Fortis Inc. completed its acquisition of UNS Energy Corporation on Friday, adding UNS Energy subsidiaries TEP (Tucson Electric Power) and UniSource Energy Services to list of electric and gas utility companies.
TEP and UES will remain headquartered in Tucson under local control with current management and no planned changes to existing operations. Under the terms of a written order issued by the Arizona Corporation Commission (ACC) on Aug. 12, both companies will have enhanced financial strength and other benefits as part of Fortis, while their Arizona customers will receive $30 million in bill credits over the next five years.
With the $4.5 billion acquisition, which includes the assumption of $2 billion in debt, UNS Energy becomes the second largest subsidiary of Fortis and expands that company’s customer base to more than 3 million. Fortis is Canada’s largest investor-owned electric and gas distribution holding company, with regulated utility holdings in Canada, the United States and the Caribbean.
The UNS Energy Board of Directors was reconstituted today as a result of the acquisition. In addition to Perry and John C. Walker, Fortis’ Executive Vice President of Western Canadian Operations, the board’s nine members include Hutchens and six other longtime Arizona residents who will continue on as independent directors from the previous UNS Energy Board:
•Lawrence J. Aldrich, Chairman and Executive Director of the Arizona Business Coalition on Health.
•Robert A. Elliott, President and Owner, Elliott Accounting.
•Louise L. Francesconi, former President of Raytheon Missile Systems.
•Ramiro G. Peru, former Executive Vice President and Chief Financial Officer of Phelps Dodge Corporation.
•Gregory A. Pivirotto, former CEO and Director of University Medical Center.
•Joaquin Ruiz, Dean of the University of Arizona College of Science, Executive Dean of the Colleges of Letters, Arts and Sciences.
UNS Energy remains the parent company of TEP and UES and will continue to oversee their local operations. UNS Energy’s stock will no longer trade on the New York Stock Exchange. Shareholders will be notified by transfer agency Computershare with instructions on how to redeem their shares.