First-order effects

• APS would shift a materially larger share of electricity costs onto data centers under its proposed rate structure, while seeking a smaller 14.5% increase for households.
• Data-center operators and prospective projects in APS territory would need to reassess operating costs and the economics of new capacity; the proposal explicitly tests whether large loads should bear more of the system expansion they drive.

Second-order effects

• The case gives utilities in other fast-growing data-center markets a concrete precedent for proposing distinct large-load tariffs rather than spreading infrastructure costs broadly across residential customers.
• Higher power charges can become a location-selection variable for data-center developers, alongside available generation and grid capacity, potentially strengthening the advantage of regions able to offer both dependable supply and predictable cost allocation.

Third-order effects

• If regulators increasingly approve differentiated rates for data centers, electricity pricing may move toward a clearer user-pays model for large new loads, reshaping how grid-expansion costs are allocated between hyperscale customers and other ratepayers.
• The lasting issue is not simply the level of rates but whether utilities can build enough generation and network capacity on schedules that support data-center growth without repeated broad-based rate cases; outcomes will depend on regulatory rulings and actual demand growth.