Jun. 18--The pending sale of UniSource Energy Corp. to a private investment
partnership has the support of some Tucson charities and businesses, although
the deal is raising concerns with residents, state regulators heard Thursday
night. At a public comment session before the five members of the Arizona
Corporation Commission, representatives from about six charities and the Tucson
Metropolitan Chamber of Commerce said they endorse the merger. The proposed
buyers, Sage Utility Group, have committed to keeping current management in
place for five years after the deal closes. UniSource is the parent company of
Tucson Electric Power. "I support this because I think it's important to keep the management
here," said Will Creamer, director of Reach Out and Read Southern Arizona. Creamer and others speaking on behalf of charities that receive donations
from UniSource said they have confidence in the company's management. Patrick
Zumbusch, director of the Community Food Bank, said although he supports the
merger, he is concerned about the buyout's potential effect on local charities. "They are such a major player in this community," Zumbusch said.
"If I had my preference, they would just be here and stay as they
are." Debbie Rich of Tu Nidito said she endorses the merger. "They are leaders in the community. It would be a tremendous risk to
Tucson, particularly children in our community, to lose that corporate
citizenship," Rich said. "This acquisition is good for business," said John Dougherty,
representing the Tucson Metropolitan Chamber of Commerce. Others said they saw no upside to the deal. Tucson Electric Power has been
gaining financial stability on its own over the last few years, said Vladimir
Slomberg, a part-time Tucson resident. "Why should the public take a risk, when there is no apparent benefit in
the future?" Slomberg said. "I'm against large company takeovers," said Tucsonan Les Parsons.
"When management is in another part of the country, they're not going to
want to respond to you. You're insignificant." The buyout will not affect utility rates because those charges will continue
to be regulated by the Corporation Commission. Tucson Electric rates are in
place until 2008. The $3 billion deal was approved by UniSource's board of
directors in November.
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