ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: AII DPA 4-3-0-0

HB 2457: public utilities; plant construction; colocation

Sponsor: Representative Wilmeth, LD 2

Caucus and COW

Overview

Allows a utility to construct a new plant without a certificate of environmental compatibility (Certificate) if outlined conditions are met.

History

The Arizona Corporation Commission (ACC) is authorized by statute to govern the sale of securities in Arizona, license investment advisers and their representatives, register securities dealers and salesmen, regulate public utilities in Arizona, register corporations and enforce regulations for railroad and pipeline safety (ACC).

Statute requires every utility that plans to construct a plant or transmission line to file an application with the ACC for a Certificate. No utility may construct a plant or transmission line in Arizona until a Certificate has been granted by the Arizona Power Plant and Transmission Line Siting Committee and approved by the ACC (A.R.S. §§ 40-360.03, 40-360.07).

Provisions

1. Permits a utility after providing 30 days' written notice to the ACC and holding one public comment session in the county where the plant is located, to construct a new plant without filing for or receiving a Certificate for the new plant on the conditions that:

a. the new plant is colocated with a large industrial energy user that has received all applicable zoning entitlements; and

b. the utility is a public service corporation or public power entity doing business in Arizona. (Sec. 1)

2. Directs the ACC to adopt rules to implement this legislation. (Sec. 1)

3. Requires the ACC to amend colocated with to specify one or both of the following:

a. the distance in feet or parcels between the site of a large industrial energy user and the site of a plant; or

b. the quality or nature of the electrical interconnection between the large industrial energy user and the plant. (Sec. 1)

4. Instructs the ACC to amend large industrial user as follows:

a. must specify the peak or average annual or monthly energy demand of the user that is measured in megawatts or megawatt hours;

b. not discriminate between different industries, sectors or end users and owners or operators of end users or proposed locations of end users and end users in any other capacity beyond the use of energy demand and other electrical-related operating needs. (Sec. 1)

5. Allows the ACC to adopt definitions for any other terms deems necessary to implement this legislation. (Sec. 1)

Amendments

Committee on Artificial Intelligence and Innovation

1. Replaces large industrial energy user with high load factor customer.

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5. Initials TM/IG HB 2457

6. 2/12/2026 Page 0 Caucus and COW

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