Approves the franchise and activates a companion energy agreement.
Proposition 421 · Tucson · Nov 3, 2026
Tucson Electric Power franchise
Official title: Electric transmission and distribution franchise
Would approve a 25-year nonexclusive TEP franchise for city rights-of-way.
At a glance
Franchise renewal- Does it raise taxes?
- No new tax. Continues the existing 2.25% franchise fee on electric bills and adds a company contribution starting at $2 million a year.
- Estimated cost or revenue
- Not yet verified
- Who pays
- TEP pays the franchise fee; customers currently pay it on bills. Companion contributions come from corporate resources.
- Where the money goes
- Rights-of-way and community energy and resilience projects.
- How long
- 25-year franchise; companion funding depends on that agreement remaining effective.
Worth knowing: Do not treat full-term companion payments as guaranteed; separate utility rate proceedings can still change bills.
From the City of Tucson and the state’s fiscal analysis. Estimates are the state’s, not ours.
Your choice
Saved privately on this device.What your vote does
Rejects the proposed franchise.
Electric rates remain subject to separate regulation.
How the money works
TypeFranchise renewal
Rate or thresholdExisting 2.25% franchise fee; companion contribution begins at $2 million annually, growing 2%.
Cost, who pays and where the money goes are in “At a glance” above.
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Why they disagree
TEP says renewing the 25-year franchise lets it start repairs and upgrades without delays, adds no cost to bills, and puts into effect an energy agreement worth about $64 million over 25 years for projects like low-income weatherization and heat resilience.
Tucson Electric Power (as reported by KOLD)Opponents object to locking in another 25 years with a monopoly utility that is seeking a rate increase, and want the city to keep a public-power option open.
Public Power for Tucson (as reported by KOLD)Who’s funding it
We haven’t loaded campaign-finance filings for Proposition 421 yet. You can look them up directly:
Sources
- City of Tucson
2026 election source · ballot-facts
Checked Oct 31, 2026 - City of Tucson
2026 election source · ballot-facts
Checked Oct 31, 2026 - Southern Arizona Leadership Council
2026 election source · ballot-facts
Checked Oct 31, 2026