Exhibit 99.2

UniSource Energy Corporation
3rd Quarter 2011 Supplemental Earnings Information
As of October 31, 2011

TABLE OF CONTENTS

Safe Harbor and Non-GAAP Measures			1
Revision to Financial Statements and UNS Electric Results of Operations			2
Variance Explanations — Q3 and YTD			3-4
UniSource Energy and TEP O&M			5
TEP Operating Statistics			6
TEP Margin Revenues			7
UNS Electric Operating Statistics			8
UNS Gas Operating Statistics			9
Basic & Diluted Shares Outstanding			10

SAFE HARBOR AND NON-GAAP MEASURES

This document contains forward-looking information that involves risks and uncertainties, that include, but are not limited to: state and federal regulatory and legislative decisions and actions; regional economic and market conditions which could affect customer growth and energy usage; weather variations affecting energy usage; the cost of debt and equity capital and access to capital markets; the performance of the stock market and changing interest rate environment, which affect the value of the company’s pension and other postretirement benefit plan assets and the related contribution requirements and expense; unexpected increases in O&M expense; resolution of pending litigation matters; changes in accounting standards; changes in critical accounting estimates; the ongoing restructuring of the electric industry; changes to long-term contracts; the cost of fuel and power supplies; performance of TEP’s generating plants; and other factors listed in UniSource Energy’s Form 10-K and 10-Q filings with the Securities and Exchange Commission. The preceding factors may cause future results to differ materially from historical results or from outcomes currently expected by UniSource Energy. The forecast assumptions and estimates below are not intended to be a full list of factors which could cause UniSource Energy’s future results to differ from current expectations. Please refer to UniSource Energy’s SEC filings for more information regarding risks and other uncertainties that could cause current expectations to differ from future results.

The Company’s press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements.

Non-GAAP financial measures utilized by the Company include presentations of revenues, operating expenses, operating income and earnings (loss) per share. The Company uses these non-GAAP measures to evaluate the operations of the Company. Certain non-GAAP financial measures utilized by the Company exclude: the impact of non-recurring items: the effect of accounting changes or adjustments; expenses that are reimbursed by third parties; and other items. The Company’s management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings or cash flow capacity of the Company’s operations. Management also believes that the presentation of the non-GAAP financial measures is largely consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures with respect to prior periods.

Revision of Prior Period Financial Statements

During the first half of 2011, we identified errors related to prior periods in two categories: (i) deliveries of electricity related to transmission agreements at TEP; and (ii) the calculation of income tax expense as it relates to Allowance for Equity Funds Used During Construction (AFUDC). We assessed the materiality of these errors on prior period financial statements and concluded that while they were not material to any prior annual or interim periods, the cumulative impact could be material to the annual period ending December 31, 2011, and the interim period ended June 30, 2011, if included in 2011. As a result, in accordance with Staff Accounting Bulletin 108, we have revised our prior period financial statements.

In the third quarter of 2011, following the review of our remaining agreements, we identified additional errors in prior periods. We assessed the materiality of these errors, considered together with the errors identified in the first half of 2011, on prior period financial statements and concluded that, while they were not material to any prior annual or interim periods, we should update the prior revision to reflect all of the errors identified in 2011. As a result, in accordance with Staff Accounting Bulletin 108, we revised our prior period financial statements. Please refer to UniSource Energy’s and TEP’s third quarter SEC form 10-Q, which is expected to be filed on or before November 9, 2011, for more information.

UNS Electric Results of Operations

In July 2011, UNS Electric purchased the Black Mountain Generating Station from UniSource Energy Development, a subsidiary of UniSource Energy. In accordance with accounting rules related to the transfer of a business held under common control, we reflect UNS Electric’s purchase of BMGS as if it occurred on January 1, 2009. The transaction increased UNS Electric’s net income by $2 million for the three months ended September 30, 2010, and had no impact to the three months ended September 30, 2011. UNS Electric’s net income increased by $2 million for the nine months ended September 30, 2011, and $4 million for the nine months ended September 30, 2010. The transaction had no impact on UniSource Energy’s consolidated financial statements. Please refer to UniSource Energy’s and TEP’s third quarter SEC form 10-Q, which is expected to be filed on or before November 9, 2011, for more information.

