UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): January 4, 1999
Commission Registrant; State of Incorporation; IRS Employer
File Number Address; and Telephone Number Identification Number
- ----------- ----------------------------- ---------------------
1-13739 UNISOURCE ENERGY CORPORATION 86-0786732
(An Arizona Corporation)
220 West Sixth Street
Tucson, AZ 85701
(520) 571-4000
1-5924 TUCSON ELECTRIC POWER COMPANY 86-0062700
(An Arizona Corporation)
220 West Sixth Street
Tucson, AZ 85701
(520) 571-4000
<PAGE>
Item 5. Other Events
------------
As previously reported, on December 10, 1998, the Arizona
Corporation Commission (ACC) approved an order to put into effect
the Retail Electric Competition Rules (Rules) on January 1, 1999.
On January 4, 1999, Tony West (Republican) took office as
ACC Commissioner, replacing Renz Jennings (Democrat), whose term
had expired.
On January 5, 1999, the ACC approved an order which:
-- granted Motions for Reconsideration of the Rules,
-- granted the Affected Utilities (TEP and other utilities in
Arizona regulated by the ACC) a waiver from compliance with the
Rules, and
-- granted a stay of the Rules.
The order stated that the ACC had "failed to adequately address
the issues necessary to begin implementing competition in the
electric industry in a timely or consistent manner." The order
also directed the ACC Hearing Division to establish a Procedural
Schedule for dealing with unresolved issues. These matters
include, among others:
-- establishing a competitive market structure between other
jurisdictions and the Affected Utilities;
-- determination of the quantification and recovery of stranded
costs;
-- approval of unbundled tariffs, which provide separate rates
for generation, transmission, distribution, metering, meter
reading, billing and collection, and ancillary services;
-- questions of federal and state jurisdiction on transmission
issues critical to system reliability; and
-- pricing and cost recovery for must run generation.
On January 6, 1999, the ACC Hearing Division issued a
Procedural Order requesting all interested parties and Affected
Utilities to file the following by January 20, 1999:
-- a list of issues that still need to be resolved in electric
industry restructuring,
-- the proposed order in which the issues should be resolved,
-- the proposed method for resolution and the time frames
necessary, and
-- any comments on a January 4, 1999 joint proposal by the
Arizona Attorney General's Office and the Residential Utility
Consumer Office which suggested a procedural schedule for
resolution of the remaining issues in electric industry
restructuring.
A Procedural Conference is scheduled to be held on January 22,
1999 to discuss the above issues. The Company anticipates that
shortly thereafter the Hearing Division will issue a Procedural
Schedule to set the timeframe for hearings on these issues.
The Company cannot predict the outcome of these matters.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, each registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized. The
signature for each undersigned company shall be deemed to relate
only to matters having reference to such company or its
subsidiary.
UNISOURCE ENERGY CORPORATION
----------------------------
(Registrant)
Date: January 8, 1999 Ira R. Adler
----------------------------
Ira R. Adler
Executive Vice President and
Principal Financial Officer
TUCSON ELECTRIC POWER COMPANY
-----------------------------
(Registrant)
Date: January 8, 1999 Ira R. Adler
-----------------------------
Ira R. Adler
Executive Vice President and
Principal Financial Officer
