A new Arizona Corporation Commission policy prohibits state-regulated utilities, like TEP, from developing, implementing and enforcing mandatory COVID-19 vaccination policies as a condition of employment.

 Rebecca Sasnett, Arizona Daily Star

State-regulated utilities such as Tucson Electric Power could face fines if they fire workers for refusing COVID-19 vaccinations.

The Arizona Corporation Commission voted along party lines Tuesday to notify the state-regulated utilities of the policy statement the panel adopted in December โ€” and possible penalties โ€” at the urging of Commissioner Jim Oโ€™Connor, a Scottsdale Republican.

Oโ€™Connor had proposed the original policy statement, which includes no reference to enforcement and is somewhat moot for now as federal vaccination mandates are tied up in court.

A letter to the state-regulated utilities, which also include Arizona Public Service Co., Southwest Gas and dozens of smaller companies, would also require the utilities to file information on any employees fired for not being vaccinated with the ACC and put them on notice that the commission โ€œmay impose fines/penalties on any regulated utility found in violation of this policy.โ€

The measure passed with no discussion on a 3-2 vote, with Democrats Sandra Kennedy and Anna Tovar opposing it as they had the original policy statement.

The policy statement prohibits the companies from developing, implementing and enforcing mandatory COVID-19 vaccination policies as a condition of employment.

TEP and other state-regulated utilities say they have no plans of their own to mandate vaccination or testing, beyond the current workplace-safety protocols.

Like many large employers, the Arizona utilities are closely monitoring the legal status of a Biden administration workplace-safety rule requiring employees of large employers and federal contractors be vaccinated. Utilities including TEP provide service to Arizonaโ€™s military bases under federal contracts.

But the federal vaccination mandates on large private employers, federal contractors and federal employees all are now held up in various courts.

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Contact senior reporter David Wichner at dwichner@tucson.com or 520-573-4181. On Twitter: @dwichner. On Facebook: Facebook.com/DailyStarBiz