Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 18, 2014 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'UNS | ' |
Entity Registrant Name | 'UNS Energy Corp | ' |
Entity Central Index Key | '0000941138 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filer | 'No | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 41,701,718 |
TUCSON ELECTRIC POWER COMPANY | ' | ' |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Entity Registrant Name | 'TUCSON ELECTRIC POWER COMPANY | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filer | 'No | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 32,139,434 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating Revenues | ' | ' | ' | ' |
Electric Retail Sales | $302,975 | $285,419 | $527,545 | $506,279 |
Electric Wholesale Sales | 33,309 | 30,654 | 76,730 | 65,052 |
Gas Retail Sales | 21,911 | 20,013 | 60,481 | 71,002 |
Other Revenue | 28,411 | 29,131 | 55,242 | 55,025 |
Total Operating Revenues | 386,606 | 365,217 | 719,998 | 697,358 |
Operating Expenses | ' | ' | ' | ' |
Fuel | 69,418 | 86,459 | 137,253 | 168,148 |
Purchased Energy | 84,060 | 57,796 | 153,843 | 121,955 |
Transmission and Other PPFAC Recoverable Costs | 6,142 | 4,521 | 12,670 | 7,707 |
Increase (Decrease) to Reflect PPFAC/PGA Recovery Treatment | -12,517 | 2,074 | -21,437 | -3,294 |
Total Fuel and Purchased Energy | 147,103 | 150,850 | 282,329 | 294,516 |
Operations and Maintenance | 91,621 | 95,143 | 185,057 | 185,043 |
Depreciation | 39,563 | 36,671 | 78,644 | 72,970 |
Amortization | 6,455 | 8,119 | 12,631 | 16,408 |
Taxes Other Than Income Taxes | 14,942 | 13,631 | 29,750 | 27,723 |
Total Operating Expenses | 299,684 | 304,414 | 588,411 | 596,660 |
Operating Income | 86,922 | 60,803 | 131,587 | 100,698 |
Other Income (Deductions) | ' | ' | ' | ' |
Interest Income | 169 | 19 | 249 | 28 |
Other Income | 2,538 | 1,734 | 4,680 | 3,502 |
Other Expense | -958 | -807 | -1,688 | -1,380 |
Appreciation in Fair Value of Investments | 624 | 94 | 879 | 1,133 |
Total Other Income (Deductions) | 2,373 | 1,040 | 4,120 | 3,283 |
Interest Expense | ' | ' | ' | ' |
Long-Term Debt | 19,167 | 17,700 | 37,055 | 35,954 |
Capital Leases | 3,925 | 6,249 | 7,846 | 12,498 |
Other Interest Expense | 307 | 346 | 790 | -47 |
Interest Capitalized | -1,295 | -745 | -2,318 | -1,420 |
Interest Expense | 22,104 | 23,550 | 43,373 | 46,985 |
Income Before Income Taxes | 67,191 | 38,293 | 92,334 | 56,996 |
Income Tax Expense | 24,837 | 3,675 | 34,505 | 11,033 |
Net Income | 42,354 | 34,618 | 57,829 | 45,963 |
Weighted-Average Shares of Common Stock Outstanding (000) | ' | ' | ' | ' |
Basic (in shares) | 41,781 | 41,598 | 41,759 | 41,569 |
Diluted (in shares) | 42,145 | 41,921 | 42,115 | 41,898 |
Earnings Per Share | ' | ' | ' | ' |
Basic (in dollars per share) | $1.01 | $0.83 | $1.38 | $1.11 |
Diluted (in dollars per share) | $1.01 | $0.83 | $1.37 | $1.10 |
Dividends Declared Per Share (usd per share) | $0.48 | $0.44 | $0.96 | $0.87 |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Operating Revenues | ' | ' | ' | ' |
Electric Retail Sales | 257,790 | 243,635 | 443,805 | 428,515 |
Electric Wholesale Sales | 32,555 | 29,542 | 74,639 | 63,940 |
Other Revenue | 31,273 | 31,086 | 58,687 | 59,559 |
Total Operating Revenues | 321,618 | 304,263 | 577,131 | 552,014 |
Operating Expenses | ' | ' | ' | ' |
Fuel | 68,334 | 84,553 | 135,964 | 165,351 |
Purchased Energy | 52,906 | 28,410 | 75,521 | 47,338 |
Transmission and Other PPFAC Recoverable Costs | 3,552 | 1,730 | 7,461 | 2,595 |
Increase (Decrease) to Reflect PPFAC/PGA Recovery Treatment | -13,061 | 5,274 | -14,791 | 2,914 |
Total Fuel and Purchased Energy | 111,731 | 119,967 | 204,155 | 218,198 |
Operations and Maintenance | 79,772 | 82,011 | 161,117 | 159,835 |
Depreciation | 31,080 | 28,861 | 61,891 | 57,418 |
Amortization | 7,377 | 9,052 | 14,476 | 18,275 |
Taxes Other Than Income Taxes | 12,005 | 10,939 | 23,840 | 22,108 |
Total Operating Expenses | 241,965 | 250,830 | 465,479 | 475,834 |
Operating Income | 79,653 | 53,433 | 111,652 | 76,180 |
Other Income (Deductions) | ' | ' | ' | ' |
Interest Income | 165 | 12 | 174 | 8 |
Other Income | 2,187 | 1,270 | 4,099 | 2,438 |
Other Expense | -2,694 | -2,472 | -4,809 | -4,717 |
Appreciation in Fair Value of Investments | 624 | 94 | 879 | 1,133 |
Total Other Income (Deductions) | 282 | -1,096 | 343 | -1,138 |
Interest Expense | ' | ' | ' | ' |
Long-Term Debt | 15,507 | 13,991 | 29,747 | 28,564 |
Capital Leases | 3,925 | 6,249 | 7,846 | 12,498 |
Other Interest Expense | 140 | 192 | 453 | -168 |
Interest Capitalized | -1,104 | -534 | -2,028 | -1,027 |
Interest Expense | 18,468 | 19,898 | 36,018 | 39,867 |
Income Before Income Taxes | 61,467 | 32,439 | 75,977 | 35,175 |
Income Tax Expense | 22,742 | 1,652 | 28,080 | 2,909 |
Net Income | $38,725 | $30,787 | $47,897 | $32,266 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net Income | $42,354 | $34,618 | $57,829 | $45,963 |
Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Net Changes in Fair Value of Cash Flow Hedges, net of income tax expense benefit | 517 | 933 | 1,010 | 1,544 |
SERP Benefit Amortization, net of income tax expense | 25 | 68 | 49 | 137 |
Total Other Comprehensive Income, Net of Tax | 542 | 1,001 | 1,059 | 1,681 |
Total Comprehensive Income | 42,896 | 35,619 | 58,888 | 47,644 |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Net Income | 38,725 | 30,787 | 47,897 | 32,266 |
Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Net Changes in Fair Value of Cash Flow Hedges, net of income tax expense benefit | 494 | 878 | 975 | 1,456 |
SERP Benefit Amortization, net of income tax expense | 25 | 68 | 49 | 137 |
Total Other Comprehensive Income, Net of Tax | 519 | 946 | 1,024 | 1,593 |
Total Comprehensive Income | $39,244 | $31,733 | $48,921 | $33,859 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax on Net Changes in Fair Value of Cash Flow Hedges | $335 | $610 | $691 | $1,009 |
Tax on Supplemental Executive Retirement Plan (SERP) Benefit Adjustments to Net Income | -15 | -43 | -30 | -85 |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Income Tax on Net Changes in Fair Value of Cash Flow Hedges | 321 | 574 | 667 | 952 |
Tax on Supplemental Executive Retirement Plan (SERP) Benefit Adjustments to Net Income | ($15) | ($43) | ($30) | ($85) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flows from Operating Activities | ' | ' |
Cash Receipts from Electric Retail Sales | $531,439 | $519,154 |
Cash Receipts from Electric Wholesale Sales | 89,741 | 82,273 |
Cash Receipts from Operating Springerville Units 3 & 4 | 47,099 | 49,974 |
Cash Receipts from Gas Retail Sales | 80,348 | 91,207 |
Cash Receipts from Gas Wholesale Sales | 2,287 | 3,494 |
Proceeds from Income Tax Refunds | 472 | 0 |
Interest Received | 7 | 516 |
Other Cash Receipts | 22,812 | 16,914 |
Purchased Energy Costs Paid | -152,982 | -135,775 |
Payment of Operations and Maintenance Costs | -138,692 | -121,272 |
Fuel Costs Paid | -135,128 | -140,185 |
Taxes Other Than Income Taxes Paid, Net of Amounts Capitalized | -86,695 | -90,554 |
Wages Paid, Net of Amounts Capitalized | -72,237 | -68,004 |
Interest Paid, Net of Amounts Capitalized | -31,446 | -34,662 |
Capital Lease Interest Paid | -15,888 | -18,630 |
Other Cash Payments | -3,380 | -6,798 |
Net Cash Flows—Operating Activities | 137,757 | 147,652 |
Cash Flows from Investing Activities | ' | ' |
Capital Expenditures | -186,037 | -155,685 |
Return of Investments in Springerville Lease Debt | 0 | 9,104 |
Other, net | -4,345 | -3,613 |
Net Cash Flows—Investing Activities | -190,382 | -150,194 |
Cash Flows from Financing Activities | ' | ' |
Proceeds from Borrowings Under Revolving Credit Facilities | 151,000 | 114,000 |
Repayments of Borrowings Under Revolving Credit Facilities | -129,000 | -48,000 |
Proceeds from Issuance of Long-Term Debt | 149,168 | 0 |
Payments of Capital Lease Obligations | -83,204 | -84,206 |
Common Stock Dividends Paid | -40,034 | -36,079 |
Payments of Financing Costs | -1,641 | -982 |
Proceeds from Stock Options Exercised | 595 | 0 |
Other, net | 543 | 3,584 |
Net Cash Provided by (Used in) Financing Activities | 47,427 | -51,683 |
Cash and Cash Equivalents, Period Increase (Decrease) | -5,198 | -54,225 |
Cash and Cash Equivalents, Beginning of Period | 74,878 | 123,918 |
Cash and Cash Equivalents, End of Period | 69,680 | 69,693 |
TUCSON ELECTRIC POWER COMPANY | ' | ' |
Cash Flows from Operating Activities | ' | ' |
Cash Receipts from Electric Retail Sales | 444,624 | 435,779 |
Cash Receipts from Electric Wholesale Sales | 86,087 | 75,803 |
Cash Receipts from Operating Springerville Units 3 & 4 | 47,099 | 49,974 |
Reimbursement of Affiliate Charges | 13,633 | 12,695 |
Cash Receipts from Gas Wholesale Sales | 46 | 3,145 |
Proceeds from Income Tax Refunds | 9 | 0 |
Interest Received | 5 | 509 |
Other Cash Receipts | 19,580 | 13,320 |
Payment of Operations and Maintenance Costs | -134,606 | -117,133 |
Fuel Costs Paid | -134,374 | -139,596 |
Taxes Other Than Income Taxes Paid, Net of Amounts Capitalized | -66,588 | -68,574 |
Wages Paid, Net of Amounts Capitalized | -60,845 | -57,483 |
Purchased Power Costs Paid | 59,088 | 40,949 |
Interest Paid, Net of Amounts Capitalized | -24,588 | -27,590 |
Capital Lease Interest Paid | -15,888 | -18,630 |
Other Cash Payments | -2,064 | -5,728 |
Net Cash Flows—Operating Activities | 113,042 | 115,542 |
Cash Flows from Investing Activities | ' | ' |
Capital Expenditures | -157,161 | -118,210 |
Return of Investments in Springerville Lease Debt | 0 | 9,104 |
Other, net | -3,460 | -3,470 |
Net Cash Flows—Investing Activities | -160,621 | -112,576 |
Cash Flows from Financing Activities | ' | ' |
Proceeds from Borrowings Under Revolving Credit Facilities | 105,000 | 78,000 |
Repayments of Borrowings Under Revolving Credit Facilities | -105,000 | -48,000 |
Proceeds from Issuance of Long-Term Debt | 149,168 | 0 |
Payments of Capital Lease Obligations | -83,204 | -84,206 |
Payments of Financing Costs | -1,641 | -982 |
Other, net | 656 | 596 |
Net Cash Provided by (Used in) Financing Activities | 64,979 | -54,592 |
Cash and Cash Equivalents, Period Increase (Decrease) | 17,400 | -51,626 |
Cash and Cash Equivalents, Beginning of Period | 25,335 | 79,743 |
Cash and Cash Equivalents, End of Period | $42,735 | $28,117 |
CONDENCED_CONSOLIDATED_BALANCE
CONDENCED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Utility Plant | ' | ' |
Plant in Service | $5,392,666 | $5,192,122 |
Utility Plant Under Capital Leases | 747,158 | 637,957 |
Construction Work in Progress | 186,249 | 201,959 |
Total Utility Plant | 6,326,073 | 6,032,038 |
Less Accumulated Depreciation and Amortization | -2,078,626 | -1,982,524 |
Less Accumulated Amortization of Capital Lease Assets | -525,327 | -514,677 |
Total Utility Plant—Net | 3,722,120 | 3,534,837 |
Investments And Other Property | ' | ' |
Investments in Lease Equity | 36,122 | 36,194 |
Other | 35,551 | 34,971 |
Total Investments and Other Property | 71,673 | 71,165 |
Current Assets | ' | ' |
Cash and Cash Equivalents | 69,680 | 74,878 |
Accounts Receivable—Customer | 114,276 | 104,596 |
Unbilled Accounts Receivable | 67,637 | 52,403 |
Allowance for Doubtful Accounts | -7,001 | -6,833 |
Materials and Supplies | 92,771 | 88,085 |
Deferred Income Taxes—Current | 86,401 | 66,906 |
Regulatory Assets—Current | 69,322 | 52,763 |
Fuel Inventory | 44,044 | 44,317 |
Derivative Instruments | 9,850 | 5,629 |
Other | 17,453 | 15,354 |
Total Current Assets | 564,433 | 498,098 |
Regulatory and Other Assets | ' | ' |
Regulatory Assets—Noncurrent | 162,263 | 150,584 |
Derivative Instruments | 1,528 | 1,180 |
Other Assets | 26,575 | 24,430 |
Total Regulatory and Other Assets | 190,366 | 176,194 |
Total Assets | 4,548,592 | 4,280,294 |
Capitalization | ' | ' |
Common Stock Equity | 1,149,578 | 1,130,784 |
Capital Lease Obligations | 69,938 | 131,370 |
Long-Term Debt | 1,677,323 | 1,507,070 |
Total Capitalization | 2,896,839 | 2,769,224 |
Current Liabilities | ' | ' |
Current Obligations Under Capital Leases | 272,939 | 186,056 |
Borrowings Under Revolving Credit Facilities | 23,000 | 22,000 |
Accounts Payable—Trade | 104,720 | 117,503 |
Regulatory Liabilities—Current | 54,384 | 53,935 |
Accrued Taxes Other than Income Taxes | 47,601 | 43,880 |
Customer Deposits | 28,066 | 30,671 |
Accrued Employee Expenses | 23,202 | 28,148 |
Accrued Interest | 29,637 | 27,786 |
Derivative Instruments | 6,435 | 7,534 |
Other | 22,536 | 17,775 |
Total Current Liabilities | 612,520 | 535,288 |
Deferred Credits and Other Liabilities | ' | ' |
Deferred Income Taxes—Noncurrent | 528,636 | 488,887 |
Regulatory Liabilities—Noncurrent | 326,388 | 302,482 |
Pension and Other Retiree Benefits | 90,984 | 90,923 |
Derivative Instruments | 5,976 | 7,100 |
Other | 87,249 | 86,390 |
Total Deferred Credits and Other Liabilities | 1,039,233 | 975,782 |
Commitments, Contingencies, and Environmental Matters | ' | ' |
Total Capitalization and Other Liabilities | 4,548,592 | 4,280,294 |
TUCSON ELECTRIC POWER COMPANY | ' | ' |
Utility Plant | ' | ' |
Plant in Service | 4,644,399 | 4,467,667 |
Utility Plant Under Capital Leases | 747,158 | 637,957 |
Construction Work in Progress | 169,459 | 180,485 |
Total Utility Plant | 5,561,016 | 5,286,109 |
Less Accumulated Depreciation and Amortization | -1,913,655 | -1,826,977 |
Less Accumulated Amortization of Capital Lease Assets | -525,327 | -514,677 |
Total Utility Plant—Net | 3,122,034 | 2,944,455 |
Investments And Other Property | ' | ' |
Investments in Lease Equity | 36,122 | 36,194 |
Other | 34,192 | 33,488 |
Total Investments and Other Property | 70,314 | 69,682 |
Current Assets | ' | ' |
Cash and Cash Equivalents | 42,735 | 25,335 |
Accounts Receivable—Customer | 96,513 | 80,211 |
Unbilled Accounts Receivable | 56,252 | 34,369 |
Allowance for Doubtful Accounts | -4,977 | -4,825 |
Accounts Receivable, Due from Affiliates | 2,818 | 6,064 |
Materials and Supplies | 79,409 | 75,200 |
Deferred Income Taxes—Current | 91,585 | 70,722 |
Regulatory Assets—Current | 59,091 | 42,555 |
Fuel Inventory | 43,754 | 44,027 |
Derivative Instruments | 4,289 | 2,137 |
Other | 14,864 | 12,923 |
Total Current Assets | 486,333 | 388,718 |
Regulatory and Other Assets | ' | ' |
Regulatory Assets—Noncurrent | 152,259 | 141,030 |
Derivative Instruments | 493 | 167 |
Other Assets | 21,093 | 19,233 |
Total Regulatory and Other Assets | 173,845 | 160,430 |
Total Assets | 3,852,526 | 3,563,285 |
Capitalization | ' | ' |
Common Stock Equity | 974,844 | 925,923 |
Capital Lease Obligations | 69,938 | 131,370 |
Long-Term Debt | 1,372,323 | 1,223,070 |
Total Capitalization | 2,417,105 | 2,280,363 |
Current Liabilities | ' | ' |
Current Obligations Under Capital Leases | 272,939 | 186,056 |
Accounts Payable—Trade | 89,162 | 88,556 |
Regulatory Liabilities—Current | 28,075 | 23,701 |
Accounts Payable—Due to Affiliates | 5,282 | 9,153 |
Accrued Taxes Other than Income Taxes | 39,732 | 34,485 |
Customer Deposits | 20,906 | 21,354 |
Accrued Employee Expenses | 19,726 | 24,454 |
Accrued Interest | 24,651 | 22,785 |
Derivative Instruments | 4,261 | 5,531 |
Other | 13,641 | 9,244 |
Total Current Liabilities | 518,375 | 425,319 |
Deferred Credits and Other Liabilities | ' | ' |
Deferred Income Taxes—Noncurrent | 464,983 | 428,103 |
Regulatory Liabilities—Noncurrent | 283,475 | 263,270 |
Pension and Other Retiree Benefits | 84,724 | 84,936 |
Derivative Instruments | 4,907 | 5,161 |
Other | 78,957 | 76,133 |
Total Deferred Credits and Other Liabilities | 917,046 | 857,603 |
Commitments, Contingencies, and Environmental Matters | ' | ' |
Total Capitalization and Other Liabilities | $3,852,526 | $3,563,285 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | TUCSON ELECTRIC POWER COMPANY | Common Shares Outstanding [Member] | Common Stock [Member] | Common Stock [Member] | Capital Stock Expense [Member] | Retained Earnings [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member] |
In Thousands, unless otherwise specified | USD ($) | USD ($) | USD ($) | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | USD ($) | TUCSON ELECTRIC POWER COMPANY | USD ($) | TUCSON ELECTRIC POWER COMPANY | |
USD ($) | USD ($) | USD ($) | USD ($) | |||||||
Balances at Dec. 31, 2013 | $1,130,784 | $925,923 | ' | $889,301 | $888,971 | ($6,357) | $247,532 | $49,185 | ($6,049) | ($5,876) |
Balances, shares at Dec. 31, 2013 | ' | ' | 41,538 | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | 57,829 | 47,897 | ' | ' | ' | ' | 57,829 | 47,897 | ' | ' |
Other Comprehensive Loss, net of tax | 1,059 | 1,024 | ' | ' | ' | ' | ' | ' | 1,059 | 1,024 |
Dividends Declared | -40,372 | ' | ' | ' | ' | ' | -40,372 | ' | ' | ' |
Shares Issued for Stock Options, shares | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' |
Shares Issued for Stock Options | 594 | ' | ' | 594 | ' | ' | ' | ' | ' | ' |
Shares Issued Under Performance Share Awards, shares | ' | ' | 101 | ' | ' | ' | ' | ' | ' | ' |
Shares Issued Under Performance Share Awards | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Share-based Compensation | -316 | ' | ' | -316 | ' | ' | ' | ' | ' | ' |
Balances at Jun. 30, 2014 | 1,149,578 | 974,844 | ' | 889,579 | 888,971 | -6,357 | 264,989 | 97,082 | -4,990 | -4,852 |
Balances, shares at Jun. 30, 2014 | ' | ' | 41,659 | ' | ' | ' | ' | ' | ' | ' |
Balances at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | 42,354 | 38,725 | ' | ' | ' | ' | ' | ' | ' | ' |
Other Comprehensive Loss, net of tax | 542 | 519 | ' | ' | ' | ' | ' | ' | ' | ' |
Balances at Jun. 30, 2014 | $1,149,578 | $974,844 | ' | ' | $888,971 | ($6,357) | ' | ' | ' | ' |
CONSOLIDATED_STATEMENT_OF_CHAN1
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | Jun. 30, 2014 |
Common Stock, Shares Authorized | 75,000,000 |
NATURE_OF_OPERATIONS_AND_FINAN
NATURE OF OPERATIONS AND FINANCIAL STATEMENT PRESENTATION | 6 Months Ended | |
Jun. 30, 2014 | ||
Text Block [Abstract] | ' | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
NATURE OF OPERATIONS AND FINANCIAL STATEMENT PRESENTATION | ||
UNS Energy Corporation (UNS Energy) is a holding company that conducts its business through three regulated public utilities: Tucson Electric Power Company (TEP); UNS Electric, Inc. (UNS Electric); and UNS Gas, Inc. (UNS Gas) (collectively Regulated Utilities). References to “we” and “our” are to UNS Energy and its subsidiaries, collectively. | ||
We prepared our condensed consolidated financial statements according to generally accepted accounting principles in the United States of America (GAAP) and the Securities and Exchange Commission's (SEC) interim reporting requirements. These condensed consolidated financial statements exclude some information and footnotes required by GAAP and the SEC for annual financial statement reporting. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes in our 2013 Annual Report on Form 10-K. | ||
The condensed consolidated financial statements are unaudited, but, in management's opinion, include all recurring adjustments necessary for a fair presentation of the results for the interim periods presented. Because weather and other factors cause seasonal fluctuations in sales, our quarterly results are not indicative of annual operating results. UNS Energy and TEP reclassified certain amounts in the financial statements to conform to current year presentation. | ||
REVISION OF PRIOR PERIOD BALANCE SHEETS | ||
UNS Energy and TEP revised their December 31, 2013 balance sheets to correct an error in the classification of capital lease obligations and related deferred income taxes. The correction increased current capital lease obligations and decreased noncurrent capital lease obligations by $18 million and increased current deferred tax assets and noncurrent deferred tax liabilities by $7 million. We do not believe the misclassification was material to the previously issued financial statements. | ||
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | ||
In 2014, we adopted accounting guidance that: | ||
• | requires an entity to recognize and disclose in the financial statements its obligation from a joint and several liability arrangement as the sum of the amount the entity agreed with its co-obligors that it will pay and any additional amount the entity expects to pay on behalf of its co-obligors. The adoption of this guidance did not have a material impact on our disclosures, financial condition, results of operations, or cash flows. | |
• | impacts the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Although adoption and prospective application of this guidance impacted how such items are classified on our balance sheets, such change was not material. Additionally, there were no material changes in our results of operations or cash flows. |
PENDING_MERGER_WITH_FORTIS
PENDING MERGER WITH FORTIS | 6 Months Ended | |
Jun. 30, 2014 | ||
Business Combinations [Abstract] | ' | |
PENDING MERGER WITH FORTIS INC. | ' | |
PENDING MERGER WITH FORTIS | ||
On December 11, 2013, UNS Energy announced that it had entered into an Agreement and Plan of Merger (Merger), subject to shareholder and required regulatory approvals, to be acquired by Fortis Inc. (Fortis) for $60.25 per share of Common Stock in cash. Following the Merger, UNS Energy will continue as a wholly owned subsidiary of Fortis. The Boards of Directors of each of UNS Energy and Fortis have approved the Merger. | ||
The following additional approvals have been received: | ||
• | In March 2014, UNS Energy's shareholders approved the Merger; | |
• | In April 2014, the Federal Energy Regulatory Commission (FERC) approved the Merger; | |
• | In May 2014, the Committee on Foreign Investment in the United States concluded its review determining there are no unresolved national security concerns with respect to the Merger; | |
• | In June 2014, the United States Federal Trade Commission granted UNS Energy's request for early termination of the waiting period with respect to the Merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; and | |
• | In July 2014, the Federal Communications Commission approved UNS Energy’s FCC license transfer of control applications with respect to the Merger. | |
