HB 2756

Senate Engrossed
  House Bill
utilities; high load
  factor customers
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 111
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Statutes, as added by this act, is repealed from and after December 31, 2033.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. END_STATUTE
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.
APPROVED BY THE GOVERNOR JUNE 4, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 5, 2026.