Arizona public power utility Salt River Project on Aug. 6 was joined by Arizona Public Service, the City of Mesa, Arizona, Tucson Electric Power and UniSource Energy Services in announcing commitment plans for Transwestern Pipeline’s Desert Southwest expansion project.
This new natural gas pipeline will help maintain year-round regional energy reliability by transporting natural gas from the Permian Basin in West Texas to Arizona by late 2029 once construction is completed, they noted.
APS and SRP each reviewed multiple proposals and have independently executed agreements with Transwestern to provide customers with the best combination of reliability and affordability to meet future energy demand.
The agreements give the utilities priority delivery of low-cost natural gas to support Arizona’s rapid growth and the integration of clean energy technologies to the electric grid.
The City of Mesa, TEP and UniSource are finalizing negotiations with Transwestern.
TEP and UniSource expect to move forward with an agreement prior to the open season solicitation process later this year.
“Arizona’s energy needs are growing drastically, which is why it is so important for the state’s utilities to anticipate and prepare for the future,” said Kevin Thompson, Chairman of the Arizona Corporation Commission. “For years, Arizona residents and the state’s economy have benefitted from one of the most reliable energy grids in the country. I applaud APS, City of Mesa, SRP, TEP and UniSource for their commitment to maintaining this reliability and helping to secure Arizona’s energy dominance.”
With more people and businesses moving to Arizona, energy demand is rising at an unprecedented rate, and utilities are investing in infrastructure to serve this growth.
Today, all existing interstate pipelines serving Arizona are fully subscribed. There is sufficient natural gas supply in the Permian Basin, but additional pipelines are needed to serve Arizona power plants and maintain reliability in all seasons, SRP and the others noted.
On hot summer and cold winter days, the pipeline would fuel critical natural gas facilities "that boost the energy grid to help keep customers safe and comfortable, and businesses operating," a news release noted.
Each utility conducted its own thorough evaluation and negotiation process before identifying Transwestern Pipeline’s Desert Southwest expansion project as the top option for its customers.
"As the utilities continue to add cost-effective clean energy to their portfolios, natural gas is needed to maintain
strong reliability across the region including when solar and wind resources aren’t producing and battery energy storage isn’t available," the news release said.
“SRP is working to at least double the number of generating resources on its power system in the next 10 years to meet increasing energy demand in the Phoenix metropolitan area,” said Jim Pratt, SRP General Manager and CEO. “Natural gas resources play a key role in maintaining reliable and affordable power as we pursue an all-of-the-above approach that also includes adding wind, solar and storage to our energy mix.”
