PNW · 10-Q · 2026Q2 · Full report
Generation Capacity Expansion
PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 40 · Surprise 42 · In source text
APS plans to add flexible natural-gas generation to support Arizona’s rapidly growing, around-the-clock electricity demand while continuing to evaluate nuclear, storage, solar, wind, and other resources. In July 2026, APS announced plans to convert two Cholla units to natural gas, adding approximately 380 MW, with construction contemplated for 2028 and targeted service in 2029; the plan remains subject to the 2025 ASRFP evaluation. APS also plans to add up to 2,000 MW of flexible natural-gas generation. In March 2026, APS announced its intent to renew all three Palo Verde operating licenses, potentially extending operations from the mid-2040s through the mid-2060s, and retains an aspirational goal of carbon neutrality by 2050.
Key facts
- In March 2026 APS announced its intention to renew the operating licenses for all three units at Palo Verde to extend operations from the mid-2040s through the mid-2060s. source
- In July 2026 APS announced plans to convert two units at Cholla to natural gas, adding approximately 380 MW of gas-fired generation. source
- APS performs an IRP every three years and expects to file its next IRP on October 30, 2026. source
- APS issued an ASRFP on November 19, 2025 seeking at least 1,000 MW of resources that can reach commercial operation between 2029 and 2031. source
- APS plans to add up to 2,000 MW of flexible natural gas generation to its portfolio. source
- APS issued an ASRFP on June 30, 2023 and procured 3,606 MW of battery storage, 517 MW of natural gas, 2,649 MW of solar, and 500 MW of wind expected to be in service from 2026 to 2028. source
- APS issued an ASRFP on November 20, 2024 and signed an amendment and extension to each of two existing gas tolling agreements, securing 600 MW under each agreement through 2038 and 2046, respectively. source
- Palo Verde generates more than 32 million MWh — enough power for roughly 3.4 million households, or approximately 8.5 million people. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | probable | — | In March 2026 APS announced its intention to renew the operating licenses for all three units at Palo Verde to extend operations from the… |
| assets | positive | probable | — | APS issued an ASRFP on November 19, 2025 seeking at least 1,000 MW of resources that can reach commercial operation between 2029 and 2031. |
| assets | positive | probable | — | APS plans to add up to 2,000 MW of flexible natural gas generation to its portfolio. |
| assets | positive | committed | — | APS issued an ASRFP on June 30, 2023 and procured 3,606 MW of battery storage, 517 MW of natural gas, 2,649 MW of solar, and 500 MW of… |
| liability | negative | committed | — | APS issued an ASRFP on November 20, 2024 and signed an amendment and extension to each of two existing gas tolling agreements, securing… |