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: Biomasa Generacion, S. de R.L. de C.V., Catalina
Securities, Inc., Escavada Company, Gallo Wash Development Company, Nations-
Colorado Energy Corporation, Nations Energy Corporation, Nations International,
Ltd., Palomas Securities Inc., Pantano Securities Inc., Rincon Investing
Company, Sabino Investing Inc., San Carlos Resources Inc., Santa Cruz Resources
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 Corporation.
The Company controls, directly or indirectly, less than 10% of the
"voting securities" of the following company: None.
(b) Biomasa Generacion, S. de R.L. de C.V., incorporated under the
laws of Honduras, is 70 percent beneficially owned by Nations (as hereinafter
defined), and is organized for the purpose of developing and owning
biomass-fueled non-utility generating projects in Honduras. At the appropriate
time, the Company anticipates filing an EWG application for any such projects
that are constructed in Honduras.
(c) Catalina Securities Inc., incorporated in the State of New York,
is a wholly-owned subsidiary of TRI (as hereinafter defined) and is presently
in the process of being dissolved.
(d) Escavada Company ("Escavada"), 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.
(e) 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.
(f) Nations-Colorado Energy Corporation, incorporated in the State of
Delaware, is a wholly-owned subsidiary of Nations Energy Corporation and holds
a general and limited partnership interest in a partnership which in turn owns
and operates an electric and thermal energy generating facility serving Coors
Brewing Company in Golden, Colorado. The facility is a "qualifying facility"
under the Public Utility Regulatory Policies Act of 1978.
(g) Nations Energy Corporation ("Nations") (formerly known as
Escalante Resources Inc.), incorporated in the State of Arizona, is a wholly-
owned subsidiary of the Company recently re-organized to develop and invest in
independent power projects, including QFs, EWGs and FUCOs, located in the
United States and abroad.
(h) Nations International, Ltd., incorporated under the laws of the
Cayman Islands, is beneficially owned by Nations and was organized for the
purpose of investing in international non-utility power projects.
(i) Palomas Securities Inc., incorporated in the State of New York,
is a wholly-owned subsidiary of SRI (as hereinafter defined) and is presently
in the process of being dissolved.
(j) Pantano Securities Inc., incorporated in the State of New York,
is a wholly-owned subsidiary of SRI and is presently in the process of being
dissolved.
(k) Rincon Investing Company, incorporated under the laws of the
State of Arizona, is a wholly-owned subsidiary of TRI and is presently
inactive.
(l) Sabino Investing Inc., incorporated in the State of Delaware, is
a wholly-owned subsidiary of TRI and holds certain real estate assets.
(m) San Carlos Resources Inc. ("San Carlos"), incorporated in the
State of Arizona, is a wholly-owned subsidiary of the Company and 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.
(n) Santa Cruz Resources Inc., incorporated in the State of Delaware,
is a wholly-owned subsidiary of SRI and holds an investment in a financial
service company.
(o) Santa Rosa Resources Inc., incorporated in the State of Arizona,
is a wholly-owned subsidiary of SRI and is one of the general partners in the
now inactive Arizona partnership Kingswood Parke Associates, formed for the
limited purpose of purchasing real property for development.
(p) Sierrita Resources Inc. ("SRI"), incorporated in the State of
Delaware, is a wholly-owned subsidiary of the Company and was formed primarily
to invest in financial assets.
(q) Sofar 1 Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of Sabino Investing Inc. and is presently inactive.
(r) Sofar 2 Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of Sabino Investing Inc. and is presently inactive.
(s) Sofar 3 Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of SRI and is presently inactive.
(t) Sofar 4 Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of SRI and is presently inactive.
(u) Tucson Resources Inc. ("TRI"), incorporated under the laws of the
State of Delaware, is a wholly-owned subsidiary of the Company and was formed
primarily to invest in financial assets.
(v) Tucsonel Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of the Company and is presently inactive.
(w) 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.
(x) 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.
(y) Brookland Financial Corporation ("Brookland"), incorporated in
the State of California, is a wholly-owned subsidiary of Santa Cruz Resources
Inc. and financed automobile installment sales and leasing contracts.
