Tucson, Arizona: Voters Reject TEP Franchise in Proposition 421 and Approve the Reid Park Zoo Tax

Tucson voters have rejected Proposition 421, the measure that would have renewed Tucson Electric Power's 25 year city franchise, according to early results reported on Wednesday. The no side led with 54.9 percent of the vote, 68,080 votes to 55,899, a margin of 12,181. On the same ballot, voters approved Proposition 422, extending the sales tax that funds Reid Park Zoo, by 71.9 percent to 28.1 percent. The results are unofficial until the county canvass, which must happen by November 19.

What the no vote means

Proposition 421 would have renewed TEP's franchise for 25 years. The franchise gives the utility access to city rights of way for its poles and wires. The current franchise expires in April 2027 and includes a 2.25 percent fee on customer bills. The measure would also have put an energy collaboration agreement into effect, with TEP providing 2 million dollars a year for infrastructure and sustainability projects, rising 2 percent a year, or about 64 million dollars over 25 years.

The no vote does not remove TEP. The company remains Tucson's electricity provider, and it keeps serving the city while the current franchise runs to April 2027. What voters decided is that the city will not lock in a new 25 year deal on these terms. It is the second time in three years that Tucson voters have turned a franchise deal down. They rejected an earlier proposal in May 2023, and the mayor and council must now decide whether to negotiate new terms or study other options, including public power.

A one sided money race

Mayor Regina Romero and most of the City Council supported Proposition 421. Its opponents protested outside TEP's downtown office in October and argued that a no vote would keep the city from committing to TEP for 25 years and open the door to public power. The Arizona Daily Star reported that TEP contributed 4.3 million dollars to its political committee, TEP for Tucson, which ran ads and mailers for a yes vote. The campaign against the measure spent far less.

After the result, the group Public Power for Tucson said in a statement: "Community power beat corporate power in the Sonoran Desert." The group called the vote a referendum on how the utility operates in Tucson. TEP said the proposition would not have raised customer rates and that rates will not fall because it failed. Any increase would come from a separate rate case before the Arizona Corporation Commission.

The zoo tax passes, the county waits

Proposition 422 extends the 0.1 percent Reid Park Zoo sales tax through 2047. Voters first approved the tax in 2017, and it was set to expire at the end of 2027. The money goes into a Reid Park Zoo improvement fund, for uses set by the mayor and City Council. Supporters said the tax has paid for 85 percent of the cost of large capital projects under the zoo's 2018 master plan, and that the zoo drew more than 610,000 visitors from 2025 to 2026. No organized opposition campaign ran against it.

One local measure was still undecided on Wednesday. Pima County's Proposition 425, which would raise the county spending limit by about 610 million dollars, was too close to call. Yes led with 50.2 percent, 151,744 votes to 150,571, a difference of 1,173 votes.