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Upcoming Election on Franchise Agreement
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Arizona Public Service (APS) works closely with cities and towns across Arizona to deliver safe, reliable electric service. Franchise agreements are one of the ways we partner with local communities to care for shared spaces and support the services people rely on every day.
A franchise agreement is a voter approved contract between a local government and APS. It allows APS nonexclusive access to public rights-of-way such as streets, alleys and roadways so we can build, maintain and operate electric facilities that serve homes, businesses and communities.
Franchise agreements do not decide which utility serves an area. Instead, they establish clear expectations for how APS uses public spaces, how communities are supported and how accountability is maintained. Under the Arizona Constitution, franchise agreements are approved by voters and established for a maximum term of 25-years.
Why Franchise Agreements Matter
Franchise agreements help prioritize essential electric service so that it can be delivered safely and reliably. It also ensures that APS is using rights-of-way safely, efficiently and in compliance with local regulations.
Why we recommend a “Yes” vote on the franchise renewal: Franchise agreements help cities effectively and economically plan for the future in coordination with APS.
- Supporting Local Communities
As part of a franchise agreement, APS provides two percent of the revenue collected from customers within city limits to the local government. Cities and towns use these funds to support important services such as road improvements, community and economic development and public facilities. - Responsible Use of Public Spaces
Public rights-of-way are shared spaces that belong to the community and are managed by local governments. Franchise agreements help ensure APS uses these spaces efficiently, safely and in compliance with local requirements. This helps protect neighborhoods and the infrastructure everyone depends on. - Coordinating Work in Your Community
Franchise agreements support coordination between APS and local governments when work is needed in streets and neighborhoods. This coordination helps reduce disruptions, improve safety around work areas and ensure public spaces are restored after construction or maintenance. - Reliable Electric Service Today and Tomorrow
Access to public rights-of-way allows APS to maintain and upgrade electric infrastructure. Franchise agreements provide the stability needed to plan ahead, respond to growth and support future energy needs while continuing to deliver reliable service today. These agreements are established for a 25-year term, which allows APS and local governments to plan with confidence. This long-term approach supports thoughtful infrastructure planning, coordinated improvements and reliable service for years to come. - No Impact on Electric Rates
Approving a franchise agreement does not increase electric rates for customers and does not increase APS revenues.
Franchise Agreements & Upcoming Elections:
Proposition 405: Proposed Coolidge Franchise Agreement | Spanish
Frequently Asked Questions
What is a franchise agreement?
A franchise agreement is a voter approved contract that allows APS to use public rights-of- way to provide electric service while outlining responsibilities, oversight, and community benefits.
Does APS have franchise agreements with other communities?
Yes. APS has franchise agreements with 54 municipalities and all 11 counties it serves across Arizona.
Why do voters approve franchise agreements?
The Arizona Constitution requires voter approval of municipal franchise agreements to ensure transparency and public oversight.
How long does a franchise agreement last?
Franchise agreements are established for a 25-year term as required by the Arizona Constitution.
What happens if a franchise agreement is not approved?
If a franchise agreement is not approved, elections will continue until voter approval is obtained. During that time, APS continues providing safe and reliable electric service.
Will a franchise agreement affect my electric bill?
No. Approving a franchise agreement does not increase electric rates.
How does the city benefit?
Franchise agreements include a two percent franchise fee based on revenue collected from customers within city limits. Cities use these funds to support infrastructure, services, and long term community needs.
What is a public right-of-way?
Public rights-of-way include streets, alleys and roadways that are used for transportation and essential services. These shared spaces make it possible to deliver electricity, water, communications and other services to the community. Franchise agreements help manage how utilities use these spaces, so they remain safe, accessible and well maintained.
I’m not an APS customer, why am I voting on this proposition?
Even if you are not an APS customer, you are voting on this proposition because it involves how public rights-of-way in your community are used.
A franchise agreement is a voter-approved contract between APS and your city that allows APS to use public streets, alleys and other rights-of-way to construct, operate and maintain its electric facilities. These public rights-of-way belong to the community and are managed by the city on behalf of all residents, not just APS customers.
