SB1380 • 2026

large load customers; energy costs

SB1380 - large load customers; energy costs

Energy

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Priya Sundareshan, Lela Alston, Flavio Bravo, Eva Diaz, Denise “Mitzi” Epstein, Brian Fernandez, Sally Ann Gonzales, Theresa Hatathlie, Lauren Kuby, Catherine Miranda, Analise Ortiz, Kiana Sears
Last action: 2026-01-27
Official status: Senate second read
Effective date: Not listed

Plain English Breakdown

The bill passed both chambers but lacks a listed effective date or governor's signature status in the provided metadata, leaving the start of enforcement uncertain.

SB1380: Energy Costs for High-Usage Customers

This law requires large electricity users to pay their own extra energy costs so that other customers do not have to cover them.

What This Bill Does

Requires public power entities and the corporation commission to charge large load customers for specific energy costs they create, including increased fuel, generation, transmission, and distribution expenses caused by the customer's electric demand.
Prohibits passing these extra costs from large users onto other regular utility or public service corporation customers.

Who It Names or Affects

Customers using at least fifty megawatts of electricity at a single site during peak demand times, including industrial facilities, data centers, cryptocurrency mining centers, manufacturing and industrial plants, hydrogen production facilities, large buildings, and any other large load customer.
Public power entities that manage public utilities in the state.
The corporation commission which regulates public service corporations.

Terms To Know

Large load customer: A user of electricity who consumes at least fifty megawatts at one location during peak demand periods, including industrial facilities, data centers, cryptocurrency mining centers, manufacturing plants, hydrogen production sites, and large buildings.
Data centers: Facilities used to operate computers or software for processing, storing, retrieving, or transmitting data.
Public power entity: A public utility organization as defined in existing state law section 30-901.

Limits and Unknowns

The bill text does not specify an effective date for when these rules begin.
The specific size or usage limits defining 'large buildings' are not detailed beyond the general category name.
The exact method for calculating and billing these costs to customers is not described in the provided text.

Bill History

2026-01-27 Senate
Senate second read
2026-01-26 Senate
Senate Rules: None
2026-01-26 Senate
Senate Natural Resources: None
2026-01-26 Senate
Senate first read

Official Summary Text

SB1380 - large load customers; energy costs

Current Bill Text

Read the full stored bill text

SB1380 - 572R - I Ver

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_STATUTE
30-301.

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_STATUTE
40-107.

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