Coolidge Voters Will Decide on APS Franchise Agreement This Summer
COOLIDGE, AZ – Coolidge residents will vote on July 21, 2026, on whether to grant Arizona Public Service Company a new franchise to operate its electrical infrastructure within city rights-of-way. The Coolidge City Council adopted Resolution 26-04 on February 9, ordering the franchise election. If approved, the 25-year agreement would keep the existing 2% franchise fee unchanged for customers.
How the APS Franchise Affects Coolidge Residents
The franchise agreement governs how APS builds, maintains, and operates its electrical system on public streets, alleys, and highways throughout Coolidge. Under Arizona law, this type of public utility agreement requires voter approval.
The current franchise between the city and APS expires in July 2027. However, APS public affairs representative Richard Rosales said the company sought renewal now because no major election is scheduled for 2027. If voters approve the measure, the new agreement’s 25-year term would begin July 2, 2027.
What the Agreement Covers
The proposed 25-year contract gives APS a non-exclusive right to use public rights-of-way for its electric utility. In return, APS must comply with city codes, restore any disturbed roads or surfaces, and carry insurance naming the city as an additional insured.
The agreement also outlines how relocation costs are shared. When the city requires APS to move facilities from public rights-of-way for projects such as road expansions, APS pays for the relocation. The city can also request underground installation when APS replaces, upgrades, or installs new overhead lines. In that case, the city pays the difference in cost between overhead and underground construction.
APS and city representatives must meet at least once per calendar year, or more often if necessary, to review upcoming projects and coordinate construction plans.
The 2% Franchise Fee
APS will continue paying the city 2% of its gross revenues from electrical sales and delivery within Coolidge. This fee is included on APS customer bills and the 2% rate would carry over under the new agreement. Payments are made to the city quarterly.
Furthermore, if APS enters into a franchise agreement with any other Arizona municipality that includes a higher fee or more revenue categories, the Coolidge City Council may elect to adopt the higher rate or expanded revenue categories.
Other Utilities With Franchise Agreements
APS is not the only utility that operates under franchise agreements. According to Rosales, Southwest Gas, Tucson Electric, and UNS also negotiate similar agreements with cities, towns, and counties. Other communications and cable providers operate under separate licensing agreements.
Statewide, APS holds 54 franchise agreements with municipalities and 11 county agreements, according to Rosales.
Voter Approval and APS Outreach
Rosales presented the franchise overview to the council. He said APS “does all the legwork on it by submitting the public notice, pay for our fair share of the elections, and conduct outreach to all the residents.”
To pass, the franchise must be approved by a majority of qualified Coolidge voters.
Ballot Language and the July 21 Election
On the ballot, voters will see a proposition asking whether to approve a franchise agreement with APS for 25 years. A “yes” vote approves APS’s use of city-owned public rights-of-way. A “no” vote rejects it.
If voters reject the franchise, APS would continue providing electric service. However, the company and the city would need to negotiate a new agreement for future right-of-way coordination. Rosales noted the primary date was recently moved, so APS plans to begin outreach quickly following the council’s approval.
