Arizona is on the rise. The Grand Canyon State is among the top 10 fastest-growing states in the nation. Our surging population contributes to rising energy demand. Fortunately, proactive planning will keep customers from seeing their electricity bills escalate.

Arizona Public Service (APS) recently announced plans for a cost-effective method to meet growing energy needs. At its recently decommissioned Cholla Power Plant in Joseph City, APS will convert shuttered former coal units to natural gas. The transition should add enough power to serve more than 60,000 homes. 

Call this repurposing with a purpose.

The Cholla project is expected to be completed in 2029, and revenues begin in 2031. Since the transformation takes place at an existing plant with existing infrastructure, it will bolster Arizona’s energy reliability without the price tag of completely new infrastructure. The majority of the rebuild involves upgrading existing equipment rather than all new construction. 

The repowering will stimulate new economic activity for Joseph City, Holbrook and surrounding communities by supporting hundreds of jobs during the construction phase while also driving local contractor and supplier spending. Plant operations will provide several dozen permanent work opportunities.

Just as the Navajo County regional economy is being strengthened, this conversion fortifies the state’s electric grid. 

Arizona’s peak energy demand could increase by up to 40 percent during the next 15 years. By adding 380 megawatts (MW) of new natural gas generation at the Cholla site, Arizonans will continue to have access to affordable energy around the clock thanks to a reliable and diversified grid. 

As part of APS’s generation fleet since 1962, Cholla Power Plant played a significant role in delivering for Arizona customers. This new plan preserves that history with a natural gas plant that ensures Navajo County will help power the Grand Canyon State for years to come. 

Bridget Condon is Senior Director of Federal and State Affairs for Consumer Energy Alliance.