Exhibit 99.2

UniSource Energy Corporation
3^rd Quarter 2010 Supplemental Earnings Information
As of October 27, 2010

TABLE OF CONTENTS
Safe Harbor and Non-GAAP Measures			1
Variance Explanation — 3rd Quarter			2
Variance Explanation — Year-to-Date			3
Operations & Maintenance Components			4
TEP Operating Statistics			5
TEP Margin Revenues			6
UNS Electric Operating Statistics			7
UNS Gas Operating Statistics			8
Basic & Diluted Shares Outstanding			9

SAFE HARBOR AND NON-GAAP MEASURES

This document contains forward-looking information that involves risks and uncertainties, that 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; the ongoing restructuring of the electric industry; 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 historical results or from outcomes currently expected by UniSource Energy. The forecast assumptions and estimates below are not intended to be a full list of factors which could cause UniSource Energy’s future results to differ from current expectations. Please refer to UniSource Energy’s SEC filings for more information regarding risks and other uncertainties that could cause current expectations to differ from future results.

The Company’s press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.

Non-GAAP financial measures utilized by the Company include presentations of revenues, operating expenses, operating income and earnings (loss) per share. The Company uses these non-GAAP measures to evaluate the operations of the Company. Certain non-GAAP financial measures utilized by the Company exclude: the impact of non-recurring items: the effect of accounting changes or adjustments; expenses that are reimbursed by third parties; and other items. The Company’s management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings or cash flow capacity of the Company’s operations. Management also believes that the presentation of the non-GAAP financial measures is largely consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures with respect to prior periods.

UNISOURCE ENERGY 3RD QUARTER EARNINGS VARIANCE EXPLANATION

		3rd Quarter 2009 UniSource Energy Net Income																$	57.6
		3rd Quarter								Change
TEP		2010				2009				Pre-Tax				After Tax
		-millions of dollars-
Retail Margin Revenues		$	188.2			$	189.1			$	(0.9	)		$	(0.5	)
L-T Wholesale Margin Revenues			5.6				6.0				(0.4	)			(0.2	)
Transmission Revenues			4.4				4.1				0.3				0.2
TEP Utility Gross Margin (Non-GAAP)			198.1				199.2				(1.0	)			(0.6	)
Base O&M			52.6				52.6				0.0				0.0
Depreciation			25.2				28.1				(2.9	)			(1.7	)
Amortization			8.2				9.6				(1.5	)			(0.9	)
Operating synergies related to Springerville Units 3&4			5.6				2.9				2.7				1.6
Total Other Income			2.9				3.4				(0.4	)			(0.3	)
Total Interest Expense			20.2				21.5				(1.3	)			(0.8	)
Other Line Item Changes			(3.4	)			(3.7	)			0.3				0.2
Income Tax Expense (Benefit)			38.1				34.6				3.5				3.5
TEP Net Income (GAAP)		$	59.0			$	55.3			NM				$	3.7
		Change in TEP Net Income																	3.7
Other Business Segments — After Tax Amounts
UNS Electric Net Income		$	3.3			$	3.6			NM				$	(0.3	)
UNS Gas Net Income			(1.0	)			(1.3	)		NM					0.3
After-Tax (Loss) Income from MEH, UED and Consolidating Adj.			(6.3	)			0.2			NM					(6.5	)
Total Income (Loss) from Other Business Segments and Consolidating Adjustments		$	(4.0	)		$	2.5			NM				$	(6.5	)
		Change in UNS Electric, UNS Gas and Other																	(6.5	)
		3rd Quarter 2010 UniSource Energy Net Income																$	54.9

