Exhibit 99.1
FOR IMMEDIATE RELEASE
|
August 4, 2011 | |
Media Contact: Joe Salkowski, (520) 884-3625, jsalkowski@uns.com
|
Page 1 of 8 | |
Financial Analyst Contact: Chris Norman, (520) 884-3649, cnorman@uns.com |
UNISOURCE ENERGY REPORTS SECOND QUARTER 2011 EARNINGS,
MAINTAINS 2011 EARNINGS GUIDANCE RANGE
MAINTAINS 2011 EARNINGS GUIDANCE RANGE
| • | UniSource Energy’s net income for the second quarter of 2011 was $28.6 million, or $0.71 per share of common stock on a fully-diluted basis, compared with net income of $25.9 million, or $0.66 per diluted share, in the second quarter of 2010. |
| • | Earnings at UniSource Energy’s primary subsidiary, Tucson Electric Power Company (TEP), were $25.1 million in the second quarter of 2011 compared with $27.9 million in the second quarter of 2010. Higher retail margin revenues were offset by higher depreciation and amortization expense and a reduction in margin on long-term wholesale sales. |
| • | Retail kilowatt-hour (kWh) sales at both TEP and UNS Electric increased compared with the second quarter of 2010. |
| • | Financial results for the second quarter were in line with expectations. UniSource Energy is maintaining its estimated 2011 earnings range of $2.60 to $2.90 per diluted share. |
Tucson, Ariz. — UniSource Energy Corporation (NYSE: UNS) today reported second quarter 2011 net
income of $28.6 million, or $0.71 per share of common stock on a fully-diluted basis, compared with
$25.9 million, or $0.66 per diluted share, in the same period last year. For the six months ended
June 30, 2011, UniSource Energy’s net income was $42.0 million, or $1.07 per diluted share of
common stock, compared with net income of $46.0 million, or $1.18 per diluted share, in the first
six months of 2010.
“Our operating and financial results are consistent with our expectations,” said Paul Bonavia,
UniSource Energy’s Chairman, President and CEO. “We continue to focus our efforts on managing our
costs while safely and efficiently operating our utility businesses.”
UniSource Energy’s financial results primarily reflect those of TEP, which reported income of $25.1
million in the second quarter of 2011, compared with net income of $27.9 million in the same period
last year. An increase in TEP’s retail margin revenues was offset by higher depreciation and
amortization expense and reduced margins on long-term wholesale sales.
TEP’s second-quarter retail kWh sales were 1.6 percent higher than last year. Sales to residential
and commercial customers increased 3.7 percent and 1.7 percent, respectively, compared with the
second quarter of 2010. For the first six months of 2011, TEP’s total retail kWh sales were up 1.5
percent compared with the same period last year.
“We are encouraged by the higher sales levels,” Bonavia said. “However cost increases associated
with maintaining our generating units and higher depreciation expense have put pressure on our
year-to-date earnings.” TEP’s current base rates have been in effect since December 2008 and cannot
be increased before January 2013.
Tucson Electric Power
Retail kWh Sales and Revenues
TEP’s retail kWh sales grew by 1.6 percent compared with the second quarter of 2010. Residential,
commercial, and mining sales were up 3.7 percent, 1.7 percent, and 0.3 percent, respectively;
industrial sales were down 0.8 percent.
Higher retail sales volumes led to an increase in retail margin revenues of approximately $3
million, or 1.8 percent, compared with the same period last year. Margin revenues do not include
customer surcharges used to fund renewable energy and energy efficiency programs or revenues
collected to recover the cost of fuel and purchased power.
Long-Term Wholesale and Transmission Revenues
The margin on TEP’s long-term wholesale kWh sales fell by $3 million compared with the second
quarter of 2010. The decrease reflects a change in the terms of TEP’s wholesale sales contract
with Salt River Project (SRP). Effective June 1, 2011, SRP no longer pays TEP a monthly demand
charge of approximately $2 million. Instead, SRP is required to purchase 73,000 MWh per month, or
876,000 MWh annually, at an energy price set at a discount to the Palo Verde Market Index.
