Arizona Public Service (APS), Salt River Project (SRP) and Tucson Electric Power (TEP) continue to work together to explore adding nuclear generation in Arizona, including a preliminary siting study, according to a press release by SRP.

“New nuclear generation will take time to develop, which is why it’s essential that Arizona’s leading energy providers begin these initial steps now,” according to the release.

APS, SRP and TEP are evaluating locations throughout Arizona, including sites that have been used for coal-fired power generation. The study will use a phased screening methodology to narrow down areas in the state to a short list of leading candidates, culminating with the selection of a preferred site.  

As part of the site selection process, the energy providers will begin stakeholder engagement and community outreach, and plan to hold community meetings near potential nuclear generating sites in late 2026 to share information and seek feedback. 

APS and SRP are among the co-owners of Palo Verde Generating Station, which at a nameplate capacity of nearly 4 GW is the second most powerful nuclear power plant in the United States. That plant provides a quarter of Arizona’s electricity. TEP teamed up with APS and SRP previously when it requested Energy Department grant money to explore new nuclear generation in Arizona.

“Nuclear offers around-the-clock power, it doesn’t produce any carbon emissions, and it’s also reliable so those are some of the reasons why it’s something we’re exploring,” said TEP spokesperson Joseph Barrios told Tucson’s 13 News in early 2025.

APS, SRP and TEP recently received notice they were not awarded the DOE grant they applied for to support this work. They will continue to work together to explore future funding opportunities to help mitigate the costs of evaluating potential new nuclear generation.

The siting study, which is expected to be completed within the next six months, is foundational to subsequent steps in the nuclear planning process. Once the study is complete, the energy providers will evaluate technical, financial and other factors before determining if they will develop an Early Site Permit (ESP) application. If an ESP application is pursued, the companies would then decide whether to submit the application to the U.S. Nuclear Regulatory Commission for approval.

The joint nuclear exploration effort comes as Arizona’s electricity needs continue to rise, driven by population growth and economic expansion. APS, SRP and TEP all set peak-demand records in 2025, underscoring the need for continued long-term planning and reliable generation.

The companies have not made a final decision to build a new nuclear plant in Arizona, and no nuclear technology has been chosen for the potential project. Both small modular reactors and larger reactor designs remain under review. Any future project would depend on industry progress on cost and schedule predictability, supply chain development and financing considerations.

New nuclear generation opportunities will be discussed at an Arizona Corporation Commission workshop hosted by Commission Chairman Nick Myers and Commissioner René Lopez on Thursday, June 25, 2026. The workshop will bring together energy providers, policymakers and industry stakeholders to further discuss the role nuclear energy can play in resource planning.