Phoenix, Ariz.— On April 16, 2026, the Arizona Corporation Commission (ACC) hosted a Large Load Users Development Workshop to address the rapid growth of large load users, like data centers and large industrial, and the importance of integrating them into the electric grid without increasing costs for other ratepayers (E-00000A-25-0069).

“I would like to thank Commissioner Thompson for organizing this timely and highly informative workshop,” said Chairman Nick Myers. “Today’s workshop confirmed that Arizona remains a preferred location for data centers and other extra high load industries, while our regulatory policies continue to protect other ratepayers from those costs.”

The workshop included presentations from ACC Staff, the Residential Utility Consumer Office (RUCO), the Data Center Coalition (DCC), independent power producers, the Goldwater Institute, and from Tucson Electric Power (TEP), Salt River Project (SRP), and Arizona Public Service (APS).

Some highlights from the workshop include:

• No Cost Shifts to Other Customers:
  • All the stakeholders, including data centers, agree that large load users— the “cost causers”— should pay for all the costs they cause and that other ratepayers should not have to pay for those costs.   
• Tariffs and Energy Service Agreements (ESA):
  • The Commission’s hybrid approach of using utility-specific extra high load tariffs in combination with energy service agreements provides needed certainty to large load users while also providing the needed flexibility and additional customer protections.
• Customer Protections:
  • Some of the customer protections included in utility tariffs and energy service agreements include longer contract terms, minimum-bill terms, power factor requirements, termination provisions, collateral and credit requirements, and direct cost assignment of generation and transmission and distribution facilities.   

“While other states are losing extra high load industries, Arizona’s lower electric costs, proven reliability, and regulatory environment continue to attract significant private investment,” stated Chairman Myers. “With properly structured tariffs and ESAs that prevent cost-shifts, data centers and other large load customers can help drive down rates and serve as powerful engines of local economic growth by expanding tax bases and creating high-quality jobs.”

For those unable to attend, the workshop can be viewed in its entirety on the Commission’s website. Presentations by utilities and stakeholders can be found here.

For more information, please contact Chairman Myers at myers-web@azcc.gov.