UNISOURCE ENERGY QUARTER OVER QUARTER EARNINGS VARIANCE EXPLANATION

		3rd Quarter 2010 UniSource Energy Net Income																$	55.7
		3rd Quarter								Change
		2011				2010				Pre-Tax				After Tax
		-millions of dollars-
TEP
Retail Margin Revenues		$	184.7			$	188.2			$	(3.5	)		$	(2.1	)
L-T Wholesale Margin Revenues			0.6				5.6				(5.0	)			(3.1	)
Transmission Revenues			4.0				4.4				(0.4	)			(0.2	)
TEP Utility Gross Margin (Non-GAAP)			189.3				198.2			$	(8.9	)		$	(5.4	)
El Paso Settlement			7.4				0.0				7.4				4.5
Base O&M			(54.4	)			(52.6	)			(1.8	)			(1.1	)
Depreciation			(26.5	)			(25.2	)			(1.3	)			(0.8	)
Amortization			(8.8	)			(8.2	)			(0.6	)			(0.4	)
Operating synergies related to Springerville Units 3&4			6.0				5.6				0.4				0.2
Total Interest Expense			(22.3	)			(20.2	)			(2.1	)			(1.3	)
Other Line Item Changes			(2.4	)			(0.4	)			(2.0	)			(1.2	)
Income Tax Expense			(34.4	)			(37.5	)		NM					3.1
TEP Net Income (GAAP)		$	53.9			$	59.7			NM				$	(5.8	)
		Change in TEP Net Income																	(5.8	)
Other Business Segments — After Tax Amounts
UNS Electric Net Income			7.0				4.6			NM					2.4
UNS Gas Net Income			(0.7	)			(1.0	)		NM					0.3
Other Non-Reportable Segments and Consolidating Adj.			(0.5	)			(7.6	)		NM					7.1
Total Other Income and Consolidating Adjustments			5.8				(4.0	)		NM					9.8
		Change in UNS Electric, UNS Gas and Other																	9.8
		3rd Quarter 2011 UniSource Energy Net Income																$	59.7

UNISOURCE ENERGY YEAR-TO-DATE EARNINGS VARIANCE EXPLANATION

		YTD Sept. 30, 2010 UniSource Energy Net Income																$	101.7
		YTD Sept 30,								Change
		2011				2010				Pre-Tax				After Tax
		-millions of dollars-
TEP
Retail Margin Revenues		$	432.5			$	433.2			$	(0.7	)		$	(0.4	)
L-T Wholesale Margin Revenues			11.7				20.3				(8.6	)			(5.3	)
Transmission Revenues			12.3				15.6				(3.3	)			(2.0	)
TEP Utility Gross Margin (Non-GAAP)			456.5				469.1				($12.6	)			($7.8	)
El Paso Settlement			7.4				0.0				7.4				4.6
Loss related to the settlement of a dispute over transactions with the California Power Exchange (CPX)			0.0				(3.0	)			3.0				1.9
Base O&M			(172.6	)			(162.4	)			(10.2	)			(6.3	)
Depreciation			(78.1	)			(74.1	)			(4.0	)			(2.5	)
Amortization			(25.3	)			(24.0	)			(1.3	)			(0.8	)
Operating synergies related to Springerville Units 3&4			18.2				18.1				0.1				0.1
Other Income			(0.2	)			2.1				(2.3	)			(1.4	)
Total Interest Expense			(65.7	)			(63.7	)			(2.0	)			(1.2	)
Other Line Item Changes			(4.3	)			(5.6	)			1.3				0.8
Income Tax Expense			(52.1	)			(58.4	)		NM					6.3
TEP Net Income (GAAP)		$	83.8			$	98.1			NM				$	(14.3	)
		Change in TEP Net Income																	(14.3	)
Other Business Segments — After Tax Amounts
UNS Electric Net Income (1)			14.4				12.1			NM					2.3
UNS Gas Net Income			5.8				5.3			NM					0.5
Other Non-Reportable Segments and Consolidating Adj.			(2.2	)			(13.8	)		NM					11.6
Total Other Income and Consolidating Adjustments			18.0				3.6			NM					14.4
		Change in UNS Electric, UNS Gas and Other																	14.4
		YTD Sept. 30, 2011 UniSource Energy Net Income																$	101.8

