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REFERENCE TITLE: 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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HB 2756 |
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Introduced by Representatives Griffin: Blackman
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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 that include both of the following:
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 that include both of the following:
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 shall adopt rules pursuant to article XV, section 3, Constitution of Arizona, that do all of the following:
1. Govern the business transaction with extra high load factor customers.
2. Establish the minimum billing requirements.
3. Prescribe the form of contracts that may be used with extra high load factor customers, including:
(a) The length of the contract.
(b) The payment terms for both of the following:
(i) Grid upgrades.
(ii) Investments to accommodate the extra high load factor customer even if the extra high load factor customer no longer does business in or leaves this state.
4. Establish a process for the corporation commission to review and approve all extra high load factor customer contracts at least thirty days before the execution of the contract to ensure the contract is both:
(a) Consistent with the rules adopted by the corporation commission.
(b) In the best interest of other ratepayers and customer classes that do not include the extra high load factor customer, including residential and small business customers.
E. This section does not apply to Member-owned electric cooperatives.
Sec. 3. Corporation commission; workshop
Within ninety days after the effective date of this act, the corporation commission shall conduct at least one workshop to determine whether:
1. The utility revenues and costs from extra high load factor customers are resulting in increased or decreased residential bills.
2. Any rules or policies should be adopted to establish a new customer class for extra high load factor customers or a specific rate design or cost allocation for extra high load factor customers.
Sec. 4. 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. 5. 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.