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APS Announces Two-Phase 2,000-Megawatt Gas Plant Near Gila Bend

Phase 2 would be financed by extra‑high load customers so existing ratepayers are not charged.

Overview

  • Arizona Public Service says surging demand from data centers and AI is driving the need for new dispatchable generation.
  • The Desert Sun Power Plant would add up to 2,000 megawatts, roughly a quarter of APS’s recent peak and enough to power about 300,000 homes.
  • Construction is scheduled to start in 2028, with Phase 1 targeted to serve customers by late 2030 to backstop reliability when solar and wind are unavailable.
  • APS plans a ‘growth pays for growth’ model in which large users sign long‑term contracts to fund Phase 2, a proposal that will undergo regulatory review.
  • APS expects to source fuel from Texas via a planned 1,300‑mile Transwestern pipeline developed by Phillips 66 and Kinder Morgan from Borger to the Phoenix area.