Tucson and Mayes request hearing on Project Blue data center project

By Reagan Priest | State Affairs

Attorney General Kris Mayes and the City of Tucson are asking the Arizona Corporation Commission to reconsider its approval of an energy supply agreement for the controversial “Project Blue” data center in Pima County.

In rehearing requests filed on Dec. 29 and Dec. 30, attorneys for Mayes’ office and the City of Tucson argue the commission did not adequately evaluate the potential ratepayer impacts of approving the agreement between Tucson Electric Power, Beale Infrastructure and Humphrey’s Peak Power. The agreement outlines how TEP will supply electricity to the data center and the rates and tariffs the data center customer will be charged.

“…far from employing its plenary powers to ensure a full vetting of the TEP and Beale/Humphrey’s ESA, the Commission rubber-stamped it,” attorneys for Mayes wrote. “… the Commission approved the proposed contract without change and without holding an evidentiary hearing that would have enabled interested parties, the public, and the Commission itself to verify the claims by TEP, Beale and Humphrey’s Peak concerning the merits of the Agreement.”

Both Mayes and the City of Tucson are asking the commission to vacate its Dec. 3 decision approving the agreement and hold a full evidentiary hearing before taking another vote on the matter. Commission Chair Kevin Thompson criticized the move in a statement on Jan. 5 while alluding to Mayes’ time as a commissioner in the early 2000s.

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