High-Tech Interconnect Project (HIP) FAQ

On March 23, 2021, Intel announced a $20 billion dollar expansion plan for the facility in Chandler. The expansion will see the construction of two new semiconductor fabrication facilities, or fabs, which will produce advanced semiconductor chips used in modern electronics. This has been reported to be the single largest investment ever made in the State of Arizona.

The investment will lead to the direct creation of 3,000 new high-tech, high-wage jobs and 3,000 construction jobs, while supporting an estimated 15,000 additional indirect jobs in our community.

To meet the increased demand, SRP will build a new 230kV substation on Intel's campus and new 230kV transmission lines connecting the Intel campus to Schrader and Henshaw Substations.

Intel needs to have the new facilities operational by Q3 2023. SRP must work quickly to develop plans, meet with various stakeholders and conduct a thorough public process to determine the appropriate plan to provide the level of service needed by Intel's in-service deadline.

Project components:

• New double-circuit 230kV transmission lines connecting the Intel Ocotillo campus to SRP's Schrader and Henshaw substations.
• New 230kV substation on Intel's campus
• See Project Map

Intel's expansion requirements are large in scale and require a direct connection to SRP's 230kV transmission network. Additional lines are required to connect Intel with two nearby 230kV sources at the existing Henshaw and Schrader substations. SRP's 69kV transmission system cannot deliver the capacity needed to meet Intel's demand.

In addition, smaller 69kV lines are more susceptible to service disruptions caused by blowing debris. These service disruptions can interrupt semiconductor manufacturing processes, damaging unfinished product. The proposed 230kV transmission lines offer a higher degree of reliability to match the increased scale of semiconductor production on Intel's campus. See transmission structure types that will be used for the overhead portions of this project.

Soon after SRP receives a CEC for the line, we will design the line within the certified corridor. At that time, SRP engineers will determine if an easement is needed across your property. If an easement is needed, SRP will hire an independent appraiser to value your property and the easement. You, as the property owner, will receive a copy of the appraisal report with an offer letter from SRP to purchase the easement.

There are many variables to consider in the valuation process. Since each home is different, an appraiser will have to take into account the home itself (e.g., square footage, age, condition, etc.) along with its characteristics (e.g., carport, two-or three-car garage, pool or no pool, lot size, etc.). The appraiser also will consider current market conditions of the neighborhood and its unique amenities (e.g., quality of schools, available retail shopping, restaurants, parks, other recreational amenities, ease of access via freeways and local streets, etc.).

Generally, transmission lines are not considered to be a material factor in the determination of property values. Given the number of variables to evaluate in the appraisal process, it would be inaccurate and misleading to give any specific response regarding the value of any specific property without an appraisal. If the appraiser determines that the presence of the easement on the parcel reduces the parcel's value, SRP will compensate the owner for this reduction in value. SRP compensates property owners only if an easement is needed across a specific parcel.

Intel's load is large enough to require a direct connection to SRP's 230kV transmission system. To provide that connection, SRP must build new transmission lines to the nearby Henshaw and Schrader Substations to serve Intel. There are not any upgrade alternatives that eliminate the need for these connections.

SRP sited the Price Road Corridor project based on Intel's ultimate load forecast at the time and the overall long-term needs of the area. Semiconductor shortages and other industry trends caused Intel to reassess manufacturing needs at its campus and increase its load forecast. Intel's load is large enough to require a direct connection to SRP's 230kV transmission system. To provide that connection, SRP must build transmission lines to the nearby Henshaw and Schrader Substations to serve Intel. SRP constructed the Henshaw Substation as part of the Price Road Corridor Project.

We start with end points - in this project those will be the Henshaw and Schrader substations, and the Intel campus. The proposed routes were selected by working with the City of Chandler to meet the City's preference to underground a significant portion of the transmission line, address conflicts with existing underground utilities, and ensure technical feasibility of the underground segments. The remaining overhead segments are located within areas that already have overhead transmission facilities or are commercial in nature. SRP will present potential locations for power lines and the receiving station in its application for a Certificate of Environmental Compatibility (CEC) submitted to the Arizona Power Plant and Transmission Line Siting Committee.

