Data center costs divide Corporation Commission candidates
Arizona Corporation Commission candidates are divided over whether Arizona Public Service has shifted data center-related infrastructure and power costs onto residential and commercial ratepayers. Democratic candidates Clara Pratte and Jonathon Hill are calling for an independent investigation, while APS and the commission dispute a consumer advocate's analysis alleging $587 million in cost shifts.
A consumer advocate, Abhay Padgaonkar, alleges that Arizona Public Service customers paid $587 million between 2023 and 2025 for costs associated with data center growth. APS and the Arizona Corporation Commission said the analysis was misleading and oversimplified the utility's cost-recovery system, while noting that a related APS rate case remains ongoing.
Democratic Corporation Commission candidates Clara Pratte and Jonathon Hill called for an independent review at a Phoenix press conference, warning that customers could be paying for transmission upgrades and power purchases serving large data center loads. Incumbent Commissioner Kevin Thompson defended APS, saying that growth pays for growth. APS plans to allocate more than 4,000 megawatts to future data center customers and is seeking a 45% rate increase for large-load customers.