Tucson, Ariz. — Tucson Electric Power and the City of Tucson will seek voter approval of a new franchise agreement to continue their longstanding cooperation in support of safe, reliable, and affordable electric service for our community.
The Tucson Mayor and City Council voted unanimously yesterday to add the new agreement to the Nov. 3 general election ballot. If approved, the 25-year agreement would extend existing rules that govern how TEP uses city streets, alleys and other public rights of way to safely deliver power to local residents and businesses.
“The franchise agreement helps ensure we can work together efficiently to maintain infrastructure, respond quickly to outages, and support the reliable electric service our customers count on every day,” TEP CEO Susan Gray said.
While TEP does not need a franchise to serve customers in the city, the agreement ensures timely access to our facilities for maintenance and emergency response. Such agreements are common across Arizona and nationwide because they improve coordination, reduce delays, and avoid unnecessary costs tied to permitting and access to public property.
The new agreement would not impact customers’ bills. It extends the current 2.25 percent franchise fee paid by TEP customers within the City, which counts toward their obligation to pay the city’s 5-percent utility tax. Without a new franchise, those customers would pay the same level of city tax on their TEP bills without receiving benefits from the agreement.
Those benefits would include additional support for the City’s energy-related objectives through a companion Energy Collaboration Agreement. Under the 25-year pact, TEP would make annual payments beginning at $2 million to the City to provide utility bill payment assistance, promote energy efficiency, expand solar energy adoption and improve the climate resiliency of City operations, among other goals. The payments would come from corporate resources and would not be passed along in rates or fees on customers’ bills.
“For more than a century, Tucson Electric Power and the City of Tucson have worked side by side in service to this community,” said CEO Susan Gray. “These proposed agreements reflect the trust, collaboration, and shared responsibility that define our partnership.”
Additional information about the proposed franchise agreement, including frequently asked questions, is available at tep.com/proposed-franchise-agreement.
News Media Contact:Joseph Barrios(520) 884-3725jbarrios@tep.com
