Arizona utilities Tucson Electric Power Company and Arizona Public Service have filed their 2026 Integrated Resource Plans. These documents outline energy procurement strategies for the next 15 years, confirming continued investment in fossil fuel infrastructure alongside renewable energy and storage projects.
APS plans to add over 4,000 MW of gas capacity by 2041, including the Desert Sun Power Plant and the Redhawk Expansion Project in Maricopa County. The company also extended its coal supply contract for the Four Corners plant, shifting its exit date from 2031 to 2038. Additionally, APS has proposed a 14% rate hike, which would increase average residential bills by approximately $240 annually.
TEP intends to convert units 1 and 2 at its Springerville plant from coal to gas by 2031. While the utility plans to exit the Four Corners plant by 2031, it also aims to add 300 MW of new gas generation. Furthermore, TEP stated it will no longer meet its previous commitment to reduce carbon emissions by 80 percent by 2035.
Both energy plans are currently subject to public comment and require approval from the Arizona Corporation Commission. The Sierra Club has criticized these strategies, arguing that the utilities are prioritizing their financial interests over a transition to clean energy sources like wind and solar.
