Exploring new nuclear in Arizona

Advanced nuclear holds tremendous potential as part of a balanced and reliable resource mix for meeting Arizona’s future energy needs and supporting the utilities’ clean energy goals. Arizona Public Service (APS), Salt River Project (SRP) and Tucson Electric Power (TEP) are working together to explore the feasibility of building additional nuclear generation in Arizona, including the formal evaluation of potential plant sites.

SRP, APS, and TEP have not committed to any specific nuclear technology and are evaluating small modular reactors (SMRs) and large reactor technologies.

SMRs are advanced nuclear reactors that are smaller than traditional nuclear power reactors, generating between 50 and 300 megawatts (MW) of energy per unit. For comparison, each unit at Palo Verde Generating Station, located west of Phoenix, can generate 1,400 MW.

The utilities will prioritize nuclear technologies that are commercially proven, have been safely and successfully deployed elsewhere, and are provided by suppliers with strong operational track records and demonstrated commercial viability.

SRP, APS and TEP will be utilizing industry guidance to evaluate sites throughout Arizona, including three existing coal generating station sites currently scheduled to close or cease coal operations.

As part of the site selection process, the utilities will conduct extensive stakeholder engagement and community outreach, including holding community meetings in potential locations for a nuclear generating site, to share information and seek feedback. These meetings are expected to take place in late 2026.

As stewards of one of the Phoenix metropolitan area’s largest water supplies, SRP prioritizes water resiliency across all aspects of its business. Water availability of any potential site and water use by different nuclear technologies will both be critical considerations in our decision to build a new nuclear plant in Arizona.

The utilities will consider several factors before deciding to build a new nuclear plant, including the feasibility of potential sites, safety, economic impacts, community support, advanced nuclear technologies and financing options. The preparation of an Early Site Permit (ESP) application will aid in identifying some of these factors.

An ESP will identify and help resolve safety and environmental-siting issues early to reduce regulatory and financial uncertainties – helping reduce risks associated with a decision to move beyond the planning phase for new additional nuclear.

An ESP does not require a specific reactor design to be selected. It establishes a technical envelope that the future nuclear power plant must satisfy, taking into account a variety of factors that include water-use, local seismic hazards and potential for site flooding. If granted, the ESP is valid for 10-20 years.

APS, SRP and TEP are currently conducting pre-work for the ESP and will start preparing the ESP application in the first quarter of 2027. The goal is to be ready to submit the ESP application in 2028.

Affordability for customers will be a major consideration in the decision to build a new nuclear plant in Arizona, and it’s too early to know what the cost impacts would be. The utilities are exploring federal funding opportunities, which were established in recognition of the strategic role nuclear energy plays in a reliable and secure energy future for the United States.