Unofficial results show 55.15% of voters saying no to a new 25-year agreement between the City of Tucson and Tucson Electric Power.

Proposition 421 asks voters to allow the city to enter into a franchise agreement with TEP, a privately owned utility whose parent company is Canada-based Fortis Inc. TEP holds a monopoly on electricity service in the Tucson metro area and has operated under a 25-year franchise agreement with the City of Tucson since 2000. That agreement was set to expire in April 2026, but was extended through April 2027 after voters rejected a proposed renewal in 2023. TEP would still provide electricity to Tucsonans if Prop. 421 fails. Read more.

As of Thursday morning, with 99.6% of precincts reporting, 71,487 of Tucson residents had voted no on the ballot question, with 58,143 voting yes.

In a statement Wednesday, Tucson Mayor Regina Romero said Tucsonans are upset about the cost of living and TEP’s rate increases. She said TEP “must return to the table with a better offer that genuinely meets the needs of our community, ensuring that utility growth and consumer protection go hand in hand.”

Ward 6 council member Miranda Schubert, who has supported a public power model, said the voters’ rejection of Prop. 421 tells her the community wants to be included in a new plan that prioritizes their interests.

“We have to look forward to a future where we’re building trustworthy, dependable, and affordable energy for all Tucsonans,” Schubert said.

One of the messaging points in TEP for Tucson ads was that emergency repairs would take longer without a franchise agreement because the city would have to approve permits before TEP could access public rights of way.

“The city of Tucson will fulfill our obligation to ensure that urgent and emergency repairs aren’t held up by permitting,” Schubert said.

Joseph Barrios, manager of corporate communications at TEP, said it’s difficult to say exactly how TEP will move forward after the franchise agreement expires in April, because they’ve been operating under an agreement for the last 25 years. Company leaders will have to meet with city officials to figure out an efficient process, Barrios said.

“I think the main thing for us is whether the city of Tucson voters supported the measure or not, those voters are still our customers, and we’re going to continue to provide the best service that we possibly can,” he said.

Leading up to the election, the Public Power for Tucson Coalition urged voters to reject Prop. 421, saying it’s a bad deal for Tucsonans as TEP continues to pursue rate hikes. Without a 25-year agreement, the coalition intends to put more pressure on its elected leaders to pursue a city-owned power utility model.

June Williams, a member of the public power coalition, said she was proud to see that Tucsonans saw through the “fear mongering” of TEP’s ads.

“This is a rejection of monopolies. This is a rejection of billionaires,” Williams said “This is a rejection of things that are harming working class Americans and Tucsonans.”

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Stephanie Casanova is a Report for America corps member covering environmental justice and the Colorado River for Arizona Luminaria. Stephanie’s reporting position is part of a new partnership with the...