The final regulatory approval necessary to complete the Merger is approval by the Arizona Corporation Commission (ACC). In May 2014, UNS Energy, Fortis, ACC Staff, the Residential Utility Consumer Office, and other parties to the Merger proceedings entered into a settlement (Settlement) in which the parties agree that the Merger is in the public interest and recommend approval by the ACC, subject to certain conditions. Those conditions include, but are not limited to, the following: | ||
• | UNS Energy shall provide credits on the Regulated Utilities retail customers' bills totaling $30 million over five years; $10 million in year one and $5 million annually in years two through five. The monthly bill credits will be applied each year from October through March. If the Merger closes by the end of September 2014, the bill credits will commence on October 1, 2014; | |
• | UNS Energy and the Regulated Utilities will adopt certain ring-fencing and corporate governance provisions; | |
• | Dividends paid from the Regulated Utilities to UNS Energy cannot exceed 60 percent of the Regulated Utilities’ respective annual net income for a period of five years or until such time that their respective equity capitalization reaches 50 percent of total capital (excluding any goodwill recorded) as accounted for in accordance with GAAP. The ratios used to determine the dividend restrictions will be calculated for each calendar year and reported to the ACC annually beginning on April 1, 2016. The dividend restrictions were contingent upon receiving necessary consents of the lenders in UNS Energy’s credit facility, which consents were obtained in June 2014; and | |
• | Fortis shall make an equity investment totaling $220 million through UNS Energy into the Regulated Utilities following closing of the Merger. However, if the Merger closes after September 30, 2014, the equity investment may be made into UNS Energy to retire debt. | |
The Settlement is subject to the review and approval of the ACC, which could approve, reject, or require modifications to the Settlement as a condition of approval of the Merger. Hearings before an ACC administrative law judge on the Settlement concluded on June 17, 2014. The Settlement requests that the ACC issue an order approving the Settlement no later than September 18, 2014. | ||
The completion of the Merger is also subject to the absence of any injunction, order, or other law prohibiting the Merger. | ||
If the Merger is approved by the ACC in September 2014 as requested by the parties to the Settlement Agreement, we expect the Merger to close by the end of September 2014. Upon completion of the Merger, UNS Energy expects to record approximately $19 million of merger-related expenses including investment banker fees, legal fees, and accelerated expenses for certain share-based compensation awards. TEP would record approximately $15 million as its allocated share of these merger-related expenses. See Note 9. |
REGULATORY_MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
REGULATORY MATTERS | ' |
REGULATORY MATTERS | |
The ACC and the FERC each regulate portions of the utility accounting practices and rates of the Regulated Utilities. | |
The ACC regulates rates charged to retail customers, the siting of generation and transmission facilities, the issuance of securities, transactions with affiliated parties, and other utility matters. The ACC also enacts other regulations and policies that can affect business decisions and accounting practices. The FERC regulates terms and prices of transmission services and wholesale electricity sales. The Merger with Fortis is subject to approval by the ACC. See Note 2. Additionally, the purchase of Gila River Generating Station Unit 3 (Gila River Unit 3) remains subject to FERC approval. See Note 7. | |
COST RECOVERY MECHANISMS | |
TEP Purchased Power and Fuel Adjustment Clause | |
In April 2014, the ACC approved a Purchased Power and Fuel Adjustment Clause (PPFAC) rate for TEP of 0.1 cents per kWh for the period May through September 2014 and 0.5 cents per kWh for the period October 2014 through March 2015. TEP's PPFAC rate was a credit of 0.14 cents per kWh for the period July 2013 through April 2014. | |
In September 2011, a fire at the underground mine providing coal to San Juan Generating Station (San Juan) caused interruptions to mining operations and resulted in increased fuel costs. The 2013 TEP Rate Order required TEP to defer incremental fuel costs of $10 million from recovery under the PPFAC pending final resolution of an insurance claim by the San Juan Coal Company and distribution of insurance proceeds to San Juan participants. At June 30, 2014, TEP has received insurance settlement proceeds of $8 million. The proceeds offset the deferred costs and are reflected in our cash flow statements as an other operating cash receipt. TEP expects to recover any remaining fuel costs, not reimbursed by insurance, through its PPFAC. | |
TEP Environmental Compliance Adjustor | |
The 2013 TEP Rate Order provided an Environmental Compliance Adjustor (ECA) to recover the return on and of qualified investments, to comply with environmental standards required by federal or other governmental agencies. The ECA rate of 0.0049 cents per kWh became effective on May 1, 2014. TEP expects to recognize ECA revenues of less than $1 million in 2014. | |
UNS Electric Transmission Cost Adjustor | |
The 2013 UNS Electric Rate Order provided a Transmission Cost Adjustor (TCA) that allows more timely recovery of transmission costs associated with serving retail customers. The TCA rate is adjusted annually based on information filed with the ACC each May. The TCA rate of 0.114 cents per kWh became effective in June 2014. | |
UNS Gas Purchased Gas Adjustor | |
In November of 2013, a Purchased Gas Adjustor (PGA) credit of 10 cents per therm became effective for UNS Gas. The credit expired in April 2014. | |
Energy Efficiency Standards | |
The Regulated Utilities are required to implement cost-effective Demand Side Management (DSM) programs to comply with the ACC's Energy Efficiency (EE) Standards. The EE Standards provide for a DSM surcharge to recover, from retail customers, the costs to implement DSM programs as well as a performance incentive. In the first half of 2014, TEP recorded a DSM performance incentive of $2 million that is included in Electric Retail Sales in the UNS Energy and TEP income statements. | |
Lost Fixed Cost Recovery Mechanism | |
The Lost Fixed Cost Recovery (LFCR) mechanism provides recovery of certain non-fuel costs that would go unrecovered due to lost retail kWh sales as a result of implementing ACC approved energy efficiency programs and distributed generation targets. During separate rate case proceedings in 2013, the ACC authorized LFCR mechanisms for TEP and UNS Electric, subject to a year-over-year cap of 1% of each company’s respective total retail revenues. | |
TEP and UNS Electric filed their first LFCR reports with the ACC in May 2014. TEP requested recovery of approximately $5 million and UNS Electric requested recovery of approximately $1 million. The LFCR rates are expected to go into effect in August 2014 for TEP and in September 2014 for UNS Electric. | |
TEP and UNS Electric recorded LFCR revenues of $6 million and $2 million, respectively, in the first six months of 2014 related to reductions in retail kWh sales due to energy efficiency programs and distributed generation implemented in 2013 and 2014. We recognize LFCR revenue when verifiable regardless of when the lost retail kWh sales occur. LFCR revenue is included in Electric Retail Sales in the income statements. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||||||||||||
We have three reportable segments regularly reviewed by our chief operating decision makers to evaluate performance and make operating decisions. | ||||||||||||||||||||||||
-1 | TEP, a regulated electric utility and our largest subsidiary | |||||||||||||||||||||||
-2 | UNS Electric, a regulated electric utility | |||||||||||||||||||||||
-3 | UNS Gas, a regulated gas distribution utility | |||||||||||||||||||||||
We disclose selected financial data for our reportable segments in the following tables: | ||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
TEP | UNS Electric | UNS Gas | Other (2) | Reconciling | UNS | |||||||||||||||||||
Adjustments | Energy | |||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||
Operating Revenues-External | $ | 318 | $ | 47 | $ | 22 | $ | — | $ | — | $ | 387 | ||||||||||||
Operating Revenues-Intersegment(1) | 4 | — | 1 | 4 | (9 | ) | — | |||||||||||||||||
Income Before Income Taxes | 61 | 6 | — | — | — | 67 | ||||||||||||||||||
Net Income | 39 | 4 | — | (1 | ) | — | 42 | |||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
Operating Revenues-External | $ | 300 | $ | 44 | $ | 21 | $ | — | $ | — | $ | 365 | ||||||||||||
Operating Revenues-Intersegment(1) | 4 | — | 1 | 4 | (9 | ) | — | |||||||||||||||||
Income Before Income Taxes | 32 | 6 | — | — | — | 38 | ||||||||||||||||||
Net Income | 31 | 4 | — | — | — | 35 | ||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
TEP | UNS Electric | UNS Gas | Other (2) | Reconciling | UNS | |||||||||||||||||||
Adjustments | Energy | |||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
Operating Revenues-External | $ | 569 | 87 | 64 | $ | — | $ | — | $ | 720 | ||||||||||||||
Operating Revenues-Intersegment (1) | 8 | 1 | 1 | 8 | (18 | ) | — | |||||||||||||||||
Income Before Income Taxes | 76 | 9 | 8 | (1 | ) | — | 92 | |||||||||||||||||
Net Income | 48 | 6 | 5 | (1 | ) | — | 58 | |||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
Operating Revenues-External | $ | 543 | $ | 80 | $ | 73 | $ | 1 | $ | — | $ | 697 | ||||||||||||
Operating Revenues-Intersegment (1) | 9 | 1 | 1 | 8 | (19 | ) | — | |||||||||||||||||
Income Before Income Taxes | 35 | 9 | 13 | — | — | 57 | ||||||||||||||||||
Net Income | 32 | 6 | 8 | — | — | 46 | ||||||||||||||||||
(1) | Operating Revenues-Intersegment includes common costs (system, facilities, etc.) allocated to affiliates on a cost-causative basis and recorded as revenue by TEP, sales of power between TEP and UNS Electric at third-party market prices, control area services provided by TEP to UNS Electric based on a FERC-approved tariff, sales of gas by UNS Gas at third-party market prices for use in UNS Electric's generating facilities, and supplemental workforce charges (primarily meter reading services) provided to the utilities by an unregulated affiliate. | |||||||||||||||||||||||
(2) | Other includes the UNS Energy and UES holding companies, Millennium, and UED. |
DEBT_CREDIT_FACILITIES_AND_CAP
DEBT, CREDIT FACILITIES, AND CAPITAL LEASE OBLIGATIONS | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
DEBT, CREDIT FACILITIES, AND CAPITAL LEASE OBLIGATIONS | ' |
DEBT AND CAPITAL LEASE OBLIGATIONS | |
We summarize below the significant changes to our debt and capital lease obligations from those reported in our 2013 Annual Report on Form 10-K. | |
TEP SPRINGERVILLE COAL HANDLING FACILITIES CAPITAL LEASE PURCHASE COMMITMENT | |
In April 2014, TEP notified the owner participants and their lessors that TEP has elected to purchase their undivided ownership interests in the Springerville Coal Handling Facilities at the fixed purchase price of $120 million upon the expiration of the lease term in April 2015. Due to TEP’s purchase commitment, TEP recorded, in April of 2014, an increase to both Utility Plant Under Capital Leases and Current Obligations Under Capital Leases on its balance sheet in the amount of $109 million, which represented the present value of the total purchase commitment. | |
TEP previously agreed with Tri-State Generation and Transmission Association, Inc. (Tri-State), the lessee of Springerville Unit 3, and Salt River Project Agricultural Improvement and Power District (SRP), the owner of Springerville Unit 4, that if the Springerville Coal Handling Facilities Leases were not renewed, TEP would exercise the purchase option under those contracts. Upon TEP's purchase, SRP is obligated to buy a portion of the Springerville Coal Handling Facilities from TEP for approximately $24 million, and Tri-State is obligated to either 1) buy a portion of the facilities for approximately $24 million or 2) continue to make payments to TEP for the use of the facilities. No amounts have been recorded for these commitments from SRP and Tri-State at June 30, 2014. | |
2014 TEP UNSECURED NOTES ISSUED | |
In March 2014, TEP issued $150 million of 5.0% unsecured notes due March 2044. TEP may call the debt prior to September 15, 2043, with a make-whole premium plus accrued interest. After September 15, 2043, TEP may call the debt at par plus accrued interest. TEP used the net proceeds to repay approximately $90 million on the revolving credit facility, with the remaining proceeds to be applied to general corporate purposes. The unsecured notes contain a limitation on the amount of secured debt that TEP may have outstanding. | |
TEP CREDIT AGREEMENT | |
The TEP Credit Agreement consists of a $200 million revolving credit, revolving LOC facility and an $82 million LOC facility to support tax-exempt bonds. As of June 30, 2014, there is $184 million available under the revolving credit facility. The TEP Credit Agreement expires in November 2016. As of July 18, 2014, TEP had $134 million available under its revolving credit facility. | |
TEP provided, in the second quarter of 2014, a LOC for $15 million to the seller of Gila River Unit 3 to satisfy a condition of the purchase agreement. TEP's borrowing capacity under the TEP Credit Agreement is reduced by $15 million until the Gila River transaction closes and the LOC is terminated. See Note 7. | |
COVENANT COMPLIANCE | |
At June 30, 2014, we were in compliance with the terms of our loan and credit agreements. |
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES, AND ENVIRONMENTAL MATTERS | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||||||||||||||
COMMITMENTS, CONTINGENCIES, AND ENVIRONMENTAL MATTERS | ' | |||||||||||||||||||||||||||
COMMITMENTS, CONTINGENCIES, AND ENVIRONMENTAL MATTERS | ||||||||||||||||||||||||||||
COMMITMENTS | ||||||||||||||||||||||||||||
UNS Energy's commitments represent the obligations of TEP, UNS Electric, and UNS Gas. In addition to those reported in our 2013 Annual Report on Form 10-K, UNS Energy entered into the following long-term commitments through June 30, 2014: | ||||||||||||||||||||||||||||
UNS Energy Purchase Commitments | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||
Fuel, including Transportation | $ | — | $ | 9 | $ | 9 | $ | 9 | $ | 8 | $ | 8 | $ | 43 | ||||||||||||||
Purchased Power | — | 23 | — | — | — | — | 23 | |||||||||||||||||||||
Capital Lease Obligations(1) | — | 120 | — | — | — | — | 120 | |||||||||||||||||||||
Total Purchase Commitments | $ | — | $ | 152 | $ | 9 | $ | 9 | $ | 8 | $ | 8 | $ | 186 | ||||||||||||||
TEP entered into the following long-term commitments: | ||||||||||||||||||||||||||||
TEP Purchase Commitments | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||
Fuel, Including Transportation | $ | — | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 40 | ||||||||||||||
Purchased Power | — | 15 | — | — | — | — | 15 | |||||||||||||||||||||
Capital Lease Obligations(1) | — | 120 | — | — | — | — | 120 | |||||||||||||||||||||
Total Purchase Commitments | $ | — | $ | 143 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 175 | ||||||||||||||
(1) | In April 2014, TEP entered into agreements to purchase certain Springerville Coal Handling Facilities leased interests. See Note 5. | |||||||||||||||||||||||||||
UNS ENERGY CONTINGENCIES | ||||||||||||||||||||||||||||
In May 2014, UNS Energy, Fortis, ACC Staff, the Residential Utility Consumer Office, and other parties to the Merger proceedings entered into a Settlement in which the Regulated Utilities agreed, contingent upon completion of the Merger, to provide credits on retail customers' bills totaling $30 million over five years. See Note 2. | ||||||||||||||||||||||||||||
TEP CONTINGENCIES | ||||||||||||||||||||||||||||
Planned Purchase of Gas-Fired Generation Facility | ||||||||||||||||||||||||||||
In 2013, TEP and UNS Electric entered into an agreement to purchase a gas-fired generation facility. See Note 7. | ||||||||||||||||||||||||||||
Claim Related to San Juan Generating Station | ||||||||||||||||||||||||||||
San Juan Coal Company (SJCC) operates an underground coal mine in an area where certain gas producers have oil and gas leases with the federal government, the State of New Mexico, and private parties. These gas producers allege that SJCC’s underground coal mine interferes with their operations, reducing the amount of natural gas they can recover. SJCC compensated certain gas producers for any remaining production from wells deemed close enough to the mine to warrant plugging and abandoning them. These settlements, however, do not resolve all potential claims by gas producers in the area. TEP owns 50% of Units 1 and 2 at San Juan Generating Station (San Juan), which represents approximately 20% of the total generation capacity at San Juan, and is responsible for its share of any settlements. TEP cannot estimate the impact of any future claims by these gas producers on the cost of coal at San Juan. | ||||||||||||||||||||||||||||
In August 2013, the Bureau of Land Management (BLM) proposed regulations that, among other things, redefine the term “underground mine” to exclude high-wall mining operations and impose a higher surface mine coal royalty on high-wall mining. SJCC utilized high-wall mining techniques at its surface mines prior to beginning underground mining operations in January 2003. If the proposed regulations become effective, SJCC may be subject to additional royalties on coal delivered to San Juan between August 2000 and January 2003 totaling approximately $5 million of which TEP’s proportionate share would approximate $1 million. TEP cannot predict the final outcome of the BLM’s proposed regulations. | ||||||||||||||||||||||||||||
Claims Related to Four Corners Generating Station | ||||||||||||||||||||||||||||
In October 2011, EarthJustice, on behalf of several environmental organizations, filed a lawsuit in the United States District Court for the District of New Mexico against Arizona Public Service Company (APS) and the other Four Corners Generating Station (Four Corners) participants alleging violations of the Prevention of Significant Deterioration (PSD) provisions of the Clean Air Act at Four Corners. In January 2012, EarthJustice amended their complaint alleging violations of New Source Performance Standards resulting from equipment replacements at Four Corners. Among other things, the plaintiffs seek to have the court issue an order to cease operations at Four Corners until any required PSD permits are issued and order the payment of civil penalties, including a beneficial mitigation project. In April 2012, APS filed motions to dismiss with the court for all claims asserted by EarthJustice in the amended complaint. The joint participants have agreed to have the matter stayed until August 2014 in furtherance of settlement talks. | ||||||||||||||||||||||||||||
TEP owns 7% of Four Corners Units 4 and 5 and is liable for its share of any resulting liabilities. TEP cannot predict the final outcome of the claims relating to Four Corners, and, due to the general and non-specific nature of the claims and the indeterminate scope and nature of the injunctive relief sought for this claim, TEP cannot determine estimates of the range of loss at this time. TEP accrued estimated losses of less than $1 million in 2011 for this claim based on its share of a settlement offer to resolve the claim. | ||||||||||||||||||||||||||||
In May 2013, the New Mexico Taxation and Revenue Department issued a notice of assessment for coal severance tax, penalties, and interest totaling $30 million to the coal supplier at Four Corners. In December 2013, the coal supplier and Four Corners’ operating agent filed a claim contesting the validity of the assessment on behalf of the participants in Four Corners, who will be liable for their share of any resulting liabilities. TEP’s share of the assessment based on its ownership of Four Corners is approximately $1 million. The New Mexico Taxation and Revenue Department and APS started settlement negotiations in July 2014. TEP cannot predict the outcome or timing of resolution of this claim. | ||||||||||||||||||||||||||||
Mine Closure Reclamation at Generating Stations Not Operated by TEP | ||||||||||||||||||||||||||||
TEP pays ongoing reclamation costs related to coal mines that supply generating stations in which TEP has an ownership interest but does not operate. TEP is liable for a portion of final reclamation costs upon closure of the mines servicing Navajo, San Juan, and Four Corners. TEP’s share of reclamation costs at all three mines is expected to be $44 million upon expiration of the coal supply agreements, which expire between 2017 and 2031. The reclamation liability (present value of future liability) recorded was $20 million at June 30, 2014 and $18 million at December 31, 2013. | ||||||||||||||||||||||||||||
Amounts recorded for final reclamation are subject to various assumptions, such as estimations of reclamation costs, the dates when final reclamation will occur, and the credit-adjusted risk-free interest rate to be used to discount future liabilities. As these assumptions change, TEP will prospectively adjust the expense amounts for final reclamation over the remaining coal supply agreements’ terms. TEP does not believe that recognition of its final reclamation obligations will be material to TEP in any single year because recognition will occur over the remaining terms of its coal supply agreements. | ||||||||||||||||||||||||||||
TEP’s PPFAC allows us to pass through most fuel costs, including final reclamation costs, to customers. Therefore, TEP classifies these costs as a regulatory asset by increasing the regulatory asset and the reclamation liability over the remaining life of the coal supply agreements and recovers the regulatory asset through the PPFAC as final mine reclamation costs are paid to the coal suppliers. | ||||||||||||||||||||||||||||
Discontinued Transmission Project | ||||||||||||||||||||||||||||
