Highlights
- APS says the Cholla plant conversion to natural gas will generate enough power for about 61,000 Arizona homes.
- Energy regulators in Arizona have approved coal-to-gas conversions at two in-state power plants, according to Power Magazine.
- APS is pursuing a 'growth pays for growth' model for the new gas plant, targeting data centers as anchor customers.
- The Cholla conversion follows years of regulatory debate, including a 2025 estimate that reopening the plant as coal would cost $2 billion.
Arizona Public Service is converting the former Cholla coal plant to natural gas generation, with the utility saying the project will produce enough power to serve about 61,000 homes in Arizona, 12News reported Thursday.
The move follows regulatory approval of coal-to-gas conversions at two Arizona power plants, according to Power Magazine. APS has framed the Cholla project under what it calls a 'growth pays for growth' model, under which new large-load customers, including data centers relocating to Arizona, would bear the cost of added generation rather than spreading it across the existing ratepayer base.
AZ Central reported in October 2025 that APS planned to offer a subscription model to data centers as part of the gas plant development. The Cholla site had remained in regulatory limbo after APS retired its coal operations there; a KJZZ report from June 2025 noted that a regulator estimated reopening the plant as a coal facility would cost $2 billion, making the gas conversion the more viable path forward.
A timeline for the conversion's completion has not been disclosed in available public records.
Sources
Every factual claim in this article traces to one of the sources below. See how we work for the editorial process.
- 12News retrieved 02/07/2026 17:43
- powermag.com retrieved 02/07/2026 17:43
- aps.com retrieved 02/07/2026 17:43
- AZ Central retrieved 02/07/2026 17:43
- kjzz.org retrieved 02/07/2026 17:43
Authored by The Scottsdale Signal. Drafted by AI from primary-source material under our beat-specific editorial guides; reviewed by humans before publish under our five-gate process. Sources retrieved at 02/07/2026 17:43. Every claim traces to a source.
