File No. 69-293
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, fifty percent (50%) or more of the "voting securities"
of the following subsidiaries: Biomasa Generacion, S. de R.L. de C.V.,
Escavada Company, Global Solar Energy, L.L.C., Nations-Colorado Energy
Corporation, Nations Energy Corporation, Nations Energy Holland Holding, B.V.,
Nations International, Ltd., Nations Kladno, B.V., Sabino Investing Inc.,
San Carlos Resources Inc., Santa Cruz Resources Inc., Santa Rosa
Resources Inc., Sierrita Resources Inc., Sofar 2 Inc., Suministradora
de Materials Organicos, S.R.L. de C.V., SWPP International, Ltd.,
SWPP Investment Company, TEP Solar Energy Corporation, Tucson Resources Inc.,
Tucsonel Inc., 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 ten percent (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 ninety-one percent (91%) beneficially owned by Nations
Energy Corporation, 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 or foreign utility company
application for any such projects that are constructed in Honduras.
(C) 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.
(D) Global Solar Energy, L.L.C., incorporated under the laws of
the State of Arizona, is fifty percent (50%) beneficially owned by TEP Solar
Energy Company, and is organized for the purpose of engaging in the manufacture
and sale of thin film photovoltaic modules for distributed energy applications.
(E) 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.
(F) Nations Energy Corporation ("Nations") (formerly known as
Escalante Resources Inc.), incorporated in the State of Arizona, is a wholly-
owned subsidiary of the Company organized to develop and invest in independent
power projects, including QFs, EWGs and FUCOs, located in the United States
and abroad.
(G) Nations Energy Holland Holding, B.V., incorporated under the laws
of the Netherlands, is a wholly-owned subsidiary of Nations and was organized
for the purpose of investing in international independent power projects.
(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 independent power projects.
(I) Nations Kladno, B.V., incorporated under the laws of the
Netherlands, is a wholly-owned subsidiary of Nations Energy Holland
Holding, B.V. and was organized for the purpose of holding an interest in an
independent power project in the Czech Republic.
(J) Sabino Investing Inc., incorporated in the State of Delaware, is
a wholly-owned subsidiary of TRI and holds certain real estate assets.
(K) 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.
(L) 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.
(M) 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. Santa Rosa
Resources Inc. is presently in the process of being dissolved.
(N) 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.
(O) Sofar 2 Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of Sabino Investing Inc. and is presently in the process of
being dissolved.
(P) Suministradora de Materials Organicos, S.R.L. de C.V.,
incorporated under the laws of Honduras, is fifty percent (50%) beneficially
owned by Nations International Ltd. and was organized for administering fuel
supply to biomass projects in Honduras.
(Q) SWPP International Ltd., incorporated under the laws of the
Cayman Islands, is a wholly-owned subsidiary of SWPP Investment Company
organized to invest in Mexican joint venture(s) related to the manufacture and
sale of concrete utility poles.
(R) SWPP Investment Company, incorporated in the State of Arizona,
is a wholly-owned subsidiary of the Company and was organized to manufacture
and sell concrete utility products.
(S) TEP Solar Energy Corporation, incorporated in the state of
Arizona, is a wholly-owned subsidiary of the Company and was organized to
develop certain distributed energy projects, as well as renewable energy
sources.
(T) Tucson Resources Inc. ("TRI"), incorporated under the laws of the
State of Delaware, is a wholly-owned subsidiary of the Company and was
organized primarily to invest in financial assets.
(U) Tucsonel Inc., incorporated in the State of Arizona, is a wholly-
owned subsidiary of the Company and is presently inactive.
(V) Valencia Energy Company and Gallo Wash Development Company,
wholly-owned subsidiaries of the Company, were merged into the Company using
historical book values on May 31, 1996. Effective with the merger, the Company
assumed all of the assets and liabilities of Valencia; the responsibilities for
the coal procurement, coal transportation and coal handling services at
Springerville Generating Station; and the responsibilities as the lessee of the
Springerville Coal Handling Facilities Leases.
(W) Picacho-Warner Center Inc., incorporated in the State of Arizona,
is a wholly-owned subsidiary of Santa Cruz Resources, Inc. and is presently in
the process of being dissolved.
(X) 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.
(Y) 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.
