SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
STATEMENT BY HOLDING COMPANY
CLAIMING EXEMPTION UNDER
RULE U-3A-2 FROM THE PROVISIONS
OF THE PUBLIC UTILITY HOLDING
COMPANY ACT OF 1935
To be Filed Annually Prior to March 1
TUCSON ELECTRIC POWER COMPANY
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of
the Public Utility Holding Company Act of 1935, and submits the following
information:
1. Name, State of organization, location and nature of business of
claimant and every subsidiary thereof, other than any exempt wholesale
generator (EWG) or foreign utility company in which claimant directly or
indirectly holds an interest.
(a) Tucson Electric Power Company (the "Company" or "TEP"),
incorporated under the laws of the State of Arizona, is an operating public
utility engaged in the generation, purchase, transmission, distribution and
sale of electricity to retail customers in the City of Tucson, Arizona, and
the surrounding area and to wholesale customers. The Company controls,
directly or indirectly, 50% or more of the "voting securities" of the
following subsidiaries: Catalina Securities, Inc., Escavada Company, Gallo
Wash Development Company, Nations Energy Corporation, Palomas Securities
Inc., Pantano Securities Inc., Rincon Investing Company, Sabino Investing
Inc., San Carlos Resources Inc., Santa Clara Resources Inc., Santa Cruz
Resources Inc., Santa Rita Energy Inc., Santa Rita Jonesboro, Inc., Santa
Rita West Enfield, Inc., Santa Rosa Resources Inc., Sierrita Resources Inc.,
Sofar 1 Inc., Sofar 2 Inc., Sofar 3 Inc., Sofar 4 Inc., Tucson Resources
Inc., Tucsonel Inc., Valencia Energy Company, Picacho-Warner Center Inc.,
Brookland Financial Corporation, BFC Receivables Financing Corporation I, BFC
Receivables Financing Corporation II, BFC Receivables Financing Corporation
III and Irvine Portfolio Services Inc.
The Company controls, directly or indirectly, less than 10% of the
"voting securities" of the following company: None.
(b) Catalina Securities Inc., incorporated in the State of New York,
is a wholly-owned subsidiary of TRI (as hereinafter defined) and is presently
inactive.
(c) Escavada Company, incorporated under the laws of the State of
Arizona, is a wholly-owned subsidiary of the Company engaged in the business
of maintaining miscellaneous assets and property.
(d) Gallo Wash Development Company, incorporated in the State of
Arizona, is a wholly-owned subsidiary of Valencia Energy Company engaged in
the business of acquiring, retaining and disposing of certain rights related
to the development and operation of a coal mine at Gallo Wash, New Mexico.
The coal mine was transferred to Santa Fe Pacific Coal in 1991.
(e) Nations Energy Corporation, incorporated in the State of Arizona,
is a wholly-owned subsidiary of the Company (formerly known as Escalante
Resources Inc.) recently re-organized to develop and invest in independent
power projects, including QFs, EWGs and FUCOs, located in the United States
and abroad.
(f) Palomas Securities Inc., incorporated in the State of New York, is
a wholly-owned subsidiary of SRI (as hereinafter defined) and is presently
inactive.
(g) Pantano Securities Inc., incorporated in the State of New York, is
a wholly-owned subsidiary of SRI and is presently inactive.
(h) Rincon Investing Company, incorporated under the laws of the State
of Arizona, is a wholly-owned subsidiary of TRI and is presently inactive.
(i) Sabino Investing Inc., incorporated in the State of Delaware, is a
wholly-owned subsidiary of TRI which holds real estate.
(j) San Carlos Resources Inc. ("San Carlos"), incorporated in the
State of Arizona, is a wholly-owned subsidiary of the Company which holds
title to Unit No. 2 of the Springerville Generating Station, a generating
facility in commercial operation located in Apache County, Arizona, and is
the lessee, jointly and severally with the Company, of an undivided one-half
interest in all facilities and personal property used in common between Unit
No. 1 and Unit No. 2 of the Springerville Generating Station.
