Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TUCSON ELECTRIC POWER CO | c13153e8vk.htm |
| EX-99.2 - EXHIBIT 99.2 - TUCSON ELECTRIC POWER CO | c13153exv99w2.htm |
| EX-99.3 - EXHIBIT 99.3 - TUCSON ELECTRIC POWER CO | c13153exv99w3.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
|
February 28, 2011 | |
Media Contact: Joe Salkowski, (520) 884-3625
|
Page 1 of 10 | |
Financial Analyst Contact: Jo Smith, (520) 884-3650 |
UNISOURCE
ENERGY REPORTS 2010 EARNINGS, INCREASES QUARTERLY DIVIDEND, AND
ISSUES EARNINGS GUIDANCE FOR 2011
ISSUES EARNINGS GUIDANCE FOR 2011
| • | UniSource Energy’s net income for 2010 was $111.5 million, or $2.82 per share of common stock on a fully-diluted basis, compared with net income of $104.3 million, or $2.69 per diluted share in 2009. | |
| • | Excluding net losses at Millennium Energy Holdings (Millennium), a subsidiary that holds UniSource Energy’s unregulated energy investments, UniSource Energy’s 2010 net income was $124.9 million or $3.15 per diluted share. In 2010, Millennium recorded $13 million of non-cash, non-operating after-tax charges compared with net income of $2 million in 2009. | |
| • | The Board of Directors of UniSource Energy has declared a first quarter dividend for common shareholders of 42 cents per share. | |
| • | Earnings at UniSource Energy’s primary subsidiary, Tucson Electric Power Company (TEP), were $107.0 million in 2010 compared with $89.2 million in 2009. Cost control efforts, lower generating plant maintenance expense, benefits from the operation of Unit 4 at the Springerville Generating Station (SGS) and lower depreciation and amortization expense contributed to higher earnings at TEP. | |
| • | UniSource Energy reported operating cash flows of $342 million for 2010. | |
| • | UniSource Energy estimates its 2011 diluted earnings per share will be between $2.60 and $2.90. |
Tucson, Ariz. — UniSource Energy Corporation (NYSE: UNS) today reported 2010 net income of $111.5
million, or $2.82 per share of common stock on a fully-diluted basis, compared with $104.3 million,
or $2.69 per diluted share in 2009.
“Our 2010 financial results reflect the resilience of our core utility business in the face of a
third consecutive year of declining retail sales at TEP,” said Paul Bonavia, UniSource Energy’s
Chairman, President and CEO. “We have prudently managed our costs and continue to identify
opportunities to improve the efficiency and effectiveness of our operations.”
TEP’s retail kilowatt-hour (kWh) sales in 2010 fell 0.8 percent from 2009 levels. Although the
weather in TEP’s service area was hotter than normal, there were 3.5 percent fewer cooling degree
days than in 2009. Sales volumes to TEP’s mining customers were strong, increasing by 1.4 percent
compared with 2009. Mining activity in TEP’s service area continues to increase as the price of
copper remains strong in response to robust demand.
1
“While we are encouraged by the sales outlook for our mining customers, we expect lingering
weakness in the local economy and the implementation of additional energy efficiency programs to
moderate any growth in sales to residential and business customers,” Bonavia said.
UniSource Energy’s earnings for 2011 are estimated to be in the range of $2.60 to $2.90 per
diluted share. The mid-point of the range assumes consolidated base operations and maintenance
(O&M) expense of $272 million and an increase in TEP’s annual kWh sales of 0.5 percent. In 2010,
UniSource Energy’s consolidated base O&M expense was $265 million.
“If sales at TEP remain near current levels, the higher costs of necessary maintenance activity,
combined with an increase in depreciation and interest expense, will put pressure on our earnings,”
Bonavia said. TEP’s non-fuel base rates cannot be increased before 2013.
“Our operating cash flows, however, are expected to remain strong with $350 million forecasted for
2011,” Bonavia said. UniSource Energy posted operating cash flows in 2010 of $342 million, which
exceeded capital expenditures of $317 million. “Our board of directors’ decision to increase the
dividend signals its confidence in the company’s ability to continue its strong operating
performance and maintain solid cash flows from operations.”