TEP and UNS Electric had initiated a project to jointly construct a 60-mile transmission line from Tucson, Arizona to Nogales, Arizona in response to an order by the ACC to UNS Electric to improve the reliability of electric service in Nogales. TEP and UNS Electric will not proceed with the project based on the cost of the proposed 345-kV line, the difficulty in reaching agreement with the United States Forest Service on a path for the line, and concurrence by the ACC of recent transmission plans filed by TEP and UNS Electric supporting elimination of this project. TEP and UNS Electric plan to keep the path approved in the line siting matter in contemplation of using a greater part of the route to serve future customers and to address reliability needs. As part of the 2013 TEP Rate Order, TEP agreed to seek recovery of the project costs from FERC before seeking rate recovery from the ACC. In 2012, TEP wrote off $5 million of the capitalized costs believed not probable of recovery and recorded a regulatory asset of $5 million for the balance deemed probable of recovery. | ||||||||||||||||||||||||||||
Performance Guarantees | ||||||||||||||||||||||||||||
The participants in each of the remote generating stations in which TEP participates, including TEP, have guaranteed certain performance obligations of the other participants. Specifically, in the event of payment default of a participant, the non-defaulting participants have agreed to bear a proportionate share of expenses otherwise payable by the defaulting participant. In exchange, the non-defaulting participants are entitled to receive their proportionate share of the generating capacity of the defaulting participants. As of June 30, 2014, there have been no such payment defaults under any of the remote generating station agreements. TEP's joint participation agreements expire in 2016 through 2046. | ||||||||||||||||||||||||||||
UNS ELECTRIC CONTINGENCIES | ||||||||||||||||||||||||||||
Planned Purchase of Gas-Fired Generation Facility | ||||||||||||||||||||||||||||
In 2013, TEP and UNS Electric entered into an agreement to purchase a gas-fired generation facility. See Note 7. | ||||||||||||||||||||||||||||
ENVIRONMENTAL MATTERS | ||||||||||||||||||||||||||||
Environmental Regulation | ||||||||||||||||||||||||||||
The Environmental Protection Agency (EPA) limits the amount of sulfur dioxide (SO2), nitrogen oxide (NOx), particulate matter, mercury and other emissions released into the atmosphere by power plants. TEP may incur added costs to comply with future changes in federal and state environmental laws, regulations, and permit requirements at its power plants. Complying with these changes may reduce operating efficiency. TEP expects to recover the cost of environmental compliance from its ratepayers. | ||||||||||||||||||||||||||||
Hazardous Air Pollutant Requirements | ||||||||||||||||||||||||||||
In February 2012, the EPA issued final rules for the control of mercury emissions and other hazardous air pollutants from power plants. Based on the EPA's final Mercury and Air Toxics (MATS) rules, additional emission control equipment will be required by April 2015. TEP has received an extension until April 2016 to comply with the MATS rules at Springerville. The operator of Navajo has also received an extension until April 2016. TEP's share of the estimated costs to comply with the MATS rules include the following: | ||||||||||||||||||||||||||||
Estimated Mercury Emissions Control Costs: | Navajo | Four Corners | Springerville(1) | |||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||
Capital Expenditures | $ | 1 | $ | 1 | $ | 5 | ||||||||||||||||||||||
Annual O&M Expenses | 1 | 1 | 1 | |||||||||||||||||||||||||
-1 | Total capital expenditures and annual O&M expenses represent amounts for both Springerville Units 1 & 2, with estimated costs split equally between the two units. TEP will own 49.5% of Springerville Unit 1 upon close of the lease option purchases in January 2015; after the completion of such purchases, third party owners will be responsible for 50.5% of environmental costs attributable to Springerville Unit 1. TEP will continue to be responsible for 100% of environmental costs attributable to Springerville Unit 2. | |||||||||||||||||||||||||||
TEP expects Sundt and San Juan's current emission controls to be adequate to comply with the EPA's MATS rules. | ||||||||||||||||||||||||||||
Regional Haze Rules | ||||||||||||||||||||||||||||
The EPA's Regional Haze Rules require emission controls known as Best Available Retrofit Technology (BART) for certain industrial facilities emitting air pollutants that reduce visibility in national parks and wilderness areas. The rules call for all states to establish goals and emission reduction strategies for improving visibility. States must submit these goals and strategies to the EPA for approval. Because Navajo and Four Corners are located on the Navajo Indian Reservation, they are not subject to state oversight; the EPA oversees regional haze planning for these power plants. | ||||||||||||||||||||||||||||
In the western U.S., Regional Haze BART determinations have focused on controls for NOx, often resulting in a requirement to install selective catalytic reduction (SCR). Complying with the EPA’s BART rules, and with other future environmental rules, may make it economically impractical to continue operating the Navajo, San Juan, and Four Corners power plants or for individual owners to continue to participate in these power plants. BART provisions of Regional Haze Rules requiring emission control upgrades do not apply to Springerville because the BART rules apply to plants built prior to Springerville. TEP cannot predict the ultimate outcome of these matters. | ||||||||||||||||||||||||||||
TEP's estimated costs involved in meeting these rules are: | ||||||||||||||||||||||||||||
Estimated NOx Emissions Control Costs: | Navajo (1) | San Juan (2) | Four Corners (3) | Sundt (4) | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||
Capital Expenditures | $ | 42 | $ | 35 | $ | 35 | $ | 12 | ||||||||||||||||||||
Annual O&M Expenses | 1 | 1 | 2 | 6-May | ||||||||||||||||||||||||
-1 | The EPA is considering a better-than-BART plan wherein: one unit at Navajo will be shut down by 2020; SCR (or the equivalent) will be installed on the remaining two units by 2030; and conventional coal-fired generation will cease by December 2044. TEP expects the EPA to reach a decision in 2014. In addition, the installation of SCR technology could increase particulates which may require that baghouses be installed. TEP owns 7.5% of Navajo. TEP's share of the capital cost of baghouses in addition to the SCR costs reflected in the table above is approximately $43 million with O&M on the baghouses expected to be less than $1 million per year. | |||||||||||||||||||||||||||
-2 | The Federal Implementation Plan (FIP) for San Juan requires SCRs for which TEP estimates its share of capital costs will be $180-$200 million with annual O&M of $6 million. As part of a proposal for an alternative, Public Service Company of New Mexico (PNM), the State of New Mexico, and the EPA signed a non-binding agreement in which PNM agreed to close Units 2 and 3 by December 2017 and install selective non-catalytic reduction (SNCR) on Units 1 and 4 by January 2016 or later depending on the timing of EPA approvals. Estimated costs for SNCR are reflected in the table above. The State of New Mexico has submitted this plan to the EPA and the EPA has proposed to approve the alternative state plan which would replace the existing FIP. TEP expects the EPA will reach a final decision in 2014. TEP owns 50% of San Juan Unit 2. At June 30, 2014, the net book value of TEP's share in San Juan Unit 2 was $112 million. If Unit 2 is retired early, TEP expects to request ACC approval to recover, over a reasonable time period, all costs associated with the early closure of the unit. | |||||||||||||||||||||||||||
-3 | In December 2013, APS, on behalf of the co-owners of Four Corners, notified the EPA that they have chosen an alternative BART compliance strategy; as a result, APS closed Units 1, 2, and 3 in December 2013 and has agreed to the installation of SCR on Units 4 & 5 by July 2018. TEP owns 7% of Four Corners Units 4 and 5. | |||||||||||||||||||||||||||
(4) In June 2014, the EPA issued a final rule that would require TEP to either (i) install SNCR and dry sorbent injection technology on Unit 4 by mid-2017 or (ii) eliminate the use of coal by the end of 2017 as a better-than-BART alternative. TEP is required to notify the EPA of its decision by March 2017. At June 30, 2014, the net book value of the Sundt coal handling facilities was $27 million. If the coal handling facilities are retired early, TEP expects to request ACC approval to recover, over a reasonable time period, all the remaining costs of the coal handling facilities. |
PLANNED_PURCHASE_OF_GASFIRED_G
PLANNED PURCHASE OF GAS-FIRED GENERATION FACILITY | 6 Months Ended |
Jun. 30, 2014 | |
Other Commitments [Abstract] | ' |
OTHER COMMITMENTS | ' |
PLANNED PURCHASE OF GAS-FIRED GENERATION FACILITY | |
In December 2013, TEP and UNS Electric entered into a purchase agreement with a subsidiary of Entegra to purchase Gila River Unit 3 for $219 million, subject to certain closing adjustments. Gila River Unit 3, a gas-fired combined cycle unit with a nominal capacity rating of 550 MW, is located in Gila Bend, Arizona. TEP expects to purchase a 75% undivided interest in Gila River Unit 3 (413 MW) for approximately $164 million, and UNS Electric expects to purchase the remaining 25% undivided interest (137 MW) for approximately $55 million. TEP and UNS Electric expect the transaction to close in December 2014, subject to FERC approval and other closing conditions. | |
In December 2013, UNS Electric filed an application for an accounting order with the ACC requesting authorization for UNS Electric to defer for future recovery specific non-fuel operating costs associated with Gila River Unit 3. The application is still pending before the ACC. | |
In June 2014, TEP provided a letter of credit (LOC) for $15 million to the seller of Gila River Unit 3 to satisfy a condition of the purchase agreement. The seller is entitled to draw upon the LOC and apply such amount as liquidated damages if it has validly terminated the purchase agreement as a result of misrepresentations by TEP and UNS Electric or the failure of TEP and UNS Electric to close the transaction when the closing conditions have been satisfied. Upon the close of the transaction, the LOC will be canceled. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||||||
EMPLOYEE BENEFIT PLANS | ||||||||||||||||
UNS Energy’s net periodic benefit plan cost, comprised primarily of TEP's cost, includes the following components: | ||||||||||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||
Three Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Millions of Dollars | ||||||||||||||||
Service Cost | $ | 2 | $ | 3 | $ | 1 | $ | 1 | ||||||||
Interest Cost | 5 | 4 | — | 1 | ||||||||||||
Expected Return on Plan Assets | (5 | ) | (5 | ) | — | — | ||||||||||
Actuarial Loss Amortization | 1 | 2 | — | — | ||||||||||||
Net Periodic Benefit Cost | $ | 3 | $ | 4 | $ | 1 | $ | 2 | ||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Millions of Dollars | ||||||||||||||||
Service Cost | $ | 5 | $ | 6 | $ | 2 | $ | 2 | ||||||||
Interest Cost | 9 | 8 | 1 | 1 | ||||||||||||
Expected Return on Plan Assets | (11 | ) | (10 | ) | — | — | ||||||||||
Actuarial Loss Amortization | 2 | 4 | — | — | ||||||||||||
Net Periodic Benefit Cost | $ | 5 | $ | 8 | $ | 3 | $ | 3 | ||||||||
SHAREBASED_COMPENSATION_PLANS
SHARE-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
SHARE-BASED COMPENSATION PLANS | ' |
SHARE-BASED COMPENSATION PLANS | |
RESTRICTED STOCK UNITS | |
In May 2014, the UNS Energy Compensation Committee (Compensation Committee) granted 7,486 restricted stock units to non-employee directors at a grant date fair value, based on the grant date closing share price, of $60.11 per share. We recognize compensation expense equal to the fair value on the grant date over the one-year vesting period. We issue UNS Energy Common Stock (Common Stock) for the vested restricted stock units at the time elected by each of the non-employee directors based on certain eligibility requirements. These restricted stock units accrue dividend equivalents during and subsequent to the vesting period, which are distributed in shares of Common Stock at the same time as the related restricted stock units. | |
In February 2014, the Compensation Committee granted 16,910 restricted stock units to certain management employees at a grant date fair value, based on the grant date closing share price, of $60.39 per share. The restricted stock units vest on the third anniversary of grant and are distributed in shares of Common Stock upon vesting. We recognize compensation expense equal to the fair value on the grant date over the vesting period. These restricted stock units accrue dividend equivalents during the vesting period, which are distributed in shares of Common Stock upon vesting. | |
PERFORMANCE SHARES | |
In February 2014, the Compensation Committee granted 33,820 performance share awards to certain management employees. Half of the performance share awards had a grant date fair value, based on a Monte Carlo simulation, of $57.47 per share. Those awards will be paid out in Common Stock based on UNS Energy’s compound annualized total shareholder return relative to the companies included in the Edison Electric Institute Utility Index for the three-year performance period ended December 31, 2016. We recognize compensation expense equal to the fair value on the grant date over the vesting period if the requisite service period is fulfilled, whether or not the threshold is achieved. The remaining half had a grant date fair value, based on the grant date closing share price, of $60.39 per share and will be paid out in Common Stock based on cumulative net income for the three-year performance period ended December 31, 2016. We recognize compensation expense equal to the fair value on the grant date over the requisite service period only for the awards that ultimately vest. | |
The performance shares vest based on the achievement of these goals by the end of the three-year performance period; any unearned awards are forfeited. Performance shares accrue dividend equivalents during the performance period, which are paid upon vesting. | |
SHARE-BASED COMPENSATION EXPENSE | |
UNS Energy and TEP recorded share-based compensation expense of less than $1 million for the three months ended June 30, 2014 and June 30, 2013. For the six months ended June 30, 2014, UNS Energy recorded share-based compensation expense of $2 million, $1 million of which related to TEP. For the six months ended June 30, 2013, UNS Energy and TEP recorded share-based compensation expense of $1 million. | |
At June 30, 2014, the total unrecognized compensation cost related to non-vested share-based compensation was $5 million, of which $4 million are allocable to TEP, which will be recorded as compensation expense over the remaining vesting periods through February 2017. The completion of the Merger would result in accelerated vesting and expense recognition for these awards. See Note 2. At June 30, 2014, less than 0.5 million shares were awarded but not yet issued, including target performance shares, under the share-based compensation plans. |
UNS_ENERGY_EARNINGS_PER_SHARE
UNS ENERGY EARNINGS PER SHARE | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
UNS ENERGY EARNINGS PER SHARE | ' | |||||||||||||||
UNS ENERGY EARNINGS PER SHARE | ||||||||||||||||
We compute basic Earnings Per Share (EPS) by dividing Net Income by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could result if outstanding stock options or share-based compensation awards were exercised or converted into Common Stock. We excluded anti-dilutive contingently issuable shares from the calculation of diluted EPS. | ||||||||||||||||
The following table illustrates the effect of dilutive securities on net income and weighted average Common Stock outstanding: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Thousands of Dollars | ||||||||||||||||
Numerator: Net Income | $ | 42,354 | $ | 34,618 | $ | 57,829 | $ | 45,963 | ||||||||
Thousands of Shares | ||||||||||||||||
Denominator: | ||||||||||||||||
Weighted Average Shares of Common Stock Outstanding: | ||||||||||||||||
Common Shares Issued | 41,659 | 41,427 | 41,639 | 41,404 | ||||||||||||
Fully Vested Deferred Stock Units | 122 | 171 | 120 | 165 | ||||||||||||
Total Weighted Average Common Stock Outstanding — Basic | 41,781 | 41,598 | 41,759 | 41,569 | ||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||
Options and Stock Issuable Under Share-Based Compensation Plans | 364 | 323 | 356 | 329 | ||||||||||||
Total Weighted Average Common Stock Outstanding — Diluted | 42,145 | 41,921 | 42,115 | 41,898 | ||||||||||||
For the six months ended June 30, 2013, we excluded 12,000 contingently issuable shares from our diluted EPS computation as their effect would be anti-dilutive. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Text Block [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
A reconciliation of Net Income to Net Cash Flows from Operating Activities follows: | ||||||||
UNS Energy | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Thousands of Dollars | ||||||||
Net Income | $ | 57,829 | $ | 45,963 | ||||
Adjustments to Reconcile Net Income | ||||||||
To Net Cash Flows from Operating Activities | ||||||||
Depreciation Expense | 78,644 | 72,970 | ||||||
Amortization Expense | 12,631 | 16,408 | ||||||
Depreciation and Amortization Recorded to Fuel and O&M Expense | 3,977 | 3,516 | ||||||
Amortization of Deferred Debt-Related Costs included in Interest Expense | 1,584 | 1,515 | ||||||
Provision for Retail Customer Bad Debts | 1,194 | 936 | ||||||
Use of Renewable Energy Credits for Compliance | 11,313 | 8,106 | ||||||
Deferred Income Taxes | 36,320 | 36,644 | ||||||
Investment Tax Credit Basis Adjustment - Creation of Regulatory Asset | — | (11,039 | ) | |||||
Pension and Retiree Expense | 7,884 | 11,391 | ||||||
Pension and Retiree Funding | (5,974 | ) | (8,924 | ) | ||||
Share-Based Compensation Expense | 1,859 | 1,390 | ||||||
Allowance for Equity Funds Used During Construction | (4,038 | ) | (2,463 | ) | ||||
LFCR Revenue | (7,654 | ) | — | |||||
Decrease to Reflect PPFAC/PGA Recovery | (21,437 | ) | (3,294 | ) | ||||
PPFAC Reduction - 2013 TEP Rate Order | — | 3,000 | ||||||
Changes in Assets and Liabilities which Provided (Used) | ||||||||
Cash Exclusive of Changes Shown Separately | ||||||||
Accounts Receivable | (22,766 | ) | (20,706 | ) | ||||
Materials and Fuel Inventory | (4,413 | ) | 8,777 | |||||
Accounts Payable | (5,875 | ) | (9,576 | ) | ||||
Income Taxes | (88 | ) | (15,980 | ) | ||||
Interest Accrued | 1,305 | (6,885 | ) | |||||
Taxes Other Than Income Taxes | 3,721 | 490 | ||||||
Other | (8,259 | ) | 15,413 | |||||
Net Cash Flows – Operating Activities | $ | 137,757 | $ | 147,652 | ||||
TEP | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Thousands of Dollars | ||||||||
Net Income | $ | 47,897 | $ | 32,266 | ||||
Adjustments to Reconcile Net Income | ||||||||
To Net Cash Flows from Operating Activities | ||||||||
Depreciation Expense | 61,891 | 57,418 | ||||||
Amortization Expense | 14,476 | 18,275 | ||||||
Depreciation and Amortization Recorded to Fuel and O&M Expense | 3,406 | 2,987 | ||||||
Amortization of Deferred Debt-Related Costs Included in Interest Expense | 1,285 | 1,216 | ||||||
Provision for Retail Customer Bad Debts | 833 | 711 | ||||||
Use of Renewable Energy Credits for Compliance | 9,884 | 7,414 | ||||||
Deferred Income Taxes | 29,641 | 24,883 | ||||||
Investment Tax Credit Basis Adjustment - Creation of Regulatory Asset | — | (10,751 | ) | |||||
Pension and Retiree Expense | 6,824 | 9,939 | ||||||
Pension and Retiree Funding | (5,522 | ) | (8,493 | ) | ||||
Share-Based Compensation Expense | 1,496 | 1,108 | ||||||
Allowance for Equity Funds Used During Construction | (3,524 | ) | (1,763 | ) | ||||
LFCR Revenue | (6,121 | ) | — | |||||
Increase (Decrease) to Reflect PPFAC Recovery | (14,791 | ) | 2,914 | |||||
PPFAC Reduction - 2013 TEP Rate Order | — | 3,000 | ||||||
Changes in Assets and Liabilities which Provided (Used) | ||||||||
Cash Exclusive of Changes Shown Separately | ||||||||
Accounts Receivable | (35,498 | ) | (30,452 | ) | ||||
Materials and Fuel Inventory | (3,936 | ) | 8,923 | |||||
Accounts Payable | 6,019 | (11 | ) | |||||
Income Taxes | (6 | ) | (10,798 | ) | ||||
Interest Accrued | 1,320 | (6,886 | ) | |||||
Taxes Other Than Income Taxes | 5,247 | 2,295 | ||||||
Other | (7,779 | ) | 11,347 | |||||
Net Cash Flows – Operating Activities | $ | 113,042 | $ | 115,542 | ||||
NON-CASH TRANSACTIONS | ||||||||
In April 2014, TEP recorded an increase of $109 million to both Utility Plant Under Capital Leases and Current Obligations Under Capital Leases due to TEP's commitment to purchase lease interests in April 2015. See Note 5. | ||||||||
In March 2013, TEP issued $91 million of tax-exempt bonds and used the proceeds to redeem debt using a trustee. Since the cash flowed through a trust account, the issuance and redemption of debt resulted in a non-cash transaction. |
FAIR_VALUE_MEASUREMENTS_AND_DE
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||||||||||
FAIR VALUE MEASUREMENTS & DERIVATIVE INSTRUMENTS | ' | |||||||||||||||||||||||
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS | ||||||||||||||||||||||||
We categorize our assets and liabilities accounted for at fair value into the three-level hierarchy based on inputs used to determine the fair value. Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in an active market. Level 2 inputs include quoted prices for similar assets or liabilities, quoted prices in non-active markets, and pricing models whose inputs are observable, directly or indirectly. Level 3 inputs are unobservable and supported by little or no market activity. Transfers between levels are recorded at the end of a reporting period. There were no transfers between levels in the periods presented. | ||||||||||||||||||||||||
