Closing the Navajo Nation’s coal-fired utility plant in northeastern Arizona will save the Central Arizona Project millions of dollars.

At a Central Arizona Project board meeting last week, analysts predicted keeping the plant open, in any capacity, will cost millions more dollars. One estimate showed CAP could have saved $26 million last year if it had used natural gas instead of coal power.

Economists forecast closing the plant in 2019 will provide a savings for utility companies and avoid rate hikes for customers.

Currently, CAP and Salt River Project use the Navajo Generating Station power plant to pump water to uphill regions across the state, including Phoenix and Tucson.