Assigned to GOV AS PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
FACT SHEET FOR S.B. 1538
corporation commission; non-thermal generating unit
Purpose
Modifies the definition of plant to include a non-thermal electric generating unit and
increases the nameplate rating threshold from 100 megawatts or more to 200 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 as introduced 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. Modifies the definition of plant as it relates to review by the Committee by:
a) adding a non-thermal electric generating unit; and
b) increasing the nameplate rating from 100 megawatts or more to 200 megawatts or more. FACT SHEET – Amended
S.B. 1538
Page 2
2. Becomes effective on the general effective date.
Amendments Adopted by the Committee of the Whole
• Increases, from 100 megawatts or more to 200 megawatts or more, the nameplate rating of a
plant.
Senate Action
GOV 2/19/25 DP 4-3-0
Prepared by Senate Research
March 4, 2025
AN/SDR/ci