Outage Affects Unit 2 at TEP's Springerville Generating Station

 

TUCSON, Ariz.--(BUSINESS WIRE)--Aug. 16, 2005

A Tucson Electric Power (TEP) generating unit has been taken out of service in an unplanned outage that may last between three and six weeks.

Unit 2 at TEP's Springerville Generating Station (SGS) was shut down Thursday, Aug. 11, due to a control system malfunction and subsequent mechanical problem with the turbine. Crews are inspecting the unit to determine the extent of the problem, and the precise duration of the outage is not yet known.

TEP has taken steps to purchase adequate power to replace the output of the 380-MW coal-fired unit, so TEP's customers will not be affected by the outage. TEP will incur additional costs to repair the unit and to purchase replacement power. The total financial impact cannot be determined at this time. Outage-related costs will not affect TEP's current rates, which are frozen through the end of 2008.

UniSource Energy's primary subsidiaries include TEP, which serves more than 379,000 customers in southern Arizona; UniSource Energy Services, provider of natural gas and electric service for more than 223,000 customers in northern and southern Arizona; and Millennium Energy Holdings, parent company of UniSource Energy's unregulated energy businesses. For more information about UniSource Energy and its subsidiaries, visit unisourceenergy.com. For more information about TEP, visit tep.com.

This news release contains forward-looking information that involves risks and uncertainties that include, but are not limited to, the outcome of regulatory proceedings; the ongoing restructuring of the electric industry; regional economic and market conditions which could affect customer growth, and the cost of fuel and power supplies; changes to long-term contracts; performance of TEP's generating plants; the weather; changes in asset depreciable lives; changes related to the recognition of unbilled revenue; the cost of debt and equity capital; changes in accounting standards; 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.