ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: NREW DPA 10-0-0-0

HB 2756: utilities; high load factor customers

Sponsor: Representative Griffin, LD 19

Caucus & COW

Overview

Requires certain public power entities and public service corporations to file quarterly reports with their respective governing entities regarding new extra high load factor customers. Outlines exemptions, rulemaking and additional reporting requirements.

History

A public power entity means any municipal corporation, city, town or other political subdivision that is organized under state law, that generates, transmits, distributes or otherwise provides electricity and that is not a public service corporation (A.R.S. § 30-801).

Public service corporation means any person or corporation that provides electric or communication service to the public by means of electric or communication facilities (A.R.S. § 40-341).

The Arizona Corporation Commission (ACC) is authorized to supervise and regulate every public service corporation in the state and do all things necessary and convenient in the exercise of that power and jurisdiction (A.R.S. § 40-202).

Provisions

Public Power Entities

1. Requires a public power entity, that meets certain criteria, to file with the governing body of the public power entity (Governing Body) quarterly reports regarding new extra high load factor customers that include the number of:

a. requests for interconnection; and

b. completed interconnections. (Sec. 1)

2. Allows the Governing Body to suspend the quarterly reporting requirements, two years after the effective date of this act and with a majority vote of the Governing Body, if there are two consecutive reports with no data. (Sec. 1)

3. Mandates a public power entity that conducts integrated system planning include extra high load factor customers in the entity's load growth projections for the integrated system plan. (Sec. 1)

Public Service Corporations

4. Requires an electric public service corporation file with the ACC quarterly reports regarding new extra high load factor customers that include the number of:

a. requests for interconnection; and

b. completed interconnections. (Sec. 2)

5. Allows the ACC to suspend the quarterly reporting requirements, two years after the effective date of this act and by a majority vote, if there are two consecutive reports with no data. (Sec. 2)

6. Mandates an electric public service corporation that conducts integrated resource planning include extra high load factor customers in the corporation's load growth projections for the integrated resource plan. (Sec. 2)

7. Allows the ACC to adopt rules that:

a. govern the business transaction with extra high load factor customers;

b. create minimum billing requirements;

c. prescribe the form of contracts that may be used with extra high load factor customers, that include certain factors; and

d. establish a process for the ACC to review and approve all extra high load factor customer contracts, at least 30 days, before the execution of the contract to ensure that certain requirements are met. (Sec. 2)

8. Clarifies that this section does not apply to member-owned electric cooperatives. (Sec. 2)

ACC Workshop

9. Requires the ACC to, within 90 days of the effective date of this act, conduct at least one workshop to determine whether:

a. the utility revenues and costs from extra high load factor customers are resulting in increased or decreased residential bills; and

b. any rules or policies need to be adopted to create a new customer class, specific rate design or cost allocation for extra high load factor customers. (Sec. 3)

Cost of Service Study

10. Mandates certain public service corporations and public power entities to, within 180 days of the effective date of this act, file with their respective regulatory entities a cost-of-service study that shows the cost allocation of serving new extra high load factor customers. (Sec. 4)

11. Exempts member-owned electric cooperatives from this requirement. (Sec. 4)

Miscellaneous

12. Contains a legislative findings clause. (Sec. 5)

Amendments

Committee on Natural Resources, Energy and Water

1. Defines new extra high load factor customers. (Sec. 1, 2)

2. Modifies the requirements of rules adopted by the Arizona Corporation Commission as it relates to this act. (Sec. 2)

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6. Initials CW HB 2756

7. 2/4/2026 Page 0 Caucus & COW

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