ABOUT US

Introduction
CAPSmart Energy is a website created by Central Arizona Project (CAP) to educate the public on critical issues concerning the types and costs of energy used by CAP to move Colorado River water into central and southern Arizona.  We think that the public should be well informed on the changing issues affecting water management and delivery, because, after all, it is their water, their money, and their state.

The interconnection of water and power
Central Arizona Project is the largest source of renewable water in Arizona. It’s also the biggest user of electricity in the state. Last year, CAP used 2.8 million mega-watt hours to deliver more than 500 billion gallons of Colorado River water to 80% of the state's population.

Why so much power?
Between Lake Havasu and the end of the system south of Tucson, Colorado River water flows 336 miles and ends its journey 2,800 feet higher than when it started. Although the CAP system design uses the contours of the land to make the best use of gravity to move water, the fourteen pumping plants that lift the water between each section of canal consume a tremendous amount of electricity.

Reliable Power Supplies are Critical to CAP Operations
Ninety-five percent of the power CAP uses to move this water comes from the coal-fired Navajo Generating Station (NGS) located on the Navajo Reservation near Page, Arizona.  CAP also receives some energy from Hoover Dam and from its own generation at New Waddell Dam at Lake Pleasant.  CAP purchases the remainder at market rates from other power producers.

The Colorado River Basin Project Act authorized the US to participate in a coal-fired power plant to provide power for CAP pumping. Navajo Generating Station was proposed by then Secretary of the Interior Stewart Udall as an alternative to building additional dams along the Colorado adjacent to Grand Canyon system.

A number of electric utilities share ownership of the electrical generation capacity of the Navajo facility with the Bureau of Reclamation (on behalf of CAP). The largest share, about 24%, is dedicated to CAP uses. As a result, CAP meets most of its energy needs for the cost of producing this power.  Having a dedicated source of baseload electricity provides considerable reliability for the CAP system as well as a substantial financial benefit to our customers and the residents and businesses of our 3-county service area.

The Challenges of Coal-Based Power
There are a number of challenges associated with CAP’s dependence on the Navajo Generating Station.  All are related to the fact that the NGS is powered by coal.

As might be expected in an environment where there is a significant movement to eliminate or reduce US dependence on fossil fuels, reliance on a carbon-based fuel source puts the facility in a tenuous position. Several states, including California, Washington and Maine, have passed legislation to limit or put a moratorium on the construction of new coal-fired plants. 

New Federal Air Quality Regulations Anticipated
Existing coal-fired power plants must meet stringent air and water quality regulations to ensure they do not pose an environmental hazard. In addition, because the Navajo plant is near a dozen or so National Parks, minimizing releases that contribute to haze or smog is also a critical element of operating the NGS. Controlling these gasses has been a priority for CAP and the power plant owners for decades.   Click here for more information…

Greenhouse Gas Legislation Challenges
Proposed Greenhouse Gas legislation creates additional uncertainty over the future economic viability of NGS. In 2009, the House of Representatives passed the Waxman-Markey Bill, which would place an economy-wide cap on carbon emissions. The bill contains emission allowances for most electrical utilities that will reduce or delay the cost impact of the legislation for most utilities. Unfortunately, from the definition of eligible utilities, it appears that none of these allowances will be available for the CAP share of NGS.  Click here for more information…

Increased Power Costs Raise Water Rates
Substantial increases in power costs and detriments to station reliability could severely affect CAP water users, including Indian communities served by the CAP. The high cost could lead to CAP water rates two or three times higher than they would be otherwise.

Worse, it could make the Navajo station too expensive to operate and force it to close down. This would be an economic disaster for the Navajo and Hopi people.
CAP and others are urging EPA to propose and promulgate BART limits for NGS NOx emissions based on the low-NOx combustion technology, which satisfies the presumptive limit established by EPA’s rules.  Once all three units at NGS are retrofitted with this technology and operating at the lower emission rate, the remaining visibility impact of NGS’s NOx emissions, if any, may be evaluated and any additional control options may be assessed at that time. 

Learn more!
You will find many resources on this website that will help you to learn more about this issue and take action if necessary.  We will provide you with up to date information on meetings and events that concern this issue.  You can even sign up and we'll send updated meeting information to your email.  We've included resources to make it easier for you to contact your Senator or Representative to let them know what you think about this issue. 

We think that the more you learn about the issue, the more you'll see that our recommendation is a smart one.  And that's why we call it CAPSmartEnergy.