Arizona Public Service announced plans to convert two units at its Cholla Power Plant in Joseph City, Arizona, to natural gas.
The repurposed resource is expected to begin operations in 2029 and will help meet Arizona’s growing energy demand while supporting reliable and affordable electric service for customers.
Originally commissioned in 1962, the Cholla Power Plant helped power Arizona for decades. Federal environmental mandates led to the phased retirement of the plant’s coal units, which was completed in March 2025.
APS plans to convert two units at the site to natural gas, using existing transmission lines and infrastructure to support the state’s energy future.
“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.”
Navajo County Supervisor Jason Whiting, who met with APS leadership to advocate for Cholla to be converted to natural gas, said he appreciated the company’s decision.
“I could not be more excited by this announcement,” Whiting said. “APS’s decision to convert Cholla into a natural gas plant will strengthen our local economy, create jobs and support our schools. Even more importantly, it will help power our state with reliable, affordable energy.”
Arizona’s energy needs are projected to rise significantly in the coming years. APS said converting the Cholla Power Plant to natural gas could add approximately 380 megawatts of energy, enough to serve about 61,000 homes across Arizona.
By repurposing an existing site, APS said it can provide a cost-effective solution while strengthening reliability.
Natural gas can provide around-the-clock power, respond quickly to changes in peak customer demand and complement renewable energy resources such as solar, wind and battery energy storage.
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.
Repowering the Cholla site with natural gas is expected to provide economic benefits for Joseph City, Holbrook and surrounding communities by reinvigorating the plant’s presence in the region.
The project will support hundreds of jobs during construction. Once in operation, the facility is expected to provide several dozen permanent jobs. The plant also is expected to provide tax revenue to the area and help stimulate new economic activity.
