Official Summary Text
HB2756 - 572R - Senate Fact Sheet
Assigned to
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PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
H.B. 2756
utilities; high
load factor customers
Purpose
Requires public power entities and public service corporations in Arizona
to file semiannual reports relating to new extra high load factor customers and
outlines exemptions, rulemaking and reporting requirements.
Background
A public power entity is any municipal corporation, city, town or other
political subdivision that is organized under state law, that generates,
transmits, distributes or otherwise provides electricity and that is not a
public service corporation and does not include: 1) a city or town with a
population fewer than 75,000 persons; 2) a power district, electrical district,
irrigation and water conservation district or multi-county water conservation
district; and 3) the Arizona power authority (
A.R.S.
� 30-801
). A public service corporation is any person or corporation that
provides electric or communication service to the public by means of electric
or communication facilities (
A.R.S.
� 40-341
).
In supervising and regulating public service corporations, the Arizona
Corporation Commission's (ACC) authority is confirmed to adopt rules to: 1) protect
the public against deceptive, unfair and abusive business practices, practices
related to deposit requirements and reconnection fees, intrusive and abusive
marketing, deceptive or untrue advertising practices and other statutorily
prescribed practices; 2) provide that customer information, account information
and related proprietary information are confidential unless specifically waived
by the customer in writing; and 3) ensure that public service corporations that
employ the services of a contractor for interior household energy service,
either directly or through any affiliate, require the contractors and
subcontractors to be licensed by the Registrar of Contractors and comply with
all municipal permit and inspection standards and applicable life safety codes
(
A.R.S.
� 40-202
).
There is no anticipated fiscal impact to the state General Fund
associated with this legislation.
Provisions
Public
Power Entities
1.
Requires a public power entity that serves more than 1,000,000
connections in Arizona to 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, with respect to the immediately
preceding six month period, the number of:
a)
requests
for interconnection; and
b)
completed interconnections.
2.
Allows
the governing body of the public power entity, beginning two years after the
general effective date, to suspend the semiannual report requirement by a
majority vote of the governing body if the numbers reported by the public power
entity are zero for at least two consecutive six-month periods.
3.
Allows
the governing body to vote to reinstate the semiannual report requirement at
any time.
Electric
Service Corporations
4.
Requires an electric public service corporation operating in Arizona to
file with the ACC
semiannual reports regarding
new extra high load factor customers, as defined by the ACC, that include, with
respect to the immediately preceding six-month period, the number of:
a)
requests
for interconnection; and
b)
completed interconnections.
5.
Allows
the ACC, beginning two years after the general effective date, to suspend the semiannual
report requirement by a majority vote if the numbers reported by the electric
public service corporation are zero for at least two consecutive six-month
periods.
6.
Allows
the ACC to vote to reinstate the semiannual report requirement at any time.
7.
Allows
the ACC to 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 pre
-
existing electric public
service corporation tariff.�
8.
Allows the outlined required characteristics to 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:
a)
provisions
for minimum billing requirements;
b)
minimum
contract length;
c)
provisions
that govern early exit or termination of service before the term of a contract
concludes;
d)
requirements
for customer-provided security, guarantees or collateral to support service
contract obligations; and
e)
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 must be supported by
schedules that are filed by the electric public service corporation and that
demonstrate the protection of non-extra high load factor customers from subsidizing
extra-high load factor customers.
9.
Exempts
member-owned electric cooperatives or electric public service corporations that
serve 40,000 connections or less from the prescribed reporting and rulemaking
requirements.
Cost
of Service Study
10.
Requires an electric public
service corporation operating in Arizona, on the ACC's request and
within
180 days of the general effective date, to file with the ACC a cost-of-service
study that shows the cost allocation of serving new extra high load factor
customers.�
11.
Requires
a public power entity that services more than 1,000,000 connections in Arizona,
on the governing body's request and within 180 days of the general effective
date, to 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.
12.
Exempts
member-owned electric cooperatives or electric public service corporations that
serve 40,000 connections or less from the cost-of-service study requirements.
Miscellaneous
13.
Repeals
the reporting and rulemaking requirements for outlined public power entities
and electric service corporations on January 1, 2034.
14.
Contains
a statement of legislative findings.
15.
Becomes
effective on the general effective date.
Amendments Adopted by
Committee of the Whole
1.
Extends the reporting requirement deadlines relating to new extra high
load factor customers for electric public service corporations and public power
entities from quarterly to semiannually.
2.
Exempts electric public service corporations that serve 40,000
connections or less from the outlined reporting, rulemaking and the
cost-of-service study requirements.
3.
Removes the requirement that a public power entity or electric public
service corporation that conducts integrated system planning include extra high
load factor customers in the public power entities or electric public service
corporations load growth projections for the integrated system plan.
4.
Specifies that the cost-of-service study requirement for electric public
service corporations and public power entities that serve over 1 million
connections only applies if the cost-of-service study was requested by the
Arizona Corporation Commission for electric public service corporations or by
the governing body for outlined public service corporations.
5.
Repeals the semiannual reporting requirements relating to new extra high
load factor customers for public power and entities and electric service
corporations on January 1, 2034.
6.
Makes technical and conforming changes.
House Action
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Senate
Action
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Prepared by
Senate Research
April 16, 2026
SB/NRG/hk
Current Bill Text
Read the full stored bill text
Chapter 0111 - 572R - S Ver of HB2756
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_STATUTE
30-301.
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_STATUTE
40-207.
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.