Project Blue Data Center Energy Supply Agreement

awarded

Tucson Electric Power (TEP) has an energy supply agreement to serve the initial phase of a new data center project called Project Blue. The agreement ensures that the data center pays the standard regulated rate for large, high-voltage customers, covering their fair share of power generation and service costs. The agreement includes financial guarantees to protect TEP customers from negative impacts if the project does not operate as expected. Future phases of the project will require new generating resources and will have agreements ensuring fair cost allocation.