Other Operating Expenses
TEP’s base operations and maintenance expense (O&M) increased by $0.5 million in the second quarter
of 2011 over the same period last year. Base O&M excludes costs directly offset by customer
surcharges and third-party reimbursements. In the second quarter of 2011, depreciation expense
increased by $1 million as a result of additional plant-in-service compared with the same period
last year.
Year-to-Date Results
In the first six months of 2011, TEP
reported net income of $29.8 million compared with net income of $38.4 million in the
same period last year. That decrease was due to: a decline in long-term wholesale margin revenues;
a decrease in wholesale transmission revenues; an increase in Base O&M due to planned generating
plant maintenance expense; and higher depreciation expense. Those factors were partially offset
by an increase in retail margin revenues
UNS Gas
UNS Gas reported net income of less than $1 million in the second quarters of 2011 and 2010.
UNS Gas filed a request in April for a base rate increase of $5.6 million, or 4 percent. UNS Gas’
current rates reflect costs from late 2007 and early 2008, and the proposed rate increase would
help recover higher operating and capital costs incurred since that time. The administrative law
judge assigned to the case issued a procedural order that could lead to a final decision by the
Arizona Corporation Commission in the first half of 2012.
UNS Electric
UNS Electric reported net income of $3 million in the second quarter of 2011 compared with $2
million in the same period last year. UNS Electric’s retail kWh sales increased 3.2 percent
compared with the second quarter of 2010 due primarily to higher energy usage by its two mining
customers and a 5.0 percent increase in kWh sales to industrial customers.
Seasonality of Earnings
The net income and results of operations of TEP as well as of UNS Gas and UNS Electric — operating
subsidiaries of UniSource Energy Services (UES) — are seasonal in nature. TEP and UNS Electric
typically record the majority of their net income during the second and third quarters when hot
weather contributes to higher energy consumption. TEP’s retail rates, which include higher charges
for higher levels of energy use, also shift a larger share of the company’s earnings into those
periods.
2
Energy demand from UNS Gas customers typically peaks during the winter. Accordingly, UNS Gas
typically records the majority of its net income during the first and fourth quarters.
Net Income and Earnings Per Share Summary
| 2nd Quarter | YTD June 30, | |||||||||||||||
| Net Income | 2011 | 2010 | 2011 | 2010 | ||||||||||||
| -Millions- | -Millions- | |||||||||||||||
Tucson Electric Power |
$ | 25.1 | $ | 27.9 | $ | 29.8 | $ | 38.4 | ||||||||
UNS Gas |
0.4 | 0.6 | 6.5 | 6.4 | ||||||||||||
UNS Electric |
2.9 | 2.1 | 5.1 | 5.1 | ||||||||||||
Other (1) |
0.2 | (4.7 | ) | 0.6 | (3.9 | ) | ||||||||||
Net Income |
$ | 28.6 | $ | 25.9 | $ | 42.0 | $ | 46.0 | ||||||||
Avg. Basic Shares Outstanding (millions) |
37.0 | 36.3 | 36.9 | 36.2 | ||||||||||||
Avg. Diluted Shares Outstanding (millions) |
41.6 | 40.9 | 41.5 | 40.8 | ||||||||||||
| 2nd Quarter | YTD June 30, | |||||||||||||||
| Earnings Per UniSource Energy Share | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Tucson Electric Power |
$ | 0.68 | $ | 0.77 | $ | 0.81 | $ | 1.06 | ||||||||
UNS Gas |
0.01 | 0.01 | 0.18 | 0.18 | ||||||||||||
UNS Electric |
0.08 | 0.06 | 0.14 | 0.14 | ||||||||||||
Other (1) |
0.00 | (0.13 | ) | 0.01 | (0.11 | ) | ||||||||||
Net Income per Basic Share |
$ | 0.77 | $ | 0.71 | $ | 1.14 | $ | 1.27 | ||||||||
Net Income per Diluted Share |
$ | 0.71 | $ | 0.66 | $ | 1.07 | $ | 1.18 | ||||||||
| (1) | Includes UniSource Energy on a stand-alone basis and results from Millennium Energy Holdings, Inc. (Millennium) and UniSource Energy Development, wholly-owned subsidiaries of UniSource Energy. Millennium’s year-to-date June 30, 2010 results included an after-tax loss of $3 million related to the impairment of an investment. |
UniSource Energy believes the presentation of TEP, UNS Gas and UNS Electric net income or loss
on a per basic UniSource Energy share basis (which are non-GAAP financial measures) provides useful
information to investors by disclosing the results of operations of its business segments on a
basis consistent with UniSource Energy’s reported earnings or losses.
