Tucson Opinion: Confused about Prop 412? Follow the money

The Prop 412 election seeks approval for a new, 25-year franchise agreement that permits TEP to use poles, wires, and other infrastructure along Tucson’s roadways — and imposes a confusing, new Community Resilience Fee on TEP’s customers in Tucson.

The City’s Voter Information Guide includes the whole, long, complicated franchise agreement and nothing to explain it! No main points in normal English and Spanish. No pros and cons from other citizens.

So, I followed the money and here’s what I found.

Prop 12’s Community Resilience Fee will increase every Tucson residential customer’s electricity bill by about $1/month — for 25 years. That adds up to about $5 million/year, with no commitment to offset the fee for low-income households.

Meanwhile, TEP has two other rate hikes already in the works. The Arizona Corporation Commission is now considering TEP’s request for a $16/month rate increase for the average household. ACC staff have also recommended adding another $5.60-$12.00/month to reimburse TEP for unexpected fuel and power costs (gas prices are up 300% since 2019).

Why pile on a resilience fee?

Good question! For the first 10 years, only 10% of the fee will fund City projects that would actually boost resilience — Tucson’s ability to withstand the excessive heat, drought and threats to public health caused by climate change.

90% of the new fee — about $45 million over the first 10 years — will pay for installing a few of TEP’s new transmission line underground along Campbell Avenue. Installing the line above ground would involve no extra cost to us. Expensive undergrounding contributes nothing to community resilience.

How about all the clean energy and reliability in Prop 412’s publicity? TEP’s new transmission line will, in fact, improve reliability and deliver more solar and wind energy for Central Tucson. But that’s the function of the line itself. Undergrounding adds zero clean energy and reliability.

Why would we pay this fee?

Tucson’s City Code provides for undergrounding transmission lines in scenic and gateway corridors to protect sight lines and property values in selected neighborhoods and our overall image.

But TEP does not pay for undergrounding because it is unnecessary and it privileges some neighborhoods over others, while all ratepayers foot the bill. TEP defers to Arizona statute 48-620 that calls for property owners near utility lines to form an improvement district and pay for undergrounding themselves.

Meanwhile, the University of Arizona and nearby neighbors don’t want undergrounding enough to pay $45 million for it. Apparently, neither do Mayor and Council.

Who’s left? Us! Enter the franchise agreement and a new way to get every TEP customer in Tucson to pay for undergrounding the new Campbell line — and, potentially, other lines over 25 years.

Fortunately, franchise agreements require public approval and we can vote “no.”

There’s no undergrounding emergency

Undergrounding is unnecessary. It’s optional, an aesthetic choice with consequences. UA and nearby neighbors will be the beneficiaries of $45 million. Voters will decide if this choice is equitable for all Tucsonans.

No tourists, conventions, or new businesses will avoid Tucson if TEP installs 14-20 higher-than-normal utility poles along Campbell. But they will steer clear when our summers get too long and too hot. In 1970, Tucson had 39 days that topped 100 degrees. In 2020, there were 108. While that year exceeded predictions, so have the heat, drought, and wildfires we’re already experiencing.

I followed the money and am voting “no” on Prop 412.

Let’s send the City and TEP back to the drawing board for a better agreement. If it includes a Resilience Fee, most or all of it should boost resilience and clean energy! Any new fee should be offset for low-income residents. Then, Tucsonans can vote “yes” and know exactly what we’re paying for.

No rush. We have about three years before the current agreement expires.