Reports related to this article:
Plant(s): View 2 related plants in PECWeb
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Arizona Public Service Company (APS) (Phoenix, Arizona) plans to dramatically increase its capital expenditures (capex) over the 2020-2022 period, and a good bit of those investments will be made in carbon-free electric generation, company leaders told investors earlier this month.
APS, the principal subsidiary of Pinnacle West Capital Corporation (NYSE:PNW) (Phoenix, Arizona), is Arizona's largest electric utility measured by customers, serving about 1.3 million customers. Its capex is expected to total about $4.6 billion over the 2020-2022 period, a sizable increase over last year's $1.2 billion in capital outlays.
Click on the image at right to see a breakdown of APS' actual capex for 2019 and projected capex for 2020-2022.
APS plans to invest about $1.7 billion over the next three years in carbon-free generation. That works out to approximately 36% of the utility's overall capital spending between 2020 and 2022. The utility currently gets about 50% of its electricity from non-emitting sources, and earlier this year it announced a goal of becoming 100% carbon-free by 2050.
APS' largest single generation source is the Palo Verde Nuclear Power Station, a three-unit, 3,979-megawatt (MW) plant located west of Phoenix. APS owns 29.1% of Palo Verde and is the plant's operator.
In its January 2020 announcement, APS said its 2030 goal is to have a resource mix that is 65% carbon free, with 45% of its portfolio coming from renewable energy. APS also pledged to end all coal-fired generation by 2031, seven years sooner than previously projected.
Click on the image at right to see the stages of APS' pursuit of carbon-free electricity.
APS has stakes in two operating coal-fired power plants. It is the 100% owner of the Cholla Power Station, a 995-MW plant that is scheduled to close in January 2025. It also owns a 38% stake in the Four Corners Power Station in New Mexico, which is slated for retirement in 2031.
In a statement, Jeff Guldner, chairman and chief executive of APS, said: "We see incredible things ahead for Arizona and are excited to power our state's future with electricity that is 100% clean. We're starting from an energy mix that is 50% clean today, including energy efficiency and electricity from one of the nation's largest solar fleets and the country's most powerful carbon-free and clean energy resource--the Palo Verde Nuclear Power Station. We see incredible things ahead for Arizona and are excited to power our state's future with electricity that is 100% clean."
Last September, APS issued requests for proposals (RFPs) for up to 400 MWs of new renewable resources: up to 150 MWs of solar and up to 250 MWs of wind. The utility wanted the wind generation online by 2022. APS spokesperson Suzanne Trevino told Industrial Info that no decisions have been made yet on the proposals that were submitted. She said some of the new generation will be owned by APS and some will come from power purchase agreements (PPAs) negotiated with developers.
The utility also owns seven gas-fired generators totaling about 4,600 MWs of capacity. Trevino said there have been no decisions on early retirement for any of those units. But she did emphasize that APS is committed to lowering its carbon footprint in Arizona. The utility said it plans to rely on gas-fired generation over the next decade during its transition until technological advances make gas backup unnecessary.
In addition to renewable generation, APS is relying heavily on battery energy storage (BESS) projects in its quest for a carbon-free future. It is seeking about 850 MW of new storage projects. Last April, one of its operating lithium-ion storage units caught fire and exploded, sending four hazmat technicians from the Peoria, Arizona, Fire Department to the hospital with chemical burns. For more on that, see September 19, 2019, article - Battery Energy Storage Systems are Hot, and That Could be a Problem.
No final determination has been made as to the fire's cause, Trevino said in an interview, noting that the utility took its other battery storage unit offline after the fire. "We're still committed to bringing on about 850 MW of battery storage by 2025, but we're taking a pause and holding off bringing new installations online until the final report is issued," she said. "We still believe battery technology holds the key to a carbon-free electric future."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
APS, the principal subsidiary of Pinnacle West Capital Corporation (NYSE:PNW) (Phoenix, Arizona), is Arizona's largest electric utility measured by customers, serving about 1.3 million customers. Its capex is expected to total about $4.6 billion over the 2020-2022 period, a sizable increase over last year's $1.2 billion in capital outlays.
Click on the image at right to see a breakdown of APS' actual capex for 2019 and projected capex for 2020-2022.APS plans to invest about $1.7 billion over the next three years in carbon-free generation. That works out to approximately 36% of the utility's overall capital spending between 2020 and 2022. The utility currently gets about 50% of its electricity from non-emitting sources, and earlier this year it announced a goal of becoming 100% carbon-free by 2050.
APS' largest single generation source is the Palo Verde Nuclear Power Station, a three-unit, 3,979-megawatt (MW) plant located west of Phoenix. APS owns 29.1% of Palo Verde and is the plant's operator.
In its January 2020 announcement, APS said its 2030 goal is to have a resource mix that is 65% carbon free, with 45% of its portfolio coming from renewable energy. APS also pledged to end all coal-fired generation by 2031, seven years sooner than previously projected.
Click on the image at right to see the stages of APS' pursuit of carbon-free electricity.APS has stakes in two operating coal-fired power plants. It is the 100% owner of the Cholla Power Station, a 995-MW plant that is scheduled to close in January 2025. It also owns a 38% stake in the Four Corners Power Station in New Mexico, which is slated for retirement in 2031.
In a statement, Jeff Guldner, chairman and chief executive of APS, said: "We see incredible things ahead for Arizona and are excited to power our state's future with electricity that is 100% clean. We're starting from an energy mix that is 50% clean today, including energy efficiency and electricity from one of the nation's largest solar fleets and the country's most powerful carbon-free and clean energy resource--the Palo Verde Nuclear Power Station. We see incredible things ahead for Arizona and are excited to power our state's future with electricity that is 100% clean."
Last September, APS issued requests for proposals (RFPs) for up to 400 MWs of new renewable resources: up to 150 MWs of solar and up to 250 MWs of wind. The utility wanted the wind generation online by 2022. APS spokesperson Suzanne Trevino told Industrial Info that no decisions have been made yet on the proposals that were submitted. She said some of the new generation will be owned by APS and some will come from power purchase agreements (PPAs) negotiated with developers.
The utility also owns seven gas-fired generators totaling about 4,600 MWs of capacity. Trevino said there have been no decisions on early retirement for any of those units. But she did emphasize that APS is committed to lowering its carbon footprint in Arizona. The utility said it plans to rely on gas-fired generation over the next decade during its transition until technological advances make gas backup unnecessary.
In addition to renewable generation, APS is relying heavily on battery energy storage (BESS) projects in its quest for a carbon-free future. It is seeking about 850 MW of new storage projects. Last April, one of its operating lithium-ion storage units caught fire and exploded, sending four hazmat technicians from the Peoria, Arizona, Fire Department to the hospital with chemical burns. For more on that, see September 19, 2019, article - Battery Energy Storage Systems are Hot, and That Could be a Problem.
No final determination has been made as to the fire's cause, Trevino said in an interview, noting that the utility took its other battery storage unit offline after the fire. "We're still committed to bringing on about 850 MW of battery storage by 2025, but we're taking a pause and holding off bringing new installations online until the final report is issued," she said. "We still believe battery technology holds the key to a carbon-free electric future."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
