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ARIZONA STATE SENATE

Fifty-Seventh Legislature, First Regular Session

 

REVISED

FACT SHEET FOR S.B. 1538

 

corporation commission; non-thermal generating unit

Purpose

Modifies the definition of plant to include an outlined non-thermal electric generating unit with a nameplate rating of 100 megawatts or more.

Background

The Arizona Corporation Commission (ACC) is responsible for inspecting, certificating, classifying and setting rates, charges, rules, contracts, and accounts for public service corporations, including corporations other than municipal engaged in furnishing gas, oil or electricity for light, fuel or power. The ACC oversees the electric power industry in Arizona but does not have authority over electric service provided by a city, municipality, irrigation district, electric district or utilities operated by tribal authorities (Ariz. Const. art. 15; ACC).

The Power Plant and Transmission Line Siting Committee (Committee) within the ACC provides a single forum for the expeditious review of all matters concerning the location of electric generating plants and transmission lines in a single proceeding that enables affected parties to participate in the decisions. Before beginning construction of any plant in Arizona, a person must file a plan with the Committee that includes: 1) the purpose to be served by each plant; 2) the expected capacity factor; 3) the type of fuel to be used; 4) the estimated date by which the plant will be in operation; and 5) the size and proposed route of any transmission lines or locations of each plant. Plant, as it relates to the Committee, means each separate thermal electric, nuclear or hydroelectric generating unit with a nameplate rating of 100 megawatts or more for which expenditures or financial commitments for land acquisition, materials, construction or engineering exceeding $50,000 have not been made before August 13, 1971 (A.R.S. Title 40, Chapter 2,
Article 6.2
).

The Joint Legislative Budget Committee fiscal note on S.B. 1538 estimates that the addition of non-thermal energy generation facilities to the definition of plant would increase the workload for the Committee. The ACC estimates that the increase would cost $232,000 and two full-time equivalent positions from the Utility Siting Fund to review the Committee's findings prior to ACC approval. Of the estimated cost, $210,000 would be ongoing for salaries and
employee-related expenses and $22,000 would be one-time funding for the cost of training, certifications and equipment (JLBC fiscal note).

Provisions

1.   Adds, to the definition of plant relating to the Committee, a non-thermal electric generating unit with a nameplate rating of 100 megawatts or more for which expenditures or financial commitments for land acquisition, materials, construction or engineering exceeding $50,000 have not been made before August 13, 1971.

2.   Becomes effective on the general effective date.  

Revision

ยท Updates the fiscal impact statement.

Prepared by Senate Research

March 3, 2025

AN/SDR/ci