APS plans Cholla conversion to natural gas; county officials highlight jobs and reliability

Arizona Public Service (APS) plans to convert two units at the Cholla power plant from coal to natural gas, county and APS representatives told the Navajo County Board of Supervisors.

An APS presenter said the two converted units will add roughly 300 megawatts of dispatchable capacity, serving about 60,000–61,000 homes statewide, and that operations are expected to begin in 2029 with construction expected to start in 2028 pending regulatory approvals. The presenter also said APS will reuse existing transmission infrastructure and will conduct open houses and outreach throughout 2026 to gather community input.

Supervisor Whiting and other board members framed the conversion as a regional economic win. Whiting said he had sent letters to members of Congress seeking review of federal tax credits and other subsidies that make some renewable projects financially viable and said removing some incentives could change project economics. "There are still significant subsidies that exist," he said, urging constituents to contact congressional offices.

Board members said the conversion helps preserve local jobs and tax revenue that support schools and county services. An APS representative estimated the conversion would create hundreds of construction jobs and dozens of permanent positions. "This conversion preserves Cholla as a critical part of Arizona's energy grid while transitioning to a modern dispatchable resource," the presenter said.

The board did not take formal action on the conversion; APS activity was presented as an update and supervisors encouraged upcoming public engagement meetings. APS noted in the presentation that a small lateral pipeline would be needed to supply natural gas to the plant and that reuse of existing infrastructure will limit transmission expansion.