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Arizona Utilities Collaborate to Explore Nuclear Energy for Future Needs

Arizona utilities are exploring expansion of nuclear power generation.
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Arizona utilities are exploring expansion of nuclear power generation.

Phoenix, AZ – February 5, 2025 — Arizona’s three major utility companies—Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power (TEP)—have announced plans to explore the possibility of incorporating nuclear energy into the state’s power grid.

The utilities aim to evaluate emerging nuclear technologies to help address Arizona’s growing energy demands.

With energy demand in the state continuing to rise, APS, SRP, and TEP are assessing nuclear power as part of a broader strategy to diversify Arizona’s energy mix.

APS is leading the effort, working alongside SRP and TEP to evaluate the feasibility of new nuclear generation, particularly at the sites of retiring coal plants.

“Nuclear energy is an important part of a diverse energy mix,” said Ted Geisler, President of APS. “We are focused on ensuring a reliable and affordable energy supply for our customers. While new nuclear projects will take time to develop, starting the planning process now is important to address Arizona’s future energy needs.”

The utilities are considering two types of nuclear technologies: Small Modular Reactors (SMRs) and potential larger reactor projects. SMRs are smaller reactors, generating up to 300 megawatts (MW) per unit.

For comparison, Palo Verde Generating Station, located west of Phoenix, generates 1,400 MW per unit, enough to power around 220,000 homes.

“New nuclear generation could contribute to Arizona’s energy needs, providing reliable, carbon-free power around the clock,” said Susan Gray, President and CEO of TEP. “Given the long timelines for development, it’s important to begin evaluating these options now.”

The utilities have applied for a grant from the U.S. Department of Energy (DOE) to fund a preliminary exploration of potential nuclear sites in Arizona. If approved, the grant would support a three-year process to assess sites and possibly prepare an early site permit application to the U.S. Nuclear Regulatory Commission.

A Long-Term Approach to Energy

The potential for new nuclear generation in Arizona is still years away, with the earliest possible start for operations in the 2040s. The utilities expect to select a preferred nuclear site by the late 2020s, with operations potentially beginning in the early 2040s.

“As Arizona’s energy demand grows, we need to consider all options for meeting customer needs,” said Jim Pratt, General Manager and CEO of SRP. “This partnership will help us assess the role nuclear energy could play in Arizona’s energy future.”

APS, SRP, and TEP’s effort to explore nuclear energy is part of a broader effort to integrate renewable and clean energy resources into Arizona’s grid. APS, which serves about 1.4 million homes and businesses, has committed to achieving 100% clean power by 2050. SRP serves over 1 million customers in the Phoenix area, while TEP provides power to more than 450,000 customers in Southern Arizona.

While nuclear energy may be part of the solution, Arizona’s utilities say they are focused on ensuring a balanced, reliable, and sustainable energy future for their customers.

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