In a bold move that could reshape Arizona’s energy landscape, the state’s three major electric power utilities—Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power (TEP)—have announced a collaborative effort to explore adding more nuclear power generation. This initiative, announced on February 5, could involve placing small modular reactors (SMRs) or constructing large reactor projects at the sites of retiring coal-fired power plants. The utilities are actively monitoring emerging nuclear technologies and assessing their potential to meet the state’s growing energy demands. This move is particularly significant given Arizona’s rapid energy demand growth and its commitment to a carbon-free future by 2050.
The collaboration is being led by APS, which will work with SRP and TEP to evaluate a wide range of possible locations, including several closed or soon-to-retire coal-fired power stations. This strategy aligns with a broader trend among U.S. utilities to leverage existing infrastructure at decommissioned power plant sites to add new generation resources, both thermal and renewable. Brian Cole, VP of Resource Management for APS, emphasized the early stages of this exploration, noting that the planning process is crucial given the significant time required for new nuclear generation. “We are in the early stages of exploring additional nuclear generation to help meet Arizona’s growing energy needs. Given our shared interest in supporting those needs, we are partnering with SRP and TEP. This exploration process will take a significant amount of time, so it is important to begin the planning now.”
The Palo Verde Generating Station, Arizona’s sole operating nuclear power plant, is a testament to the state’s nuclear capabilities. Located about 50 miles west of Phoenix, Palo Verde has three pressurized water reactors with a total generation capacity of about 4 GW. It is notable for being the only large nuclear power plant in the world not located near a major body of water, relying instead on wastewater and well water for cooling. This unique feature underscores the feasibility of nuclear power in arid regions, potentially influencing the development of new nuclear projects in Arizona and beyond.
Ted Geisler, president of APS, highlighted the importance of maintaining a diverse energy mix to ensure a reliable and affordable electric supply. “Energy demand in Arizona is increasing rapidly,” he said. “To ensure a reliable and affordable electric supply for our customers, we are committed to maintaining a diverse energy mix. While new nuclear generation would take more than a decade to develop, the planning and exploration of options must begin now. We are partnering with neighboring utilities to assess the feasibility of new nuclear generation, alongside other resources, to meet the state’s growing energy needs.”
The utilities have applied for a grant from the U.S. Department of Energy (DOE) to support a three-year site selection process and potential preparation of an early site permit application to the U.S. Nuclear Regulatory Commission. This grant, if approved, would be a critical first step in their collaborative effort. A preferred site could be chosen in the late 2020s, potentially enabling additional nuclear power to be operational in the early 2040s.
Jim Pratt, general manager and CEO of SRP, underscored the importance of exploring all options to meet the growing energy needs of the Phoenix metropolitan area affordably, reliably, and sustainably. “SRP is exploring all options to meet the growing energy needs of the Phoenix metropolitan area affordably, reliably and sustainably. We appreciate the collaboration with our neighboring utilities to help determine the role new nuclear generation could play in powering Arizona’s future,” he said.
Susan Gray, TEP president and CEO, echoed the sentiment, emphasizing the long-term benefits of new nuclear generation. “New nuclear generation could provide Arizona with reliable, around-the-clock carbon-free energy to power economic growth while helping us make progress toward a clean energy future,” she said. “We know the development timeline would be long, so it makes sense for our state’s energy providers to begin this preliminary evaluation as soon as possible.”
This collaborative effort by Arizona’s major utilities to explore nuclear power generation is a significant development in the energy sector. It signals a proactive approach to meeting future energy demands while addressing climate change concerns. The potential addition of SMRs or large reactor projects at retiring coal-fired power plant sites could not only leverage existing infrastructure but also pave the way for a more diverse and resilient energy mix. As the utilities move forward with their plans, the energy sector will be watching closely to see how this initiative unfolds and its potential impact on the broader energy landscape.
