Assigned to NR FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1501
grid security; cybersecurity; reviews; commission
Purpose
Requires the Arizona Corporation Commission (ACC) to conduct an annual grid security
review of a plant and make outlined assessments and evaluations when conducting the review.
Requires the ACC to require investor-owned utilities to rectify deficiencies that were identified in
the grid security review.
Background
The ACC regulates investor-owned or privately-owned utilities that provide gas, water,
electricity or telephone service (ACC). The ACC has the power to inspect and investigate the
property, books, papers, business, methods and affairs of any corporation whose stock is offered
for sale to the public and any public service corporation doing business within Arizona (Ariz.
Const. art. 15 § 4). The ACC has the power and authority to enforce its rules, regulations and
orders by the imposition of such fines as the ACC may deem just (Ariz. Const. art. 15 § 19).
The Arizona Constitution allows the Legislature to enlarge the powers and extend the
duties of the ACC and to prescribe rules and regulations to govern proceedings by and before the
ACC (Ariz. Const. art. 15 § 6).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires the ACC to conduct an annual grid security review of a plant.
2. Requires the ACC, in conducting the review, to:
a) research and evaluate the generation and grid management technologies that will
accommodate a two-way flow of electricity and that protect against a physical attack and
cyberattack;
b) assess emerging technologies, including distributed energy resources, microgrids and new
technology battery storage;
c) evaluate new information technology systems and how protections are implemented;
d) require investor-owner utilities to rectify deficiencies that were identified in the grid
security review and develop security plans that evaluate and consider the time and costs
that are associated with implementing changes; and
e) review, every two years, the cybersecurity and grid protection protocols.
3. Requires the outlined security plans to include potential funding sources from private capital
investment for energy development. FACT SHEET
S.B. 1501
Page 2
4. Exempts electric cooperatives and public power entities from the outlined requirement for the
ACC to require investor-owned utilities to rectify identified deficiencies.
5. Contains a statement of legislative findings and intent.
6. Becomes effective on the general effective date.
Prepared by Senate Research
February 7, 2025
SB/slp