SOUTHERN ARIZONA LEADERSHIP COUNCIL
Tucson-TEP franchise agreement
A 25-year agreement for TEP’s use of Tucson’s public rights-of-way, paired with an agreement to fund community energy projects.
Reliable power takes planning and partnership.
Reliable electricity is essential to daily life and to every business that operates here. We support this agreement because long-term investment requires clear expectations and dependable coordination between the city and TEP. It provides a framework for maintaining and improving the infrastructure our community and economy depend on.
Major Impacts
- A 25-year framework. The nonexclusive agreement governs TEP’s use of city rights-of-way. Specified terms may be reviewed at years 10 and 20; required permits still apply.
- The existing fee continues. The franchise fee remains 2.25%. TEP says the utility-tax offset keeps total city-related charges unchanged by this vote.
- A companion investment. The Energy Collaboration Agreement starts at $2 million annually, increasing 2% a year while in effect. These contributions come from corporate funds, not customer rates.
Does approval freeze electric rates or guarantee service?
No. Rates remain under Arizona Corporation Commission oversight. TEP says it will continue service regardless of the vote; no outage-restoration time is guaranteed.
SALC Recommends: VOTE YES on Proposition 421
Approves the franchise and activates the companion agreement.
Common Questions
Will this raise my electric rates?
The proposition does not authorize an electric-rate increase. Rate decisions remain with the Arizona Corporation Commission. It also does not guarantee that future bills will stay the same.
Would a NO vote shut off electricity?
No. TEP states that it must continue serving its territory with or without a franchise. The decision is about the agreement governing its relationship with the city.
Does the agreement let TEP skip permits?
No. Applicable city permit requirements remain in place. The agreement also provides for emergency work and follow-up permitting.
Is the community funding guaranteed for all 25 years?
No. Contributions continue while the Energy Collaboration Agreement remains in effect. That agreement allows termination on 180 days’ notice, so a full-term funding total should not be treated as guaranteed.
Can every TEP customer vote on this?
No. This measure is for City of Tucson voters. Being a TEP customer outside the city does not make someone eligible to vote on it.