SAN FRANCISCO (Standard&Poor's) April 14, 2008--Standard&Poor's Ratings Services said today that the Arizona Corporation Commission's (ACC) letter to UNS Gas rejecting the company's filed general rate case will not affect the timing of Tucson Electric Power Co.'s (TEP; BB/Stable/B-2) current rate case, which we expect to be resolved in late 2008 or early 2009. UNS Gas is seeking a $10 million increase, or 7% above test-year revenues. In Arizona, ACC staff has 30 days to certify that a company's case is complete. In a March 20 letter to UNS, the ACC staff found the application "deficient." The company used a 12-month, historic test year ending Sept. 30, 2007. Staff argues that because new rates for UNS
