UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): November 27, 2000
Commission Registrant; State of Incorporation; IRS Employer
File Number Address; and Telephone Number Identification Number
- ----------- ----------------------------- ---------------------
1-13739 UNISOURCE ENERGY CORPORATION 86-0786732
(An Arizona Corporation)
One South Church, Suite 100
Tucson, AZ 85701
(520) 571-4000
1-5924 TUCSON ELECTRIC POWER COMPANY 86-0062700
(An Arizona Corporation)
One South Church, Suite 100
Tucson, AZ 85701
(520) 571-4000
Item 5. Other Events
------------
As reported previously, the Arizona Corporation Commission
("ACC") on September 21, 1999, adopted rules relating to the
introduction of retail electric competition in Arizona (the
"Rules"). Several parties, including certain rural electric
cooperatives (the "Cooperatives"), filed lawsuits in Maricopa
County Superior Court challenging the Rules.
On July 12, 2000, a Maricopa Superior Court judge issued a
preliminary ruling on the consolidated cases, holding that
certain of the Rules were required to be submitted to the Arizona
Attorney General for certification, and that the Arizona
Constitution requires the ACC to consider the fair value of the
property of an Energy Service Provider upon its certification.
The ruling was affirmed by the Superior Court on November 1,
2000, pending submission of an amended form of judgment by
plaintiffs' counsel. On November 27, 2000, the Superior Court
adopted the form of judgment submitted by plaintiffs' counsel as
its final judgment in the matter. The Court found the Rules to
be unconstitutional and unlawful due to the failure of the Rules
to establish fair value rate base for competitive electric
service providers and because certain of the Rules were not
submitted for certification to the Arizona Attorney General. The
Court also invalidated all ACC orders granting certificates of
convenience and necessity to competitive electric service
providers in Arizona.
The ACC, RUCO (Residential Utility Consumer Office) and
certain large industrial customers have appealed the decision to
the Court of Appeals. In addition, the Cooperatives have filed a
notice of cross appeal of certain aspects of the decision.
Implementation of the judgment is stayed and the Rules remain in
effect pending the outcome of the appeals.
TEP cannot predict the outcome of these appeals or the
effect of the judgment, if affirmed upon appeal, on the ultimate
introduction of retail electric competition in Arizona or upon
the rights and obligations of TEP under the Settlement Agreement
approved by the ACC. TEP continues to collect the rates and
charges approved in the Settlement Agreement. See TEP's
Settlement Agreement and Retail Electric Competition Rules in the
Annual Report on Form 10-K for the year ended December 31, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, each registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized. The
signature for each undersigned company shall be deemed to relate
only to matters having reference to such company or its
subsidiary.
UNISOURCE ENERGY CORPORATION
----------------------------
(Registrant)
Date: January 11, 2001 /s/ Kevin Larson
----------------------------
Kevin Larson
Vice President and Principal
Financial Officer
TUCSON ELECTRIC POWER COMPANY
-----------------------------
(Registrant)
Date: January 11, 2001 /s/ Kevin Larson
----------------------------
Kevin Larson
Vice President and Principal
Financial Officer