Arizona Public Service (APS) is responding to the state’s rapid population and business growth by using a varied mix of energy sources. The company relies on nuclear, natural gas, solar, wind, energy storage, coal, and demand management programs to maintain reliable electricity for customers across all seasons.
To plan for future needs, APS studies factors such as population growth, technology changes, and weather patterns. Every three years, the results are filed with the Arizona Corporation Commission through an Integrated Resource Plan (IRP). This process helps guide decisions on cost-effective and reliable energy sources.
APS also uses a competitive purchasing process to select new energy projects. Companies submit proposals for resources, and APS chooses those that offer the most reliability at the lowest cost. According to APS: “We also use a competitive purchasing process to guide our resource decisions. Companies offer resource options, and we use the information provided to help us select the projects that are the best fit and give you the most reliable power at the least cost.”
Natural gas remains a key part of APS’s strategy due to its ability to provide around-the-clock support. The utility notes challenges in bringing additional natural gas into Arizona because of pipeline limitations. To address this, APS and other regional utilities have secured agreements for supply via a new pipeline.
Nuclear energy is another focus area. As operator of Palo Verde Generating Station—one of the country’s largest nuclear plants—APS values clean nuclear power. The company is collaborating with Salt River Project (SRP) and Tucson Electric Power (TEP) to explore adding new nuclear generation in Arizona. “Now APS is working with SRP and TEP to explore adding new nuclear generation in Arizona,” APS stated.
The company is also evaluating whether it should continue operating its last coal plant—the Four Corners Power Plant—beyond its previously planned exit date of 2031 due to increasing demand from state growth. However, APS says any extension will not go beyond 2038 in line with lease agreements.
Currently about 54% of APS’s energy mix comes from clean sources such as solar, wind, and storage technologies. By 2026, APS plans to install 2,700 megawatts of large-scale storage capacity; by 2027 it aims to integrate over 6,000 megawatts from solar and wind projects.
As more people move into Arizona—and as commercial customers like data centers request more electricity—APS says it is working to ensure infrastructure costs are allocated fairly without affecting reliability or affordability for existing customers.
Customers interested in learning more about these initiatives can visit aps.com/resources.
