Reliable & affordable Energy for Tucson
proposition 421
Reliable power. Local investment. No increase to customer bills.
What prop 421 does:
On the Nov. 3 general election ballot, Tucson voters will consider Proposition 421, which would approve a new 25-year franchise agreement between Tucson Electric Power and the City of Tucson.
The agreement would allow TEP to continue using public streets, alleys and other city rights-of-way to deliver electric service, maintain and upgrade infrastructure, and respond quickly when outages occur.
Importantly, Proposition 421 would not increase customer bills. The proposed agreement maintains the current 2.25% franchise fee.
TEP has served Tucson for more than 130 years. Proposition 421 would provide a clear, predictable framework for TEP and the City to continue working together to keep that service reliable, safe and efficient.
What is a franchise agreement?
A franchise agreement is not a license for TEP to provide electricity. TEP is required to serve customers within its state-approved service territory regardless of whether a franchise agreement is in place.
Instead, the agreement establishes clear rules for how TEP uses public rights-of-way and coordinates with the City when installing, maintaining and upgrading electric infrastructure.
These agreements are common and practical. By establishing expectations in advance, they can help reduce permitting delays, improve coordination and allow crews to access critical infrastructure efficiently.
Supporting Reliability and Faster Outage Response
Reliable electricity depends on the ability to maintain infrastructure and respond quickly when problems occur.
Proposition 421 would help maintain a predictable process for TEP crews working in city rights-of-way. That means fewer administrative roadblocks when crews need to perform routine maintenance, make infrastructure improvements or respond to an outage.
A clear agreement also helps TEP and City crews coordinate on projects that affect streets, sidewalks and other public spaces.
investing in tucson
Proposition 421 is paired with an Energy Collaboration Agreement (ECA) between TEP and the City of Tucson that supports shared energy and sustainability goals.
Under that agreement, TEP would make a $2 million annual contribution, at no additional cost to customers, for local infrastructure and sustainability initiatives.
Potential projects include:
Planting trees and expanding shade
Developing heat-resilient infrastructure
Supporting energy-efficiency programs for low-income households
Investing in other local sustainability and infrastructure priorities
no increase to customer bills
Proposition 421 would maintain the current 2.25% franchise fee on TEP bills for customers within the City of Tucson.
The franchise fee is remitted to the City and is credited toward the city's utility tax. As a result, it does not create an additional charge on top of the existing utility tax.
The City of Tucson's utility tax increased to 5% effective March 1, 2026. Franchise fee payments reduce the effective impact of that tax on monthly bills to 2.75%.
continuing a long-standing partnership
TEP and the City of Tucson have worked together under successive franchise agreements for decades.
Proposition 421 would continue that framework for the next 25 years, supporting:
Reliable electric service for Tucson homes and businesses
Fast coordination between TEP and City crews
Predictable rules for maintaining and upgrading infrastructure
Public safety and economic development throughout the community
Local investment through the Energy Collaboration Agreement
proposition 421:
Continues a longstanding partnership, supports reliable service and invests in Tucson without increasing customer bills.