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS | ||||||||||||||||||||||||
The following tables present, by level within the fair value hierarchy, UNS Energy’s and TEP’s assets and liabilities accounted for at fair value on a recurring basis. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||||||||||
UNS Energy | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Counterparty Netting of Energy Contracts Not Offset on the Balance Sheets(5) | Net Amount | |||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash Equivalents(1) | $ | 13 | $ | 13 | $ | — | $ | — | $ | — | $ | 13 | ||||||||||||
Restricted Cash(1) | 2 | 2 | — | — | — | 2 | ||||||||||||||||||
Rabbi Trust Investments(2) | 23 | — | 23 | — | — | 23 | ||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | 11 | — | 5 | 6 | (3 | ) | 8 | |||||||||||||||||
Total Assets | 49 | 15 | 28 | 6 | (3 | ) | 46 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | (5 | ) | — | (1 | ) | (4 | ) | 3 | (2 | ) | ||||||||||||||
Energy Contracts - Cash Flow Hedge(3) | (1 | ) | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Interest Rate Swaps(4) | (6 | ) | — | (6 | ) | — | — | (6 | ) | |||||||||||||||
Total Liabilities | (12 | ) | — | (7 | ) | (5 | ) | 3 | (9 | ) | ||||||||||||||
Net Total Assets (Liabilities) | $ | 37 | $ | 15 | $ | 21 | $ | 1 | $ | — | $ | 37 | ||||||||||||
UNS Energy | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Counterparty Netting of Energy Contracts Not Offset on the Balance Sheets(5) | Net Amount | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash Equivalents(1) | $ | 14 | $ | 14 | $ | — | $ | — | $ | — | $ | 14 | ||||||||||||
Restricted Cash(1) | 2 | 2 | — | — | — | 2 | ||||||||||||||||||
Rabbi Trust Investments(2) | 22 | — | 22 | — | — | 22 | ||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | 7 | — | 3 | 4 | (5 | ) | 2 | |||||||||||||||||
Total Assets | 45 | 16 | 25 | 4 | (5 | ) | 40 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | (7 | ) | — | (2 | ) | (5 | ) | 5 | (2 | ) | ||||||||||||||
Energy Contracts - Cash Flow Hedge(3) | (1 | ) | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Interest Rate Swaps(4) | (7 | ) | — | (7 | ) | — | — | (7 | ) | |||||||||||||||
Total Liabilities | (15 | ) | — | (9 | ) | (6 | ) | 5 | (10 | ) | ||||||||||||||
Net Total Assets (Liabilities) | $ | 30 | $ | 16 | $ | 16 | $ | (2 | ) | $ | — | $ | 30 | |||||||||||
TEP | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Counterparty Netting of Energy Contracts Not Offset on the Balance Sheets(5) | Net Amount | |||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash Equivalents(1) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Restricted Cash(1) | 2 | 2 | — | — | — | 2 | ||||||||||||||||||
Rabbi Trust Investments(2) | 23 | — | 23 | — | — | 23 | ||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | 5 | — | 2 | 3 | (2 | ) | 3 | |||||||||||||||||
Total Assets | 30 | 2 | 25 | 3 | (2 | ) | 28 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | (3 | ) | — | (1 | ) | (2 | ) | 2 | (1 | ) | ||||||||||||||
Energy Contracts - Cash Flow Hedge(3) | (1 | ) | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Interest Rate Swaps(4) | (6 | ) | — | (6 | ) | — | — | (6 | ) | |||||||||||||||
Total Liabilities | (10 | ) | — | (7 | ) | (3 | ) | 2 | (8 | ) | ||||||||||||||
Net Total Assets (Liabilities) | $ | 20 | $ | 2 | $ | 18 | $ | — | $ | — | $ | 20 | ||||||||||||
TEP | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Counterparty Netting of Energy Contracts Not Offset on the Balance Sheets(5) | Net Amount | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash Equivalents(1) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Restricted Cash(1) | 2 | 2 | — | — | — | 2 | ||||||||||||||||||
Rabbi Trust Investments(2) | 22 | — | 22 | — | — | 22 | ||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | 2 | — | 1 | 1 | (1 | ) | 1 | |||||||||||||||||
Total Assets | 26 | 2 | 23 | 1 | (1 | ) | 25 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | (2 | ) | — | — | (2 | ) | 1 | (1 | ) | |||||||||||||||
Energy Contracts - Cash Flow Hedge(3) | (1 | ) | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Interest Rate Swaps(4) | (7 | ) | — | (7 | ) | — | — | (7 | ) | |||||||||||||||
Total Liabilities | (10 | ) | — | (7 | ) | (3 | ) | 1 | (9 | ) | ||||||||||||||
Net Total Assets (Liabilities) | $ | 16 | $ | 2 | $ | 16 | $ | (2 | ) | $ | — | $ | 16 | |||||||||||
(1) | Cash Equivalents and Restricted Cash represent amounts held in money market funds and certificates of deposit valued at cost, including interest. Cash Equivalents are included in Cash and Cash Equivalents on the balance sheets. Restricted Cash is included in Investments and Other Property – Other on the balance sheets. | |||||||||||||||||||||||
(2) | Rabbi Trust Investments include amounts related to deferred compensation and Supplement Executive Retirement Plan (SERP) benefits held in mutual and money market funds valued at quoted prices traded in active markets. These investments are included in Investments and Other Property – Other on the balance sheets. | |||||||||||||||||||||||
(3) | Energy Contracts include gas swap agreements (Level 2), power options (Level 2), gas options (Level 3), and forward power purchase and sales contracts (Level 3) entered into to reduce exposure to energy price risk. These contracts are included in Derivative Instruments on the balance sheets. The valuation techniques are described below. | |||||||||||||||||||||||
-4 | Interest Rate Swaps are valued based on the 3-month or 6-month London Interbank Offered Rate (LIBOR) or the Securities Industry and Financial Markets Association municipal swap index. These interest rate swaps are included in Derivative Instruments on the balance sheets. | |||||||||||||||||||||||
(5) | All energy contracts are subject to legally enforceable master netting arrangements to mitigate credit risk. We have presented the effect of offset by counterparty; however, we present derivatives on a gross basis on the balance sheets. | |||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | ||||||||||||||||||||||||
We enter into various derivative and non-derivative contracts to reduce our exposure to energy price risk associated with our gas and purchased power requirements. The objectives for entering into such contracts include: creating price stability; meeting load and reserve requirements; and reducing exposure to price volatility that may result from delayed recovery under the PPFAC or PGA. | ||||||||||||||||||||||||
We primarily apply the market approach for recurring fair value measurements. When we have observable inputs for substantially the full term of the asset or liability or use quoted prices in an inactive market, we categorize the instrument in Level 2. We categorize derivatives in Level 3 when we use an aggregate pricing service or published prices that represent a consensus reporting of multiple brokers. | ||||||||||||||||||||||||
For both power and gas prices we obtain quotes from brokers, major market participants, exchanges, or industry publications and rely on our own price experience from active transactions in the market. We primarily use one set of quotations each for power and for gas and then validate those prices using other sources. We believe that the market information provided is reflective of market conditions as of the time and date indicated. | ||||||||||||||||||||||||
Published prices for energy derivative contracts may not be available due to the nature of contract delivery terms such as non-standard time blocks and non-standard delivery points. In these cases, we apply adjustments based on historical price curve relationships, transmission, and line losses. | ||||||||||||||||||||||||
We estimate the fair value of our gas options using a Black-Scholes-Merton option pricing model which includes inputs such as implied volatility, interest rates, and forward price curves. In the first half of 2013, we also used this pricing model to value our power options. | ||||||||||||||||||||||||
We also consider the impact of counterparty credit risk using current and historical default and recovery rates, as well as our own credit risk using credit default swap data. | ||||||||||||||||||||||||
Our assessments of the significance of a particular input to the fair value measurements require judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. We review the assumptions underlying our price curves monthly. | ||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||
We enter into interest rate swaps to mitigate the exposure to volatility in variable interest rates on debt. The interest rate swap agreements expire through January 2020. We also have a power purchase swap to hedge the cash flow risk associated with a long-term power supply agreement. The power purchase swap agreement expires in September 2015. The after-tax unrealized gains and losses on cash flow hedge activities and amounts reclassified to earnings are reported in the statements of other comprehensive income and Note 14. The loss expected to be reclassified to earnings within the next twelve months is estimated to be $3 million for UNS Energy and TEP. | ||||||||||||||||||||||||
Financial Impact of Energy Contracts | ||||||||||||||||||||||||
We record unrealized gains and losses on energy contracts that are recoverable through the PPFAC or PGA on the balance sheets as a regulatory asset or a regulatory liability rather than reporting the transaction in the income statements or in the statements of other comprehensive income, as shown in following tables: | ||||||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Unrealized Net Gain (Loss) Recorded to Regulatory Assets/Liabilities | $ | 1 | $ | (9 | ) | $ | 2 | $ | (3 | ) | ||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Unrealized Net Gain (Loss) Recorded to Regulatory Assets/Liabilities | $ | 5 | $ | — | $ | 2 | $ | (1 | ) | |||||||||||||||
Realized gains and losses on settled contracts are fully recoverable through the PPFAC or PGA. At June 30, 2014, UNS Energy and TEP have energy contracts that will settle through the second quarter of 2017. | ||||||||||||||||||||||||
Derivative Volumes | ||||||||||||||||||||||||
The volumes associated with our energy contracts were as follows: | ||||||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Power Contracts GWh | 1,933 | 1,583 | 976 | 779 | ||||||||||||||||||||
Gas Contracts GBtu | 63,546 | 33,371 | 27,176 | 9,615 | ||||||||||||||||||||
Level 3 Fair Value Measurements | ||||||||||||||||||||||||
The following table provides quantitative information regarding significant unobservable inputs in UNS Energy’s Level 3 fair value measurements: | ||||||||||||||||||||||||
Fair Value at | ||||||||||||||||||||||||
30-Jun-14 | Range of | |||||||||||||||||||||||
Valuation Approach | Assets | Liabilities | Unobservable Inputs | Unobservable Input | ||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Forward Contracts(1) | Market approach | $ | 4 | $ | (4 | ) | Market price per MWh | $ | 23.9 | - | $ | 57.9 | ||||||||||||
Option Contracts(2) | Option model | 2 | (1 | ) | Market price per MMbtu | $ | 3.87 | - | $ | 4.57 | ||||||||||||||
Gas volatility | 21.01 | % | - | 32.1 | % | |||||||||||||||||||
Level 3 Energy Contracts | $ | 6 | $ | (5 | ) | |||||||||||||||||||
Fair Value at | ||||||||||||||||||||||||
31-Dec-13 | Range of | |||||||||||||||||||||||
Valuation Approach | Assets | Liabilities | Unobservable Inputs | Unobservable Input | ||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Forward Contracts(3) | Market approach | $ | 1 | $ | (4 | ) | Market price per MWh | $ | 26.54 | - | $ | 51.75 | ||||||||||||
Option Contracts(4) | Option model | 3 | (2 | ) | Market price per MMbtu | $ | 3.87 | - | $ | 4.32 | ||||||||||||||
Gas volatility | 25.05 | % | - | 35.07 | % | |||||||||||||||||||
Level 3 Energy Contracts | $ | 4 | $ | (6 | ) | |||||||||||||||||||
(1) | TEP comprises $2 million of the forward contract assets and $2 million of the forward contract liabilities at June 30, 2014. | |||||||||||||||||||||||
(2) | TEP comprises $1 million of the option contract assets and $1 million of the option contract liabilities at June 30, 2014. | |||||||||||||||||||||||
(3) | TEP comprises $1 million of the forward contract assets and $3 million of the forward contract liabilities at December 31, 2013. | |||||||||||||||||||||||
(4) | TEP comprises less than $1 million of the option contract assets at December 31, 2013. | |||||||||||||||||||||||
Changes in one or more of the unobservable inputs could have a significant impact on the fair value measurement depending on the magnitude of the change and the direction of the change for each input. The impact of changes to fair value, including changes from unobservable inputs, are subject to recovery or refund through the PPFAC or PGA mechanisms and are reported as a regulatory asset or regulatory liability, or as a component of other comprehensive income, rather than in the income statement. | ||||||||||||||||||||||||
The following tables present a reconciliation of changes in the fair value of assets and liabilities classified as Level 3 in the fair value hierarchy: | ||||||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Balances at March 31, 2014 | $ | — | $ | (2 | ) | |||||||||||||||||||
Realized/Unrealized Gains/(Losses) Recorded to: | ||||||||||||||||||||||||
Net Regulatory Assets/Liabilities – Derivative Instruments | 3 | 2 | ||||||||||||||||||||||
Settlements | (2 | ) | — | |||||||||||||||||||||
Balances at June 30, 2014 | $ | 1 | $ | — | ||||||||||||||||||||
Total Gains/(Losses) Attributable to the Change in Unrealized Gains/(Losses) Relating to Assets/Liabilities Still Held at the End of the Period | $ | 3 | $ | 3 | ||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Balances at December 31, 2013 | $ | (2 | ) | $ | (2 | ) | ||||||||||||||||||
Realized/Unrealized Gains/(Losses) Recorded to: | ||||||||||||||||||||||||
Net Regulatory Assets/Liabilities – Derivative Instruments | 5 | 1 | ||||||||||||||||||||||
Settlements | (2 | ) | 1 | |||||||||||||||||||||
Balances at June 30, 2014 | $ | 1 | $ | — | ||||||||||||||||||||
Total Gains/(Losses) Attributable to the Change in Unrealized Gains/(Losses) Relating to Assets/Liabilities Still Held at the End of the Period | $ | 2 | $ | 1 | ||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Balances at March 31, 2013 | $ | (3 | ) | $ | (1 | ) | ||||||||||||||||||
Realized/Unrealized Gains/(Losses) Recorded to: | ||||||||||||||||||||||||
Net Regulatory Assets/Liabilities – Derivative Instruments | (2 | ) | — | |||||||||||||||||||||
Settlements | — | — | ||||||||||||||||||||||
Balances at June 30, 2013 | $ | (5 | ) | $ | (1 | ) | ||||||||||||||||||
Total Gains/(Losses) Attributable to the Change in Unrealized Gains/(Losses) Relating to Assets/Liabilities Still Held at the End of the Period | $ | (4 | ) | $ | — | |||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Balances at December 31, 2012 | $ | (5 | ) | $ | — | |||||||||||||||||||
Realized/Unrealized Gains/(Losses) Recorded to: | ||||||||||||||||||||||||
Net Regulatory Assets/Liabilities – Derivative Instruments | (2 | ) | (1 | ) | ||||||||||||||||||||
Settlements | 2 | — | ||||||||||||||||||||||
Balances at June 30, 2013 | $ | (5 | ) | $ | (1 | ) | ||||||||||||||||||
Total Gains/(Losses) Attributable to the Change in Unrealized Gains/(Losses) Relating to Assets/Liabilities Still Held at the End of the Period | $ | (3 | ) | $ | (1 | ) | ||||||||||||||||||
CREDIT RISK | ||||||||||||||||||||||||
The use of contractual arrangements to manage the risks associated with changes in energy commodity prices creates credit risk exposure resulting from the possibility of non-performance by counterparties pursuant to the terms of their contractual obligations. We enter into contracts for the physical delivery of energy and gas which contain remedies in the event of non-performance by the supply counterparties. In addition, volatile energy prices can create significant credit exposure from energy market receivables and subsequent measurement at fair value. | ||||||||||||||||||||||||
We have contractual agreements for energy procurement and hedging activities that contain certain provisions requiring each company to post collateral under certain circumstances. These circumstances include: exposures in excess of unsecured credit limits provided to the Regulated Utilities; credit rating downgrades; or a failure to meet certain financial ratios. In the event that such credit events were to occur, we would have to provide certain credit enhancements in the form of cash or LOCs to fully collateralize our exposure to these counterparties. | ||||||||||||||||||||||||
We consider the effect of counterparty credit risk in determining the fair value of derivative instruments that are in a net asset position after incorporating collateral posted by counterparties and allocate the credit risk adjustment to individual contracts. We also consider the impact of our own credit risk after considering collateral posted on instruments that are in a net liability position and allocate the credit risk adjustment to all individual contracts. | ||||||||||||||||||||||||
Material adverse changes could trigger credit risk-related contingent features. At June 30, 2014, the value of derivative instruments in a net liability position under contracts with credit risk-related contingent features, including contracts under the normal purchase normal sale exception, was $25 million for UNS Energy and $19 million for TEP. The additional collateral to be posted if credit-risk contingent features were triggered would be $25 million for UNS Energy and $19 million for TEP. | ||||||||||||||||||||||||
FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE | ||||||||||||||||||||||||
The fair value of a financial instrument is the market price to sell an asset or transfer a liability at the measurement date. We use the following methods and assumptions for estimating the fair value of our financial instruments: | ||||||||||||||||||||||||
• | The carrying amounts of our current maturities of long-term debt and amounts outstanding under our credit agreements approximate the fair values due to the short-term nature of these financial instruments. These items have been excluded from the table below. | |||||||||||||||||||||||
• | For Investment in Lease Equity, we estimate the price at which an investor would realize a target internal rate of return. Our estimates include: the mix of debt and equity an investor would use to finance the purchase; the cost of debt; the required return on equity; and income tax rates. The estimate assumes a residual value based on an appraisal of Springerville Unit 1 conducted in 2011. | |||||||||||||||||||||||
• | For Long-Term Debt, we use quoted market prices, when available, or calculate the present value of remaining cash flows at the balance sheet date. When calculating present value, we use current market rates for bonds with similar characteristics such as credit rating and time-to-maturity. We consider the principal amounts of variable rate debt outstanding to be reasonable estimates of the fair value. We also incorporate the impact of our own credit risk using a credit default swap rate. | |||||||||||||||||||||||
The use of different estimation methods and/or market assumptions may yield different estimated fair value amounts. The carrying values recorded on the balance sheets and the estimated fair values of our financial instruments include the following: | ||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||
Hierarchy | Value | Value | Value | Value | ||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
TEP Investment in Lease Equity | Level 3 | $ | 36 | $ | 25 | $ | 36 | $ | 25 | |||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-Term Debt | ||||||||||||||||||||||||
UNS Energy | Level 2 | $ | 1,677 | $ | 1,771 | $ | 1,507 | $ | 1,521 | |||||||||||||||
TEP | Level 2 | 1,372 | 1,435 | 1,223 | 1,214 | |||||||||||||||||||
INCOME_TAXES_INCOME_TAXES
INCOME TAXES INCOME TAXES | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Tax Disclosure [Text Block] | ' | |||||||||||||||
INCOME TAXES | ||||||||||||||||
Income tax expense differs from the amount of income tax determined by applying the United States statutory federal income tax rate of 35% to pre-tax income due to the following: | ||||||||||||||||
UNS Energy | TEP | |||||||||||||||
Three Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Millions of Dollars | ||||||||||||||||
Federal Income Tax Expense at Statutory Rate | $ | 24 | $ | 14 | $ | 22 | $ | 12 | ||||||||
State Income Tax Expense, Net of Federal Deduction | 3 | 2 | 3 | 2 | ||||||||||||
Federal/State Tax Credits | (2 | ) | — | (2 | ) | — | ||||||||||
Investment Tax Credit Basis Adjustment - Creation of Regulatory Asset | — | (11 | ) | — | (11 | ) | ||||||||||
Other | — | (1 | ) | — | (1 | ) | ||||||||||
Total Federal and State Income Tax Expense | $ | 25 | $ | 4 | $ | 23 | $ | 2 | ||||||||
UNS Energy | TEP | |||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Millions of Dollars | ||||||||||||||||
Federal Income Tax Expense at Statutory Rate | $ | 32 | $ | 20 | $ | 27 | $ | 12 | ||||||||
State Income Tax Expense, Net of Federal Deduction | 4 | 3 | 3 | 2 | ||||||||||||
Federal/State Tax Credits | (2 | ) | — | (2 | ) | — | ||||||||||
Investment Tax Credit Basis Adjustment - Creation of Regulatory Asset | — | (11 | ) | — | (11 | ) | ||||||||||
Other | 1 | (1 | ) | — | — | |||||||||||
Total Federal and State Income Tax Expense | $ | 35 | $ | 11 | $ | 28 | $ | 3 | ||||||||
Investment Tax Credit Basis Adjustment - Creation of Regulatory Asset | ||||||||||||||||
Renewable energy assets are eligible for investment tax credits. We reduce the income tax basis of those qualifying assets by half of the related investment tax credit. Historically, the difference between the income tax basis of the asset and the book basis under GAAP was recorded as a deferred tax liability with an offsetting charge to income tax expense in the year the qualifying asset was placed in service. In June 2013, we recorded a regulatory asset and corresponding reduction of income tax expense of $11 million to recover previously recorded income tax expense through future rates as a result of the 2013 TEP Rate Order. The regulatory asset will be amortized as income tax expense as the qualifying assets are depreciated. |