The Line Siting Committee will then make a recommendation regarding the project to the Arizona Corporation Commission (ACC) for its consideration. At an open meeting, the ACC will then issue a final decision whether to approve, modify or deny the CEC application for the project.

The Schrader Overhead Transition Corridor would consist of two 230 kV transmission lines to the Schrader Substation through overhead and underground interconnection options that include converting the existing single circuit Corbell to Schrader 230 kV alignment inside the Schrader Overhead Transition Corridor to a new double circuit alignment.

Schrader Overhead Transition Corridor: Two new overhead single-circuit 230 kV transmission lines would exit Schrader Substation; one along the south side (southern alignment) of the station and one along the north side (northern alignment). Constraints on the underground routing between Schrader Substation and Chandler Heights Road may require the proposed circuits to exit Schrader to the west or the east within the alignments described below:

• Southern Alignment – The 230 kV circuit (Circuit One) along the southern alignment would generally be located underground. Whether the circuit is exiting to the west or the east, SRP would place up to three overhead structures within the Schrader Overhead Transition Corridor to make the overhead 230 kV connection in the substation bay and transition to the underground line outside of the corridor.
• Northern Alignment – The 230 kV circuit along the northern alignment (Circuit Two) would exit the Schrader Substation to the west using the existing Corbell to Schrader 230 kV transmission line alignment approved in Decision No. 59791 as modified by Decision No. 60099 (Corbell to Schrader alignment). At the point where Circuit Two joins the Corbell to Schrader alignment, the two lines would be constructed as above ground, double-circuit 230 kV transmission lines on monopole structures. The new double-circuit 230 kV line would continue along the existing ROW for the Corbell to Schrader alignment within the Schrader Overhead Transition Corridor. The approval to co-locate Circuit Two with the Corbell to Schrader alignment as requested in this Application would amend Decision No. 59791 and Decision No. 60099 to authorize the reconstruction of the Corbell to Schrader alignment within the existing ROW as a double-circuit 230 kV transmission line inside the Schrader Overhead Transition Corridor. SRP would place additional overhead structures within the Schrader Overhead Transition Corridor to transition between the Corbell to Schrader alignment, the overhead 230 kV connection within the substation, and the underground transmission line segment.
• If the circuit exits Schrader Substation to the east within the northern alignment, SRP would place up to three overhead structures within the substation to make the overhead 230 kV connection in the substation bay and transition to the underground transmission line outside of the corridor, but would not use the Corbell to Schrader transmission alignment.

Electric and magnetic fields (EMF) are part of our everyday lives. They occur wherever there is a flow of electricity and everyone is exposed to EMF in modern society. All electric devices and lines – appliances, computers, wiring in homes and offices, power-lines – produce EMF. The earth also produces a strong natural static magnetic field. Electric fields result from electric voltage. These fields are measured in kilovolts per meter (kV/m). Magnetic fields result from the flow of electric current. The fields are measured in milliGauss (mG).

Read about EMF research, exposure levels, health effects and guidelines.

SRP is conducting a public process that includes LIVE ONLINE open house meetings and a virtual open house. Both the live online open houses and the virtual open house allow the public to provide valuable feedback to the project team prior to SRP filing an application with the Arizona Corporation Commission (ACC).

The outreach process will include a variety of mechanisms to inform the public about the status of the siting process and to solicit public input. SRP will meet with public officials representing the region, jurisdictional agencies, and key landowners and stakeholders. In addition, postcard mailings will be mailed to announce the Project and a Project website will be developed to allow members of the public to obtain information about the Project and view project updates. There is also a dedicated hotline to speak with someone directly about the project and SRP will use certain social media methods to inform the public about the open houses and opportunity to provide comment. SRP will continue to add information about the public process as open house dates and other information about the project becomes available.