By Arizona Public Service
Arizona Public Service has announced plans to develop a site west of Gila Bend capable of adding up to 2,000MW of reliable, flexible generation to the state’s energy portfolio.
The Desert Sun Power Plant will be a state-of-the-art natural gas facility designed to meet Arizona’s rapidly growing needs, support unprecedented demand from extra-large energy users and enhance integration of renewable energy resources – all while protecting affordability for residential and small business customers.
This two-phase project will support current customer growth through our competitive procurement process in Phase 1 and enable new extra-large customer investments via an innovative subscription model in Phase 2.
“Arizona’s energy needs are growing faster than at any time in our history,” said Jacob Tetlow, APS Executive VP and COO. “Additional natural gas generation is essential to support our existing customers and to begin addressing unprecedented requests from extra-large energy users, such as data centers. By pursuing a ‘growth pays for growth’ strategy, this project protects customers while supporting data centers needed for the U.S. to compete globally.”
The proposed subscription model ensures that Phase 2 would be paid for by the extra-large customers who would use it – not by existing residential or business customers. Extra-large users would sign long-term contracts covering the capital costs and assuming development risks.
By having extra-large energy users fund a portion of the plant’s capacity through long-term subscription agreements, APS can accelerate infrastructure development without shifting costs to existing customers.
“Phase 1 will support all customers, helping to meet spikes in demand – such as those on hot summer afternoons – and keeping electricity flowing when renewable power from solar and wind isn’t available,” Tetlow said. “Phase 2 ensures that as Arizona continues to grow, we are relying on innovative solutions to help protect existing customers from the costs associated with expansion. Partnering with our extra-high load customers to maintain cost fairness is a part of our plan.”
Economic and Community Impact
The Desert Sun Power Plant is expected to be a significant driver of economic growth in Arizona:
- Job creation: Hundreds of construction jobs along with a smaller number of long-term operational positions.
- Business partnerships: Collaboration with local suppliers, contractors and service providers.
- Tax revenue: Increased contributions to local and state tax bases.
APS will host public open houses, maintain a project website at aps.com/desertsun and gather community feedback as part of its proposal. The new plant will feature advanced emissions controls to meet federal and county air quality standards and will operate with higher efficiency to limit emissions output. (Source)
