Pinnacle West Committing $7.95B, Converting Cholla Plant to Gas
PNW•APS will convert its Cholla coal-fired power plant to natural gas by 2027 as part of Pinnacle West’s infrastructure strategy. Pinnacle West also committed $7.95 billion to its 2026–2028 capital plan to bolster grid reliability, expand rate base and target 5–7% long-term EPS growth.
1. Cholla Plant Conversion
APS plans to convert its coal-fired Cholla power plant to natural gas by 2027, transitioning the facility away from coal to reduce emissions and extend its operational life under evolving regulatory standards.
2. 2026–2028 Capital Investment Plan
Pinnacle West’s board approved a $7.95 billion capital plan for 2026–2028 focused on grid reliability enhancements, equipment modernization to meet rising power demand and expanding its regulatory rate base.
3. Financial Impact and EPS Growth Target
The capital deployment is designed to support a 5–7% long-term EPS growth target by driving higher rate base returns and improving system efficiency, positioning the company for sustained shareholder value creation.
