Larger Arizona electric utilities must report twice a year how many new "extra high load factor" customers asked to connect and were connected, and the Corporation Commission may set contract terms for serving those customers, until the law ends after 2033.
Official title: utilities; high load factor customers
- September 12, 2026
- Within 180 days after the law takes effect, on request: Cost-of-service studies
- 2 years after the law takes effect: Earliest point when reports may be suspended
- Repealed after December 31, 2033: Reporting requirements and Commission authority over service terms
What changes
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NowElectric public service corporations must file reports with the Corporation Commission every 6 months on new extra high load factor customers, as the Commission defines them. Each report gives the number of requests to connect (interconnection) and the number of completed connections in the prior 6 months. Member-owned electric cooperatives and corporations serving 40,000 connections or less are exempt.
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NowA public power entity serving more than 1 million connections in Arizona must file the same kind of report every 6 months with its own governing body, using its own definition of extra high load factor customers.
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NowStarting 2 years after the law takes effect, the Commission (for corporations) or the governing body (for public power entities) may suspend the reports by majority vote if both numbers were zero for at least 2 six-month periods in a row. It may vote to restart them at any time.
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NowThe Corporation Commission may set required terms for service to extra high load factor customers not already served under an existing tariff (a utility's approved price and service schedule). These may include minimum bills, minimum contract length, rules for leaving a contract early, security or collateral from the customer, and customer payments for needed infrastructure. Infrastructure payments must be backed by utility filings showing other customers are protected from subsidizing these customers. Utilities must keep flexibility to set terms case by case. The same exemptions apply.
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NowWithin 180 days after the law takes effect, if asked, a covered electric public service corporation must give the Commission a study showing how the cost of serving new extra high load factor customers is divided up. A public power entity serving more than 1 million connections must do the same for its governing body if asked.
Who it affects
- Very large electricity customers classified as extra high load factor customers
- Electric public service corporations serving more than 40,000 connections (not member-owned cooperatives)
- Public power entities serving more than 1 million connections in Arizona and their governing bodies
- Arizona Corporation Commission
What you need to do
Nothing.
What the law doesn't answer
- Exactly what counts as an extra high load factor customer; the Commission and each public power entity define it
- Whether the reports or cost studies will be made public
- Any penalty for failing to file a report or study
- Which specific utilities or public power entities are covered
- Whether or when the Commission will set any required service terms
- How, if at all, residential customers' bills will change
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.