(k) Santa Clara Resources Inc., incorporated in the State of Delaware,
is a wholly-owned subsidiary of SRI and is presently inactive.
(l) Santa Cruz Resources Inc., incorporated in the State of Delaware,
is a wholly-owned subsidiary of SRI which holds an investment in a financial
service company.
(m) Santa Rita Energy Inc., incorporated in the State of Delaware, is
a wholly-owned subsidiary of Rincon Investing Company and is presently
inactive.
(n) Santa Rita Jonesboro, Inc., incorporated in the State of Delaware,
is a wholly-owned subsidiary of Santa Rita Energy Inc., and is presently
inactive.
(o) Santa Rita West Enfield, Inc., incorporated in the State of
Delaware, is a wholly-owned subsidiary of Santa Rita Energy Inc. and is
presently inactive.
(p) Santa Rosa Resources Inc., incorporated in the State of Arizona,
is one of the general partners in the Arizona partnership of Kingswood Parke
Associates formed for the limited purpose of purchasing real property for
development and is a wholly-owned subsidiary of SRI.
(q) Sierrita Resources Inc. ("SRI"), incorporated in the State of
Delaware, is a wholly-owned subsidiary of the Company which invests primarily
in financial assets.
(r) Sofar 1 Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of Sabino Investing Inc. which holds an investment in a note
secured by real estate.
(s) Sofar 2 Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of Sabino Investing Inc. and is currently winding up its
affairs as it sold its principal asset, a hotel located in Kentucky.
(t) Sofar 3 Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of SRI and is presently inactive.
(u) Sofar 4 Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of SRI and is presently inactive.
(v) Tucson Resources Inc. ("TRI"), incorporated under the laws of the
State of Delaware, is a wholly-owned subsidiary of the Company which invests
primarily in financial assets.
(w) Tucsonel Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of the Company and is presently inactive.
(x) Valencia Energy Company ("Valencia"), incorporated under the laws
of the State of Arizona, is a wholly-owned subsidiary of the Company
responsible for the acquisition, transportation and handling of fuel for the
Springerville Generating Station. Valencia has the exclusive right and
obligation to provide all of the fuel requirements of the Springerville
Generating Station.
(y) Picacho-Warner Center Inc., incorporated in the State of Arizona,
is a wholly-owned subsidiary of Santa Cruz Resources, Inc. and is currently
winding up its affairs as the sole general partner of Warner Center Hotel
Properties, a California limited partnership which recently sold its
principal asset, a hotel located in California.
(z) Brookland Financial Corporation, incorporated in the State of
California, is a wholly-owned subsidiary of Santa Cruz Resources Inc. which
financed automobile installment sales and leasing contracts.
(aa) BFC Receivables Financing Corporation I, incorporated in the State
of Delaware, is a wholly-owned subsidiary of Brookland Financial Corporation
and is a special purpose corporation organized to acquire and transfer
automobile receivables.
(bb) BFC Receivables Financing Corporation II, incorporated in the
State of Delaware, is a wholly-owned subsidiary of Sabino Investing Inc. and
is a special purpose corporation organized to acquire and transfer automobile
receivables.
(cc) BFC Receivables Financing Corporation III, incorporated in the State
of Delaware, is a wholly-owned subsidiary of SRI and is a special purpose
corporation organized to acquire and transfer automobile receivables.
(dd) Irvine Portfolio Services Inc., incorporated in the State of
California, is a wholly-owned subsidiary of Brookland Financial Corporation
and is presently inactive.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation, transmission and
distribution of electric energy for sale, or for the production, transmission
and distribution of natural or manufactured gas, indicating the location of
principal generating plants, transmission lines, producing fields, gas
manufacturing plants, and electric and gas distribution facilities, including
all such properties which are outside the State in which claimant and its
subsidiaries are organized and all transmission or pipelines which deliver or
receive electric energy or gas at the borders of such State.
