UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                          Washington, D. C.  20549

                                  FORM 8-K

                               CURRENT REPORT


   Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

     Date of Report (Date of Earliest Event Reported):  November 27, 2000



Commission        Registrant; State of Incorporation;     IRS Employer
File Number       Address; and Telephone Number           Identification Number
- -----------       -----------------------------           ---------------------
1-13739           UNISOURCE ENERGY CORPORATION            86-0786732
                  (An Arizona Corporation)
                  One South Church, Suite 100
                  Tucson, AZ  85701
                  (520) 571-4000

1-5924            TUCSON ELECTRIC POWER COMPANY           86-0062700
                  (An Arizona Corporation)
                  One South Church, Suite 100
                  Tucson, AZ  85701
                  (520) 571-4000





Item 5. Other Events
        ------------

      As  reported previously, the Arizona Corporation Commission
("ACC")  on  September 21, 1999, adopted rules  relating  to  the
introduction  of  retail  electric competition  in  Arizona  (the
"Rules").   Several  parties, including  certain  rural  electric
cooperatives  (the  "Cooperatives"), filed lawsuits  in  Maricopa
County Superior Court challenging the Rules.

     On  July 12, 2000, a Maricopa Superior Court judge issued  a
preliminary  ruling  on  the  consolidated  cases,  holding  that
certain of the Rules were required to be submitted to the Arizona
Attorney   General  for  certification,  and  that  the   Arizona
Constitution requires the ACC to consider the fair value  of  the
property  of  an  Energy Service Provider upon its certification.
The  ruling  was  affirmed by the Superior Court on  November  1,
2000,  pending  submission  of an amended  form  of  judgment  by
plaintiffs'  counsel.  On November 27, 2000, the  Superior  Court
adopted the form of judgment submitted by plaintiffs' counsel  as
its  final judgment in the matter.  The Court found the Rules  to
be  unconstitutional and unlawful due to the failure of the Rules
to  establish  fair  value  rate base  for  competitive  electric
service  providers  and because certain of  the  Rules  were  not
submitted for certification to the Arizona Attorney General.  The
Court  also  invalidated all ACC orders granting certificates  of
convenience   and  necessity  to  competitive  electric   service
providers in Arizona.

     The  ACC,  RUCO  (Residential Utility Consumer  Office)  and
certain large industrial customers have appealed the decision  to
the Court of Appeals.  In addition, the Cooperatives have filed a
notice  of  cross  appeal  of certain aspects  of  the  decision.
Implementation of the judgment is stayed and the Rules remain  in
effect pending the outcome of the appeals.

     TEP  cannot  predict  the outcome of these  appeals  or  the
effect  of the judgment, if affirmed upon appeal, on the ultimate
introduction  of retail electric competition in Arizona  or  upon
the  rights and obligations of TEP under the Settlement Agreement
approved  by  the ACC.  TEP continues to collect  the  rates  and
charges   approved  in  the  Settlement  Agreement.   See   TEP's
Settlement Agreement and Retail Electric Competition Rules in the
Annual Report on Form 10-K for the year ended December 31, 1999.





                            SIGNATURE


     Pursuant to the requirements of the Securities Exchange  Act
of 1934, each registrant has duly caused this report to be signed
on  its behalf by the undersigned thereunto duly authorized.  The
signature for each undersigned company shall be deemed to  relate
only  to  matters  having  reference  to  such  company  or   its
subsidiary.


                               UNISOURCE ENERGY CORPORATION
                              ----------------------------
                                      (Registrant)


Date: January 11, 2001            /s/   Kevin Larson
                               ----------------------------
                                        Kevin Larson
                               Vice President and Principal
                                     Financial Officer



                              TUCSON ELECTRIC POWER COMPANY
                              -----------------------------
                                      (Registrant)


Date: January 11, 2001            /s/   Kevin Larson
                               ----------------------------
                                        Kevin Larson
                               Vice President and Principal
                                     Financial Officer