Salt River project increases share of nuclear power plant to meet growing demand: Corporate
December 10, 2020
The Arizona Salt River Project (SRP) nonprofit community electric utility project says it is increasing its share of the Palo Verde nuclear power plant – from 17.5 percent to 20 percent – to meet growing customer demand while reducing its overall carbon intensity and protecting it from price spikes.
Palo Verde (Image: APS)
SRP’s Board of Directors approved the purchase of a portion of the Public Service Company of New Mexico (PNM) share of the three-unit power plant, west of Phoenix, Arizona, and certain assets transmission for about US $ 70 million plus the cost of the associated nuclear fuel inventory.
“Purchasing 114 megawatts of safe, reliable and carbon-free power from PNM in 2023-24 will help SRP meet customer demand which is growing much faster than the national average and defer planned capital spending associated with the construction of potential new power plants. The purchase price represents an attractive economic opportunity for SRP as it represents a fraction of the cost of building a new generating station – something that has been part of SRP’s resource plan for years, ”the company said.
“The Palo Verde nuclear power plant is a high capacity resource that is well managed and extremely reliable,” said SRP CEO and Managing Director Mike Hummel. “The ability to economically add this zero carbon base energy resource to our portfolio will benefit our customers for years to come. “
The purchase will help SRP meet its 2035 sustainability goals, which call for a reduction of CO2 emissions from production by 65% by 2035 and 90% by 2050. It will also provide the company with a increased protection against potential price spikes or shortages of other resources. adding to the diversity of its current resource portfolio, Hummel said.
The purchase of the first 104 MW is expected to be finalized in January 2023 and the remaining 10 MW in 2024, which will bring SRP’s ownership share in Palo Verde to 803 MW.
Research and writing by World Nuclear News