Cooperative outlines its responsibilities, regulatory requirements, and potential financial benefits under discussion for members and local communities.
SIERRA VISTA, Ariz. (Nov. 10, 2026) – Following Wednesday's community town hall hosted by SpaceX concerning the proposed Tombstone Resources LLC data center in Cochise County, Sulphur Springs Valley Electric Cooperative (SSVEC) is providing additional information about its role in evaluating electric service for the development and the potential implications for cooperative members.
SSVEC is neither endorsing nor opposing the proposed development. Its responsibility is to evaluate requests for electric service while protecting the reliability and affordability of service for existing members.
Understanding SSVEC's Role
SSVEC does not determine which businesses locate within its service territory. Decisions about land use and development approvals rest with the appropriate governmental authorities. SSVEC's responsibility is to evaluate requests while protecting the safety, reliability, and affordability of service for its existing members.
SSVEC also has an obligation to protect confidential member and prospective member information. For that reason, announcements about proposed developments come from the developers.
“Our members deserve to understand our role in a project of this magnitude,” said Jason Bowling, SSVEC Chief Executive Officer. “We don't select the businesses that come to our service territory, but we take seriously our responsibility to ensure that serving them does not compromise the interests of our existing members. That responsibility guides every discussion we're having.”
Protecting Existing Members
In August 2026, the Arizona Corporation Commission (ACC) approved a joint application submitted by SSVEC and five other Arizona electric cooperatives establishing a streamlined process for reviewing electric service agreements involving large-load customers. Under Docket No. E-01773A-26-0123, the review process includes determining whether proposed agreements serve the public interest, provide reasonable rates, and ensure that no other customer class subsidizes the large-load customer's commercial activities.
SSVEC and its wholesale power provider, Arizona Electric Power Cooperative (AEPCO), are applying this framework in their discussions with the developer.
SSVEC's negotiating priorities include ensuring that costs attributable to serving the project are assigned to the project itself, establishing appropriate financial safeguards, and maintaining safe and reliable electric service for existing members.
Any final electric service agreement will require ACC review and approval. The review process is public, allowing members to follow the proceedings and submit comments to the ACC.
Potential Financial Benefits for Members and Communities
Beyond these protections, SpaceX has publicly described several potential benefits, including direct credits on eligible residential members’ bills and ongoing contributions to the SSVEC Foundation. These items are part of ongoing discussions.
As discussed publicly by SpaceX during its town hall and described in the developer's special use permit application, these potential benefits include direct credits on eligible residential members' electric bills, subject to ACC review and approval, and ongoing financial contributions to the SSVEC Foundation for charitable and community programs.
The proposed development could also generate additional revenue for SSVEC through the electric service arrangements being negotiated. If realized, that revenue could support the cooperative's financial position, subject to appropriate financial and Board oversight.
These are potentially meaningful opportunities. However, no final electric service agreement has been reached, and none of these benefits is guaranteed. Their amount and timing will depend on continued negotiations, applicable regulatory approvals, successful project construction and energization, and actual electric consumption. The use of cooperative revenues would also remain subject to appropriate financial and Board oversight.
SSVEC will provide additional details as agreements are finalized and reliable estimates become available.
Continuing Our Commitment to Members
SSVEC recognizes that the proposed development has generated considerable public interest, including questions and concerns about its potential impact on surrounding communities. Those concerns deserve thoughtful consideration through the applicable public review processes.
“Our position is to advocate for our members and the communities we serve,” Bowling said. “If this development moves forward, we want to ensure that our members are protected and that any benefits to them are real. If it does not, we'll continue doing what we've always done: providing safe, reliable, and affordable electric service to the people who own this cooperative.”
SSVEC remains committed to keeping members informed as negotiations and regulatory proceedings progress.
For additional information, visit www.ssvec-projectinfo.org.