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House Engrossed
utilities; high load factor customers |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HOUSE BILL 2756 |
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AN ACT
amending title 30, arizona revised statutes, by adding chapter 2; amending title 40, chapter 2, article 1, arizona revised statutes, by adding section 40-207; relating to public utilities.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 30, Arizona Revised Statutes, is amended by adding chapter 2, to read:
CHAPTER 2
PUBLIC POWER ENTITIES
ARTICLE 1. GENERAL PROVISIONS
30-301. Public power entities; new extra high load factor customers; quarterly reports; load growth projections
A. A public power entity that serves more than one million connections in this state shall file with the governing body of the public power entity quarterly reports regarding new extra high load factor customers, AS DEFINED BY THE PUBLIC POWER ENTITY, THAT INCLUDE BOTH OF THE FOLLOWING WITH RESPECT TO THE IMMEDIATELY PRECEDING QUARTER:
1. The number of requests for interconnection.
2. The number of completed interconnections.
B. Beginning two years after the effective date of this section, the governing body of the public power entity may suspend the quarterly report requirement by a majority vote of the governing body If the numbers reported by the public power entity pursuant to subsection A of this section are zero for at least two consecutive quarters. The governing body may vote to reinstate the quarterly report requirement at any time.
C. A public power entity that conducts integrated system planning shall include extra high load factor customers in the public power entity's load growth projections for the integrated system plan.
Sec. 2. Title 40, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 40-207, to read:
40-207. Electric service corporations; new extra high load factor customers; quarterly reports; load growth projections; rules; exemption
A. An electric public service corporation operating in this state shall file with the corporation commission quarterly reports regarding new extra high load factor customers, AS PRESCRIBED IN RULE, that include both of the following WITH RESPECT TO THE IMMEDIATELY PRECEDING QUARTER:
1. The number of requests for interconnection.
2. The number of completed interconnections.
B. Beginning two years after the effective date of this section, the corporation commission may suspend the quarterly report requirement by a majority vote If the numbers reported by the electric public service corporation pursuant to subsection A of this section are zero for at least two consecutive quarters. The corporation commission may vote to reinstate the quarterly report requirement at any time.
C. An electric public service corporation that conducts integrated resource planning shall include extra high load factor customers in the electric public service corporation's load growth projections for the integrated resource plan.
D. The corporation commission may adopt rules pursuant to article XV, section 3, Constitution of Arizona, that do all of the following:
ESTABLISH REQUIRED cHARACTERISTICS THAT GOVERN THE TERMS FOR ELECTRIC SERVICE PROVIDED TO EXTRA HIGH LOAD FACTOR CUSTOMERS THAT ARE NOT OTHERWISE PROVIDED SERVICE UNDER A PRE-EXISTING ELECTRIC PUBLIC SERVICE CORPORATION TARIFF. THE REQUIRED CHARACTERISTICS MAY INCLUDE ALL OF THE FOLLOWING AND ENSURE FLEXIBILITY FOR AN ELECTRIC PUBLIC SERVICE CORPORATION TO DEFINE SPECIFIC TERMS FOR EACH TRANSACTION ON A CASE-BY-CASE BASIS:
1. PROVISIONS FOR MINIMUM BILLING REQUIREMENTS.
2. MINIMUM CONTRACT LENGTH.
3. PROVISIONS THAT GOVERN EARLY EXIT OR TERMINATION OF SERVICE BEFORE THE TERM OF A CONTRACT CONCLUDES.
4. REQUIREMENTS FOR CUSTOMER-PROVIDED SECURITY, GUARANTEES OR COLLATERAL TO SUPPORT SERVICE CONTRACT OBLIGATIONS.
5. REQUIREMENTS FOR EXTRA HIGH LOAD FACTOR CUSTOMER PAYMENTS TO COVER THE COSTS OF ANY INFRASTRUCTURE IMPROVEMENTS, ADDITIONS OR EXPANSION THAT ARE NECESSARY TO FACILITATE SERVICE TO THE CUSTOMER, WHICH SHALL BE SUPPORTED BY SCHEDULES FILED BY THE ELECTRIC PUBLIC SERVICE CORPORATION THAT DEMONSTRATE THE PROTECTION OF NON-HIGH LOAD FACTOR CUSTOMERS FROM CROSS-SUBSIDIZATION.
E. This section does not apply to Member-owned electric cooperatives.
Sec. 3. Cost-of-service studies; exemption
Within one hundred eighty days after the effective date of this act:
1. An electric public service corporation operating in this state shall file with the corporation commission a cost-of-service study that shows the cost allocation of serving new extra high load factor customers. This paragraph does not apply to member-owned electric cooperatives.
2. A public power entity that services more than one million connections in this state shall file with the governing body of the public power entity a cost-of-service study that shows the cost allocation of serving new extra high load factor customers.
Sec. 4. Legislative findings
The legislature finds that this act:
1. Is necessary pursuant to article XV, section 3, Constitution of Arizona, "for the convenience, comfort, and safety, and the preservation of the health, of patrons of such corporations".
2. Does not attempt to set or establish any specific rates or charges to be made or collected by public service corporations or require the corporation commission to set or adopt any specific rates or charges to be made or collected by a public service corporation.
3. Supports the adoption of rules and policies that establish new customer classes, rate designs and cost allocation formula for extra high load factor customers that are reasonable and necessary to prevent cost shifts to residential customers from extra high load factor customers.