Historic Arizona plant repower aims to meet state’s rising energy needs

Company Website: http://aps.com
PHOENIX -- (Business Wire)

Arizona Public Service (APS) announced today it plans to convert two units at its Cholla Power Plant in Joseph City, Navajo County, Arizona to natural gas. The repurposed resource, with operations beginning in 2029, will help meet the state’s growing energy demand while maintaining reliable, affordable electric service for customers.

Originally commissioned in 1962, the Cholla Power Plant played a vital role in powering Arizona for decades, providing a critical power supply to the state. Beginning in the last decade, federal environmental mandates forced the phased retirement of the plant’s coal units, completed in March 2025. APS plans to convert two units at the site to natural gas, preserving its legacy in the state while leveraging existing transmission lines and infrastructure to support Arizona’s energy future.

“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.”

Navajo County Supervisor Jason Whiting, who frequently met with APS leadership to advocate for Cholla to be converted to natural gas, expressed his appreciation for the company's decision. “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.”

Supporting Arizona’s growth with a diverse energy mix

Arizona is one of the fastest-growing states in the country, and its energy needs are projected to rise significantly in the coming years. Transitioning the Cholla Power Plant to natural gas could:

• Add approximately 380 megawatts (MW) of energy.
• Provide enough power to serve about 61,000 homes across Arizona.

By repurposing an existing site, APS can provide customers with a cost-effective solution while strengthening reliability. Natural gas plays a key role by:

• Its ability to provide around-the-clock power to meet customer needs at any time of the day.
• Responding quickly to changes in customer peak energy demand.
• Complementing renewable energy resources like solar and wind power and battery energy storage.

The facility would further support APS’s diverse energy mix – which includes nuclear from the Palo Verde Generating Station, natural gas, coal, solar, wind and battery energy storage – ensuring top-tier, reliable service as Arizona continues to grow.

Renewed economic impact and community benefits

Repowering the Cholla site with natural gas is expected to provide meaningful economic benefits for Joseph City, Holbrook and surrounding communities by reinvigorating the plant’s presence in the region. The project will support hundreds of jobs during construction and, once in operation, is expected to provide several dozen permanent jobs to help run the facility. The plant will also provide meaningful tax revenue to the area and help stimulate new economic activity.

Looking ahead

Construction on the gas conversion is expected to begin in 2028 with a targeted in-service date in 2029. This project will need to go through formal permitting and planning processes and will include ongoing community outreach through open houses, newsletters and aps.com/chollaconversion.

APS serves 1.5 million homes and businesses in 11 of Arizona’s 15 counties and is a leader in safely delivering reliable, affordable electricity in the Southwest. With 140 years of experience serving Arizona, APS is the main subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

View source version on businesswire.com: https://www.businesswire.com/news/home/20260702331361/en/

Contacts:

Media Contact:
Alan Bunnell
602.250.3376

Website:
aps.com/newsroom

Source: Arizona Public Service