Common Stock Dividend
UniSource Energy’s board of directors declared a first quarter dividend for common shareholders of
42 cents per share. The dividend will be paid on March 23, 2011 to common shareholders of record
as of March 11, 2011. In 2010, the company’s quarterly dividend was 39 cents per share.
The board’s decision to increase the dividend is consistent with the strategy it adopted in 2010,
of continuing to increase the dividend and to reach a targeted dividend payout level of
approximately 60 percent of UniSource Energy’s net income.
The declaration of dividend payments is at the board’s sole discretion and is subject to numerous
factors that ordinarily affect dividend policy, including the results of UniSource Energy’s
operations and its financial position as well as general economic and business conditions.
Tucson Electric Power
Retail kWh Sales
TEP’s retail kilowatt-hour (kWh) sales fell 0.8 percent in 2010 compared with 2009. Sales to
residential customers decreased 0.9 percent, while kWh sales to TEP’s commercial and industrial
sales declined by 1.3 percent and 1.0 percent, respectively. Sales to TEP’s mining customers
increased by 1.4 percent in 2010 compared with the prior year.
During
the fourth quarter of 2010, which included one of the warmest
Decembers on record in Tucson, retail sales declined 0.3 percent
compared with the same period last year. Although commercial,
industrial, and mining customers all posted year-over-year sales
increases in the fourth quarter of 2010, only residential –
TEP’s most weather-sensitive customer class – consumed less
electricity during the period.
Retail Revenues
Retail margin revenues decreased $5 million, or 1.0 percent, in 2010 compared with 2009. These
revenues do not include a $12 million increase in customer surcharges used to fund renewable energy
and energy efficiency programs or a $6 million decrease in charges to cover fuel and purchased
power costs.
2
Long-Term Wholesale and Transmission Revenues
In 2010, the margin on long-term wholesale sales of electricity was $28 million compared with $25
million in 2009. The increase reflects higher kWh sales to the Navajo Tribal Utility Authority.
Wholesale revenues from the sale of transmission services were $21 million in 2010 compared with
$19 million in 2009.
Other Operating Expenses
TEP’s 2010 base O&M expense of $228 million was down $3 million, or 1.3 percent, from 2009 levels.
Base O&M excludes costs directly offset by customer surcharges and third-party reimbursements.
The reduction reflects the impact of cost containment efforts as well as lower generation
maintenance outage expense.
Depreciation
expense decreased by $10 million primarily due to new lower depreciation rates for
transmission assets and lower depreciation on Unit 4 at TEP’s H. Wilson Sundt Generating Station.
Those savings were partially offset by depreciation expense related to new plant additions.
Amortization expense decreased $7 million due to a decline in the balance of capital lease
obligations. The decreases in depreciation and amortization exclude adjustments made in 2009
related to an investment in Springerville Unit 1 lease equity.
Benefits of SGS Units 3 and 4
The December 2009 completion of SGS Unit 4 resulted in an $11 million increase in rents and fees
for the operations of SGS Units 3 and 4. In 2010, rents and fees related to the operation of these
Units totaled $24 million. Phoenix-based Salt River Project (SRP) owns Unit 4, while Tri-State
Generation and Transmission Association leases Unit 3 from a financial owner. TEP operates all
four units at the eastern Arizona plant.
Interest Expense
Total
interest expense on long-term debt increased by $6 million in
2010 compared with 2009, primarily due to the January 2010 conversion of $130 million of bonds from a variable to a fixed
rate.
UNS Gas
UNS Gas reported net income of $9 million in 2010 compared with $7 million in 2009. The increase
resulted from a 3.7 percent increase in retail therm sales and a 2 percent non-fuel base rate
increase that took effect in April 2010. Cooler weather drove heating degree days 3 percent higher
than in 2009 and 3 percent higher than the 10-year average.
UNS Electric
UNS Electric reported net income of $10 million in 2010 compared with $6 million in the previous
year. The increase is due primarily to a 4.1 percent increase in kWh sales, a 4 percent non-fuel
base rate increase that took effect October 1, 2010 and a settlement related to previous
transactions with the California Power Exchange that resulted in after-tax income of $2 million.
The increase in UNS Electric’s retail kWh sales reflects higher usage by a copper mining customer
and the addition of a new industrial customer.
