Arizona administrative law judge approves TEP buyout by Fortis

power electricityA Canadian company, Fortis Inc. announced on Wednesday, that the recent recommended opinion and order of the Arizona administrative law judge assigned by the Arizona Corporation Commission to review the Corporation’s proposed acquisition of UNS Energy Corporation has determined that the acquisition is in the public interest and recommended approval of the acquisition by the ACC.

Consideration of the Recommended Order has tentatively been scheduled for the ACC’s Open Meeting to be held on August 12-13, 2014.

UNS would remain under local management and customers of its subsidiaries, Tucson Electric Power, and UniSource Energy Services would receive bill credits totaling $30 million over five years.

The recommended Order will be considered by the ACC in determining whether to approve the Acquisition. If the transaction is approved by the ACC at its August Open Meeting, the Acquisition is expected to close by the end of August 2014.

The Acquisition was announced in December 2013. UNS Energy shareholders approved the Acquisition in March 2014. All required regulatory approvals by U.S. federal agencies have also been received.

Fortis is the largest investor-owned electric and gas distribution utility in Canada, with total assets of approximately $18.6 billion and fiscal 2013 revenue exceeding $4 billion. Its regulated utilities account for approximately 90% of total assets and serve approximately 2.5 million customers across Canada and in New York State and the Caribbean. Fortis owns non-regulated hydroelectric generation assets in Canada, Belize and Upstate New York.

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