Early Adopters: SRP Plans for a More Networked Future

While covering the AspenTech Optimize 2026 conference in Houston, I had the opportunity to speak with Chris Campbell, Senior Director of OT Service, Salt River Project, about his utility’s plans for integrating data centers, new projects, communications systems, electrification in Arizona and the IT/OT convergence. What follows is a transcript of our conversation.

Jeff Postelwait, T&D World Managing Editor: So, I guess, just what have you been hearing at the conference so far? Because I've been attending and listening, but I think you've probably been understanding it a little bit more than me. What are people talking about that catches your ear? 

Chris Campbell, Senior Director of OT Service, Salt River Project: Yeah, well, I think the first thing was, you know, there was a series of keynotes on Monday, and there was a very common theme that we're all facing a lot of the same challenges. And I know what I talked about then, which I've been hearing over and over, is that we have a challenge around system growth, unprecedented growth with data centers, and, in our case, advanced manufacturing. Semiconductors and things like that.

We are all trying to transition our energy portfolios to decarbonize. And so that's a big transition in how things work. We're seeing good transformation happen. How we operate the grid is differently than it used to be, and it's changing pretty rapidly. 

JP: Decentralizing. 

CC: Yeah, there's a lot of elements of that. Like with distributed energy. Now that customers are generating and electrification is impacted, we have more variability on the demand side as well as the supply side. We're constantly balancing the grid in real time. It's becoming more of a challenge. 

JP: How big a factor is electrification in Arizona? When I hear it, I think about California because they passed those policies on electrification in new construction. But there is a lot of electricity use in homes here.

CC: Yeah, and it's a factor. I think it's one that's going to grow over the years. You know, so obviously electric vehicles, I've lost track, but we're probably 75,000 electric vehicles in our service territory out of 3 million. So a little ways to go there. But we're also seeing more electrification on the industrial side. And that's going to continue. 

JP: Yeah, I've heard some people say electrification over time could be a bigger deal than AI or data centers. I mean, even with some of the big numbers that we're seeing predicted there. I've been doing some work with SRP before based on their wildfire mitigation strategies. And so I was thinking OT probably does a lot to support wildfire mitigation. Could you tell me a little bit about that? 

CC: Yeah, obviously there's a number of elements to a wildfire strategy. You know, you've got to detect, prevent, and respond. And so on the OT side, part of what we do is when there is risk, you know, there's some risk assessment that goes on, and when that risk is there, we will change how the system operates to mitigate some of that risk. And so an example is what we often do on our system is reclosing.

So if you have a fault, you'll trip. It will wait a second and then close back in. And the intent there is that if it was a momentary fault or something, then you can restore your customers much faster.

But the concern with wildfires is if you have a fault and then you close back in, you can still have a fault, and now you're creating more potential for ignition. 

JP: Would that also be like public service safety shutoffs at all or managing those? 

CC: Yeah, that's another level there. So when you get to a high threat and risk, then there will be public safety shutoffs. So we'll actually shut off parts of our system to really mitigate the risk of anything getting started. 

JP: That's a last resort. 

CC: Yeah, I hate to do that, you know, from a customer impact standpoint, but if the risk is high enough, that's an appropriate risk to take or appropriate mitigation.

JP: One of the projects I've seen SRP preparing to work on was the Marigold Energy Center. It includes natural gas, solar, batteries, transmission lines and a substation. Can you tell me a little bit about how that is rolling out? 

CC: One of the things that we're faced with is unprecedented growth. And I mentioned the transition of our energy system. And so as we plan that out, obviously renewables have a key factor in there. Storage is very important. But we also need some firm dispatchable energy, and so that's where the gas comes in.

And so, yeah, they're not considered, they are dispatchable, but they're only, they're intermittent, right? So, half the time you might be charging, and half the time you'll be using them as a source. So, they're not there 24 hours as needed all times of the day. But they do play a key role in shifting solar power that we have to our peak times when we need it the most, and that reduces costs and helps from that standpoint.

So they play a key role in that, but it takes a diverse set of portfolio to be able to do that. So, Marigold is one of our large installations we're developing that, as you mentioned, has all those sources there. It's also adjacent to transmission lines and gas transmission, and it's in an area that we can develop fairly economically.