UNISOURCE ENERGY AND TEP O&M

UniSource Energy		3rd Quarter								YTD Sept. 30,
O&M Components		2011				2010				2011				2010
		-millions of dollars-								-millions of dollars-
TEP Base O&M (Non-GAAP)		$	54.4			$	52.6			$	172.6			$	162.4
UNS Gas Base O&M			5.4				6.0				17.7				17.9
UNS Electric Base O&M			5.0				5.3				14.9				15.6
Consolidating Adjustments & Other			(2.5	)			(2.2	)			(7.2	)			(6.6	)
UniSource Energy Base O&M (Non-GAAP)		$	62.3			$	61.7			$	198.0			$	189.3
Reimbursed O&M Related to Springerville Units 3 and 4			16.2				14.0				48.5				40.5
O&M Related to Customer-funded Renewable Energy and DSM Programs			12.3				13.2				35.4				29.2
UniSource Energy O&M (GAAP)		$	90.8			$	88.9			$	281.9			$	259.0

TEP		3rd Quarter								YTD Sept. 30,
O&M Components		2011				2010				2011				2010
		-millions of dollars-								-millions of dollars-
TEP Base O&M (Non-GAAP)		$	54.4			$	52.6			$	172.6			$	162.4
O&M Recorded in Other Expense			(1.4	)			(1.6	)			(5.2	)			(4.9	)
Reimbursed O&M Related to Springerville Units 3 and 4			16.2				14.0				48.5				40.5
O&M Related to Customer-funded Renewable Energy and DSM Programs			10.6				9.7				30.5				21.7
TEP O&M (GAAP)		$	79.8			$	74.7			$	246.4			$	219.7

