Arizona Public Service Announces Plans for 2,000 Megawatt Natural Gas Facility

Strategic Insights -

The Arizona Public Service (APS) has unveiled plans to develop a 2,000 megawatt natural gas facility, the Desert Sun Power Plant, to meet the state's growing energy demands. This project aims to support current customer growth through a competitive procurement process and enable new extra-large customer investments via an innovative subscription model. The facility will be designed to provide reliable, flexible generation to the state's energy portfolio, while protecting affordability for residential and small business customers.

Key Takeaways:

  • The Desert Sun Power Plant will have a capacity of up to 2,000 megawatts (MW) and will be a state-of-the-art natural gas facility.
  • The project will support current customer growth through Phase 1 and enable new extra-large customer investments via an innovative subscription model in Phase 2.
  • The proposed subscription model ensures that extra-large customers will fund a portion of the plant's capacity through long-term contracts, protecting existing customers from additional costs.
  • The facility will feature advanced emissions controls to meet federal and county air quality standards and will operate with higher efficiency to limit emissions output.
  • APS plans to supply the plant with natural gas via the proposed Transwestern Pipeline's Desert Southwest expansion project.
  • The project is expected to create hundreds of construction jobs, along with a smaller number of long-term operational positions.
  • The new plant will generate significant tax revenue for local and state governments.
  • APS will host public open houses and gather community feedback as part of its proposal.

Statistics:

  • The Desert Sun Power Plant will be capable of generating up to 2,000 MW of reliable, flexible generation.
  • APS plans to add nearly 7,300 MW of new resources to support Arizona's rapid growth and maintain service during high-demand conditions by 2028.
  • The facility will feature advanced emissions controls to meet federal and county air quality standards.
  • The project is expected to generate hundreds of construction jobs and a smaller number of long-term operational positions.
  • APS serves 1.4 million homes and businesses in 11 of Arizona's 15 counties.
  • The facility will be powered by natural gas supplied via the proposed Transwestern Pipeline's Desert Southwest expansion project.

Sources:

  • Arizona Public Service (APS)
  • BusinessWire - "Arizona Public Service Announces Plans for 2,000 Megawatt Natural Gas Facility" (published date not specified)
  • APS.com/desertsun (project website)
  • Local suppliers, contractors, and service providers
  • State and local tax authorities
  • Associated General Contractors of Arizona Chapter
  • Greater Phoenix Economic Council
  • Arizona House of Representatives Natural Resources, Energy and Water Committee
  • BusinessWire - "Arizona Public Service Announces Plans for 2,000 Megawatt Natural Gas Facility" (published date not specified)