Local opinion: Let them eat $2 million

Ordinarily, this paragraph would continue the theme of the first, but we’ve got a city juggling closures of vitally important places and functions because Trump has made sure that funds formerly flowing here no longer flow. This November, there will be a TEP franchise agreement vote. Passage of it is legally glued to TEP’s $2 million annual funding of the Energy Collaboration Agreement (ECA). It needs your approval despite how you feel about TEP. If the franchise agreement fails, there is no $2 million annually. The City needs the money more than ever, despite the obvious — that the amount stinks and is a cake of crumbs. We have to vote to approve while holding our noses until the bad odor passes.

Now, we might be holding our noses but we are not going to zip tie our mouths shut. The amount of the ECA funding is an insult considering TEP’s fingerprints on the climate gun with its indefensible burning of fossil fuels in solar-soaked Arizona.

About 60% of TEP's $285 million total profit last year came from Tucson ratepayers — making that about a $170 million net profit. This $2 million ECA funding is not by any stretch putting the big hurt on TEP or Fortis, its Canadian parent company. Removing that $2 million from Fortis’ income results in a whopping 1/2 of one penny dividend reduction. Another perspective? It’s 1/6000 of Fortis’ 2025 income. And the City fought hard to get even that pittance.

Now, I’ve no idea what goes on in those boardrooms, but from where I sit — based on the paltry, myopic funding of this ECA - TEP and Fortis are either: (1), hellbent on slashing and burning their way to record profits by laying waste to anyone and anything in their path; or (2), carefully analyzing the situation and feeling comfortable that these crumbs will appease the City and its supporters, who will all just go away mad, but go away and move on. Option 1 makes perfect sense: Get it while you can. Option 2 feels like rubbing the City’s nose in number 2. It’s shooting yourself in the foot to think the City will just go away and take it on the chin for the 25-year term of the franchise agreement. Does TEP really want to partner in climate help or to create motivated enemies?

Built into this ECA is language that terminates the agreement if the City takes certain steps toward municipalization — buying and taking over TEP’s assets and creating a public utility. Still, even though municipalization would be a very expensive dogfight, the City constitutionally has the power to pursue that option. The current obstructionist Arizona Corporation Commission cannot stop the City from doing that. And if that municipalization effort were successful, TEP’s annually increasing $170 million profit off Tucson ratepayers would vanish. No more income. Poof, goodbye. Does it make good business sense for TEP to follow Marie Antoinette’s advice and piss off the people? How did that work out?

Isn’t it a much better plan to view the City as a real partner and not a punching bag? Wouldn’t it be a better idea to make a significantly larger investment into the City’s established plan to prepare for and mitigate the increasing risks of climate catastrophe?

Until TEP comes to its business senses, there’s only one choice now: Pass this franchise agreement and get a paltry cash lifeline for the city.