Trans-Elect (Reston, Virginia) and the Dinè Power Authority (DPA) have signed an agreement to pursue the completion of the development and permitting of the Navajo Transmission Project (NTP).

The project is a 470-mile (756-km), 500-kV high-voltage transmission line originating in the Four Corners area of New Mexico, running across the Navajo Nation and terminating in Nevada, near Las Vegas. Trans-Elect's New Transmission Development Co. (NTD) and Dinè have been contacting and working with generators, utilities, regulators and regional ISOs to define the customer and revenue sources for the line.

The project, the largest transmission infrastructure project currently underway in the United States, is key to meeting increasing electric demand in the fast-growing southwest power markets, according to Bob Mitchell, president and COO of Trans-Elect's NTD. “The project is very important to the continuing growth of the Southwest markets as it increases system reliability and provides access to low-cost coal generation to the fast growing Arizona, Nevada and Southern California markets. This in turn offers the region and power suppliers a needed hedge against the huge growth in natural gas-fired generation in the Southwest,” Mitchell said.

Mitchell added that despite the fact that most companies are hesitant to make investments in transmission assets out of concern for the current health of the U.S. power markets, this is the time to push forward with key infra-structure projects, such as NTP, that have a long development lead time.

“Trans-Elect believes the robust growth in the southwest markets and Southern California will continue, and that the time is now for strengthening the transmission system to meet that growth,” he added.

Mitchell also said Trans-Elect's potential investment in NTP underscored its belief that the Federal Energy Regulatory Commission (FERC) is on track with its plan to create a competitive transmission market in the United States, capable of attracting the kind of investment dollars needed for NTP and other capital-intensive infrastructure projects.

“This is a critical project for Navajo Nation infrastructure development,” said Steven C. Begay, general manager of DPA. “NTP, connecting Four Corners generation to the Phoenix, Las Vegas and Southern California markets, will open up new opportunities for Navajo coal in the Four Corners area. At a time when our country strives for energy independence and energy security, Navajo coal resources offer an important asset, providing critical price stability to the western power markets.”

Under the agreement, Trans-Elect and DPA will complete a thorough due diligence on all aspects of the project and begin the process of identifying new sources of power, primarily coal-fired, that would make use of the new capacity. It is anticipated that all permits and right-of-ways could be completed, and construction initiated, in 12 to 16 months, once transmission line customers have made necessary and appropriate commitments.

DPA began development of the line back in 1992 and received the necessary Federal Environmental Impact Statement (EIS) for the line in 1997. For the most part, the approved route follows existing high-voltage transmission routes to minimize visual and environmental effects. With nearly all of the permitting work complete, and the federal EIS issued, DPA sought a partner to help it finish the permitting, complete the right-of-way work and initiate engineering and pre-construction activities consistent with the schedules of the transmission line's customers.
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