Tucson Council Maps Public Power Options as TEP Franchise Talks Near

Public Power OptionsTUCSON, AZ (March 6, 2026) — Tucson Mayor Regina Romero and the City Council used a Tuesday study session this week to lay out what “public power” could look like in Tucson, framing the discussion as part of the City’s long-running climate strategy and as a parallel track to upcoming franchise negotiations with Tucson Electric Power (TEP).

Romero said the City’s interest in public power stems from work on the Tucson Resilient Together Climate Action and Adaptation Plan, which directed staff to explore whether Tucson could pursue a public-power pathway. She emphasized the City has hired consultants to review feasibility, but said cost remains a central consideration.

At the same time, Romero highlighted a second, more immediate track: the impending renewal of the City’s TEP franchise agreement, and the community’s push to pair that renewal with an Energy Collaboration Agreement (ECA)—a framework intended to align utility investment with Tucson’s climate goals and resilience priorities. City officials said draft versions of the ECA and franchise agreement are expected to be released for public comment, with additional community meetings coordinated by TEP.

Four models outlined

Chief Resilience Officer Fatima Luna and City Energy Manager Michael Catanzaro/Canaro (as introduced at the meeting) presented a “landscape overview,” not a recommendation, organized around four distinct models that vary widely in scale, cost, risk, and timeline:

  1. Community Choice Aggregation (CCA) — A model used in some states where a city procures power on behalf of residents while the incumbent utility continues operating the grid. Staff noted CCA is not currently authorized in Arizona, making it a longer-term legislative effort rather than an immediate option.
  2. Municipal utility serving City-owned sites — A low-risk pilot concept using existing municipal facilities (such as a recreation center) to test utility functions like procurement and billing in a controlled environment, potentially paired with on-site generation and storage to support resilience.
  3. Municipal utility serving new development — A city-run utility created specifically for a new subdivision, district, or campus, built “from the ground up,” avoiding acquisition of existing assets but requiring upfront capital and careful navigation of service territory issues.
  4. Full municipalization within city limits — A full takeover of electric distribution within Tucson. City discussion referenced prior analysis placing acquisition value in the multi-billion-dollar range, with additional legal, operational, and timeline complexity.

Where Council landed on next steps

While public commenters urged the City to move faster, multiple council members expressed concern about the scale and cost of full municipalization, as well as the staffing and legal burden of building a regulated utility. Reporting on the meeting indicates the Council ultimately directed the Commission on Climate, Energy, and Sustainability to take a lead role in continuing the work and mapping long-term options, with staff providing periodic updates as the resilience hub and related concepts develop.

Why this matters now

City officials reported they have already received more than 1,600 letters and 4,000 signatures on several petitions supporting public power, and council members referenced ongoing concerns about high electric bills—particularly for low-income and elderly residents. The discussion is happening under a tight calendar: Tucson’s franchise agreement with TEP is nearing expiration, and the City is weighing how to secure climate-aligned investment, affordability tools, and resilience measures while it evaluates whether any public-power pathway is realistic over the long term.

This report is based primarily on the Tucson Mayor and Council study session on March 3, 2026, along with related City staff presentations and public comments.