Tucson, Ariz. – Tucson Electric Power (TEP) will host a public meeting to discuss a proposed franchise agreement with the City of Tucson.
The Tucson Mayor and Council will consider asking voters to approve a new, 25-year franchise agreement with TEP that would help support our community’s long-term energy resilience and sustainability. The agreement would grant TEP permission to build and operate its local electric grid in the city’s rights of way, similar to agreements in place with other municipalities and replacing the current voter-approved franchise agreement, which expires in April 2026.
City staff and TEP have drafted an updated agreement that would include a 3-percent fee on monthly electric bills of TEP customers within the city, an increase from the current 2.25 percent franchise fee. The revenue generated by that additional 0.75 percent fee could be used to cover the cost of undergrounding certain electric infrastructure investments, with the approval of both the city and TEP. It also could be used to fund efforts that support the city’s Climate Action Plan, including new clean energy resources, electric vehicle infrastructure and heat mitigation efforts.
The proposed change would add less than $1 per month to the average monthly electric bills of residential customers with typical usage within the City of Tucson. That impact would vary with usage. TEP customers outside the City of Tucson would not pay this fee.
TEP invites city residents and other stakeholders to share feedback regarding the proposed franchise agreement at a public meeting on Wednesday, Jan. 18. The meeting will be held from 6-8 p.m. at TEP’s downtown headquarters, 88 E. Broadway.
Members of the public can also participate in the meeting online via Zoom. To join online, or to submit written comments using an online form, visit tep.com/franchise-agreement. To participate by telephone, call 1-669-900-6833 or 1-346-248-7799 and use meeting ID 853 8794 1842 and passcode 924142530.
Leaders from the City of Tucson and TEP will be on hand at tomorrow’s meeting to discuss the proposed agreement, answer questions and gather feedback that will be reviewed and considered by the Tucson Mayor and Council before next week, when members will consider calling a special election in May 2023 to allow city voters to approve or reject the new franchise.
TEP provides safe, reliable electric service to more than 438,000 customers in Southern Arizona. For more information, visit tep.com. TEP and its parent company, UNS Energy, are subsidiaries of Fortis Inc. (TSX/NYSE: FTS), which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. For more information, visit fortisinc.com.
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