Palo Verde

Palo Verde is a 4.2 GW nuclear power plant in Arizona, demonstrating strong operational performance and significant regional importance, while also facing regulatory considerations for license renewal and exploring future nuclear expansion.

Overview

Palo Verde is a prominent nuclear generating station in Arizona, known for its substantial contribution to the U.S. electricity supply. It is strategically located and plays a critical role in the Western Interconnection.

• Plant Name: Palo Verde
• Location: Near Tonopah, Arizona (approx. 45 miles west of downtown Phoenix)
• Status: Operating
• Operating Since: 1986
• Description: Generates the second most electricity of any power plant in the United States per year, and is the second largest power plant by net generation.
• Similar Plants: Browns Ferry, Vogtle, Peach Bottom
• Nearby Plants: Sun Streams 4, Sun Pond, Mesquite Generating Station Block 2

Fleet Details

The plant consists of multiple nuclear generators, contributing significantly to the regional grid's stability and power supply. Its high capacity factor indicates efficient operation.

• Capacity: 4.2 GW
• Generators: 3
• Technologies: Nuclear
• Grid: NERC: WECC, 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

Financial Profile

Palo Verde represents a significant capital investment and has a competitive operational cost structure, as indicated by its financial data spanning a decade.

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

Strategic Outlook

Palo Verde is a critical asset for its owners and the Western electric grid, with ongoing efforts to secure its long-term operation through license renewal. The exploration of new nuclear sites by Arizona utilities signals a commitment to expanding nuclear energy, potentially leveraging Palo Verde's operational expertise and existing infrastructure. However, regulatory processes for license extension and potential new developments, along with broader regulatory risks, will be key factors influencing its future.