UNS Energy Corp - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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8-K - 8-K - UNS Energy Corp	coverpage9302013.htm
EX-99.1 - EXHIBIT 99.1 - UNS Energy Corp	ex9919302013.htm
EX-99.3 - EXHIBIT 99.3 - UNS Energy Corp	q32013webcastslides.htm

Exhibit 99.2

UNS Energy Corporation

3rd Quarter 2013 Supplemental Earnings Information

As of November 6, 2013



TABLE OF CONTENTS
Safe Harbor and Non-GAAP Measures	1
Variance Explanation	2
UNS Energy and TEP O&M	4
TEP Operating Statistics	5
TEP Margin Revenues	7
UNS Electric Operating Statistics	9
UNS Gas Operating Statistics	11
Basic & Diluted Shares Outstanding	13

SAFE HARBOR AND NON-GAAP MEASURES

This document contains forward-looking information that involves risks and uncertainties, which 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 retiree 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 UNS 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 UNS Energy. The forecast assumptions and estimates below are not intended to be a full list of factors which could cause UNS Energy’s future results to differ from current expectations. Please refer to UNS 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.

UNS ENERGY 3RD QUARTER EARNINGS VARIANCE EXPLANATION



3rd Quarter 2012 UNS Energy Net Income													$	50.7
	Three Months Ended September 30,						Change
TEP	2013			2012			Pre-Tax			After Tax
	Millions of Dollars
Utility Gross Margin Components:
Retail Margin Revenues⁽¹⁾	$	206.3		$	177.4		$	28.9		17.8
L-T Wholesale Margin Revenues⁽¹⁾	1.6			1.1			0.5			0.3
Transmission Revenues	3.6			3.9			(0.3		)	(0.2		)
Total	211.5			182.4			29.1			17.9
Other Income Sources:
Operating synergies—Springerville Units 3&4	6.7			3.8			2.9			1.8
Expenses:
Base O&M⁽¹⁾	57.3			53.5			3.8			2.3
Depreciation	30.3			27.6			2.7			1.7
Amortization	6.1			10.0			(3.9		)	(2.4		)
Total Other Deductions (Income)	0.6			0.4			0.2			0.1
Total Interest Expense	19.6			22.0			(2.4		)	(1.5		)
Other Line Item Changes	1.3			0.9			0.4			0.2
Income Tax Expense	38.8			27.2			NM			11.6
TEP Net Income (GAAP)	$	64.2		$	44.6		NM			$	19.6
Change in TEP Net Income													19.6
Other Business Segments—After Tax Amounts
UNS Electric Net Income	$	5.3		$	6.4		NM			$	(1.1	)
UNS Gas Net Income	(1.3		)	(0.4		)	NM			(0.9		)
Millennium Energy Holdings Net Income	0.1			0.4			NM			(0.3		)
Other and Consolidating Adjustments	(0.3		)	(0.3		)	NM			—
Total Net Income from Other Business Segments and Consolidating Adjustments	$	3.8		$	6.1		NM			$	(2.3	)
Change in UNS Electric, UNS Gas, Millennium Energy Holdings and Other Net Income													(2.3		)
3rd Quarter 2013 UNS Energy Net Income													$	68.0

⁽¹⁾ Retail Margin Revenues, Long-Term Wholesale Margin and Base O&M are all non-GAAP measures. See the following pages for a reconciliation of these non-GAAP measures.

