By admin 
JOSEPH CITY, AZ (AZFamily) — Plans are in the works to bring new life to part of a retired power plant in northern Arizona.
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Arizona Public Service (APS) says it will convert two former coal units at the Cholla Power Plant in Joseph City, a small community in Navajo County, to run on natural gas.
APS says the new units are expected to begin operating in 2029 and will help meet rising electricity demand as Arizona continues to grow. The utility says it will reuse existing transmission lines and infrastructure at the site.
Cholla first opened in 1962 and generated power for years until federal environmental requirements led to a phased shutdown of the plant’s coal units, which was completed in March 2025.
APS Vice President of Generation Johnny Penrod described the plant as “foundational to Arizona’s Energy Grid.”
“Repurposing the Cholla Power Plant for natural gas allows us to build on that legacy,” Penrod said in a written statement, “supporting reliable, affordable energy for our customers while continuing to invest in the communities who have long supported this plant.”
Arizona Corporation Commissioner Kevin Thompson said restarting the site as a coal plant would be too costly for customers.
“The estimated $1.9 billion price tag needed to restart Cholla as a coal plant was economically infeasible and an unfair burden to ratepayers,” Thompson said in a written statement.
Earlier this year, the Arizona Corporation Commission gave its approval to convert two other power plants, the Springerville and Coronado Generating Stations, from coal to natural gas.
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“The existing infrastructure at plants like Cholla, Springerville, and Coronado have always made these sites ideal for conversion or repurposing, whether that be advanced nuclear technology or in this case natural gas,” Thompson said.
If approved through permitting and planning, APS says the conversion could add about 380 megawatts of capacity, enough to power roughly 61,000 homes across the state.
The utility says natural gas can provide around-the-clock electricity, respond quickly during peak demand and help balance renewable sources such as solar and wind.
Construction would support hundreds of jobs, with several dozen permanent positions expected once the plant is running, along with new tax revenue for surrounding communities, according to APS.
Construction is expected to begin in 2028, with community outreach planned through open houses and newsletters as the project moves through the approval process.
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