(z) 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 that was organized to acquire
and transfer automobile receivables.
(aa) 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 that was organized to acquire and transfer
automobile receivables.
(bb) BFC Receivables Financing Corporation III, incorporated in the
State of Delaware, is a wholly-owned subsidiary of SRI and is a special
purpose corporation that was organized to acquire and transfer automobile
receivables.
(cc) 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, 1995, 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 9,233
circuit-miles of lower voltage primary lines. The underground electric
distribution system is comprised of 4,514 cable miles. Approximately 24% 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 166 substations with a total installed
transformer capacity of 5,258,355 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 and
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 has a leasehold interest in
the following generating stations:
Net
Capability 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 9,248,339,000 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 1,447,443,000 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 618,380,000 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.
(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
-----------------------------
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, 1995
(in thousands)
<CAPTION>
TUCSON RESTATED
ELECTRIC UTILITY NATIONS INVESTMENT CONSOL. 1995 1994
POWER CO. SUBS * ENERGY SUBS ** ADJUST. CONSOL. CONSOL.***
----------- --------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Utility Plant
Plant in Service $2,091,975 $ 3,704 $ $ $ $2,095,679 $2,053,123
Utility Plant Under Capital Leases 703,880 189,184 893,064 893,064
Construction Work in Progress 50,898 50,898 40,870
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Utility Plant 2,846,753 192,888 3,039,641 2,987,057
Less Accumulated Depreciation and
Amortization (858,409) (818) (859,227) (791,617)
Less Accumulated Amortization of
Capital Leases (32,066) (8,047) (40,113) (25,595)
Less Allowance for Springerville Unit 1 (162,175) (162,175) (162,423)
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Utility Plant - Net 1,794,103 184,023 1,978,126 2,007,422
----------- --------- ---------- ---------- ----------- ----------- -----------
Investments
Investments and Other Property 34,897 1,150 12,878 13,202 (10,011) A 52,116 4,307
Net Assets of Discontinued Operations - 8,685
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Investments 34,897 1,150 12,878 13,202 (10,011) 52,116 12,992
----------- --------- ---------- ---------- ----------- ----------- -----------
Current Assets
Cash and Cash Equivalents 77,914 28 313 6,839 85,094 233,300
Notes Receivable from Subsidiaries 114,200 (114,200) B - -
Accounts Receivable 71,340 57,740 541 4,418 (72,322) C 61,717 66,332
Materials and Fuel 31,774 10,394 42,168 36,109
Deferred Income Taxes - Current 5,876 12,374 18,250 12,870
Other 6,852 457 237 19 7,565 8,376
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Current Assets 307,956 80,993 1,091 11,276 (186,522) 214,794 356,987
----------- --------- ---------- ---------- ----------- ----------- -----------
Deferred Debits - Regulatory Assets
Income Taxes Recoverable Through
Future Rates 135,957 135,957 143,372
Deferred Common Facility Costs 63,303 63,303 65,843
Deferred Springerville Unit 2 Costs 42,039 42,039 54,983
Deferred Lease Expense (33,814) 53,622 19,808 25,228
Other Deferred Regulatory Assets 4,909 3,667 8,576 15,234
Deferred Debits - Other 12,725 3,486 16,211 17,532
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Deferred Debits 225,119 60,775 285,894 322,192
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Assets $2,362,075 $326,941 $ 13,969 $ 24,478 $ (196,533) $2,530,930 $2,699,593
=========== ========= ========== ========== =========== =========== ===========
* Utility Subs include Valencia and Escavada.
** Investment Subs include TRI and SRI.
*** Restated to reflect certain reclassifications of assets and liabilities to conform to the December 31, 1995 presentation.