RECLASSIFICATIONS_FROM_ACCUMUL
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Statement of Comprehensive Income [Abstract] | ' | ||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | ' | ||||||||||
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | |||||||||||
The reclassifications from Accumulated Other Comprehensive Income (AOCI) by component are as follows: | |||||||||||
UNS Energy | |||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Other Comprehensive Income | Affected Line Item in the Income Statement | |||||||||
Three Months Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
Thousands of Dollars | |||||||||||
Realized Losses on Cash Flow Hedges | |||||||||||
Interest Rate Swaps - Debt | $ | (349 | ) | $ | (346 | ) | Interest Expense Long-Term Debt | ||||
Interest Rate Swaps - Capital Leases | (602 | ) | (604 | ) | Interest Expense Capital Leases | ||||||
Commodity Contracts | (143 | ) | (191 | ) | Purchased Energy/Purchased Power | ||||||
Tax Benefit | 430 | 451 | |||||||||
Realized Losses on Cash Flow Hedges, Net of Taxes | (664 | ) | (690 | ) | |||||||
Amortization of SERP | |||||||||||
Prior Service Cost and Net Loss | (40 | ) | (111 | ) | Operations and Maintenance | ||||||
Tax Benefit | 15 | 43 | |||||||||
Amortization, Net of Taxes | (25 | ) | (68 | ) | |||||||
Total Reclassifications from Other Comprehensive Income for the Period | $ | (689 | ) | $ | (758 | ) | |||||
UNS Energy | |||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Other Comprehensive Income | Affected Line Item in the Income Statement | |||||||||
Six Months Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
Thousands of Dollars | |||||||||||
Realized Losses on Cash Flow Hedges | |||||||||||
Interest Rate Swaps - Debt | $ | (702 | ) | $ | (676 | ) | Interest Expense Long-Term Debt | ||||
Interest Rate Swaps - Capital Leases | (1,198 | ) | (1,208 | ) | Interest Expense Capital Leases | ||||||
Commodity Contracts | (143 | ) | (191 | ) | Purchased Energy/Purchased Power | ||||||
Tax Benefit | 734 | 820 | |||||||||
Realized Losses on Cash Flow Hedges, Net of Taxes | (1,309 | ) | (1,255 | ) | |||||||
Amortization of SERP | |||||||||||
Prior Service Cost and Net Loss | (79 | ) | (222 | ) | Operations and Maintenance | ||||||
Tax Benefit | 30 | 85 | |||||||||
Amortization, Net of Taxes | (49 | ) | (137 | ) | |||||||
Total Reclassifications from Other Comprehensive Income for the Period | $ | (1,358 | ) | $ | (1,392 | ) | |||||
TEP | |||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Other Comprehensive Income | Affected Line Item in the Income Statement | |||||||||
Three Months Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
Thousands of Dollars | |||||||||||
Realized Losses on Cash Flow Hedges | |||||||||||
Interest Rate Swaps - Debt | $ | (293 | ) | $ | (293 | ) | Interest Expense Long-Term Debt | ||||
Interest Rate Swaps - Capital Leases | (602 | ) | (604 | ) | Interest Expense Capital Leases | ||||||
Commodity Contracts | (143 | ) | (191 | ) | Purchased Energy/Purchased Power | ||||||
Tax Benefit | 408 | 429 | |||||||||
Realized Losses on Cash Flow Hedges, Net of Taxes | (630 | ) | (659 | ) | |||||||
Amortization of SERP | |||||||||||
Prior Service Cost and Net Loss | (40 | ) | (111 | ) | Other Expense | ||||||
Tax Benefit | 15 | 43 | |||||||||
Amortization, Net of Taxes | (25 | ) | (68 | ) | |||||||
Total Reclassifications from Other Comprehensive Income for the Period | $ | (655 | ) | $ | (727 | ) | |||||
TEP | |||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Other Comprehensive Income | Affected Line Item in the Income Statement | |||||||||
Six Months Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
Thousands of Dollars | |||||||||||
Realized Losses on Cash Flow Hedges | |||||||||||
Interest Rate Swaps - Debt | $ | (591 | ) | $ | (575 | ) | Interest Expense Long-Term Debt | ||||
Interest Rate Swaps - Capital Leases | (1,198 | ) | (1,208 | ) | Interest Expense Capital Leases | ||||||
Commodity Contracts | (143 | ) | (191 | ) | Purchased Energy/Purchased Power | ||||||
Tax Benefit | 692 | 781 | |||||||||
Realized Losses on Cash Flow Hedges, Net of Taxes | (1,240 | ) | (1,193 | ) | |||||||
Amortization of SERP | |||||||||||
Prior Service Cost and Net Loss | (79 | ) | (222 | ) | Other Expense | ||||||
Tax Benefit | 30 | 85 | |||||||||
Amortization, Net of Taxes | (49 | ) | (137 | ) | |||||||
Total Reclassifications from Other Comprehensive Income for the Period | $ | (1,289 | ) | $ | (1,330 | ) |
RECENTLY_ISSUED_ACCOUNTING_PRO
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | ' |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
In April 2014, the Financial Accounting Standards Board (FASB) issued an accounting standards update that limits the circumstances under which a disposal may be reported as a discontinued operation and requires new disclosures. This guidance will be effective in the first quarter of 2015. We do not expect the adoption of this guidance to have an impact on the presentation of our financial statements or our disclosures. | |
In May 2014, the FASB issued an accounting standards update that will eliminate the transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principles based approach for determining revenue recognition. We will be required to adopt the new guidance retrospectively for annual and interim periods beginning January 1, 2017; early adoption is not permitted. We are evaluating the impact to our financial statements and disclosures. |
NATURE_OF_OPERATIONS_AND_FINAN1
NATURE OF OPERATIONS AND FINANCIAL STATEMENT PRESENTATION (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Text Block [Abstract] | ' | |
Reclassification, Policy | ' | |
REVISION OF PRIOR PERIOD BALANCE SHEETS | ||
UNS Energy and TEP revised their December 31, 2013 balance sheets to correct an error in the classification of capital lease obligations and related deferred income taxes. The correction increased current capital lease obligations and decreased noncurrent capital lease obligations by $18 million and increased current deferred tax assets and noncurrent deferred tax liabilities by $7 million. We do not believe the misclassification was material to the previously issued financial statements. | ||
Recently Adopted Accounting Pronouncements | ' | |
RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS | ||
In 2014, we adopted accounting guidance that: | ||
• | requires an entity to recognize and disclose in the financial statements its obligation from a joint and several liability arrangement as the sum of the amount the entity agreed with its co-obligors that it will pay and any additional amount the entity expects to pay on behalf of its co-obligors. The adoption of this guidance did not have a material impact on our disclosures, financial condition, results of operations, or cash flows. | |
• | impacts the financial statement presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Although adoption and prospective application of this guidance impacted how such items are classified on our balance sheets, such change was not material. Additionally, there were no material changes in our results of operations or cash flows. |
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||||||||||
Reconciling Adjustments of Income Statement Items in Consolidation | ' | |||||||||||||||||||||||
We disclose selected financial data for our reportable segments in the following tables: | ||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
TEP | UNS Electric | UNS Gas | Other (2) | Reconciling | UNS | |||||||||||||||||||
Adjustments | Energy | |||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||
Operating Revenues-External | $ | 318 | $ | 47 | $ | 22 | $ | — | $ | — | $ | 387 | ||||||||||||
Operating Revenues-Intersegment(1) | 4 | — | 1 | 4 | (9 | ) | — | |||||||||||||||||
Income Before Income Taxes | 61 | 6 | — | — | — | 67 | ||||||||||||||||||
Net Income | 39 | 4 | — | (1 | ) | — | 42 | |||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
Operating Revenues-External | $ | 300 | $ | 44 | $ | 21 | $ | — | $ | — | $ | 365 | ||||||||||||
Operating Revenues-Intersegment(1) | 4 | — | 1 | 4 | (9 | ) | — | |||||||||||||||||
Income Before Income Taxes | 32 | 6 | — | — | — | 38 | ||||||||||||||||||
Net Income | 31 | 4 | — | — | — | 35 | ||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
TEP | UNS Electric | UNS Gas | Other (2) | Reconciling | UNS | |||||||||||||||||||
Adjustments | Energy | |||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
Operating Revenues-External | $ | 569 | 87 | 64 | $ | — | $ | — | $ | 720 | ||||||||||||||
Operating Revenues-Intersegment (1) | 8 | 1 | 1 | 8 | (18 | ) | — | |||||||||||||||||
Income Before Income Taxes | 76 | 9 | 8 | (1 | ) | — | 92 | |||||||||||||||||
Net Income | 48 | 6 | 5 | (1 | ) | — | 58 | |||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
Operating Revenues-External | $ | 543 | $ | 80 | $ | 73 | $ | 1 | $ | — | $ | 697 | ||||||||||||
Operating Revenues-Intersegment (1) | 9 | 1 | 1 | 8 | (19 | ) | — | |||||||||||||||||
Income Before Income Taxes | 35 | 9 | 13 | — | — | 57 | ||||||||||||||||||
Net Income | 32 | 6 | 8 | — | — | 46 | ||||||||||||||||||
(1) | Operating Revenues-Intersegment includes common costs (system, facilities, etc.) allocated to affiliates on a cost-causative basis and recorded as revenue by TEP, sales of power between TEP and UNS Electric at third-party market prices, control area services provided by TEP to UNS Electric based on a FERC-approved tariff, sales of gas by UNS Gas at third-party market prices for use in UNS Electric's generating facilities, and supplemental workforce charges (primarily meter reading services) provided to the utilities by an unregulated affiliate. | |||||||||||||||||||||||
(2) | Other includes the UNS Energy and UES holding companies, Millennium, and UED. |
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS. CONTINGENCIES, AND ENVIRONMENTAL MATTERS (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Unrecorded Unconditional Purchase Obligations Disclosure | ' | |||||||||||||||||||||||||||
In addition to those reported in our 2013 Annual Report on Form 10-K, UNS Energy entered into the following long-term commitments through June 30, 2014: | ||||||||||||||||||||||||||||
UNS Energy Purchase Commitments | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||
Fuel, including Transportation | $ | — | $ | 9 | $ | 9 | $ | 9 | $ | 8 | $ | 8 | $ | 43 | ||||||||||||||
Purchased Power | — | 23 | — | — | — | — | 23 | |||||||||||||||||||||
Capital Lease Obligations(1) | — | 120 | — | — | — | — | 120 | |||||||||||||||||||||
Total Purchase Commitments | $ | — | $ | 152 | $ | 9 | $ | 9 | $ | 8 | $ | 8 | $ | 186 | ||||||||||||||
TEP entered into the following long-term commitments: | ||||||||||||||||||||||||||||
TEP Purchase Commitments | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||
Fuel, Including Transportation | $ | — | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 40 | ||||||||||||||
Purchased Power | — | 15 | — | — | — | — | 15 | |||||||||||||||||||||
Capital Lease Obligations(1) | — | 120 | — | — | — | — | 120 | |||||||||||||||||||||
Total Purchase Commitments | $ | — | $ | 143 | $ | 8 | $ | 8 | $ | 8 | $ | 8 | $ | 175 | ||||||||||||||
(1) | In April 2014, TEP entered into agreements to purchase certain Springerville Coal Handling Facilities leased interests. See Note 5. | |||||||||||||||||||||||||||
Schedule of Environmental Loss Contingencies by Site | ' | |||||||||||||||||||||||||||
TEP's estimated costs involved in meeting these rules are: | ||||||||||||||||||||||||||||
Estimated NOx Emissions Control Costs: | Navajo (1) | San Juan (2) | Four Corners (3) | Sundt (4) | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||
Capital Expenditures | $ | 42 | $ | 35 | $ | 35 | $ | 12 | ||||||||||||||||||||
Annual O&M Expenses | 1 | 1 | 2 | 6-May | ||||||||||||||||||||||||
-1 | The EPA is considering a better-than-BART plan wherein: one unit at Navajo will be shut down by 2020; SCR (or the equivalent) will be installed on the remaining two units by 2030; and conventional coal-fired generation will cease by December 2044. TEP expects the EPA to reach a decision in 2014. In addition, the installation of SCR technology could increase particulates which may require that baghouses be installed. TEP owns 7.5% of Navajo. TEP's share of the capital cost of baghouses in addition to the SCR costs reflected in the table above is approximately $43 million with O&M on the baghouses expected to be less than $1 million per year. | |||||||||||||||||||||||||||
-2 | The Federal Implementation Plan (FIP) for San Juan requires SCRs for which TEP estimates its share of capital costs will be $180-$200 million with annual O&M of $6 million. As part of a proposal for an alternative, Public Service Company of New Mexico (PNM), the State of New Mexico, and the EPA signed a non-binding agreement in which PNM agreed to close Units 2 and 3 by December 2017 and install selective non-catalytic reduction (SNCR) on Units 1 and 4 by January 2016 or later depending on the timing of EPA approvals. Estimated costs for SNCR are reflected in the table above. The State of New Mexico has submitted this plan to the EPA and the EPA has proposed to approve the alternative state plan which would replace the existing FIP. TEP expects the EPA will reach a final decision in 2014. TEP owns 50% of San Juan Unit 2. At June 30, 2014, the net book value of TEP's share in San Juan Unit 2 was $112 million. If Unit 2 is retired early, TEP expects to request ACC approval to recover, over a reasonable time period, all costs associated with the early closure of the unit. | |||||||||||||||||||||||||||
-3 | In December 2013, APS, on behalf of the co-owners of Four Corners, notified the EPA that they have chosen an alternative BART compliance strategy; as a result, APS closed Units 1, 2, and 3 in December 2013 and has agreed to the installation of SCR on Units 4 & 5 by July 2018. TEP owns 7% of Four Corners Units 4 and 5. | |||||||||||||||||||||||||||
(4) In June 2014, the EPA issued a final rule that would require TEP to either (i) install SNCR and dry sorbent injection technology on Unit 4 by mid-2017 or (ii) eliminate the use of coal by the end of 2017 as a better-than-BART alternative. TEP is required to notify the EPA of its decision by March 2017. At June 30, 2014, the net book value of the Sundt coal handling facilities was $27 million. If the coal handling facilities are retired early, TEP expects to request ACC approval to recover, over a reasonable time period, all the remaining costs of the coal handling facilities. | ||||||||||||||||||||||||||||
TEP's share of the estimated costs to comply with the MATS rules include the following: | ||||||||||||||||||||||||||||
Estimated Mercury Emissions Control Costs: | Navajo | Four Corners | Springerville(1) | |||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||||||
Capital Expenditures | $ | 1 | $ | 1 | $ | 5 | ||||||||||||||||||||||
Annual O&M Expenses | 1 | 1 | 1 | |||||||||||||||||||||||||
-1 | Total capital expenditures and annual O&M expenses represent amounts for both Springerville Units 1 & 2, with estimated costs split equally between the two units. TEP will own 49.5% of Springerville Unit 1 upon close of the lease option purchases in January 2015; after the completion of such purchases, third party owners will be responsible for 50.5% of environmental costs attributable to Springerville Unit 1. TEP will continue to be responsible for 100% of environmental costs attributable to Springerville Unit 2. |
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||
UNS Energy’s net periodic benefit plan cost, comprised primarily of TEP's cost, includes the following components: | ||||||||||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||
Three Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Millions of Dollars | ||||||||||||||||
Service Cost | $ | 2 | $ | 3 | $ | 1 | $ | 1 | ||||||||
Interest Cost | 5 | 4 | — | 1 | ||||||||||||
Expected Return on Plan Assets | (5 | ) | (5 | ) | — | — | ||||||||||
Actuarial Loss Amortization | 1 | 2 | — | — | ||||||||||||
Net Periodic Benefit Cost | $ | 3 | $ | 4 | $ | 1 | $ | 2 | ||||||||
Pension Benefits | Other Retiree Benefits | |||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Millions of Dollars | ||||||||||||||||
Service Cost | $ | 5 | $ | 6 | $ | 2 | $ | 2 | ||||||||
Interest Cost | 9 | 8 | 1 | 1 | ||||||||||||
Expected Return on Plan Assets | (11 | ) | (10 | ) | — | — | ||||||||||
Actuarial Loss Amortization | 2 | 4 | — | — | ||||||||||||
Net Periodic Benefit Cost | $ | 5 | $ | 8 | $ | 3 | $ | 3 | ||||||||
UNS_ENERGY_EARNINGS_PER_SHARE_
UNS ENERGY EARNINGS PER SHARE (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
Effects of Dilutive Common Stock on Weighted-Average Number of Shares | ' | |||||||||||||||
The following table illustrates the effect of dilutive securities on net income and weighted average Common Stock outstanding: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Thousands of Dollars | ||||||||||||||||
Numerator: Net Income | $ | 42,354 | $ | 34,618 | $ | 57,829 | $ | 45,963 | ||||||||
Thousands of Shares | ||||||||||||||||
Denominator: | ||||||||||||||||
Weighted Average Shares of Common Stock Outstanding: | ||||||||||||||||
Common Shares Issued | 41,659 | 41,427 | 41,639 | 41,404 | ||||||||||||
Fully Vested Deferred Stock Units | 122 | 171 | 120 | 165 | ||||||||||||
Total Weighted Average Common Stock Outstanding — Basic | 41,781 | 41,598 | 41,759 | 41,569 | ||||||||||||
Effect of Dilutive Securities: | ||||||||||||||||
Options and Stock Issuable Under Share-Based Compensation Plans | 364 | 323 | 356 | 329 | ||||||||||||
Total Weighted Average Common Stock Outstanding — Diluted | 42,145 | 41,921 | 42,115 | 41,898 | ||||||||||||
Shares of Common Stock Excluded from Computation of Diluted Earning Per Share | ' | |||||||||||||||
For the six months ended June 30, 2013, we excluded 12,000 contingently issuable shares from our diluted EPS computation as their effect would be anti-dilutive. |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Text Block [Abstract] | ' | |||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | |||||||
A reconciliation of Net Income to Net Cash Flows from Operating Activities follows: | ||||||||
UNS Energy | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Thousands of Dollars | ||||||||
Net Income | $ | 57,829 | $ | 45,963 | ||||
Adjustments to Reconcile Net Income | ||||||||
To Net Cash Flows from Operating Activities | ||||||||
Depreciation Expense | 78,644 | 72,970 | ||||||
Amortization Expense | 12,631 | 16,408 | ||||||
Depreciation and Amortization Recorded to Fuel and O&M Expense | 3,977 | 3,516 | ||||||
Amortization of Deferred Debt-Related Costs included in Interest Expense | 1,584 | 1,515 | ||||||
Provision for Retail Customer Bad Debts | 1,194 | 936 | ||||||
Use of Renewable Energy Credits for Compliance | 11,313 | 8,106 | ||||||
Deferred Income Taxes | 36,320 | 36,644 | ||||||
Investment Tax Credit Basis Adjustment - Creation of Regulatory Asset | — | (11,039 | ) | |||||
Pension and Retiree Expense | 7,884 | 11,391 | ||||||
Pension and Retiree Funding | (5,974 | ) | (8,924 | ) | ||||
Share-Based Compensation Expense | 1,859 | 1,390 | ||||||
Allowance for Equity Funds Used During Construction | (4,038 | ) | (2,463 | ) | ||||
LFCR Revenue | (7,654 | ) | — | |||||
Decrease to Reflect PPFAC/PGA Recovery | (21,437 | ) | (3,294 | ) | ||||
PPFAC Reduction - 2013 TEP Rate Order | — | 3,000 | ||||||
Changes in Assets and Liabilities which Provided (Used) | ||||||||
Cash Exclusive of Changes Shown Separately | ||||||||
Accounts Receivable | (22,766 | ) | (20,706 | ) | ||||
Materials and Fuel Inventory | (4,413 | ) | 8,777 | |||||
Accounts Payable | (5,875 | ) | (9,576 | ) | ||||
Income Taxes | (88 | ) | (15,980 | ) | ||||
Interest Accrued | 1,305 | (6,885 | ) | |||||
Taxes Other Than Income Taxes | 3,721 | 490 | ||||||
Other | (8,259 | ) | 15,413 | |||||
Net Cash Flows – Operating Activities | $ | 137,757 | $ | 147,652 | ||||
TEP | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Thousands of Dollars | ||||||||
Net Income | $ | 47,897 | $ | 32,266 | ||||
Adjustments to Reconcile Net Income | ||||||||
To Net Cash Flows from Operating Activities | ||||||||
Depreciation Expense | 61,891 | 57,418 | ||||||
Amortization Expense | 14,476 | 18,275 | ||||||
Depreciation and Amortization Recorded to Fuel and O&M Expense | 3,406 | 2,987 | ||||||
Amortization of Deferred Debt-Related Costs Included in Interest Expense | 1,285 | 1,216 | ||||||
Provision for Retail Customer Bad Debts | 833 | 711 | ||||||
Use of Renewable Energy Credits for Compliance | 9,884 | 7,414 | ||||||
Deferred Income Taxes | 29,641 | 24,883 | ||||||
Investment Tax Credit Basis Adjustment - Creation of Regulatory Asset | — | (10,751 | ) | |||||
Pension and Retiree Expense | 6,824 | 9,939 | ||||||
Pension and Retiree Funding | (5,522 | ) | (8,493 | ) | ||||
Share-Based Compensation Expense | 1,496 | 1,108 | ||||||
Allowance for Equity Funds Used During Construction | (3,524 | ) | (1,763 | ) | ||||
LFCR Revenue | (6,121 | ) | — | |||||
Increase (Decrease) to Reflect PPFAC Recovery | (14,791 | ) | 2,914 | |||||
PPFAC Reduction - 2013 TEP Rate Order | — | 3,000 | ||||||
Changes in Assets and Liabilities which Provided (Used) | ||||||||
Cash Exclusive of Changes Shown Separately | ||||||||
Accounts Receivable | (35,498 | ) | (30,452 | ) | ||||
Materials and Fuel Inventory | (3,936 | ) | 8,923 | |||||
Accounts Payable | 6,019 | (11 | ) | |||||
Income Taxes | (6 | ) | (10,798 | ) | ||||
Interest Accrued | 1,320 | (6,886 | ) | |||||
Taxes Other Than Income Taxes | 5,247 | 2,295 | ||||||
Other | (7,779 | ) | 11,347 | |||||
Net Cash Flows – Operating Activities | $ | 113,042 | $ | 115,542 | ||||
FAIR_VALUE_MEASUREMENTS_AND_DE1
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||||||||||
Schedule of Fair Value Measurements of Financial Assets and Liabilities | ' | |||||||||||||||||||||||
