The Arizona Corporation Commission (ACC) hosted a town hall meeting in Joseph City last Wednesday, April 27, regarding the closure of the Cholla Power Plant, which is projected to occur in 2025. Commissioners Anna Tovar and Jim O’Connor were present before an auditorium full of residents. The ACC represents the ratepayers and all requests by coal impacted communities and APS for compensation must be approved by the commission as the power plant closes.
Commissioner Tovar clarified that the commissioners could not answer questions nor comment due to requirements of the hearing but held the meeting to learn from the community and understand how the closure will affect them. “The commission is investigating how the commission and other entities can assist impacted communities in their transition following the planned plant closures. The commission is partially interested in transitional funding, repurposing of plants of facilities, and the benefits and impacts to rate payers,” stated Tovar.
Several community leaders spoke during the meeting, which begun with Kat Hansen giving the history of Joseph City, starting with its settlement by members of the Church of Latter-day Saints and how its sense of community and lineage persists to this day. She noted how Joseph City is the only one of four pioneer settlements to survive after being colonized in the area in the 1876.
“I want to honor our pioneer founders and heritage and ask that all those in the audience that are descended from our Joseph City pioneers if they could stand for a minute,” to which the majority of the 228 residents present stood. She went on to discuss the challenges and dedication of the community’s forefathers and how that strength of family, community and perseverance continues to this day with the residents of the community.
Joseph City Unified School District Business Manager Steve Mills also spoke in relation to how school funding will be affected. Mills explained that the Joseph City schools has approximately 450 students in total and is a town that values education. “Our schools are highly rated with amazing graduation rates and strong academic outcomes,” stated Mills, “In order to have stable, successful schools, you must have stable and sufficient funding.”
Mills explained that most funding for Arizona schools comes down to two things, the number of students and the assessed valuation of the property located within the district boundaries. “With the powerplant closure, we are expecting a decrease in our school district’s assessed valuation of about $100 million. Now that’s down 83% from the current assessed valuation of $120 million.” Mills went on to state that the district levies a voter approved tax to supplement maintenance and operation needs, which Arizona Public Service (APS) has paid 80% to 90% of. “The biggest share of it is used to pay for additional teachers and staff.”
Mills explained that with the powerplant closure that enrollment will likely decline as well as a large amount of the district’s tax base, which will most likely affect the quality of schools.
“We’re not asking you to solve our problems, what we are asking is that you consider approving upcoming proposals from the people of Joseph City for economic development assistance.” Mills stated that the economic development will need to help offset the 83% loss of assessed valuation.
Rusty Westover from the Joseph City Water System District board spoke as well, asking that the district be allowed to take over the wells used by APS. “Speaking for the entire board I would like to propose that we as a district request having the opportunity to assume the 14 deep water wells located south of the Little Colorado River that is now used to supply APS with the water needed.”
The district believes they are best suited for this task due to representing all of Joseph City and already operating two other wells in the community. “That water is very vital to our future,” stated Westover, also thanking APS for their help in the community.
Next to address the ACC was Fire Chief Rusty DeSpain with the Joseph City Fire District. Although the Fire District will not heavily be impacted by the powerplant leaving, APS does contribute approximately $35,000 in mutual aid service and training to the fire district’s $184,000 budget. DeSpain believes the number of volunteers will also be affected, as they have already lost 17 members in relation to the plant’s different phases that have shut down. DeSpain’s biggest concern is renewable energy companies who will not join the fire district, leaving all of its expenses on its citizens.
Gary Hansen with the city’s irrigation company asked APS to find a way to repurpose the powerplant to provide economic benefits, continue to provide electricity and water well maintenance at the Penzance location, as well as provide legal counsel during the transition of water rights back to the community.
Small business owner Larry Bushman represented the Chamber of Commerce and explained most local businesses expect a decrease in revenue due to the closure of the plant, although 70% of those businesses do not plan to relocate. Bushman stated this will affect surrounding areas as well, referencing an economic impact study by RealAZ, which stated approximately 520 jobs and $68.2 million in employee compensation will be lost in Navajo County due to the three plant closures in the area.
Bushman explained the need to invest in businesses and economic growth to survive. “We ask that the ACC be mindful of our resources and our assets and our community in future decisions. We also ask that future companies that may come into this area will be able to benefit our tax base.” He also implored that the ACC include the community in decisions in any way possible.
Community member Darren Hansen offered alternatives for providing for the demand for energy supply which will be missing once the plant is gone. These options included Wärtsilä engines and small modular reactors.
Hopi Tribal Chairman Timothy Nuvangyaoma voiced the support of repurposing the power plant’s location and testified to the struggles of dealing with power plant closure in his own community. “These concerns are real; we are living proof of that. It is our reality. Let’s make sure that we hear the works that are being brought to this meeting,” stated Nuvangyaoma.
After the speakers from the community presented to the ACC, numerous citizens also addressed the commissioners in relation to the powerplant’s closure.
The meeting concluded with Commissioner O’Connor relaying his impression of Joseph City and its community. “Kind of wish I lived here myself to tell you the truth,” he stated. Commissioner Tavor thanked those who attended and the ACC staff who help. “We are more than happy to help and facilitate the comments suggestions that you have. It’s super important to us.”
