(The following story has been edited to accurately reflect the intentions of SRP once coal firing operations cease at the Coronado Generating Station in St. Johns and to clarify that APS’s closure of the Cholla Power Plant was always set for 2025.)
Arizona Public Service (APS) has confirmed plans to shut down the Cholla Power Plant, a decision that has been in the pipeline for some time. When contacted regarding the closure Mike Philipsen, a senior communication consultant for APS said that in the next several months information should be made available to the public but could not give an exact timeline for when residents can expect answers.
The Cholla Power Plant, situated in Joseph City, has been a cornerstone for the local economy, contributing significantly through jobs and tax revenues. Communities in Joseph City and the surrounding areas are facing uncertainty as they depend heavily on the facility for economic stability. The looming closure raises concerns about the potential long-term negative impacts on these communities. An economic analysis conducted in collaboration with the Joseph City Unified School District (JCUSD) suggests that an injection of $20 million over the next decade would be necessary to counteract the adverse effects of the plant’s shutdown.
As APS navigates through the process of retiring the Cholla facility, there is a growing call for the company to provide a clear “glide path” to mitigate the economic repercussions of the closure. The utility has yet to disclose whether the Cholla site will be repurposed for alternative energy production or any specific plan for the future. This uncertainty contrasts starkly with the situation at Salt River Project’s coal power plant in Saint Johns, which has plans to move into seasonal operations next year and to shutter no later than 2032.
As part of SRP’s efforts to review opportunities to use the existing infrastructure associated with Coronado Generating Station, SRP commissioned a repurposing study to identify low- and zero-carbon technologies mature enough to be implemented at the CGS site by spring 2033. The study confirmed that several low- and zero-carbon technologies are site-compatible and could be considered for spring 2033 implementation. Based on these study results and growing energy needs, SRP intends to develop plans to repurpose the site following cessation of coal operations.
The development will likely include two phases.
Phase 1, the period closely following plant closure will include consideration of the most feasible generating resource options which are biomass, long-duration energy storage, wind, PV solar and lithium-ion storage.
Phase 2: Timing is to-be-determined because these technologies need time to demonstrate reliability (mature). This list includes hydrogen, long-duration energy storage, advanced nuclear, natural gas as a bridge and others.
The retention of the Cholla site by APS also presents challenges and opportunities related to its infrastructure, such as the rail spur, training facilities and water pumps. These resources could benefit other industries, should they become available, highlighting the importance of a plan that considers the ramifications the retirement of Cholla will have on Joseph City and the county at large.
Amidst these challenges, APS is undergoing a rate case change before the Arizona Corporation Commission (ACC) that could see an increase in rates. This rate case is not just about adjusting financial figures; it represents a critical opportunity for APS to secure the means to support the communities impacted by the Cholla closure. Stakeholders including the JCUSD, the Navajo tribe, and other parties have actively participated in the rate case hearings, emphasizing the need for financial and structural assistance to mitigate the plant’s shutdown’s adverse effects.
In 2020, the Navajo Nation negotiated a settlement with APS with the closure of the Navajo Generating Station, securing a $144 million transition package. However, ACC reduced this package to $10 million in cash and commitments to purchase renewable energy. Advocates for Navajo Nation, Hopi Nation, Sierra Club, and clean energy organizations are intervening in the current rate case, seeking adequate Coal Community Transition funding.
The closure of the Cholla Plant is part of a broader trend of coal plant shutdowns across the Northern Arizona region. Arizona is set to see four coal-fired power plants close due to stronger regulations on such facilities and innovations in renewables, which have made them more affordable. These plants are vital economic engines in the towns and counties where they operate, with three of the four plants located in Northern Arizona, highlighting the impending economic impact on the region.
