Tucson Electric Power’s business is built on the investments we must make to provide safe, reliable service – investments that increasingly include clean energy resources.
Between 2025 and 2027, we’re adding 340 megawatts (MW) of new solar generation and 400 MW of four-hour battery storage. The first half of that storage system came online this summer, thanks to a $350 million investment that represents the largest cost we’re seeking to recover in our pending request for new, higher rates in late 2026.
In light of all this, it’s hard to believe anyone would say TEP refuses to invest in renewable energy. Yet we sometimes hear critics keep making that claim along with an equally implausible motive: that we won’t invest in clean energy because it’s cheaper than other alternatives.
The truth is that while renewables provide great value as part of a diverse energy mix, they require more upfront investment. Wind and solar power systems cost significantly more per MW than a new natural gas power plant, according to the most recent data from the U.S. Energy Information Administration (EIA). Moreover, they only provide energy part of the time, requiring utilities to build significantly more renewable capacity and pair them with storage or other resources to produce output that’s comparable to conventional generation.
A recent example: When TEP considered the best ways to replace two units at our coal-fired Springerville Generating Station, we determined that doing so with a new 750-MW natural gas-fired unit would cost about $1.5 billion. Providing comparable output with renewables would have required a 1,225 MW solar array plus 1,255 MW of four-hour battery storage at an eye-watering cost of $4.5 billion.
We ended up choosing a third option – converting the coal-fired units to run on natural gas – with much lower capital costs: about $200 million. In addition to promoting affordability, this option preserves local jobs and will help us maintain top-tier reliability.
Real-world energy needs typically aren’t considered in levelized cost comparisons that show renewables are cheaper than conventional alternatives. We don’t need to buy fuel for solar arrays and wind farms, helping to make their output affordable – but only when it’s available. That’s why TEP is working to integrate them with other, more reliable options that let us leverage their value.
The truth is that TEP needs a balanced energy mix to serve customers’ diverse energy needs. In more than 130 years of service, we’ve learned that clean and conventional energy resources work better together as part of an “all of the above” approach. It’s the best way to preserve reliable, affordable service as we work toward our environmental goals, including net zero carbon emissions by 2050.
Arizona Gov. Katie Hobbs acknowledged TEP’s clean energy leadership earlier this month at a ribbon cutting ceremony for our new battery storage system, named Roadrunner Reserve. “Tucson Electric Power has been an outstanding partner in making sure that Arizonans have the power that they need,” the governor said, “and the Roadrunner Reserve system is a prime example of their leadership and commitment to our shared future.”
We know these facts don’t sit comfortably with some folks who think “corporate utility” sounds like an insult. Critics may prefer a cartoonish vision of utilities represented by Mr. Burns from “The Simpsons,” the boss of a nuclear power plant who once hatched a scheme to block the sun. In reality, though, TEP is working to make the most of Southern Arizona’s abundant solar resource as part of a balanced energy mix that provides affordability and reliability for our customers.
Chris Norman is Vice President of Public Policy for Tucson Electric Power
