Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2011

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

NOTE 13. SUPPLEMENTAL CASH FLOW INFORMATION

A reconciliation of Net Income to Net Cash Flows — Operating Activities follows:

	UniSource Energy
	Nine Months Ended
	September 30,
	2011			2010
	-Thousands of Dollars-
Net Income	$	101,787		$	101,732
Adjustments to Reconcile Net Income To Net Cash Flows from Operating Activities:
Depreciation Expense		99,653			95,773
Amortization Expense		22,513			20,797
Depreciation and Amortization Recorded to Fuel and Other O&M Expense		4,513			4,025
Amortization of Deferred Debt-Related Costs Included in Interest Expense		3,185			2,672
Provision for Retail Customer Bad Debts		1,305			2,881
Use of Renewable Energy Credits for Compliance		4,669			—
Deferred Income Taxes		77,741			57,722
Deferred Tax Valuation Allowance		(73	)		5,702
Pension and Postretirement Expense		15,903			14,626
Pension and Postretirement Funding		(25,998	)		(20,927	)
Allowance for Equity Funds Used During Construction		(3,516	)		(2,780	)
Share-Based Compensation Expense		2,025			2,102
Excess Tax Benefit from Stock Options Exercised		(29	)		(1,796	)
CTC Revenue Refunded		(30,652	)		(8,152	)
Decrease to Reflect PPFAC/PGA Recovery Treatment		(5,174	)		(34,260	)
Gain on Settlement of El Paso Electric Dispute		(7,391	)		—
Loss on Millennium’s Investments		—			5,208
Changes in Assets and Liabilities which Provided (Used) Cash Exclusive of Changes Shown Separately:
Accounts Receivable		(22,495	)		(36,929	)
Materials and Fuel Inventory		(195	)		12,691
Accounts Payable		9,507			6,834
Income Taxes		(11,870	)		4,724
Interest Accrued		(3,063	)		(3,633	)
Taxes Other Than Income Taxes		17,048			18,855
Other		11,094			7,666
Net Cash Flows — Operating Activities	$	260,487		$	255,533

	TEP
	Nine Months Ended
	September 30,
	2011			2010
	-Thousands of Dollars-
Net Income	$	83,773		$	98,135
Adjustments to Reconcile Net Income To Net Cash Flows from Operating Activities:
Depreciation Expense		78,124			74,143
Amortization Expense		25,282			23,963
Depreciation and Amortization Recorded to Fuel and Other O&M Expense		3,280			2,837
Amortization of Deferred Debt-Related Costs Included in Interest Expense		1,866			1,534
Provision for Retail Customer Bad Debts		942			1,961
Use of Renewable Energy Credits for Compliance		4,280			—
Deferred Income Taxes		66,090			48,916
Pension and Postretirement Expense		14,113			12,979
Pension and Postretirement Funding		(23,453	)		(19,174	)
Share-Based Compensation Expense		1,580			1,628
Allowance for Equity Funds Used During Construction		(2,980	)		(2,340	)
CTC Revenue Refunded		(30,652	)		(8,152	)
Decrease to Reflect PPFAC Recovery Treatment		(5,146	)		(23,023	)
Gain on Settlement of El Paso Electric Dispute		(7,391	)		—
Changes in Assets and Liabilities which Provided (Used) Cash Exclusive of Changes Shown Separately:
Accounts Receivable		(35,481	)		(45,706	)
Materials and Fuel Inventory		144			11,889
Accounts Payable		16,030			13,774
Income Taxes		(13,792	)		(2,186	)
Interest Accrued		1,685			1,420
Taxes Other than Income Taxes		16,541			17,772
Other		10,709			10,541
Net Cash Flows — Operating Activities	$	205,544		$	220,911