APS announced a new 2,000‑MW natural‑gas plant, the Desert Sun Power Plant, to be located west of Gila Bend, Arizona.
The plant will be built in two phases. Phase 1 will provide dispatchable power to all customers and is expected to begin operations in late 2030. Phase 2 will be funded by extra‑large customers through a subscription model, allowing the company to accelerate infrastructure without shifting costs to residential or small‑business customers.
The project aligns with Pinnacle West Capital’s $9.65 billion capital plan for 2024‑2027 and supports the company’s goal of 6‑8% rate‑base growth. It also positions APS to capture the growing demand from data centers, semiconductor, advanced manufacturing, and other large energy users in Arizona.
The plant will use advanced emissions controls and high‑efficiency technology, and will be supplied with natural gas via the Transwestern Pipeline’s Desert Southwest expansion, a $5.3 billion project expected to be in service by late 2029. The plant will provide flexible, dispatchable power to support the integration of intermittent renewable resources and maintain grid reliability during peak demand.
Management highlighted the “growth pays for growth” model, noting that the subscription‑based Phase 2 will help mitigate ratepayer concerns about infrastructure costs. The project reflects APS’s broader strategy to balance a clean energy transition with reliable, affordable power for all customers.
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