Out-of-service Cholla Power Plant could return as natural gas facility

Arizona Public Service is working to convert part of the out-of-service Cholla Power Plant in northeastern Arizona into a natural gas facility.

The plant, located in Joseph City, stopped burning coal in March 2025 after serving Arizona customers for decades.

APS President Ted Geisler told KTAR News 92.3 FM’s The Mike Broomhead Show that the company has been evaluating the future of the site for several years.

“Due to a variety of reasons, aging infrastructure, as well as environmental requirements, the Cholla power plant reached its end of life over the last several years, and since then, we’ve been evaluating how to best make use of that facility,” Geisler said.

How would Cholla Power Plant change?

APS plans to convert two units from coal to natural gas. The project could add about 380 megawatts of energy, enough to power about 61,000 Arizona homes.

“The Cholla Power Plant has actually been serving customers throughout the state, including our customers here in the valley, since 1962. It’s been a really critical resource for maintaining reliability and affordable energy for a long time,” Geisler said.

The utility says repurposing the existing site would be a cost-effective way to strengthen reliability as Arizona’s energy demand grows. Natural gas can provide power around the clock, respond quickly during peak demand and support renewable resources such as solar, wind and battery storage.

“Repurposing the facility and repowering some of those units to be able to serve customers through reliable and affordable natural gas is the best way to be able to make use of that valuable site going forward to be able to serve both existing customers and future growth,” Geisler said.

The facility would also add to APS’ energy mix, which includes nuclear power from Palo Verde Generating Station, natural gas, coal, solar, wind and battery storage.

Construction on the conversion is expected to begin in 2028, with completion in 2029.

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