<ARTICLE> UT
<CIK> 0000941138
<NAME> UNISOURCE ENERGY CORPORATION
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<BOOK-VALUE>                                  PER-BOOK
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<OTHER-PROPERTY-AND-INVEST>                    110,318
<TOTAL-CURRENT-ASSETS>                         294,744
<TOTAL-DEFERRED-CHARGES>                       313,528
<OTHER-ASSETS>                                       0
<TOTAL-ASSETS>                               2,634,180
<COMMON>                                       640,640
<CAPITAL-SURPLUS-PAID-IN>                            0
<RETAINED-EARNINGS>                          (393,994)
<TOTAL-COMMON-STOCKHOLDERS-EQ>                 246,646
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<LONG-TERM-DEBT-NET>                         1,184,423
<SHORT-TERM-NOTES>                                   0
<LONG-TERM-NOTES-PAYABLE>                            0
<COMMERCIAL-PAPER-OBLIGATIONS>                       0
<LONG-TERM-DEBT-CURRENT-PORT>                    1,725
<PREFERRED-STOCK-CURRENT>                            0
<CAPITAL-LEASE-OBLIGATIONS>                    889,543
<LEASES-CURRENT>                                11,647
<OTHER-ITEMS-CAPITAL-AND-LIAB>                 300,196
<TOT-CAPITALIZATION-AND-LIAB>                2,634,180
<GROSS-OPERATING-REVENUE>                      768,676
<INCOME-TAX-EXPENSE>                            18,372
<OTHER-OPERATING-EXPENSES>                     615,116
<TOTAL-OPERATING-EXPENSES>                     633,488
<OPERATING-INCOME-LOSS>                        135,188
<OTHER-INCOME-NET>                              10,444
<INCOME-BEFORE-INTEREST-EXPEN>                 145,632
<TOTAL-INTEREST-EXPENSE>                       117,600
<NET-INCOME>                                    28,032
<PREFERRED-STOCK-DIVIDENDS>                          0
<EARNINGS-AVAILABLE-FOR-COMM>                   28,032
<COMMON-STOCK-DIVIDENDS>                             0
<TOTAL-INTEREST-ON-BONDS>                       72,672
<CASH-FLOW-OPERATIONS>                         162,745
<EPS-PRIMARY>                                     0.87
<EPS-DILUTED>                                     0.87