Ariz. Rev. Stat. § 40-209
Regulation of electricity suppliers providing electric generation service is a matter of statewide concern. Cities, including charter cities, towns and counties shall not require franchises for electricity suppliers to provide electric generation service within its jurisdiction and shall not impose rents, charges or taxes on the use of public streets, roads and alleys on electricity suppliers for the provision of electric generation service within its jurisdiction, except that a fee equal to the franchise fee of the electric distribution utility may be charged to the electricity supplier on any portion of a retail electricity sale not otherwise subject to a franchise fee made using electric distribution facilities in service territories that are franchised as of the effective date of this section. Nothing in this subsection affects the authority of cities, including charter cities, towns and counties to require franchises for electricity suppliers providing electric distribution service within their jurisdiction.
A.R.S. § 40-209