UNS Energy is the Tucson, Arizona-based parent company of Tucson Electric Power (TEP) and UniSource Energy Services (UES). TEP serves more than 414,000 customers in and around Tucson, while UES provides natural gas and electric service to about 243,000 customers in northern and southern Arizona.
UNS Energy is a subsidiary of Fortis, the largest investor-owned electric and gas distribution utility in Canada. Fortis' regulated utility subsidiaries serve more than 3 million customers across Canada and in the United States and the Caribbean. Fortis also owns non-regulated hydroelectric generation assets in Canada, Belize and upstate New York.
The acquisition of UNS Energy Corporation by Fortis Inc., Canada's largest investor-owned gas and electric utility company, was finalized on August 15, 2014.
As members of the Fortis family of companies, UNS Energy subsidiaries Tucson Electric Power (TEP) and UniSource Energy Services (UES) have gained new financial strength while preserving local control over utility operations that will continue to provide customers with safe, reliable and affordable service.
Under terms of the companies' settlement agreement, bill credits totaling $30 million will be distributed over five years to TEP customers and to UES gas and electric customers. Both companies will remain headquartered in Tucson under local control with current management and staffing levels and no planned changes to existing operations.
The merger was approved by shareholders on March 26, 2014 during a special meeting and approved unanimously by the Arizona Corporation Commission during an Aug. 12, open meeting. More information for investors is available in the below.
Q: Now that the transaction is closed, what does this mean for UNS Energy shareholders?
A: Fortis will pay $60.25 per share for UNS Energy common stock. See below for answers on how to receive payment for your shares.
Q: Can I continue buying shares of UNS Energy?
A: No. Trading in UNS Energy shares has been suspended and UNS shares will soon be delisted from the New York Stock Exchange. UNS Energy is now a subsidiary of Fortis.
Q: Will UNS Energy continue paying dividends?
A: A final, "stub period" dividend was declared on August 7, 2014. This dividend is payable to shareholders of record as of the close of business on August 15, 2014.
Q: Do I have to sell my shares?
A: All shares have been cancelled and converted into the right to receive the purchase price.
Q: What do I need to do to receive payment for my shares?
A: If you are a registered shareholder with book entry shares (meaning you don't hold physical certificates of stock), or hold shares in a non-registered form (i.e., a bank, trust company, broker, nominee, etc.), then you don't need to do anything. You will receive a check in the mail or your account will receive the funds automatically through direct deposit.
If you hold physical certificates, you will receive a Letter of Transmittal and Letter of Instruction in the mail. Please follow the steps indicated on the forms.
Q: When will I receive payment for my shares?
A: If you are a registered shareholder with book entry or hold shares in a non-registered form, then checks will be mailed approximately five business days from the close of the transaction.If you hold physical certificates, payment will be made approximately five business days after Computershare receives a duly completed Letter of Transmittal and the certificates.
Q: What if I am a certificated shareholder and have not received any communication from Computershare?
A: The information about the transaction is scheduled to be mailed three business days after the close of the transaction. If a significant period of time has passed and you still have not received any information, it is likely that Computershare does not have your current personal information on file. Please contact them at 1-877-477-1579 to update your personal information.
Q: What are my tax implications because of this transaction?
A: Everyone's tax situation is unique. We recommend you speak with an accountant or financial advisor to understand how this transaction will affect you.
Q: Where can I find information about investing in Fortis?
A: Please visit https://www.fortisinc.com/Investor-Centre/Pages/Share-Plans.aspx for more information.
Q: What if I have additional questions about my UNS Energy shares?
A: If you hold your shares in a brokerage account, please contact your broker. If you are a registered shareholder, you may contact Computershare toll-free at 1-877-477-1579.
Mr. Hutchens is President and CEO of UNS Energy Corporation and subsidiaries Tucson Electric Power (TEP) and UniSource Energy Services (UES). He served as a nuclear submarine officer in the U.S. Navy and worked as an engineer before joining TEP in July 1995. He advanced to various management positions and became a Vice President in January 2007 before being named President in December 2011 and Chief Operating Officer in August 2013. He assumed his current role as the company’s top executive in May 2014.
Mr. Hutchens graduated from the University of Arizona with a bachelor's degree in aerospace engineering and an MBA with an emphasis in finance.
