Local opinion: TEP ready to partner with the City of Tucson

and analysis of the writer:

On March 4, the Tucson Mayor and City Council extended a hand in partnership to Tucson Electric Power, offering to work together toward a more resilient community and a cleaner energy future.

Our response? We’re ready.

Despite occasional friction around specific projects or issues, TEP and the City of Tucson have worked collaboratively for many decades to better serve local residents. Our cooperation has produced immeasurable benefits for our local economy and quality of life, powered by a robust, modern energy grid that runs alongside — and occasionally under — city streets.

The city’s long-term franchise agreement with TEP is a good example of our collaboration. It sets rules for TEP’s use of public rights of way in exchange for a fee paid by customers within city limits. Although we do not need a franchise to continue operating in the city, this simple, practical agreement reduces costs for our customers, as we otherwise might need to secure land rights through easements, purchases or condemnation. It also generates about $15 million annually for the city, or about $30 million annually when combined with the City’s utility tax collections.

Because our current agreement expires in April 2026, TEP has encouraged city leaders to seek voter approval of a new franchise. We were pleased the Mayor and Council directed its staff to work toward a proposal that could be added to the city’s November 2025 general election ballot.

While some may seek to add new commitments, costs, or complications, we believe this new agreement should be simple, with the same terms and franchise fee. We remember well that city voters rejected Proposition 412, a previous effort to fund both climate action and underground power line installation through a new, more costly agreement. We also know we must make our service as reliable and affordable as possible for all our customers.

We can partner with the city on other priorities approved by the Mayor and Council on March 4, including an agreement to provide 100% clean energy for all city operations. This would be the most affordable, effective way for the city to achieve carbon-neutral operations by 2030, one of many worthwhile goals outlined in its climate action and adaptation plan.

TEP is already supporting other goals and policies in that plan, another request articulated by the Mayor and Council. We’ve supported city efforts to plant trees, promote heat resiliency, and expand access to electric transportation and transit. We’ve also worked with our customers to significantly expand solar energy resources in our community and to promote efficient energy use that achieves carbon emission reductions.

Additionally, we’re developing a potential distribution grid storage pilot project that would contribute to electric reliability while also supporting resiliency at the Donna R. Liggins Recreation Center, which is used as a cooling center during hot weather. Our system could operate in tandem with city solar panels to provide power to the centrally located facility during an extended power outage, helping it operate as a resilience hub — a key objective of the city’s climate action plan.

The Mayor and Council has taken notice of this proposal, directing its staff to work with TEP toward an agreement that could make it a reality. We are happy to partner in this effort. We believe that working together with the City offers a much brighter future for our community than any other possible alternative — including, at the extreme, a city takeover of our local electric service.

We know the city’s climate action plan required a study of alternative energy supply options, and its preliminary results should be ready soon. It should make clear that an extended, expensive seizure of TEP’s local electric system would prove disastrous, resulting in higher rates, reduced reliability, and slower progress toward the city’s climate action objectives.

I’m hopeful the steps taken by the Mayor and Council on March 4 indicate that city leaders are already looking past that study, toward a future built around continued collaboration with TEP in support of the communities we have served together for more than a century.