UniSource modified its 2007 full-year earnings guidance to be between $1.50 and $1.75 per diluted share from its previous range of between $1.55 and $1.85 per diluted share.
Higher fuel prices led to increased generation costs for Tucson Electric Power (TEP), UniSource’s subsidiary. TEP’s purchased power costs also were driven higher by elevated market prices and greater energy use during Southern Arizona’s hot summer months.
James Pignatelli, chairman, president and CEO of UniSource Energy, said: Fuel and purchased power costs were peaking at the very time our customers were setting new records for energy consumption. We were forced to make significant use of our gas-fired units and purchased power to meet customer demands, and those resources came at a steep cost this summer.
