Tucson Voters to Consider TEP Franchise Agreement

Tucson voters will consider Proposition 421 in November, which renews the terms of the existing franchise agreement between Tucson Electric Power (TEP) and the City of Tucson. TEP has operated under its current agreement with the City since November 2000. The 25-year franchise agreement helps the utility and City work efficiently on projects on streets, alleys, and public rights-of-way.

Upon passage of Prop 421, an Energy Collaboration Agreement (ECA) between TEP and the City of Tucson would go into effect. The ECA is a voluntary agreement between both entities, where TEP will invest $2 million per year on infrastructure and sustainability projects, with the funds increasing 2% each year, eventually totaling $64 million. The funding would not come from higher electric rates, and the current franchise fee structure would remain the same.

Projects could include more shade trees, improvements to help Tucson handle extreme heat, clean energy projects, and energy-saving programs for low-income households.

To read the franchise agreement and ECA, follow the link on the right of this page (desktop) or mobile (below).