June 30, 2011

UNS Subsidiaries Request Proposals for Arizona Wind Energy Projects

TUCSON, Ariz.--(BUSINESS WIRE)-- UniSource Energy Corporation subsidiaries Tucson Electric Power (TEP) and UniSource Energy Services (UES) have issued a joint request for proposals for new Arizona-based wind energy projects that could produce up to 50 megawatts (MW) of renewable power.

The process will be conducted online by Accion Group, Inc., which has served as the independent monitor of the companies' previous renewable energy RFPs. Registration information and other details about the RFP are available online at tepie.accionpower.com.

While TEP and UES have focused on developing solar power systems, both companies are preparing to integrate significant wind resources into their renewable energy portfolios this year. TEP has agreed to purchase the output of Element Power's 50-MW Macho Springs Wind Farm near Deming, N.M., while UES will buy the output of Western Wind Energy's 10-MW wind farm near Kingman. Both systems are expected to begin commercial operation in the third quarter of 2011.

UniSource Energy Corporation (NYSE: UNS) is a Tucson, Arizona-based company with consolidated assets of approximately $3.7 billion. Its primary subsidiaries include Tucson Electric Power, which serves more than 402,000 customers in southern Arizona, and UniSource Energy Services, provider of natural gas and electric service for about 237,000 customers in northern and southern Arizona. For more information, visit uns.com.

UniSource Energy Corporation
News Media Contact:
Joe Salkowski, 520-884-3625
jsalkowski@tep.com
Financial Analyst Contact:
Chris Norman, 520-884-3649
cnorman@uns.com

Source: UniSource Energy Corporation

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