The business profile ratings on Tucson Electric Power (TEP) reflect an average business profile and a financial profile characterized by very weak bondholder protection measures. Standard&Poor's assigns TEP a business profile score of '5', an improvement over the previous profile score of '6', on a 1-10 scale, with '1' being the strongest. TEP's business profile reflects an above-average service territory encompassing the city of Tucson, Ariz. and two neighboring counties. Torrid economic growth throughout Arizona has led to an expanding customer base, especially of residential customers, increasing their per capita usage of electricity. On the other hand, the utility's service territory includes a weaker industrial base--including copper mining, defense, and health care--totaling 40% of retail sales in 2001.
