News Summary
Arizona’s largest utilities have reported unprecedented peak energy demand during a severe heat wave, with electricity usage surpassing previous records. APS, SRP, and TEP all reached new highs, driven by temperatures exceeding 110 degrees. The extreme conditions have raised concerns about the power supply, prompting investments in infrastructure and renewable energy sources to meet growing demands. With increasing temperatures and population growth, utility companies are under pressure to ensure reliable energy supply during peak times.
Arizona has experienced unprecedented peak energy demand this week amid extreme heat, with its largest utilities breaking previous records for electricity use during a significant heat wave. Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power (TEP) all reported peak demands that surpassed their past highs.
APS recorded a peak demand of 8,631 megawatts (MW) on Thursday, exceeding the previous record of 8,212 MW set in 2024. Similarly, SRP reached a peak demand of 8,542 MW on Wednesday, overtaking last year’s peak of 8,205 MW. TEP also set a new peak demand record on the same day as APS, reporting 2,502 MW, surpassing its earlier high of 2,445 MW reached in 2021.
The surge in energy demand was directly correlated to the extreme heat recorded in Phoenix, with temperatures exceeding 110 degrees on the days when peak demand was recorded. On August 7, temperatures peaked at 118 degrees, marking the hottest August day in 120 years.
Utility companies had previously estimated higher peak demands for 2025. APS projected a peak demand of 8,491 MW, while SRP estimated 8,436 MW and TEP planned for 2,434 MW. However, the actual demands exceeded these forecasts, indicating a growing trend in electricity consumption.
Weaknesses in the power supply could emerge as a concern, prompting Arizona Corporation Commission Vice Chair Nick Myers to highlight the need for expanding power infrastructure and implementing energy conservation measures during periods of high demand.
Factors contributing to the rising energy usage in Arizona include increased temperatures, ongoing population growth, and the establishment of new businesses, all of which are straining the existing power grid. To meet these challenges, APS is investing over $2 billion annually into system upgrades and has plans to increase its renewable energy portfolio. By 2028, APS aims to add nearly 10 gigawatts (GW) of solar, wind, energy storage, and gas resources.
As a direct response to the ongoing high demand, APS has already set three peak energy demand records in the current summer season, underscoring the critical need for reliable energy sources amid worsening weather patterns and increasing energy requirements.
TEP has focused on enhancing its infrastructure to manage summer demand effectively. This includes the deployment of a new 200-MW battery energy storage system, which is designed to improve customer access to power and ensure efficient energy use during peak hours. TEP has emphasized that their preparedness has played a vital role in ensuring stability amid high-energy demands.
SRP has also put measures in place to ensure reliability by activating demand response programs designed to reduce energy usage among customers during extreme temperatures. This careful management of resources is essential for maintaining stable energy supplies during peak times.
The situation in Arizona is reflective of a nationwide trend, as other utilities such as JEA in Florida and Duke Energy in the Carolinas reported record energy demand levels due to similar extreme heat conditions. The U.S. Energy Information Administration (EIA) has projected that electricity demand will continue to grow, forecasting an annual increase rate of 2.2% in 2025 and 2026, significantly higher than in previous years.
Nationally, coincident peak demand across the Lower 48 states reached a new record of 759,180 MW on July 29, showing a 1.9% increase over the previous record set in July 2024, further exemplifying the challenges faced by utility companies amid rising temperatures and energy consumption nationwide.
Deeper Dive: News & Info About This Topic
- Utility Dive: Arizona Utilities Break Peak Demand Records
- Wikipedia: Electricity in the United States
- KTAR: APS & SRP Peak Demand Analysis
- Google Search: Energy Usage Arizona
- Havasu News: Arizona Utilities Record Peak Energy Demands
- Encyclopedia Britannica: Energy
- Daily Energy Insider: APS Sets Record for Peak Demand
- Google News: Arizona Energy Demand
- AZCentral: APS & SRP Energy Usage Records
- Google Scholar: Electricity Demand Arizona
Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