(Z) 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 and is presently inactive.
(AA) 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.
(BB) 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, 1996, 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 9,408
circuit-miles of lower voltage primary lines. The underground electric
distribution system is comprised of 4,771 cable miles. Approximately twenty-
four percent (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 169 substations with a total
installed transformer capacity of 5,258,605 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 50.0 158
San Juan Station #2 Farmington, NM 312 PNM 50.0 156
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 7.0 55
Four Corners
Station #5 Farmington, NM 784 APS 7.0 55
Irvington Station Tucson, AZ 422 TEP 100.0 422
Internal Combustion
Turbines Tucson, AZ 218 TEP 100.0 218
Springerville
Generating
Station #1 Springerville, AZ 360 TEP 100.0 360
Springerville
Generating
Station #2 Springerville, AZ 360 TEP 100.0 360
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 fifty percent (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 are leased back by the Company. 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 fifty percent (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 fifty percent (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 10,657,108,000 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 2,235,729,000 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 841,269,000 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 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 25th day of February, 1997.
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, 1996
(in thousands)
<CAPTION>
TUCSON RESTATED
ELECTRIC ENERGY INVESTMENT CONSOL. 1996 1995
POWER CO. SUBS SUBS * ADJUST. CONSOL. CONSOL.**
----------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Utility Plant
Plant in Service $2,129,205 $ $ $ $2,129,205 $2,095,679
Utility Plant Under Capital Leases 893,064 893,064 893,064
Construction Work in Progress 74,210 74,210 50,898
----------- ---------- ---------- ----------- ----------- -----------
Total Utility Plant 3,096,479 3,096,479 3,039,641
Less Accumulated Depreciation and
Amortization (922,947) (922,947) (859,227)
Less Accumulated Amortization of
Capital Leases (56,240) (56,240) (40,113)
Less Springerville Unit 1 Allowance (163,388) (163,388) (162,175)
----------- ---------- ---------- ----------- ----------- -----------
Total Utility Plant - Net 1,953,904 1,953,904 1,978,126
----------- ---------- ---------- ----------- ----------- -----------
Investments and Other Property 63,562 21,964 12,181 (28,418) A 69,289 52,116
----------- ---------- ---------- ----------- ----------- -----------
Current Assets
Cash and Cash Equivalents 120,935 2,538 6,818 130,291 85,094
Note Receivable from Subsidiary 3,600 (3,600) B - -
Accounts Receivable 67,439 18 5,140 (6,692) C 65,905 61,717
Materials and Fuel 30,356 30,356 42,168
Deferred Income Taxes - Current 10,223 10,223 18,250
Other 13,574 452 14,026 7,565
----------- ---------- ---------- ----------- ----------- -----------
Total Current Assets 246,127 3,008 11,958 (10,292) 250,801 214,794
----------- ---------- ---------- ----------- ----------- -----------
Deferred Debits - Regulatory Assets
Income Taxes Recoverable Through
Future Rates 173,731 173,731 168,488
Deferred Common Facility Costs 60,762 60,762 63,303
Deferred Springerville Unit 2 Costs 21,260 21,260 42,039
Deferred Lease Expense 15,067 15,067 19,808
Other Deferred Regulatory Assets 8,004 8,004 8,576
Deferred Debits - Other 12,237 3,486 15,723 16,211
----------- ---------- ---------- ----------- ----------- -----------
Total Deferred Debits 291,061 3,486 294,547 318,425
----------- ---------- ---------- ----------- ----------- -----------
Total Assets $2,554,654 $ 24,972 $ 27,625 $ (38,710) $2,568,541 $2,563,461
=========== ========== ========== =========== =========== ===========
* Investment Subs include TRI, SRI and Escavada.
** Restated to reflect certain reclassifications of assets and liabilities to conform to the December 31, 1996 presentation.
