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AG Mayes plans appeal of ACC-approved Project Blue energy agreement

AG Kris Mayes 1-13
Katya Mendoza, AZPM News
Arizona Attorney General Kris Mayes listens to a speaker at a town hall in Tucson, on Tuesday, Jan. 13, 2026, at the YWCA of Southern Arizona. Mayes heard from Tucson residents and TEP customers about what they thought about the utility company's rate increase proposal.

Attorney General Kris Mayes says her office is preparing to appeal the Arizona Corporation Commission’s approval of an energy supply agreement between Tucson Electric Power and the developers of the Project Blue data center.

In a statement, Mayes said that the Commission did not respond to her office’s allegations that the energy supply agreement allows TEP and the data center developer to set their own rates.

Mayes, who filed a request for a rehearing earlier this month, continues to question redactions within the agreement and question why intervenors such as the City of Tucson weren’t allowed to cross-examine during the December hearing.

The Commission said in a statement that the requests to revisit the agreement were automatically denied because no new action was taken by the regulator within a 20-day statutory period. Therefore the Commission’s decision stands.

The Commission also said staff found that there would be no cost-shift onto customers and that the agreement may even improve energy reliability.

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Katya Mendoza is an award-winning environmental journalist covering water, energy, data centers, mining and public policy with a focus on resource management and its impacts on Arizona communities.