UniSource Energy Files Exceptions to Administrative Law Judge's Report in Acquisition Case
TUCSON, Ariz.--(BUSINESS WIRE)--Nov. 22, 2004--UniSource Energy Corp. (NYSE:UNS) today filed its exceptions to the opinion and recommended order of the administrative law judge in the proposed acquisition of UniSource Energy Corp. by an affiliate of Saguaro Utility Group L.P. The acquisition is currently under consideration of the Arizona Corporation Commission (ACC). In the filing, UniSource Energy addresses concerns raised previously by both the ACC staff and the administrative law judge and proposes a revised order to be considered by the commission. Also contained in the filing are two additional public benefit enhancements. UniSource Energy will make available $10 million to be used in ACC-approved programs such as demand side management and low-income energy assistance, including weatherization, over the next four years; and, an additional $2.5 million of community contributions over the same time period. A summary of today's filing is being submitted to the Securities and Exchange Commission, and a full text of the exceptions and amended order can be found at the UniSource Energy Web site. The ACC is tentatively scheduled to make a final decision on the acquisition sometime in December 2004. The transaction has received approval of UniSource Energy's shareholders and the Federal Energy Regulatory Commission. The acquisition also requires approval by the Securities and Exchange Commission under the Public Utility Holding Company Act of 1935. In November 2003, UniSource Energy entered into an agreement that provides for the acquisition of all of the company's outstanding common stock for $25.25 per share by an affiliate of Saguaro Utility Group L.P. (Saguaro), an Arizona limited partnership whose general partner is Sage Mountain, L.L.C. and whose limited partners include investment funds associated with Kohlberg Kravis Roberts & Co., L.P., J.P. Morgan Partners, LLC and Wachovia Capital Partners. UniSource Energy's primary subsidiaries include TEP, which provides electric service to more than 370,000 customers in the Tucson area; UES, provider of natural gas and electric service to more than 206,000 customers in northern and southern Arizona; and Millennium Energy Holdings, parent company of UniSource Energy's unregulated energy businesses. For more information about UniSource Energy and its subsidiaries, visit www.UniSourceEnergy.com. CONTACT: UniSource Energy Corp., Tucson Steve Lynn, 520-884-3629 (Media) Jo Smith, 520-884-3650 (Financial Analyst) SOURCE: UniSource Energy Corp.