Commitments Contingencies and Proposed Environmental Matters (Tables)

6 Months Ended

Jun. 30, 2011

Commitments Contingencies and Proposed Environmental Matters (Tables) [Abstract]

Long term purchase of commitments

	Purchase Commitments
	2011		2012		2013		2014		2015		Thereafter		Total
	-Millions of Dollars-
Coal(1)	$	34	$	40	$	14	$	14	$	—	$	—	$	102
Purchased Power(2)		1		5		1		1		1		10		19
Solar Equipment(3)		11		11		11		—		—		—		33
Total	$	46	$	56	$	26	$	15	$	1	$	10	$	154

(1)	TEP executed a new coal supply agreement and amended an existing coal supply agreement in March 2011, incurring minimum purchase obligations.
(2)	Purchased Power includes contracts that will settle in June through September 2012 with prices per MWh that are indexed to natural gas prices. TEP’s estimated minimum payment obligation for these purchases is based on projected market prices as of June 30, 2011. Additionally, Purchased Power includes one long-term Power Purchase Agreement (PPA) with a renewable energy generation facility that achieved commercial operation on March 31, 2011. TEP is obligated to purchase 100% of the output of this facility. The table above includes estimated future payments based on expected power deliveries under this contract through 2031. TEP has entered into additional long-term renewable PPAs to comply with the RES requirements; however, TEP’s obligation to accept and pay for electric power under these agreements does not begin until the facilities are constructed and operational.
(3)	TEP has a commitment to purchase 9 MW of photovoltaic equipment, subject to ACC approval, between July 1, 2011 and December 31, 2013.