The Arizona Electric Power Cooperative (AEPCO) has received additional federal funding to modernize the Apache Generating Station’s remaining coal turbine, despite plans to phase out coal. The Department of Energy awarded $21 million aimed at enhancing energy reliability and capacity for AEPCO’s customers.
The Apache plant, the last coal plant in southern Arizona, was scheduled for retirement by the end of next year. However, the new funding facilitates the turbine’s continued operation, aligning with the Trump administration’s objective to modernize the coal industry.
Curt Coccodrilli, Acting Assistant Secretary for the Department of Energy, emphasized the need for reliable power to remain competitive. The grant will restore and upgrade the 195-megawatt unit, with the aim of stabilizing and optimizing the facility. AEPCO intends to reduce emissions by 70% by 2031 and anticipates that the project will create hundreds of jobs during construction.
Currently, coal accounts for only 8% of Arizona’s energy supply, while natural gas and renewables make up about 65%. Coccodrilli highlighted the ongoing importance of coal for job sustainability in mining communities and suggested that the continued operation of the turbine could lead to lower utility prices in the future. The future regulatory environment regarding emissions will depend on the EPA’s actions.
