Arizona Public Service (APS), Salt River Project (SRP) and Tucson Electric Power (TEP) are to consider the possibility of adding nuclear generation in Arizona. The three utilities have been monitoring emerging nuclear technologies and are evaluating their potential. APS, owner and operator of Palo Verde Generating Station, is leading the effort in collaboration with SRP and TEP to assess a range of possible locations, including sites of retiring coal plants.
Palo Verde comprises three Combustion Engineering pressurised water reactors, each originally 1,270 MWE but uprated to 1,400 MWe. The plant, which began operation in 1988, produces about 35% of the electricity generated in Arizona.
“Energy demand in Arizona is increasing rapidly,” said APS President Ted Geisler. “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 neighbouring utilities to assess the feasibility of new nuclear generation, alongside other resources, to meet the state’s growing energy needs.”
“SRP is exploring all options to meet the growing energy needs of the Phoenix metropolitan area affordably, reliably and sustainably,” said Jim Pratt, SRP CEO & General Manager. “We appreciate the collaboration with our neighbouring utilities to help determine the role new nuclear generation could play in powering Arizona’s future.” SRP is a community-based, not-for-profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area.
Susan Gray, TEP President & CEO said 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 added: “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.” TEP serves more than 450,000 customers in Southern Arizona. TEP and its Tucson, Arizona-based parent company, UNS Energy Corporation, are subsidiaries of Fortis Inc.
Siting work for additional nuclear would consider small modular reactors (SMRs) and potential large reactor projects. The utilities have applied for a grant from the US Department of Energy (DOE) to begin preliminary exploration of a potential site for additional nuclear energy for Arizona. The application has been submitted under the DOE Office of Clean Energy Demonstrations & Office of Nuclear Energy’s Generation III+ Small Modular Reactor programme announced in June 2024 with funding of up to $900m to support SMR deployment. Applications opened in October with a deadline of 17 January 2025. If approved, the grant would support a three-year site selection process and possible preparation of an early site permit application to the Nuclear Regulatory Commission.
The grant application is an initial step in a larger collaborative effort by the utilities to explore the possibility of adding nuclear energy in the state. This joint effort could see the selection of a preferred nuclear site in the late 2020s, at the earliest, potentially enabling additional nuclear to be in operation in the early 2040s.
In January, Tennessee Valley Authority (TVA) announced it was leading a bid for $800m under the programme. Other involved in the bid include Bechtel, BWX Technologies, Duke Energy, Electric Power Research Institute (EPRI), GE Hitachi Nuclear Energy, Indiana Michigan Power, Oak Ridge Associated Universities, North American Forgemasters, the State of Tennessee, Sargent & Lundy, and Scot Forge.
