As of February 14, 2019,11, 2021, Tucson Electric Power Company had 32,139,434 shares of common stock, no par value, outstanding, all of which were held by UNS Energy Corporation, an indirect wholly ownedwholly-owned subsidiary of Fortis Inc.

Tucson Electric Power meets the conditions set forth in General Instruction I(1)(a) and (b) of Form 10-K and is, therefore, filing portions of this Form 10-K with the reduced disclosure format specified in General Instruction I(2) of Form 10-K.

This Annual Report on Form 10-K contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Tucson Electric Power Company (TEPTEP, or the Company)Company, is including the following cautionary statements to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by TEP in this Annual Report on Form 10-K. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, future economic conditions, future operational or financial performance and underlying assumptions, and other statements that are not statements of historical facts. Forward-looking statements may be identified by the use of words such as anticipates, believes, estimates, expects, intends, may, plans, predicts, potential, projects, would, and similar expressions. From time to time, we may publish or otherwise make available forward-looking statements of this nature. All such forward-looking statements, whether written or oral, and whether made by or on behalf of TEP, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, TEP disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date of this report, except as may otherwise be required by the federal securities laws.

TEP and its predecessor companies have served the greater Tucson metropolitan area for 126128 years. TEP was incorporated in the State of Arizona in 1963. TEP is a regulated electric utility company serving approximately 425,000433,000 retail customers. TEP’s service territory covers 1,155 square miles and includes a population of over one million people in Pima County, as well as parts of Cochise County. TEP's principal business operations include generating, transmitting, and distributing electricity to its retail customers. In addition to retail sales, TEP sells electricity, transmission, and ancillary services to other utilities, municipalities, and energy marketing companies on a wholesale basis. TEP is subject to comprehensive state and federal regulation. The regulated electric utility operation is TEP's only segment.

TEP is a wholly ownedwholly-owned subsidiary of UNS Energy, Corporation (UNS Energy), a utility services holding company. UNS Energy is an indirect wholly ownedwholly-owned subsidiary of Fortis Inc. (Fortis) which is a leader in the North American electric and gas utility business.

TEP delivers electricity to retail customers in southern Arizona. TEP owns or has contracts for coal, natural gas, wind, and solar generation resources to provide electricity. This electricity, together with electricity purchased onin the wholesale market, is delivered over transmission lines which are part of the Western Interconnection, a regional grid in the United States. The electricity is then transformed to lower voltages and delivered to customers through TEP's distribution system.

TEP operates under a certificate of public convenience and necessity as regulated by the Arizona Corporation Commission (ACC),ACC, under which TEP is obligated to provide electricity service to customers within its service territory. The ACC establishes rates that are designed to allow a regulated utility recovery of its cost of providing services and an opportunity to earn a reasonable return on its investment (Retail Rates).

TEP provides electric utility service to a diverse group of residential, commercial, industrial, and public sector customers. Major industries served include copper mining, cement manufacturing, defense, healthcare, education, military bases, and governmental entities. TEP’s retail sales are influenced by several factors including economic conditions, seasonal weather patterns, Demand Side Management (DSM)DSM initiatives and the increasing use of energy-efficient products, and customer-sited DG.

Local, regional, and national economic factors impact the growth in the number of customers in TEP’s service territory. In each of the past five years, TEP’s average number of retail customers increased by less thanapproximately 1%. TEP expects the number of retail customers to increase at a rate of approximately 1% in 20192021 based on the estimated population growth in its service territory.

TEP’s retail sales volume in 20182020 was 8,900 gigawatt-hours (GWh),9,111 GWh, which is a decreasean increase of 3%2% from 20142016 levels. During the past five years, mining load reductionsincreased sales volumes due to warmer weather and customer growth have been tempered by state requirements to promote energy efficiency and DG have resultedDG.

In 2020, due to changes in lower sales volumes.

TEP’s utility operations include the wholesale marketing of electricity to other utilities and power marketers. Wholesale sales transactions are made on both a firm and interruptible basis. A firm contract requires TEP to supply power on demand (except

under limited emergency circumstances), while an interruptible contract allows TEP to stop supplying power under defined conditions.

