Healthy cash flows sufficient to internally fund capital expenditures and accelerate the repayment of debt and fund capital expenditures; Owned capacity that is sufficient to meet TEP's very high summer peaking loads; Solid service territory with good growth that has been enhanced with the purchase of Citizen's electric and gas assets in 2003, coupled with no customer loss despite the introduction of full retail competition in 2002; and Reasonable support from the Arizona Corporation Commission (ACC) which, through its retreat from restructuring, has allowed TEP to continue operations as a vertically integrated utility. A weak overall financial profile as a result of the high debt levels, which are expected to decline slowly, following the recent announcement that the leveraged buy-out
