Exhibit 99.2

UniSource Energy Corporation
1st Quarter 2011 Supplemental Earnings Information
As of May 2, 2011

TABLE OF CONTENTS

Safe Harbor and Non-GAAP Measures			1
Variance Explanation			2
UniSource Energy and TEP O&M			3
TEP Operating Statistics			4
TEP Margin Revenues			5
UNS Electric Operating Statistics			6
UNS Gas Operating Statistics			7
Basic & Diluted Shares Outstanding			8

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.

QUARTER OVER QUARTER EARNINGS VARIANCE EXPLANATION

1st Quarter 2010 UniSource Energy Net Income																		$	20.0
		1st Quarter								Change
TEP		2011				2010				Pre-Tax				After Tax
		-millions of dollars-
Retail Margin Revenues		$	108.7			$	108.4			$	0.3			$	0.2
L-T Wholesale Margin Revenues			7.0				8.1				(1.1	)			(0.7	)
Transmission Revenues			3.9				7.5				(3.6	)			(2.2	)
TEP Utility Gross Margin (Non-GAAP)			119.6				124.0				(4.4	)			(2.7	)
Loss related to the settlement of a dispute over tranactions with the California Power Exchange			0.0				(3.0	)			3.0				1.9
Base O&M			62.0				54.4				7.6				4.7
Depreciation			25.7				24.1				1.6				1.0
Amortization			8.3				7.8				0.5				0.3
Operating synergies related to Springerville Unit 3&4			5.8				6.5				(0.7	)			(0.4	)
Other Line Item Changes			(1.7	)			(3.0	)			1.3				0.8
TEP Operating Income (GAAP)			27.7				38.2				(10.5	)			(6.5	)
Other Income			0.9				0.4				0.5				0.3
Total Interest Expense			21.4				21.9				(0.5	)			(0.3	)
Income Tax Expense (1)			0.2				6.4				(6.2	)		NM
TEP Net Income (Loss)		$	7.0			$	10.3				($3.3	)		NM
Change in TEP Net Income																			(3.3	)
Other Business Segments
UNS Electric Net Income (2)			3.1				2.9			NM					0.2
UNS Gas Net Income			6.4				5.8			NM					0.6
Other (3)			0.5				1.0			NM					(0.5	)
Total Other Income and Consolidating Adjustments		$	10.0			$	9.7			NM				$	0.3
Change in UNS Electric, UNS Gas and Other																			0.3
1st Quarter 2011 UniSource Energy Net Income																		$	17.0

UNISOURCE ENERGY AND TEP O&M

UniSource Energy		1st Quarter
O&M Components		2011				2010
		-millions of dollars-
TEP Base O&M (Non-GAAP)		$	62.0			$	54.4
UNS Gas Base O&M (Non-GAAP)			6.5				6.2
UNS Electric Base O&M (Non-GAAP)			5.0				4.8
Consolidating Adjustments & Other			(2.5	)			(2.2	)
UniSource Energy Base O&M (Non-GAAP)		$	71.0			$	63.2
Reimbursed O&M Related to Springerville Units 3 and 4			16.2				12.7
O&M Related to Customer-funded Renewable Energy and DSM Programs			13.8				7.0
UniSource Energy O&M (GAAP)		$	101.0			$	82.9

TEP		1st Quarter
O&M Components		2011				2010
		-millions of dollars-
Wages, A&G, Other		$	39.1			$	34.9
Generating Plant Maintenance Expense			19.0				16.0
Pension and Postretirement Benefits Expense			3.9				3.5
TEP Base O&M (Non-GAAP)		$	62.0			$	54.4
O&M Included in Other Expense			(1.9	)			(1.9	)
Reimbursed O&M Related to Springerville Units 3 and 4			16.2				12.7
O&M Related to Customer-funded Renewable Energy and DSM Programs			12.2				5.2
TEP O&M (GAAP)		$	88.5			$	70.4

