Arizona utilities Tucson Electric Power Company and Arizona Public Service submitted their 15-year Integrated Resource Plans on Friday, detailing how they will source electricity through 2041. While both plans incorporate renewable energy and storage capacity, they maintain substantial commitments to fossil fuel infrastructure, particularly natural gas and coal.
Arizona Public Service has planned the most fossil gas capacity among state utilities, with over 4,000 megawatts of gas additions projected by 2041. The company’s gas initiatives include the Desert Sun Power Plant and the Redhawk Expansion Project in Maricopa County, which would involve eight new methane gas-fired turbines. Additionally, APS extended its coal supply contract for the Four Corners plant, pushing the facility’s closure from the previously planned 2031 to 2038. The utility has also filed a pending rate increase request with the Arizona Corporation Commission seeking a 14 percent hike that would raise average residential bills by approximately $240 annually.
Tucson Electric Power’s plan calls for converting coal units at its Springerville plant to gas by 2031 rather than retiring them as previously proposed. The company plans to divest from its Four Corners coal stake by 2031 while adding 300 megawatts of new gas generation capacity. TEP had previously committed to an 80 percent carbon emissions reduction by 2035 but states in the current plan it will not meet that target.
Both utilities’ plans are subject to public comment periods before proceeding to the Arizona Corporation Commission for approval or rejection. Environmental advocates have criticized the proposals for prioritizing utility financial interests over ratepayer savings and climate objectives.
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