Trystan Casey
Arizona is a major energy hub in the southern United States, with a complex network of independently owned and operated power plants and transmission lines. The state has a regulated electricity market, with major retailers including Arizona Public Service, Salt River Project, and Tucson Electric Power. In addition, there are several smaller providers, such as Navopache Electric Cooperative and Duncan Valley Electric Cooperative, Inc. Arizona also has a strong solar power sector, with many companies offering installation services for solar panels and small electric plants.
| Characteristics | Values |
|---|---|
| Number of electric companies | Many, including Pinnacle West Capital, Navopache Electric Cooperative, Tucson Electric Power, Arizona Public Service, Salt River Project, and Duncan Valley Electric Cooperative, Inc. |
| Type of energy | Nuclear power, solar power |
| Size | Paolo Verde is the largest nuclear power plant by net generation |
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What You'll Learn
Major retailers: Arizona Public Service, Tucson Electric Power, and Salt River Project
Arizona is served by several electric companies, with the major retailers being Arizona Public Service (APS), Tucson Electric Power (TEP), and Salt River Project (SRP). Each of these companies plays a significant role in powering the state and offers unique services and initiatives to its customers and communities.
Arizona Public Service (APS) is one of the major electric utilities in Arizona. APS is committed to community development and environmental initiatives. For over 20 years, APS has provided grants to non-profit organizations in various fields, including arts and culture, community development, education, and the environment. One notable program is the APS Community Tree Program, which provides grant funding for community-based tree-planting projects in high-need areas within its service territory. APS also prioritizes technological advancements, such as implementing AI smoke-detection cameras to aid in early wildfire detection and enhance emergency response capabilities.
Tucson Electric Power (TEP) is another key electricity provider in Arizona, specifically serving the residents of Tucson. TEP is focused on providing safe, reliable, and affordable power to its customers. They offer a range of incentivized programs to help Tucson residents reduce their energy costs and build a more sustainable future. TEP is working towards achieving net-zero carbon emissions by 2050 while maintaining the affordability and reliability of its energy services. To achieve this, they encourage customers to make small shifts in their energy usage, allowing TEP to provide a more reliable and sustainable electric service.
Salt River Project (SRP) is an electric power and water utility company serving Arizona. While specific details about SRP's offerings are scarce, they appear to provide services for commercial electrical projects, residential solar contractors, and commercial solar installers. SRP also emphasizes community support, diversity, equity, and inclusion initiatives, as well as educational programs for students and educators.
Each of these major retailers contributes to the diverse energy landscape of Arizona, offering unique services, initiatives, and programs to benefit their customers and communities. While APS and TEP have a stronger online presence with more detailed information about their offerings, SRP's focus on community support and renewable energy solutions aligns with the overall trend of Arizona's energy sector.
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Regulated electricity market
Arizona has a regulated electricity market, which means that consumers may not have a choice in buying electricity. In a regulated market, vertically integrated monopoly utilities cover the entire value chain with oversight from a public regulator. The utility ensures that power is generated, sent to the grid, and reaches customers. Arizona's major retailers of electricity are Arizona Public Service, Salt River Project, and Tucson Electric Power. Arizona Public Service is the largest electricity provider in the state.
In regulated markets, customers cannot choose their power generator and are bound to the utility in their area. They pay their local utility directly for the electricity provided, regardless of the cost. As of 2025, nearly half of US states have introduced some degree of energy deregulation, allowing homes and businesses within their borders to choose their energy suppliers.
Deregulated markets have opened up generation to competition from independent power producers in 24 states, including California, Texas, and most states in the Northeast. In these markets, the buying and selling of electricity are not monopolized and controlled by a single utility. Arizona is not currently deregulated, but laws promoting deregulation are constantly being updated and introduced.
The state is a major energy center in the southern United States, with the largest nuclear power plant by net generation, Paolo Verde, located near Phoenix. Arizona also has many small solar plants that combine to produce a large percentage of the state's electricity. The Arizona Power Transmission System is a complex network of independently owned and operated power plants and transmission lines. Despite favorable climatic conditions, the share of renewable energy in Arizona's total electricity production is relatively small.
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Largest nuclear power plant: Paolo Verde
Arizona is a major energy centre in the southern United States. The state's largest power plant and largest nuclear power plant by net generation is the Palo Verde Nuclear Generating Station, located not far from Phoenix. In 2023, Palo Verde accounted for 4% of the nation's nuclear generation and about 27% of Arizona's total net generation from all sources. The plant's three operating reactors supplied enough power for more than 4 million people, generating over 32 million megawatt-hours annually. This made Palo Verde the nation's largest source of clean-air energy and the largest power producer of any kind for over 25 years.
Palo Verde is unique among nuclear plants in that it is not located on a body of water. Instead, it recycles over 20 billion gallons of wastewater from surrounding municipalities to cool the plant each year. The plant is also a critical asset to the Southwest, providing an annual economic impact of over $2 billion through taxes, salaries, material and service purchases, and more.