3
Millennium
Millennium recorded a $13 million net loss in 2010 compared with net income of $2 million in 2009.
Millennium’s 2010 results include $3 million of income tax expense related to the write-off of deferred tax assets and an $8 million after-tax impairment loss related to its investments.
Millennium’s 2010 results include $3 million of income tax expense related to the write-off of deferred tax assets and an $8 million after-tax impairment loss related to its investments.
In the fourth quarter of 2010, Millennium recorded a net loss of $4 million, compared with a net
loss of $1 million in the fourth quarter of 2009.
On December 31, 2010, Millennium had assets of $22 million, including a $15 million note
receivable, land and buildings of $2 million, deferred tax assets of $2 million and cash of $3
million.
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 prices, which include higher rates
for higher levels of energy use, also shift a larger share of the company’s earnings into those
periods.
Energy demand from UNS Gas customers typically peaks during the winter. Accordingly, UNS Gas
records the majority of its net income during the first and fourth quarters.
4
Net Income and Earnings Per Share Summary
| 4th Quarter | YTD Dec. 31 | |||||||||||||||
| Net Income | 2010 | 2009 | 2010 | 2009 | ||||||||||||
| -Millions- | -Millions- | |||||||||||||||
Tucson Electric Power |
$ | 10.0 | $ | 8.0 | $ | 107.0 | $ | 89.2 | ||||||||
UNS Gas |
3.3 | 3.8 | 8.6 | 7.4 | ||||||||||||
UNS Electric |
2.1 | 0.0 | 10.3 | 5.9 | ||||||||||||
Millennium |
(4.2 | ) | (1.1 | ) | (13.5 | ) | 2.4 | |||||||||
Other (1) |
(0.1 | ) | (0.3 | ) | (0.9 | ) | (0.6 | ) | ||||||||
Net Income |
$ | 11.1 | $ | 10.4 | $ | 111.5 | $ | 104.3 | ||||||||
Avg. Basic Shares Outstanding (millions) |
36.7 | 35.9 | 36.4 | 35.9 | ||||||||||||
Avg. Diluted Shares Outstanding (millions) |
41.4 | 40.5 | 41.0 | 40.5 | ||||||||||||
| 4th Quarter | YTD Dec. 31 | |||||||||||||||
| Earnings Per UniSource Energy Share | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Tucson Electric Power |
$ | 0.27 | $ | 0.22 | $ | 2.94 | $ | 2.49 | ||||||||
UNS Gas |
0.09 | 0.11 | 0.24 | $ | 0.20 | |||||||||||
UNS Electric |
0.06 | 0.00 | 0.28 | $ | 0.17 | |||||||||||
Millennium |
(0.12 | ) | (0.03 | ) | (0.37 | ) | $ | 0.07 | ||||||||
Other (1) |
0.00 | (0.01 | ) | (0.03 | ) | ($0.02 | ) | |||||||||
Net Income per Basic Share |
$ | 0.30 | $ | 0.29 | $ | 3.06 | $ | 2.91 | ||||||||
Net Income per Diluted Share |
$ | 0.29 | $ | 0.28 | $ | 2.82 | $ | 2.69 | ||||||||
| (1) | Includes UniSource Energy on a stand-alone basis and results from UniSource Energy Development, a wholly-owned subsidiary of UniSource Energy. |
UniSource Energy believes the presentation
of TEP, UNS Gas, UNS Electric, and Millennium 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.
Conference Call and Webcast
The company will host a conference call on Monday, February 28 at 12 p.m. EST 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: 46482374
Reference code: 46482374
5
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: (800) 642-1687
Reference code: 46482374
Reference code: 46482374
In conjunction with this earnings announcement, UniSource Energy has provided detailed information
on its performance during 2010 and outlook for 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 $3.8
billion. UniSource Energy’s primary subsidiaries include Tucson Electric Power, which serves more
than 402,000 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; 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
outcomes currently expected by UniSource Energy.
