TEP reducing coal generation, increasing renewables

April 9, 2014 | By Barbara Vergetis Lundin

According to its recently filed 2014 Integrated Resource Plan (IRP), Tucson Electric Power (TEP) will meet customers' energy needs through 2028 by reducing its coal generation capacity by one-third; acquiring new cost-effective natural gas-fired resources; and continuing its expansion of renewable power and energy efficiency programs. The IRP has been filed with the Arizona Corporation Commission.

The company expects to add more than 50,000 customers over the next 10 years based on current projections. Peak demand is projected to grow annually by about 1 to 1.5 percent. To meet this demand requires a long-term portfolio diversification strategy that will reduce the company's overall coal capacity by 492 MW, or about 32 percent, over the next five years.

Downtown Tucson, Arizona. Credit: Simeon87/Wikimedia Commons

TEP anticipates reducing its use of Unit 1 at the coal-fired Springerville Generating Station by 50 percent, or 197 MW, by purchasing only half of the unit after its current lease expires in 2015. The company has also crafted a proposal that allows for the elimination of coal as a fuel source for Unit 4 at the H. Wilson Sundt Generating Station instead of investing in more costly emission controls.

To replace some of the lost capacity from existing coal-fired resources, TEP and sister company UniSource Energy Services are planning a joint purchase of a 550 MW combined-cycle unit at the natural gas-fired Gila River Power Station in Gila Bend, Arizona, which would be completed in December 2014.

TEP plans to further diversify its portfolio through continued investments in renewable energy and energy-efficiency programs. By 2028, TEP anticipates that its combined solar, wind, and biogas resource capacity will increase from 157 MW today to 788 MW. TEP also plans to reduce its need for new generating resources through a range of cost-effective, industry-proven energy efficiency programs that will result in a cumulative capacity reduction of 312 MW.

"Being prepared to meet tomorrow's energy needs requires planning today," said David G. Hutchens, president and chief operating officer of TEP. "Resource planning is an ongoing balancing process that involves minimizing costs to our customers, enhancing our sustainability and satisfying regulatory requirements, all while effectively using our current infrastructure and preparing for future system improvements to continue serving our customers with high reliability."

By 2028, TEP projects that its resource portfolio will consist of 43 percent coal-fired generation and 36 percent natural gas-fired resources. The remaining 21 percent will be made up of renewable energy and energy efficiency resources.

For more:
- see TEP's Integrated Resource Plan
- see Unisource's Integrated Resource Plan

http://www.fierceenergy.com/story/tep-reducing-coal-generation-increasing-renewables/2014-04-09