JP: Getting back more into your realm of expertise here, can you tell me about how SRP has been sort of evolving its approach to OT recently? 

CC: Yeah, this is a really interesting topic because OT has been around for a long time. I mean, it's what we use to control the real-time operations of the system.

The technology is evolving very fast, and over time it's grown. It's become more integrated and more complex. And so our organizational perspective has had to change too from a very more fragmented, reactive perspective to more of an integrated, aligned, and strategic approach.

And part of that gets into IT/OT convergence because much of that technology has become more commoditized, and so we need to leverage the strengths of IT and OT together in order to be agile, effective, and then be more efficient too, which is we have a lot of affordability pressure that we need to do there too. So it's an evolution that's happening, and we're trying to stay in front of that. Is it drawing upon AI at all or machine learning technology? Yeah, I mean, that's a big factor.

It's another technology tool that happens to be a very flexible and powerful tool that we're all learning about and how we apply that. But that's part of what we're trying to do, making things more strategic and integrated, is that accessibility to data is more prevalent. We can address integrity of that data more effectively.

And then when you apply AI, you have more opportunity for success because that relies heavily on the quality and availability of that data. 

JP: One thing I've been kind of looking for as I've been here is the use cases for AI and utilities. Could you give me a more specific, on-the-ground example of how something like that would work? 

CC: Yeah, it's an interesting thing because I think that's what all utilities are wrestling with now is those use cases.

So we're actually conducting a use case assessment that's not complete to try to identify the highest value, most impactful things that we need to start working on now. And so I think the utilities, especially in the OT world, so that's more where I'm at, where it's real-time control, and so we're very conservative because of the criticality of it. So we're not going to turn it over to control functions yet.

That will probably come. But there's a lot that can be done around, so we kind of have a couple themes. One of them is operational decision support.

So it could be taking all of our operating practices that are documented procedures that we use in various situations and making that more accessible to operators, or managing a huge amount of data and alarms that are coming in to the operations center and starting to sort that through to understand what's the root cause and where do we need to focus. 

JP: Yeah, people here have been talking about the trouble alarms and how AI can manage that. You mentioned, though, a little bit of hesitancy from the OT side and handing things over to the machine. What would you need to know or what would you need to hear before you feel safe doing that? 

CC: Well, I think we need more experience with AI. We need to validate that the response is accurate. So there's very small margin there.

JP: Yeah, the hallucinations. 

CC: And much of our space is very deterministic. You know, it's a physics problem, right? So there's one outcome. And AI, depending on, you know, different flavors of AI, you know, that is used in different ways. And so it's just a risk issue if we don't really have a very clear understanding of how it's going to be used and we validate it and it's mature and bulletproof.

JP: Yeah, that would be good to know. Well, how does OT support the utility on things like asset management or new projects, maybe even like vegetation management? 

CC: You know, there's obviously a lot of data that comes out of real-time operations, which feeds our, you know, asset management programs and analytics, you know, predictive analysis of potential failures, things like that. 

JP: Signals coming in from the sensors.

CC: Yeah, and it's the performance of the system in real time. So we'll be able to see certain things that will dictate what we need to do from a maintenance perspective or otherwise. Vegetation management, I mean, we will, you know, there'll be some faults caused by vegetation and we'll be very responsive on that.

So it's not a huge player there, but things like predicting our cable faults and stuff. You know, we invest over $40 million a year replacing underground cable. So it helps prioritize where do we get the biggest bang for that buck, you know, by using all that operational data to drive those models.

JP: Yeah, that's a thing customers may not understand about undergrounding is the maintenance part of it. That's tricky. 

CC: Yeah, and SRP was an early adopter of the underground, you know, so from like the ‘60s to the ‘90s. We put in a lot and it was direct bearing. And then we realized in the ‘90s that that's probably not the best idea because the failure rates are higher. And so we switched to conduit, but now we have all this cable in there that we've been working for decades now to go back and replace, which is a painful process, but very critical to our reliability.

JP: Maybe people like PG&E are listening. With all the undergrounding work they do.

