Local opinion: Is Project Blue a zombie deal? It sure seems so

Project Blue is closer to a zombie or a ghost than a living, viably closed deal. So why is it still haunting us?

Tucson killed annexation, so why has it come back seemingly undead through a letter of intent, a County memo, and a special filing for energy approval with the Arizona Corporation Commission (ACC, the state utility regulator) by TEP and Humphrey’s Peak Power? I see it all as signs of a zombie deal — one that can walk around, survey, even run tests or apply for certain approvals. But it’s still missing what the contract needs to be a living, breathing Project Blue — the pulse that comes from title to the land.

How did I conclude this may be nothing more than a temporary “haunt”? It’s based on what has not happened — or rather, what has not been filed: a waiver, an amendment, grid-capacity proof, and Arizona registration for Humphrey’s Peak Power.

Some county officials and reps from Project Blue make it feel alive. And to be fair, a part of it is: the contract. The Purchase and Sale Agreement (PSA) — the land-sale contract — can only close if its conditions are met or waived (a waiver is usually a signed choice to proceed without meeting a contract condition). The PSA itself is very much still alive and remains out of the grave until June 16, 2026, when the deal expires.

No one should assume the County can simply "get out" of the contract. Hinting at expiration can still risk a breach claim. Instead, the demand should shift to the unmet closing conditions blocking transfer of title — the part that makes this a deal of the living dead.

Even if the County plans to let this contract die on its own, they won’t say so. Admitting that publicly can be framed as intent to breach, inviting a lawsuit. The safest legal play is silence and running out the clock.

That leaves only a few legally sound options: Agree to a waiver in public, amend the agreement in public, negotiate a new one, or let it expire on June 16, 2026.

Any waiver or amendment that requires County approval must appear on a public agenda and be voted on at a Board meeting under Arizona’s Open Meeting Law (“all legal action of public bodies shall occur during a public meeting”). By contrast, under PSA §9.6, the Buyer can waive its own closing conditions; if a listed condition isn’t satisfied or waived by closing, the Buyer may terminate. The County can fix it in public, or let it expire.

When I filed a public-records request with the ACC, I expected to find grid-reliability data tied to the Project Blue application. A project that could draw 286 megawatts of power, enough to run a small city. Beale’s letter of intent said TEP already had the capacity, so logically they submitted proof for any special request, right? Wrong. The ACC’s response said simply: no records found. (To date, TEP counsel have not responded to my request for clarification.)

Without those filings, no regulator has verified the grid can carry a 286-megawatt load. This is important for rate increase and blackout prevention.

This funhouse mirror reflects on the other applicant to the Energy and Service Agreement as well. The Delaware Division of Corporations lists Humphrey’s Peak Power, LLC as organized on June 11, 2025. Yet Humphrey’s Peak Power is nowhere to be found on the ACC’s registry. Under A.R.S. § 29-3902, a foreign LLC “may not transact business in this state until it registers with the Commission.” Between TEP’s lack of grid-capacity data and Humphrey’s Peak Power’s failure to register with the ACC, the picture speaks for itself.

Letting this slide sends the message that in Pima County, “conditions” are just suggestions and transparency depends on whether someone asks the right records request. That’s not good governance, it’s precedent by neglect.

Enforcing boundaries through contracts doesn’t chase away human partnership; it shows we take our responsibilities seriously. Poor boundaries don’t build community; they create haunting deals and zombie contracts. And sometimes people, even our own representatives, need reminders and support to hold those lines. It’s what differentiates true partners from the monsters.