By Matthew Holloway |
An Arizona coal-fired power plant will receive federal funding for modernization efforts under a U.S. Department of Energy (DOE) initiative aimed at strengthening grid reliability and preserving dispatchable power generation.
According to the DOE, project selections announced under its Defense Production Act (DPA) Title III Coal Fleet Projects program, Arizona Electric Power Cooperative’s (AEPCO) Apache Generating Station will receive approximately $21 million in DOE funding along with $32 million in non-DOE funding. The project is one of several selected nationwide as part of the Trump administration’s effort to support coal-fired generation infrastructure.
The Apache project, known as RECOAL — Revitalizing Energy Capacity with Optimized Assets and Long-Life Infrastructure — is intended to modernize the facility’s coal generation assets, improve operational efficiency, and extend the useful life of existing infrastructure.
Arizona Corporation Commissioner Nick Myers highlighted the project in a statement following the federal announcement.
“In the recent announcement from the administration, Arizona is benefiting from the money designated to keep coal plants open,” Myers wrote. “The Apache Generating Station is getting about $21M in DOE funding and $32M in non-DOE funding. This will help modernize the plant to increase efficiency and retain that dispatchable energy for years to come.”
The funding was announced as part of a broader DOE initiative described in a department fact sheet titled “The Energy Department is Unleashing Beautiful Clean Coal.” According to the agency, the initiative supports projects to build, recommission, upgrade, and modernize coal-related energy infrastructure in order to strengthen electric grid reliability and maintain generation resources capable of providing power on demand.
The DOE stated that it has now “saved or supported” 45 coal plants and more than 40 gigawatts of coal-powered generation through actions taken since President Donald Trump declared a National Energy Emergency. The department said its latest actions include support for 17 additional coal plants and one coal export facility.
According to the DOE fact sheet, the coal fleet projects are intended to strengthen domestic energy production, improve power system resilience, and ensure sufficient dispatchable generation capacity as electricity demand increases. The agency cited growing power needs for artificial intelligence, data centers, manufacturing, and national security as factors driving the initiative.
“American coal miners remain essential to American energy dominance,” U.S. Secretary of Energy Chris Wright said.”Unfortunately, previous leaders launched relentless attacks on U.S. coal workers and industry, threatening grid reliability and driving energy prices higher for the American people. Thanks to President Trump, we are not only stopping the premature closure of our coal plants, but also taking steps to expand and modernize existing coal infrastructure. These actions will help ensure affordable, reliable, and secure energy access for decades to come.”
The Apache Generating Station is located in Cochise County and supplies power to rural electric cooperatives and other customers in Arizona and the surrounding region. Under the DOE-supported project, modernization efforts are expected to improve efficiency and support continued operation of the facility’s existing generation assets.
The Trump administration also intervened in Arizona’s coal-powered energy sector in 2025, using emergency authorities to support continued operations at the Cholla Power Plant in Navajo County.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
