JOSEPH CITY — Arizona Public Service (APS) announced that it plans to repower the former Cholla Power Plant by converting two of its retired coal-fired units to natural gas, a project the utility says will provide reliable electricity for a growing Arizona while preserving jobs and continuing the plant’s long legacy in northeastern Arizona.
The company expects the repowered facility to begin operating in 2029, with construction anticipated to begin in 2028, pending regulatory approvals. By utilizing much of Cholla’s existing infrastructure, APS says the project can be completed more efficiently than constructing a new generating station elsewhere.
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.
“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.”
APS said Arizona’s rapidly increasing electricity demand was a key factor in the decision. As more homes, businesses and industries connect to the electric grid, the company said that additional dispatchable generation—power that can be produced when needed—is essential to maintaining reliability. Unlike solar and wind resources, natural gas plants can generate electricity around the clock and quickly increase output during peak demand or extreme weather. APS said the repowered Cholla facility will work alongside renewable energy resources and battery storage to strengthen the state’s electric system.
The company also cited the opportunity to reuse Cholla’s existing transmission system, water infrastructure and other facilities, reducing construction costs and shortening the development timeline while preserving the site’s role in Arizona’s energy future.
Originally commissioned in 1962, the Cholla Power Plant supplied electricity to Arizona for more than six decades. APS retired its remaining coal-fired units in March 2025 following years of changing energy markets and environmental regulations. Rather than demolishing the facility, the company chose to repurpose the site for natural gas generation.
APS estimates the converted plant will provide approximately 380 megawatts of generating capacity—enough electricity to serve about 61,000 Arizona homes.
While natural gas remains a fossil fuel, it is considered the cleanest-burning fossil fuel used for large-scale electricity generation. Compared with coal, natural gas produces substantially lower carbon dioxide emissions and significantly reduces sulfur dioxide, mercury, particulate matter and coal ash, resulting in a smaller air pollution footprint while continuing to provide dependable, around-the-clock electricity.
APS also highlighted the project’s economic impact, noting that the conversion is expected to support hundreds of construction jobs and create dozens of permanent positions once the plant enters service. The company said the facility will continue generating tax revenue that supports local schools, public services and the regional economy.
Navajo County Supervisor Jason Whiting praised the announcement.
Supervisor Jason Whiting, who has worked closely with APS over several years, said the conversion underscores the value of long-term collaboration. “I’m excited by today’s announcement. Cholla has been part of our county’s history for generations, and this investment marks a strong new chapter. I appreciate APS for working with us over the past several years and for investing in Navajo County. This project supports good-paying jobs, strengthens our economy, helps our schools, and ensures Arizona continues to have reliable, affordable power.”
APS said it will continue working with state and local leaders as the project advances and plans to host community meetings to keep residents informed throughout the permitting and construction process.
