Monday, July 13, 2026
APS plans to convert Cholla Power Plant units to natural gas by 2029
APS announced plans to convert two retired coal units at the Cholla Power Plant in Joseph City to natural gas, with operations expected to begin in 2029.
APS announced plans to convert two retired coal units at the Cholla Power Plant in Joseph City to natural gas, with operations expected to begin in 2029.
The utility said the project is intended to help meet Arizona's growing electricity demand after the plant's coal units were retired in March 2025. The Cholla Power Plant, commissioned in 1962, supplied electricity to the state for decades before federal environmental regulations led to the phased retirement of its coal-fired units.
APS said the conversion will use the site's existing transmission lines and infrastructure.
"Cholla has been an important part of the communities of Joseph City, Holbrook, Navajo County and northeastern Arizona for decades and has been foundational to Arizona's energy grid," said Johnny Penrod, APS Vice President of Generation. "Repurposing the Cholla Power Plant for natural gas allows us to build on that legacy - supporting reliable, affordable energy for our customers while continuing to invest in the communities who have long supported this plant."
The converted facility is expected to add about 380 megawatts of generating capacity, enough to serve about 61,000 homes, according to APS. The utility said natural gas generation can operate continuously, respond to changes in electricity demand and work alongside solar, wind and battery storage resources.
Navajo County Supervisor Jason Whiting welcomed the announcement.
"I could not be more excited by this announcement," Whiting stated. "APS's decision to convert Cholla into a natural gas plant will strengthen our local economy, create jobs and support our schools. Even more importantly, it will help power our state with reliable, affordable energy."
APS said construction is expected to begin in 2028, pending permitting and planning approvals. The utility said the project is expected to create hundreds of construction jobs and several dozen permanent positions after the facility begins operating. APS also said it will conduct community outreach through public meetings, newsletters and project updates.
This report was written with the assistance of artificial intelligence.
The utility said the project is intended to help meet Arizona's growing electricity demand after the plant's coal units were retired in March 2025. The Cholla Power Plant, commissioned in 1962, supplied electricity to the state for decades before federal environmental regulations led to the phased retirement of its coal-fired units.
APS said the conversion will use the site's existing transmission lines and infrastructure.
"Cholla has been an important part of the communities of Joseph City, Holbrook, Navajo County and northeastern Arizona for decades and has been foundational to Arizona's energy grid," said Johnny Penrod, APS Vice President of Generation. "Repurposing the Cholla Power Plant for natural gas allows us to build on that legacy - supporting reliable, affordable energy for our customers while continuing to invest in the communities who have long supported this plant."
The converted facility is expected to add about 380 megawatts of generating capacity, enough to serve about 61,000 homes, according to APS. The utility said natural gas generation can operate continuously, respond to changes in electricity demand and work alongside solar, wind and battery storage resources.
Navajo County Supervisor Jason Whiting welcomed the announcement.
"I could not be more excited by this announcement," Whiting stated. "APS's decision to convert Cholla into a natural gas plant will strengthen our local economy, create jobs and support our schools. Even more importantly, it will help power our state with reliable, affordable energy."
APS said construction is expected to begin in 2028, pending permitting and planning approvals. The utility said the project is expected to create hundreds of construction jobs and several dozen permanent positions after the facility begins operating. APS also said it will conduct community outreach through public meetings, newsletters and project updates.
This report was written with the assistance of artificial intelligence.
