TEP plan calls for shift away from coal, more solar and battery storage

TUCSON, Ariz. (KGUN) — Tucson Electric Power is outlining a shift in its energy mix over the next 15 years, with plans to move away from coal, expand solar power and add battery storage.

The utility’s preferred plan calls for converting two coal-fired units at the Springerville Generating Station to natural gas by 2030 and ending its ownership in the Four Corners Power Plant by 2031.

TEP also plans to add 680 megawatts each of solar power and battery storage, along with 300 megawatts of new natural gas generation, by 2041.

"Although the IRP guides our resource planning, decisions to invest in new resources will be made primarily through the ASRFP," said JD Wallace, a spokesperson for TEP.

The company says its preferred plan could reduce projected customer costs by up to $260 million compared with other options it analyzed.

But the impact on customers’ electric bills is not yet clear. TEP says it is too early to determine how the plan will affect rates. Customers would begin seeing costs associated with new resources only after those resources are operating.

Converting the two Springerville units alone is expected to cost about $170 million. TEP says that cost would eventually be recovered through customer rates.

"The exact effort on consumer bills depends on market forces at the time of our next rate application and the cost of the resources at the time they are added to our portfolio."

The utility estimates the conversion would reduce carbon emissions from those units by about 40% while retaining nearly 800 megawatts of generating capacity.

"Because this is a 15-year plan, the addition of solar and battery storage will take place in different stages staggered over numerous years over time."

TEP updates its long-term resource plan every three years, allowing the company to adjust its approach as energy demand, costs and market conditions change.