2 — Q3 Variance Explanation

UNISOURCE ENERGY YEAR-TO-DATE EARNINGS VARIANCE EXPLANATION

		YTD September 30, 2009 UniSource Energy Net Income																$	93.8
		YTD September 30,								Change
TEP		2010				2009				Pre-Tax				After Tax
		-millions of dollars-
Retail Margin Revenues		$	433.2			$	438.6			$	(5.4	)		$	(3.3	)
L-T Wholesale Margin Revenues			20.2				19.0				1.2				0.7
Transmission Revenues			15.6				12.4				3.1				1.9
TEP Utility Gross Margin (Non-GAAP)			469.0				470.1				(1.1	)			(0.6	)
Loss related to the settlement of a dispute over tranactions with the California Power Exchange (CPX)			(3.0	)			0.0				(3.0	)			(1.8	)
Base O&M			163.3				173.6				(10.3	)			(6.2	)
Depreciation (1)			74.1				81.6				(7.5	)			(4.5	)
Amortization (1)			24.0				28.9				(5.0	)			(3.0	)
Operating synergies related to Springerville Units 3&4			18.1				8.8				9.2				5.5
Total Other Income (1)			7.0				14.2				(7.2	)			(4.3	)
Total Interest Expense (1)			63.7				65.7				(2.0	)			(1.2	)
Other Line Item Changes			(9.5	)			(11.6	)			2.1				1.3
Income Tax Expense (Benefit)			59.5				50.5				9.0				9.0
TEP Net Income (GAAP)		$	97.0			$	81.2			NM				$	15.8
		Change in TEP Net Income																	15.8
Other Business Segments — After Tax Amounts
UNS Electric Net Income (2)		$	8.2			$	5.9			NM				$	2.3
UNS Gas Net Income			5.3				3.6			NM					1.7
After-Tax (Loss) Income from MEH, UED and Consolidating Adj.			(10.1	)			3.1			NM					(13.2	)
Total Other Income and Consolidating Adjustments		$	3.4			$	12.6			NM				$	(9.2	)
		Change in UNS Electric, UNS Gas and Other																	(9.2	)
		YTD September 30, 2010 UniSource Energy Net Income																$	100.4

3 — YTD Variance Explanation

UNISOURCE ENERGY AND TEP O&M

UniSource Energy		3rd Quarter								YTD September 30,
O&M Components		2010				2009				2010				2009
		-millions of dollars-								-millions of dollars-
TEP Base O&M (Non-GAAP)		$	52.6			$	52.6			$	163.3			$	173.6
UNS Gas Base O&M			6.1				6.1				18.4				18.2
UNS Electric Base O&M			5.2				4.8				15.3				14.2
Consolidating Adjustments & Other			(2.2	)			(2.0	)			(6.6	)			(5.4	)
UniSource Energy Base O&M (Non-GAAP)		$	61.7			$	61.5			$	190.4			$	200.6
Reimbursed O&M Related to Springerville Units 3 and 4			14.0				11.8				40.5				29.6
O&M Related to Customer-funded Renewable Energy and DSM Programs			13.2				6.2				28.1				13.2
UniSource Energy O&M (GAAP)		$	88.9			$	79.5			$	259.0			$	243.4

TEP		3rd Quarter								YTD September 30,
O&M Components		2010				2009				2010				2009
		-millions of dollars-								-millions of dollars-
Wages, A&G, Other		$	37.8			$	35.3			$	109.9			$	109.0
Generating Plant Maintenance Expense			10.7				12.9				42.4				51.1
Pension and Postretirement Benefits Expense			4.1				4.4				11.0				13.5
TEP Base O&M (Non-GAAP)		$	52.6			$	52.6			$	163.3			$	173.6
Reimbursed O&M Related to Springerville Units 3 and 4			14.0				11.8				40.5				29.6
O&M Related to Customer-funded Renewable Energy and DSM Programs			9.7				4.8				20.6				9.9
TEP O&M (GAAP)		$	76.3			$	69.2			$	224.4			$	213.1

