Healthy cash flow that will be used to accelerate the repayment of debt, Ability to continue operations as a vertically integrated utility, Sufficient owned or contracted generation resources to meet current peak load, No customer loss despite the introduction of full retail competition in 2002, and Supportive regulatory environment. Frozen rates until 2008 and no power cost adjustment mechanism, Extremely high debt leverage, Weak overall financial profile as a result of the high debt levels, Concern regarding the additional construction at the Springerville site, which may be financed with off-balance-sheet debt, adding to TEP's debt burden, and Continued investment in unregulated businesses, which are supported through the company's dividends paid to parent Unisource. The ratings on Tucson Electric Power Co.
