SAN FRANCISCO (Standard&Poor's) Nov. 9, 2004--Standard&Poor's Ratings Services said today that the administrative law judge's (ALJ) recommendation yesterday that the Arizona Corporation Commission (ACC) deny the proposed acquisition of UniSource Energy Corp. by a consortium led by Kohlberg Kravis Roberts&Co. has no ratings impact on Tucson Electric Power (TEP; BB/Watch Neg/--), UniSource's largest and only rated subsidiary. The ALJ's draft ruling is an important opinion that will be reviewed by commissioners as part of their deliberations about whether to approve or reject the merger. An ACC vote is likely in December. Because the commissioners are under no obligation to follow the draft order, it is difficult to determine whether or not the merger will