6
UNISOURCE ENERGY 2010 RESULTS
UniSource
Energy Corporation
Comparative Condensed Consolidated Statements of Income
(in thousands of dollars, except per share amounts)
(UNAUDITED)
Comparative Condensed Consolidated Statements of Income
(in thousands of dollars, except per share amounts)
(UNAUDITED)
| Three Months Ended | ||||||||||||||||
| December 31, | Increase / (Decrease) | |||||||||||||||
| 2010 | 2009 | Amount | Percent | |||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 226,288 | $ | 230,129 | $ | (3,841 | ) | (1.7 | ) | |||||||
Electric Wholesale Sales |
51,579 | 38,873 | 12,706 | 32.7 | ||||||||||||
California Power Exchange (CPX) Provision for
Wholesale Refunds |
— | (4,172 | ) | 4,172 | N/M | |||||||||||
Gas Revenue |
44,438 | 45,420 | (982 | ) | (2.2 | ) | ||||||||||
Other Revenues |
36,883 | 22,572 | 14,311 | 63.4 | ||||||||||||
Total Operating Revenues |
359,188 | 332,822 | 26,366 | 7.9 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
76,793 | 74,897 | 1,896 | 2.5 | ||||||||||||
Purchased Energy |
66,137 | 79,740 | (13,603 | ) | (17.1 | ) | ||||||||||
Transmission |
2,257 | 2,574 | (317 | ) | (12.3 | ) | ||||||||||
Decrease to Reflect PPFAC/PGA Recovery Treatment |
4,230 | (12,008 | ) | 16,238 | N/M | |||||||||||
Total Fuel and Purchased Energy |
149,417 | 145,203 | 4,214 | 2.9 | ||||||||||||
Other Operations and Maintenance |
111,088 | 90,455 | 20,633 | 22.8 | ||||||||||||
Depreciation |
32,442 | 35,359 | (2,917 | ) | (8.2 | ) | ||||||||||
Amortization |
7,297 | 8,778 | (1,481 | ) | (16.9 | ) | ||||||||||
Taxes Other Than Income Taxes |
10,682 | 9,942 | 740 | 7.4 | ||||||||||||
Total Operating Expenses |
310,926 | 289,737 | 21,189 | 7.3 | ||||||||||||
Operating Income |
48,262 | 43,085 | 5,177 | 12.0 | ||||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
1,888 | 2,542 | (654 | ) | (25.7 | ) | ||||||||||
Other Income |
2,539 | 1,779 | 760 | 42.7 | ||||||||||||
Other Expense |
(6,678 | ) | (3,252 | ) | (3,426 | ) | N/M | |||||||||
Total Other Income (Deductions) |
(2,251 | ) | 1,069 | (3,320 | ) | N/M | ||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
18,036 | 14,454 | 3,582 | 24.8 | ||||||||||||
Capital Leases |
11,616 | 12,508 | (892 | ) | (7.1 | ) | ||||||||||
Other Interest Expense |
1,281 | 1,057 | 224 | 21.2 | ||||||||||||
Interest Capitalized |
(1,004 | ) | (522 | ) | (482 | ) | (92.3 | ) | ||||||||
Total Interest Expense |
29,929 | 27,497 | 2,432 | 8.8 | ||||||||||||
Income Before Income Taxes |
16,082 | 16,657 | (575 | ) | (3.5 | ) | ||||||||||
Income Tax Expense |
5,000 | 6,238 | (1,238 | ) | (19.8 | ) | ||||||||||
Net Income |
$ | 11,082 | $ | 10,419 | $ | 663 | 6.4 | |||||||||
Weighted-Average Shares of Common Stock
Outstanding (000) |
36,696 | 35,948 | 748 | 2.1 | ||||||||||||
Basic Earnings per Share |
$ | 0.30 | $ | 0.29 | $ | 0.01 | 3.4 | |||||||||
Diluted Earnings per Share |
$ | 0.29 | $ | 0.28 | $ | 0.01 | 3.6 | |||||||||
Dividends Declared per Share |
$ | 0.39 | $ | 0.29 | $ | 0.10 | 34.5 | |||||||||
N/M
— Not Meaningful
Reclassifications have been made to prior periods to conform to the current period’s presentation.