UNS ENERGY YEAR TO DATE EARNINGS VARIANCE EXPLANATION



YTD September 30, 2012 UNS Energy Net Income													$	83.4
	YTD September 30,						Change
TEP	2013			2012			Pre-Tax			After Tax
	Millions of Dollars
Utility Gross Margin Components:
Retail Margin Revenues⁽¹⁾	$	461.4		$	428.9		$	32.5		19.9
L-T Wholesale Margin Revenues⁽¹⁾	5.3			3.0			2.3			1.4
Transmission Revenues	11.1			11.6			(0.5		)	(0.3		)
Total	477.8			443.5			34.3			21.0
Other Income Sources:
Operating synergies—Springerville Units 3&4	17.6			15.2			2.4			1.5
Expenses:
Base O&M⁽¹⁾	179.3			173.5			5.8			3.6
Depreciation	87.7			82.7			5.0			3.1
Amortization	24.4			29.6			(5.2		)	(3.2		)
PPFAC Adjustment⁽²⁾	3.0			—			3.0			1.8
Total Other Deductions (Income)	1.7			0.1			1.6			1.0
Total Interest Expense	59.5			65.6			(6.1		)	(3.7		)
Other Line Item Changes	1.7			2.8			(1.1		)	(0.7		)
Income Tax Expense⁽³⁾	41.7			39.4			NM			2.3
TEP Net Income (GAAP)	$	96.4		$	65.0		NM			$	31.4
Change in TEP Net Income													31.4
Other Business Segments—After Tax Amounts
UNS Electric Net Income	$	11.3		$	13.7		NM			$	(2.4	)
UNS Gas Net Income	6.4			5.1			NM			1.3
Millennium Energy Holdings Net Income	0.4			1.7			NM			(1.3		)
Other and Consolidating Adjustments	(0.5		)	(2.1		)	NM			1.6
Total Net Income from Other Business Segments and Consolidating Adjustments	$	17.6		$	18.4		NM			$	(0.8	)
Change in UNS Electric, UNS Gas, Millennium Energy Holdings and Other Net Income													(0.8		)
YTD September 30, 2013 UNS Energy Net Income													$	114.0

⁽¹⁾ Retail Margin Revenues, Long-Term Wholesale Margin and Base O&M are all non-GAAP measures. See the following pages for a reconciliation of these non-GAAP measures.

⁽²⁾ A one-time credit to retail customers that was approved in TEP's recently completed rate case, recorded to fuel expense during the second quarter of 2013.

⁽³⁾A $10.8 million reduction to income tax expense related to a regulatory asset that was recorded during the second quarter of 2013 for deferred tax expenses that will be recovered in future periods.

UNS ENERGY AND TEP O&M



UNS Energy	Three Months Ended September 30,				YTD September 30,
O&M Components	2013		2012		2013		2012
	Millions of Dollars				Millions of Dollars
UNS Energy Base O&M (Non-GAAP) ⁽¹⁾	67.8		61.0		$	208.3	$	198.2
Reimbursed O&M Related to Springerville Units 3 and 4	18.4		26.0		48.6		52.6
O&M Related to Customer-funded Renewable Energy and DSM Programs	7.0		11.3		21.3		32.8
UNS Energy O&M (GAAP)	$	93.2	$	98.3	$	278.2	$	283.6



TEP	Three Months Ended September 30,						YTD September 30,
O&M Components	2013			2012			2013			2012
	Millions of Dollars						Millions of Dollars
TEP Base O&M (Non-GAAP) ⁽¹⁾	$	57.3		$	53.5		$	179.3		$	173.5
O&M Included in Other Expense	(2.2		)	(1.3		)	(5.7		)	(3.4		)
Reimbursed O&M Related to Springerville Units 3 and 4	18.4			26.0			48.6			52.6
O&M Related to Customer-funded Renewable Energy and DSM Programs	5.8			8.7			17.0			25.4
TEP O&M (GAAP)	$	79.3		$	86.9		$	239.2		$	248.1

⁽¹⁾ Base O&M, a non-GAAP financial measure, should not be considered as an alternative to Other O&M, which is determined in accordance with GAAP. We believe Base O&M provides useful information to investors because it represents the fundamental level of operating and maintenance expense related to our core utility business. Base O&M excludes expenses that are directly offset by revenues collected from customers and other third parties.

