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Arizona Attorney General Urges Utility Regulators to Investigate Alleged $600 Million Data Center Cost Shift

Attorney General Kris Mayes requested that the Arizona Corporation Commission open a formal inquiry into whether Arizona Public Service shifted hundreds of millions in power supply costs from data centers onto residential ratepayers.

Gwen Pruett

October 10, 20262 min read

Power grid - illustration, Jake Team LLC

Queen Creek, Arizona — Arizona Attorney General Kris Mayes requested that state utility regulators launch a formal inquiry into whether the state's largest power provider improperly transferred nearly $600 million in energy expenses from commercial data centers onto other utility customers across recent billing cycles.

In a formal letter delivered to Arizona Corporation Commission Chairman Nick Myers and fellow commissioners, Mayes pointed to regulatory docket filings submitted earlier this month by an independent utility analyst. That evaluation asserted that Arizona Public Service Company utilized its Power Supply Adjuster mechanism to allocate roughly $587 million in infrastructure and generation costs generated by massive industrial consumers to general system ratepayers across the 2023 to 2025 calendar years. The inquiry request lands as the utility actively petitions the regulatory commission for a separate annual rate adjustment totaling $608.7 million.

> "APS is asking Arizonans to pay for a $608 million annual rate increase at the same time it may have passed almost $600 million in costs from data centers and other large energy users onto them. Before the Commission approves any APS rate increase, Arizonans deserve answers." — Attorney General Kris Mayes

Utility representatives and commission staff leaders have disputed the external assessment, characterizing the study as an oversimplification of the adjustment formula that does not accurately reflect how generation charges are recovered. Mayes countered that regulators should compel the utility to disclose underlying billing calculations and fuel ledger records before rendering any final decisions on the requested rate increase, noting that the state constitution charges regulators with ensuring electricity rates remain just and reasonable, in accordance with cost causation principles.

Queen Creek is an East Valley municipality located across Maricopa and Pinal counties, situated in a regional growth corridor where commercial technology campus developments, regional power infrastructure, and utility rate adjustments directly influence local household budgets.

Sources: Arizona Attorney General's Office announcement (October 2026): https://www.azag.gov/press-release/attorney-general-mayes-urges-arizona-corporation-commission-investigate-whether-aps

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Gwen Pruett

Gwen Pruett reports on local business, new openings, and economic development in Queen Creek.

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