FLAGSTAFF, Ariz. — Two companies that were negotiating to take over a coal-fired power plant on the Arizona-Utah line ended the effort Thursday, saying the challenges were too great.
The Navajo Generating Station near Page is one of the largest coal plants in the western United States. It was set to close at the end of 2019, the victim of lower natural gas prices and an environment that has not been friendly to coal.
The plant’s coal supplier, Peabody Energy, launched a long-shot bid to find a buyer to save the 2,250-megawatt plant and the coal mine that has no other customers. New York-based Avenue Capital and Chicago-based Middle River Power showed interest and touted a plan to run the plant at less than half its capacity to prolong its life.
They announced Thursday they were terminating the effort. The companies said they could not get anyone to commit to buying power from the plant, delaying the start of an environmental review. A ballot measure to boost renewable energy standards in Arizona created more uncertainty.