PHOENIX - In January, Duke Energy received conditional approval to construct a 600-megawatt expansion of the Arlington Valley Energy Facility currently under construction in western Maricopa County. The project was proposed as a water-cooled power plant, using a maximum of 3,900 acre-feet of groundwater per year. The Commission approved an amendment offered by Commissioner Marc Spitzer that instead requires Duke to use dry cooling technology. Dry cooling uses significantly less water - less than 10 percent of the water required for conventional cooling.

As an offset to the plant's groundwater impact and since no aquifer recharge project exists in the area, the Spitzer amendment also requires Duke to participate in the Central Arizona Water District's Agua Fria Recharge Project, in cooperation with the Arizona Water Banking Authority. The Agua Fria Aquifer is within the Phoenix Active Management Area and is in critical need of recharge. Duke Energy will have to recharge 1,000 acre-feet of water per year throughout the life of the power plant.

Duke Energy has asked the Commission to reconvene for a discussion of an alternative plan as defined in a separate Spitzer amendment. The alternate Spitzer amendment would require a wet cooled plant with a "gallon per gallon" groundwater recharge program. The Commission will meet to discuss the case in more detail on Tuesday, February 12, 2002 at 1:30 p.m. in the Commission's main hearing room.