Projects overview
SRP has an obligation to ensure a reliable and affordable source of electricity for residential, business and industrial customers. To meet the growing needs of SRP's customers, we are planning new generation resources.
SRP has identified the need for 2,500 megawatts (MW) of new summer peaking and intermediate generation to meet electricity demands through 2022. We are evaluating a number of options to meet this need and will most likely adopt a multi-faceted approach.
The first step is SRP's power purchase agreement for the output of the proposed TransCanada project near Coolidge, which will, assuming that the plant is approved and built, meet approximately 500 MW of the 2500 MW summer need.
The next steps will be to purchase additional output from others and/or build new generation at new or existing SRP sites, as may be determined through SRP's evaluative process.
Selected sites for generating facilities
SRP has selected two sites in Pinal County, as depicted in the map below:
- The "Abel" site is adjacent to the SRP Abel Substation north of Florence
- The "Pinal Central" site is adjacent to the Pinal Central Substation south of Coolidge.
A third site was considered, near Eloy. While the Eloy site is a good one, SRP decided to proceed with Pinal Central and Abel based upon economic criteria and public acceptance of the Abel and Pinal Central sites. A third site near Eloy could be pursued at a later time.
How SRP selected the sites
SRP selected the sites though a comprehensive siting study. The proposed sites offer the necessary access to transmission lines and natural gas resources, and generally meet the siting criteria of the study.
The sites identified for possible power plant development are near the communities of Florence, the Gila River Indian Community, Queen Creek, Coolidge and Casa Grande.
The proposed sites are located adjacent to industrially zoned land or major electrical facilities. SRP anticipates between 160 and 200 acres of land will be adequate to address the needs of the projects.
The electricity produced by any SRP generation is used to meet our customers' electricity needs, including our customers in Pinal County.
There are no other participants in the proposed projects at this time. SRP and the members of the Southwest Public Power Resources Group (SPPR Group) are discussing possible joint ownership in the Pinal Central plant. SPPR participants are not-for-profit electric utilities in Arizona, including cooperatives, municipalities, tribal power authorities, and irrigation and electrical districts.
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Permitting process and construction schedule
We anticipate beginning the permitting process this fall. Prior to construction, each project will complete the process to receive a state Certification of Environmental Compatibility that must be obtained from the Arizona Power Plant and Transmission Line Siting Committee and the Arizona Corporation Commission.
Multiple environmental requirements apply to the construction and operation of such a facility. The two most significant permits are the air quality permit and the Aquifer Protection Permit. The air quality permit is issued by the Pinal County Air Quality Department, and the Aquifer Protection Permit is issued by the Arizona Department of Environmental Quality. There are public comment periods in both instances.
The Abel site will be developed as an approximately 850MW simple-cycle peaking plant consisting of seven to eight natural-gas-fired turbines. The plant will be constructed in phases, to match load growth as the economy recovers. Initial capacity of up to 400MW will be operational in 2012 and additional capacity will be added as needed, with the full 850MW output operational by 2016.
The Pinal Central site will be developed as determined by resource need between 2014 and 2020.
System benefits
There are two benefits to these sites. The first is that they are either in or close to the southeast portion of SRP's load center. The proximity to SRP customers avoids long transmission lines.
The second is that the electric system needs some generation that is local to the load to provide necessary voltage support. Each of these sites provides some voltage support. The Abel site is particularly valuable in this regard, as it is located within the SRP load center.
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