By the Arizona Free Enterprise Club |
This November, Tucson voters are being asked (again) to approve a 25-year franchise agreement between Tucson and Tucson Electric Power (TEP). Franchise agreements are generally standard arrangements that allow utilities to use public rights-of-way for poles, wires, and infrastructure. But there is nothing standard about this deal. Bundled with it is an “Energy Collaboration Agreement” that will quietly embed climate policy into Tucson’s governance for the next quarter century. Voters should read the fine print (and the price tag) before checking the box.
If Tucson voters are having déjà vu reading this proposal, it’s because it is awfully similar to what they have already said no to. In May 2023, Proposition 412 put a nearly identical TEP franchise agreement before the public, and voters rejected it by a 55-45 margin. That deal included a new 0.75% “community resilience fee” on top of the existing 2.25% franchise fee, with proceeds earmarked for undergrounding utility lines as well as funding the city’s Climate Action Plan. Despite voters already telling the city they don’t want it, city leaders and TEP have assumed residents really just want a more expensive version of the same thing – rebranding and trying to ream through for a second time the same agenda but at a cost of $64 million instead of $56 million.
What the franchise agreement really does is help TEP maintain infrastructure, expedite permitting, and improve outage response. But TEP can still operate without a franchise agreement, meaning this vote is not about whether Tucson continues receiving electricity. Instead, it creates the legal foundation for a broader political partnership between the city and the utility…
