APS Submits Long-Term Energy Agreement with TSMC to the Arizona Corporation Commission

PHOENIX - TSMC Arizona is expanding its advanced semiconductor manufacturing operations in Arizona. To responsibly support that growth, on Nov. 6, 2026, APS filed with the Arizona Corporation Commission (ACC) a proposed 25-year Direct Pricing Contract (DPC) with TSMC Arizona.The contract is designed to meet TSMC's increasing energy needs, ensure that the costs of its growth are not shifted to other APS customers, and support APS's commitment to reliable service for existing customers.

Who pays to develop additional energy resources?

The filing states that TSMC Arizona will make long-term financial commitments associated with new generation resources and service infrastructure, along with TSMC's usage of shared system resources, which will protect other APS customers from costs associated with its growth.

The proposed agreement aligns with APS's Pledge for Responsible Energy Growth, which guides how APS plans for and serves new energy demand.

How does the agreement protect reliable service?

The agreement will help APS serve TSMC Arizona's long-term electricity demands, while ensuring high standards of reliability and preserving system capacity for existing homes, hospitals, schools, businesses, and communities. Some additional infrastructure being built will become part of the generation and transmission resources on APS's grid, helping to maintain top-tier reliability for all APS customers. APS will continue to protect current customers while responsibly planning for Arizona's future energy needs.

How is APS serving TSMC?

TSMC's north Phoenix advanced semiconductor fabrication facility has been a fixture in APS's service territory since 2020. The proposed agreement builds on this successful partnership and affirms APS and TSMC's shared commitment to ensuring that other customers are protected as TSMC continues to grow in Arizona.

What happens next?

APS has filed the proposed Direct Pricing Contract, (a long-term agreement designed for customers with extra-large energy needs) with the ACC for its review and approval.

About APS

APS serves 1.5 million homes and businesses in 11 of Arizona's 15 counties and is a leader in safely delivering reliable affordable electricity in the Southwest. APS maintains a diverse range of energy resources, including nuclear from the Palo Verde Generating Station, natural gas, coal, solar, wind and energy storage - a mix that's about 58% clean. With 140 years of experience serving Arizona, APS is the main subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

Media Contact:

Jill Hanks, [email protected], 602-330-5455