Arizona Public Service announced at a Resource Planning Advisory Committee meeting that it has secured a coal supply contract extension with Navajo Transitional Energy Co. that would keep the utility’s Four Corners coal-fired plant operational through 2038, seven years beyond its originally scheduled retirement date of 2031.
The contract extension reverses APS’s prior commitment to retire the plant and has drawn criticism from environmental and public health advocates who contend the decision will increase costs for ratepayers, perpetuate air pollution, continue significant water consumption, and worsen climate impacts. Environmental organizations note that the utility could achieve greater savings for customers by retiring the facility and investing instead in renewable energy sources. The Sierra Club recently issued a report indicating that APS received failing grades in its Dirty Truth Report, which evaluates utility companies based on their continued coal usage and planned natural gas expansion alongside renewable energy additions.
Tribal representatives and environmental groups have highlighted the human toll of the plant’s continued operation, noting that the facility has affected the health and environment of Navajo Nation residents for decades. Public health concerns cited in opposition to the extension reference global research showing fossil fuel pollution causes significant mortality annually.
APS is scheduled to hold a public meeting on October 14 to present its 2026 Integrated Resource Plan, which outlines the utility’s strategy for meeting energy demand projections over the next 15 years. Critics argue that the utility’s stated goal of achieving carbon neutrality by 2050 lacks credibility given its planned natural gas expansion projects and the coal contract extension.
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