During the first half of 2011, we identified errors related to prior periods in two
categories: (i) deliveries of electricity related to transmission agreements at TEP; and
(ii) the calculation of income tax expense as it relates to Allowance for Equity Funds Used
During Construction (AFUDC). We assessed the materiality of these errors on prior period
financial statements and concluded they were not material to any prior annual or interim
periods, but the cumulative impact could be material to the annual period ending
December 31, 2011 and the interim period ended June 30,
2011, if included in 2011.
As a result, in accordance with Staff Accounting Bulletin 108, we have revised our prior
period financial statements.
3
The income tax adjustment impacted fiscal years 2003 through 2010 for UniSource Energy and fiscal years 2009 and 2010
for TEP. The adjustment for electricity deliveries settled or to be settled in-kind impacted fiscal years 2004 through
2010. We previously recorded the entire income tax adjustment of $3.5 million, or $0.08 per diluted share, in the
first quarter of 2011. UniSource Energy and TEP’s financial statements for the first three months of 2011, as well as
other periods, have been revised to reflect the impact of the income tax adjustment for that particular period. Please
refer to UniSource Energy’s and TEP’s second quarter SEC form 10-Q, which is expected to be filed on or before August 9,
2011, for more information.
Conference Call and Webcast
The company will host a conference call on Friday, August 5 at 9 a.m. EDT to discuss the financial
results and outlook. To participate in the call, please dial in 5 to 10 minutes prior to the start
time.
Dial-in number: (877) 582-0446
Reference code: 87100432
Reference code: 87100432
The conference call can be heard live on UniSource Energy’s website. The webcast can be accessed
at uns.com and will be available for replay for seven days.
Replay number: (855) 859-2056
Reference code: 87100432
Reference code: 87100432
In conjunction with this earnings announcement, UniSource Energy has provided detailed information
on its performance during the second quarter of 2011. These materials have been filed with the
Securities and Exchange Commission and are also available at uns.com.
UniSource Energy is a Tucson, Arizona-based company with consolidated assets of approximately $3.9
billion. UniSource Energy’s primary subsidiaries include Tucson Electric Power, which serves more
than 403,000 customers in southern Arizona, and UniSource Energy Services, provider of natural gas
and electric service for about 237,000 customers in northern and southern Arizona. Visit uns.com
for more information about UniSource Energy and its subsidiaries.
This release contains forward-looking information that involves risks and uncertainties, including
factors that could affect UniSource Energy’s ability to reach the 2011 earnings guidance. These
risks and uncertainties include, but are not limited to: state and federal regulatory and
legislative decisions and actions; regional economic and market conditions, which could affect
customer growth and energy usage; weather variations affecting energy usage; the cost of debt and
equity capital and access to capital markets; the performance of the stock market and changing
interest rate environment, which affect the value of the company’s pension and other postretirement
benefit plan assets and the related contribution requirements and expense; unexpected increases in
O&M expense; resolution of pending litigation matters; changes in accounting standards; changes in
critical accounting estimates; changes to long-term contracts; the cost of fuel and power supplies;
performance of TEP’s generating plants; and other factors listed in UniSource Energy’s Form 10-K
and 10-Q filings with the Securities and Exchange Commission. The preceding factors may cause
future results to differ materially from outcomes currently expected by UniSource Energy.
