Review of Tucson Electric Power Company Plans for San Juan Generation Station
On behalf of Sierra Club, Synapse reviewed the Tucson Electric Power Company’s (TEP) rate application submitted to the Arizona Corporation Commission. Specifically, Synapse reviewed TEP’s decision to retire the San Juan Generation Station (SJGS) Unit 1 in 2027 and its request to recover costs from ratepayers for a $34 million investment in two pollution control projects at the unit. Synapse found that TEP did not exercise due diligence in supporting its recommendation of a 2027 retirement and its capital expenditures, relying heavily on another owner of the plant, Public Service Company of New Mexico. TEP conducted its own analysis in 2012 and 2013, prior to several major changes that affect the economics of San Juan. Synapse’s analysis found that the unit is unlikely to be economic after 2022. As such, Patrick Luckow submitted expert testimony recommending that the Commission reject the proposed 2027 retirement in favor of a 2022 retirement.