APS announces plans to build new natural gas plant west of Gila Bend

GILA BEND, AZ (AZFamily) — Arizona Public Service (APS) announced that a new natural gas facility will be built outside of the Valley, partially funded by large-energy companies.

On Thursday, APS announced plans to develop a natural gas plant west of Gila Bend. Utility officials said a “growth pays for growth” model will be implemented, where large energy facilities, like data centers, will pay for a phase of the project.

The site will be capable of adding up to 2,000 megawatts (MW) and meet demand from large energy facilities.

“Arizona’s energy needs are growing faster than at any time in our history,” said Jacob Tetlow, executive vice president and COO. “Additional natural gas generation is essential to support our existing customers and to begin addressing unprecedented requests from extra-large energy users, such as data centers. By pursuing a ‘growth pays for growth’ strategy, this project protects customers while supporting data centers needed for the U.S. to compete globally.”

Officials stress that phase two of the development will be fully paid for by high-energy users, not by existing APS residents or business customers. Large energy customers will sign long-term contracts covering capital costs.

“Phase 1 will support all customers, helping to meet spikes in demand – such as those on hot summer afternoons – and keeping electricity flowing when renewable power from solar and wind isn’t available,” Tetlow explained in a statement. “Phase 2 ensures that as Arizona continues to grow, we are relying on innovative solutions to help protect existing customers from the costs associated with expansion. Partnering with our extra-high load customers to maintain cost fairness is a part of our plan.”

The power plant is expected to bring hundreds of construction jobs to the Gila River area, Phase 1 is scheduled to begin serving customers by late 2030. No timeframe has been announced for Phase 2 of the project.

APS will host public open houses and and gather community feedback as part of the proposal. For more information, visit the project’s website.

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