Generally, TEP commits to future sales based on expected generation capability, forward prices, and generation costs using a diversified portfolio approach to provide a balance between long-term, mid-term, and spot power sales. TEP’s wholesale sales consist primarily of two types:

Contracts for long-term wholesale sales cover periods of one year or greater. TEP typically uses its own generation to serve the requirements of its long-term wholesale customers.

Certain contracts for short-term wholesale sales cover periods of less than one year and obligate TEP to sell capacity or power at a fixed price. TEP also engages in short-term sales by selling power in the daily or hourly markets at fluctuating spot market prices and making other non-firm power sales. The majority of our revenues from short-term wholesale sales are passed through to TEP’s retail customers offsetting fuel and purchased power costs. TEP uses short-term wholesale sales as part of its hedging strategy to reduce customer exposure to fluctuating power prices. Short-term wholesale sales increased

In 2019, TEP signed an agreement with the California Independent System Operator indicating its intent to begin participating in 2018 duethe EIM by spring of 2022. Participation in the EIM is voluntary and available to all balancing authorities in the increasewestern United States. In order to participate in generation capacity relatedthe EIM, TEP must demonstrate resource adequacy through a combination of owned or contracted resources. TEP's participation in the EIM is expected to: (i) reduce the costs to Gila River Generating Station (Gila River) Unit 2.serve customers through more efficient dispatch of a larger and more diverse pool of resources; (ii) allow for more effective integration of renewables; and (iii) enhance reliability through improved system utilization and responsiveness.

TEP is the primary electric service provider to retail customers within its service territory and operates under a certificate of public convenience and necessity as regulated by the ACC.

In August 2018, the ACC opened a docket to evaluate several energy policies including retail competition for generation services. A workshop wasIn 2019, the ACC staff prepared a draft of retail electric competition rules and workshops have been held relatedon the subject. Such rules have not been officially proposed and no changes have been made. The adoption of new rules would be subject to retail competition in

The Federal Energy Regulatory Commission (FERC) regulates rates for wholesale power sales and transmission services. TEP engages in long-term wholesale sales to optimize its generation resources. As a result of its wholesale power activity, TEP competes with other utilities, power marketers, and independent power producers in the wholesale markets.

Springerville Units 3 and 4 are each approximately 400 MW coal-fired generation facilities that are operated, but not owned, by TEP. These facilities are located at the same site as Springerville Units 1 and 2. Tri-State, Generation and Transmission Association, Inc. (Tri-State), the lessee of Springerville Unit 3, compensates TEP for operating the facilities and pays an allocated portion of the fixed costs related to the Springerville Common Facilities and Springerville Coal Handling Facilities.

TEP purchases power from other utilities and power marketers. TEP may enter into contracts to purchase: (i) power under long-term contracts to serve retail load and long-term wholesale contracts; (ii) capacity or power during periods of planned outages or for peak summer load conditions; and (iii) power for resale to certain wholesale customers under load and resource management agreements. See Note 89 of Notes to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K related to purchased power commitments.

TEP typically uses its generation, supplemented by purchased power, to meet the summer peak demands of its retail customers. TEP hedges a portion of its total energy price exposure with forward priced contracts. Certain of these contracts are at a fixed price per megawatt-hour (MWh)MWh and others are indexed to natural gas prices. TEP also purchases power in the daily and hourly marketsmarkets: (i) to meet higher than anticipated demands, to coverdemands; (ii) during periods of generation outages,outages; or (iii) when doing so is more economical than generating its own power.

TEP is a member of a regional reserve-sharing organization and has reliability and power-sharing relationships with other utilities. These relationships allow TEP to call upon other utilities during emergencies, such as generation facility outages and system disturbances, and reducewhich reduces the amount of reserves TEP is required to carry.

In 2018,2020, TEP's generation and purchased resources were sufficient to meet total retail and long-term wholesale peak demand, while maintaining a reserve margin in compliance with reliability criteria set forth by the Western Electricity Coordinating Council, a regional council of North American Reliability Corporation (NERC).

Peak demand occurs during the summer months due to the cooling requirements of retail customers in TEP’s service territory. Retail peak demand varies from year-to-year due to weather, energy conservation, DG, economic conditions, and other factors. Retail peak demand in 2018years 2017 to 2020 was comparable to 2017 but significantly higher than peak demand in 2014 through 2016 primarily due to warmer than normal summer temperatures.

