PHOENIX and TUCSON – Arizona Public Service (APS), Salt River Project (SRP) and Tucson Electric Power (TEP) continue to work together to explore adding nuclear generation in Arizona, including through a preliminary siting study now underway.

New nuclear generation will take time to develop, which is why it’s essential that Arizona’s leading energy providers begin these initial steps now. APS, SRP and TEP are utilizing industry guidance to evaluate locations throughout Arizona, including sites that have been used for coal-fired power generation. The study will use a phased screening methodology to narrow down areas in the state to a short list of leading candidates, culminating with the selection of a preferred site.

As part of the site selection process, the energy providers will begin stakeholder engagement and community outreach, and plan to hold community meetings near potential nuclear generating sites in late 2026 to share information and seek feedback.

The siting study, which is expected to be completed within the next six months, is foundational to subsequent steps in the nuclear planning process. Once the study is complete, the energy providers will evaluate technical, financial and other factors before determining if they will develop an Early Site Permit (ESP) application. If an ESP application is pursued, the companies would then decide whether to submit the application to the U.S. Nuclear Regulatory Commission for approval.

APS, SRP and TEP recently received notice they were not awarded the U.S. Department of Energy grant they applied for in early 2025 to support this work. They will continue to work together to explore future funding opportunities to help mitigate the costs of evaluating potential new nuclear generation.

The joint nuclear exploration effort comes as Arizona’s electricity needs continue to rise, driven by population growth and economic expansion. APS, SRP and TEP all set peak-demand records in 2025, underscoring the need for continued long-term planning and reliable generation. The energy providers are working proactively to ensure the grid can keep pace with rising demand, while also ensuring safe, reliable and sustainable electricity for customers.

The companies have not made a final decision to build a new nuclear plant in Arizona, and no nuclear technology has been chosen for the potential project. Both small modular reactors and larger reactor designs remain under review. Any future project would depend on industry progress on cost and schedule predictability, supply chain development and financing considerations. In the long term, the companies will prioritize nuclear technologies that are commercially proven as reliable; have been safely and successfully deployed elsewhere; and are provided by suppliers with strong operational records and demonstrated commercial viability.

New nuclear generation opportunities will be discussed at an Arizona Corporation Commission workshop hosted by Commission Chairman Nick Myers and Commissioner René Lopez on Thursday, June 25, 2026. The workshop will bring together energy providers, policymakers and industry stakeholders to further discuss the role nuclear energy can play in resource planning.

General Information

Arizona Public Service: APS serves 1.5 million homes and businesses in 11 of Arizona’s 15 counties and is a leader in delivering reliable, affordable electricity in the Southwest. APS maintains a diverse range of energy resources, including nuclear from the Palo Verde Generating Station, natural gas, coal, solar, wind and energy storage – a mix that’s about 58% clean. With 140 years of experience serving Arizona, APS is the main subsidiary of Pinnacle West Capital Corp. (NYSE: PNW)

Salt River Project: SRP is a community-based, not-for-profit public power utility and the largest electricity provider in the greater Phoenix metropolitan area, serving about 1.2 million customers. SRP provides water to about 2.5 million Valley residents, delivering 260 billion gallons of water (800,000 acre-feet) each year, and manages a 13,000-square-mile watershed that includes an extensive system of reservoirs, wells, irrigation laterals, and 131 miles of canals.

Tucson Electric Power: TEP provides safe, reliable electric service to 457,000 customers in Southern Arizona and maintains one of the nation’s most reliable electric grids. For more than 130 years, TEP has invested in the energy infrastructure that powers homes, businesses, and community institutions while advancing toward a cleaner, more resilient energy future. Learn more at tep.com. TEP and its parent company, UNS Energy, are subsidiaries of Fortis Inc., a leader in the North American regulated electric and gas utility industry. For more information visit fortisinc.com.

Media Contacts:

APS: Alan Bunnell, alan.bunnell@aps.commailto:, 602-250-3376
SRP: Jennifer Schuricht, jennifer.schuricht@srpnet.com, 480-625-5070
TEP: Joseph Barrios, jbarrios@tep.com, 520-884-3725