7
UNISOURCE ENERGY 2010 RESULTS
UniSource Energy Corporation
Comparative Condensed Consolidated Statements of Income
(in thousands of dollars, except per share amounts)
(UNAUDITED)
Comparative Condensed Consolidated Statements of Income
(in thousands of dollars, except per share amounts)
(UNAUDITED)
| Years Ended | ||||||||||||||||
| December 31, | Increase / (Decrease) | |||||||||||||||
| 2010 | 2009 | Amount | Percent | |||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 1,051,002 | $ | 1,047,619 | $ | 3,383 | 0.3 | |||||||||
Electric Wholesale Sales |
151,673 | 130,904 | 20,769 | 15.9 | ||||||||||||
California Power Exchange (CPX) Provision for
Wholesale Refunds |
(2,970 | ) | (4,172 | ) | 1,202 | 28.8 | ||||||||||
Gas Revenue |
141,036 | 144,609 | (3,573 | ) | (2.5 | ) | ||||||||||
Other Revenues |
112,936 | 77,741 | 35,195 | 45.3 | ||||||||||||
Total Operating Revenues |
1,453,677 | 1,396,701 | 56,976 | 4.1 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
296,980 | 298,655 | (1,675 | ) | (0.6 | ) | ||||||||||
Purchased Energy |
307,288 | 296,861 | 10,427 | 3.5 | ||||||||||||
Transmission |
10,945 | 10,181 | 764 | 7.5 | ||||||||||||
Decrease to Reflect PPFAC/PGA Recovery Treatment |
(31,105 | ) | (17,091 | ) | (14,014 | ) | (82.0 | ) | ||||||||
Total Fuel and Purchased Energy |
584,108 | 588,606 | (4,498 | ) | (0.8 | ) | ||||||||||
Other Operations and Maintenance |
370,067 | 333,887 | 36,180 | 10.8 | ||||||||||||
Depreciation |
128,215 | 144,960 | (16,745 | ) | (11.6 | ) | ||||||||||
Amortization |
28,094 | 31,058 | (2,964 | ) | (9.5 | ) | ||||||||||
Taxes Other Than Income Taxes |
46,241 | 45,857 | 384 | 0.8 | ||||||||||||
Total Operating Expenses |
1,156,725 | 1,144,368 | 12,357 | 1.1 | ||||||||||||
Operating Income |
296,952 | 252,333 | 44,619 | 17.7 | ||||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
7,779 | 12,072 | (4,293 | ) | (35.6 | ) | ||||||||||
Other Income |
11,038 | 18,063 | (7,025 | ) | (38.9 | ) | ||||||||||
Other Expense |
(15,202 | ) | (5,292 | ) | (9,910 | ) | N/M | |||||||||
Total Other Income (Deductions) |
3,615 | 24,843 | (21,228 | ) | (85.4 | ) | ||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
65,020 | 58,134 | 6,886 | 11.8 | ||||||||||||
Capital Leases |
46,740 | 49,270 | (2,530 | ) | (5.1 | ) | ||||||||||
Other Interest Expense |
1,651 | 3,468 | (1,817 | ) | (52.4 | ) | ||||||||||
Interest Capitalized |
(2,587 | ) | (2,302 | ) | (285 | ) | (12.4 | ) | ||||||||
Total Interest Expense |
110,824 | 108,570 | 2,254 | 2.1 | ||||||||||||
Income Before Income Taxes |
189,743 | 168,606 | 21,137 | 12.5 | ||||||||||||
Income Tax Expense |
78,266 | 64,348 | 13,918 | 21.6 | ||||||||||||
Net Income |
$ | 111,477 | $ | 104,258 | $ | 7,219 | 6.9 | |||||||||
Weighted-Average Shares of Common Stock
Outstanding (000) |
36,415 | 35,858 | 557 | 1.6 | ||||||||||||
Basic Earnings per Share |
$ | 3.06 | $ | 2.91 | $ | 0.15 | 5.2 | |||||||||
Diluted Earnings per Share |
$ | 2.82 | $ | 2.69 | $ | 0.13 | 4.8 | |||||||||
Dividends Declared per Share |
$ | 1.56 | $ | 1.16 | $ | 0.40 | 34.5 | |||||||||
N/M
— Not Meaningful
Reclassifications have been made to prior periods to conform to the current period’s presentation.
