Unofficial election results show Tucson voters rejecting a 25-year franchise agreement between Tucson Electric Power and the city.
As of Wednesday afternoon, results showed 55% of Tucson voters against Proposition 421 and 45% voting for it.
The ballot measure sets rules for how the electric utility uses public rights of way to operate within the city.
The franchise agreement also includes a voluntary investment agreement or Energy Collaboration Agreement, which would allocate $2 million annually to energy affordability projects like bill assistance for low-income households and electric vehicle charging infrastructure.
Every two years that amount would increase by 2% and eventually total about $64 million.
The company has said that these investments would come out of its corporate resources and not ratepayer funds.
Opponents have criticized the length of the agreement and characterized the investments as “bribes,” particularly in comparison to the company’s reported profits.
In 2025, TEP’s Canadian parent company, Fortis Inc., reported a profit of $1.2 billion.
Prop. 421 was publicly supported by the majority of the Tucson Mayor and Council, including Mayor Regina Romero, Vice Mayor Lane Santa Cruz and council members Kevin Dahl and Selina Barajas, as well as Pima County Supervisors Jen Allen and Andres Cano.
“We’ll be in uncharted territory if voters reject Prop. 421,” TEP spokesman JD Wallace told AZPM.
This is the second time in three years that Tucson voters have rejected a new franchise agreement.
If voters passed Prop. 412 in 2023, the existing agreement with TEP would have been renewed as well as a new fee for customers that would’ve raised money to install underground power lines.
TEP has been Tucson’s electricity provider for more than a century.
The electric utility will continue to provide service within the city even if the franchise agreement is rejected.
