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): December 4, 1998
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)
220 West Sixth Street
Tucson, AZ 85701
(520) 571-4000
1-5924 TUCSON ELECTRIC POWER COMPANY 86-0062700
(An Arizona Corporation)
220 West Sixth Street
Tucson, AZ 85701
(520) 571-4000
Item 5. Other Events
TEP DIVIDEND
On December 4, 1998, the Board of Directors of Tucson
Electric Power Company ("TEP") declared a dividend in the amount
of $0.9334327 per share of TEP's Common Stock, no par value, to
shareholders of record at the close of business December 4, 1998,
payable December 7, 1998. As the holder of all of the issued and
outstanding Common Stock of TEP, UniSource Energy Corporation
(UniSource Energy) received dividends in the aggregate amount of
$30 million. The dividend follows the refinancing of various
debt obligations, eliminating the credit covenants and
restrictions which had prevented TEP from paying common dividends
since 1989.
The dividend was declared from current year earnings since
TEP has an accumulated deficit rather than positive retained
earnings.
The Board of Directors of UniSource Energy may consider the
declaration and payment of a dividend to the common shareholders
of UniSource Energy. The decision to declare such dividend and
the amount of any such dividend will depend upon various factors,
including, among others, the capital requirements of UniSource
Energy and its affiliates, the Company's earnings, the business
prospects of the Company, and the status and impact of the
deregulation of the retail electric industry in Arizona.
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: December 8, 1998 Ira R. Adler
----------------------------
Ira R. Adler
Executive Vice President and
Principal Financial Officer
TUCSON ELECTRIC POWER COMPANY
-----------------------------
(Registrant)
Date: December 8, 1998 Ira R. Adler
-----------------------------
Ira R. Adler
Executive Vice President and
Principal Financial Officer