4 — O&M

TEP — OPERATING STATISTICS

		Three Months Ended September 30,																Nine Months Ended September 30,
		2010				2009				Incr (Decr)				% Change				2010				2009				Incr (Decr)				% Change
AVG. ELECTRIC CUSTOMERS
Residential			365,583				364,461				1,122				0.3	%			365,632				364,724				908				0.2	%
Commercial			35,880				35,747				133				0.4	%			35,852				35,631				221				0.6	%
Industrial			631				627				4				0.6	%			632				630				2				0.3	%
Mining			3				3				—				0.0	%			2				2				—				0.0	%
Other			62				61				1				1.6	%			62				61				1				1.6	%
Total			402,159				400,899				1,260				0.3	%			402,180				401,048				1,132				0.3	%
RETAIL SALES — MWH
Residential			1,444,461				1,453,143				(8,682	)			-0.6	%			3,109,007				3,129,160				(20,153	)			-0.6	%
Commercial			612,303				618,955				(6,652	)			-1.1	%			1,515,901				1,544,514				(28,613	)			-1.9	%
Industrial			629,849				627,940				1,909				0.3	%			1,639,500				1,666,778				(27,278	)			-1.6	%
Mining			274,420				269,172				5,248				1.9	%			806,571				792,791				13,780				1.7	%
Other			65,199				66,744				(1,545	)			-2.3	%			178,068				188,359				(10,291	)			-5.5	%
Total			3,026,232				3,035,954				(9,722	)			-0.3	%			7,249,047				7,321,602				(72,555	)			-1.0	%
RETAIL USAGE — KWH/CUSTOMER
Residential			3,951				3,987				(36	)			-0.9	%			8,503				8,580				(76	)			-0.9	%
Commercial			17,065				17,315				(250	)			-1.4	%			42,282				43,347				(1,065	)			-2.5	%
Industrial			998,176				1,001,499				(3,323	)			-0.3	%			2,594,146				2,645,679				(51,534	)			-1.9	%
Mining			91,473,333				89,724,000				1,749,333				1.9	%			403,285,500				396,395,500				6,890,000				1.7	%
Other			1,051,597				1,094,164				(42,567	)			-3.9	%			2,872,065				3,087,852				(215,788	)			-7.0	%
Total			7,525				7,573				(48	)			-0.6	%			18,024				18,256				(232	)			-1.3	%
WEATHER — COOLING DEGREE DAYS
Actual			1,096				1,155				(59	)			-5.1	%			1,491				1,571				(80	)			-5.1	%
10-Year Average			978				970												1,433				1,434
% Change Actual vs. 10-Year Avg.			12.1	%			19.1	%											4.0	%			9.6	%
ENERGY MARKET INDICATORS
Avg. Wholesale Power Prices Palo Verde Index — $/MWh
On Peak		$	38.65			$	35.22			$	3.43				9.7	%		$	38.88			$	33.14			$	5.74				17.3	%
Off Peak		$	26.67			$	21.95			$	4.72				21.5	%		$	28.36			$	22.30			$	6.06				27.2	%
Avg. Natural Gas Prices Permian Index — $/MMBtu		$	3.94			$	2.98			$	0.96				32.2	%		$	4.33			$	3.10			$	1.23				39.7	%

5 — TEP Operating Stats

TEP — RETAIL AND WHOLESALE MARGIN REVENUES

		Three Months Ended September 30,																Nine Months Ended September 30,
		2010				2009				Incr (Decr)				% Change				2010				2009				Incr (Decr)				% Change
RETAIL REVENUES — $ MILLIONS
Margin Revenues:
Residential		$	96.7			$	97.0			$	(0.3	)			-0.3	%		$	203.4			$	204.5			$	(1.1	)			-0.5	%
Commercial			51.2				51.6				(0.5	)			-0.9	%			123.4				124.6				(1.2	)			-0.9	%
Industrial			28.8				29.3				(0.5	)			-1.7	%			74.1				77.6				(3.4	)			-4.4	%
Mining			8.1				7.7				0.4				4.7	%			23.2				22.5				0.6				2.8	%
Other			3.4				3.5				(0.0	)			-1.2	%			9.1				9.4				(0.4	)			-3.7	%
Total		$	188.2			$	189.1			$	(0.9	)			-0.5	%		$	433.2			$	438.6			$	(5.4	)			-1.2	%
DSM / REST			11.8				4.8				7.1			NM					29.8				9.9				19.9			NM
Fuel Revenues:
Recovered from Customers			100.3				103.6				(3.3	)			-3.2	%			222.3				226.7				(4.3	)			-1.9	%
Total Retail Revenues		$	300.3			$	297.4			$	2.9				1.0	%		$	685.3			$	675.2			$	10.1				1.5	%
RETAIL REVENUES — CENTS / KWH
Margin Revenues:
Residential			6.69				6.67				0.02				0.3	%			6.54				6.54				0.01				0.1	%
Commercial			8.35				8.34				0.01				0.2	%			8.14				8.07				0.07				0.9	%
Industrial			4.57				4.67				(0.09	)			-2.0	%			4.52				4.65				(0.13	)			-2.8	%
Mining			2.95				2.87				0.08				2.7	%			2.88				2.84				0.03				1.1	%
Other			5.25				5.19				0.06				1.2	%			5.10				5.01				0.09				1.8	%
Total			6.22				6.23				(0.01	)			-0.2	%			5.98				5.99				(0.01	)			-0.2	%
DSM / REST			0.39				0.16				0.23			NM					0.41				0.14				0.28			NM
Fuel Revenues:
Recovered from Customers			3.31				3.41				(0.10	)			-2.9	%			3.07				3.10				(0.03	)			-0.9	%
Total Retail Revenues			9.92				9.80				0.13				1.3	%			9.45				9.22				0.23				2.5	%
LONG-TERM WHOLESALE MARGIN — $ MILLIONS
Long-term Wholesale Revenues		$	13.8			$	10.4			$	3.4				33.2	%		$	41.7			$	34.6			$	7.1				20.5	%
Fuel and Purchased Power Expense			8.2				4.4				3.8				87.0	%			21.5				15.6				5.9				37.8	%
Net		$	5.6			$	6.0			$	-0.4				-6.5	%		$	20.2			$	19.0			$	1.2				6.3	%