4
UNISOURCE ENERGY 2011 RESULTS
UniSource Energy Corporation
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share amounts)
(UNAUDITED)
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share amounts)
(UNAUDITED)
| Three Months Ended | ||||||||||||||||
| June 30, | Increase / (Decrease) | |||||||||||||||
| 2011 | 2010 | Amount | Percent | |||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 275,616 | $ | 259,940 | $ | 15,676 | 6.0 | |||||||||
Electric Wholesale Sales |
38,744 | 28,466 | 10,278 | 36.1 | ||||||||||||
Gas Revenue |
25,020 | 24,677 | 343 | 1.4 | ||||||||||||
Other Revenues |
30,293 | 26,030 | 4,263 | 16.4 | ||||||||||||
Total Operating Revenues |
369,673 | 339,113 | 30,560 | 9.0 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
82,563 | 69,304 | 13,259 | 19.1 | ||||||||||||
Purchased Energy |
66,336 | 66,591 | (255 | ) | (0.4 | ) | ||||||||||
Transmission |
3,464 | 2,878 | 586 | 20.4 | ||||||||||||
Increase (Decrease) to Reflect PPFAC/PGA Recovery Treatment |
3,227 | (10,313 | ) | 13,540 | N/M | |||||||||||
Total Fuel and Purchased Energy |
155,590 | 128,460 | 27,130 | 21.1 | ||||||||||||
Other Operations and Maintenance |
90,052 | 87,134 | 2,918 | 3.3 | ||||||||||||
Depreciation |
33,310 | 32,223 | 1,087 | 3.4 | ||||||||||||
Amortization |
7,253 | 7,048 | 205 | 2.9 | ||||||||||||
Taxes Other Than Income Taxes |
12,229 | 11,952 | 277 | 2.3 | ||||||||||||
Total Operating Expenses |
298,434 | 266,817 | 31,617 | 11.8 | ||||||||||||
Operating Income |
71,239 | 72,296 | (1,057 | ) | (1.5 | ) | ||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
826 | 1,953 | (1,127 | ) | (57.7 | ) | ||||||||||
Other Income |
2,646 | 1,158 | 1,488 | N/M | ||||||||||||
Other Expense |
(813 | ) | (6,138 | ) | 5,325 | 86.8 | ||||||||||
Total Other Income (Deductions) |
2,659 | (3,027 | ) | 5,686 | N/M | |||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
18,203 | 15,816 | 2,387 | 15.1 | ||||||||||||
Capital Leases |
9,931 | 11,425 | (1,494 | ) | (13.1 | ) | ||||||||||
Other Interest Expense, Net of Interest Capitalized |
(109 | ) | 186 | (295 | ) | N/M | ||||||||||
Total Interest Expense |
28,025 | 27,427 | 598 | 2.2 | ||||||||||||
Income Before Income Taxes |
45,873 | 41,842 | 4,031 | 9.6 | ||||||||||||
Income Tax Expense |
17,299 | 15,956 | 1,343 | 8.4 | ||||||||||||
Net Income |
$ | 28,574 | $ | 25,886 | $ | 2,688 | 10.4 | |||||||||
Weighted-Average Shares of Common Stock Outstanding (000) |
36,950 | 36,322 | 628 | 1.7 | ||||||||||||
Basic Earnings per Share |
$ | 0.77 | $ | 0.71 | $ | 0.06 | 8.5 | |||||||||
Diluted Earnings per Share |
$ | 0.71 | $ | 0.66 | $ | 0.05 | 7.6 | |||||||||
Dividends Declared per Share |
$ | 0.42 | $ | 0.39 | $ | 0.03 | 7.7 | |||||||||
N/M — Not Meaningful
Reclassifications have been made to prior periods to conform to the current period’s presentation.
