Arizona Public Service Company Submits Service Agreement for Chimney Canyon Solar 1 LLC Interconnection Project

Strategic Insights -

The Arizona Public Service Company (APS) has submitted a document to the Federal Energy Regulatory Commission (FERC) detailing an Engineering and Procurement Agreement between APS and Chimney Canyon Solar 1 LLC (Chimney Canyon) for the interconnection of a 750 MW solar photovoltaic and battery energy storage system into the Cholla 500kV Switchyard. As part of this agreement, APS will conduct engineering activities and procure long-lead-time equipment prior to the execution of an Interconnection Agreement. The document outlines the terms of the agreement, including the recovery of project costs associated with advancing the interconnection project.

Key Takeaways:

  • The Arizona Public Service Company (APS) is a vertically-integrated public utility serving over one million retail electric customers in Arizona and participating in wholesale markets throughout the West.
  • APS is registered with the North American Electric Reliability Corporation (NERC) for compliance with the Electric Reliability Standards and performs 10 of the registered NERC functions.
  • Chimney Canyon Solar 1 LLC is seeking to interconnect a 750 MW solar photovoltaic and battery energy storage system into the Cholla 500kV Switchyard.
  • APS will conduct engineering activities and procure long-lead-time equipment prior to the execution of an Interconnection Agreement.
  • The agreement includes provisions for the recovery of project costs associated with advancing the interconnection project.
  • The APS provides transmission service pursuant to its Commission-approved Open Access Transmission Tariff ("OATT").
  • APS owns facilities used for the sale and transmission of electric energy in interstate commerce.
  • APS is authorized to sell wholesale power at both market-based rates (subject to certain restrictions) and cost-based rates.

Statistics:

  • APS serves more than one million retail electric customers in Arizona.
  • APS participates in wholesale markets throughout the West.
  • The innovative solar photovoltaic and battery energy storage system project will have a generating capacity of 750 MW.

Sources:

  • Arizona Public Service Company. (2025). Arizona Public Service Company Service Agreement No. 438. Retrieved from https://elibrary.ferc.gov
  • Federal Energy Regulatory Commission. (Regulations). 18 C.F.R. Part 35 (2024).