Arizona Public Service (APS) expects demand for electricity to double within 15 years. Under its new resource plan, natural gas will remain an important source of power.
On Oct. 30, APS filed its 2026 Integrated Resource Plan with the Arizona Corporation Commission, the state commission that oversees public utilities. The plan is a 15-year forecast of how the company intends to supply customers with electricity. The growth in demand is driven mainly by data centers and large industrial facilities.
The company estimates that peak demand in 2041 will exceed 14.5 GW. The current record is about 9.2 GW, set in August. Annual retail sales are projected to rise from about 34,200 GWh in 2025 to about 80,600 GWh in 2041, according to Utility Dive.
According to KJZZ, APS plans to nearly double its gas-fired generating capacity within a decade, adding nearly 4,000 megawatts. Another 2,700 megawatts of battery storage would also be added to the grid. The radio station also reports that the Four Corners power plant could operate longer than previously assumed. Utility Dive writes of a planned extension of coal use through 2038.
Mike Eugenis, APS director of resource planning, stressed that reliability is an absolute requirement. According to KJZZ, the largest customers driving the growth need power around the clock, every day. APS still aims to reach carbon neutrality in about 25 years, but acknowledges that unprecedented demand makes that task harder. The proposal comes a year after the company dropped its goal of 100% clean energy by 2050.
Environmental groups are criticizing the plan. A representative of one of them, Bowman, said APS did not sufficiently consider the potential of rooftop solar panels, energy storage and other distributed resources. APS cautions that the forecast is a guideline, not a final design. The plan will now go to regulators for review.
Source: KJZZ
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