TEP—OPERATING STATISTICS



	Three Months Ended September 30,
	2013			2012			Incr (Decr)			% Change
AVG. ELECTRIC CUSTOMERS
Residential	371,354			368,460			2,894			0.8	%
Commercial	37,821			37,589			232			0.6	%
Industrial	622			633			(11		)	(1.7	)%
Mining	4			4			—			NM
Other	1,847			1,824			23			1.3	%
Total	411,648			408,510			3,138			0.8	%
RETAIL SALES—MWH
Residential	1,353,883			1,332,086			21,797			1.6	%
Commercial	651,597			648,085			3,512			0.5	%
Industrial	621,490			615,829			5,661			0.9	%
Mining	275,212			274,818			394			0.1	%
Other	7,068			6,686			382			5.7	%
Total	2,909,250			2,877,504			31,746			1.1	%
RETAIL USAGE—KWH/CUSTOMER
Residential	3,646			3,615			31			0.9	%
Commercial	17,228			17,241			(13		)	(0.1	)%
Industrial	999,180			972,874			26,306			2.7	%
Mining	68,803,000			68,704,500			98,500			0.1	%
Other	3,827			3,666			161			4.4	%
Total	7,067			7,044			23			0.3	%
WEATHER—COOLING DEGREE DAYS
Actual	1,042			957			85			8.9	%
10-Year Average	992			990
% Change Actual vs. 10-Year Avg.	5.0		%	(3.3		)%
ENERGY MARKET INDICATORS
Avg. Wholesale Power Prices
Palo Verde Hub—$/MWh
On Peak	$	41.21		$	35.85		$	5.36		15.0	%
Off Peak	$	27.20		$	21.50		$	5.70		26.5	%
Avg. Natural Gas Prices
Permian Index—$/MMBtu	$	3.45		$	2.78		$	0.67		24.1	%

Note: Some items above are calculated on un-rounded data and may not precisely correspond to data shown in table.

TEP—OPERATING STATISTICS



	Nine Months Ended September 30,
	2013			2012			Incr (Decr)			% Change
AVG. ELECTRIC CUSTOMERS
Residential	370,515			367,896			2,619			0.7	%
Commercial	37,741			37,557			184			0.5	%
Industrial	623			633			(10		)	(1.6	)%
Mining	4			4			—			NM
Other	1,839			1,821			18			1.0	%
Total	410,722			407,911			2,811			0.7	%
RETAIL SALES—MWH
Residential	3,148,657			3,084,784			63,873			2.1	%
Commercial	1,701,568			1,682,071			19,497			1.2	%
Industrial	1,637,541			1,628,532			9,009			0.6	%
Mining	803,366			817,611			(14,245		)	(1.7	)%
Other	23,029			22,529			500			2.2	%
Total	7,314,161			7,235,527			78,634			1.1	%
RETAIL USAGE—KWH/CUSTOMER
Residential	8,498			8,385			113			1.3	%
Commercial	45,085			44,787			298			0.7	%
Industrial	2,628,477			2,572,720			55,757			2.2	%
Mining	200,841,500			204,402,750			(3,561,250		)	(1.7	)%
Other	12,523			12,372			151			1.2	%
Total	17,808			17,738			70			0.4	%
WEATHER—COOLING DEGREE DAYS
Actual	1,619			1,523			96			6.3	%
10-Year Average	1,456			1,443
% Change Actual vs. 10-Year Avg.	11.2		%	5.5		%
HEATING DEGREE DAYS
Actual	983			790			193			24.4	%
10-Year Average	867			845
% Change Actual vs. 10-year Avg.	13.4		%	(6.5		)%
ENERGY MARKET INDICATORS
Avg. Wholesale Power Prices
Palo Verde Hub—$/MWh
On Peak	$	37.16		$	28.91		$	8.25		28.5	%
Off Peak	$	27.30		$	19.18		$	8.12		42.3	%
Avg. Natural Gas Prices
Permian Index—$/MMBtu	$	3.57		$	2.46		$	1.11		45.1	%

Note: Some items above are calculated on un-rounded data and may not precisely correspond to data shown in table.

