en.Wedoany.com Reported - Arizona Public Service (APS) announced on Thursday plans to convert two units of its retired Cholla Power Plant in Navajo County, Arizona, to natural gas generation, capable of providing up to 380 megawatts (MW) of electricity.

The coal-fired units were retired over the past decade due to federal environmental requirements, with the last unit retiring in March 2025. The plant once provided approximately 1 gigawatt (GW) of electricity during peak generation periods.

APS stated on its website that while federal regulations provide options for converting the plant to natural gas generation, earlier conversion assessments did not yield economic benefits for customers. Given Arizona's growing demand for around-the-clock energy and the long construction timelines for new generation facilities, the conversion has proven to be a viable option for providing reliable and affordable energy.

The utility company estimated last year that its electricity sales would grow by 4% to 6% annually through 2027, driven by increased system load. In April, the Arizona Corporation Commission stated that APS "estimates its peak demand load for large customers this year will reach approximately 13.1 GW."

An APS press release stated that the conversion will preserve the plant's legacy while utilizing existing transmission lines and infrastructure to support Arizona's energy future.

Johnny Penrod, APS Vice President of Generation, said the Cholla plant has been an important part of Joseph City, Holbrook, Navajo County, and northeastern Arizona communities for decades, and has been a cornerstone of Arizona's power grid. "Converting the Cholla Power Plant to natural gas generation allows us to build on that foundation."

APS stated that the new natural gas facility will "further support APS's diverse energy mix—including nuclear power from the Palo Verde Generating Station, natural gas, coal, solar, wind, and battery storage."

APS said construction on the natural gas conversion project is expected to begin in 2028, with a target commercial operation date of 2029.

APS noted that the project "requires a formal permitting and planning process," and the utility company will seek public input through open houses, phone calls, and emails.