TEP — OPERATING STATISTICS

		Three Months Ended Sept. 30,																Nine Months Ended Sept. 30,
		2011				2010				Incr (Decr)				% Change				2011				2010				Incr (Decr)				% Change
AVG. ELECTRIC CUSTOMERS
Residential			366,640				365,583				1,057				0.3	%			366,415				365,632				783				0.2	%
Commercial			36,121				35,880				241				0.7	%			36,020				35,852				168				0.5	%
Industrial			637				631				6				1.0	%			635				632				3				0.5	%
Mining			3				3				—				0.0	%			2				2				—				0.0	%
Other			62				62				—				0.0	%			62				62				—				0.0	%
Total			403,463				402,159				1,304				0.3	%			403,134				402,180				954				0.2	%
RETAIL SALES — MWH
Residential			1,416,344				1,444,461				(28,117	)			-1.9	%			3,108,461				3,109,007				(546	)			0.0	%
Commercial			597,992				612,303				(14,311	)			-2.3	%			1,516,838				1,515,901				937				0.1	%
Industrial			632,092				629,849				2,243				0.4	%			1,653,608				1,639,500				14,108				0.9	%
Mining			274,029				274,420				(391	)			-0.1	%			810,934				806,571				4,363				0.5	%
Other			65,335				65,199				136				0.2	%			182,251				178,068				4,183				2.3	%
Total			2,985,792				3,026,232				(40,440	)			-1.3	%			7,272,092				7,249,047				23,045				0.3	%
RETAIL USAGE — KWH/CUSTOMER
Residential			3,863				3,951				(88	)			-2.2	%			8,483				8,503				(20	)			-0.2	%
Commercial			16,555				17,065				(510	)			-3.0	%			42,111				42,282				(171	)			-0.4	%
Industrial			992,295				998,176				(5,881	)			-0.6	%			2,604,107				2,594,146				9,961				0.4	%
Mining			91,343,000				91,473,333				(130,333	)			-0.1	%			405,467,000				403,285,500				2,181,500				0.5	%
Other			1,053,790				1,051,597				2,193				0.2	%			2,939,532				2,872,065				67,467				2.3	%
Total			7,400				7,525				(125	)			-1.7	%			18,039				18,024				15				0.1	%
WEATHER — COOLING DEGREE DAYS
Actual			1,090				1,096				(6	)			-0.5	%			1,480				1,491				(11	)			-0.7	%
10-Year Average			990				978												1,434				1,433
% Change Actual vs. 10-Year Avg.			10.1	%			12.1	%											3.2	%			4.0	%
ENERGY MARKET INDICATORS
Avg. Wholesale Power Prices
Palo Verde Index — $/MWh
On Peak		$	42.64			$	38.65			$	3.99				10.3	%		$	37.21			$	38.88			$	(1.67	)			-4.3	%
Off Peak		$	25.57			$	26.67			$	(1.10	)			-4.1	%		$	20.62			$	28.36			$	(7.74	)			-27.3	%
Avg. Natural Gas Prices
Permian Index — $/MMBtu		$	4.09			$	3.94			$	0.15				3.8	%		$	4.04			$	4.33			$	(0.29	)			-6.7	%

TEP — RETAIL AND WHOLESALE MARGIN REVENUES

		Three Months Ended Sept. 30,																Nine Months Ended Sept. 30,
		2011				2010				Incr (Decr)				% Change				2011				2010				Incr (Decr)				% Change
RETAIL REVENUES — $ MILLIONS
Margin Revenues:
Residential		$	94.3			$	96.8				(2.5	)			-2.6	%		$	202.6				203.4				(0.8	)			-0.4	%
Commercial			50.0				51.1				(1.1	)			-2.2	%			123.5				123.4				0.1				0.1	%
Industrial			28.7				28.8				(0.1	)			-0.3	%			73.2				74.1				(0.9	)			-1.2	%
Mining			8.3				8.1				0.2				2.5	%			23.9				23.2				0.7				3.0	%
Other			3.4				3.4				—				0.0	%			9.3				9.1				0.2				2.2	%
Total		$	184.7			$	188.2			$	(3.5	)			-1.9	%		$	432.5			$	433.2			$	(0.7	)			-0.2	%
DSM / REST			12.0				11.8				0.2				1.7	%			36.1				29.8				6.3				21.1	%
Fuel Revenues:
Recovered from Customers			112.2				100.3				11.9				11.9	%			245.7				222.3				23.4				10.5	%
Total Retail Revenues		$	308.9			$	300.3			$	8.6				2.9	%		$	714.3			$	685.3			$	29.0				4.2	%
RETAIL REVENUES — CENTS / KWH
Margin Revenues:
Residential			6.66				6.70				(0.04	)			-0.6	%			6.52				6.54				(0.02	)			-0.3	%
Commercial			8.36				8.35				0.01				0.1	%			8.14				8.14				0.00				0.0	%
Industrial			4.54				4.57				(0.03	)			-0.7	%			4.43				4.52				(0.09	)			-2.0	%
Mining			3.03				2.95				0.08				2.7	%			2.95				2.88				0.07				2.4	%
Other			5.20				5.21				(0.01	)			-0.2	%			5.10				5.11				(0.01	)			-0.2	%
Total			6.19				6.22				(0.03	)			-0.5	%			5.95				5.98				(0.03	)			-0.5	%
DSM / REST			0.40				0.39				0.01				2.6	%			0.50				0.41				0.09				22.0	%
Fuel Revenues:
Recovered from Customers			3.76				3.31				0.45				13.6	%			3.38				3.07				0.31				10.1	%
Total Retail Revenues			10.35				9.92				0.43				4.3	%			9.83				9.46				0.37				3.9	%
LONG-TERM WHOLESALE MARGIN — $ MILLIONS
Long-term Wholesale Revenues		$	8.9			$	13.8				(4.9	)			-35.5	%		$	32.8			$	41.7				(8.9	)			-21.3	%
Fuel and Purchased Power Expense			8.3				8.2				0.1				1.2	%			21.1				21.4				(0.3	)			-1.4	%
Net		$	0.6			$	5.6				(5.0	)			-89.3	%		$	11.7			$	20.3				(8.6	)			-42.4	%