The following tables present, by level within the fair value hierarchy, UNS Energy’s and TEP’s assets and liabilities accounted for at fair value on a recurring basis. These assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | ||||||||||||||||||||||||
UNS Energy | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Counterparty Netting of Energy Contracts Not Offset on the Balance Sheets(5) | Net Amount | |||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash Equivalents(1) | $ | 13 | $ | 13 | $ | — | $ | — | $ | — | $ | 13 | ||||||||||||
Restricted Cash(1) | 2 | 2 | — | — | — | 2 | ||||||||||||||||||
Rabbi Trust Investments(2) | 23 | — | 23 | — | — | 23 | ||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | 11 | — | 5 | 6 | (3 | ) | 8 | |||||||||||||||||
Total Assets | 49 | 15 | 28 | 6 | (3 | ) | 46 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | (5 | ) | — | (1 | ) | (4 | ) | 3 | (2 | ) | ||||||||||||||
Energy Contracts - Cash Flow Hedge(3) | (1 | ) | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Interest Rate Swaps(4) | (6 | ) | — | (6 | ) | — | — | (6 | ) | |||||||||||||||
Total Liabilities | (12 | ) | — | (7 | ) | (5 | ) | 3 | (9 | ) | ||||||||||||||
Net Total Assets (Liabilities) | $ | 37 | $ | 15 | $ | 21 | $ | 1 | $ | — | $ | 37 | ||||||||||||
UNS Energy | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Counterparty Netting of Energy Contracts Not Offset on the Balance Sheets(5) | Net Amount | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash Equivalents(1) | $ | 14 | $ | 14 | $ | — | $ | — | $ | — | $ | 14 | ||||||||||||
Restricted Cash(1) | 2 | 2 | — | — | — | 2 | ||||||||||||||||||
Rabbi Trust Investments(2) | 22 | — | 22 | — | — | 22 | ||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | 7 | — | 3 | 4 | (5 | ) | 2 | |||||||||||||||||
Total Assets | 45 | 16 | 25 | 4 | (5 | ) | 40 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | (7 | ) | — | (2 | ) | (5 | ) | 5 | (2 | ) | ||||||||||||||
Energy Contracts - Cash Flow Hedge(3) | (1 | ) | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Interest Rate Swaps(4) | (7 | ) | — | (7 | ) | — | — | (7 | ) | |||||||||||||||
Total Liabilities | (15 | ) | — | (9 | ) | (6 | ) | 5 | (10 | ) | ||||||||||||||
Net Total Assets (Liabilities) | $ | 30 | $ | 16 | $ | 16 | $ | (2 | ) | $ | — | $ | 30 | |||||||||||
TEP | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Counterparty Netting of Energy Contracts Not Offset on the Balance Sheets(5) | Net Amount | |||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash Equivalents(1) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Restricted Cash(1) | 2 | 2 | — | — | — | 2 | ||||||||||||||||||
Rabbi Trust Investments(2) | 23 | — | 23 | — | — | 23 | ||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | 5 | — | 2 | 3 | (2 | ) | 3 | |||||||||||||||||
Total Assets | 30 | 2 | 25 | 3 | (2 | ) | 28 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | (3 | ) | — | (1 | ) | (2 | ) | 2 | (1 | ) | ||||||||||||||
Energy Contracts - Cash Flow Hedge(3) | (1 | ) | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Interest Rate Swaps(4) | (6 | ) | — | (6 | ) | — | — | (6 | ) | |||||||||||||||
Total Liabilities | (10 | ) | — | (7 | ) | (3 | ) | 2 | (8 | ) | ||||||||||||||
Net Total Assets (Liabilities) | $ | 20 | $ | 2 | $ | 18 | $ | — | $ | — | $ | 20 | ||||||||||||
TEP | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Counterparty Netting of Energy Contracts Not Offset on the Balance Sheets(5) | Net Amount | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash Equivalents(1) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Restricted Cash(1) | 2 | 2 | — | — | — | 2 | ||||||||||||||||||
Rabbi Trust Investments(2) | 22 | — | 22 | — | — | 22 | ||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | 2 | — | 1 | 1 | (1 | ) | 1 | |||||||||||||||||
Total Assets | 26 | 2 | 23 | 1 | (1 | ) | 25 | |||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Energy Contracts - Regulatory Recovery(3) | (2 | ) | — | — | (2 | ) | 1 | (1 | ) | |||||||||||||||
Energy Contracts - Cash Flow Hedge(3) | (1 | ) | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Interest Rate Swaps(4) | (7 | ) | — | (7 | ) | — | — | (7 | ) | |||||||||||||||
Total Liabilities | (10 | ) | — | (7 | ) | (3 | ) | 1 | (9 | ) | ||||||||||||||
Net Total Assets (Liabilities) | $ | 16 | $ | 2 | $ | 16 | $ | (2 | ) | $ | — | $ | 16 | |||||||||||
(1) | Cash Equivalents and Restricted Cash represent amounts held in money market funds and certificates of deposit valued at cost, including interest. Cash Equivalents are included in Cash and Cash Equivalents on the balance sheets. Restricted Cash is included in Investments and Other Property – Other on the balance sheets. | |||||||||||||||||||||||
(2) | Rabbi Trust Investments include amounts related to deferred compensation and Supplement Executive Retirement Plan (SERP) benefits held in mutual and money market funds valued at quoted prices traded in active markets. These investments are included in Investments and Other Property – Other on the balance sheets. | |||||||||||||||||||||||
(3) | Energy Contracts include gas swap agreements (Level 2), power options (Level 2), gas options (Level 3), and forward power purchase and sales contracts (Level 3) entered into to reduce exposure to energy price risk. These contracts are included in Derivative Instruments on the balance sheets. The valuation techniques are described below. | |||||||||||||||||||||||
-4 | Interest Rate Swaps are valued based on the 3-month or 6-month London Interbank Offered Rate (LIBOR) or the Securities Industry and Financial Markets Association municipal swap index. These interest rate swaps are included in Derivative Instruments on the balance sheets. | |||||||||||||||||||||||
(5) | All energy contracts are subject to legally enforceable master netting arrangements to mitigate credit risk. We have presented the effect of offset by counterparty; however, we present derivatives on a gross basis on the balance sheets. | |||||||||||||||||||||||
Financial Impact of Energy Contracts | ' | |||||||||||||||||||||||
We record unrealized gains and losses on energy contracts that are recoverable through the PPFAC or PGA on the balance sheets as a regulatory asset or a regulatory liability rather than reporting the transaction in the income statements or in the statements of other comprehensive income, as shown in following tables: | ||||||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Unrealized Net Gain (Loss) Recorded to Regulatory Assets/Liabilities | $ | 1 | $ | (9 | ) | $ | 2 | $ | (3 | ) | ||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Unrealized Net Gain (Loss) Recorded to Regulatory Assets/Liabilities | $ | 5 | $ | — | $ | 2 | $ | (1 | ) | |||||||||||||||
Derivative Volumes | ' | |||||||||||||||||||||||
The volumes associated with our energy contracts were as follows: | ||||||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | June 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Power Contracts GWh | 1,933 | 1,583 | 976 | 779 | ||||||||||||||||||||
Gas Contracts GBtu | 63,546 | 33,371 | 27,176 | 9,615 | ||||||||||||||||||||
Quantitative Information Regarding Unobservable Inputs | ' | |||||||||||||||||||||||
The following table provides quantitative information regarding significant unobservable inputs in UNS Energy’s Level 3 fair value measurements: | ||||||||||||||||||||||||
Fair Value at | ||||||||||||||||||||||||
30-Jun-14 | Range of | |||||||||||||||||||||||
Valuation Approach | Assets | Liabilities | Unobservable Inputs | Unobservable Input | ||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Forward Contracts(1) | Market approach | $ | 4 | $ | (4 | ) | Market price per MWh | $ | 23.9 | - | $ | 57.9 | ||||||||||||
Option Contracts(2) | Option model | 2 | (1 | ) | Market price per MMbtu | $ | 3.87 | - | $ | 4.57 | ||||||||||||||
Gas volatility | 21.01 | % | - | 32.1 | % | |||||||||||||||||||
Level 3 Energy Contracts | $ | 6 | $ | (5 | ) | |||||||||||||||||||
Fair Value at | ||||||||||||||||||||||||
31-Dec-13 | Range of | |||||||||||||||||||||||
Valuation Approach | Assets | Liabilities | Unobservable Inputs | Unobservable Input | ||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Forward Contracts(3) | Market approach | $ | 1 | $ | (4 | ) | Market price per MWh | $ | 26.54 | - | $ | 51.75 | ||||||||||||
Option Contracts(4) | Option model | 3 | (2 | ) | Market price per MMbtu | $ | 3.87 | - | $ | 4.32 | ||||||||||||||
Gas volatility | 25.05 | % | - | 35.07 | % | |||||||||||||||||||
Level 3 Energy Contracts | $ | 4 | $ | (6 | ) | |||||||||||||||||||
(1) | TEP comprises $2 million of the forward contract assets and $2 million of the forward contract liabilities at June 30, 2014. | |||||||||||||||||||||||
(2) | TEP comprises $1 million of the option contract assets and $1 million of the option contract liabilities at June 30, 2014. | |||||||||||||||||||||||
(3) | TEP comprises $1 million of the forward contract assets and $3 million of the forward contract liabilities at December 31, 2013. | |||||||||||||||||||||||
(4) | TEP comprises less than $1 million of the option contract assets at December 31, 2013. | |||||||||||||||||||||||
Schedule of Reconciliation of Changes in Fair Value of Assets and Liabilities | ' | |||||||||||||||||||||||
The following tables present a reconciliation of changes in the fair value of assets and liabilities classified as Level 3 in the fair value hierarchy: | ||||||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Balances at March 31, 2014 | $ | — | $ | (2 | ) | |||||||||||||||||||
Realized/Unrealized Gains/(Losses) Recorded to: | ||||||||||||||||||||||||
Net Regulatory Assets/Liabilities – Derivative Instruments | 3 | 2 | ||||||||||||||||||||||
Settlements | (2 | ) | — | |||||||||||||||||||||
Balances at June 30, 2014 | $ | 1 | $ | — | ||||||||||||||||||||
Total Gains/(Losses) Attributable to the Change in Unrealized Gains/(Losses) Relating to Assets/Liabilities Still Held at the End of the Period | $ | 3 | $ | 3 | ||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Balances at December 31, 2013 | $ | (2 | ) | $ | (2 | ) | ||||||||||||||||||
Realized/Unrealized Gains/(Losses) Recorded to: | ||||||||||||||||||||||||
Net Regulatory Assets/Liabilities – Derivative Instruments | 5 | 1 | ||||||||||||||||||||||
Settlements | (2 | ) | 1 | |||||||||||||||||||||
Balances at June 30, 2014 | $ | 1 | $ | — | ||||||||||||||||||||
Total Gains/(Losses) Attributable to the Change in Unrealized Gains/(Losses) Relating to Assets/Liabilities Still Held at the End of the Period | $ | 2 | $ | 1 | ||||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Balances at March 31, 2013 | $ | (3 | ) | $ | (1 | ) | ||||||||||||||||||
Realized/Unrealized Gains/(Losses) Recorded to: | ||||||||||||||||||||||||
Net Regulatory Assets/Liabilities – Derivative Instruments | (2 | ) | — | |||||||||||||||||||||
Settlements | — | — | ||||||||||||||||||||||
Balances at June 30, 2013 | $ | (5 | ) | $ | (1 | ) | ||||||||||||||||||
Total Gains/(Losses) Attributable to the Change in Unrealized Gains/(Losses) Relating to Assets/Liabilities Still Held at the End of the Period | $ | (4 | ) | $ | — | |||||||||||||||||||
UNS Energy | TEP | |||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Balances at December 31, 2012 | $ | (5 | ) | $ | — | |||||||||||||||||||
Realized/Unrealized Gains/(Losses) Recorded to: | ||||||||||||||||||||||||
Net Regulatory Assets/Liabilities – Derivative Instruments | (2 | ) | (1 | ) | ||||||||||||||||||||
Settlements | 2 | — | ||||||||||||||||||||||
Balances at June 30, 2013 | $ | (5 | ) | $ | (1 | ) | ||||||||||||||||||
Total Gains/(Losses) Attributable to the Change in Unrealized Gains/(Losses) Relating to Assets/Liabilities Still Held at the End of the Period | $ | (3 | ) | $ | (1 | ) | ||||||||||||||||||
Balance Sheets Carrying Value Estimated Fair Values of Financial Instruments | ' | |||||||||||||||||||||||
The carrying values recorded on the balance sheets and the estimated fair values of our financial instruments include the following: | ||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | ||||||||||||||||||||
Hierarchy | Value | Value | Value | Value | ||||||||||||||||||||
Millions of Dollars | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
TEP Investment in Lease Equity | Level 3 | $ | 36 | $ | 25 | $ | 36 | $ | 25 | |||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-Term Debt | ||||||||||||||||||||||||
UNS Energy | Level 2 | $ | 1,677 | $ | 1,771 | $ | 1,507 | $ | 1,521 | |||||||||||||||
TEP | Level 2 | 1,372 | 1,435 | 1,223 | 1,214 | |||||||||||||||||||
INCOME_TAXES_INCOME_TAXES_Tabl
INCOME TAXES INCOME TAXES (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||||||||||
Income tax expense differs from the amount of income tax determined by applying the United States statutory federal income tax rate of 35% to pre-tax income due to the following: | ||||||||||||||||
UNS Energy | TEP | |||||||||||||||
Three Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Millions of Dollars | ||||||||||||||||
Federal Income Tax Expense at Statutory Rate | $ | 24 | $ | 14 | $ | 22 | $ | 12 | ||||||||
State Income Tax Expense, Net of Federal Deduction | 3 | 2 | 3 | 2 | ||||||||||||
Federal/State Tax Credits | (2 | ) | — | (2 | ) | — | ||||||||||
Investment Tax Credit Basis Adjustment - Creation of Regulatory Asset | — | (11 | ) | — | (11 | ) | ||||||||||
Other | — | (1 | ) | — | (1 | ) | ||||||||||
Total Federal and State Income Tax Expense | $ | 25 | $ | 4 | $ | 23 | $ | 2 | ||||||||
UNS Energy | TEP | |||||||||||||||
Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Millions of Dollars | ||||||||||||||||
Federal Income Tax Expense at Statutory Rate | $ | 32 | $ | 20 | $ | 27 | $ | 12 | ||||||||
State Income Tax Expense, Net of Federal Deduction | 4 | 3 | 3 | 2 | ||||||||||||
Federal/State Tax Credits | (2 | ) | — | (2 | ) | — | ||||||||||
Investment Tax Credit Basis Adjustment - Creation of Regulatory Asset | — | (11 | ) | — | (11 | ) | ||||||||||
Other | 1 | (1 | ) | — | — | |||||||||||
Total Federal and State Income Tax Expense | $ | 35 | $ | 11 | $ | 28 | $ | 3 | ||||||||
RECLASSIFICATIONS_FROM_ACCUMUL1
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Statement of Comprehensive Income [Abstract] | ' | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
The reclassifications from Accumulated Other Comprehensive Income (AOCI) by component are as follows: | |||||||||||
UNS Energy | |||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Other Comprehensive Income | Affected Line Item in the Income Statement | |||||||||
Three Months Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
Thousands of Dollars | |||||||||||
Realized Losses on Cash Flow Hedges | |||||||||||
Interest Rate Swaps - Debt | $ | (349 | ) | $ | (346 | ) | Interest Expense Long-Term Debt | ||||
Interest Rate Swaps - Capital Leases | (602 | ) | (604 | ) | Interest Expense Capital Leases | ||||||
Commodity Contracts | (143 | ) | (191 | ) | Purchased Energy/Purchased Power | ||||||
Tax Benefit | 430 | 451 | |||||||||
Realized Losses on Cash Flow Hedges, Net of Taxes | (664 | ) | (690 | ) | |||||||
Amortization of SERP | |||||||||||
Prior Service Cost and Net Loss | (40 | ) | (111 | ) | Operations and Maintenance | ||||||
Tax Benefit | 15 | 43 | |||||||||
Amortization, Net of Taxes | (25 | ) | (68 | ) | |||||||
Total Reclassifications from Other Comprehensive Income for the Period | $ | (689 | ) | $ | (758 | ) | |||||
UNS Energy | |||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Other Comprehensive Income | Affected Line Item in the Income Statement | |||||||||
Six Months Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
Thousands of Dollars | |||||||||||
Realized Losses on Cash Flow Hedges | |||||||||||
Interest Rate Swaps - Debt | $ | (702 | ) | $ | (676 | ) | Interest Expense Long-Term Debt | ||||
Interest Rate Swaps - Capital Leases | (1,198 | ) | (1,208 | ) | Interest Expense Capital Leases | ||||||
Commodity Contracts | (143 | ) | (191 | ) | Purchased Energy/Purchased Power | ||||||
Tax Benefit | 734 | 820 | |||||||||
Realized Losses on Cash Flow Hedges, Net of Taxes | (1,309 | ) | (1,255 | ) | |||||||
Amortization of SERP | |||||||||||
Prior Service Cost and Net Loss | (79 | ) | (222 | ) | Operations and Maintenance | ||||||
Tax Benefit | 30 | 85 | |||||||||
Amortization, Net of Taxes | (49 | ) | (137 | ) | |||||||
Total Reclassifications from Other Comprehensive Income for the Period | $ | (1,358 | ) | $ | (1,392 | ) | |||||
TEP | |||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Other Comprehensive Income | Affected Line Item in the Income Statement | |||||||||
Three Months Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
Thousands of Dollars | |||||||||||
Realized Losses on Cash Flow Hedges | |||||||||||
Interest Rate Swaps - Debt | $ | (293 | ) | $ | (293 | ) | Interest Expense Long-Term Debt | ||||
Interest Rate Swaps - Capital Leases | (602 | ) | (604 | ) | Interest Expense Capital Leases | ||||||
Commodity Contracts | (143 | ) | (191 | ) | Purchased Energy/Purchased Power | ||||||
Tax Benefit | 408 | 429 | |||||||||
Realized Losses on Cash Flow Hedges, Net of Taxes | (630 | ) | (659 | ) | |||||||
Amortization of SERP | |||||||||||
Prior Service Cost and Net Loss | (40 | ) | (111 | ) | Other Expense | ||||||
Tax Benefit | 15 | 43 | |||||||||
Amortization, Net of Taxes | (25 | ) | (68 | ) | |||||||
Total Reclassifications from Other Comprehensive Income for the Period | $ | (655 | ) | $ | (727 | ) | |||||
TEP | |||||||||||
Details About Accumulated Other Comprehensive Income Components | Amount Reclassified from Other Comprehensive Income | Affected Line Item in the Income Statement | |||||||||
Six Months Ended June 30, | |||||||||||
2014 | 2013 | ||||||||||
Thousands of Dollars | |||||||||||
Realized Losses on Cash Flow Hedges | |||||||||||
Interest Rate Swaps - Debt | $ | (591 | ) | $ | (575 | ) | Interest Expense Long-Term Debt | ||||
Interest Rate Swaps - Capital Leases | (1,198 | ) | (1,208 | ) | Interest Expense Capital Leases | ||||||
Commodity Contracts | (143 | ) | (191 | ) | Purchased Energy/Purchased Power | ||||||
Tax Benefit | 692 | 781 | |||||||||
Realized Losses on Cash Flow Hedges, Net of Taxes | (1,240 | ) | (1,193 | ) | |||||||
Amortization of SERP | |||||||||||
Prior Service Cost and Net Loss | (79 | ) | (222 | ) | Other Expense | ||||||
Tax Benefit | 30 | 85 | |||||||||
Amortization, Net of Taxes | (49 | ) | (137 | ) | |||||||
Total Reclassifications from Other Comprehensive Income for the Period | $ | (1,289 | ) | $ | (1,330 | ) |
NATURE_OF_OPERATIONS_AND_FINAN2
NATURE OF OPERATIONS AND FINANCIAL STATEMENT PRESENTATION (Additional Information) (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Deferred Income Taxes Current And Noncurrent [Member] | ' |
Quantifying Misstatement in Current Year Financial Statements, Amount | $7 |
Deferred Income Taxes Current And Noncurrent [Member] | TUCSON ELECTRIC POWER COMPANY | ' |
Quantifying Misstatement in Current Year Financial Statements, Amount | 7 |
Capital Lease Obligation Current And Noncurrent [Member] | ' |
Quantifying Misstatement in Current Year Financial Statements, Amount | 18 |
Capital Lease Obligation Current And Noncurrent [Member] | TUCSON ELECTRIC POWER COMPANY | ' |
Quantifying Misstatement in Current Year Financial Statements, Amount | $18 |
PENDING_MERGER_WITH_FORTIS_Pen
PENDING MERGER WITH FORTIS (Pending Merger With Fortis) (Details) (USD $) | Jun. 30, 2014 | Dec. 11, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, except Per Share data, unless otherwise specified | Fortis Inc | Total Bill Credit Refunds Over 5 Years [Member] | Bill Credit Refunds in Year 1 [Member] | Annual Bill Credit Refunds in Years 1Through 5 [Member] | May Through September [Member] | |
TUCSON ELECTRIC POWER COMPANY | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Share price | ' | $60.25 | ' | ' | ' | ' |
Customer Bill Credits Required Per Merger Settlement Agreement Subject to Regulatory Approval | ' | ' | $30 | $10 | $5 | ' |
Dividend Restrictions Per Merger Settlement Agreement Pending Regulatory Approval | 60.00% | ' | ' | ' | ' | ' |
Required Equity Capitalization for Regulated Utilities Prior to Dividend Payment | 50.00% | ' | ' | ' | ' | ' |
Required Equity Investment By Acquiring Company Per Merger Settlement Agreement Subject to Regulatory Approval | 220 | ' | ' | ' | ' | ' |
Merger-Related Costs Expected Upon Closing of Merger Subject to Regulatory Approval | $19 | ' | ' | ' | ' | $15 |
REGULATORY_MATTERS_Cost_Recove
REGULATORY MATTERS (Cost Recovery Mechanisms) (Details) (USD $) | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 10 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2014 | Jun. 30, 2014 | 31-May-14 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | 31-May-14 | Jun. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Dec. 31, 2014 | |
TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | UNS Electric | UNS Electric | UNS Electric | May Through September [Member] | October Through March [Member] | Scenario, Forecast [Member] | |||
TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | |||||||||||
Schedule of Regulatory Cost Recovery Mechanisms [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PPFAC Rate | ' | ' | ' | ' | ' | ' | 0.0014 | ' | ' | ' | 0.001 | 0.005 | ' |
Mine Fire Cost Deferral | ' | ' | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Mine Fire Insurance Settlement Proceeds | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental Compliance Adjustor Rate | ' | ' | 0.000049 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulated Operating Revenue, Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 |
Transmission Cost Adjustor Rate | ' | ' | ' | ' | ' | ' | ' | 0.00114 | ' | ' | ' | ' | ' |
Purchased Gas Adjustor Credit | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Energy Efficiency Performance Incentive | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cap on increase in lost fixed cost recovery rate | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lost Fixed Cost Recovery Requested | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' |
Revenue Recognized Under Lost Fixed Cost Recovery Mechanism | ' | $7,654,000 | ' | ' | $6,121,000 | $0 | ' | ' | ' | $2,000,000 | ' | ' | ' |
BUSINESS_SEGMENTS_Reporting_De
