SAN FRANCISCO (Standard&Poor's) June 27, 2005--Standard&Poor's Ratings Services said today that stakeholder filings in Tucson Electric Power Co.'s (TEP; BB/Stable/B-1) rate review bode well for the outcome in its rate review case. As part of their June 24 submissions in the case, neither the Residential Utility Consumer Office (RUCO) nor the Arizona Corporation Commission's (ACC) staff recommended a rate decrease for TEP. RUCO's testimony included analysis indicating that TEP had a revenue deficiency of $31.7 million and the ACC staff's testimony indicated that TEP had a revenue deficiency of $66.9 million. Under the terms of a 1999 settlement with the ACC, TEP retail rates are capped until 2009. However, the agreement required TEP to file a
