Coal Community Transition FAQs

CCT is an abbreviation to describe a community’s transition after a coal power plant is retired and often features strategic planning to strengthen community capacity and to prepare employees for other job opportunities.

SRP’s goal is to support the communities impacted by our coal plant closures as they navigate this shift and develop a new and more diverse economy.

SRP has dedicated internal leadership and staff that are committed to assisting the communities in this transition to a new economy. The team assembled includes staff who have worked on a previous CCT, as well as those with experience in economic analysis, economic development, education, entrepreneurial activity, legal, natural resources, government affairs and other disciplines. SRP has also partnered with a small group of external experts and Arizona State University to help the community think through, and act on, the most important challenges to overcome to shape the future of the community. For example, the team supported several broadband infrastructure grant applications for the region. While broadband has been a major focus of work, there are also other areas like transportation, education, workforce development and housing that are targeted areas for development.

SRP has established a Coal Communities Transition team that is working with and assisting community leaders as they work to mitigate the projected impact to these communities. The CCT team will support impacted communities to identify new economic opportunities.

Yes, if an employee is offered another position that is in his or her current classification or in another classification, he or she will be provided with the training needed to be successful.

Yes, SRP has discussed anticipated employee reductions with the impacted communities and meets regularly with communities' leadership to discuss challenges and opportunities, and work together to plan and develop strategies to mitigate the impact.

Yes.  

SRP is committed to supporting employees throughout the transition. CGS employees interested in continuing their careers at SRP are being encouraged to bid on other available positions within the organization.  

CGS employees have developed critical skills and experience which we want to retain at SRP. CGS management and SRP’s Human Resources team have partnered to provide CGS employees with tools and resources to make informed decisions and help prepare for the future.

Potentially.   

While there currently are no plans to close the plant prior to 2032, actual usage of the plant, future statutory or regulatory developments and future resource considerations will help determine the ultimate closing date. SRP announced that it will limit total carbon emissions from the plant from 2026–2032 to no greater than they would have been with only Unit 2 running at full capacity during the period from 2026–2035. SRP committed to closing the plant no later than 2032. Review the SRP Selects Operation Plan for Coronado Generating Station press release for details.

Economic Impact Analysis (EIA) is a methodology for evaluating the impacts of a project, program or policy on the economy of a specified region within a certain time.

An EIA can provide critical information on the economic impact of business activities that aid local communities to make more informed decisions.

Economic impact is typically measured using three metrics: (1) employment, (2) household income or wages, and (3) economic output. Employment (or jobs) is the easiest one. Typically, employment impact is reported as a headcount of jobs — not in terms of full-time equivalents. Output is the total amount of goods and services produced in an economy within a specified time. Household wages include base pay plus bonuses, stock options, severance pay, profit distributions, the cash value of meals and lodging, tips, and other gratuities.

Through three types of spending patterns:   

Direct impact: Spending through the operations of the coal plant and its employees spending their paychecks. For example, plant expenditures on environmental services. 

Indirect impact: This initial direct spending ripples through the business supply chains (vendors) until it is exhausted. 

Induced impact: All this business spending induces higher incomes of the owners and employees, and they spend this increased income, which produces further economic activity. 

The total impact is a sum of all three.

The absence of the spending by the power plants, the employees of the plants and the vendors and their employees serving the power plants will reduce the three impacts listed in the previous answer, producing a negative economic impact.

Economic impact studies traditionally focus on the final dollar number. Unless specified, they may not account for the adverse or positive social, environmental or cultural impacts. The researchers of the study may also not connect these findings to implications for policy or future steps.

Salt River Project and Tucson Electric Power each provided 50% of the funding to conduct the study.

Yes. SRP is seeking to actively engage local Tribal Nations and associated communities.