Arizona Public Service, Salt River Project, and Tucson Electric Power are jointly conducting a siting review to identify potential locations for future nuclear power generation within the state, focusing notably on former coal plant sites. This preliminary study, guided by a phased industry screening process, aims to narrow a wide-ranging list of candidates to a preferred site within approximately six months.
Though the companies sought financial support from the U.S. Department of Energy to aid this initial planning phase, their funding request was declined. Despite this, the utilities have committed to continuing their collaboration and are pursuing alternative funding avenues to offset the costs of evaluating nuclear options. At this stage, they have not made any decisions regarding constructing a plant or selecting a reactor technology, with both small modular reactors and larger conventional designs still under consideration.
As Arizona experiences rapid population growth and rising economic activity, electricity demand has surged, reaching record peak levels in 2025 for each utility. This increase strengthens the case for long-term energy planning to provide reliable power especially during extreme heat events. Nuclear power’s appeal lies in its ability to deliver substantial electricity output with minimal air pollution. However, the industry remains cautious due to challenges including high capital costs, long development timelines, concerns over radioactive waste management, safety, and water consumption.
The current focus remains on site screening and data collection prior to any major commitment. If the study identifies viable locations, the utilities may proceed with an Early Site Permit application to the U.S. Nuclear Regulatory Commission. Community engagement will form a core part of this process, with planned public meetings near potential sites in late 2026 to inform residents and gather local feedback. Utilizing former coal plant locations could leverage existing infrastructure, but residents are expected to seek clear information on safety protocols, cost implications, environmental impact, and other project details.