DEBT, CREDIT FACILITIES, AND CAPITAL LEASE OBLIGATIONS	3 Months Ended
DEBT, CREDIT FACILITIES, AND CAPITAL LEASE OBLIGATIONS	Mar. 31, 2014
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DEBT, CREDIT FACILITIES, AND CAPITAL LEASE OBLIGATIONS	DEBT AND CAPITAL LEASE OBLIGATIONS We summarize below the significant changes to our debt and capital lease obligations from those reported in our 2013 Annual Report on Form 10-K. 2014 TEP UNSECURED NOTES ISSUED In March 2014, TEP issued $150 million of 5.0% unsecured notes due March 2044. TEP may call the debt prior to September 15, 2043, with a make-whole premium plus accrued interest. After September 15, 2043, TEP may call the debt at par plus accrued interest. TEP used the net proceeds to repay approximately $90 million on the revolving credit facility, with the remaining proceeds to be applied to general corporate purposes. The unsecured notes contain a limitation on the amount of secured debt that TEP may have outstanding. COVENANT COMPLIANCE At March 31, 2014, we were in compliance with the terms of our loan and credit agreements. TEP SPRINGERVILLE COAL HANDLING FACILITIES CAPITAL LEASE PURCHASE COMMITMENT In April 2014, TEP notified the owner participants and their lessors that TEP has elected to purchase their undivided ownership interests in the Springerville Coal Handling Facilities at the fixed purchase price of $120 million upon the expiration of the lease term in April 2015. Due to TEP’s purchase commitment, TEP will record, in the second quarter of 2014, an increase to both Utility Plant Under Capital Leases and Capital Lease Obligations on its balance sheet in the amount of $109 million. TEP previously agreed with Tri-State Generation and Transmission Association, Inc. (Tri-State), the lessee of Springerville Unit 3, and Salt River Project Agricultural Improvement and Power District (SRP), the owner of Springerville Unit 4, that if the Springerville Coal Handling Facilities Leases were not renewed, TEP would exercise the purchase option under those contracts. Upon TEP's purchase, SRP is obligated to buy a portion of the Springerville Coal Handling Facilities from TEP for approximately $24 million, and Tri-State is obligated to either 1) buy a portion of the facilities for approximately $24 million or 2) continue to make payments to TEP for the use of the facilities.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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