As of December 31, 1994, the Company owned or participated in an
overhead electric transmission and distribution system consisting of 511
circuit-miles of 500 kV lines, 1122 circuit-miles of 345 kV lines, 335
circuit-miles of 138 kV lines, 454 circuit-miles of 46 kV lines, and 8,947
circuit-miles of lower voltage primary lines. The underground electric
distribution system comprised of 4,223 cable miles. Approximately 25% of the
poles upon which the lower voltage lines are located are not owned by the
Company. Electric substation capacity associated with the above-described
electric system consisted of 165 substations with a total installed
transformer capacity of 5,209,355 kVA. The above facilities are all located
in Arizona except for certain transmission lines consisting of 559.55 circuit-
miles of 345 kV in which the Company has a fractional undivided interest
which are located in the State of New Mexico and deliver electric energy to
the Company's Arizona transmission lines at the Arizona-New Mexico border.
Except as otherwise noted, the Company owns or leases interest in the
following generating stations:
Net
Capacity Operating TEP's Share
Generating Source Location MW Agent % MW
San Juan Station #1 Farmington, NM 316 PNM 50 158
San Juan Station #2 Farmington, NM 312 PNM 50 156
Navajo Station #1 Page, AZ 750 SRP 7.5 56
Navajo Station #2 Page, AZ 750 SRP 7.5 56
Navajo Station #3 Page, AZ 750 SRP 7.5 56
Four Corners
Station #4 Farmington, NM 784 APS 7 55
Four Corners
Station #5 Farmington, NM 784 APS 7 55
Irvington Station Tucson, AZ 422 TEP 100 422
Internal Combustion
Turbines Tucson, AZ 218 TEP 100 218
Springerville
Generating
Station #1 Springerville, AZ 360 TEP 100 360
Springerville
Generating
Station #2 Springerville, AZ 360 TEP 100 360
TOTAL 1,952
The electric generating stations, the Company's general office building,
operating headquarters, the warehouse, service center, and the electric
distribution and electric transmission facilities owned by the Company are
located in Arizona, except as otherwise noted. The Company, individually and
in conjunction with Public Service Company of New Mexico in connection with
the San Juan Station, has acquired easements and leases for transmission
lines and a water diversion facility located on the Navajo Indian
Reservation. The Company has also acquired easements for transmission
facilities, related to the San Juan and Navajo Generating Stations, across
the Zuni, Navajo and Tohono O'Odham Indian Reservations.
Various undivided interests in the common facilities at the Irvington
Generating Station which serve Unit 4 were sold and are leased back by the
Company. The 50% undivided interest of San Carlos in the common facilities
at the Springerville Generating Station were sold by San Carlos and leased
back by the Company and San Carlos, jointly and severally. The coal-handling
facilities at the Springerville Generating Station were sold and leased back
by Valencia. Effective December 15, 1992, the Company assumed the obligation
of Century Power Corporation as Lessee under a sale and leaseback of
Springerville Unit 1 and an undivided 50% interest in the facilities common
to Unit 1 and Unit 2.
San Carlos holds title to Springerville Unit 2 of the Springerville
Generating Station, together with the remaining undivided 50% interest in the
facilities common to Unit 1 and Unit 2.
3. The following information for the last calendar year with respect to
claimant and each of its subsidiary public utility companies:
(a) Number of kWh of electric energy sold (at retail or wholesale), and
Mcf. of natural or manufactured gas distributed at retail.
Electricity Gas
Tucson Electric 10,028,718,000 None
Power Company
San Carlos None None
Resources Inc.
(b) Number of kWh of electric energy and Mcf. of natural or
manufactured gas distributed at retail outside the State in which each
company is organized.
None
(c) Number of kWh of electric energy and Mcf. of natural or
manufactured gas sold at wholesale outside the State in which each such
company is organized, or at the State line.
