NY -- Standard&Poor's CreditWire 12/11/95 -- The settlement reached between Tucson Electric Power Co. (TEP; single-`B'-plus senior secured debt) and the Arizona Corporation Commission staff, while positive, is neutral for credit quality. If adopted by the commission, which is anticipated in early 1996, it should have no impact on ratings. TEP's outlook remains positive. TEP has agreed to a 2% increase, in contrast to its 4.9% request filed in June 1995. TEP will not seek another rate increase before Jan. 1, 2000, but may submit a proposal for incentive ratemaking in the interim. The settlement makes "used and useful" the remaining 37.5% of Springerville Generating Station Unit 2. In addition to the rate change, the agreement provides for
