UniSource earnings lower on deferred revenues, higher costs

Tucson, Arizona | Published: 08.07.2008 UniSource Energy Corp., parent of Tucson Electric Power Co., posted lower second-quarter earnings as the company remains uncertain whether it will get to keep millions of dollars currently being collected on customer bills. UniSource reported earnings for the second quarter of $5 million, or 13 cents per share, compared with $12 million, or 32 cents per share, a year ago. Total operating revenues rose 9.3 percent, to $360.3 million. UniSource said the earnings decline was due in part to $15 million in deferred revenue collected from a surcharge approved by state regulators under TEP's last rate settlement. The charge was intended to cover costs TEP may not have been able to recover as the state transitioned to a competitive power market that never materialized. TEP expects to collect... [read full story]