Exploring New Nuclear in Arizona
Page summary
TEP is working with Arizona Public Service and Salt River Project to explore new nuclear options for Arizona to meet the state’s growing energy needs and support the utilities’ clean energy goals.
Today, nuclear energy generated by the Palo Verde Generating Station provides over a quarter of Arizona’s electricity. It has been a safe and reliable source of power for Arizonans for nearly 40 years.
TEP is joining Arizona Public Service and Salt River Project to explore the feasibility of adding nuclear generation in Arizona, including the formal evaluation of potential plant sites. TEP believes that advanced nuclear holds tremendous potential as part of a balanced and reliable resource mix to meet Arizona’s future energy needs and support our clean energy goal of net zero emissions by 2050.
Frequently Asked Questions
Why are you exploring a new nuclear plant in the state?
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. Nuclear resources can provide reliable, carbon-free energy 24 hours a day, seven days a week.
We are working collaboratively with our counterparts to explore the feasibility of building additional nuclear generation in Arizona, including the formal evaluation of potential plant sites.
What types of nuclear technology are being considered?
TEP, APS and SRP 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) or less 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.
Where will the new nuclear plant be located?
We will be utilizing industry guidance to evaluate sites throughout Arizona, including three existing coal generation station currently scheduled to close or cease coal operations. As part of the site selection process, the energy companies 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.
How will a new nuclear plant impact Arizona’s water availability?
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.
What will the utilities consider when deciding to build a new nuclear plant in Arizona?
We 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 and evaluating these and other factors.
What is an Early Site Permit (ESP)?
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 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 to 20 years.
What actions are the utilities taking now to prepare for a new nuclear plant?
The three energy companies are currently conducting pre-work for the ESP and expect to begin preparing the ESP application in the first quarter of 2027. The goal is to be ready to submit the ESP application in late 2028.
How will a new nuclear plant impact customer rates?
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. We 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. While our application for a U.S. Department of Energy grant, submitted in early 2025, was not successful, we remain committed to collaborating on future opportunities.
Estimated Timeline for Early Site Permit Application Development
- 2026: Site selection process, which includes stakeholder engagement, community outreach and community meetings (late 2026)
- 2027: A site is formally selected and the Early Site Permit application process begins
- 2028: Utilities decide whether to submit an ESP application to the Nuclear Regulatory Commission (NRC)
- 2030: NRC decision on ESP application, if submitted