Arizona utility companies, Tucson Electric Power (TEP) and Arizona Public Service (APS), have submitted their 2026 Integrated Resource Plans (IRPs), which outline energy procurement strategies for the next 15 years. Although the plans include renewable energy and energy storage projects, they show an intensive continued reliance on fossil fuels, sparking sharp criticism from environmental organizations.
Significant Expansion of Gas Capacity for APS
The plans for APS show a trend toward strengthening reliance on natural gas, as it intends to add more than 4,000 megawatts of gas generation capacity by 2041. These projects include the Desert Sun Power Plant and the Redhawk Expansion project, which involves building eight new gas turbines in Maricopa County.
Furthermore, the company has decided to extend the operation of the coal-fired Four Corners power plant until 2038, backtracking on its previous plan that aimed to close the plant in 2031. This expansion coincides with a proposal to raise tariffs by 14%, which could increase the average residential consumer's bill by about $240 annually.
TEP Shifts and Declining Carbon Goals
For its part, TEP has not abandoned coal completely as expected; instead of retiring units one and two at the Springerville power plant, the company proposed converting them to run on gas by 2031. TEP also plans to add 300 megawatts of new fossil gas generation and acknowledged in its current plan that it will not be able to achieve its previous goal of reducing carbon emissions by 80% by 2035.
What Does This Mean for Consumers and the Environment?
The importance of these developments lies in the direct repercussions on two levels:
- Economic Cost: Arizona already suffers from some of the highest electricity bills in the United States, and these plans keep consumers in a vicious cycle of high costs due to investment in expensive fossil fuel technologies instead of a full transition to renewable energy, which is less expensive in the long term.
- Environmental and Climate Impact: The expansion of gas and coal plants delays the transition toward solar and wind energy, which increases air pollution levels and makes it more difficult to achieve the carbon neutrality goals required to combat climate change.
The Sierra Club has criticized these plans, noting that utility companies appear to be protecting their own profits rather than making economic decisions that serve the interests of consumers and the environment.