Business Segments (Tables)

6 Months Ended

Jun. 30, 2011

Business Segments (Tables) [Abstract]

Reconciling adjustments of intersegment revenues in consolidation


	Reportable Segments												UniSource
			UNS		UNS					Reconciling			Energy
	TEP		Gas		Electric		Other			Adjustments			Consolidated
	-Millions of Dollars-
Income Statement
Three Months Ended June 30, 2011:
Operating Revenues — External	$	292	$	25	$	52	$	1		$	—		$	370
Operating Revenues — Intersegment		3		1		1		7			(12	)		—
Income Before Income Taxes		40		1		5		—			—			46
Net Income		25		—		3		1			—			29


Three Months Ended June 30, 2010:
Operating Revenues — External	$	266	$	25	$	49	$	(1	)	$	—		$	339
Operating Revenues — Intersegment		9		1		—		7			(17	)		—
Income (Loss) Before Income Taxes		43		1		3		(5	)		—			42
Net Income (Loss)		28		1		2		(5	)		—			26


Six Months Ended June 30, 2011:
Operating Revenues — External	$	528	$	84	$	102	$	—		$	—		$	714
Operating Revenues — Intersegment		7		1		1		14			(23	)		—
Income Before Income Taxes		47		11		8		1			—			67
Net Income		30		7		5		—			—			42


Six Months Ended June 30, 2010:
Operating Revenues — External	$	488	$	81	$	89	$	—		$	—		$	658
Operating Revenues — Intersegment		18		2		1		13			(34	)		—
Income (Loss) Before Income Taxes		59		10		8		(4	)		1			74
Net Income (Loss)		38		6		5		(4	)		1			46

Reconciling adjustments of Income Statement items in consolidation


	Reportable Segments
			UNS		UNS
	TEP		Gas		Electric		Other
	-Millions of Dollars-
Intersegment Revenue
Three Months Ended June 30, 2011:
Wholesale Sales — UNS Electric to TEP (⁴⁾	$	—	$	—	$	1	$	—
Wholesale Sales — UED to UNS Electric		—		—		—		3
Gas Revenue — UNS Gas to UNS Electric		—		1		—		—
Other Revenue — TEP to Affiliates ⁽¹⁾		2		—		—		—
Other Revenue — Millennium to TEP & UNS Electric⁽²⁾		—		—		—		4
Other Revenue — TEP to UNS Electric ⁽³⁾		1		—		—		—

Total Intersegment Revenue	$	3	$	1	$	1	$	7


Three Months Ended June 30, 2010:
Wholesale Sales — TEP to UNS Electric ⁽⁴⁾	$	6	$	—	$	—	$	—
Wholesale Sales — UED to UNS Electric		—		—		—		3
Gas Revenue — UNS Gas to UNS Electric		—		1		—		—
Other Revenue — TEP to Affiliates ⁽¹⁾		2		—		—		—
Other Revenue — Millennium to TEP & UNS Electric⁽²⁾		—		—		—		4
Other Revenue — TEP to UNS Electric ⁽³⁾		1		—		—		—

Total Intersegment Revenue	$	9	$	1	$	—	$	7


Six Months Ended June 30, 2011
Wholesale Sales — TEP to UNS Electric ⁽⁴⁾	$	1	$	—	$	—	$	—
Wholesale Sales — UNS Electric to TEP (⁴⁾		—		—		1		—
Wholesale Sales — UED to UNS Electric		—		—		—		5
Gas Revenue — UNS Gas to UNS Electric		—		1		—		—
Other Revenue — TEP to Affiliates⁽¹⁾		5		—		—		—
Other Revenue — Millennium to TEP & UNS Electric⁽²⁾		—		—		—		9
Other Revenue — TEP to UNS Electric ⁽³⁾		1		—		—		—

Total Intersegment Revenue	$	7	$	1	$	1	$	14


Six Months Ended June 30, 2010
Wholesale Sales — TEP to UNS Electric ⁽⁴⁾	$	13	$	—	$	—	$	—
Wholesale Sales — UNS Electric to TEP (⁴⁾		—		—		1		—
Wholesale Sales — UED to UNS Electric		—		—		—		5
Gas Revenue — UNS Gas to UNS Electric		—		2		—		—
Other Revenue — TEP to Affiliates⁽¹⁾		4		—		—		—
Other Revenue — Millennium to TEP & UNS Electric⁽²⁾		—		—		—		8
Other Revenue — TEP to UNS Electric ⁽³⁾		1		—		—		—

Total Intersegment Revenue	$	18	$	2	$	1	$	13


⁽¹⁾		Common costs (systems, facilities, etc.) are allocated on a cost-causative basis and recorded as revenue by TEP. Management believes this method of allocation is reasonable.

⁽²⁾		Millennium provides a supplemental workforce and meter-reading services to TEP and UNS Electric. Amounts are based on costs of services performed, and management believes that the charges for services are reasonable.

⁽³⁾		TEP charges UNS Electric for control area services based on a FERC-approved tariff.

⁽⁴⁾		TEP and UNS Electric sell power to each other at prices based on the Dow Jones Four Corners Daily Index.