Phoenix-area officials and utility leaders in Arizona have turned their attention to the prospect of adding another nuclear generating facility in the state, but unresolved questions about water availability have emerged as a central obstacle. The three largest electric utilities in Arizona have begun an initial study aimed at identifying a suitable site for a future nuclear station. At the same time, state regulators have flagged the state’s uncertain water future as among the most significant challenges that would need to be addressed before a new plant could be brought into service.
The utilities’ preliminary effort is focused on establishing where a new nuclear facility might be located; the study is described as an early planning step. Regulators have emphasized that water availability will figure prominently in considerations about whether and where to build. Officials say that the prospect of securing reliable water supplies — both for construction and ongoing operations — will be a key test as the planning process unfolds.
A Colorado River dam and hydroelectric facility that helps regulate flows and power — a focal point in discussions about water availability for Arizona’s proposed energy projects.
State scrutiny of a potential nuclear project is taking place against a backdrop of broader water-management concerns. Regulators have pointed to the state’s water outlook when discussing the path forward for any new large-scale thermal generation. Those officials say that uncertainty over long-term water supplies will be among the most difficult issues to resolve as utilities explore site options and technical requirements for a nuclear plant.
The discussion about nuclear expansion in Arizona is occurring alongside the continuing operation of fossil-fuel facilities in the state. The Coronado Generating Station in St. Johns, located in eastern Arizona, is a coal-fired power plant owned by Salt River Project, a Phoenix-area utility. Officials from the region that hosts Coronado have told regulators and other authorities that they support pursuing new nuclear projects in Arizona, even as the conversation about water and siting persists.
Aerial view of a major canal conveying Colorado River water across desert Arizona — water deliveries like this are central to concerns over supporting new nuclear capacity.
Water deliveries that move Colorado River water across desert Arizona are a focal point in the conversation about the feasibility of additional large-scale power generation. Regulators and utility planners have identified those deliveries and the broader question of sustainable, long-term water access as central to any decision about siting and permitting. The utilities’ site-selection study will therefore be conducted in the context of ongoing concerns about how future water availability could support or limit new energy infrastructure.
Officials involved in the regional energy discussion have made clear that support for new nuclear capacity exists among some local and utility stakeholders. At the same time, regulators have set water availability — and the uncertainty surrounding it — as a threshold issue. As the preliminary study proceeds, water questions are expected to shape timelines, site choices and the regulatory review that would be required before any project could advance.
The utilities’ initial assessment and the regulators’ warnings about water highlight a narrowing set of practical questions that must be resolved in the early stages of planning. The interplay between site selection, local support from regions that already host large plants such as Coronado, and the availability of river-based water deliveries will be central to whether the state can move from preliminary study to formal project proposals. For now, the utilities’ work remains at an early stage and water uncertainty remains a dominant concern for regulators reviewing the prospect of a new nuclear generating station.
Arizona Public Service, Salt River Project and Tucson Electric Power have launched a six-month joint siting study evaluating former coal-fired plant sites, following a June 25 Arizona Corporation Commission workshop that highlighted growing momentum and northeastern Arizona communities' interest in hosting new nuclear capacity. The utilities failed to secure U.S. Department of Energy funding for an early site permit but continue exploring alternatives, per state officials and reporting from the Arizona Capitol Times and AZCC.
The June 25 workshop was the third in a series hosted by Arizona Corporation Commission Chair Nick Myers and Commissioner René Lopez and drew more than two dozen energy, government and industry participants as part of ACC docket No. E-00000A-25-0026.
The utilities say the six-month screening will follow an industry-standard, phased screening methodology to produce a short list of candidate sites and to evaluate technical, financial and other factors; the companies have not selected a reactor technology and say both small modular reactors and larger reactor designs remain under review.
The companies have signaled they will begin stakeholder engagement and plan community meetings near potential nuclear sites in late 2026 to share information and solicit local feedback.