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ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2457

 

public utilities; plant construction; colocation

Purpose

Outlines the conditions that allow a utility to construct a new plant without filing for or receiving a certificate of environmental compatibility (certificate).

Background

Any utility that plans to construct a plant, transmission line or both in Arizona must first file an application for a certificate with the Arizona Corporation Commission (ACC). The application must be in a form prescribed by the ACC and be accompanied by information with respect to the proposed type of facilities and description of the site, including the areas of jurisdiction affected and the estimated cost of the proposed facilities and site. A utility may not construct a plant or transmission line within Arizona until it has received a certificate from the Power Plant and Line Siting Committee with respect to the proposed site, affirmed and approved by an order of the ACC which must be issued no less than 30 days or more than 60 days after the certificate is issued by the Power Plant and Line Siting Committee (A.R.S. §§ 40-360.03 and 40-360.07).

A utility is defined as any person engaged in the generation or transmission of electric energy. A plant is defined as each separate thermal electric, nuclear or hydroelectric generating unit with a nameplate rating of 100 megawatts or more for which expenditures or financial commitments for land acquisition, materials, construction or engineering exceeding $50,000 have not been made before August 13, 1971 (A.R.S. § 40-360).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Allows a utility, after providing 30 days' written notice to the ACC and holding at least one public comment session in the county where the relevant plant is located, to construct a new plant without filing for or receiving a certificate for the new plant if:

a)   the new plant is co-located with an extra high load factor customer and the extra high load factor customer has received all applicable zoning entitlements; and

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

2.   Becomes effective on the general effective date.

House Action

AII                  2/12/26      DPA    4-3-0-0

3rd Read           2/25/26                  28-26-6

3rd Read*        3/3/26                    32-22-5-0-1

*on reconsideration

Prepared by Senate Research

March 16, 2026

JT/NRG/ci