Arizona Corporation Commission says 'no' again to SRP gas plant expansion

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Salt River Project lost another bid to expand its natural gas plant in Coolidge, Arizona. | Adobe Stock

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The Arizona Corporation Commission (ACC) has refused to reconsider an application by Salt River Project to expand its natural gas plant in Coolidge, Arizona, upholding a rejection of the expansion first proposed in April.

The ACC voted 3-2 on June 6 to affirm its previous 4-1 decision to deny the gas plant. In April the ACC said it didn’t have enough information on costs or environmental impact to approve the expansion. In its refusal to rehear the proposal, the ACC restated its concerns.

"I want to be very clear to the good people of Randolph and the good people of SRP, this is something I think we decided wisely a month ago and I think we ought to close the door on that," said Jim O’Connor, commissioner of the ACC, in a story by Arizona Central..

O’Connor stressed that the decision doesn’t represent a lack of faith in natural gas.

"I do not want this decision to in any way create a signal that I am not supportive of fossil fuel," O'Connor said in a story by AZCentral.

Corporation chair Lea Marquez Peterson was the only member of the board to change her vote from April’s 4-1 decision.

"I had concern when we voted in April about defects in the record, but I think the vote to allow them to rehear would allow them to update the record and work more collaboratively with the community," Peterson said, in a story by KNXV.

SRP has said that it needs the plant expansion to prevent gaps in supply, adding that it may not be able to meet demand by summer 2024 if the facility doesn’t expand.

"This project is a very, very important part of SRP's plan and without its ability to integrate and bring on more renewable resources [plans are] at great risk," said SRP attorney Albert Acken.

Opponents of the expansion, however, said the circumstances are the same as in April.

"Nothing in the record is changed," said Sierra Club attorney Court Rich. "SRP has not revealed something that you missed in your initial analysis of this case."

SRP lawyer Albert Acken, of Jennings Strouss Law Firm, said the expansion would add a safeguard to the gas supply.

"It's not an either/or,” he said. “[The expansion] will not increase that systemwide natural gas percentage. Instead, it provides that backstop so as additional renewable resources are added. When those variable resources are not available, that backstop will be there."

SRP said it was disappointed in the ruling and would consider "whether to seek judicial review."

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