You’ve probably seen those massive chimneys stabbing the desert sky if you’ve ever driven through the Navajo Nation near Fruitland, New Mexico. That’s the APS Four Corners Power Plant. It’s a beast. For over 60 years, this place has been the beating heart of the Southwest’s electrical grid, but it’s also been a massive point of contention for just as long. Honestly, it’s one of the most complicated pieces of infrastructure in America. It isn't just a collection of boilers and turbines; it’s a flashpoint for tribal sovereignty, environmental lawsuits, and the brutal reality of the energy transition.
Arizona Public Service (APS) operates the facility, but they don't own the whole thing. It’s a shared burden, or asset, depending on who you ask.
The Reality of the 2031 Deadline
Everyone is talking about the shutdown. It’s coming. APS has officially committed to exiting coal generation at the APS Four Corners Power Plant by 2031. This wasn't some snap decision made in a vacuum. It was the result of years of pressure from the EPA, shifting economics, and a massive push for decarbonization.
Think about the scale here. We are talking about a plant that once had five units. Units 1, 2, and 3 were retired back in 2013 as part of a $182 million plan to meet regional haze rules. Now, only Units 4 and 5 are chugging along. These two remaining units can pump out about 1,540 megawatts. That is enough juice to power roughly 300,000 homes. You can't just flip a switch and replace that kind of baseload power overnight without the grid getting wonky.
The 2031 date is significant because it aligns with the expiration of the plant’s coal supply contract with Navajo Transitional Energy Company (NTEC). If you look at the Integrated Resource Plan (IRP) filed by APS, they’re basically betting the farm on a mix of solar, wind, and massive battery storage to fill the gap. But there’s a catch. Reliable power is hard. Coal provides "spinning inertia"—basically, big heavy stuff spinning fast that keeps the frequency of the grid stable. Batteries are getting better, but replacing a 1.5-gigawatt coal plant is a logistical nightmare.
The Navajo Nation’s Impossible Choice
You can't talk about the APS Four Corners Power Plant without talking about the Navajo people. This is their land. The plant sits on property leased from the Navajo Nation.
✨ Don't miss: Pornhub Explained: Why the Site’s 2007 Launch Changed the Internet Forever
It’s a double-edged sword.
On one hand, the plant and the adjacent Navajo Mine are economic lifelines. We’re talking about hundreds of high-paying jobs in a region where unemployment rates can be devastating. For decades, royalty payments from coal have funded a huge chunk of the Navajo government’s budget. When people talk about "just transition," they often forget how terrifying that sounds to a family whose mortgage depends on Unit 5 staying online.
On the other hand, the environmental toll has been heavy. Groups like Tó Nizhóní Ání and Diné C.A.R.E. have been vocal for years about the impact on air quality and water. If you look at the numbers, the plant has historically been one of the largest emitters of nitrogen oxides in the country. Even with the selective catalytic reduction (SCR) systems installed a few years ago—which cost a fortune, by the way—it’s still a massive carbon source.
Why Keeping it Open is So Expensive
Why not just keep it running? If it works, why fix it?
Money. It always comes down to the math.
Running the APS Four Corners Power Plant is becoming an atmospheric money pit. Maintaining 1960s and 70s era machinery is grueling. Parts break. Turbines need overhauls. Then you have the environmental compliance costs. The EPA’s "Good Neighbor" plan and other regulations regarding coal combustion residuals (the ash left over) mean that APS has to keep pouring millions into a plant that already has an expiration date.
Investors hate that.
👉 See also: Jordan Dinar to USD Dollar: What Most People Get Wrong
Wall Street wants "clean" portfolios now. Public utility commissions are also tightening the screws. They don't want to see ratepayers (that’s you) foot the bill for an aging coal plant when natural gas or renewables are cheaper per megawatt-hour. In 2021, there was a huge debate when APS tried to securitize the costs of the plant—essentially turning their "stranded assets" into bonds that customers pay off over time. It’s a complex financial maneuver to ensure the company doesn't go broke while trying to be "green."
The Tech Under the Hood
If you ever get a chance to see the Selective Catalytic Reduction (SCR) systems at Four Corners, take it. They are gargantuan. They look like giant boxes strapped to the side of the plant. Their job is to spray ammonia into the flue gas to convert nitrogen oxides into nitrogen and water.
It works, mostly.
But it’s an end-of-pipe solution. It doesn't do anything for carbon dioxide. That’s the real sticking point. In the 2020s, "cleaner" isn't "clean enough." The plant uses a massive amount of water from the San Juan River for cooling. In a parched Southwest, every gallon of water used to cool a coal boiler is a gallon not used for agriculture or drinking.
The Regional Power Struggle
Four Corners is owned by a consortium. While APS is the operator and a major owner, other players have been involved, like Public Service Company of New Mexico (PNM), Salt River Project (SRP), and Tucson Electric Power (TEP).
The exit strategy hasn't been unified. PNM, for example, has been much more aggressive about trying to ditch coal. This creates a weird tension in the boardroom. Imagine trying to run a business where half the partners want to invest in new equipment and the other half are literally looking for the exit door.
What Happens After the Smoke Clears?
The remediation of the APS Four Corners Power Plant site will be a multi-decade project. You can't just walk away from a coal plant. There are coal ash ponds that need to be monitored forever to ensure they don't leak into the groundwater. There’s the demolition of the stacks. There’s the soil cleanup.
But the real challenge is the "Power" part of the power plant. The transmission lines are already there. One of the most valuable things about the Four Corners site isn't the coal; it’s the wires. These high-voltage lines connect the remote desert to the massive load centers in Phoenix and beyond.
The smart move?
Converting the site into a renewable energy hub. There are already discussions about massive solar arrays on the reclaimed mine lands. Because the interconnection to the grid is already built, it’s one of the best spots in the country for a massive battery storage facility. This would allow the Navajo Nation to keep its status as an energy powerhouse without the soot.
Actionable Insights for the Future
If you live in the Southwest or follow the energy markets, the situation at Four Corners offers several takeaways that actually matter for your wallet and your community:
- Watch your utility bills: As APS transitions away from coal, the "Clean Energy" line items on your bill will fluctuate. The cost of decommissioning Four Corners will be baked into rates for years to come.
- Keep an eye on the grid's "Reliability Margin": The years between 2028 and 2032 will be critical for Arizona's grid. If the new solar and storage projects aren't online before Four Corners shuts down, expect more "flex alerts" during those 110-degree Phoenix summers.
- Economic shifts in San Juan County: If you are looking at real estate or business investment in the Farmington or Fruitland area, the 2031 closure is a massive variable. The region is desperately trying to diversify into outdoor recreation and hydrogen production to offset the loss of coal jobs.
- The Hydrogen Wildcard: There has been talk about using the existing infrastructure at Four Corners for "Blue" or "Green" hydrogen production. This is still mostly theoretical, but it’s the only way to keep those high-paying industrial jobs in the area long-term.
The APS Four Corners Power Plant represents the end of an era. It’s the closing chapter of the 20th-century "Coal is King" mentality. Whether the transition is a disaster or a triumph depends entirely on how well APS and the Navajo Nation manage the next six years of decommissioning and reinvestment. It’s a high-stakes game where the lights of Phoenix and the livelihoods of thousands are on the line.