Palo Verde has been at the forefront of various initiatives. It has helped establish West-MEC Southwest, a campus that provides training and education for a new generation of utility workers, particularly nuclear plant workers. Palo Verde operators are also participating in a pilot program with Idaho National Labs to develop the "control room of the future," which involves exploring the use of modern technologies such as touch screens to maximize efficiencies.
Arizona's power plants typically generate more electricity than the state consumes, and about one-fifth of the electricity generated in-state is sent over the regional grid to consumers outside of Arizona. The state ranks among the top five in the nation in total solar-powered generating capacity from both utility- and small-scale installations, with more than 6,100 megawatts.
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Solar power: small plants and installations
Arizona is a leader in solar power, with many electric companies offering solar panel and small electric plant installation services. The state's solar capacity is impressive, with a combination of large-scale solar plants and smaller installations contributing to its renewable energy goals.
One notable example is the CO Bar Solar project, a partnership between the Tempe-based non-profit utility SRP and the solar developer Clēnera. This project, located on 2,400 acres of private land in Coconino County, is expected to deliver 400 MW of renewable energy to Arizona by 2024. SRP is committed to decarbonization and has set ambitious targets to reduce carbon intensity by 65% in 2035 and 90% in 2050, relative to 2005 levels. Their solar capacity includes three sustainable energy plants, two solar-plus-battery projects, and three additional plants to support Facebook's data center in Mesa, serving their small business customers.
Arizona's solar landscape is diverse, with the Arizona Solar Business Directory listing nearly 100 solar installation companies. The state's favourable climate and policies like net metering have made it an attractive solar energy hub. The Arizona Corporation Commission (ACC) plays a pivotal role in regulating electricity rates and services, setting renewable energy standards, and advocating for solar-friendly policies.
The state's first commercial solar power system was a 95 kW single-axis tracking photovoltaic plant in Flagstaff, opened in October 1997 and operated by Arizona Public Service (APS). In 2012, Arizona had 1,106 MW of photovoltaic (PV) solar power and 6 MW of concentrated solar power (CSP), totalling over 1,112 MW of solar power capacity. The Solana Generating Station, commissioned in 2013, is a notable example of a large-scale solar plant with a capacity of 280 MW, making it the largest parabolic trough plant in the world at the time.
In addition to large-scale plants, Arizona also boasts impressive rooftop solar installations. In 2015, the state had 642 MW of rooftop solar, and companies like Intel, Apple, and Paypal have embraced solar energy for their operations in the state. Intel's 129 MW East Line Solar project in Coolidge is the largest corporate solar project in Arizona. The state's renewable energy portfolio is expected to expand further, with projects like Saint Solar in Coolidge, contributing a capacity of 135 MW to the grid.
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Best utilities companies to work for: Pinnacle West Capital, Tucson Electric Power, and more
Arizona is a major energy centre in the southern United States. The state's hot climate, warm winters, and relatively few large industries mean that it ranks fifth from the bottom in specific energy consumption per capita. Arizona's largest electricity retailers include Arizona Public Service, Salt River Project, and Tucson Electric Power.
Pinnacle West Capital
Pinnacle West Capital is an investor-owned electric utility holding company based in Phoenix, Arizona. It has been providing energy and energy-related products to communities and businesses throughout Arizona for over 125 years and has consolidated assets of about $17 billion. The company has between 100 and 500 employees.
Tucson Electric Power
Tucson Electric Power provides safe and reliable power to over 417,000 customers in the Tucson metropolitan area. The company offers a wide range of incentivized programs to help customers reduce their energy costs and build a better future.
Arizona Public Service (APS)
APS is Arizona's largest and longest-serving electric company, generating safe, affordable, and reliable electricity for more than 1.2 million retail and residential customers in 11 of Arizona's 15 counties. By 2030, they expect to add 700,000 new customers. APS has a highly diverse workforce and is considered an upbeat place to work.
Salt River Project (SRP)
SRP is an agency of the state of Arizona that provides electrical services for the Phoenix metropolitan area and primary water for much of central Arizona. It is the umbrella name for two separate entities: the Salt River Project Agricultural Improvement and Power District. SRP has a workforce of between 1,000 and 10,000 employees and has over a billion dollars in reported revenue. The company offers awesome benefits, a relaxed culture, and a flexible schedule.
Other notable utilities companies in Arizona include:
- VSS Security Services: One of the largest security guard companies in Arizona, established in 1988.
- Global Water: A company that reclaims and reuses residential wastewater, providing water for residential and commercial uses without making additional demands on natural aquifers.
- Navopache Electric Cooperative: A nonprofit membership corporation serving over 35,300 members with over 43,350 meters across the White Mountains of eastern Arizona and western.
- Duncan Valley Electric Cooperative, Inc.
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Frequently asked questions
There are several electric companies in Arizona, with the major retailers being Arizona Public Service, Salt River Project, and Tucson Electric Power.
Arizona Public Service is the largest electricity provider in the state.
Arizona has a regulated electricity market, and consumers may not always have a choice when buying electricity. The state is known for its solar energy, with many small solar plants producing a large percentage of the electricity. Arizona is also home to the largest nuclear power plant by net generation, the Paolo Verde.