UNS ELECTRIC — OPERATING STATISTICS

		Three Months Ended Sept. 30,																Nine Months Ended Sept. 30,
		2011				2010				Incr (Decr)				% Change				2011				2010				Incr (Decr)				% Change
AVG. ELECTRIC CUSTOMERS
Residential			80,607				80,215				392				0.5	%			80,570				80,149				421				0.5	%
Commercial			10,391				10,349				42				0.4	%			10,381				10,346				35				0.3	%
Industrial			22				23				(1	)			-4.3	%			22				24				(2	)			-8.3	%
Mining			2				2				—				0.0	%			2				1				1				N/M
Other			249				266				(17	)			-6.4	%			249				266				(17	)			-6.4	%
Total			91,271				90,855				416				0.5	%			91,224				90,786				438				0.5	%
RETAIL SALES — MWH
Residential			298,564				301,191				(2,627	)			-0.9	%			651,995				652,457				(462	)			-0.1	%
Commercial			172,877				181,275				(8,398	)			-4.6	%			462,731				469,860				(7,129	)			-1.5	%
Industrial			61,555				62,090				(535	)			-0.9	%			167,446				165,471				1,975				1.2	%
Mining			49,801				51,115				(1,314	)			-2.6	%			172,473				149,254				23,219				15.6	%
Other			335				480				(145	)			-30.2	%			1,183				1,520				(337	)			-22.2	%
Total			583,132				596,151				(13,019	)			-2.2	%			1,455,828				1,438,562				17,266				1.2	%
RETAIL USAGE — KWH/CUSTOMER
Residential			3,704				3,755				(51	)			-1.4	%			8,092				8,141				(49	)			-0.6	%
Commercial			16,637				17,516				(879	)			-5.0	%			44,575				45,415				(840	)			-1.8	%
Industrial			2,797,955				2,699,565				98,390				3.6	%			7,611,182				6,894,625				716,557				10.4	%
Mining			24,900,500				25,557,500				(657,000	)			-2.6	%			86,236,500				149,254,000				(63,017,500	)			-42.2	%
Other			1,345				1,805				(460	)			-25.5	%			4,751				5,714				(963	)			-16.9	%
Total			6,389				6,562				(173	)			-2.6	%			15,959				15,846				113				0.7	%
RETAIL REVENUES — MILLIONS
Margin Revenues:
Residential		$	11.1			$	8.4				2.7				32.1	%		$	24.4			$	21.0				3.4				16.2	%
Commercial			7.7				7.3				0.4				5.5	%			22.0				20.3				1.7				8.4	%
Industrial			2.3				2.2				0.1				4.5	%			6.6				6.3				0.3				4.8	%
Mining			1.7				1.3				0.4				30.8	%			4.9				3.8				1.1				28.9	%
Other			0.1				0.1				—				0.0	%			0.3				0.4				(0.1	)			-25.0	%
Total Margin Revenues		$	22.9			$	19.3			$	3.6				18.7	%		$	58.2			$	51.8			$	6.4				12.4	%
DSM / REST			1.6				3.2				(1.6	)			-50.0	%			4.5				6.8				(2.3	)			-33.8	%
Fuel Revenues:
Recovered from Customers			30.0				37.2				(7.2	)			-19.4	%			79.2				80.8				(1.6	)			-2.0	%
Total Retail Revenues		$	54.5			$	59.7			$	(5.2	)			-8.7	%		$	141.9			$	139.4			$	2.5				1.8	%
WEATHER — COOLING DEGREE DAYS
Actual			5,766				5,758				8				0.1	%			8,513				8,235				278				3.4	%
10-Year Average			5,469				5,433												8,434				8,462
% Change Actual vs. 10-Year Avg.			5.4	%			6.0	%											0.9	%			-2.7	%