BUSINESS SEGMENTS (Reporting) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 3 |
BUSINESS_SEGMENTS_Reconciliati
BUSINESS SEGMENTS (Reconciliation of Income Statement Items from Segments to Consolidation) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ||||
Revenues | $386,606,000 | $365,217,000 | $719,998,000 | $697,358,000 | ||||
Operating Revenues-Intersegment | 0 | [1] | 0 | [1] | 0 | [1] | 0 | |
Income Before Income Taxes | 67,191,000 | 38,293,000 | 92,334,000 | 56,996,000 | ||||
Net Income | 42,354,000 | 34,618,000 | 57,829,000 | 45,963,000 | ||||
Reconciling Adjustments [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ||||
Revenues | 0 | 0 | 0 | 0 | ||||
Operating Revenues-Intersegment | -9,000,000 | [1] | -9,000,000 | [1] | -18,000,000 | [1] | -19,000,000 | |
Income Before Income Taxes | 0 | 0 | 0 | 0 | ||||
Net Income | 0 | 0 | 0 | 0 | ||||
TUCSON ELECTRIC POWER COMPANY | Operating Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ||||
Revenues | 318,000,000 | 300,000,000 | 569,000,000 | 543,000,000 | ||||
Operating Revenues-Intersegment | 4,000,000 | [1] | 4,000,000 | [1] | 8,000,000 | [1] | 9,000,000 | |
Income Before Income Taxes | 61,467,000 | 32,439,000 | 75,977,000 | 35,000 | ||||
Net Income | 38,725,000 | 30,787,000 | 47,897,000 | 32,266,000 | ||||
UNS Electric | Operating Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ||||
Revenues | 47,000,000 | 44,000,000 | 87,000,000 | 80,000,000 | ||||
Operating Revenues-Intersegment | 0 | [1] | 0 | [1] | 1,000,000 | [1] | 1,000,000 | [1] |
Income Before Income Taxes | 6,000,000 | 6,000,000 | 9,000,000 | 9,000,000 | ||||
Net Income | 4,000,000 | 4,000,000 | 6,000,000 | 6,000,000 | ||||
UNS Gas | Operating Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ||||
Revenues | 22,000,000 | 21,000,000 | 64,000,000 | 73,000,000 | ||||
Operating Revenues-Intersegment | 1,000,000 | [1] | 1,000,000 | [1] | 1,000,000 | [1] | 1,000,000 | |
Income Before Income Taxes | 0 | 0 | 8,000,000 | 13,000,000 | ||||
Net Income | 0 | 0 | 5,000,000 | 8,000,000 | ||||
Other | Operating Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' | ||||
Revenues | 0 | 0 | 0 | [2] | 1,000,000 | |||
Operating Revenues-Intersegment | 4,000,000 | [1] | 4,000,000 | [1] | 8,000,000 | [1],[2] | 8,000,000 | |
Income Before Income Taxes | 0 | 0 | -1,000,000 | 0 | ||||
Net Income | ($1,000,000) | $0 | ($1,000,000) | [2] | $0 | |||
[1] | Operating Revenues-Intersegment includes common costs (system, facilities, etc.) allocated to affiliates on a cost-causative basis and recorded as revenue by TEP, sales of power between TEP and UNS Electric at third-party market prices, control area services provided by TEP to UNS Electric based on a FERC-approved tariff, sales of gas by UNS Gas at third-party market prices for use in UNS Electric's generating facilities, and supplemental workforce charges (primarily meter reading services) provided to the utilities by an unregulated affiliate. | |||||||
[2] | Other includes the UNS Energy and UES holding companies, Millennium, and UED. |
DEBT_CREDIT_FACILITIES_AND_CAP1
DEBT, CREDIT FACILITIES, AND CAPITAL LEASE OBLIGATIONS (Capital Leases) (Details) (TUCSON ELECTRIC POWER COMPANY, Springerville Coal Handling Facilities Lease [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
TUCSON ELECTRIC POWER COMPANY | Springerville Coal Handling Facilities Lease [Member] | ' |
Debt Instrument [Line Items] | ' |
Increase in Capital Lease Obligation | $109 |
Fixed price to acquire leased interest in facilities | 120 |
Increase in utility plant under capital lease | 109 |
Sales Price of Leased Interest In Facilities | $24 |
DEBT_CREDIT_FACILITIES_AND_CAP2
DEBT, CREDIT FACILITIES, AND CAPITAL LEASE OBLIGATIONS (Debt) (Detail) (USD $) | 6 Months Ended | 1 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 18, 2014 | |
TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | Subsequent Event [Member] | |||
Unsecured Debt [Member] | Unsecured Debt [Member] | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | Revolving Credit Facility [Member] | |||||
TUCSON ELECTRIC POWER COMPANY | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | $150,000,000 | $91,000,000 | ' | ' | ' | ' |
Fixed interest rate of long-term debt | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' |
Repayment of outstanding credit facility | 129,000,000 | 48,000,000 | 105,000,000 | 48,000,000 | ' | ' | 90,000,000 | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | 82,000,000 | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | 184,000,000 | ' | 134,000,000 |
Guaranty Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' |
Letters of Credit Outstanding, Amount | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | ' |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES, AND ENVIRONMENTAL MATTERS (Commitments) (Details) (USD $) | Jun. 30, 2014 | |
In Millions, unless otherwise specified | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | |
2014 | $0 | |
2015 | 152 | |
2016 | 9 | |
2017 | 9 | |
2018 | 8 | |
Thereafter | 8 | |
Total | 186 | |
Springerville Coal Handling Facilities Lease [Member] | ' | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | |
2014 | 0 | [1] |
2015 | 120 | [1] |
2016 | 0 | [1] |
2017 | 0 | [1] |
2018 | 0 | [1] |
Thereafter | 0 | [1] |
Total | 120 | [1] |
Fuel [Member] | ' | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | |
2014 | 0 | |
2015 | 9 | |
2016 | 9 | |
2017 | 9 | |
2018 | 8 | |
Thereafter | 8 | |
Total | 43 | |
Purchased Power [Member] | ' | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | |
2014 | 0 | |
2015 | 23 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Total | 23 | |
TUCSON ELECTRIC POWER COMPANY | ' | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | |
2014 | 0 | |
2015 | 143 | |
2016 | 8 | |
2017 | 8 | |
2018 | 8 | |
Thereafter | 8 | |
Total | 175 | |
TUCSON ELECTRIC POWER COMPANY | Springerville Coal Handling Facilities Lease [Member] | ' | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | |
2014 | 0 | [1] |
2015 | 120 | [1] |
2016 | 0 | [1] |
2017 | 0 | [1] |
2018 | 0 | [1] |
Thereafter | 0 | [1] |
Total | 120 | [1] |
TUCSON ELECTRIC POWER COMPANY | Fuel [Member] | ' | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | |
2014 | 0 | |
2015 | 8 | |
2016 | 8 | |
2017 | 8 | |
2018 | 8 | |
Thereafter | 8 | |
Total | 40 | |
TUCSON ELECTRIC POWER COMPANY | Purchased Power [Member] | ' | |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' | |
2014 | 0 | |
2015 | 15 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Total | $15 | |
[1] | (1)Â In April 2014, TEP entered into agreements to purchase certain Springerville Coal Handling Facilities leased interests. See Note 5. |
COMMITMENTS_CONTINGENCIES_AND_3
COMMITMENTS, CONTINGENCIES, AND ENVIRONMENTAL MATTERS (UNS & TEP Contingencies) (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | San Juan [Member] | Tucson to Nogales [Member] | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | Surface Mine Possible Additional Royalty Assessment, Coal Supplier [Member] | Tucson Electric Power Company's Share of Surface Mine Possible Additional Royalty Assessment [Member] | Assessment for Coal Severance Tax, Coal Supplier [Member] | Tucson Electric Power Company's Share of Assessment for Coal Severance Tax [Member] | Total Bill Credit Refunds Over 5 Years [Member] |
mi | San Juan [Member] | Four Corner [Member] | Tucson to Nogales [Member] | Tucson to Nogales [Member] | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | TUCSON ELECTRIC POWER COMPANY | |||||
San Juan [Member] | San Juan [Member] | Four Corner [Member] | Four Corner [Member] | ||||||||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer Bill Credits Required Per Merger Settlement Agreement Subject to Regulatory Approval | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30 |
Percentage of ownership in generating station | ' | ' | ' | ' | 50.00% | 7.00% | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Ownership In Generating Units | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimate of Possible Loss Contingency | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 1 | 30 | 1 | ' |
TEP accrued an estimated loss related to Four Corners Generating Station | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
TEP's share of reclamation costs at expiration dates of the coal supply agreements | ' | ' | 44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
TEP's recorded obligations for final mine reclamation costs | ' | ' | 20 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transmission line from Tucson to Nogales | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transmission Line, in KV | ' | 345 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Impairment Charges | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' |
Regulatory Assets | ' | ' | ' | ' | ' | ' | ' | $5 | ' | ' | ' | ' | ' |
COMMITMENTS_CONTINGENCIES_AND_4
COMMITMENTS, CONTINGENCIES, AND ENVIRONMENTAL MATTERS (Environmental Matters) (Detail) (TUCSON ELECTRIC POWER COMPANY, USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | |
Navajo [Member] | ' | |
Commitments And Contingencies [Line Items] | ' | |
Estimated Future Capital Cost For Mercury Emission Control Equipment | $1 | |
Estimated Future Annual Operating Costs for Mercury Emission Control Equipment | 1 | |
Estimated Capital Expenditure for Selective Catalytic Reduction | 42 | [1] |
Estimated Future Change in Operating Cost for Selective Catalytic Reduction | 1 | [1] |
Better Than BART Agreement Year by which to Shut Down One Unit | '2020 | |
Better than BART Agreement, Year by which SCR Technology to be Installed | '2030 | |
Better than BART Agreement, Year by which Coal Fired Operation will Cease | '2044 | |
Estimated Capital Expenditure Related to Installation of Baghouses | 43 | |
Estimated Future Annual Operating Costs For Mercury Emission Control Equipment and Baghouses | 1 | |
Jointly Owned Utility Plant, Proportionate Ownership Share | 7.50% | |
Four Corner [Member] | ' | |
Commitments And Contingencies [Line Items] | ' | |
Estimated Future Capital Cost For Mercury Emission Control Equipment | 1 | |
Estimated Future Annual Operating Costs for Mercury Emission Control Equipment | 1 | |
Estimated Capital Expenditure for Selective Catalytic Reduction | 35 | [2] |
Estimated Future Change in Operating Cost for Selective Catalytic Reduction | 2 | [2] |
Jointly Owned Utility Plant, Proportionate Ownership Share | 7.00% | |
Springerville [Member] | ' | |
Commitments And Contingencies [Line Items] | ' | |
Estimated Future Capital Cost For Mercury Emission Control Equipment | 5 | [3] |
Estimated Future Annual Operating Costs for Mercury Emission Control Equipment | 1 | [3] |
San Juan [Member] | ' | |
Commitments And Contingencies [Line Items] | ' | |
Estimated Capital Expenditure for Selective Non Catalytic Reduction | 35 | [4] |
Estimated Future Change in Operating Cost for Selective Catalytic Reduction | 6 | |
Estimated Future Change in Operating Cost for Selective Non Catalytic Reduction | 1 | [4] |
Jointly Owned Utility Plant, Proportionate Ownership Share | 50.00% | |
Jointly Owned Utility Plant, Net Ownership Amount | 112 | |
San Juan [Member] | Minimum [Member] | ' | |
Commitments And Contingencies [Line Items] | ' | |
Estimated Capital Expenditure for Selective Catalytic Reduction | 180 | |
San Juan [Member] | Maximum [Member] | ' | |
Commitments And Contingencies [Line Items] | ' | |
Estimated Capital Expenditure for Selective Catalytic Reduction | 200 | |
Sundt [Member] | ' | |
Commitments And Contingencies [Line Items] | ' | |
Estimated Capital Expenditure for Selective Non Catalytic Reduction | 12 | [5] |
Jointly Owned Utility Plant, Net Ownership Amount | 27 | |
Sundt [Member] | Minimum [Member] | ' | |
Commitments And Contingencies [Line Items] | ' | |
Estimated Future Change in Operating Cost for Selective Non Catalytic Reduction | 5 | [5] |
Sundt [Member] | Maximum [Member] | ' | |
Commitments And Contingencies [Line Items] | ' | |
Estimated Future Change in Operating Cost for Selective Non Catalytic Reduction | $6 | [5] |
[1] | The EPA is considering a better-than-BART plan wherein: one unit at Navajo will be shut down by 2020; SCR (or the equivalent) will be installed on the remaining two units by 2030; and conventional coal-fired generation will cease by December 2044. TEP expects the EPA to reach a decision in 2014. In addition, the installation of SCR technology could increase particulates which may require that baghouses be installed. TEP owns 7.5% of Navajo. TEP's share of the capital cost of baghouses in addition to the SCR costs reflected in the table above is approximately $43 million with O&M on the baghouses expected to be less than $1 million per year. | |
[2] | In December 2013, APS, on behalf of the co-owners of Four Corners, notified the EPA that they have chosen an alternative BART compliance strategy; as a result, APS closed Units 1, 2, and 3 in December 2013 and has agreed to the installation of SCR on Units 4 & 5 by July 2018. TEP owns 7% of Four Corners Units 4 and 5. | |
[3] | Total capital expenditures and annual O&M expenses represent amounts for both Springerville Units 1 & 2, with estimated costs split equally between the two units. TEP will own 49.5% of Springerville Unit 1 upon close of the lease option purchases in January 2015; after the completion of such purchases, third party owners will be responsible for 50.5% of environmental costs attributable to Springerville Unit 1. TEP will continue to be responsible for 100% of environmental costs attributable to Springerville Unit 2. | |
[4] | The Federal Implementation Plan (FIP) for San Juan requires SCRs for which TEP estimates its share of capital costs will be $180-$200 million with annual O&M of $6 million. As part of a proposal for an alternative, Public Service Company of New Mexico (PNM), the State of New Mexico, and the EPA signed a non-binding agreement in which PNM agreed to close Units 2 and 3 by December 2017 and install selective non-catalytic reduction (SNCR) on Units 1 and 4 by January 2016 or later depending on the timing of EPA approvals. Estimated costs for SNCR are reflected in the table above. The State of New Mexico has submitted this plan to the EPA and the EPA has proposed to approve the alternative state plan which would replace the existing FIP. TEP expects the EPA will reach a final decision in 2014. TEP owns 50% of San Juan Unit 2. At June 30, 2014, the net book value of TEP's share in San Juan Unit 2 was $112 million. If Unit 2 is retired early, TEP expects to request ACC approval to recover, over a reasonable time period, all costs associated with the early closure of the unit. | |
[5] | In June 2014, the EPA issued a final rule that would require TEP to either (i) install SNCR and dry sorbent injection technology on Unit 4 by mid-2017 or (ii) eliminate the use of coal by the end of 2017 as a better-than-BART alternative. TEP is required to notify the EPA of its decision by March 2017. At June 30, 2014, the net book value of the Sundt coal handling facilities was $27 million. If the coal handling facilities are retired early, TEP expects to request ACC approval to recover, over a reasonable time period, all the remaining costs of the coal handling facilities. |
PLANNED_PURCHASE_OF_GASFIRED_G1
PLANNED PURCHASE OF GAS-FIRED GENERATION FACILITY (Additional Information) (Details) (Entegra, Gila River Generating Station Unit 3 [Member], USD $) | Dec. 23, 2013 |
In Millions, unless otherwise specified | MW |
Unusual or Infrequent Item [Line Items] | ' |
Planned Purchase of Gas-Fired Generation Facility | $219 |
Generating capacity of plant in MW | 550 |
TUCSON ELECTRIC POWER COMPANY | ' |
Unusual or Infrequent Item [Line Items] | ' |
Planned Purchase of Gas-Fired Generation Facility | 164 |
Generating capacity of plant in MW | 413 |
Percentage of ownership in Generating Unit | 75.00% |
UNS ELECTRIC, INC. | ' |
Unusual or Infrequent Item [Line Items] | ' |
Planned Purchase of Gas-Fired Generation Facility | $55 |
Generating capacity of plant in MW | 137 |
Percentage of ownership in Generating Unit | 25.00% |
EMPLOYEE_BENEFIT_PLANS_Compone
EMPLOYEE BENEFIT PLANS (Components of Net Periodic Benefit Cost) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Pension Benefits [Member] | ' | ' | ' | ' |
Components of Net Periodic Benefit Plan Cost | ' | ' | ' | ' |
Service Cost | $2 | $3 | $5 | $6 |
Interest Cost | 5 | 4 | 9 | 8 |
Expected Return on Plan Assets | -5 | -5 | -11 | -10 |
Amortization of Actuarial (Gain) Loss | -1 | -2 | -2 | -4 |
Net Periodic Benefit Plan Cost | 3 | 4 | 5 | 8 |
Other Retiree Benefits [Member] | ' | ' | ' | ' |
Components of Net Periodic Benefit Plan Cost | ' | ' | ' | ' |
Service Cost | 1 | 1 | 2 | 2 |
Interest Cost | 0 | 1 | 1 | 1 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Actuarial (Gain) Loss | 0 | 0 | 0 | 0 |
Net Periodic Benefit Plan Cost | $1 | $2 | $3 | $3 |
SHAREBASED_COMPENSATION_PLANS_
SHARE-BASED COMPENSATION PLANS (Restricted Stock Units) (Detail) (Restricted Stock [Member], USD $) | 1 Months Ended | |
31-May-14 | Feb. 28, 2014 | |
Director [Member] | Management [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Granted, Shares | 7,486 | 16,910 |
Grant Date Fair Value | $60.11 | $60.39 |
SHAREBASED_COMPENSATION_PLANS_1
SHARE-BASED COMPENSATION PLANS (Summary of Performance Shares Awarded and Grant Date Fair Value) (Detail) (USD $) | 1 Months Ended |
Feb. 28, 2014 | |
Performance Share Awards [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Granted, Shares | 33,820 |
Market Condition Awards [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Date Fair Value | 57.47 |
Performance Condition [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Grant Date Fair Value | 60.39 |
SHAREBASED_COMPENSATION_PLANS_2
SHARE-BASED COMPENSATION PLANS (Additional Information) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share based compensation expense, net of amounts capitalized | $1 | $1 | $2 | $1 |
Total unrecognized compensation expense on non-vested share-based compensation | 5 | ' | 5 | ' |
Number Of Shares Awarded But Not Yet Issued | 500,000 | ' | 500,000 | ' |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share based compensation expense, net of amounts capitalized | 1 | 1 | 1 | 1 |
Total unrecognized compensation expense on non-vested share-based compensation | $4 | ' | $4 | ' |
Effects_of_Dilutive_Common_Sto
(Effects of Dilutive Common Stock on Weighted-Average Number of Shares) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator: | ' | ' | ' | ' |
Net Income | $42,354 | $34,618 | $57,829 | $45,963 |
Weighted Average Shares of Common Stock Outstanding: | ' | ' | ' | ' |
Common Shares Issued | 41,659 | 41,427 | 41,639 | 41,404 |
Fully Vested Deferred Stock Units | 122 | 171 | 120 | 165 |
Total Weighted Average Shares of Common Stock Outstanding and Participating Securities - Basic | 41,781 | 41,598 | 41,759 | 41,569 |
Effect of Dilutive Securities: | ' | ' | ' | ' |
Options and Stock Issuable Under Share-Based Compensation Plans | 364 | 323 | 356 | 329 |
Total Shares - Diluted | 42,145 | 41,921 | 42,115 | 41,898 |
Shares_of_Common_Stock_Exclude
(Shares of Common Stock Excluded from Computation of Diluted Earning Per Share) (Detail) | 6 Months Ended |
Jun. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 12,000 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Reconciliation of Net Income to Net Cash Flows from Operating Activities) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Supplemental Cash Flow Information [Line Items] | ' | ' | ' | ' |
Net Income | $42,354 | $34,618 | $57,829 | $45,963 |
Adjustments to Reconcile Net Income To Net Cash Flows from Operating Activities | ' | ' | ' | ' |
Depreciation Expense | 39,563 | 36,671 | 78,644 | 72,970 |
Amortization Expense | 6,455 | 8,119 | 12,631 | 16,408 |
Depreciation and Amortization Recorded to Fuel and Operations and Maintenance Expense | ' | ' | 3,977 | 3,516 |
Amortization of Deferred Debt-Related Costs Included in Interest Expense | ' | ' | 1,584 | 1,515 |
Provision for Retail Customer Bad Debts | ' | ' | 1,194 | 936 |
Use of RECs for Compliance | ' | ' | 11,313 | 8,106 |
Deferred Income Taxes | ' | ' | 36,320 | 36,644 |
Investment Tax Credit Basis Adjustment | 0 | -11,000 | 0 | -11,039 |
Pension and Postretirement Expense | ' | ' | 7,884 | 11,391 |
Pension and Postretirement Funding | ' | ' | -5,974 | -8,924 |
Share-Based Compensation Expense | ' | ' | 1,859 | 1,390 |
Allowance for Equity Funds Used During Construction | ' | ' | -4,038 | -2,463 |
Revenue Recognized Under Lost Fixed Cost Recovery Mechanism | ' | ' | -7,654 | ' |
Increase (Decrease) to Reflect PPFAC/PGA Recovery Treatment | -12,517 | 2,074 | -21,437 | -3,294 |
PPFAC Reduction - 2013 TEP Rate Order | ' | ' | 0 | 3,000 |
Changes in Assets and Liabilities which Provided (Used) Cash Exclusive of Changes Shown Separately | ' | ' | ' | ' |
Accounts Receivable | ' | ' | -22,766 | -20,706 |
Materials and Fuel Inventory | ' | ' | -4,413 | 8,777 |
Accounts Payable | ' | ' | -5,875 | -9,576 |
Income Taxes | ' | ' | -88 | -15,980 |
Interest Accrued | ' | ' | 1,305 | -6,885 |
Taxes Other Than Income Taxes | ' | ' | 3,721 | 490 |
Other | ' | ' | -8,259 | 15,413 |
Net Cash Flows—Operating Activities | ' | ' | 137,757 | 147,652 |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Supplemental Cash Flow Information [Line Items] | ' | ' | ' | ' |
Net Income | 38,725 | 30,787 | 47,897 | 32,266 |
Adjustments to Reconcile Net Income To Net Cash Flows from Operating Activities | ' | ' | ' | ' |
Depreciation Expense | 31,080 | 28,861 | 61,891 | 57,418 |
Amortization Expense | 7,377 | 9,052 | 14,476 | 18,275 |
Depreciation and Amortization Recorded to Fuel and Operations and Maintenance Expense | ' | ' | 3,406 | 2,987 |
Amortization of Deferred Debt-Related Costs Included in Interest Expense | ' | ' | 1,285 | 1,216 |
Provision for Retail Customer Bad Debts | ' | ' | 833 | 711 |
Use of RECs for Compliance | ' | ' | 9,884 | 7,414 |
Deferred Income Taxes | ' | ' | 29,641 | 24,883 |
Investment Tax Credit Basis Adjustment | 0 | -11,000 | 0 | -10,751 |
Pension and Postretirement Expense | ' | ' | 6,824 | 9,939 |
Pension and Postretirement Funding | ' | ' | -5,522 | -8,493 |
Share-Based Compensation Expense | ' | ' | 1,496 | 1,108 |