CC: Yeah, you hope. 

JP: Well, I wanted to shift a little bit and talk about just the amount of energy that's about to be under demand according to some of these studies. SRP put out an RFP in February to help it meet the growing energy demand. So how can your department and OT be leveraged at this time of increased demand for electricity? 

CC: Well, there's a few things there. So one is we're very much we manage all the planning models and stuff too.

So being able to forecast what's needed and understand the optimum mix of those resources is part of it. Then managing it, so the transformation of it, so as we get to more inverter-based resources, which are, that's how we connect, like, solar and wind and batteries, is different than our traditional rotating mass, which are generators that you have spinning and everything. And so it changes.

So to integrate those resources, we must operate the system differently. And situational awareness is important in how we do that. 

JP: Or even just things like managing storage.

CC: So storage is a really interesting resource because at times it's a load, at times it's a source, and other times it doesn't do anything or can be providing certain ancillary services like frequency control. 

JP: Intermittent, like you said. 

CC: So that's one that we've had to implement a lot of functionality in our OT systems to be able to effectively manage those resources.

JP: Looking at your CV, you've also worked in telecom and communication for utilities. So maybe could you tell me what SRP is doing with its networks or any advantages that it's realizing there? 

CC: Yeah, that's an interesting topic as well. So SRP had the foresight back in the 90s to deploy a fiber optic cable on our transmission system.

And that has been a tremendous asset because we have reliable high bandwidth communications that basically extend through probably about 95% of our system. And so that's evolved a lot over the years. The technology is pretty amazing there in what we're doing because now you can multiplex different wavelengths of light on a single pair of fibers and push amazing amounts of data through that.

So that has been very scalable. So those networks have continued to evolve. We have over the past 10 years, we started to deploy wireless networks across our service territory to support all the automation of the grid.

So that's been advancing quite a bit. What we're looking at next is replacing our meter infrastructure. 

JP: Your meter data management system? 

CC: Actually, the AMI system itself. We just recently replaced our meter data management. But we'll be approaching our third generation AMI system, which is all our revenue metering out there. And we're evaluating the potential to deploy a private LTE network, which is the same technology carriers run, but it would be done for utility private, you know, so that we have that resiliency of those networks.

And that would be a big step forward as far as supporting a lot of use cases at SRP for very robust communications. Three generations of AMI. 

JP: When did you first do AMI? 

CC: I think SRP started around 2004.

JP: Oh, okay. So very early. 

CC: You know, our history has been an early adopter of technology, which has been great. So we got started with that. And then in 2014, we went to our second generation. And now we're approaching, you know, an opportunity to move to a third generation for us.

JP: Pays to be early adopters, I guess. Well, affordability is on everybody's mind right now, not just for electricity. But does your job change at all in regard to delivering more affordable electricity? How does OT maybe have a hand on the ball with the affordability question? 

CC: Yeah, it's a big part of what we have to address. Because, you know, technology is growing, you know, within the utility to deal with a more complex grid. That growth brings more cost. And then the cost of technology itself is going up.

And so we're an inflationary factor on SRP's rates. But we're also, the application of technology is allowing us to be more efficient and optimize our energy resources and our work and everything else. So, you know, the hope is that the higher cost of technology is ultimately bringing a lower cost to operations that will help bring downward pressure on rates.

JP: Is there a way you think utilities can maybe better justify that technology expense to rate payers? Or is that like a marketing question? 

CC: That is, you know, no offense to our customers, but they want it all, right? So they want affordability, they want reliability, and they want sustainability. 

JP: For sure. That's my next question.

CC: And technology plays in there too. But those are sometimes opposing forces. So it's a matter, you know, we've done a lot of work, not just in my area, but to understand, you know, what's most important out of those things.

And how much do they tolerate one at the expense of the other? And that's challenging. 

JP: Yeah. It's the trifecta, sustainability, affordability, and reliability. So at the same time, people want energy, like you said, to be affordable as well as sustainable and clean. So how do you achieve that balance? How do you deliver sustainable energy while keeping the grid reliable? 

