City_of_Tucson,_Current_Franchines_Agreement.pdf

This document is a franchise agreement between the City of Tucson, Arizona and Tucson Electric Power Company (TEP) for electric transmission and distribution services within the city limits. The agreement grants TEP a non-exclusive franchise to construct, maintain, and operate electric transmission and distribution facilities across public rights-of-way, with an initial term from April 15, 2001 to April 15, 2026. The franchise was subject to voter approval through a municipal election held on November 7, 2000, where qualified electors would vote on granting TEP the right to provide electric services throughout the city.

The franchise agreement includes a comprehensive fee structure based on kilowatt-hour consumption, with different rates for residential, commercial, industrial, and public authority customer classes. The fee is calculated at approximately 2.25% of gross revenues from electricity sales, with provisions for crediting net write-offs for uncollectible accounts. One-ninth of the franchise fee revenues can be used for specific public benefits, including low-income energy assistance programs, undergrounding of electric lines, and renewable energy incentives. The agreement also establishes detailed provisions for infrastructure access, relocation of facilities, emergency procedures, and mutual cooperation between the City of Tucson and TEP, ensuring reliable and coordinated electric utility services.