6 — TEP Margin Revenues

UNS ELECTRIC — OPERATING STATISTICS

		Three Months Ended September 30,																Nine Months Ended September 30,
		2010				2009				Incr (Decr)				% Change				2010				2009				Incr (Decr)				% Change
AVG. ELECTRIC CUSTOMERS
Residential			80,215				79,476				739				0.9	%			80,149				79,460				689				0.9	%
Commercial			10,349				10,308				41				0.4	%			10,346				10,331				15				0.1	%
Industrial			23				23				—				0.0	%			24				21				3				14.3	%
Mining			2				1				1				100.0	%			1				1				—				0.0	%
Other			266				265				1				0.4	%			266				263				3				1.1	%
Total			90,855				90,073				782				0.9	%			90,786				90,076				710				0.8	%
RETAIL SALES — MWH
Residential			301,191				300,881				310				0.1	%			652,457				651,577				880				0.1	%
Commercial			181,275				185,393				(4,118	)			-2.2	%			469,860				478,628				(8,768	)			-1.8	%
Industrial			62,090				56,438				5,652				10.0	%			165,471				144,273				21,198				14.7	%
Mining			51,115				43,036				8,079				18.8	%			149,254				116,643				32,611				28.0	%
Other			480				499				(19	)			-3.8	%			1,520				1,586				(66	)			-4.2	%
Total			596,151				586,247				9,904				1.7	%			1,438,562				1,392,707				45,855				3.3	%
RETAIL USAGE — KWH/CUSTOMER
Residential			3,755				3,786				(31	)			-0.8	%			8,141				8,200				(60	)			-0.7	%
Commercial			17,516				17,985				(469	)			-2.6	%			45,415				46,329				(915	)			-2.0	%
Industrial			2,699,565				2,453,826				245,739				10.0	%			6,894,625				6,870,143				24,482				0.4	%
Mining			25,557,500				43,036,000				(17,478,500	)			-40.6	%			149,254,000				116,643,000				32,611,000				28.0	%
Other			1,805				1,883				(79	)			-4.2	%			5,714				6,030				(316	)			-5.2	%
Total			6,562				6,509				53				0.8	%			15,846				15,461				384				2.5	%
RETAIL REVENUES — MILLIONS
Margin Revenues:
Residential		$	7.2			$	7.2			$	0.1				1.0	%		$	16.4			$	16.2			$	0.2				0.9	%
Commercial			6.2				6.4				(0.2	)			-2.5	%			17.0				17.2				(0.2	)			-1.3	%
Industrial			1.9				1.7				0.2				9.4	%			5.5				4.7				0.8				17.7	%
Mining			1.1				0.8				0.3				33.7	%			3.2				2.5				0.7				28.0	%
Other			0.0				0.1				(0.0	)			-4.7	%			0.1				0.2				(0.1	)			-43.5	%
Total Margin Revenues		$	16.5			$	16.1			$	0.4				2.2	%		$	42.2			$	40.7			$	1.5				3.6	%
DSM / REST			3.2				1.2				2.0				164.8	%			6.8				2.9				3.9				134.2	%
Fuel Revenues:
Recovered from Customers			40.0				34.2				5.8				17.0	%			90.5				98.7				(8.2	)			-8.4	%
Total Retail Revenues		$	59.7			$	51.5			$	8.1				15.8	%		$	139.4			$	142.3			$	(2.9	)			-2.0	%
WEATHER — COOLING DEGREE DAYS
Actual			5,758				5,666				92				1.6	%			8,235				8,710				(475	)			-5.5	%
10-Year Average			5,433				5,367												8,462				8,501
% Change Actual vs. 10-Year Avg.			6.0	%			5.6	%											-2.7	%			2.5	%