TEP—RETAIL AND WHOLESALE MARGIN REVENUES



	Three Months Ended September 30,
	2013		2012		Incr (Decr)			% Change
RETAIL REVENUES—$ MILLIONS
Retail Margin Revenues:⁽¹⁾
Residential	$	102.0	$	88.8	13.2			14.9	%
Commercial	62.7		52.3		10.4			19.9	%
Industrial	30.6		27.3		3.3			12.1	%
Mining	10.6		8.6		2.0			23.3	%
Other	0.4		0.4		—			—	%
Total	$	206.3	$	177.4	$	28.9		16.3	%
RES, DSM and, ECA Revenues	10.4		10.5		(0.1		)	(1.0	)%
Fuel and Purchased Power Revenues:
Recovered from Customers	93.9		115.1		(21.2		)	(18.4	)%
Total Retail Revenues	$	310.6	$	303.0	$	7.6		2.5	%
RETAIL REVENUES—CENTS / KWH
Average Retail Margin Rate (Cents/kWh):
Residential	7.53		6.67		0.86			12.9	%
Commercial	9.62		8.07		1.55			19.2	%
Industrial	4.92		4.43		0.49			11.1	%
Mining	3.85		3.13		0.72			23.0	%
Other	5.66		5.98		(0.32		)	(5.4	)%
Average Retail Margin Revenue	7.09		6.17		0.92			14.9	%
Average RES & DSM Revenue	0.36		0.36		—			NM
Average Fuel and Purchased Power Revenue
Recovered from Customers	3.23		4.00		(0.77		)	(19.3	)%
Total Average Retail Revenue	10.68		10.53		0.15			1.4	%
LONG-TERM WHOLESALE MARGIN (Non-GAAP)—$ MILLIONS⁽²⁾
Long-Term Wholesale Margin Revenues (Non-GAAP)	$	1.6	$	1.1	$	0.5		45.5	%
Fuel and Purchased Power Expense Allocated to Long-Term Wholesale Revenues	4.1		5.6		(1.5		)	(26.8	)%
Long-Term Wholesale Revenues	$	5.7	$	6.7	$	(1.0	)	(14.9	)%
Wholesale Transmission Revenues	3.6		3.9		(0.3		)	(7.7	)%
Short-term Wholesale Revenues	17.3		14.8		2.5			16.9	%
Electric Wholesale Sales (GAAP)	$	26.6	$	25.4	$	1.2		4.7	%

⁽¹⁾Retail Margin Revenues, a non-GAAP financial measure, should not be considered as an alternative to Net Electric Retail Sales, which is determined in accordance with GAAP. Retail Margin Revenues excludes: (i) revenues collected from retail customers that are directly offset by expenses recorded in other line items; and (ii) revenues collected from third parties that are unrelated to kWh sales to retail customers. We believe the change in Retail Margin Revenues between periods provides useful information to investors because it demonstrates the underlying revenue trend and performance of our core utility business. Retail Margin Revenues represents the portion of retail operating revenues available to cover the operating expenses of our core utility business.

⁽²⁾ Long-Term Wholesale Margin Revenues, a non-GAAP financial measure, should not be considered as an alternative to Electric Wholesale Sales, which is determined in accordance with GAAP. We believe the change in Long-Term Wholesale Margin Revenues between periods provides useful information to investors because it demonstrates the underlying profitability of TEP’s long-term wholesale sales contracts. Long-Term Wholesale Margin Revenues represents the portion of long-term wholesale revenues available to cover the operating expenses of our core utility business.

Note: Some items above are calculated on un-rounded data and may not precisely correspond to data shown in table.

TEP—RETAIL AND WHOLESALE MARGIN REVENUES



	Nine Months Ended September 30,
	2013		2012		Incr (Decr)			% Change
RETAIL REVENUES—$ MILLIONS
Retail Margin Revenues:⁽¹⁾
Residential	$	217.4	$	201.5	15.9			7.9	%
Commercial	143.5		132.3		11.2			8.5	%
Industrial	74.1		70.8		3.3			4.7	%
Mining	25.1		23.1		2.0			8.7	%
Other	1.3		1.2		0.1			8.3	%
Total	$	461.4	$	428.9	$	32.5		7.6	%
RES, DSM and, ECA Revenues	33.0		31.9		1.1			3.4	%
Fuel and Purchased Power Revenues:
Recovered from Customers	244.8		256.2		(11.4		)	(4.4	)%
Total Retail Revenues	$	739.2	$	717.0	$	22.2		3.1	%
RETAIL REVENUES—CENTS / KWH
Average Retail Margin Rate (Cents/kWh):
Residential	6.90		6.53		0.37			5.7	%
Commercial	8.43		7.87		0.56			7.1	%
Industrial	4.53		4.35		0.18			4.1	%
Mining	3.12		2.83		0.29			10.2	%
Other	5.65		5.33		0.32			6.0	%
Average Retail Margin Revenue	6.31		5.93		0.38			6.4	%
Average RES & DSM Revenue	0.45		0.44		0.01			2.3	%
Average Fuel and Purchased Power Revenue
Recovered from Customers	3.35		3.54		(0.19		)	(5.4	)%
Total Average Retail Revenue	10.11		9.91		0.20			2.0	%
LONG-TERM WHOLESALE MARGIN (Non-GAAP)—$ MILLIONS⁽²⁾
Long-Term Wholesale Margin Revenues (Non-GAAP)	$	5.3	$	3.0	$	2.3		76.7	%
Fuel and Purchased Power Expense Allocated to Long-Term Wholesale Revenues	13.6		15.3		(1.7		)	(11.1	)%
Long-Term Wholesale Revenues	$	18.9	$	18.3	$	0.6		3.3	%
Wholesale Transmission Revenues	11.1		11.6		(0.5		)	(4.3	)%
Short-term Wholesale Revenues	60.5		47.6		12.9			27.1	%
Electric Wholesale Sales (GAAP)	$	90.5	$	77.5	$	13.0		16.8	%

