Rate-regulated lower-risk electric utility High reliance on coal generation Greater volatility of profitability compared with the regulated utility industry average Use of the medial volatility table, reflecting the regulated utility business model that includes the higher operating risk of regulated generation Core financial measures that are consistent with the significant financial risk profile category High capital spending necessary for new generation and to meet environmental and renewable compliance standards Standard&Poor's Ratings Services' 'BBB' issuer credit rating (ICR) on Tucson Electric Power Co. (TEP) reflects unrated parent UNS Energy Corp.'s (UNS) group credit profile (GCP). TEP's 'bbb' anchor and stand-alone credit profile (SACP) reflects: A country risk score we consider "very low" risk because all of the utility's operations
