Three major Arizona utilities are continuing their joint look at whether nuclear power could play a role in the state's future, despite the loss of a federal grant the companies had hoped would help support this early stage of planning.
What's happening?
According to a report from AZ Big Media, a siting review led by Arizona Public Service, Salt River Project, and Tucson Electric Power is examining possible Arizona locations for future nuclear development, including former coal plant sites.
Company officials say, as reported by the outlet, that the preliminary study has begun and should finish within about six months. Using industry guidance and a phased screening process, they plan to narrow a statewide list of options to a short list and then identify a preferred site.
The utilities said the U.S. Department of Energy did not approve the funding request they submitted in early 2025. Even without that award, the companies say they will keep working together and seek other sources of support to reduce the cost of evaluating possible nuclear projects, AZ Big Media reported.
The process remains in its earliest stages. The companies haven't decided to build a plant or selected a reactor design. Both small modular reactors and larger conventional reactors remain under consideration.
Why does it matter?
With Arizona adding residents and economic activity, the state's electricity demand continues to climb. APS, SRP, and TEP each recorded their highest peak demand in 2025, which the utilities cite as a sign that long-term planning for dependable power is becoming more important during rapid growth and extreme heat, AZ Big Media reported.
TCD Picks » EDF Spotlight
💡EDF's Vital Signs newsletter delivers stories about game-changing solutions close to home and around the world
Nuclear power is drawing renewed interest because it can generate large amounts of electricity with minimal air pollution.
At the same time, nuclear projects come with significant tradeoffs. New plants are often expensive and slow to build, and they raise longstanding concerns about radioactive waste, safety, and water use.
For now, the new nuclear generation in Arizona is still in its planning stage.
What's being done?
The companies behind the potential energy expansion are focused on screening sites and gathering information before making any larger commitment. If the study supports moving forward, the next step could be an Early Site Permit application, which would then be considered for submission to the U.S. Nuclear Regulatory Commission, according to AZ Big Media.
The utilities also reportedly said stakeholder engagement and community outreach will be part of the siting process. They plan to hold meetings near possible nuclear generation sites in late 2026 to share information and gather feedback from residents.
Some of the locations being weighed are in communities that previously hosted coal generation. Reusing those sites could allow a project to tap into existing power infrastructure, but local residents will likely want answers about safety, cost, water use, and what a new project could mean for the surrounding region.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