Note: Some items above are calculated on un-rounded data and may not precisely correspond to data shown in table.

UNS ELECTRIC—OPERATING STATISTICS



	Three Months Ended September 30,
	2013			2012			Incr (Decr)			% Change
AVG. ELECTRIC CUSTOMERS
Residential	81,376			80,860			516			0.6	%
Commercial	10,570			10,476			94			0.9	%
Industrial	18			21			(3		)	(14.3	)%
Mining	2			2			—			—	%
Other	561			473			88			18.6	%
Total	92,527			91,832			695			0.8	%
RETAIL SALES—MWH
Residential	286,869			290,308			(3,439		)	(1.2	)%
Commercial	171,261			171,800			(539		)	(0.3	)%
Industrial	49,777			58,228			(8,451		)	(14.5	)%
Mining	16,270			19,881			(3,611		)	(18.2	)%
Other	427			390			37			9.5	%
Total	524,604			540,607			(16,003		)	(3.0	)%
RETAIL USAGE—KWH/CUSTOMER
Residential	3,525			3,590			(65		)	(1.8	)%
Commercial	16,203			16,399			(196		)	(1.2	)%
Industrial	2,765,389			2,772,762			(7,373		)	(0.3	)%
Mining	8,135,000			9,940,500			(1,805,500		)	(18.2	)%
Other	761			825			(64		)	(7.8	)%
Total	5,670			5,887			(217		)	(3.7	)%
RETAIL REVENUES—MILLIONS
Retail Margin Revenues:
Residential	$	10.8		$	10.9		$	(0.1	)	(0.9	)%
Commercial	7.7			7.7			—			—	%
Industrial	1.9			2.3			(0.4		)	(17.4	)%
Mining	0.8			1.6			(0.8		)	(50.0	)%
Other	0.1			0.1			—			—	%
Total Retail Margin Revenues (Non-GAAP)⁽¹⁾	$	21.3		$	22.6		$	(1.3	)	(5.8	)%
RES & DSM Revenues	1.7			2.7			(1.0		)	(37.0	)%
Fuel and Purchased Power Revenues	28.6			25.3			3.3			13.0	%
Total Retail Revenues	$	51.6		$	50.6		$	1.0		2.0	%
WEATHER—COOLING DEGREE DAYS
Actual	1,840			1,969			(129		)	(6.6	)%
10-Year Average	1,975			1,972
% Change Actual vs. 10-Year Avg.	(6.8		)%	(0.2		)%

⁽¹⁾Retail Margin Revenues, a non-GAAP financial measure, should not be considered as an alternative to Total Retail Revenues, which is determined in accordance with GAAP. Retail Margin Revenues exclude revenues collected from retail customers that are directly offset by expenses recorded in other line items. We believe the change in Retail Margin Revenues between periods provides useful information to investors because it demonstrates the underlying revenue trend and performance of our core utility business. Retail Margin Revenues represents the portion of retail operating revenues available to cover the operating expenses of our core utility business.

Note: Some items above are calculated on un-rounded data and may not precisely correspond to data shown in table.

