Proposition 421: Tucson Voters Decide TEP’s 25-Year Franchise on Nov. 3
On Tuesday, November 3, Tucson voters decide Proposition 421 — whether to renew Tucson Electric Power's franchise agreement with the city for another 25 years. It is the most consequential utility vote a new Tucson homeowner will inherit in a generation: the current franchise expires in April 2027, and the deal on the ballot includes a related energy collaboration agreement worth about $64 million over its life. If you are moving here, this is your electric utility, your franchise fee, and your city's energy direction being set in one vote.
By Marisol Rodriguez, editor & host of TucsonBound
November 2, 2026 · Sources: Tucson Spotlight (Oct. 30, 2026) and City of Tucson NewsNet
What a yes vote does
Proposition 421 renews TEP's 25-year franchise — the agreement that lets the utility use the city's right-of-way to deliver power — and puts a related energy collaboration agreement into effect. That agreement provides $2 million a year in TEP funds for infrastructure and sustainability projects, rising 2% annually, for about $64 million over 25 years. The existing franchise, which expires in April 2027, includes a 2.25% franchise fee on customer bills. TEP says the proposition would not raise customer energy rates, and that rates would not fall if voters reject it; the company describes the renewal as common-sense rules that let crews respond to outages faster.
What a no vote is arguing
Opponents, organized around Public Power for Tucson, marched to TEP's downtown office on October 21 urging a no vote. Their case: rejecting the renewal keeps the city from committing to TEP for 25 years and forces a serious look at a public-power alternative, which they argue could mean lower rates, fewer outages, and a faster move to renewable energy. They also point to campaign spending — finance reports show TEP's political action committee has spent nearly $4 million backing the measure. Supporters of a no vote call the election a referendum on TEP itself.
Separate issue: your bill may rise anyway
Do not confuse the franchise vote with TEP's rate case. In a separate proceeding, the administrative law judge reviewing TEP's rates has recommended an increase that would raise average residential bills by about 11.2%, which could take effect as soon as December 1 if the Arizona Corporation Commission approves it. That happens — or not — regardless of how Proposition 421 goes. For how Tucson utilities work when you first move in, see our utilities setup guide and the utility lines in our cost of living guide.
Why it matters for movers
Every Tucson household pays TEP, and newcomers sign up in their first week — it is step one on our newcomer checklist. A 25-year franchise signed in 2026 will outlast most mortgages' first decades, and the collaboration money shapes the grid and sustainability projects your neighborhood lives with. If you are registered in Pima County, this one is on your November 3 ballot alongside Proposition 422, the Reid Park Zoo sales-tax reauthorization. Poll and ballot information is at the Pima County Recorder's site, linked in Tucson Spotlight's coverage above.