Shown verbatim: the complete text as captured from the official page posted by the Arizona Legislature, fetched 2026-08-28. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the chaptered version. The official bill page.
Senate Engrossed House Bill utilities; high load factor customers State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026 HOUSE BILL 2756 AN ACT amending title 30, arizona revised statutes, by adding chapter 2; repealing title 30, chapter 2, Arizona Revised Statutes; amending title 40, chapter 2, article 1, arizona revised statutes, by adding section 40-207; repealing section 40-207, Arizona Revised Statutes; 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. Public power entities; new extra high load factor customers; semiannual reports 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 semiannual reports regarding new extra high load factor customers, as defined by the public power entity, that include both of the following with respect to the immediately preceding six-month period: 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 semiannual 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 six-month periods. The governing body may vote to reinstate the semiannual report requirement at any time. END_STATUTE Sec. 2. Delayed repeal Title 30, chapter 2, Arizona Revised Statutes, as added by this act, is repealed from and after December 31, 2033. Sec. 3. Title 40, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 40-207, to read: START_STATUTE40-207. Electric service corporations; new extra high load factor customers; semiannual reports; rules; exemption A. An electric public service corporation operating in this state shall file with the corporation commission semiannual reports regarding new extra high load factor customers, AS defined by the corporation commission, that include both of the following WITH RESPECT TO THE IMMEDIATELY PRECEDING six-month period: 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 semiannual 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 six-month periods. The corporation commission may vote to reinstate the semiannual report requirement at any time. C. The corporation commission may, pursuant to article XV, section 3, Constitution of Arizona, ESTABLISH REQUIRED cHARACTERISTICS THAT GOVERN THE TERMS FOR ELECTRIC SERVICE that is PROVIDED TO EXTRA HIGH LOAD FACTOR CUSTOMERS THAT ARE NOT OTHERWISE PROVIDED SERVICE UNDER A preexisting ELECTRIC PUBLIC SERVICE CORPORATION TARIFF. THE REQUIRED CHARACTERISTICS MAY INCLUDE ALL OF THE FOLLOWING AND ENSURE FLEXIBILITY FOR AN ELECTRIC PUBLIC SERVICE CORPORATION TO DEFINE SPECIFIC TERMS FOR EACH TRANSACTION ON A CASE-BY-CASE BASIS: 1. PROVISIONS FOR MINIMUM BILLING REQUIREMENTS. 2. MINIMUM CONTRACT LENGTH. 3. PROVISIONS THAT GOVERN EARLY EXIT OR TERMINATION OF SERVICE BEFORE THE TERM OF A CONTRACT CONCLUDES. 4. REQUIREMENTS FOR CUSTOMER-PROVIDED SECURITY, GUARANTEES OR COLLATERAL TO SUPPORT SERVICE CONTRACT OBLIGATIONS. 5. REQUIREMENTS FOR EXTRA HIGH LOAD FACTOR CUSTOMER PAYMENTS TO COVER THE COSTS OF ANY INFRASTRUCTURE IMPROVEMENTS, ADDITIONS OR expansions THAT ARE NECESSARY TO FACILITATE SERVICE TO THE CUSTOMER, WHICH SHALL BE SUPPORTED BY SCHEDULES that are FILED BY THE ELECTRIC PUBLIC SERVICE CORPORATION THAT DEMONSTRATE THE PROTECTION OF NON-extra HIGH LOAD FACTOR CUSTOMERS FROM subsidizing extra-high load factor customers. D. This section does not apply to Member-owned electric cooperatives or electric public service corporations that serve forty thousand connections or less. Sec. 4. Delayed repeal Section 40-207, Arizona Revised Statutes, as added by this act, is repealed from and after December 31, 2033. Sec. 5. Cost-of-service studies; exemption Within one hundred eighty days after the effective date of this act: 1. On the corporation commission's request, 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 or electric public service corporations that serve forty thousand connections or less. 2. On the governing body's request, 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. 6. 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. 3. Supports policies that establish new customer classes, rate designs and cost allocation formulas for extra high load factor customers that are reasonable and necessary to prevent cost shifts to residential customers from extra high load factor customers.
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