The Arizona Corporation Commission’s approval of Tucson Electric Power’s Energy Supply Agreement with Beale Infrastructure Group will stand after rehearing requests were automatically denied due to inaction within the 20-day statutory deadline.
The Commission said its Dec. 3, 2025, decision followed standard procedures used for similar utility contracts. ACC staff found the agreement would not harm system reliability, would not shift costs to other customers, and could ultimately lower fixed costs for most residential ratepayers.
Staff also cited added customer protections, including minimum billing requirements and termination penalties supported by financial security.
In response to the decision, Attorney General Kris Mayes' office issued the following statement:
“The ACC did not respond to my office's very serious allegations that the energy supply contract they approved enables TEP and a data center developer to set their own rate. All they offered was this conclusory statement that the ESA is great. If that is the case, why is the agreement full of redactions? Why didn't they hold a full hearing or allow intervenors like the City of Tucson to cross-examine TEP, so the assumptions they are accepting without question can be examined and tested? What are they afraid of?
This Commission is not acting transparently or with accountability. They rushed through an unprecedented deal that violates the Arizona Constitutions' grant of exclusive ratemaking authority to the ACC—authority that cannot be delegated to private parties setting rates behind closed doors. My office is preparing an appeal to this decision and we will continue fighting to protect Arizona families from backroom deals that benefit Big Tech at their expense.”
