December 22, 2014 9:40 AM ET

Electric Utilities

Company Overview of Tucson Electric Power Company

Company Overview

Tucson Electric Power Company generates, transmits, and distributes electricity in Arizona. The company generates electricity through coal, gas, oil, and solar projects. It serves 413,000 retail electric customers covering an area of 1,155 square miles in southeastern Arizona. As of December 31, 2013, the company owned or leased 2, 240 megawatts of net generating capacity; and owned or participated in an overhead electric transmission and distribution system consisting of 564 circuit-miles of 500-kilovolt (kV) lines, 1,088 circuit-miles of 345-kV lines, 413 circuit-miles of 138-kV lines, 481 circuit-miles of 46-kV lines, and 2,605 circuit-miles of lower voltage primary lines. It also has und...

88 East Broadway Boulevard

Tucson, AZ 85701

United States

Founded in 1892

1,398 Employees

Phone:

520-571-4000

Key Executives for Tucson Electric Power Company

Chief Executive Officer
Age: 47
Executive Chairman
Age: 62
Chief Financial Officer
Age: 57
Principal Accounting Officer
Age: 49
Chief Compliance Officer and Vice President
Age: 59
Compensation as of Fiscal Year 2014.

Tucson Electric Power Company Key Developments

UniSource Energy Services Gains Efficient Energy Resource with Purchase of Natural Gas Generation

UniSource Energy Services has strengthened its generating portfolio and reduced its reliance on the wholesale energy market through the purchase of a share of the efficient natural gas-fired Gila River Power Station in Gila Bend. Under the terms of the purchase, its subsidiary UNS Electric, Inc. and sister company Tucson Electric Power (TEP) acquired the 550-megawatt (MW) Gila River Power Station Power Block 3 from Gila River Power LLC for USD 219 million. UNS Electric will control 137 MW of the unit's energy, while TEP will own the remaining output. The plant represents UES' first "base-load" power plant intended for near-continuous use. The company also owns natural gas-fired turbines with a combined capacity of 153 MW, but those units are designed to produce power only during periods of high demand, when UES' peak can exceed 450 MW. UES has traditionally purchased the majority of its power on the wholesale energy market at variable prices that reflect natural gas costs, regional energy demand and other market forces. Gila River Power Block 3 will reduce the need for such purchases. The plant is designed to operate throughout the year and is capable of meeting approximately one-third of UES electric customers' energy needs.

Tucson Electric Power Co. Secures $200 Million in Credit Commitments

Tucson Electric Power entered into a credit agreement that provides for a $130 million term loan commitment and a $70 million revolving credit commitment. To supplement its liquidity, Tucson Electric Power Co. on Dec. 2 entered into a credit agreement that provides for a $130 million term loan commitment and a $70 million revolving credit commitment. Any amount borrowed under the term loan commitment must be drawn by Jan. 15, 2015, and may only be used to purchase certain existing tax-exempt bonds issued for the benefit of Tucson Electric. Any amount borrowed under the revolving credit commitment may be used for general corporate purposes. It expects that borrowings under the revolving credit commitment will be made from time to time to fund planned purchases of generating facilities and for other general corporate purposes. The Fortis Inc. subsidiary's core credit facility, which was entered into in 2010 and amended in 2011, has an expiration date of November 2016. That facility will continue to provide the company with access to $200 million of revolving credit and $82 million in letters of credit supporting variable-rate tax-exempt bonds. Tucson Electric said all loans made under the term loan and revolving credit commitments will be due and payable on the termination date of the credit agreement, which is Nov. 30, 2015. Tucson Electric entered into the credit agreement with MUFG Union Bank, as administrative agent, sole arranger and lender, and a group of lenders.

SunZia Transmission LLC Sues Tucson Electric Power Co. over Management of Controversial Project

SunZia Transmission LLC has taken Tucson Electric Power Co. to court over the handling of a planned project to build a 515-mile high-voltage transmission line between central Arizona and central New Mexico. SunZia Transmission LLC's lawsuit filed in Pima County Superior Court on September 29, 2014 announced that TEP has improperly taken over management of the proposed $2 billion SunZia Southwest Transmission Project. In the suit the company has requested a court decision that TEP lacks authority over the project, voiding any steps TEP has taken as project manager and relieving the other SunZia project partners of liability for any investments TEP has made in relation with the project's second phase. SunZia Transmission has also asked the court to hire a receiver to handle the project and protect its stakes, as well as undisclosed money damages. SunZia says it has spent $710,250 on the project and could suffer damages of over $50 million.

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
December 27, 2013
Gila River Power, LLC, Unit 3 & Interests in Associated Common Facilities
 

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