Arizona utilities Tucson Electric Power Company (TEP) and Arizona Public Service (APS) have filed 2026 Integrated Resource Plans outlining how they expect to supply electricity over the next 15 years. The plans include renewable energy and storage, alongside continued investment in fossil fuels. Both will be considered by the Arizona Corporation Commission for approval or rejection, and the public can submit comments.
APS’s plan includes more than 4,000 megawatts of planned gas capacity by 2041. Projects listed include the Desert Sun Power Plant and the Redhawk Expansion Project, which would involve building eight methane gas-fired turbines in Maricopa County. APS has also extended its coal supply contract for the Four Corners plant, moving its planned exit from 2031 to 2038.
The filing comes as APS is proposing a 14% rate increase in a separate case before the commission. The proposal would raise the average residential customer’s bill by about $240 per year.
TEP plans to convert units 1 and 2 at its Springerville plant from coal to gas by 2031, rather than retire them as previously proposed. The company still plans to leave its share of the Four Corners coal plant by 2031, but also proposes adding 300 megawatts of gas generation. TEP’s filing says it will not meet its earlier commitment to cut carbon emissions by 80% by 2035.
Sierra Club Grand Canyon Chapter director Sandy Bahr said the plans delay a shift away from coal and gas, and argued that utilities should prioritize economical choices for customers. She said a transition to clean energy is important for public health, the climate and household costs.
Sources: CleanTechnica.