</TABLE>
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1995
(in thousands)
<CAPTION>
TUCSON RESTATED
ELECTRIC UTILITY NATIONS INVESTMENT CONSOL. 1995 1994
POWER CO. SUBS ENERGY SUBS ADJUST. CONSOL. CONSOL.***
----------- --------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
CAPITALIZATION AND OTHER LIABILITIES
Capitalization
Common Stock $ 645,295 $ 2 $ 1 $ 2 $ (5) $ 645,295 $ 645,479
Premium on Capital Stock 5,000 14,599 278,445 (298,044) - -
Capital Stock Expense (6,357) (6,357) (6,357)
Accumulated Deficit (634,001) (3,949) (1,327) (282,762) 295,589 (626,450) (681,355)
----------- --------- ---------- ---------- ----------- ----------- -----------
Common Stock Equity (Deficit) 4,937 1,053 13,273 (4,315) (2,460) D 12,488 (42,233)
Capital Lease Obligations 725,534 172,424 897,958 922,735
Long-Term Debt 1,207,460 1,207,460 1,381,935
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Capitalization 1,937,931 173,477 13,273 (4,315) (2,460) 2,117,906 2,262,437
----------- --------- ---------- ---------- ----------- ----------- -----------
Current Liabilities
Notes Payable to Parent 114,200 (114,200) E - -
Short-Term Debt 12,039 12,039 -
Current Obligations Under Capital Leases 25,823 7,566 33,389 12,803
Current Maturities of Long-Term Debt 12,075 12,075 17,167
Accounts Payable 77,044 19,367 262 827 (72,322) F 25,178 39,777
Interest Accrued 48,285 9,104 57,389 59,480
Taxes Accrued 23,460 (7,797) 33 15,696 29,215
Accrued Employee Expenses 13,315 365 13,680 15,247
Other 6,860 27 1,102 7,989 6,624
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Current Liabilities 206,862 142,440 687 13,968 (186,522) 177,435 180,313
----------- --------- ---------- ---------- ----------- ----------- -----------
Deferred Credits and Other Liabilities
MSR Option Gain Regulatory Liability 25,610 25,610 41,214
Accumulated Deferred Investment Tax Credits
Regulatory Liability 19,603 19,603 24,368
Other Regulatory Liabilities 10,343 10,343 469
Deferred Income Taxes - Noncurrent 134,372 11,024 586 G 145,982 164,341
Other 27,354 9 14,825 (8,137) H 34,051 26,451
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Deferred Credits and Other Liabilities 217,282 11,024 9 14,825 (7,551) 235,589 256,843
----------- --------- ---------- ---------- ----------- ----------- -----------
Total Capitalization and Other Liabilities $2,362,075 $326,941 $ 13,969 $ 24,478 $ (196,533) $2,530,930 $2,699,593
=========== ========= ========== ========== =========== =========== ===========
*** Restated to reflect certain reclassifications of assets and liabilities to conform to the December 31, 1995 presentation.
</TABLE>
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
NOTES TO CONSOLIDATED BALANCE SHEETS
CONSOLIDATION ADJUSTMENTS
DECEMBER 31, 1995
(in thousands)
<CAPTION>
ASSETS CAPITALIZATION AND OTHER LIABILITIES
------ ------------------------------------
<S> <C> <S> <C>
(A) Investments and Other Property: (D) Common Stock Equity (Deficit):
TEP's investment in subsidiaries $ 10,011 TEP's equity in subsidiaries $ 10,011
--------- TEP's accrual of late payment fees
to TRI and SRI net of tax benefit (7,551)
(B) Notes Receivable from Subsidiaries - TEP: ---------
Valencia 110,600 2,460
Escavada 3,600 ---------
---------
114,200
--------- (E) Notes Payable to Parent: 114,200
(C) Accounts Receivable: ---------
Receivables from affiliates
- TEP 10,690 (F) Accounts Payable:
- Valencia 56,643 Payables to affiliates 72,322
- Escavada 562 ---------
- Nations 9 (G) Deferred Income Taxes - Noncurrent:
- TRI 4,401 Deferred tax related to the accrual
- SRI 17 of late payment fees (586)
--------- ---------
72,322
---------
(H) Other Deferred Credits:
Late payment fees recorded as
deferred income
- TRI 6,506
- SRI 1,631
---------
8,137
---------
Total Adjustments $196,533 Total Adjustments $196,533
========= =========
</TABLE>
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
CONSOLIDATED STATEMENTS OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 1995
(in thousands except for per share amounts)
<CAPTION>
TUCSON
ELECTRIC UTILITY NATIONS INVESTMENT CONSOL. 1995 1994
POWER CO. SUBS ENERGY SUBS ADJUST. CONSOL. CONSOL.
