Arizona Corporation Commission Upholds TEP's Energy Supply Agreement with Beale Infrastructure
The Arizona Corporation Commission upheld Tucson Electric Power's Energy Supply Agreement with Beale Infrastructure Group, citing benefits such as improved reliability and potential cost reductions for residential customers. Attorney General Kris Mayes announced plans to appeal, criticizing the agreement for its lack of transparency and potential negative impact on customers. The ACC's decision, made on December 3, 2025, rejected rehearing requests due to a missed deadline.
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The Arizona Corporation Commission upheld Tucson Electric Power's Energy Supply Agreement with Beale Infrastructure Group after rehearing requests were denied due to a missed 20-day deadline. The ACC's December 3, 2025, decision indicated that the agreement would not harm system reliability, shift costs to other customers, and could lower fixed costs for residential ratepayers.
Attorney General Kris Mayes announced plans to appeal, criticizing the lack of transparency and an alleged failure to consider the agreement's impact on customers. The ACC found that the agreement would improve reliability and provide customer protections. Mayes argued that the deal, related to the Project Blue data center, allows TEP and the developer to set their own rates and is not in the best interest of Arizona families.
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