TEP — OPERATING STATISTICS

		3 Months Ended Mar. 31
		2011				2010				Incr (Decr)				% Change
AVG. ELECTRIC CUSTOMERS
Residential			366,308				365,627				681				0.2	%
Commercial			35,917				35,814				103				0.3	%
Industrial			634				632				2				0.3	%
Mining			2				2				—				0.0	%
Other			62				61				1				1.6	%
Total			402,923				402,136				787				0.2	%
RETAIL SALES — MWH
Residential			748,979				754,738				(5,759	)			-0.8	%
Commercial			401,133				394,607				6,526				1.7	%
Industrial			489,770				473,771				15,999				3.4	%
Mining			264,991				261,037				3,954				1.5	%
Other			49,863				44,659				5,204				11.7	%
Total			1,954,736				1,928,812				25,924				1.3	%
RETAIL USAGE — KWH/CUSTOMER
Residential			2,045				2,064				(20	)			-0.9	%
Commercial			11,168				11,018				150				1.4	%
Industrial			772,508				749,638				22,870				3.1	%
Mining			132,495,500				130,518,500				1,977,000				1.5	%
Other			804,242				732,115				72,127				9.9	%
Total			4,851				4,796				55				1.1	%
WEATHER — HEATING DEGREE DAYS
Actual			856				881				(25	)			-2.8	%
10-Year Average			806				805
% Change Actual vs. 10-Year Avg.			6.2	%			9.4	%
ENERGY MARKET INDICATORS
Avg. Wholesale Power Prices
Palo Verde Index — $/MWh
On Peak		$	32.61			$	45.19			$	(12.58	)			-27.8	%
Off Peak		$	21.41			$	34.77			$	(13.36	)			-38.4	%
Avg. Natural Gas Prices
Permian Index — $/MMBtu		$	3.92			$	5.26			$	(1.34	)			-25.5	%

TEP — RETAIL AND WHOLESALE MARGIN REVENUES

		3 Months Ended Mar. 31
		2011				2010				Incr (Decr)				% Change
RETAIL REVENUES — $ MILLIONS
Margin Revenues:
Residential		$	46.9			$	47.3				(0.4	)			-0.8	%
Commercial			31.1				30.6				0.5				1.6	%
Industrial			20.6				21.0				(0.4	)			-1.9	%
Mining			7.6				7.3				0.3				4.1	%
Other			2.5				2.2				0.3				13.6	%
Total		$	108.7			$	108.4			$	0.3				0.3	%
DSM / REST			15.0				8.0				7.0				87.8	%
Fuel Revenues:
Recovered from Customers			50.0				51.0				(1.0	)			-2.0	%
Total Retail Revenues		$	173.7			$	167.4			$	6.3				3.8	%
RETAIL REVENUES — CENTS / KWH
Margin Revenues:
Residential			6.26				6.27				(0.01	)			-0.1	%
Commercial			7.75				7.75				(0.00	)			0.0	%
Industrial			4.21				4.43				(0.23	)			-5.1	%
Mining			2.87				2.80				0.07				2.6	%
Other			5.01				4.93				0.09				1.8	%
Total			5.56				5.62				(0.06	)			-1.1	%
DSM / REST			0.77				0.41				0.35				85.3	%
Fuel Revenues:
Recovered from Customers			2.56				2.64				(0.09	)			-3.3	%
Total Retail Revenues			8.89				8.68				0.21				2.4	%
LONG-TERM WHOLESALE MARGIN — $ MILLIONS
Long-term Wholesale Revenues		$	13.5			$	14.9				(1.4	)			-9.4	%
Fuel and Purchased Power Expense			(6.5	)			(6.8	)			0.3				-4.4	%
Net		$	7.0			$	8.1				(1.1	)			-13.6	%

