Regulated electric and gas utility operations; Low-cost coal-fired generation that is sufficient to meet the majority of the company's retail loads, resulting in low exposure to natural gas volatility; Limited need to invest in new generation resources in the near term; Cash flows sufficient to self-fund the bulk of capital expenditures, although this may diminish as environmental compliance spending increases; and Fuel and purchased power adjustment mechanisms for Tucson Electric Power Co. (TEP), UNS Gas, and UNS Electric, which protect consolidated cash flows. Above-average adjusted debt to capital, relative to the sector, of 70%; A general rate freeze in place through 2012 that may delay the collection of certain costs from customers; Exposure to wholesale markets, which account for about