CC: From a corporate perspective, we do a lot of planning, right? So we're an early adopter of what we call an integrated system plan, not just an integrated resource plan. So it's looking at the whole ecosystem of distribution and customer programs and transmission, yeah, as well as generation.

And so that helps us try to get to the most optimum, you know, portfolio, which is, you know, our biggest capital expense today as things grow to meet all the growth. You know, from a technology perspective, you know, technology is an enabler of all those things. You know, there's also a cost to it.

So, again, we've got to balance that out. But it does enable us to be more efficient so we can drive costs down. It enables us to optimize the resources that we have today to optimize our costs.

It enables the transformation that's allowing for sustainability. It's also engaging with our customers. So, you know, one of the things with our grid transformation is that customers are now participating.

And so how do we provide the tools for them to participate in that ecosystem effectively and contribute their resources to the greater good?

JP: Or just think about electricity use at all. Well, this is Arizona we're talking about. So I was wondering how SRP manages its grid during the extremely hot and dry conditions that we've been seeing. What changes are those factors putting on your grid and how are you managing those? 

CC: That's obviously a lot of the bread and butter of what we do, especially in Arizona, dealing with our high heat and high air conditioning load. So much of what we do throughout the year is to prepare our system to get through the summer reliably and meet the needs. A lot of maintenance and overhauls and a lot of planning and building the right stuff so we have the tools that we need there.

Training our staff to be able to respond. There's a lot of things that we do for summer preparedness to allow that to happen. What's interesting is that climate change is creating some challenges there.

So we've had an unfortunate array of heat records over the last couple of years, which challenged not only our service territory, but the whole West, you know. And so resource adequacy becomes important to make sure that we have all the resources that we need to serve the load under all conditions. 

We're also entering markets. So Western markets are evolving. SRP will be entering the Southwest Power Pool with a day-ahead market in, I think, the fall of ‘27. So that allows us to leverage resource diversity from across the west.

So there's a lot. I mean, that's really kind of our core competency is to figure out how do we actually meet all the demands, you know, to our peak season. Cooling resources would be a good thing.

JP: Speaking of resources, SRP is co-owner of the Palo Verde Nuclear Plant, which is the most powerful nuclear plant west of the Mississippi, I think, right now. So how does your utility feel about the future of nuclear energy and maybe even, you know, getting in somewhat to some new nuclear technology? 

CC: Yeah, we definitely see that as one of the tools in the toolbox. I mean, obviously, it's that firm, dispatchable power that is so critical to reliability, and it's carbon-free.

So that's a huge part of our baseload today with Palo Verde. But we're working with APS and Tucson Electric on a coordinated effort to look at additional nuclear in the state. And then you look also, there's small modular reactors, which are evolving very quickly.

You know, they're not, they won't be a factor, you know, for the next decade or so. But at some point, they're going to be a tool in the tool belt as well. 

JP: Are you actively looking at that or just sort of watching it from afar? 

CC: Well, we have a goal for net zero carbon by 2050. So a lot of what we're doing now can get us partway there. That last 10 or 20 percent is the most difficult. So we are actively looking at, you know, nuclear or hydrogen, you know, or other technologies that are going to allow us to get there.

So we are planning for that. You know, because nuclear is a huge capital investment and it's a long runway, we're doing things now to make sure that we can shorten that path, especially for the more large reactor stuff now. But we'll be looking at that for other opportunities as well.

JP: All right. Well, before I let you go, is there anything else you wanted me to understand about SRP and its OT services or anything you've learned out here so far? 

CC: I definitely learned a lot out here. You know, I got to sit in on the executive forum that Aspen Tech hosted yesterday.

So I got to hear from a lot of my peers at utilities, and we're trying to solve a lot of the same problems. And technology is a key part of that, but technology can be a challenge itself. So having key partners like AspenTech is really important.

And we're trying to solve a lot of those problems together. So that's the beauty in the electric industry. We don't necessarily directly compete, so there's a lot more collaboration and leveraging, and I love that about the industry.

JP: Yeah, that's what makes these conventions kind of interesting. Well, thanks, Chris. I appreciate you answering a few questions.

CC: Yeah, I enjoyed the discussion.