Electricity Gas
Tucson Electric 1,798,418,000 None
Power Company
San Carlos None None
Resources Inc.
d) Number of kWh of electric energy and Mcf. of natural or manufactured
gas purchased outside the State in which each such company is organized
or at the State line.
Electricity Gas
Tucson Electric 525,510,000 None
Power Company
San Carlos None None
Resources Inc.
4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in an
EWG or a foreign utility company, stating monetary amounts in United States
dollars:
(a) Name, location, business address and description of the facilities
used by the EWG or foreign utility company for the generation, transmission
and distribution of electric energy for sale or for the distribution at
retail of natural or manufactured gas.
Inapplicable.
(b) Name of each system company that holds an interest in such EWG or
foreign utility company; and description of the interest held.
Inapplicable; while Nations Energy Corporation, a wholly-owned
subsidiary of the Company, may acquire such interests in the future, none are
currently held.
(c) Type and amount of capital invested, directly or indirectly, by the
holding company claiming exemption; any direct or indirect guarantee of the
security of the EWG or foreign utility company by the holding company
claiming exemption; and any debt or other financial obligation for which
there is recourse, directly or indirectly, to the holding company claiming
exemption or another system company, other than the EWG or foreign utility
company.
Inapplicable.
(d) Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
Inapplicable.
(e) Identify any service, sales or construction contract(s) between the
EWG or foreign utility company and a system company, and describe the
services to be rendered or goods sold and fees or revenues under such
agreement(s).
Inapplicable.
EXHIBIT A
A consolidating statement of income and surplus of the claimant and its
subsidiary companies for the last calendar year, together with a
consolidating balance sheet of claimant and its subsidiary companies as of
the close of such calendar year.
Exhibit A, which is incorporated herein by reference, includes a
consolidating balance sheet and a consolidating statement of income (loss)
for the company and its majority-owned subsidiaries.
This statement is being filed to claim exemption in the event that San
Carlos Resources Inc. is an "electric utility company" under the Act.
However, the filing of this statement is not an acknowledgment by TEP that
San Carlos Resources Inc. is an "electric utility company".
The above-named claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 28th day of February, 1995.
TUCSON ELECTRIC POWER COMPANY
By KAREN G. KISSINGER
Vice President & Controller
(Corporate Seal)
Attest:
_________________________
Name, title and address of officer to whom notices and correspondence
concerning this statement should be addressed: Dennis R. Nelson, Vice
President, General Counsel and Corporate Secretary, Tucson Electric Power
Company, 220 West Sixth Street, Tucson, Arizona 85701
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1994
(in thousands)
<CAPTION>
TUCSON RESTATED
ELECTRIC UTILITY INVESTMENT CONSOL. 1994 1993
POWER CO. SUBS * SUBS ** ADJUST. CONSOL. CONSOL.***
----------- --------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Utility Plant
Plant in Service $2,049,817 $ 3,306 $ $ $2,053,123 $2,004,112
Utility Plant Under Capital Leases 703,880 189,184 893,064 894,508
Construction Work in Progress 40,870 40,870 33,568
----------- --------- ---------- ---------- ----------- -----------
Total Utility Plant 2,794,567 192,490 2,987,057 2,932,188
Less Accumulated Depreciation and
Amortization (790,885) (732) (791,617) (727,101)
Less Accumulated Amortization of
Capital Leases (20,476) (5,119) (25,595) (12,634)
Less Allowance for Springerville Unit 1 (162,423) (162,423) (162,689)
----------- --------- ---------- ---------- ----------- -----------
Total Utility Plant - Net 1,820,783 186,639 2,007,422 2,029,764
----------- --------- ---------- ---------- ----------- -----------
Investments
Subsidiary and Other Investments 5,704 289 (1,686) A 4,307 4,370
