UNISOURCE ENERGY CORPORATION EXHIBIT 11 - COMPUTATION OF EARNINGS PER SHARE Three Months Ended September 30, 2000 1999 ------ ------ - Thousands of Dollars - (except per share data) BASIC EARNINGS PER SHARE: Net Income $17,239 $51,669 Average Shares of Common Stock Outstanding 32,423 32,332 --------- -------- Basic Earnings Per Share $ 0.53 $ 1.60 ========= ======== DILUTED EARNINGS PER SHARE: Net Income $17,239 $51,669 Average Shares of Common Stock Outstanding 32,423 32,332 Effect of Dilutive Securities: Warrants - - Options and Stock Issuable under Employee Benefit Plans 467 341 --------- -------- Total Shares 32,890 32,673 --------- -------- Diluted Earnings Per Share $ 0.52 $ 1.58 ========= ======== 4.6 million of the 6.1 million warrants outstanding are exercisable into TEP common stock. However, the dilutive effect is the same as it would be if the warrants were exercisable into UniSource Energy Common Stock. UNISOURCE ENERGY CORPORATION EXHIBIT 11 - COMPUTATION OF EARNINGS PER SHARE Nine Months Ended September 30, 2000 1999 ------ ------ - Thousands of Dollars - (except per share data) BASIC EARNINGS PER SHARE: Net Income $28,140 $49,849 Average Shares of Common Stock Outstanding 32,397 32,309 --------- -------- Basic Earnings Per Share $ 0.87 $ 1.54 ========= ======== DILUTED EARNINGS PER SHARE: Net Income $28,140 $49,849 Average Shares of Common Stock Outstanding 32,397 32,309 Effect of Dilutive Securities: Warrants - - Options and Stock Issuable Under Employee Benefit Plans 436 225 --------- -------- Total Shares 32,833 32,534 --------- -------- Diluted Earnings Per Share $ 0.86 $ 1.53 ========= ======== 4.6 million of the 6.1 million warrants outstanding are exercisable into TEP common stock. However, the dilutive effect is the same as it would be if the warrants were exercisable into UniSource Energy Common Stock.