UNS ELECTRIC—OPERATING STATISTICS



	Nine Months Ended September 30,
	2013			2012			Incr (Decr)			% Change
AVG. ELECTRIC CUSTOMERS
Residential	81,351			80,814			537			0.7	%
Commercial	10,555			10,447			108			1.0	%
Industrial	18			21			(3		)	(14.3	)%
Mining	2			2			—			—	%
Other	542			461			81			17.6	%
Total	92,468			91,745			723			0.8	%
RETAIL SALES—MWH
Residential	678,250			665,534			12,716			1.9	%
Commercial	468,384			470,326			(1,942		)	(0.4	)%
Industrial	141,156			166,673			(25,517		)	(15.3	)%
Mining	45,502			75,067			(29,565		)	(39.4	)%
Other	1,354			1,199			155			12.9	%
Total	1,334,646			1,378,799			(44,153		)	(3.2	)%
RETAIL USAGE—KWH/CUSTOMER
Residential	8,337			8,235			102			1.2	%
Commercial	44,376			45,020			(644		)	(1.4	)%
Industrial	7,842,000			7,936,810			(94,810		)	(1.2	)%
Mining	22,751,000			37,533,500			(14,782,500		)	(39.4	)%
Other	2,498			2,601			(103		)	(4.0	)%
Total	14,434			15,029			(595		)	(4.0	)%
RETAIL REVENUES—MILLIONS
Retail Margin Revenues:
Residential	$	25.9		$	25.5		$	0.4		1.6	%
Commercial	21.7			21.8			(0.1		)	(0.5	)%
Industrial	5.8			6.9			(1.1		)	(15.9	)%
Mining	3.3			5.0			(1.7		)	(34.0	)%
Other	0.2			0.1			0.1			100	%
Total Retail Margin Revenues (Non-GAAP)⁽¹⁾	$	56.9		$	59.3		$	(2.4	)	(4.0	)%
RES & DSM Revenues	5.5			8.3			(2.8		)	(33.7	)%
Fuel and Purchased Power Revenues	67.0			66.4			0.6			0.9	%
Total Retail Revenues	$	129.4		$	134.0		$	(4.6	)	(3.4	)%
WEATHER—COOLING DEGREE DAYS
Actual	3,144			3,243			(99		)	(3.1	)%
10-Year Average	3,049			3,073
% Change Actual vs. 10-Year Avg.	3.1		%	5.5		%
HEATING DEGREE DAYS
Actual	1,258			1,117			141			12.6	%
10-Year Average	1,239			1,253
% Change Actual vs. 10-Year Avg.	1.5		%	(10.9		)%

Note: Some items above are calculated on un-rounded data and may not precisely correspond to data shown in table.

UNS GAS —OPERATING STATISTICS



	Three Months Ended September 30,
	2013			2012			Incr (Decr)			% Change
AVG. GAS CUSTOMERS
Residential	136,009			134,581			1,428			1.1	%
Commercial	11,264			11,197			67			0.6	%
All Other	1,124			1,140			(16		)	(1.4	)%
Total	148,397			146,918			1,479			1.0	%
RETAIL SALES—THOUSANDS OF THERMS
Residential	5,445			5,056			389			7.7	%
Commercial	4,140			3,922			218			5.6	%
All Other	667			589			78			13.2	%
Total	10,252			9,567			685			7.2	%
RETAIL USAGE—THERMS/CUSTOMER
Residential	40			38			2			5.3	%
Commercial	368			350			18			5.1	%
All Other	593			517			76			14.7	%
Total	69			65			4			6.2	%
RETAIL REVENUES—MILLIONS
Retail Margin Revenues:
Residential	$	6.0		$	5.8		$	0.2		3.4	%
Commercial	1.8			1.8			—			—	%
All Other	0.2			0.2			—			—	%
Total Retail Margin Revenues (Non-GAAP)⁽¹⁾	$	8.0		$	7.8		$	0.2		2.6	%
DSM Revenues	0.2			0.4			(0.2		)	(50.0	)%
Transport/NSP Revenues	4.3			4.7			(0.4		)	(8.5	)%
Fuel Revenues:
Recovered from Customers	5.2			5.0			0.2			4.0	%
Total Gas Revenues	$	17.7		$	17.9		$	(0.2	)	(1.1	)%
WEATHER—HEATING DEGREE DAYS
Actual	101			54			47			87.0	%
10-Year Average	72			74
% Change Actual vs. 10-Year Avg.	40.3		%	(27.0		)%

Note: Some items above are calculated on un-rounded data and may not precisely correspond to data shown in table.