Net Assets of Discontinued Operations 4,307 4,378 B 8,685 58,480
----------- --------- ---------- ---------- ----------- -----------
Total Investments 5,704 289 4,307 2,692 12,992 62,850
----------- --------- ---------- ---------- ----------- -----------
Current Assets
Cash and Cash Equivalents 233,266 34 233,300 139,817
Notes Receivable from Subsidiaries 114,200 (114,200) C - -
Accounts Receivable 74,678 74,943 (83,289) D 66,332 65,212
Materials and Fuel 29,542 6,567 36,109 36,312
Deferred Income Tax - Current 2,729 10,141 12,870 8,927
Other 11,264 41 (586) E 10,719 10,538
----------- --------- ---------- ---------- ----------- -----------
Total Current Assets 465,679 91,726 (198,075) 359,330 260,806
----------- --------- ---------- ---------- ----------- -----------
Deferred Debits - Regulatory Assets
Income Taxes Recoverable Through
Future Rates 143,372 143,372 149,508
Deferred Common Facility Costs 65,843 65,843 68,383
Deferred Springerville Unit 2 Costs 54,983 54,983 67,543
Deferred Lease Expense (28,703) 53,931 25,228 32,602
Deferred Fuel and Purchased Power Expense 5,872 5,872 13,231
Other Deferred Regulatory Assets 5,502 3,860 9,362 8,165
Deferred Debits - Other 14,046 3,486 17,532 21,244
----------- --------- ---------- ---------- ----------- -----------
Total Deferred Debits 260,915 61,277 322,192 360,676
----------- --------- ---------- ---------- ----------- -----------
Total Assets $2,553,081 $339,931 $ 4,307 $(195,383) $2,701,936 $2,714,096
=========== ========= ========== ========== =========== ===========
* Utility Subs include Valencia Energy Co. and Escavada Co.
** Investment Subs include Tucson Resources Inc. and Sierrita Resources Inc.
*** Restated to reflect certain reclassifications of assets and liabilities to conform to the December 31, 1994 presentation.
</TABLE>
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1994
(in thousands)
<CAPTION>
TUCSON RESTATED
ELECTRIC UTILITY INVESTMENT CONSOL. 1994 1993
POWER CO. SUBS SUBS ADJUST. CONSOL. CONSOL.***
----------- --------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITALIZATION AND OTHER LIABILITIES
Capitalization
Common Stock $ 645,479 $ 2 $ 2 $ (4) $ 645,479 $ 645,479
Premium on Capital Stock 5,000 291,445 (296,445) - -
Capital Stock Expense (6,357) (6,357) (6,357)
Accumulated Deficit (688,906) (7,623) (287,140) 302,314 (681,355) (702,095)
----------- --------- ---------- ---------- ----------- -----------
Common Stock Equity (Deficit) (49,784) (2,621) 4,307 5,865 F (42,233) (62,973)
Capital Lease Obligations 742,746 179,989 922,735 927,201
Long-Term Debt 1,381,935 1,381,935 1,416,352
----------- --------- ---------- ---------- ----------- -----------
Total Capitalization 2,074,897 177,368 4,307 5,865 2,262,437 2,280,580
----------- --------- ---------- ---------- ----------- -----------
Current Liabilities
Notes Payable to Parent 114,200 (114,200) G - -
Current Maturities of Long-Term Debt 17,015 152 17,167 2,203
Accounts Payable 109,955 16,870 (87,048) H 39,777 40,190
Interest Accrued 50,242 9,238 59,480 65,738
Taxes Accrued 24,780 4,435 29,215 20,269
Accrued Employee Expenses 15,247 15,247 4,222
Current Obligations Under Capital Leases 5,269 7,534 12,803 14,825
Other 6,627 (3) 6,624 6,389
----------- --------- ---------- ---------- ----------- -----------
Total Current Liabilities 229,135 152,426 (201,248) 180,313 153,836
----------- --------- ---------- ---------- ----------- -----------
Deferred Credits and Other Liabilities
MSR Option Gain Regulatory Liability 41,214 41,214 54,924
Accumulated Deferred Investment Tax Credits
Regulatory Liability 24,368 24,368 29,279
Accumulated Deferred Income Taxes 156,547 10,137 166,684 168,833
Other 26,920 26,920 26,644
----------- --------- ---------- ---------- ----------- -----------
Total Deferred Credits and Other Liabilities 249,049 10,137 259,186 279,680
----------- --------- ---------- ---------- ----------- -----------
Total Capitalization and Other Liabilities $2,553,081 $339,931 $ 4,307 $(195,383) $2,701,936 $2,714,096
=========== ========= ========== ========== =========== ===========
*** Restated to reflect certain reclassifications of assets and liabilities to conform to the December 31, 1994 presentation.
