflect restoration work after 2019 divestiture

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Summary

The committee approved a second‑amended and restated agreement updating responsibilities and costs for restoration work tied to the Navajo project for the 2020–2029 period, reflecting post‑divestiture cleanup and transmission ownership arrangements.

The Energy and Environment Committee on Jan. 21 approved an amendment updating terms for the Navajo project covering Jan. 1, 2020, through Dec. 31, 2029, to reflect current responsibilities among participants after the Navajo generating station was decommissioned and divested in 2019.

Faronek Sarbu, transmission planning manager with LADWP, described the work as restoration related to the former Navajo generating station and the associated transmission systems. “The work that is supposed to be done … is part of that restoration,” Sarbu said, explaining the restoration includes cleanup and work related to decommissioning the former coal‑fired generation facilities. He said that following the 2019 divestiture, what remains for the participants to operate is the transmission system.

Committee members asked for clarity about the scope of restoration and the overall Navajo project. Staff said the Navajo project comprises the former generating station, the certain transmission system (operated by Arizona Public Service Company), and the Western transmission system (co‑operated by LADWP and other partners). Staff said participants negotiated scopes and costs over multiple years and that the amendment allocates responsibilities and costs for cleanup and restoration work.

The committee voted to approve the amendment on a roll call; four members voted yes and one was absent.