Arizona’s economy is growing rapidly driven by advanced manufacturing, data centers, and population growth. To meet this demand, Salt River Project (SRP) must expand and modernize its energy infrastructure. The Coronado Generating Station Repower Project is a critical part of that strategy.
What Is the Coronado Generating Station Repower Project?
Located near St. Johns, Arizona, the Coronado Generating Station (CGS) currently operates two coal-fired units producing 790 megawatts of electricity — enough to power approximately 150,000 homes. SRP has approved converting CGS from coal to natural gas, preserving critical generation capacity while reducing emissions. SRP filed its application with the Arizona Corporation Commission (ACC) on January 12, 2026, to amend the original Certificate of Environmental Compatibility (CEC). The conversion is expected to be completed by December 2029
Why the Coronado Generating Station Repower Project Matters to Contractors
- Major Construction Activity
Repowering an existing generating station requires significant:
- Engineering and design work
- Mechanical and boiler conversion
- Civil and heavy construction
- Fuel infrastructure development
The project includes permitting and constructing a new lateral natural gas pipeline and fuel yard. This work that directly supports Arizona’s heavy civil and specialty contractors. This means real construction jobs especially in rural Arizona.
- Reliable Power Supports Arizona Construction Growth
SRP projects electricity demand growth of 4.2% annually which is nearly double historic levels
Construction growth depends on stable power supply for data centers, reliable energy for advanced manufacturing, and affordable electricity for development of all types.
Without dependable generation like CGS, Arizona risks slowing the very industries fueling construction demand.
- Protecting Ratepayers = Protecting the Construction Economy
SRP estimates converting CGS to natural gas will:
- Save customers approximately $300 million compared to building a new gas plant
- Save approximately $1.2 billion compared to long-duration lithium-ion battery deployment
Affordable electricity supports:
- Competitive business attraction
- Job growth
- Stable construction markets
When power costs rise, development slows.
AZAGC Position
AZAGC supports timely approval of the Coronado Generating Station Repower Project because it:
- Preserves reliable generation capacity
- Supports Arizona construction jobs
- Maintains affordable electric rates
- Provides economic stability in rural Arizona