UNS ELECTRIC — OPERATING STATISTICS

		Three Months Ended March 31,
		2011				2010				Incr (Decr)				% Change
AVG. ELECTRIC CUSTOMERS
Residential			80,547				80,023				524				0.7	%
Commercial			10,368				10,336				32				0.3	%
Industrial			22				24				(2	)			-8.3	%
Mining			2				1				1				100.0	%
Other			249				266				(17	)			-6.4	%
Total			91,188				90,650				538				0.6	%
RETAIL SALES — MWH
Residential			180,166				175,345				4,821				2.7	%
Commercial			131,062				131,308				(246	)			-0.2	%
Industrial			51,751				51,834				(83	)			-0.2	%
Mining			58,730				46,852				11,878				25.4	%
Other			475				566				(91	)			-16.1	%
Total			422,184				405,905				16,279				4.0	%
RETAIL USAGE — KWH/CUSTOMER
Residential			2,237				2,191				46				2.1	%
Commercial			12,641				12,704				(63	)			-0.5	%
Industrial			2,352,318				2,159,750				192,568				8.9	%
Mining			29,365,000				46,852,000				(17,487,000	)			-37.3	%
Other			1,908				2,128				(220	)			-10.3	%
Total			4,630				4,478				152				3.4	%
RETAIL REVENUES — MILLIONS
Margin Revenues:
Residential		$	5.5			$	4.5			$	1.0				21.9	%
Commercial			5.6				5.0				0.6				12.4	%
Industrial			1.9				1.7				0.2				8.9	%
Mining			1.3				1.0				0.3				34.7	%
Other			0.1				0.1				0.0				72.4	%
Total Margin Revenues		$	14.4			$	12.3			$	2.1				17.4	%
DSM / REST			1.4				1.6				(0.2	)			-13.4	%
Fuel Revenues:
Recovered from Customers			27.7				23.4				4.3				18.1	%
Total Retail Revenues		$	43.5			$	37.3			$	6.2				16.5	%
WEATHER — HEATING DEGREE DAYS
Actual			3,522				3,570				(48	)			-1.3	%
10-Year Average			3,402				3,389				13				0.4	%
% Change Actual vs. 10-Year Avg.			3.5	%			5.3	%

UNS GAS — OPERATING STATISTICS

		Three Months Ended March 31,
		2011				2010				Incr (Decr)				% Change
AVG. GAS CUSTOMERS
Residential			134,426				133,715				711				0.5	%
Commercial			11,307				11,405				(98	)			-0.9	%
Industrial			22				23				(1	)			-4.3	%
All Other			1,127				1,107				20				1.8	%
Total			146,882				146,250				632				0.4	%
RETAIL SALES — THOUSANDS OF THERMS
Residential			32,770				33,401				(632	)			-1.9	%
Commercial			11,458				11,445				13				0.1	%
Industrial			741				692				48				7.0	%
All Other			9,963				10,411				(447	)			-4.3	%
Total			54,932				55,950				(1,018	)			-1.8	%
RETAIL USAGE — THERMS/CUSTOMER
Residential			244				250				(6	)			-2.4	%
Commercial			1,013				1,004				10				1.0	%
Industrial			33,661				30,103				3,558				11.8	%
All Other			8,840				9,404				(564	)			-6.0	%
Total			374				383				(9	)			-2.2	%
RETAIL REVENUES — MILLIONS
Margin Revenues:
Residential		$	14.4			$	14.1			$	0.4				2.6	%
Commercial			3.7				3.4				0.3				7.7	%
All Other			0.9				0.9				0.1				6.1	%
Total Margin Revenues		$	19.1			$	18.4			$	0.7				3.7	%
DSM Revenues			0.3				0.2				0.1				30.4	%
Transport/NSP Revenues			4.6				5.1				(0.5	)			-10.5	%
Fuel Revenues:
Recovered from Customers			33.5				32.9				0.5				1.6	%
Total Gas Revenues		$	57.5			$	56.7			$	0.8				1.3	%
WEATHER — HEATING DEGREE DAYS
Actual			10,111				10,356				(245	)			-2.4	%
10-Year Average			9,929				9,885
% Change Actual vs. 10-Year Avg.			1.8	%			4.8	%

BASIC AND DILUTED SHARES OUTSTANDING

		Three Months Ended
		March 31,
		2011				2010
		-Thousands of Dollars-
Numerator:
Net Income		$	16,992			$	19,972
Income from Assumed Conversion of Convertible Senior Notes			1,097				1,097
Adjusted Numerator		$	18,089			$	21,069
Denominator:
Weighted-average Shares of Common Stock Outstanding:
Common Shares Issued			36,596				35,850
Participating Securities			76				95
Fully Vested Deferred Stock Units			117				107
Total Weighted-average Shares of Common Stock Outstanding and Participating Securities — Basic			36,789				36,052
Effect of Dilutive Securities:
Convertible Senior Notes			4,242				4,140
Options and Stock Issuable Under Employee Benefit Plans and the Directors’ Plans			374				481
Total Shares — Diluted			41,405				40,673

Stock options to purchase 168,000 and 234,000 shares of Common Stock were outstanding during the three months ended March 31, 2011 and 2010, respectively, but were not included in the computation of diluted EPS because the stock options’ exercise prices were greater than the average market price of the Common Stock.