5
UNISOURCE ENERGY 2011 RESULTS
UniSource Energy Corporation
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share amounts)
(UNAUDITED)
Condensed Consolidated Statements of Income
(in thousands of dollars, except per share amounts)
(UNAUDITED)
| Six Months Ended | ||||||||||||||||
| June 30, | Increase / (Decrease) | |||||||||||||||
| 2011 | 2010 | Amount | Percent | |||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 492,831 | $ | 464,686 | $ | 28,145 | 6.1 | |||||||||
Electric Wholesale Sales |
79,658 | 65,558 | 14,100 | 21.5 | ||||||||||||
California Power Exchange (CPX) Provision for Wholesale Refunds |
— | (2,970 | ) | 2,970 | N/M | |||||||||||
Gas Revenue |
82,210 | 80,458 | 1,752 | 2.2 | ||||||||||||
Other Revenues |
59,740 | 50,230 | 9,510 | 18.9 | ||||||||||||
Total Operating Revenues |
714,439 | 657,962 | 56,477 | 8.6 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
154,692 | 129,909 | 24,783 | 19.1 | ||||||||||||
Purchased Energy |
144,610 | 149,396 | (4,786 | ) | (3.2 | ) | ||||||||||
Transmission |
5,966 | 5,308 | 658 | 12.4 | ||||||||||||
Decrease to Reflect PPFAC/PGA Recovery Treatment |
(3,008 | ) | (23,058 | ) | 20,050 | 87.0 | ||||||||||
Total Fuel and Purchased Energy |
302,260 | 261,555 | 40,705 | 15.6 | ||||||||||||
Other Operations and Maintenance |
191,107 | 170,042 | 21,065 | 12.4 | ||||||||||||
Depreciation |
66,100 | 63,322 | 2,778 | 4.4 | ||||||||||||
Amortization |
14,631 | 13,620 | 1,011 | 7.4 | ||||||||||||
Taxes Other Than Income Taxes |
24,374 | 24,225 | 149 | 0.6 | ||||||||||||
Total Operating Expenses |
598,472 | 532,764 | 65,708 | 12.3 | ||||||||||||
Operating Income |
115,967 | 125,198 | (9,231 | ) | (7.4 | ) | ||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
1,820 | 3,880 | (2,060 | ) | (53.1 | ) | ||||||||||
Other Income |
5,477 | 7,137 | (1,660 | ) | (23.3 | ) | ||||||||||
Other Expense |
(1,417 | ) | (6,903 | ) | 5,486 | 79.5 | ||||||||||
Total Other Income (Deductions) |
5,880 | 4,114 | 1,766 | 42.9 | ||||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
36,296 | 31,056 | 5,240 | 16.9 | ||||||||||||
Capital Leases |
19,860 | 23,509 | (3,649 | ) | (15.5 | ) | ||||||||||
Other Interest Expense, Net of Interest Capitalized |
(1,030 | ) | 514 | (1,544 | ) | N/M | ||||||||||
Total Interest Expense |
55,126 | 55,079 | 47 | 0.1 | ||||||||||||
Income Before Income Taxes |
66,721 | 74,233 | (7,512 | ) | (10.1 | ) | ||||||||||
Income Tax Expense |
24,731 | 28,201 | (3,470 | ) | (12.3 | ) | ||||||||||
Net Income |
$ | 41,990 | $ | 46,032 | $ | (4,042 | ) | (8.8 | ) | |||||||
Weighted-Average Shares of Common Stock Outstanding (000) |
36,869 | 36,215 | 654 | 1.8 | ||||||||||||
Basic Earnings per Share |
$ | 1.14 | $ | 1.27 | $ | (0.13 | ) | (10.2 | ) | |||||||
Diluted Earnings per Share |
$ | 1.07 | $ | 1.18 | $ | (0.11 | ) | (9.3 | ) | |||||||
Dividends Declared per Share |
$ | 0.84 | $ | 0.78 | $ | 0.06 | 7.7 | |||||||||
N/M — Not Meaningful
Reclassifications have been made to prior periods to conform to the current period’s presentation.
