Mayes challenges Project Blue energy deal, seeks rehearing | Top Stories

TUCSON, Ariz. (KVOA) – Arizona Attorney General Kris Mayes is challenging a recent decision by the Arizona Corporation Commission, which approved an energy supply agreement for the Project Blue Data Center. Mayes is pushing for a rehearing on the matter. 

Mayes has filed a request for a rehearing, telling News 4 Tucson that the Arizona Corporation “Commission made a huge mistake” in approving the contract.

“It looks like TEP and the data center company have agreed together to allow the company to pick its own price and to pick its own tariff without the involvement of the (Arizona) Corporation Commission,” Mayes said.

Tucson Electric Power (TEP) has refuted Mayes’ claims. The company stated in part, the agreement does not give “TEP or Project Blue the right to ‘set their own electricity rates without Commission oversight,’” and added, “The Project will pay for service under TEP’s Commission-approved rate for customers that take the commission-approved rate for customers that take service at our highest retail voltage.”

Mayes is concerned that TEP customers might face significant rate increases due to the agreement. “At the very least we all deserve to know what is happening in this case and what the terms of this contract are. They need to unredact that,” Mayes told News 4 Tucson.

Arizona Corporation Commission Chair Kevin Thompson criticized Mayes’ actions, calling them “performative band wagoning theater.” He mentioned that if the agreement was rejected, “TEP would still be able to move forward under existing tariffs and ratepayers would not realize the enhanced protections secured in this agreement that will actually reduce transmission costs for all other customers.”

Nicole Garcia, spokesperson for the commission, said that if a request for rehearing is not granted within 20 business days, it is considered denied. The application was submitted on Dec. 30, with Jan. 28 potentially being that deadline, though Garcia on Monday night was unable to confirm this date.