Dive Brief:

• Arizona Public Service (APS) plans to scrap two old natural gas-fired units and replace them with five more efficient ones at a plant in Tempe, Arizona.
• Once the roughly $700 million project is finished in 2018, the Ocotillo plant will be 620 MW, up from 330 MW. APS needs the additional capacity to replace expiring power purchase agreements.
• APS must get local and state permits before the project can move ahead.

Dive Insight:

APS has been adding renewable generation to its fleet and now its gas-fired capacity will get a boost.

“We have a better balanced portfolio than most utilities with nuclear, gas, coal, renewables and energy efficiency,” Pat Dinkel, APS vice president of resource management, said. “Balance comes at a price. You are never optimal for one resource at a moment. You manage your risk over time.”