SAN FRANCISCO (Standard&Poor's) Dec. 21, 2004--Standard&Poor's Ratings Services said that the Arizona Corporation Commission's (ACC) vote today to deny the proposed acquisition of UniSource Energy Corp. by a consortium led by Kohlberg Kravis Roberts&Co. (KKR) will likely lead to the removal of Tucson Electric Power (TEP; BB/Watch Neg/--) from CreditWatch with negative implications. Standard&Poor's placed TEP on CreditWatch in November 2003 as a result of the uncertainties surrounding the transaction and the increased consolidated leverage that would have resulted with the buyout. Standard&Poor's expects to resolve TEP's CreditWatch listing upon the conclusion of any appeal and a review of the company's business and financial profiles absent the merger. The 4-1