</TABLE>
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1996
(in thousands)
<CAPTION>
TUCSON RESTATED
ELECTRIC ENERGY INVESTMENT CONSOL. 1996 1995
POWER CO. SUBS SUBS ADJUST. CONSOL. CONSOL.**
----------- --------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITALIZATION AND OTHER LIABILITIES
Capitalization
Common Stock $ 645,243 $ 1 $ 3 $ (4) $ 645,243 $ 645,295
Premium on Capital Stock 27,494 276,731 (304,225) - -
Capital Stock Expense (6,357) (6,357) (6,357)
Accumulated Deficit (513,149) (3,624) (272,187) 283,362 (505,598) (626,450)
----------- --------- ---------- ----------- ----------- -----------
Common Stock Equity 125,737 23,871 4,547 (20,867) D 133,288 12,488
Capital Lease Obligations 895,867 895,867 897,958
Long-Term Debt 1,223,025 1,223,025 1,207,460
----------- --------- ---------- ----------- ----------- -----------
Total Capitalization 2,244,629 23,871 4,547 (20,867) 2,252,180 2,117,906
----------- --------- ---------- ----------- ----------- -----------
Current Liabilities
Note Payable to Parent 3,600 (3,600) E - -
Short-Term Debt 3,567 3,567 12,039
Current Obligations Under Capital Leases 10,383 10,383 33,389
Current Maturities of Long-Term Debt 1,635 1,635 12,075
Accounts Payable 33,750 527 1,221 (6,692) F 28,806 27,162
Interest Accrued 57,404 57,404 57,389
Taxes Accrued 23,972 43 (8) 24,007 15,696
Other 14,967 512 135 15,614 19,685
----------- --------- ---------- ----------- ----------- -----------
Total Current Liabilities 142,111 1,082 8,515 (10,292) 141,416 177,435
----------- --------- ---------- ----------- ----------- -----------
Deferred Credits and Other Liabilities
Deferred Income Taxes - Noncurrent 95,836 586 G 96,422 178,513
Accumulated Deferred Investment Tax Credits
Regulatory Liability 15,188 15,188 19,603
MSR Option Gain Regulatory Liability 7,853 7,853 25,610
Other Regulatory Liabilities 17,596 17,596 10,343
Other 31,441 19 14,563 (8,137) H 37,886 34,051
----------- --------- ---------- ----------- ----------- -----------
Total Deferred Credits and Other Liabilities 167,914 19 14,563 (7,551) 174,945 268,120
----------- --------- ---------- ----------- ----------- -----------
Total Capitalization and Other Liabilities $2,554,654 $ 24,972 $ 27,625 $ (38,710) $2,568,541 $2,563,461
=========== ========= ========== =========== =========== ===========
** Restated to reflect certain reclassifications of assets and liabilities to conform to the December 31, 1996 presentation.
</TABLE>
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
NOTES TO CONSOLIDATED BALANCE SHEETS
CONSOLIDATION ADJUSTMENTS
DECEMBER 31, 1996
(in thousands)
<CAPTION>
ASSETS CAPITALIZATION AND OTHER LIABILITIES
------ ------------------------------------
<S> <C> <S> <C>
(A) Investments and Other Property: (D) Common Stock Equity:
TEP's investment in subsidiaries $ 28,418 TEP's equity in subsidiaries $ 28,418
--------- TEP's accrual of late payment fees
to the Investment Subs net of tax
(B) Note Receivable from Subsidiary - TEP: benefit (7,551)
Escavada 3,600 ---------
--------- 20,867
---------
(C) Accounts Receivable: (E) Note Payable to Parent - Escavada 3,600
Receivables from affiliates ---------
- TEP 1,563
- Escavada 717 (F) Accounts Payable:
- Energy Subs 18 Payables to affiliates 6,692
- Investment Subs 4,394 ---------
---------
6,692 (G) Deferred Income Taxes - Noncurrent:
--------- Deferred tax related to the accrual
of late payment fees (586)
---------
(H) Other Deferred Credits:
Late payment fees recorded as
deferred income
- TRI 6,506
- SRI 1,631
---------
8,137
---------
Total Adjustments $ 38,710 Total Adjustments $ 38,710
========= =========
</TABLE>
<TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
CONSOLIDATED STATEMENTS OF INCOME
TWELVE MONTHS ENDED DECEMBER 31, 1996
(in thousands except for per share amounts)
<CAPTION>
TUCSON
ELECTRIC UTILITY ENERGY INVESTMENT CONSOL. 1996 1995
POWER CO. SUBS SUBS SUBS ADJUST. CONSOL. CONSOL.