Forecasted retail peak demand for 20192021 is 2,3052,295 MW compared with actual peak demand of 2,4132,467 MW in 2018.2020. TEP’s 20192021 estimated retail peak demand is based on weather patterns observed over a 10-year period and other factors, including estimates of customer usage. TEP believes that existing generation capacity and PPAs are sufficient to meet the expected demand and reserve margin requirements in 2019.2021.

As of December 31, 2018, approximately 40% of TEP's generation capacity, including ownedstrategy on future resources is to continue its transition from carbon-intensive sources to a more sustainable energy portfolio, while maintaining reliability and leased resources, was from coal-fired generation.ensuring rate affordability for its customers.

In June 2020, TEP is executing strategies and evaluating additional stepsfiled its 2020 IRP, which outlines its plan over the next 15 years to meet its electric demand while transitioning to a more sustainable energy portfolio. The plan includes a goal to reduce itscarbon emissions by 80% compared to 2005 by 2035. The IRP proposes to achieve this goal by reducing our dependency on coal-fired generation over the next 12 years while still meeting its peak load requirementsdeveloping new renewable energy projects like Oso Grande, Raptor Ridge, and maintaining affordable Retail Rates.energy storage projects to meet electric demand. Over the past five years, TEP's five-year capital expenditure forecast includes investments relatedgeneration capacity from coal-fired generation has decreased by 24%.

In December 2020, ACC staff issued a NOPR based on energy rules it had proposed in November 2020. If adopted, the new rules would require affected utilities to, natural gas Reciprocating Internal Combustion Engine (RICE) unitsamong other things, reduce carbon emissions by 50% below a baseline level by 2032 and 100% by 2050. The new rules are not expected to be placed in service at Sundt and the planned purchasehave a material impact on TEP's 2020 IRP.

The coal supplies for Springerville Units 1 and 2 are transported approximately 200 miles by railroad from northwestern New Mexico. TEP expects to have access to coal reservessupplies to be sufficient to supplyfulfill the estimated requirements for each of the Springerville Units 1 and 2 for theirunits' estimated remaining lives.

TEP also participates in jointly-owned coal-fired generation facilities at Four Corners Generating Station (Four Corners), Navajo, and San Juan Generating Station (San Juan).Juan. Four Corners, which is operated by Arizona Public Service Company (APS),APS, and San Juan, which is operated by Public Service Company of New Mexico (PNM),PNM, are mine-mouth generation facilities located adjacent to the coal reserves. Navajo, which is operated by SRP, obtains its coal supply from the nearby Kayenta coal mine and receives deliveries on a dedicated electric railroad delivery system. TEP expects coal reserves available to these threetwo jointly-owned generation facilities to be sufficient for the remaining lives of the stations.

TransmissionTEP's distribution and transmission facilities owned by TEP and third parties are located in Arizona and New MexicoMexico. These facilities are located on property owned by: (i) TEP; (ii) public entities; (iii) private entities; and (iv) Indian Nations. TEP's transmission and distribution systems included approximately 2,197 miles of transmission lines and 7,797 miles of distribution lines as of December 31, 2020.

TEP's transmission facilities transmit the output from TEP’s electric generation facilities to the Tucson area. TEP'sarea and power markets. The transmission system is part of the Western Interconnection, which includes the interconnected transmission systems of 14 western states, two Canadian provinces, and parts of Mexico. TEP's transmission system, together with contractual rights on other transmission systems, enables TEP to integrate and access generation resources to meet its customerenergy load requirements. TEP's transmission and distribution systems included approximately 2,189 miles of transmission lines and 7,680 miles of distribution lines as of December 31, 2018.

As of December 31, 2018,2020, TEP had 1,5281,575 employees, of which approximately 634 are648 were represented by the International Brotherhood of Electrical Workers Local No. 1116 (IBEW). The current collective bargaining agreements between the IBEW and TEP expire in July 2022 with wages in effect through December 2022.

TEP makes available its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practical after it electronically files or furnishes them to the Securities and Exchange Commission (SEC).SEC. The SEC maintains an internet sitea website at http:https://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically. TEP's reports are also available free of charge through TEP’s website address at https://www.tep.com/about/investors/investor-information/.

