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Draft TEP ‘Energy Collaboration Agreement’ would dedicate $2M/year to Tucson climate and resilience projects, tied to franchise vote
Summary
City staff and TEP have negotiated a draft Energy Collaboration Agreement that would provide $2 million in TEP shareholder funds annually (with a 2% escalator) over the franchise term to community‑prioritized climate and resilience projects. The ECA is tied to a franchise agreement subject to voter approval and drew community requests for stronger governance, clearer implementation plans and protection for future public‑power options.
City staff presented a draft Energy Collaboration Agreement (ECA) negotiated with Tucson Electric Power that would direct shareholder funds—separate from ratepayer revenue—to projects prioritized by the community and aligned with the city’s Tucson Resilient Together climate plan.
Chief Resilience Officer Fatima Maluna said the draft would provide $2 million in shareholder funding each year with a 2% escalation every other year, roughly totaling $56 million over a 25‑year franchise term. Staff said the funds would be used for five broad categories: greenhouse‑gas reductions (solar, storage, electrification), resilience infrastructure (resilience hubs, cooling centers), programs targeted to vulnerable communities (build assistance and access programs), workforce development and partnerships…
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