HB 2756: utilities; high load factor customers - Arizona

Senate Engrossed Version (04/16/2026) → Chaptered Version · 3 edits

MINOR

The bill was formally enacted into law as Chapter 111 on June 4, 2026, replacing its previous draft status. The substantive text regarding public power entities and interconnection reporting remained largely unchanged, with only minor formatting adjustments and the addition of the official approval dates.

Scope change

The bill's scope and applicability remain unchanged; it continues to regulate public power entities serving over one million connections in Arizona.

TIMELINE

The document status changed from a draft 'Senate Engrossed Version' to an official 'Chaptered Version,' indicating the bill has been signed into law.

Official approval dates were added, noting the Governor's approval on June 4, 2026, and filing with the Secretary of State on June 5, 2026.

TECHNICAL

Minor formatting changes were made, including the removal of draft headers and the insertion of blank lines before the final approval signatures.

House Engrossed Version (02/23/2026) → Senate Engrossed Version (04/16/2026) · 5 edits · Apr 16, 2026

MODERATE

The bill was amended to change reporting requirements from quarterly to semiannual, extend the suspension of these reports to six-month periods, and add exemptions for smaller utility providers. Additionally, the bill now includes a delayed repeal clause, meaning the new rules will automatically expire in 2033 unless renewed.

Scope change

The bill's applicability was narrowed by adding an exemption for electric public service corporations serving 40,000 or fewer connections and member-owned electric cooperatives from certain reporting and cost-study requirements.

REQUIREMENT

Reporting frequency for large public power entities and electric service corporations changed from quarterly to semiannual.

The threshold for suspending reporting requirements changed from two consecutive quarters to two consecutive six-month periods.

TIMELINE

New sections added to repeal the newly created Title 30, Chapter 2 and Section 40-207 automatically on December 31, 2033.

ELIGIBILITY

Exemptions added for member-owned electric cooperatives and electric public service corporations serving 40,000 or fewer connections from cost-of-service study and reporting requirements.

DEFINITION

Clarified that 'extra high load factor customers' are defined by the commission rather than the utility entity.

Introduced Version → House Engrossed Version (02/23/2026) · 5 edits · Apr 16, 2026

MODERATE

The bill was reorganized and simplified to remove complex contract review procedures and replace them with flexible rules allowing utilities to define specific terms case-by-case. The legislative findings were updated to explicitly support preventing cost shifts to residential customers, and the bill's title was changed to reflect 'high load factor' instead of 'extra high load factor'.

Scope change

The bill's scope remains focused on regulating utilities serving large industrial customers, but the specific mechanisms for oversight were streamlined to give utilities more flexibility in setting contract terms.

REQUIREMENT

Replaced the requirement for the Corporation Commission to pre-approve every contract with a mandate to adopt flexible rules allowing utilities to define specific terms on a case-by-case basis.

Removed the requirement for the Corporation Commission to conduct a workshop within 90 days to determine if new customer classes or rate designs are needed.

DEFINITION

Changed the terminology from 'extra high load factor' to 'high load factor' in the bill title and some sections.

ENFORCEMENT

Updated the legislative findings to explicitly state the goal of preventing cost shifts from high load factor customers to residential customers.

TECHNICAL

Removed references to specific contract characteristics like 'grid upgrades' and replaced them with broader categories like 'infrastructure improvements' and 'security requirements'.

utilities; high load factor customers

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