7 — UNS Electric Op. Stats

UNS GAS — OPERATING STATISTICS

		Three Months Ended September 30,																Nine Months Ended September 30,
		2010				2009				Incr (Decr)				% Change				2010				2009				Incr (Decr)				% Change
AVG. GAS CUSTOMERS
Residential			132,768				132,192				576				0.4	%			133,206				132,606				600				0.5	%
Commercial			11,080				11,225				(145	)			-1.3	%			11,248				11,374				(126	)			-1.1	%
Industrial			22				23				(1	)			-4.3	%			23				24				(1	)			-4.2	%
All Other			1,095				1,086				9				0.8	%			1,092				1,085				7				0.6	%
Total			144,965				144,526				439				0.3	%			145,569				145,089				480				0.3	%
RETAIL SALES — THOUSANDS OF THERMS
Residential			5,096				5,186				(90	)			-1.7	%			49,649				44,553				5,096				11.4	%
Commercial			3,915				3,888				27				0.7	%			20,936				19,604				1,332				6.8	%
Industrial			305				344				(39	)			-11.3	%			1,357				1,447				(90	)			-6.2	%
All Other			352				356				(4	)			-1.1	%			4,465				4,056				409				10.1	%
Total			9,668				9,774				(106	)			-1.1	%			76,407				69,660				6,747				9.7	%
RETAIL USAGE — THERMS/CUSTOMER
Residential			38				39				(1	)			-2.2	%			373				336				37				10.9	%
Commercial			353				346				7				2.0	%			1,861				1,724				138				8.0	%
Industrial			13,864				14,957				(1,093	)			-7.3	%			59,000				60,292				(1,292	)			-2.1	%
All Other			321				328				(6	)			-1.9	%			4,089				3,738				351				9.4	%
Total			67				68				(1	)			-1.4	%			525				480				45				9.3	%
RETAIL REVENUES — MILLIONS
Margin Revenues:
Residential		$	5.6			$	5.0			$	0.5				10.4	%		$	27.3			$	24.5			$	2.8				11.5	%
Commercial			1.6				1.5				0.1				9.0	%			7.1				6.5				0.7				10.1	%
All Other			0.2				0.2				0.0				5.1	%			1.4				1.3				0.1				5.4	%
Total Margin Revenues		$	7.4			$	6.7			$	0.7				10.0	%		$	35.8			$	32.3			$	3.5				11.0	%
DSM Revenues			0.3				0.2				0.1				84.8	%			0.7				0.4				0.3				70.1	%
Transport/NSP Revenues			4.8				3.7				1.1				31.0	%			13.2				12.4				0.8				6.2	%
Fuel Revenues:
Recovered from Customers			6.3				7.5				(1.2	)			-16.4	%			51.1				58.2				(7.1	)			-12.2	%
Total Gas Revenues		$	18.7			$	18.1			$	0.6				3.4	%		$	100.8			$	103.3			$	(2.5	)			-2.4	%
WEATHER — HEATING DEGREE DAYS
Actual			224				301				(77	)			-25.6	%			13,621				11,879				1,742				14.7	%
10-Year Average			333				346												12,741				12,527
% Change Actual vs. 10-Year Avg.			-32.7	%			-13.0	%											6.9	%			-5.2	%