There appears to be broad, bipartisan support for new nuclear energy projects in Arizona as demand on the state’s energy grid continues to grow.
Arizona elected officials from both parties and from multiple areas of government expressed interest in expanding the state’s energy portfolio to include more nuclear energy at an Arizona Corporation Commission workshop on Feb. 24.
“I’m happy to see the bipartisanship of taking nuclear off the shelf and putting it back on the table as an option,” said Commissioner Rene Lopez, who initiated the workshop.
The commission opened a docket in 2025 to explore advantages and barriers to developing new nuclear energy in Arizona. The latest workshop marked the commission’s second on the topic. The meeting focused on financing for new projects, with presentations on potential costs, state and federal tax incentives, and grant funding.
Representatives from the offices of Gov. Katie Hobbs, U.S. Sens. Ruben Gallego and Mark Kelly and U.S. Rep. David Schweikert gave presentations to the commission on their efforts to bolster nuclear energy in Arizona by cutting red tape at the state and federal levels.
Additionally, State Rep. James Taylor, R-Litchfield Park, outlined the Legislature’s appetite for legislation that can clear the way for more nuclear projects, while Apache County Supervisor Nelson Davis and St. Johns Mayor Spence Udall spoke about how those projects could benefit their communities.
Currently, the state is home to one nuclear power plant: Palo Verde Generating Station. Palo Verde came online in the late 1980s, but Arizona stopped pursuing other nuclear projects as the energy source fell out of favor across the country.
Now, the ACC is hoping to bring advanced nuclear power generation to Arizona by 2035. ACC commissioners and Arizona utility companies say they’re seeing increased support for new nuclear projects from ratepayers.
“We do hear from Arizonans all the time that they want nuclear and they don’t know why it’s not here right now,” Commissioner Rachel Walden said during the workshop.
Hobbs’ office is in the process of developing a statewide energy strategy plan through her Arizona Energy Promise Task Force. Maren Mahoney, director of the governor’s Office of Resiliency, told commissioners that the plan will include exploration of opportunities to take advantage of technologies like advanced nuclear generation.
Mahoney said the Governor’s Office is currently focused on workforce development opportunities to help power the construction of potential nuclear projects.
“We know there are opportunities to advance a nuclear energy workforce, and that needs to be done sooner rather than later, so that they’re ready once shovels hit the ground,” Mahoney told commissioners.
Hobbs’ office is also committed to serving as a “conduit” to bring together various federal, state, utility and private sector partners to streamline construction and deployment of new nuclear projects, Mahoney said.
Arizona’s three major utility companies, Arizona Public Service, Salt River Project and Tucson Electric Power, are in the very early stages of developing a small modular nuclear reactor. The companies have applied for a U.S. Department of Energy grant that would assist in obtaining an early site permit for the project and are doing “initial project planning” with plans to begin a siting study this year.
Meanwhile, Republicans in the Arizona Legislature are eager to remove potential roadblocks to advanced nuclear generation like Small Modular Reactors, known as SMRs. Lawmakers have introduced six SMR bills this session, the majority of which focus on removing zoning hurdles for potential nuclear projects.
“There’s opportunities and potentials for pitfalls and roadblocks that we want to try and identify ahead of time and remove before we get there,” Taylor told lawmakers.
Representatives from APS, SRP and TEP said no legislation is immediately necessary to spur development, but any policies aimed at de-risking investments in nuclear energy would be welcome. Currently, nuclear projects can cost anywhere from $5 to $10 billion, making them unlikely investments for utility companies looking to keep bills affordable for customers.
Companies like Google, Microsoft, Amazon and Meta are interested in investing in advanced nuclear generation to power operations that require an immense amount of energy, like data centers. Those private-sector investments could help alleviate the demand that data centers are placing on Arizona’s energy grid without passing costs on to residential customers.
However, aside from the high cost of nuclear projects, almost every stakeholder involved in the Feb. 24 meeting acknowledged that the “Not In My Backyard” or NIMBY philosophy is the greatest hurdle for development.
“I think one of the challenges every state faces is NIMBYism,” Commissioner Lea Marquez Peterson said. “Nobody wants anything in their backyard, whether it’s transmission or utility-scale solar or a nuclear power plant. So how we propose this and educate the public is key.”
Whether Arizona sees a new nuclear energy project in development by 2035 depends on who you ask. While the ACC, lawmakers and even the Governor’s Office are eager to pursue the opportunity, Arizona’s utility companies are currently focused on lower cost natural gas plants.
In the meantime, the commission will continue to hold workshops on nuclear generation, with a third workshop focused on workforce development and community outreach.
Source: Arizona Capitol