</TABLE>
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
NOTES TO CONSOLIDATED BALANCE SHEETS
CONSOLIDATION ADJUSTMENTS
DECEMBER 31, 1994
(in thousands)
<CAPTION>
ASSETS CAPITALIZATION AND OTHER LIABILITIES
------ ------------------------------------
<S> <C> <S> <C>
(A) Subsidiary and Other Investments: (F) Common Stock Equity (Deficit):
TEP's investment in subsidiaries $ 1,686 TEP's equity in subsidiaries $ 1,686
--------- TEP's accrual of late payment fees
to TRI and SRI net of tax benefit (7,551)
(B) Net Assets of Discontinued Operations: ---------
Receivable from affiliate - TRI 4,497 (5,865)
Receivable from affiliate - SRI 17 ---------
Payable to affiliate - SRI (755)
Late payment fees recorded in the (G) Notes Payable to Parent: 114,200
general provision for losses ---------
- TRI (6,506)
- SRI (1,631) (H) Accounts Payable:
--------- Payables to affiliates 87,048
(4,378) ---------
---------
(C) Notes Receivable from Subsidiaries - TEP:
Valencia 110,600
Escavada 3,600
---------
114,200
---------
(D) Accounts Receivable:
Receivables from affiliates
- TEP 8,911
- Valencia 73,986
- Escavada 392
---------
83,289
---------
(E) Other Current Assets:
Deferred tax related to the accrual
of late payment fees 586
---------
Total Adjustments $195,383 Total Adjustments $195,383
========= =========
</TABLE>
The components of net assets of discontinued operations EXHIBIT A
are summarized as follows:
December 31,
1994 1993
--------- ---------
-Thousands of Dollars-
ASSETS
- ------
Cash and Cash Equivalents $ 14,852 $ 22,179
Investment in Citadel - 23,374
Real Estate Investments 17,127 65,119
Vehicle Contracts Receivable 17,509 17,509
Other Assets and Investments 6,859 19,403
Reserve for Loss on Disposal of
Discontinued Operations (34,494) (74,109)
--------- ---------
Total Assets 21,853 73,475
--------- ---------
LIABILITIES
- -----------
Total Current Liabilities 13,168 14,995
--------- ---------
Net Assets of Discontinued Operations $ 8,685 $ 58,480
========= =========
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
TWELVE MONTHS ENDED DECEMBER 31, 1994
(in thousands except for per share amounts)
<CAPTION>
TUCSON
ELECTRIC UTILITY INVESTMENT CONSOL. 1994 1993
POWER CO. SUBS SUBS ADJUST. CONSOL. CONSOL.