Mr. Larson is Senior Vice President and Chief Financial Officer. A 26-year veteran of TEP, Mr. Larson served in a variety of capacities in the treasury and finance areas before being named CFO in 2000. Mr. Larson also serves as Treasurer of UNS Energy Corporation.
Mr. Larson is a Chartered Financial Analyst and has a bachelor's degree in economics from the University of Minnesota.
Ms. Gray is Vice President of T&D Operations and Engineering. Susan came to Tucson Electric Power as a student engineer in 1994 before being hired in 1997 as an Energy Management System engineer. Promoted to supervisory roles along the way, she advanced to Superintendent of T&D Design/Build in 2004. She was named Director, Design & Construction Services in 2011 and was promoted to Senior Director, T&D in 2013.
Mr. Grant is Vice President of Finance and Rates. Mr. Grant joined TEP in 1995 and has held management positions in financial planning, capital resources and treasury services. Mr. Grant also serves as Treasurer of TEP and UES. Prior to joining TEP, Mr. Grant worked on the staff of the Public Utility Commission of Texas.
Mr. Grant is a Chartered Financial Analyst who earned a bachelor's degree in civil engineering from Purdue University and an MBA from the University of Texas at Austin.
Mr. Hixon is Vice President and General Counsel of UNS Energy, TEP and UES. Mr. Hixon joined TEP after three years in private practice and advanced to Associate General Counsel before being named to his current role in May 2011.
Mr. Hixon has a bachelor's degree in architecture and a Juris Doctorate from the University of Arizona.
Ms. Kissinger is Vice President and Chief Compliance Officer. Ms. Kissinger joined TEP in January 1991 after serving as a senior manager at the accounting firm of Deloitte & Touche.
Ms. Kissinger is a Certified Public Accountant. She has a bachelor's degree in Spanish from the University of Virginia and an MBA from the University of Arizona.
Mr. Mansfield is Vice President of Energy Resources. He joined the company in 2008 most recently serving as Senior Director of Generation. Prior to joining TEP, Mr. Mansfield held various leadership positions at PacifiCorp Energy.
Mr. Mansfield has a bachelor’s degree in mechanical engineering from Brigham Young University and an MBA from the University of Utah.
Mr. Marino is Vice President and Controller. Before joining TEP in January 2013, he was a Vice President and Chief Financial Officer of the wind and solar businesses of The AES Corporation, a global power company.
Mr. Marino is a Certified Public Accountant and has a bachelor's degree in accounting from the State University of New York and an MBA from Fairleigh Dickinson University.
Mr. McKenna is Vice President of Energy Delivery. He also serves as Vice President of UNS Gas and UNS Electric, subsidiaries of UES. Mr. McKenna has accumulated more than four decades of experience in the utility industry. Before joining TEP in 1998, he was a Vice President of Sargent & Lundy, an engineering services company.
Mr. McKenna has a bachelor's degree in engineering from the University of Illinois-Chicago.
Ms. Ries is Vice President of Customer and Human Resources. Before joining TEP in 2007, Ms. Ries was Vice President of Human Resources for Clopay Building Products Company, a division of Griffon Corporation. Ms. Ries also spent more than a dozen years in the airline industry, where she specialized in development and training.
Ms. Ries has both a bachelor's degree in fine arts and an MBA from Arizona State University.
Ms. Smith is Vice President of Public Policy. Jo joined TEP in 2003 as Director of Investor Relations after having previously served in that role at Portland General Electric. She advanced to Director of Regulatory Services in 2011 and was promoted to Senior Director of Regulatory Services and Corporate Communications in 2013.
Ms. Kennedy is Corporate Secretary. She has held a variety of positions during three decades at TEP, including assistant Corporate Secretary. Ms. Kennedy was elected to her current position in 2006.
Ms. Kennedy is a Certified Legal Assistant and has an associate's degree of applied science - paralegal from Pima Community College.
Like UNS Energy, Fortis was established as the publicly traded corporate parent of a local utility – Newfoundland Power – that has provided electric service since the late 1800s. As the company has expanded through a series of acquisitions, it has retained its commitment to disciplined, patient growth through continued focus on operational excellence.
Today, Fortis is the largest investor-owned gas and electric utility in Canada, providing gas and electric service to more than 3 million customers. Its regulated holdings include gas and electric utilities in five Canadian provinces, New York and two Caribbean countries.Visit the Fortis website