Item 2. Properties
ITEM 2. PROPERTIES
Generation Facilities
APS’s portfolio of owned generating facilities as of December 31, 2022 is provided in the table below:
Name No. of
Units %
Owned (a) Principal
Fuels
Used Primary
Dispatch
Type Owned
Capacity
(MW)
Nuclear:
Palo Verde (b) 3 29.1 % Uranium Base Load 1,146
Total Nuclear 1,146
Steam:
Four Corners 4, 5 (c) 2 63 % Coal Base Load 970
Cholla 1,3 2 Coal Base Load 387
Total Steam 1,357
Combined Cycle:
Redhawk (d) 2 Gas Load Following 1,088
West Phoenix 5 Gas Load Following 887
Total Combined Cycle 1,975
Combustion Turbine:
Ocotillo (e) 7 Gas Peaking 620
Saguaro 3 Gas Peaking 189
Douglas 1 Oil Peaking 16
Sundance 10 Gas Peaking 420
West Phoenix 2 Gas Peaking 110
Yucca 1, 2, 3 3 Gas Peaking 93
Yucca 4 1 Oil Peaking 54
Yucca 5, 6 2 Gas Peaking 96
Total Combustion Turbine 1,598
Solar:
Cotton Center (f) 1 Solar As Available 17
Hyder I (f) 1 Solar As Available 17
Paloma (f) 1 Solar As Available 17
Chino Valley 1 Solar As Available 20
Gila Bend (f) 1 Solar As Available 36
Hyder II (f) 1 Solar As Available 14
Foothills (f) 1 Solar As Available 38
Luke AFB 1 Solar As Available 11
Desert Star (f) 1 Solar As Available 10
Red Rock 1 Solar As Available 44
APS Owned Distributed Energy Solar As Available 36
Multiple facilities Solar As Available 4
Total Solar 264
Total Capacity 6,340
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(a) 100% unless otherwise noted.
(b) APS’s 29.1% ownership in Palo Verde includes leased interests and is the largest capacity interest of all the participants. See “Business of Arizona Public Service Company — Energy Sources and Resource Planning — Generation Facilities — Nuclear” in Item 1 for details regarding leased interests in Palo Verde. The other participants are Salt River Project, SCE, El Paso, Public Service Company of New Mexico, Southern California Public Power Authority, and Los Angeles Department of Water & Power.
(c) The other participants are Salt River Project (10%), Public Service Company of New Mexico (13%), Tucson Electric Power Company (7%) and NTEC (7%). The plant is operated by APS.
(d) Redhawk generation capacity increased by 104 MW following the Advanced Gas Path upgrade installed on both units.
(e) Ocotillo Steam Units 1 and 2 were retired on January 10, 2019. Units 3 through 7 all went into service on or prior to May 30, 2019, which increased generation capacity by 510 MW.
(f) APS is under contract and currently plans to add battery storage at these AZ Sun sites. See “Business of Arizona Public Service Company — Energy Sources and Resource Planning — Energy Storage” above for details related to these and other energy storage agreements.
See “Business of Arizona Public Service Company — Environmental Matters” in Item 1 with respect to matters having a possible impact on the operation of certain of APS’s generating facilities.
See “Business of Arizona Public Service Company” in Item 1 for a map detailing the location of APS’s major power plants and principal transmission lines.
Transmission and Distribution Facilities
Current Facilities . As of January 3, 2023, APS’s transmission facilities consist of approximately 5,828 pole miles of overhead lines and approximately 85 miles of underground lines, 5,768 miles of which are located in Arizona. APS’s distribution facilities consist of approximately 11,276 miles of overhead lines and approximately 23,082 miles of underground primary cable (20,021 when excluding abandoned conductor), all of which are located in Arizona. APS also owns and maintains 469 substations, including both transmission and distribution yards. APS shares ownership of some of its transmission facilities with other companies.
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The following table shows APS’s jointly-owned interests in those transmission facilities recorded on the Consolidated Balance Sheets at December 31, 2022:
Percent Owned
(Weighted-Average)
Morgan — Pinnacle Peak System 64.7 %
Palo Verde — Rudd 500kV System 50.0 %
Round Valley System 50.0 %
ANPP 500kV System 33.4 %
Navajo Southern System 26.8 %
Four Corners Switchyards 61.9 %
Palo Verde — Yuma 500kV System 25.4 %
Phoenix — Mead System 17.1 %
Palo Verde — Morgan System 87.8 %
Hassayampa — North Gila System 80.0 %
Cholla 500kV Switchyard 85.7 %
Saguaro 500kV Switchyard 60.0 %
Kyrene — Knox System 50.0 %
Agua Fria Switchyard 10.0 %
Expansion. Each year APS prepares and files with the ACC a Ten-Year Transmission Plan. In APS’s 2023 Ten-Year Plan, APS projects it will develop 84 miles of new transmission lines over the next 10 years. Additionally, APS plans to upgrade 55 miles of existing transmission lines over the same horizon. The 2023 Ten-Year Plan includes a new 25-mile 500kV line from the Jojoba substation to the Rudd substation. The purpose of this 500kV line project is to bring in a new source to the west and southwest parts of the Phoenix metropolitan area which is experiencing rapid economic development. In addition, this new source will provide customers in the area greater access to a diverse mix of resources from around the region. The 2023 Ten-Year Plan includes numerous projects with the purpose to interconnect new renewable energy resources to the transmission system.
Plant and Transmission Line Leases and Rights-of-Way on Indian Lands
The Navajo Plant and Four Corners are located on land held under leases from the Navajo Nation and also under rights-of-way from the federal government. The Navajo Plant ceased operations in November 2019. The co-owners and the Navajo Nation executed a lease extension on November 29, 2017, that allows for decommissioning activities to begin after the plant ceased operations.
APS, on behalf of the Four Corners participants, negotiated amendments to the Four Corners facility lease with the Navajo Nation, which extends the Four Corners leasehold interest from 2016 to 2041. See “Business of Arizona Public Service Company — Energy Sources and Resource Planning — Generation Facilities — Coal-Fueled Generating Facilities — Four Corners” in Item 1 for additional information about the Four Corners right-of-way and lease matters.
Certain portions of our transmission lines are located on Indian lands pursuant to rights-of-way that are effective for specified periods. Some of these rights-of-way have expired and our renewal applications have not yet been acted upon by the appropriate Indian tribes or federal agencies. Other rights expire at various times in the future and renewal action by the applicable tribe or federal agencies will be required at that time. In recent negotiations, certain of the affected Indian tribes have required payments substantially
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in excess of amounts that we have paid in the past for such rights-of-way. The ultimate cost of renewal of certain of the rights-of-way for our transmission lines is therefore uncertain.