--------- -------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
UTILITY OPERATIONS
Operating Revenues
Retail Customers $571,433 $ $ $ $571,433 $ 524,813
Amortization of MSR Option Gain
Regulatory Liability 20,053 20,053 6,053
Other Utilities 99,987 134,190 (134,190) (A) 99,987 93,273
--------- -------- ---------- ---------- --------- ----------
Total Operating Revenues 691,473 134,190 - (134,190) 691,473 624,139
--------- -------- ---------- ---------- --------- ----------
Operating Expenses
Fuel 214,874 129,205 (134,190) (B) 209,889 197,323
Purchased Power - Energy 13,878 13,878 9,032
Deferred Fuel and Purchased Power 7,359 7,359 10,716
Capital Lease Expense 93,056 93,056 92,844
Amortization of Springerville
Unit 1 Allowance (26,204) (26,204) (33,398)
Other Operations 100,948 100,948 90,880
Maintenance and Repairs 42,122 42,122 42,300
Depreciation and Amortization 89,905 89,905 74,184
Taxes Other than Income Taxes 46,118 46,118 54,814
Financial Restructuring Costs - 1,498
--------- -------- ---------- ---------- --------- ----------
Total Operating Expenses 582,056 129,205 - (134,190) 577,071 540,193
--------- -------- ---------- ---------- --------- ----------
Utility Operating Income 109,417 4,985 - - 114,402 83,946
--------- -------- ---------- ---------- --------- ----------
Other Income (Deductions)
Regulatory Disallowances and Adjustments - (13,777)
Deferred Springerville Unit 2 Carrying
Costs 1,133 1,133 5,359
Interest Income 7,556 7,556 3,909
Income Taxes 4,820 4,820 5,186
Other 8,026 3,579 (39,615) 28,499 (C) 489 805
--------- -------- ---------- ---------- --------- ----------
Total Other Income (Deductions) 21,535 3,579 (39,615) 28,499 13,998 1,482
--------- -------- ---------- ---------- --------- ----------
Interest Expense
Long-Term Debt - Net 69,286 67 69,353 68,053
Regulatory Interest 32,280 32,280 31,303
Short-Term Debt 2,619 5,629 (8,248) (D) - -
Other 7,118 7,118 8,604
Allowance for Borrowed Funds Used
During Construction (1,091) (1,091) (716)
--------- -------- ---------- ---------- --------- ----------
Total Interest Expense 110,212 5,696 - (8,248) 107,660 107,244
--------- -------- ---------- ---------- --------- ----------
Discontinued Operations Adjustment 39,615 (39,615) (E) - -
Income (Loss) from Continuing Operations 20,740 2,868 - (2,868) 20,740 (21,816)
Provision for Loss on Disposal of
Discontinued Operations - (4,000)
--------- -------- ---------- ---------- --------- ----------
Net Income (Loss) $ 20,740 $ 2,868 $ - $ (2,868) $ 20,740 $ (25,816)
========= ======== ========== ========== ========= ==========
Average Shares of
Common Stock Outstanding 160,724 160,544
Net Income (Loss) per Average Share
Continuing Operations $ 0.13 $ (0.14)
Discontinued Operations - (0.02)
--------- ----------
Total Net Income (Loss) per Average Share $ 0.13 $ (0.16)
========= ==========
NOTE: To conform with the 1994 presentation, the 1993 Operating Revenues and
Taxes Other than Income Taxes
amounts have been restated to remove revenue related taxes.
</TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
NOTES TO CONSOLIDATED STATEMENTS OF INCOME (LOSS)
CONSOLIDATION ADJUSTMENTS
DECEMBER 31, 1994
(dollars in thousands)
12 MONTHS
ENDED
---------
(A) Operating Revenues - Other Utilities:
Valencia coal sales to TEP 134,190
(B) Fuel:
Coal purchased by TEP from Valencia 134,190
(C) Other Income (Deductions) - Other:
TEP's equity in subsidiary earnings 2,868
Investment operating loss (39,615)
Inter-company interest income accrued by
TEP and the Utility Subsidiaries 8,248
---------
(28,499)
=========
(D) Interest Expense - Short-Term Debt:
Inter-company interest expense accrued by
TEP and the Utility Subsidiaries 8,248
(E) Discontinued Operations Adjustment:
Transfer loss to provision for losses 39,615
TUCSON ELECTRIC POWER COMPANY
FINANCIAL DATA SCHEDULE
EXHIBIT B
DECEMBER 31, 1994
(dollars in thousands)
Total Assets $2,701,936
===========
Total Operating Revenues $ 691,473
===========
Net Income $ 20,740
===========
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding company system.
Not applicable.
