A coal plant in New Mexico that was expected to shut down in 2031 could now remain online until 2038.
The proposed extension underscores a familiar challenge in the Southwest and beyond: how to keep up with rising electricity demand without adding to the health and financial burdens tied to fossil fuels.
Here's what to know
The Arizona Republic reported that a September deal between Arizona Public Service and Navajo Transitional Energy Co. could add seven years to the life of the Four Corners Power Plant. Because the plant's permit will remain in effect until 2041 and retiring the facility would take about three years, there is a path for operations to continue after the planned 2031 shutdown.
APS, the state's largest utility, has been reducing its use of coal, but it says hotter summers, economic expansion, and new large-scale power users are pushing demand higher.
APS spokesperson Casey Taggatz said in an email to the Republic that the increase is happening at an unusually rapid pace. "Arizona's energy needs are growing faster than at any time in our history, making access to reliable generation resources more important than ever," Taggatz wrote.
The company revealed the agreement at a Sept. 30 meeting of APS' Resource Planning Advisory Council, a stakeholder group the utility created in 2021.
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APS is also scheduled to host a public meeting Oct. 14 about its 2026 Integrated Resource Plan, which covers projected energy demand over the next 15 years and how the company expects to supply it.
More background
Extending Four Corners beyond 2031 would increase both pollution and water use, the Republic reported.
APS described that scenario as one that "provides diversity without development risk," suggesting that it sees the plant as a hedge against uncertainty as electricity demand grows.
Federal officials approved an expansion plan for the mine that supplies Four Corners after a contentious fight over the project. Navajo Transitional Energy Co., which bought a 7% stake in the plant in 2018, said in a 2024 report that it had a "vision to save the Four Corners Power Plant and the Navajo Mine," the Republic reported.
What's being done?
APS has said the agreement alone does not guarantee the plant will remain open longer.
Taggatz wrote that the deal is just one step in a process, and APS still calls carbon neutrality by 2050 an "aspirational goal," the Republic reported.
The utility also said that if Four Corners stays online longer, the move would come alongside additional renewable energy growth, even as APS keeps coal available for reliability.
"The rapid increase in energy demand and frequency of extreme weather events means we must maintain flexible options to operate a 24/7 grid while avoiding reliability risks," Taggatz wrote, per the Republic.
Where can I learn more?
The Four Corners issue is part of a trend of coal plants staying online even as utilities pursue cleanup goals.
• In Arizona, millions to quit coal were followed by $21 million to keep it running.
• Across the U.S., keeping old coal plants alive is costing ratepayers hundreds of millions of dollars.
• Nationwide, new wind and solar are already cheaper than running almost every coal plant.
• U.S. power producers made a concerning shift in operations as coal and gas use surged.
• In West Virginia, coal plants impact consumers long after 50 years of operation.
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