The Arizona Corporation Commission announced on April 10 that it will host a workshop focused on Large Load User Development in Arizona. The event is scheduled for Thursday, April 16, at 9:00 a.m. in Hearing Room 1 at the Commission’s offices located at 1200 W. Washington Street, Phoenix.
The upcoming workshop aims to address policies related to data center customers and other large electricity users. Commissioner Kevin Thompson initiated the docket in 2025 with the goal of increasing transparency regarding rates that impact both data centers and the public. Thompson said he wants to further protect residential and small business customers from future cost shifts associated with building and servicing new infrastructure connected to these large users. Potential solutions under consideration include developing new tariffs, rate structures, or even creating a new tier of customers.
“The Commission must be proactive in reviewing existing policies and potentially forming new policies or improving existing practices to continue to safeguard ratepayers and to ensure that large users like data centers shoulder the costs of building new electricity generation and infrastructure,” said Commissioner Kevin Thompson. “The Commission works vigorously to ensure that our regulated utilities are not only prepared to produce enough electricity to meet peak demand during the hot summer months, but also to expand generation and infrastructure in an affordable manner to handle the influx of new residential, commercial, and industrial growth.”
Workshop discussions will review utility mechanisms currently being implemented for data center and other large load customers both within Arizona and elsewhere. The agenda includes exploring behind-the-meter as well as in-front-of-the-meter solutions provided by independent power producers, along with user-funded utility scale generation options designed for meeting substantial power needs.
Currently in Arizona, the data center industry has been contributing its share toward expanding power generation capacity through established utility rate structures set by standard commission mechanisms. However, with about 1,300 megawatts (MW) of data center development underway statewide—and more than 4,000 MW planned—Thompson said balancing demand from these facilities against financial protections for other ratepayers remains crucial so they do not absorb rising energy costs tied directly to serving large load users.
Stakeholders and members of the public are encouraged by the commission to submit comments related to this issue through its eDocket system using Docket No. E-00000A-25-0069.