TEP is providing the address of TEP’sits website solely for the information of investors and does not intend for the address to be an active link. The information contained on TEP’s website is not a part of, or incorporated by reference into, any report or other filing by TEP filed with the SEC by TEP.SEC.

The business and financial results of TEP are subject to a number of risks and uncertainties, including those set forth below. These risks and uncertainties fall primarily into five major categories: revenues, regulatory, environmental, financial, and operational. Additional risks and uncertainties that are not currently known to TEP or that are not currently believed by TEP to be material may also negatively impact TEP’s business and financial results.

National and local economic conditions have a significant impact on customer growth and overall retail sales in TEP’s service area. TEP anticipates an annual customer growth rate of 1% for the next five years.

Research and development activities are ongoing for new technologies that produce power and reduce power consumption. These technologies include renewable energy, customer-sited DG, appliances, equipment, batteryenergy storage, and control systems. Continued development and use of these technologies and compliance with the ACC's EE Standards and RES continue to have a negative impact on TEP’s use per customer and overall retail sales. TEP's use per customer declined by an average of 1% per year from 20142016 through 2018.2020.

TEP typically earns the majority of its operating revenue and net income in the third quarter because retail customers increase their air conditioning usage during the summer. Conversely, first quarter net income is typically limited by relatively mild winter weather in TEP's retail service territory. Cool summers or warm winters may reduce customer usage, negatively affecting operating revenues, cash flows, and net income by reducing sales.

TEP’s ten largest customers represented 11% of total revenues in 2018.2020. TEP sells electricity to mines, military installations, and other large commercial and industrial customers. Retail sales volumes and revenues from these customers could decline as a result of, among other things: global, national, and local economic conditions; curtailments of customer operations due to unfavorable market conditions; military base reorganization or closure decisions by the federal government; the effects of energy efficiency and distributed generation;efficiency; or the decision by customers to self-generate all or a portion of their energy needs. A reduction in retail kWh sales by any one of TEP’s ten largest customers would negatively affect the Company's results of operations, net income, and cash flows.

TEP's financial condition is influenced by how regulatory authorities, including the ACC and FERC, establish the rates TEP can charge customers and authorize rates of return, common equity levels, and the amount of costs that may be recovered from customers. The Company's ability to timely obtain rate adjustments that provide TEP with the opportunity to earn authorized rates of return depends upon timely regulatory action under applicable statutes and regulations, and cannot be guaranteed.

Owners and operators of bulk power systems, including TEP, are subject to mandatory transmissionreliability standards developed and enforced by NERC and subject to the oversight of the FERC. Compliance with modified or new transmissionreliability standards may subject TEP to higher operating costs and increased capital costs. Failure to comply with the mandatory transmissionreliability standards could subject TEP to sanctions, including substantial monetary penalties.

Numerous federal, state, and local environmental laws and regulations affect present and future operations. Those laws and regulations include rules regarding air emissions of conventional pollutants and greenhouse gases, water use, wastewater discharges, solid waste, hazardous waste, and management of coal combustion residuals.CCR.

These laws and regulations can contribute to higher capital, operating, and other costs, particularly with regard to enforcement efforts focused on existing generation facilities and compliance standards related to new and existing generation facilities. These laws and regulations generally require TEP to obtain and comply with a wide variety of environmental licenses, permits, authorizations, and other approvals. Both public officials and private individuals may seek to enforce applicable environmental laws and regulations. Failure to comply with applicable laws and regulations may result in litigation, the imposition of fines, penalties, and a requirement by regulatory authorities for costly equipment upgrades.

Existing environmental laws and regulations may be revised and new environmental laws and regulations may be adopted or become applicable to the Company's facilities. Increased compliance costs or additional operating restrictions from revised or additional regulation could have a negative effect on TEP's results of operations, particularly if those costs are not timely and fully recoverable from TEP customers. TEP’s obligation to comply with the EPA’s Regional Haze Regulations (Regional Haze) requirementsthese laws and regulations as a participant or owner in theregulated facilities like Springerville, San Juan, and Four Corners, and Navajo, coupled with the financial impact of future climate change legislation, other environmental regulations, and other business considerations, could jeopardize the economic viability of these generation facilities. Additionally, these regulations may jeopardize continued generation facility operations or the ability of individual participants to meet their obligations and willingness to continue their participation in these facilities potentially resulting in an increased operational cost for the remaining participants.

