Tucson Electric Power Company and Arizona Public Service submitted their Integrated Resource Plans on Friday, outlining energy procurement strategies for the next 15 years. Both utilities’ proposals incorporate renewable energy and storage components, yet maintain substantial commitments to fossil fuel infrastructure.
Arizona Public Service plans the most extensive gas expansion among state utilities, with over 4,000 megawatts of gas capacity additions projected through 2041. The utility’s fossil fuel projects include the Desert Sun Power Plant and the Redhawk Expansion Project, which would add eight new methane gas-fired generating turbines in Maricopa County. Additionally, APS extended its coal supply contract for the Four Corners coal plant, delaying retirement from a previously planned 2031 exit date to 2038. The utility is also seeking a 14 percent rate increase that would raise average residential bills by approximately $240 annually.
TEP’s plan involves converting coal units to gas at its Springerville plant by 2031 rather than retiring them, though the utility intends to exit its Four Corners coal stake by that same year. TEP will add 300 megawatts of new gas generation capacity. The utility previously committed to reducing carbon emissions 80 percent by 2035 but indicated in its current plan that this target will not be met.
Both utilities’ proposals require approval or rejection by the Arizona Corporation Commission. Members of the public may submit comments on the energy plans. Environmental advocates contend that the plans prioritize utility profitability over cost savings for ratepayers and delay necessary transitions to renewable energy sources.
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