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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

Checked against official source text during the last sync.

Large Load Customers; Energy Costs

This bill requires large electricity users to pay for the extra costs their high usage causes and prevents them from passing those costs onto regular customers.

What This Bill Does

  • Defines a 'large load customer' as someone using at least fifty megawatts of power during peak times, including industrial facilities, data centers, cryptocurrency mining centers, manufacturing plants, hydrogen production facilities, large buildings, and other similar users.
  • Requires public power entities to charge these large customers for the extra costs their high usage causes, such as increased fuel needs, generation expenses, transmission fees, and distribution system costs.
  • Stops large load customers from passing on these additional costs to regular electricity customers.

Who It Names or Affects

  • Large electricity users who consume at least fifty megawatts during peak times.
  • Public power entities that supply electricity to both large and regular customers.

Terms To Know

large load customer
A business or facility using a significant amount of electricity, defined as at least fifty megawatts during peak demand times.
public power entity
An organization that provides public utility services like electricity to the community.

Limits and Unknowns

  • The bill does not specify how these extra costs will be calculated or enforced.
  • It is unclear what happens if a large load customer cannot afford to pay for their additional energy costs.

Bill History

  1. 2026-01-27 Senate

    Senate second read

  2. 2026-01-26 Senate

    Senate Rules: None

  3. 2026-01-26 Senate

    Senate Natural Resources: None

  4. 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