--------- -------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
UTILITY OPERATIONS
Operating Revenues
Retail Customers $574,925 $ $ $ $ $ 574,925 $ 571,433
Amortization of MSR Option Gain
Regulatory Liability 20,053 20,053 20,053
Other Utilities 75,591 109,710 (109,710) A 75,591 99,987
--------- -------- ---------- ---------- --------- ---------- ----------
Total Operating Revenues 670,569 109,710 - - (109,710) 670,569 691,473
--------- -------- ---------- ---------- --------- ---------- ----------
Operating Expenses
Fuel and Purchased Power 191,416 104,624 (109,710) B 186,330 231,126
Capital Lease Expense 95,441 95,441 93,056
Amortization of Springerville
Unit 1 Allowance (28,432) (28,432) (26,204)
Other Operations 99,493 99,493 101,039
Maintenance and Repairs 38,943 38,943 42,122
Depreciation and Amortization 92,179 92,179 89,905
Taxes Other Than Income Taxes 55,640 55,640 46,118
Income Taxes 9,274 (354) 8,920 (91)
--------- -------- ---------- ---------- --------- ---------- ----------
Total Operating Expenses 553,954 104,270 - - (109,710) 548,514 577,071
--------- -------- ---------- ---------- --------- ---------- ----------
Utility Operating Income 116,615 5,440 - - - 122,055 114,402
--------- -------- ---------- ---------- --------- ---------- ----------
Other Income (Deductions)
Deferred Springerville Unit 2
Carrying Costs 1,127 1,127 1,133
Interest Income 7,811 29 382 8,222 7,556
Income Taxes 28,363 993 29,356 4,820
Other Income 11,967 3,398 (1,356) 3,996 (15,179) C 2,826 489
--------- -------- ---------- ---------- --------- ---------- ----------
Total Other Income (Deductions) 49,268 4,391 (1,327) 4,378 (15,179) 41,531 13,998
--------- -------- ---------- ---------- --------- ---------- ----------
Income (Loss) before Interest Expense 165,883 9,831 (1,327) 4,378 (15,179) 163,586 128,400
--------- -------- ---------- ---------- --------- ---------- ----------
Interest Expense
Long-Term Debt 69,173 1 69,174 69,353
Interest Imputed on Losses Recorded
at Present Value 32,633 32,633 32,280
Short-Term Debt 2,298 6,156 (8,454) D - -
Other 7,997 7,997 7,118
Allowance for Borrowed Funds Used
During Construction (1,123) (1,123) (1,091)
--------- -------- ---------- ---------- --------- ---------- ----------
Total Interest Expense 110,978 6,157 - - (8,454) 108,681 107,660
--------- -------- ---------- ---------- --------- ---------- ----------
Net Income (Loss) $ 54,905 $ 3,674 $ (1,327) $ 4,378 $ (6,725) $ 54,905 $ 20,740
========= ======== ========== ========== ========= ========== ==========
Average Shares of
Common Stock Outstanding 160,691 160,724
Net Income per Average Share $ 0.34 $ 0.13
========== ==========
</TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
NOTES TO CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATION ADJUSTMENTS
DECEMBER 31, 1995
(dollars in thousands)
12 MONTHS
ENDED
---------
(A) Operating Revenues - Other Utilities:
Valencia coal sales to TEP 109,710
(B) Fuel and Purchased Power:
Coal purchased by TEP from Valencia 109,710
(C) Other Income (Deductions):
TEP's equity in subsidiary earnings 6,725
Inter-company interest income accrued by
TEP and the Utility Subsidiaries 8,454
---------
15,179
=========
(D) Interest Expense - Short-Term Debt:
Inter-company interest expense accrued by
TEP and the Utility Subsidiaries 8,454
TUCSON ELECTRIC POWER COMPANY
FINANCIAL DATA SCHEDULE
EXHIBIT B
DECEMBER 31, 1995
(dollars in thousands)
Total Assets $2,530,930
===========
Total Operating Revenues $ 670,569
===========
Net Income $ 54,905
===========
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.
