Why Alert the Power Utility About Your Project?
Avoid surprises and setbacks, and learn how SRP supports new developments from day one.
By Karla Moran, Senior Manager of Economic Development, Salt River Project
As the saying goes, “Rome was not built in a day.” Many economic development professionals know that even with modern construction technology, the development of new buildings requires more collaboration and communication than ever before.
Besides physical construction, every new building requires electricity to power its operations. From corporate headquarters to advanced manufacturing to healthcare facilities, none of today’s end uses are possible without electricity.
With this in mind, it is important to bring your electric utility partners in early when you are exploring a new project. Why? Just because a building is wired to support a certain electric load customer does not mean that the power circuits in the area can support that incoming load.
The Hidden Complexity Behind Power Delivery
Think about a garden hose. Say you purchased a house, and the previous owner left their garden hose for you to use. The hose is even connected to a spigot and appears in good working order, with no obvious leaks. The reason you can use it immediately is because there is an ample supply of water in the local distribution system to get water to the hose. The same analogy applies to electricity, but sometimes, there is not sufficient capacity to deliver electricity right away. That means that the electric grid of poles and wires, like water pipes, does not have the capability to deliver additional power, or the utility does not have sufficient generation resources, comparable to water supply, to generate enough electricity at present to match this new need.
On the bright side, informing your utility partners from the get-go can help alleviate some of these concerns. The Salt River Project (SRP) has been delivering affordable, reliable, and sustainable power to the Central Arizona region since 1909. SRP provides water and power to more than two million customers and is one of the nation’s largest not-for-profit power utilities.
How SRP’s Economic Development Team Supports Your Project
If your project falls within SRP’s electric service territory, SRP’s Economic Development (ED) team should be one of your first calls. The ED team will serve as a liaison between you and various SRP departments responsible for energizing a project site.
The ED team will help manage customer and community expectations. After receiving information about expected electricity demand, load factor, and hours of operation, SRP’s engineers will conduct a review to determine the best way to provide power to the end customer, and an associated timeline.
If new infrastructure is needed, the design, procurement, and construction time can vary. SRP, like many organizations, has also experienced escalating costs related to inflation, supply chain challenges, and tariffs. Below is a brief overview of the three common types of service new projects will require.
Understanding Power Service Levels
Understanding power service levels is essential for effective infrastructure planning, cost management, and reliable electricity delivery. Each service level at SRP—Standard, Enhanced, or Dedicated Substation level—corresponds to specific load thresholds and infrastructure requirements, which directly impact project timelines, permitting, and capital investment. For example, smaller loads under 5.7 MW may be served through existing distribution networks, while larger loads require dedicated circuits or onsite substations, often involving extensive upgrades.
Knowing power demand thresholds and service levels helps real estate developers anticipate costs, align with regulatory requirements, and ensure grid reliability by avoiding power overloads to nearby circuits. It also supports strategic site selection by identifying locations with sufficient capacity and infrastructure, and enables clear communication with stakeholders about feasibility, timelines, and expectations. Ultimately, understanding service levels allows economic development teams and planners to make informed decisions that balance operational needs with long-term scalability.
Planning for Infrastructure and Timelines
SRP is constantly expanding its power system and bringing power to growing areas of the Valley. If a project has a flexible timeline, it is possible that ramping up their energization needs over time while proceeding with other construction steps could allow for the customer to bear fewer costs for electric system upgrades.
For context, under SRP’s Integrated System Plan, SRP anticipates doubling or tripling its grid capacity in the next 10 years. Considering that the current grid was built over the course of more than a century, this effort will be made at an unprecedented pace, and will require extensive planning, regulatory approvals, and construction. SRP experienced a record peak demand of over 8,500 MW in August 2025. Therefore, if a new project requests 1,000 MW of power, that is one-eighth of SRP’s current system.
While SRP desires to serve large-load customers, utilities will not be able to realistically provide that level of power load to individual customers for some time. Just as it took the Romans multiple years to build the Colosseum, SRP requires ample amount of time to fully build out its grid to serve new large power loads.
Avoiding the “Backpedal”: Why Timing Is Everything
If you remember nothing else, remember to contact your utility partner early in the process of any project. Doing so can avoid awkward conversations with your customers in the future. Nothing is worse than having to explain to a customer that the project cannot proceed on the original timeline because there won’t be enough power at the site.
Once SRP has information about your project, SRP’s ED team can begin analyzing the best way to proceed. No project is the same, and depending on the circumstances, SRP may be able to provide insight and mitigations that could add transparency and potentially speed up the timeline.
As a community based, not-for-profit utility, SRP succeeds when our communities succeed. SRP’s Economic Development team, on behalf of the entire company, looks forward to working with you to grow our region’s economy.