Arizona Corporation Commission Chair Kevin Thompson has made it clear that any effort to resurrect the shuttered Cholla Power Plant would impose nearly $2 billion in costs on ratepayers. In a statement obtained by AZCC, Chair Thompson emphasized the complexity of managing electrical systems and criticized the financial imprudence of such calls from state officials.
The coal-fired Cholla plant, which had been delivering energy for over 60 years, ceased operations in March by its scheduled deadline due to environmental compliance costs, including necessary updates that it did not meet. Chair Thompson and Commissioner Rachel Walden engaged with the Secretary of the Interior’s Office to discuss the financial impact on APS ratepayers if the plant were to be reopened. According to Thompson, "Managing highly intricate systems like our electrical grid is far more complicated than a slogan on a bumper sticker."
Thompson also held strategic discussions with the White House to deliberate ways to sustain remaining coal-fired plants that align with the Trump Administration's energy policy. The objective is to help existing coal plants remain feasible for ratepayers and operational, with the state's growing demand necessitating additional natural gas sources.
Vice Chair Nick Myers, who instigated a Docket focused on expanding the natural gas infrastructure in Arizona, highlighted the limitations of current pipelines and the necessity for diversifying the energy supply. Myers stated, "Even if we succeed in making the necessary EPA changes to keep coal plants cost-effective for Arizona ratepayers—and are able to keep those plants operational—the state’s rapid load growth means we will still need additional natural gas to support future power generation." Moreover, Commissioner Rene Lopez has been actively conducting workshops to promote new nuclear technologies, which have piqued public interest and potential partnerships.
The decommissioning of the Cholla plant has led to the approval of new natural gas plants to fill the gap in generation capacity in the short term. The Commission remains focused on ensuring a balanced energy mix for Arizona, protecting utility customers while embracing the state's energy evolution toward natural gas and advanced nuclear solutions.
