UES customers will enjoy winter bill savings over the next five years as a result of the acquisition of UES’s parent company by Fortis Inc., the largest investor-owned gas and electric distribution utility in Canada.

Under terms of Fortis’ August 2014 acquisition of UNS Energy Corporation, customers of UES and sister company Tucson Electric Power (TEP) will receive bill credits totaling $30 million over five years. Savings totaling $10 million will be applied in year one, and $5 million will be applied annually over the next four years.

UES will apply these credits to the monthly Customer Charge on electric bills and to the Basic Service and Meter Charge on gas bills issued from October through March. Additional credits will be applied through temporary reductions in usage-based charges from October 2014 through March 2015; their impact will vary with consumption. Click on a tab below for details.

For gas customers, bill credits applied to the Basic Service and Meter Charge will range from $1.19 per month for residential customers to $27.39 per month for commercial customers with high gas usage.

Monthly Acquisition Bill Credits for Residential Gas Customers
Credit applied
to monthly
Basic Service and Meter Charge
Average credit applied
to monthly Purchase
Gas Adjustor
(PGA)*
Total monthly
bill credits
October 2014 — March 2015 $1.19 $0.83 $2.02
October 2015 — March 2016 $1.19 n/a $1.19
October 2016 — March 2017 $1.19 n/a $1.19
October 2017 — March 2018 $1.19 n/a $1.19
October 2018 — March 2019 $1.19 n/a $1.19
* This amount is based on average monthly usage of 64 therms from October 1, 2014 to March 31, 2015.

These bill credits represent the only direct impact on rates that will result from the acquisition. UES will not seek to recover any transaction-related costs in future rates. The ACC will continue to set the company’s rates based on the costs incurred to provide safe, reliable service.

For more information, visit uns.com.

For electric customers, bill credits applied to the Customer Charge will range from $1.15 per month for residential customers to $143.78 per month for the largest
commercial and industrial customers.

Monthly Acquisition Bill Credits for Residential Electric Customers
Credit applied
to monthly
Customer Charge
Average credit applied
to monthly Purchase
Power and Fuel
Adjustment Charge
(PPFAC)*
Total monthly
bill credits
October 2014 — March 2015 $1.15 $0.69 $1.84
October 2015 — March 2016 $1.15 n/a $1.15
October 2016 — March 2017 $1.15 n/a $1.15
October 2017 — March 2018 $1.15 n/a $1.15
October 2018 — March 2019 $1.15 n/a $1.15
* This amount is based on average monthly usage of 700 kilowatt hours from October 1, 2014 to March 31, 2015.

These bill credits represent the only direct impact on rates that will result from the acquisition. UES will not seek to recover any transaction-related costs in future rates. The ACC will continue to set the company’s rates based on the costs incurred to provide safe, reliable service.

For more information, visit uns.com.