<ARTICLE> UT
<CIK> 0000941138
<NAME> UNISOURCE ENERGY CORPORATION
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               MAR-31-1998
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<LEASES-CURRENT>                                15,238
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<NET-INCOME>                                   (7,035)
<PREFERRED-STOCK-DIVIDENDS>                          0
<EARNINGS-AVAILABLE-FOR-COMM>                  (7,035)
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<CASH-FLOW-OPERATIONS>                           7,914
<EPS-PRIMARY>                                    (.22)
<EPS-DILUTED>                                    (.22)