UNS GAS —OPERATING STATISTICS



	Nine Months Ended September 30,
	2013			2012			Incr (Decr)			% Change
AVG. GAS CUSTOMERS
Residential	136,158			134,761			1,397			1.0	%
Commercial	11,372			11,284			88			0.8	%
All Other	1,130			1,142			(12		)	(1.1	)%
Total	148,660			147,187			1,473			1.0	%
RETAIL SALES—THOUSANDS OF THERMS
Residential	49,146			44,434			4,712			10.6	%
Commercial	21,030			19,740			1,290			6.5	%
All Other	5,811			5,170			641			12.4	%
Total	75,987			69,344			6,643			9.6	%
RETAIL USAGE—THERMS/CUSTOMER
Residential	361			330			31			9.4	%
Commercial	1,849			1,749			100			5.7	%
All Other	5,142			4,527			615			13.6	%
Total	511			471			40			8.5	%
RETAIL REVENUES—MILLIONS
Retail Margin Revenues:
Residential	$	28.9		$	26.6		$	2.3		8.6	%
Commercial	8.0			7.4			0.6			8.1	%
All Other	1.6			1.4			0.2			14.3	%
Total Retail Margin Revenues (Non-GAAP)⁽¹⁾	$	38.5		$	35.4		$	3.1		8.8	%
DSM Revenues	0.6			0.7			(0.1		)	(14.3	)%
Transport/NSP Revenues	13.1			12.2			0.9			7.4	%
Fuel Revenues:
Recovered from Customers	39.0			41.7			(2.7		)	(6.5	)%
Total Gas Revenues	$	91.2		$	90.0		$	1.2		1.3	%
WEATHER—HEATING DEGREE DAYS
Actual	2,769			2,504			265			10.6	%
10-Year Average	2,715			2,728
% Change Actual vs. 10-Year Avg.	2.0		%	(8.2		)%

⁽¹⁾Retail Margin Revenues, a non-GAAP financial measure, should not be considered as an alternative to Total Gas Revenues, which is determined in accordance with GAAP. Retail Margin Revenues excludes revenues collected from retail customers that are directly offset by expenses recorded in other line items. We believe the change in Retail Margin Revenues between periods provides useful information to investors because it demonstrates the underlying revenue trend and performance of our core utility business. Retail Margin Revenues represents the portion of retail operating revenues available to cover the operating expenses of our core utility business.

Note: Some items above are calculated on un-rounded data and may not precisely correspond to data shown in table.

BASIC AND DILUTED SHARES OUTSTANDING



	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	Thousands of Dollars
Numerator:
Net Income	$	67,990	$	50,664	$	113,953	$	83,414
Income from Assumed Conversion of Convertible Senior Notes ⁽¹⁾	—		—		—		1,100
Adjusted Net Income Available for Diluted Common Stock Outstanding	$	67,990	$	50,664	$	113,953	$	84,514

	Thousands of Shares
Denominator:
Weighted Average Shares of Common Stock Outstanding:
Common Shares Issued	41,472		41,290		41,427		39,835
Fully Vested Deferred Stock Units	178		156		169		148
Total Weighted Average Common Stock Outstanding – Basic	41,650		41,446		41,596		39,983
Effect of Dilutive Securities:
Convertible Senior Notes ⁽¹⁾	—		—		—		1,417
Options and Stock Issuable Under Share-Based Compensation Plans	378		417		345		319
Total Weighted Average Common Stock Outstanding – Diluted	42,028		41,863		41,941		41,719

⁽¹⁾ In 2012, the Convertible Senior Notes were converted to Common Stock or redeemed for cash.

We excluded the following outstanding stock options, with an exercise price above market, and contingently issuable shares from our diluted EPS computation as their effect would be anti-dilutive:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2013	2012	2013	2012
	Thousands of Shares
Stock Options	—	—	—	67
Restricted Stock Units	—	—	8	—
Total Anti-Dilutive Shares Excluded from the Diluted EPS Computation	—	—	8	67

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