Mitch Basefsky  520-419-8365

 CAP to Testify at Congressional Hearing Today

Central Arizona Project (CAP) Board of Directors President Pam Pickard and General Manager David Modeer will represent CAP today at a joint hearing of the U. S. House of Representatives Water and Power Subcommittee and the Indian and Alaska Native Affairs Subcommittee. Modeer is scheduled to testify at the hearing, and will provide information about CAP, Arizona's single largest resource for renewable Colorado River water supplies, and its relationship with the Navajo Generating Station (NGS).

"The future of the Navajo Generating Station is now uncertain," according to CAP Board President Pam Pickard. "EPA (US Environmental Protection Agency) is set to release new emission regulations for NGS this year. Their decision could cause NGS to close, significantly raising the cost of the Colorado River water we deliver to 80 percent of Arizona's population."

CAP relies on NGS for nearly all of its energy needs. The coal-fired Navajo plant was constructed as a dedicated source of electricity for CAP and provides very cost-effective power supplies. The EPA is seeking to improve visibility at a number of regional national parks and monuments by mandating controls on nitrogen oxide emissions at NGS. The plant owners have already installed effective controls at a cost of more than $45 million, but EPA favors a much more expensive technology that could cost more than $1 billion to install.

NGS faces other future uncertainties, including the renewal of land and water leases. Rather than risk a huge and potentially unrecoverable $1 billion investment, the NGS participants may consider closing the plant. CAP would then need to meet its energy needs through other means.

"It's important that Congress and the Obama Administration recognize the impact the EPA decision on NGS emission controls would have on CAP and its customers," stated Modeer prior to the hearing. "Developing and maintaining an affordable and reliable CAP water supply has transcended Arizona's partisan political divisions since the 1940s, and our state government and congressional delegation are once again unified in their desire to resolve this issue.

"We're grateful to these committees for the opportunity to provide more detailed information on the CAP/NGS interrelationship."

Copies of Mr. Modeer's testimony will be available following his presentation to the joint committee.