8
TUCSON ELECTRIC POWER COMPANY 2010 RESULTS
TUCSON
ELECTRIC POWER COMPANY
Comparative Condensed Consolidated Statements of Income
(in thousands of dollars)
(UNAUDITED)
Comparative Condensed Consolidated Statements of Income
(in thousands of dollars)
(UNAUDITED)
| Three Months Ended | ||||||||||||||||
| December 31, | Increase / (Decrease) | |||||||||||||||
| 2010 | 2009 | Amount | Percent | |||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 182,866 | $ | 192,326 | $ | (9,460 | ) | (4.9 | ) | |||||||
Electric Wholesale Sales |
46,121 | 45,193 | 928 | 2.1 | ||||||||||||
California Power Exchange (CPX) Provision
for Wholesale Refunds |
— | (4,172 | ) | 4,172 | N/M | |||||||||||
Other Revenues |
37,880 | 23,633 | 14,247 | 60.3 | ||||||||||||
Total Operating Revenues |
266,867 | 256,980 | 9,887 | 3.8 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
75,233 | 72,902 | 2,331 | 3.2 | ||||||||||||
Purchased Power |
14,950 | 32,112 | (17,162 | ) | (53.4 | ) | ||||||||||
Transmission |
436 | 627 | (191 | ) | (30.5 | ) | ||||||||||
Decrease to Reflect PPFAC Recovery Treatment |
1,073 | (3,826 | ) | 4,899 | N/M | |||||||||||
Total Fuel and Purchased Energy |
91,692 | 101,815 | (10,123 | ) | (9.9 | ) | ||||||||||
Other Operations and Maintenance |
99,096 | 76,696 | 22,400 | 29.2 | ||||||||||||
Depreciation |
25,367 | 28,365 | (2,998 | ) | (10.6 | ) | ||||||||||
Amortization |
8,233 | 9,997 | (1,764 | ) | (17.6 | ) | ||||||||||
Taxes Other Than Income Taxes |
8,904 | 8,205 | 699 | 8.5 | ||||||||||||
Total Operating Expenses |
233,292 | 225,078 | 8,214 | 3.6 | ||||||||||||
Operating Income |
33,575 | 31,902 | 1,673 | 5.2 | ||||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
1,596 | 2,295 | (699 | ) | (30.5 | ) | ||||||||||
Other Income |
2,268 | 1,320 | 948 | 71.8 | ||||||||||||
Other Expense |
(1,964 | ) | (1,288 | ) | (676 | ) | (52.5 | ) | ||||||||
Total Other Income (Deductions) |
1,900 | 2,327 | (427 | ) | (18.3 | ) | ||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
12,123 | 8,994 | 3,129 | 34.8 | ||||||||||||
Capital Leases |
11,616 | 12,505 | (889 | ) | (7.1 | ) | ||||||||||
Other Interest Expense |
867 | 467 | 400 | 85.7 | ||||||||||||
Interest Capitalized |
(673 | ) | (359 | ) | (314 | ) | (87.5 | ) | ||||||||
Total Interest Expense |
23,933 | 21,607 | 2,326 | 10.8 | ||||||||||||
Income Before Income Taxes |
11,542 | 12,622 | (1,080 | ) | (8.6 | ) | ||||||||||
Income Tax Expense |
1,543 | 4,603 | (3,060 | ) | (66.5 | ) | ||||||||||
Net Income |
$ | 9,999 | $ | 8,019 | $ | 1,980 | 24.7 | |||||||||
| Three Months Ended | ||||||||||||||||
| December 31, | Increase / (Decrease) | |||||||||||||||
| 2010 | 2009 | Amount | Percent | |||||||||||||
Tucson
Electric Power Electric MWh Sales: |
||||||||||||||||
Retail Sales |
2,042,740 | 2,049,142 | (6,402 | ) | (0.3 | ) | ||||||||||
Long-Term Wholesale Sales |
260,487 | 266,582 | (6,095 | ) | (2.3 | ) | ||||||||||
N/M
— Not Meaningful
Reclassifications have been made to prior periods to conform to the current period’s presentation.