Allowance for Equity Funds Used During Construction | ' | ' | -3,524 | -1,763 |
Revenue Recognized Under Lost Fixed Cost Recovery Mechanism | ' | ' | -6,121 | 0 |
Increase (Decrease) to Reflect PPFAC/PGA Recovery Treatment | -13,061 | 5,274 | -14,791 | 2,914 |
PPFAC Reduction - 2013 TEP Rate Order | ' | ' | 0 | 3,000 |
Changes in Assets and Liabilities which Provided (Used) Cash Exclusive of Changes Shown Separately | ' | ' | ' | ' |
Accounts Receivable | ' | ' | -35,498 | -30,452 |
Materials and Fuel Inventory | ' | ' | -3,936 | 8,923 |
Accounts Payable | ' | ' | 6,019 | -11 |
Income Taxes | ' | ' | -6 | -10,798 |
Interest Accrued | ' | ' | 1,320 | -6,886 |
Taxes Other Than Income Taxes | ' | ' | 5,247 | 2,295 |
Other | ' | ' | -7,779 | 11,347 |
Net Cash Flows—Operating Activities | ' | ' | $113,042 | $115,542 |
SUPPLEMENTAL_CASH_FLOW_INFORMA3
SUPPLEMENTAL CASH FLOW INFORMATION (Non-Cash Transactions) (Details) (TUCSON ELECTRIC POWER COMPANY, USD $) | 1 Months Ended | ||
Apr. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | |
Springerville Unit One Lease [Member] | Unsecured Debt [Member] | Unsecured Debt [Member] | |
Increase in Capital Lease Obligation | $109,000,000 | ' | ' |
Increase in Utility Plant under Capital Lease | 109,000,000 | ' | ' |
Debt instrument, face amount | ' | $150,000,000 | $91,000,000 |
FAIR_VALUE_MEASUREMENTS_AND_DE2
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (Financial Instruments Measured at Fair Value on a Recurring Basis) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash Equivalent | $13 | [1] | $14 | [1] |
Restricted Cash | 2 | [1] | 2 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 23 | [2] | 22 | [2] |
Derivative Assets | 11 | [3] | 7 | [3] |
Total Assets | 49 | 45 | ||
Liabilities | ' | ' | ||
Liabilities | -12 | -15 | ||
Net Total Assets (Liability) | 37 | 30 | ||
Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -5 | [3] | -7 | [3] |
Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -1 | [3] | -1 | [3] |
Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -6 | [4] | -7 | [4] |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 0 | [1] | 0 | [1] |
Restricted Cash | 2 | [1] | 2 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 23 | [2] | 22 | [2] |
Derivative Assets | 5 | [3] | 2 | [3] |
Total Assets | 30 | 26 | ||
Liabilities | ' | ' | ||
Liabilities | -10 | -10 | ||
Net Total Assets (Liability) | 20 | 16 | ||
TUCSON ELECTRIC POWER COMPANY | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -3 | [3] | -2 | [3] |
TUCSON ELECTRIC POWER COMPANY | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -1 | [3] | -1 | [3] |
TUCSON ELECTRIC POWER COMPANY | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -6 | [4] | -7 | [4] |
Level 1 [Member] | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 13 | [1] | 14 | [1] |
Restricted Cash | 2 | [1] | 2 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 0 | [2] | 0 | [2] |
Derivative Assets | 0 | [3] | 0 | [3] |
Total Assets | 15 | 16 | ||
Liabilities | ' | ' | ||
Liabilities | 0 | 0 | ||
Net Total Assets (Liability) | 15 | 16 | ||
Level 1 [Member] | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [3] | 0 | [3] |
Level 1 [Member] | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [3] | 0 | [3] |
Level 1 [Member] | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [4] | 0 | [4] |
Level 1 [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 0 | [1] | 0 | [1] |
Restricted Cash | 2 | [1] | 2 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 0 | [2] | 0 | [2] |
Derivative Assets | 0 | [3] | 0 | [3] |
Total Assets | 2 | 2 | ||
Liabilities | ' | ' | ||
Liabilities | 0 | 0 | ||
Net Total Assets (Liability) | 2 | 2 | ||
Level 1 [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [3] | 0 | [3] |
Level 1 [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [3] | 0 | [3] |
Level 1 [Member] | TUCSON ELECTRIC POWER COMPANY | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [4] | 0 | [4] |
Level 2 [Member] | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 0 | [1] | 0 | [1] |
Restricted Cash | 0 | [1] | 0 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 23 | [2] | 22 | [2] |
Derivative Assets | 5 | [3] | 3 | [3] |
Total Assets | 28 | 25 | ||
Liabilities | ' | ' | ||
Liabilities | -7 | -9 | ||
Net Total Assets (Liability) | 21 | 16 | ||
Level 2 [Member] | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -1 | [3] | -2 | [3] |
Level 2 [Member] | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [3] | 0 | [3] |
Level 2 [Member] | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -6 | [4] | -7 | [4] |
Level 2 [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 0 | [1] | 0 | [1] |
Restricted Cash | 0 | [1] | 0 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 23 | [2] | 22 | [2] |
Derivative Assets | 2 | [3] | 1 | [3] |
Total Assets | 25 | 23 | ||
Liabilities | ' | ' | ||
Liabilities | -7 | -7 | ||
Net Total Assets (Liability) | 18 | 16 | ||
Level 2 [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -1 | [3] | 0 | [3] |
Level 2 [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [3] | 0 | [3] |
Level 2 [Member] | TUCSON ELECTRIC POWER COMPANY | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -6 | [4] | -7 | [4] |
Level 3 [Member] | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 0 | [1] | 0 | [1] |
Restricted Cash | 0 | [1] | 0 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 0 | [2] | 0 | [2] |
Derivative Assets | 6 | [3] | 4 | [3] |
Total Assets | 6 | 4 | ||
Liabilities | ' | ' | ||
Derivative Liability | -5 | -6 | ||
Liabilities | -5 | -6 | ||
Net Total Assets (Liability) | 1 | -2 | ||
Level 3 [Member] | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -4 | [3] | -5 | [3] |
Level 3 [Member] | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -1 | [3] | -1 | [3] |
Level 3 [Member] | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [4] | 0 | [4] |
Level 3 [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 0 | [1] | 0 | [1] |
Restricted Cash | 0 | [1] | 0 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 0 | [2] | 0 | [2] |
Derivative Assets | 3 | [3] | 1 | [3] |
Total Assets | 3 | 1 | ||
Liabilities | ' | ' | ||
Liabilities | -3 | -3 | ||
Net Total Assets (Liability) | 0 | -2 | ||
Level 3 [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -2 | [3] | -2 | [3] |
Level 3 [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -1 | [3] | -1 | [3] |
Level 3 [Member] | TUCSON ELECTRIC POWER COMPANY | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [4] | 0 | [4] |
Netting [Member] | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 0 | [1],[5] | 0 | [1],[5] |
Restricted Cash | 0 | [1],[5] | 0 | [1],[5] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 0 | [2],[5] | 0 | [2],[5] |
Derivative Assets | -3 | [3],[5] | -5 | [3],[5] |
Total Assets | -3 | [5] | -5 | [5] |
Liabilities | ' | ' | ||
Liabilities | 3 | [5] | 5 | [5] |
Net Total Assets (Liability) | 0 | [5] | 0 | [5] |
Netting [Member] | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 3 | [3],[5] | 5 | [3],[5] |
Netting [Member] | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [3],[5] | 0 | [3],[5] |
Netting [Member] | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [4],[5] | 0 | [4],[5] |
Netting [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 0 | [1],[5] | 0 | [1],[5] |
Restricted Cash | 0 | [1],[5] | 0 | [1],[5] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 0 | [2],[5] | 0 | [2],[5] |
Derivative Assets | -2 | [3],[5] | -1 | [3],[5] |
Total Assets | -2 | [5] | -1 | [5] |
Liabilities | ' | ' | ||
Liabilities | 2 | [5] | 1 | [5] |
Net Total Assets (Liability) | 0 | [5] | 0 | [5] |
Netting [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 2 | [3],[5] | 1 | [3],[5] |
Netting [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [3],[5] | 0 | [3],[5] |
Netting [Member] | TUCSON ELECTRIC POWER COMPANY | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | 0 | [4],[5] | 0 | [4],[5] |
Net Fair Value [Member] | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 13 | [1] | 14 | [1] |
Restricted Cash | 2 | [1] | 2 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 23 | [2] | 22 | [2] |
Derivative Assets | 8 | [3] | 2 | [3] |
Total Assets | 46 | 40 | ||
Liabilities | ' | ' | ||
Liabilities | -9 | -10 | ||
Net Total Assets (Liability) | 37 | 30 | ||
Net Fair Value [Member] | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -2 | [3] | -2 | [3] |
Net Fair Value [Member] | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -1 | [3] | -1 | [3] |
Net Fair Value [Member] | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -6 | [4] | -7 | [4] |
Net Fair Value [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' | ||
Assets | ' | ' | ||
Cash Equivalent | 0 | [1] | 0 | [1] |
Restricted Cash | 2 | [1] | 2 | [1] |
Rabbi Trust Investments to Support the Deferred Compensation and SERP | 23 | [2] | 22 | [2] |
Derivative Assets | 3 | [3] | 1 | [3] |
Total Assets | 28 | 25 | ||
Liabilities | ' | ' | ||
Liabilities | -8 | -9 | ||
Net Total Assets (Liability) | 20 | 16 | ||
Net Fair Value [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -1 | [3] | -1 | [3] |
Net Fair Value [Member] | TUCSON ELECTRIC POWER COMPANY | Energy Contracts Cash Flow Hedge [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | -1 | [3] | -1 | [3] |
Net Fair Value [Member] | TUCSON ELECTRIC POWER COMPANY | Interest Rate Swap [Member] | ' | ' | ||
Liabilities | ' | ' | ||
Derivative Liability | ($6) | [4] | ($7) | [4] |
[1] | Cash Equivalents and Restricted Cash represent amounts held in money market funds and certificates of deposit valued at cost, including interest. Cash Equivalents are included in Cash and Cash Equivalents on the balance sheets. Restricted Cash is included in Investments and Other Property – Other on the balance sheets. | |||
[2] | Rabbi Trust Investments include amounts related to deferred compensation and Supplement Executive Retirement Plan (SERP) benefits held in mutual and money market funds valued at quoted prices traded in active markets. These investments are included in Investments and Other Property – Other on the balance sheets. | |||
[3] | Energy Contracts include gas swap agreements (Level 2), power options (Level 2), gas options (Level 3), and forward power purchase and sales contracts (Level 3) entered into to reduce exposure to energy price risk. These contracts are included in Derivative Instruments on the balance sheets. The valuation techniques are described below. | |||
[4] | Interest Rate Swaps are valued based on the 3-month or 6-month London Interbank Offered Rate (LIBOR) or the Securities Industry and Financial Markets Association municipal swap index. These interest rate swaps are included in Derivative Instruments on the balance sheets. | |||
[5] | All energy contracts are subject to legally enforceable master netting arrangements to mitigate credit risk. We have presented the effect of offset by counterparty; however, we present derivatives on a gross basis on the balance sheets. |
FAIR_VALUE_MEASUREMENTS_AND_DE3
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (Cash Flow Hedges) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Derivative [Line Items] | ' |
Estimated loss expected to be reclassified to earnings within the next twelve months | $3 |
TUCSON ELECTRIC POWER COMPANY | ' |
Derivative [Line Items] | ' |
Estimated loss expected to be reclassified to earnings within the next twelve months | $3 |
FAIR_VALUE_MEASUREMENTS_AND_DE4
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (Financial Impact of Derivative Energy Contracts) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Unrealized Net Gain (Loss) Recorded to Regulatory Assets/Liabilities | $1 | ($9) | $5 | $0 |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Unrealized Net Gain (Loss) Recorded to Regulatory Assets/Liabilities | $2 | ($3) | $2 | ($1) |
FAIR_VALUE_MEASUREMENTS_AND_DE5
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (Derivative Volumes) (Details) | Jun. 30, 2014 | Dec. 31, 2013 |
GWh | GWh | |
Power Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivatives Volumes | 1,933 | 1,583 |
Gas Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivatives Volumes | 63,546,000,000 | 33,371,000,000 |
TUCSON ELECTRIC POWER COMPANY | Power Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivatives Volumes | 976 | 779 |
TUCSON ELECTRIC POWER COMPANY | Gas Contracts [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivatives Volumes | 27,176,000,000 | 9,615,000,000 |
FAIR_VALUE_MEASUREMENTS_AND_DE6
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (Level 3 Fair Value Measurements) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Derivative Assets | $11 | [1] | $7 | [1] |
Level 3 [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Derivative Assets | 6 | [1] | 4 | [1] |
Derivative Liability | -5 | -6 | ||
Level 3 [Member] | Market Approach Valuation Technique [Member] | Forward Contracts [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Derivative Assets | 4 | [2] | 1 | [2] |
Derivative Liability | -4 | [2] | -4 | [2] |
Level 3 [Member] | Valuation Technique Option Model [Member] | Options Held [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Derivative Assets | 2 | [3] | 3 | [3] |
Derivative Liability | -1 | [3] | -2 | [3] |
Minimum [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | Forward Contracts [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Market price per MWh | 23.9 | 26.54 | ||
Minimum [Member] | Level 3 [Member] | Valuation Technique Option Model [Member] | Options Held [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Market price per MMbtu | 3.87 | 3.87 | ||
Gas volatility | 21.01% | 25.05% | ||
Maximum [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | Forward Contracts [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Market price per MWh | 57.9 | 51.75 | ||
Maximum [Member] | Level 3 [Member] | Valuation Technique Option Model [Member] | Options Held [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Market price per MMbtu | 4.57 | 4.32 | ||
Gas volatility | 32.10% | 35.07% | ||
TUCSON ELECTRIC POWER COMPANY | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Derivative Assets | 5 | [1] | 2 | [1] |
TUCSON ELECTRIC POWER COMPANY | Level 3 [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Derivative Assets | 3 | [1] | 1 | [1] |
TUCSON ELECTRIC POWER COMPANY | Level 3 [Member] | Market Approach Valuation Technique [Member] | Forward Contracts [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Derivative Assets | 2 | [2] | ' | |
Derivative Liability | -2 | [2] | ' | |
TUCSON ELECTRIC POWER COMPANY | Level 3 [Member] | Valuation Technique Option Model [Member] | Forward Contracts [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Derivative Assets | ' | 1 | [2] | |
Derivative Liability | ' | -3 | [2] | |
TUCSON ELECTRIC POWER COMPANY | Level 3 [Member] | Valuation Technique Option Model [Member] | Options Held [Member] | ' | ' | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' | ||
Derivative Assets | 1 | 1 | ||
Derivative Liability | ($1) | ' | ||
[1] | Energy Contracts include gas swap agreements (Level 2), power options (Level 2), gas options (Level 3), and forward power purchase and sales contracts (Level 3) entered into to reduce exposure to energy price risk. These contracts are included in Derivative Instruments on the balance sheets. The valuation techniques are described below. | |||
[2] | TEP comprises $2 million of the forward contract assets and $2 million of the forward contract liabilities at June 30, 2014. | |||
[3] | TEP comprises $1 million of the option contract assets and $1 million of the option contract liabilities at June 30, 2014. |
FAIR_VALUE_MEASUREMENTS_AND_DE7
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (Schedule of Reconciliation of Changes in Fair Value of Assets and Liabilities) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Schedule Of Reconciliation Of Changes In Fair Value Of Assets And Liabilities [Line Items] | ' | ' | ' | ' |
Beginning balance | $0 | ($3) | ($2) | ($5) |
Realized/Unrealized Gains/(Losses) Recorded to: | ' | ' | ' | ' |
Net Regulatory Assets/Liabilities - Derivative Instruments | 3 | -2 | 5 | -2 |
Settlements | -2 | 0 | -2 | 2 |
Ending balance | 1 | -5 | 1 | -5 |
Gains Losses Attributable To Change In Unrealized Gains Or Losses Relating To Assets Liabilities Still Held At End Of Period | 3 | -4 | 2 | -3 |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Schedule Of Reconciliation Of Changes In Fair Value Of Assets And Liabilities [Line Items] | ' | ' | ' | ' |
Beginning balance | -2 | -1 | -2 | 0 |
Realized/Unrealized Gains/(Losses) Recorded to: | ' | ' | ' | ' |
Net Regulatory Assets/Liabilities - Derivative Instruments | 2 | 0 | 1 | -1 |
Settlements | 0 | 0 | 1 | 0 |
Ending balance | 0 | -1 | 0 | -1 |
Gains Losses Attributable To Change In Unrealized Gains Or Losses Relating To Assets Liabilities Still Held At End Of Period | $3 | $0 | $1 | ($1) |
FAIR_VALUE_MEASUREMENTS_AND_DE8
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (Credit Risk) (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Derivative [Line Items] | ' |
Fair value of derivative instruments | $25 |
Additional collateral if credit-risk contingent features are triggered | 25 |
TUCSON ELECTRIC POWER COMPANY | ' |
Derivative [Line Items] | ' |
Fair value of derivative instruments | 19 |
Additional collateral if credit-risk contingent features are triggered | $19 |
FAIR_VALUE_MEASUREMENTS_AND_DE9
FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (Financial Instruments Not Carried at Fair Value) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Liabilities: | ' | ' |
Long-Term Debt | $1,677,323,000 | $1,507,070,000 |
TUCSON ELECTRIC POWER COMPANY | ' | ' |
Liabilities: | ' | ' |
Long-Term Debt | 1,372,323,000 | 1,223,070,000 |
Carrying Value [Member] | Level 2 [Member] | ' | ' |
Liabilities: | ' | ' |
Long-Term Debt | 1,677,000,000 | 1,507,000,000 |
Carrying Value [Member] | Level 2 [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' |
Liabilities: | ' | ' |
Long-Term Debt | 1,372,000,000 | 1,223,000,000 |
Carrying Value [Member] | Level 3 [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' |
Assets: | ' | ' |
TEP Investment in Lease Equity | 36,000,000 | 36,000,000 |
Fair Value [Member] | Level 2 [Member] | ' | ' |
Liabilities: | ' | ' |
Long-Term Debt | 1,771,000,000 | 1,521,000,000 |
Fair Value [Member] | Level 2 [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' |
Liabilities: | ' | ' |
Long-Term Debt | 1,435,000,000 | 1,214,000,000 |
Fair Value [Member] | Level 3 [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' |
Assets: | ' | ' |
TEP Investment in Lease Equity | $25,000,000 | $25,000,000 |
INCOME_TAXES_Effective_Income_
INCOME TAXES (Effective Income Tax Rate Reconciliation) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $24,000,000 | $14,000,000 | $32,000,000 | $20,000,000 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 3,000,000 | 2,000,000 | 4,000,000 | 3,000,000 |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | -2,000,000 | 0 | -2,000,000 | 0 |
Investment Tax Credit Basis Adjustment | 0 | -11,000,000 | 0 | -11,039,000 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 0 | -1,000,000 | 1,000,000 | -1,000,000 |
Income Tax Expense | 24,837,000 | 3,675,000 | 34,505,000 | 11,033,000 |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 22,000,000 | 12,000,000 | 27,000,000 | 12,000,000 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 3,000,000 | 2,000,000 | 3,000,000 | 2,000,000 |
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount | -2,000,000 | 0 | ' | ' |
Investment Tax Credit Basis Adjustment | 0 | -11,000,000 | 0 | -10,751,000 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 0 | -1,000,000 | 0 | 0 |
Income Tax Expense | $22,742,000 | $1,652,000 | $28,080,000 | $2,909,000 |
RECLASSIFICATIONS_FROM_ACCUMUL2
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT Reclassifications From Accumulated Other Comprehensive Income By Component) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ' | ' | ' | ' |
Tax Benefit | $430 | $451 | $734 | $820 |
Realized Losses on Cash Flow Hedges, Net of Taxes | -664 | -690 | -1,309 | -1,255 |
Amortization of SERP and Defined Benefit Plans | ' | ' | ' | ' |
Prior Service Costs | -40 | -111 | -79 | -222 |
Tax Benefit | 15 | 43 | 30 | 85 |
Amortization, Net of Taxes | -25 | -68 | -49 | -137 |
Total Reclassification from Other Comprehensive Income for the Period | -689 | -758 | -1,358 | -1,392 |
TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ' | ' | ' | ' |
Tax Benefit | 408 | 429 | 692 | 781 |
Realized Losses on Cash Flow Hedges, Net of Taxes | -630 | -659 | -1,240 | -1,193 |
Amortization of SERP and Defined Benefit Plans | ' | ' | ' | ' |
Prior Service Costs | -40 | -111 | -79 | -222 |
Tax Benefit | 15 | 43 | 30 | 85 |
Amortization, Net of Taxes | -25 | -68 | -49 | -137 |
Total Reclassification from Other Comprehensive Income for the Period | -655 | -727 | -1,289 | -1,330 |
Interest Rate Contract Long Term Debt [Member] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), realized Gain (Loss) on Derivatives Arising During Period, before Tax | -349 | -346 | -702 | -676 |
Interest Rate Contract Long Term Debt [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), realized Gain (Loss) on Derivatives Arising During Period, before Tax | -293 | -293 | -591 | -575 |
Interest Rate contract Capital Leases [Member] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), realized Gain (Loss) on Derivatives Arising During Period, before Tax | -602 | -604 | -1,198 | -1,208 |
Interest Rate contract Capital Leases [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), realized Gain (Loss) on Derivatives Arising During Period, before Tax | -602 | -604 | -1,198 | -1,208 |
Commodity Contract [Member] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), realized Gain (Loss) on Derivatives Arising During Period, before Tax | -143 | -191 | -143 | -191 |
Commodity Contract [Member] | TUCSON ELECTRIC POWER COMPANY | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), realized Gain (Loss) on Derivatives Arising During Period, before Tax | ($143) | ($191) | ($143) | ($191) |