--------- --------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
UTILITY OPERATIONS
Operating Revenues
Retail Customers $611,564 $ $ $ $ $ 611,564 $ 574,925
Amortization of MSR Option Gain
Regulatory Liability 20,053 20,053 20,053
Sales for Resale 84,256 55,971 (55,971) A 84,256 75,591
--------- --------- ---------- ---------- --------- ---------- ----------
Total Operating Revenues 715,873 55,971 - - (55,971) 715,873 670,569
--------- --------- ---------- ---------- --------- ---------- ----------
Operating Expenses
Fuel and Purchased Power 219,203 45,576 (55,971) B 208,808 162,117
Deferred Fuel and Purchased Power - 5,872
Capital Lease Expense 99,955 4,132 104,087 105,368
Amortization of Springerville
Unit 1 Allowance (29,090) (29,090) (28,432)
Other Operations and Maintenance
and Repairs 132,558 1,446 134,004 141,684
Depreciation and Amortization 97,803 443 98,246 93,136
Taxes Other Than Income Taxes 59,978 1,924 61,902 58,733
Employee Severance Plan Expense - Net 10,555 10,555 -
Income Taxes 9,832 (37) 9,795 8,920
--------- --------- ---------- ---------- --------- ---------- ----------
Total Operating Expenses 600,794 53,484 - - (55,971) 598,307 547,398
--------- --------- ---------- ---------- --------- ---------- ----------
Utility Operating Income 115,079 2,487 - - - 117,566 123,171
--------- --------- ---------- ---------- --------- ---------- ----------
Other Income (Deductions)
Income Taxes 92,262 (246) (66) 91,950 29,356
Other Income (Deductions) 16,607 1,283 (2,218) 9,931 (11,594) C 14,009 12,175
--------- --------- ---------- ---------- --------- ---------- ----------
Total Other Income (Deductions) 108,869 1,037 (2,284) 9,931 (11,594) 105,959 41,531
--------- --------- ---------- ---------- --------- ---------- ----------
Income (Loss) before Interest Expense 223,948 3,524 (2,284) 9,931 (11,594) 223,525 164,702
--------- --------- ---------- ---------- --------- ---------- ----------
Interest Expense
Long-Term Debt - Net 59,647 59,647 69,174
Interest Imputed on Losses Recorded
at Present Value 32,599 32,599 32,633
Short-Term Debt 756 2,470 14 (3,240) D - -
Other Interest Expense 11,388 323 10 11,721 9,113
Allowance for Borrowed Funds Used
During Construction (1,294) (1,294) (1,123)
--------- --------- ---------- ---------- --------- ---------- ----------
Total Interest Expense 103,096 2,793 14 10 (3,240) 102,673 109,797
--------- --------- ---------- ---------- --------- ---------- ----------
Net Income (Loss) $120,852 $ 731 $ (2,298) $ 9,921 $ (8,354) $ 120,852 $ 54,905
========= ========= ========== ========== ========= ========== ==========
Average Shares of
Common Stock Outstanding 32,134 32,138
Net Income per Average Share $ 3.76 $ 1.71
========== ==========
Note: For comparability, Operating Expenses for all periods presented have been
reclassed to reflect the merger of Valencia Energy into TEP.
</TABLE>
TUCSON ELECTRIC POWER COMPANY EXHIBIT A
NOTES TO CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATION ADJUSTMENTS
DECEMBER 31, 1996
(dollars in thousands)
12 MONTHS
ENDED
---------
(A) Operating Revenues - Sales for Resale:
Valencia coal sales to TEP 55,971
(B) Fuel and Purchased Power:
Coal purchased by TEP from Valencia 55,971
(C) Other Income (Deductions):
TEP's equity in subsidiary earnings 8,354
Inter-company interest income accrued by
TEP and Subsidiaries 3,240
---------
11,594
=========
(D) Interest Expense - Short-Term Debt:
Inter-company interest expense accrued by
TEP and Subsidiaries 3,240
TUCSON ELECTRIC POWER COMPANY
FINANCIAL DATA SCHEDULE
EXHIBIT B
DECEMBER 31, 1996
(in thousands)
Total Assets $2,568,541
===========
Total Operating Revenues $ 715,873
===========
Net Income $ 120,852
===========
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.