6
TUCSON ELECTRIC POWER COMPANY 2011 RESULTS
TUCSON ELECTRIC POWER COMPANY
Condensed Consolidated Statements of Income
(in thousands of dollars)
(UNAUDITED)
Condensed Consolidated Statements of Income
(in thousands of dollars)
(UNAUDITED)
| Three Months Ended | ||||||||||||||||
| June 30, | Increase / (Decrease) | |||||||||||||||
| 2011 | 2010 | Amount | Percent | |||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 231,652 | $ | 217,555 | $ | 14,097 | 6.5 | |||||||||
Electric Wholesale Sales |
31,759 | 29,276 | 2,483 | 8.5 | ||||||||||||
Other Revenues |
31,822 | 27,864 | 3,958 | 14.2 | ||||||||||||
Total Operating Revenues |
295,233 | 274,695 | 20,538 | 7.5 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
80,831 | 66,753 | 14,078 | 21.1 | ||||||||||||
Purchased Power |
26,445 | 33,337 | (6,892 | ) | (20.7 | ) | ||||||||||
Transmission |
1,232 | 1,049 | 183 | 17.4 | ||||||||||||
Increase (Decrease) to Reflect PPFAC Recovery Treatment |
2,112 | (7,601 | ) | 9,713 | N/M | |||||||||||
Total Fuel and Purchased Energy |
110,620 | 93,538 | 17,082 | 18.3 | ||||||||||||
Other Operations and Maintenance |
78,094 | 74,613 | 3,481 | 4.7 | ||||||||||||
Depreciation |
25,850 | 24,893 | 957 | 3.8 | ||||||||||||
Amortization |
8,180 | 8,024 | 156 | 1.9 | ||||||||||||
Taxes Other Than Income Taxes |
10,043 | 9,730 | 313 | 3.2 | ||||||||||||
Total Operating Expenses |
232,787 | 210,798 | 21,989 | 10.4 | ||||||||||||
Operating Income |
62,446 | 63,897 | (1,451 | ) | (2.3 | ) | ||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
582 | 1,696 | (1,114 | ) | (65.7 | ) | ||||||||||
Other Income |
1,727 | 1,115 | 612 | 54.9 | ||||||||||||
Other Expense |
(2,498 | ) | (2,397 | ) | (101 | ) | (4.2 | ) | ||||||||
Total Other Income (Deductions) |
(189 | ) | 414 | (603 | ) | N/M | ||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
12,157 | 10,154 | 2,003 | 19.7 | ||||||||||||
Capital Leases |
9,930 | 11,423 | (1,493 | ) | (13.1 | ) | ||||||||||
Other Interest Expense, Net of Interest Capitalized |
(91 | ) | 68 | (159 | ) | N/M | ||||||||||
Total Interest Expense |
21,996 | 21,645 | 351 | 1.6 | ||||||||||||
Income Before Income Taxes |
40,261 | 42,666 | (2,405 | ) | (5.6 | ) | ||||||||||
Income Tax Expense |
15,133 | 14,728 | 405 | 2.7 | ||||||||||||
Net Income |
$ | 25,128 | $ | 27,938 | $ | (2,810 | ) | (10.1 | ) | |||||||
| Three Months Ended | ||||||||||||||||
| Tucson Electric Power | June 30, | Increase / (Decrease) | ||||||||||||||
| Electric MWh Sales: | 2011 | 2010 | Amount | Percent | ||||||||||||
Retail Sales |
2,331,563 | 2,294,004 | 37,559 | 1.6 | ||||||||||||
Long-Term Wholesale Sales |
208,046 | 215,936 | (7,890 | ) | (3.7 | ) | ||||||||||
N/M — Not Meaningful
Reclassifications have been made to prior periods to conform to the current period’s presentation.
