Arizona Public Service (APS) announced plans to convert two units at its historic Cholla Power Plant in Joseph City, Navajo County, to natural gas, with operations slated to begin in 2029. The move follows the coal units’ retirement in March 2025 and is positioned to help meet Arizona’s rising electricity demand while preserving existing transmission infrastructure.
APS Announces Natural‑Gas Conversion of Cholla Units
APS detailed that the repurposed plant will add roughly 380 MW of capacity—enough to serve about 61,000 homes. Construction is scheduled to start in 2028, with an in‑service target for 2029, pending formal permitting and planning. The company highlighted that the conversion leverages the site’s existing transmission lines, reducing the need for new right‑of‑way development.
Leveraging Existing Infrastructure for Reliability
The Cholla facility, commissioned in 1962, has been a cornerstone of Arizona’s grid. By retaining the site and switching fuel sources, APS aims to maintain “reliable, affordable energy” for its 1.5 million customers across 11 counties. Natural gas provides “around‑the‑clock power” and rapid response to peak demand, complementing the utility’s broader mix of nuclear (Palo Verde), solar, wind, and battery storage. APS Vice President of Generation Johnny Penrod emphasized that the conversion “builds on that legacy” while supporting community investment.
Economic and Community Impact Signals
Local officials welcomed the plan. Navajo County Supervisor Jason Whiting said the conversion will “strengthen our local economy, create jobs and support our schools.” APS projects hundreds of construction jobs and several dozen permanent positions once the plant is operating, along with increased tax revenue for Joseph City, Holbrook, and surrounding areas. The utility will conduct ongoing outreach through open houses, newsletters, and a dedicated website.
Key Takeaways
- APS will convert two Cholla units to natural gas, targeting 2029 for commercial operation.
- The conversion adds approximately 380 MW, enough to power about 61,000 Arizona homes.
- Construction is set for 2028, with expected hundreds of temporary jobs and several dozen permanent positions after launch.
EnergyInsyte's Take
The conversion illustrates how utilities can extend the life of legacy sites while aligning with Arizona’s growth and reliability goals. Execution hinges on permitting timelines and community engagement; executives should monitor regulatory progress and the plant’s integration with the state’s expanding renewable portfolio.
Source: Businesswire
