Debt and Credit Facilities

6 Months Ended

Jun. 30, 2011

Debt and Credit Facilities [Abstract]

DEBT AND CREDIT FACILITIES

NOTE 4. DEBT AND CREDIT FACILITIES

Summarized below are the significant changes to our debt from those reported in our 2010 Annual Report on Form 10-K. There have been no significant changes to our outstanding letters of credit.

UNISOURCE ENERGY CREDIT AGREEMENT

UniSource Energy had $67 million and $27 million in borrowings outstanding under its revolving credit facility as of June 30, 2011 and December 31, 2010, respectively. The revolving loan balances are included in Long-Term Debt in the UniSource Energy balance sheets.

TEP CREDIT AGREEMENT AND REIMBURSEMENT AGREEMENT

At June 30, 2011, TEP had $50 million in borrowings outstanding under the TEP Credit Agreement. The revolving loan balances are included in Current Liabilities in the UniSource Energy and TEP balance sheets.

UNS GAS/UNS ELECTRIC CREDIT AGREEMENT

As of July 25, 2011, UNS Electric had $30 million in short-term borrowings under the UNS Gas/UNS Electric Revolver outstanding which UNS Electric used to purchase BMGS.

UED SECURED TERM LOAN

In July 2011, UED received $63 million from the sale of BMGS to UNS Electric. UED used a portion of those funds to fully repay the $27 million outstanding under its secured term loan.

COVENANT COMPLIANCE

As of June 30, 2011, UniSource Energy and its subsidiaries were in compliance with the terms of their respective loan and credit agreements.