7
TUCSON ELECTRIC POWER COMPANY 2011 RESULTS
TUCSON ELECTRIC POWER COMPANY
Condensed Consolidated Statements of Income
(in thousands of dollars)
(UNAUDITED)
Condensed Consolidated Statements of Income
(in thousands of dollars)
(UNAUDITED)
| Six Months Ended | ||||||||||||||||
| June 30, | Increase / (Decrease) | |||||||||||||||
| 2011 | 2010 | Amount | Percent | |||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 405,354 | $ | 384,974 | $ | 20,380 | 5.3 | |||||||||
Electric Wholesale Sales |
67,015 | 70,265 | (3,250 | ) | (4.6 | ) | ||||||||||
California Power Exchange (CPX) Provision for Wholesale Refunds |
— | (2,970 | ) | 2,970 | N/M | |||||||||||
Other Revenues |
62,452 | 53,507 | 8,945 | 16.7 | ||||||||||||
Total Operating Revenues |
534,821 | 505,776 | 29,045 | 5.7 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
152,138 | 125,260 | 26,878 | 21.5 | ||||||||||||
Purchased Power |
43,680 | 57,992 | (14,312 | ) | (24.7 | ) | ||||||||||
Transmission |
1,927 | 1,845 | 82 | 4.4 | ||||||||||||
Decrease to Reflect PPFAC Recovery Treatment |
(7,671 | ) | (10,833 | ) | 3,162 | 29.2 | ||||||||||
Total Fuel and Purchased Energy |
190,074 | 174,264 | 15,810 | 9.1 | ||||||||||||
Other Operations and Maintenance |
166,587 | 144,977 | 21,610 | 14.9 | ||||||||||||
Depreciation |
51,583 | 48,953 | 2,630 | 5.4 | ||||||||||||
Amortization |
16,484 | 15,810 | 674 | 4.3 | ||||||||||||
Taxes Other Than Income Taxes |
19,947 | 19,681 | 266 | 1.4 | ||||||||||||
Total Operating Expenses |
444,675 | 403,685 | 40,990 | 10.2 | ||||||||||||
Operating Income |
90,146 | 102,091 | (11,945 | ) | (11.7 | ) | ||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
1,317 | 3,386 | (2,069 | ) | (61.1 | ) | ||||||||||
Other Income |
4,367 | 2,333 | 2,034 | 87.2 | ||||||||||||
Other Expense |
(4,996 | ) | (4,883 | ) | (113 | ) | (2.3 | ) | ||||||||
Total Other Income (Deductions) |
688 | 836 | (148 | ) | (17.7 | ) | ||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
24,412 | 20,032 | 4,380 | 21.9 | ||||||||||||
Capital Leases |
19,859 | 23,504 | (3,645 | ) | (15.5 | ) | ||||||||||
Other Interest Expense, Net of Interest Capitalized |
(837 | ) | 42 | (879 | ) | N/M | ||||||||||
Total Interest Expense |
43,434 | 43,578 | (144 | ) | (0.3 | ) | ||||||||||
Income Before Income Taxes |
47,400 | 59,349 | (11,949 | ) | (20.1 | ) | ||||||||||
Income Tax Expense |
17,624 | 20,953 | (3,329 | ) | (15.9 | ) | ||||||||||
Net Income |
$ | 29,776 | $ | 38,396 | $ | (8,620 | ) | (22.5 | ) | |||||||
| Six Months Ended | ||||||||||||||||
| Tucson Electric Power | June 30, | Increase / (Decrease) | ||||||||||||||
| Electric MWh Sales: | 2011 | 2010 | Amount | Percent | ||||||||||||
Retail Sales |
4,286,300 | 4,222,816 | 63,484 | 1.5 | ||||||||||||
Long-Term Wholesale Sales |
438,384 | 503,742 | (65,358 | ) | (13.0 | ) | ||||||||||
N/M — Not Meaningful
Reclassifications have been made to prior periods to conform to the current period’s presentation.
8
