REFERENCE TITLE: large load customers; energy costs

 

 

 

 

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

 

 

 

SB 1380

 

Introduced by

Senators Sundareshan: Alston, Bravo, Diaz, Epstein, Fernandez, Gonzales, Hatathlie, Kuby, Miranda, Ortiz, Sears

 

 

 

 

 

 

 

 

AN ACT

 

amending title 30, arizona revised statutes, by adding chapter 2; amending title 40, chapter 1, article 1, arizona revised statutes, by adding section 40-107; 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

START_STATUTE30-301. Large load customers; energy costs; definitions

A. A public power entity shall require a large load customer to pay for the energy costs, including increased fuel requirements, generation costs and transmission costs, that are incurred by the large load customer and that would not have been incurred but for the electric demand of the large load customer. The energy costs that are incurred by a large load customer may not be passed on to other public power entity customers.

B. For the purposes of this section:

1. "large load customer":

(a) Means a customer that uses at least fifty megawatts at a single site during peak demand.

(b) Includes any of the following:

(i) Industrial facilities.

(ii) Data centers. For the purposes of this item, "data centers" means a facility, a campus of facilities or an array of interconnected facilities in this state that is used by an entity or other business enterprise to operate, manage or maintain a computer, group of computers or other organized assembly of hardware and software for the primary purpose of processing, storing, RETRIEVING or transmitting data.

(iii) cryptocurrency mining centers.

(iv) Manufacturing and industrial plants.

(v) Hydrogen production facilities.

(vi) Large buildings.

(vii) Any other large load customer.

2. "Public power entity" has the same meaning prescribed in section 30-901.END_STATUTE

Sec. 2. Title 40, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 40-107, to read:

START_STATUTE40-107. Large load customers; energy costs; definition

A. The corporation commission shall require a large load customer to pay for the energy costs, including increased fuel requirements, generation costs, distribution system costs and transmission costs, that are incurred by the large load customer and that would not have been incurred but for the electric demand of the large load customer. The energy costs that are incurred by a large load customer may not be passed on to other public service corporation customers.

B. For the purposes of this section, "large load customer":

1. Means a customer that uses at least fifty megawatts at a single site during peak demand. 

2. Includes any of the following:

(a) Industrial facilities.

(b) Data centers.  For the purposes of this subdivision, "data centers" means a facility, a campus of facilities or an array of interconnected facilities in this state that is used by an entity or other business enterprise to operate, manage or maintain a computer, group of computers or other organized assembly of hardware and software for the primary purpose of processing, storing, RETRIEVING or transmitting data.

(c) cryptocurrency mining centers.

(d) Manufacturing and industrial plants.

(e) Hydrogen production facilities.

(f) Large buildings.

(g) Any other large load customer. END_STATUTE