What is Prop 421?

Prop 421, also known as the TEP franchise agreement, renews the existing agreement between TEP and the City of Tucson.

A franchise agreement allows TEP to use public rights-of-way for electric infrastructure and to maintain and repair that infrastructure without going through a separate city permitting process for each job.

Prop 421 helps TEP and the City work together efficiently by setting clear rules for the use of public property, maintenance, repairs, and infrastructure projects.

TEP will continue to provide electric service to Tucson whether or not Prop 421 passes. However, without a franchise agreement, routine maintenance, repairs, and emergency work could be subject to additional permitting requirements and delays.

Our current agreement has been in place for decades, but is set to expire in April 2027. Voting YES extends this collaboration between the city and TEP, starting December 1, 2026.

No New Fees

Prop 421 does not increase electric rates or add a new customer fee.

The agreement continues the existing 2.25% franchise fee that has been in place since 2000. TEP's electric rates are set by the Arizona Corporation Commission and are separate from the franchise agreement.

$2 Million Annually for Tucson

Prop 421 is supported by a companion Energy Collaboration Agreement that provides for a $2 million annual donation from TEP for heat-resilient infrastructure and sustainability projects, at no additional cost to customers.

The funding will support construction of heat-resilient infrastructure, additional shade and trees, energy efficiency programs for low-income households, and other local energy and sustainability priorities.