BUSINESS SEGMENTS

9 Months Ended

Sep. 30, 2013

Text Block [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

We have three reportable segments regularly reviewed by our chief operating decision makers to evaluate performance and make operating decisions.

(1) TEP, a regulated electric utility and our largest subsidiary

(2) UNS Gas, a regulated gas distribution utility

(3) UNS Electric, a regulated electric utility

We disclose selected financial data for our reportable segments in the following table:

	Reportable Segments
	TEP		UNS Gas			UNS Electric		Non-Reportable Segments		Reconciling Adjustments			UNS Energy Consolidated
	Millions of Dollars
Income Statement
Three Months Ended September 30, 2013
Operating Revenues – External	$	367	$	16		$	54	$	—	$	—		$	437
Operating Revenues – Intersegment(1)	4		2			—		4		(10		)	—
Net Income	64		(1		)	5		—		—			68
Three Months Ended September 30, 2012
Operating Revenues – External	$	362	$	16		$	56	$	—	$	—		$	434
Operating Revenues – Intersegment(1)	5		2			—		5		(12		)	—
Net Income	45		—			6		—		—			51

	Reportable Segments
	TEP		UNS Gas		UNS Electric		Non-Reportable Segments			Reconciling Adjustments			UNS Energy Consolidated
	Millions of Dollars
Income Statement
Nine Months Ended September 30, 2013
Operating Revenues – External	$	910	$	90	$	134	$	—		$	—		$	1,134
Operating Revenues – Intersegment(1)	13		3		1		12			(29		)	—
Net Income	96		6		11		1			—			114
Nine Months Ended September 30, 2012
Operating Revenues – External	$	877	$	89	$	147	$	—		$	—		$	1,113
Operating Revenues – Intersegment(1)	13		4		1		14			(32		)	—
Net Income	65		5		14		(1		)	—			83

⁽¹⁾  Operating Revenues – Intersegment: TEP includes control area services provided to UNS Electric based on a FERC-approved tariff; common costs (systems, facilities, etc.) allocated to affiliates on a cost-causative basis; and sales of power to UNS Electric at third-party market prices. Other primarily includes meter reading services and supplemental workforce provided by an unregulated affiliate to the utilities.