Arizona Public Service (APS) has announced plans to convert two units of its retired Cholla Power Plant in Navajo County to natural gas. This conversion is expected to generate up to 380 megawatts of energy, as per the utility’s recent statement.
The Cholla plant’s coal units were phased out over the past decade, with the final unit set to retire in March 2025. At its peak, the plant provided around 1 gigawatt (GW) of power.
APS noted that a previous assessment of converting the plant to natural gas did not offer significant economic advantages for customers. However, due to Arizona’s rising energy demands, the conversion is now seen as a viable solution to ensure reliable and affordable energy.
In the previous year, APS projected a 4% to 6% annual increase in electric sales through 2027, largely driven by new customers. The Arizona Corporation Commission indicated that APS anticipates peak demand for large customers to hit approximately 13.1 gigawatts this year.
This conversion aims to maintain the plant’s historical significance while optimizing existing infrastructure to meet Arizona’s future energy needs. “Cholla has long been a vital asset for the communities in northeastern Arizona and has played a crucial role in the state’s energy landscape,” stated Johnny Penrod, APS vice president of generation.
The new gas facility will enhance APS’s diverse energy portfolio, which includes nuclear, solar, wind, and battery energy storage. Construction of the gas conversion is slated to begin in 2028, with the goal of being operational by 2029. APS will ensure public engagement during the project’s permitting and planning stages through community meetings and accessible feedback options.