The Arizona Corporation Commission (ACC) regulates the retail rates, issuance of securities and related-party transactions of UniSource Energy’s three utility subsidiaries, Tucson Electric Power (TEP), UNS Gas and UNS Electric.
The ACC sets retail rates using cost of service principles and a historic test year. The retail rate structures at all three of UniSource Energy’s utility subsidiaries contain mechanisms to recover the actual cost of fuel and purchased energy expenses.
The Federal Energy Regulatory Commission regulates the terms and prices of TEP and UNS Electric’s transmission services and sales of electricity at wholesale.