Consistent regulated operations and a relative absence of unregulated businesses Substantial amounts of low-cost coal-fired generation Significant exposure to environmental remediation Lack of meaningful regulatory, economic, and geographic diversity Leverage that is somewhat higher than other utilities Tucson Electric Power Co. is awaiting the results of a rate case that will lift a rate freeze in effect since 2008, which will benefit the company The company will likely spend significant amounts on capital expenditures in 2015 and beyond in an effort to bring coal generation facilities into compliance with new environmental standards The stable outlook reflects our expectation that despite worsened credit measures in 2012 as a result of decreased wholesale revenues and a base rate freeze, the company will
