Palo Verde

Palo Verde is a high-capacity nuclear power plant in Arizona, demonstrating strong operational performance and a strategic focus on license renewal and potential expansion, despite regulatory risks.

Overview

Palo Verde is a significant nuclear power plant in Arizona, known for its substantial generation capacity and consistent operation since the mid-1980s. Its strategic location and high output make it a critical asset for regional energy supply.

• Plant Name: Palo Verde
• State Focus: Indiana (Note: The plant is located in Arizona, the briefing is scoped for Indiana analysis, but the plant itself is not in Indiana.)
• Location: Near Tonopah, Arizona (approx. 45 miles west of downtown Phoenix)
• Status: Operating
• Operating Since: 1986
• Description: Nuclear power plant generating the second most electricity of any power plant in the United States per year, and the second largest by net generation.

Fleet Details

The plant consists of three nuclear generators, contributing significantly to the regional grid and operated by a consortium of utility companies. Its high capacity factor indicates efficient and reliable generation.

• Generators: 3
• Technologies: Nuclear
• Capacity: 4.2 GW
• Parent Company: Pinnacle West Capital
• EIA Operator: Arizona Public Service Co.
• Ownership: Arizona Public Service Co, El Paso Electric Co, Los Angeles Department of Water & Power, Public Service Co of NM, Salt River Project, Southern California Edison Co, Southern California P P A (joint ownership)
• Grid NERC: WECC
• Grid BA: Salt River Project
• Capacity Factor: 84.9%
• Annual Generation: 31322 GWh
• Recent Monthly Generation (2025-10): 2069 GWh
• Recent Monthly Generation (2025-11): 1921 GWh
• Recent Monthly Generation (2025-12): 2822 GWh
• Similar Plants: Browns Ferry, Vogtle, Peach Bottom
• Nearby Plants: Sun Streams 4, Sun Pond, Mesquite Generating Station Block 2

Financial Profile

Palo Verde exhibits substantial capital expenditure and competitive operational costs, reflecting the scale and long-term investment in nuclear power generation. The financial data spans a decade, providing a comprehensive view of its economic performance.

• CapEx: $3291/kW
• OpEx: $23.6/MWh
• Financial Data Span: 10 years (2015–2024)
• Financial Data Source: ferc

Strategic Outlook

Palo Verde is actively pursuing license renewal, which, if granted, would ensure its continued operation for decades. The exploration of new nuclear sites by Arizona utilities signals a long-term commitment to nuclear power, potentially involving future expansion or new facility development, though regulatory hurdles and permitting delays remain key risks.