Consistent regulated operations and no unregulated businesses. Substantial amounts of low-cost coal-fired generation, though this raises environmental remediation issues. Lack of meaningful regulatory, economic, and geographic diversity. A regulatory jurisdiction that has historically been challenging, but that has improved during recent rate cases. Somewhat higher leverage than other utilities, though it has become more balanced in recent years. A recently concluded rate case that will improve and stabilize future earnings and cash flows. An effective effort at mitigating cost increases, necessitated by a base rate freeze between 2008 and 2013. Significant amounts of capital spending are likely in 2015 and beyond to bring coal generation facilities into compliance with new environmental standards. The stable rating outlook on Tucson Electric Power