9
TUCSON ELECTRIC POWER COMPANY 2010 RESULTS
TUCSON
ELECTRIC POWER COMPANY
Comparative
Condensed Consolidated
Statements of Income
(in thousands of dollars)
(UNAUDITED)
(in thousands of dollars)
(UNAUDITED)
| Years Ended | ||||||||||||||||
| December 31, | Increase / (Decrease) | |||||||||||||||
| 2010 | 2009 | Amount | Percent | |||||||||||||
Operating Revenues |
||||||||||||||||
Electric Retail Sales |
$ | 868,188 | $ | 867,516 | $ | 672 | 0.1 | |||||||||
Electric Wholesale Sales |
140,815 | 152,955 | (12,140 | ) | (7.9 | ) | ||||||||||
California Power Exchange (CPX) Provision
for Wholesale Refunds |
(2,970 | ) | (4,172 | ) | 1,202 | 28.8 | ||||||||||
Other Revenues |
118,946 | 82,688 | 36,258 | 43.8 | ||||||||||||
Total Operating Revenues |
1,124,979 | 1,098,987 | 25,992 | 2.4 | ||||||||||||
Operating Expenses |
||||||||||||||||
Fuel |
286,071 | 281,710 | 4,361 | 1.5 | ||||||||||||
Purchased Power |
118,716 | 144,528 | (25,812 | ) | (17.9 | ) | ||||||||||
Transmission |
3,254 | 3,066 | 188 | 6.1 | ||||||||||||
Decrease to Reflect PPFAC Recovery Treatment |
(23,025 | ) | (20,724 | ) | (2,301 | ) | (11.1 | ) | ||||||||
Total Fuel and Purchased Energy |
385,016 | 408,580 | (23,564 | ) | (5.8 | ) | ||||||||||
Other Operations and Maintenance |
323,537 | 289,765 | 33,772 | 11.7 | ||||||||||||
Depreciation |
99,510 | 116,970 | (17,460 | ) | (14.9 | ) | ||||||||||
Amortization |
32,196 | 35,931 | (3,735 | ) | (10.4 | ) | ||||||||||
Taxes Other Than Income Taxes |
37,953 | 37,618 | 335 | 0.9 | ||||||||||||
Total Operating Expenses |
878,212 | 888,864 | (10,652 | ) | (1.2 | ) | ||||||||||
Operating Income |
246,767 | 210,123 | 36,644 | 17.4 | ||||||||||||
Other Income (Deductions) |
||||||||||||||||
Interest Income |
6,707 | 11,471 | (4,764 | ) | (41.5 | ) | ||||||||||
Other Income |
6,615 | 10,991 | (4,376 | ) | (39.8 | ) | ||||||||||
Other Expense |
(4,389 | ) | (2,904 | ) | (1,485 | ) | (51.1 | ) | ||||||||
Total Other Income (Deductions) |
8,933 | 19,558 | (10,625 | ) | (54.3 | ) | ||||||||||
Interest Expense |
||||||||||||||||
Long-Term Debt |
42,378 | 36,226 | 6,152 | 17.0 | ||||||||||||
Capital Leases |
46,734 | 49,258 | (2,524 | ) | (5.1 | ) | ||||||||||
Other Interest Expense |
433 | 1,571 | (1,138 | ) | (72.4 | ) | ||||||||||
Interest Capitalized |
(1,880 | ) | (1,752 | ) | (128 | ) | (7.3 | ) | ||||||||
Total Interest Expense |
87,665 | 85,303 | 2,362 | 2.8 | ||||||||||||
Income Before Income Taxes |
168,035 | 144,378 | 23,657 | 16.4 | ||||||||||||
Income Tax Expense |
61,057 | 55,130 | 5,927 | 10.8 | ||||||||||||
Net Income |
$ | 106,978 | $ | 89,248 | $ | 17,730 | 19.9 | |||||||||
| Years Ended | ||||||||||||||||
| December 31, | Increase / (Decrease) | |||||||||||||||
| 2010 | 2009 | Amount | Percent | |||||||||||||
| Tucson Electric Power Electric MWh Sales: | ||||||||||||||||
Retail Sales |
9,291,788 | 9,370,743 | (78,955 | ) | (0.8 | ) | ||||||||||
Long-Term Wholesale Sales |
987,957 | 832,847 | 155,110 | 18.6 | ||||||||||||
N/M
— Not Meaningful
Reclassifications have been made to prior periods to conform to the current period’s presentation.
10