UNS GAS — OPERATING STATISTICS

		Three Months Ended Sept. 30,																Nine Months Ended Sept. 30,
		2011				2010				Incr (Decr)				% Change				2011				2010				Incr (Decr)				% Change
AVG. GAS CUSTOMERS
Residential			133,799				132,768				1,031				0.8	%			134,078				133,206				872				0.7	%
Commercial			11,159				11,080				79				0.7	%			11,230				11,248				(18	)			-0.2	%
Industrial			22				22				—				0.0	%			22				23				(1	)			-4.3	%
Other			1,123				1,095				28				2.6	%			1,116				1,092				24				2.2	%
Total			146,103				144,965				1,138				0.8	%			146,446				145,569				877				0.6	%
RETAIL SALES — THOUSANDS OF THERMS
Residential			5,114				5,096				18				0.4	%			48,095				49,649				(1,554	)			-3.1	%
Commercial			4,038				3,915				123				3.1	%			20,883				20,936				(53	)			-0.3	%
Industrial			419				305				114				37.2	%			1,655				1,357				298				22.0	%
Other			302				352				(50	)			-14.2	%			4,265				4,465				(200	)			-4.5	%
Total			9,872				9,668				204				2.1	%			74,898				76,407				(1,509	)			-2.0	%
RETAIL USAGE — THERMS/CUSTOMER
Residential			38				38				—				0.0	%			359				373				(14	)			-3.8	%
Commercial			362				353				9				2.5	%			1,860				1,861				(1	)			-0.1	%
Industrial			19,047				13,881				5,166				37.2	%			75,227				59,000				16,227				27.5	%
Other			269				321				(52	)			-16.2	%			3,822				4,089				(267	)			-6.5	%
Total			68				67				1				1.5	%			511				525				(14	)			-2.7	%
RETAIL REVENUES — MILLIONS
Margin Revenues:
Residential		$	5.7			$	5.6				0.1				1.8	%		$	27.4			$	27.3				0.1				0.4	%
Commercial			1.6				1.6				—				0.0	%			7.4				7.1				0.3				4.2	%
Other			0.2				0.2				—				0.0	%			1.4				1.4				—				0.0	%
Total Margin Revenues		$	7.5			$	7.4			$	0.1				1.4	%		$	36.2			$	35.8			$	0.4				1.1	%
DSM Revenues			0.2				0.3				(0.1	)			-33.3	%			0.8				0.7				0.1				14.3	%
Transport/NSP Revenues			3.6				4.8				(1.2	)			-25.0	%			12.6				13.2				(0.6	)			-4.5	%
Fuel Revenues:
Recovered from Customers			6.6				6.2				0.4				6.5	%			51.5				51.2				0.3				0.6	%
Total Gas Revenues		$	17.9			$	18.7			$	(0.8	)			-4.3	%		$	101.1			$	100.9			$	0.2				0.2	%
WEATHER — HEATING DEGREE DAYS
Actual			242				224				18				8.0	%			15,713				13,621				2,092				15.4	%
10-Year Average			330				333												12,730				12,741
% Change Actual vs. 10-Year Avg.			-26.7	%			-32.7	%											23.4	%			6.9	%