Tucson Electric Power Company (TEP) is a vertically integrated utility that provides regulated electric service to approximately 400,000 retail customers in Southeastern Arizona. TEP’s service territory consists of a 1,155 square mile area and includes a population of approximately one million in the greater Tucson metropolitan area in Pima County, as well as parts of Cochise County. TEP holds a franchise to provide electric distribution service to customers in the Cities of Tucson and South Tucson. These franchises expire in 2026 and 2017, respectively. TEP also sells electricity to other utilities and power marketing entities in the Western United States. The Company is the principal operating subsidiary of UniSource Energy Corporation. As of December 31, 2008, TEP owned or leased 2,204 megawatts of net generating capability. TEP has transmission access and power transaction arrangements with over 120 electric systems or suppliers. (Source: 10-K)