The conversion of the famous and long-standing Cholla Power Plant in northeastern Arizona may launch in early 2028, with a rough completion date of sometime the following year.
Located in Joseph City in Navajo County, the one-time coal-burning plant began operations in June of 1962 and was for some four decades the primary source of power in the region.
The generating units 2 and 4 were put out of commission between 2015 and 2022, with the units 1 and 3 retired last year.
Now the Arizona Public Service utility company has announced plans to convert two units at the massive facility to natural gas generation. “Given Arizona’s increasing demand for around-the-clock energy and the long timelines for adding new generation, the conversion has proven to be a viable option to deliver reliable, affordable energy to APS customers,” the company has announced in a statement.
In comments in the publication Utility Drive, Johnny Penrod, vice president of generation at APS, noted that Cholla’s years of operation, before adding: “Repurposing the Cholla Power Plant for natural gas allows us to build on that legacy.”
The first large scale coal-burning plant in Arizona history, the facility was built at a cost of $21 million and was several times subsequently expanded.
Early last year the Trump Administration moved to keep the facility open, despite earlier-announced plans by APS to retire it.
“Our nation’s beautiful clean coal resources will be critical to meeting the rise in electricity demand due to the resurgence of domestic manufacturing and the construction of artificial intelligence data processing centers,” an executive order from the White House said at the time.
The President’s move to keep Cholla operational was supported by Arizona Republican Congressman Eli Crane who remarked: “For years, radical environmentalists tried to destroy the once-thriving coal industry.”
Despite that move, APS ultimately decided to retire the final two units at Cholla, noting that it would cost upwards of $2 billion to update and keep the plant running as a coal-burning facility.
Converting the facility, however, to a natural gas facility will “further support APS’ diverse energy mix,” the company said in its statement.
Before any work can begin on the reconversion, the proposed project will be required to go through both a permitting and planning process, as well as be subject to public input.
July 13, 2026
By Garry Boulard
Photo courtesy of Arizona Public Service