TEP also is contractually obligated to pay a portion of the environmental reclamation costs incurred at generation facilities in which it has a minority interest and is obligated to pay similar costs at the mines that supply these generation facilities. While TEP has recorded the portion of its costs that can be determined at this time, the total costs for final reclamation at these sites are unknown and could be substantial.

Some of TEP's remaining coal-fired generation facilities willmay be closed before the end of their useful lives in response to economic conditions and/or recent orchanges in regulation, including the ACC's draft energy rules and future changes in environmental regulation, including potential regulation relating to greenhouse gas emissions.regulations. If any of the coal-fired generation facilities from which TEP obtains power are closed prior to the end of their useful life,lives, TEP may need to seek regulatory recovery of the remaining net book value (NBV) and could incur added expenses relating to accelerated depreciation and amortization, decommissioning, reclamation, and cancellation of long-term coal contracts of such generation facilities. As of December 31, 2018,2020, the net book value of TEP's regulatory assets balance related to its planned earlyin service coal-fired generation retirement costsfacilities was $72$1,169 million.

We rely on access to bank markets and capital markets as a significant source of liquidity and for capital requirements not satisfied by the cash flows from TEP's operations. Market disruptions such as those experienced in 2008, 2009, and 20092020 in the United States and abroad may increase the Company's cost of borrowing or negatively affect TEP's ability to access sources of liquidity needed to finance the Company's operations and satisfy its obligations as they become due. These disruptions may include turmoil in the financial services industry, including substantial uncertainty surrounding particular lending institutions and counterparties we do business with, unprecedented volatility in the markets, and general economic downturns in TEP's utility service territories. If TEP is unable to access credit at reasonable rates, or if the Company's borrowing costs dramatically increase, TEP's ability to finance its operations, meet debt obligations, and execute its financial strategy could be negatively affected.

Increases in short-term interest rates would increase the cost of borrowings under TEP's credit facility.facilities. In addition, changing market conditions could negatively affect the market value of assets held in its pension and other postretirement defined benefit plans and may increase the amount and accelerate the timing of required future funding contributions.

TEP has financed a substantial portion of utility plant assets with the proceeds of pollution control revenue bonds and industrial development revenue bonds issued by governmental authorities. Interest on these bonds is, subject to certain exceptions, excluded from gross income for federal tax purposes. This tax-exempt status is based, in part, on continued use of the assets for pollution control purposes or the local furnishing of power within TEP’s two-county retail service area.

As of December 31, 2018,2020, there were outstanding approximately $272$177 million aggregate principal amount of tax-exempt bonds that financed pollution control expenditures at TEP’s generation facilities. Should certainSpringerville. The bonds may be redeemed at par commencing in the first quarter of TEP’s generation facilities2022. The bonds would be subject to early redemption should Springerville be retired and dismantled prior to maturity or the stated maturity datesfirst redemption date.

In addition, as of December 31, 2018,2020, there were outstanding approximately $207$107 million aggregate principal amount of tax-exempt bonds that financed local furnishing facilities. Depending on changes that may occur to the regional generation mix in the desert southwest, to the regional bulk transmission network, or to the demand for retail power in TEP’s local service area, it is possible that TEP would no longer qualify as a local furnisher of power within the meaning of the Internal Revenue Code. If TEP could no longer qualify as a local furnisher of power, all of TEP’s tax-exempt local furnishing bonds could be subject to mandatory early redemption by TEP or defeasance to the earliest possible redemption date, and TEP could be required to pay additional amounts if interest on such bonds were no longer tax-exempt. The bonds have early redemptionmay be redeemed at par commencing on dates ranging from 2020the second quarter of 2022 to 2023.

The operation of electric generation facilities and transmission and distribution systems involves certain risks and uncertainties, including equipment breakdown or failures, fires, weather, and other hazards, interruption of fuel supply, and lower than expected levels of efficiency or operational performance. Unplanned outages, including extensions of planned outages due to equipment failures or other complications, occur from time to time. They are an inherent risk of the Company's business and can cause damage to its reputation. If TEP’s generation facilities or transmission and distribution systems operate below expectations, TEP’s operating results could be negatively affected or TEP's capital spending could be increased.

Certain of the generation facilities from which TEP receives power are jointly-owned with, or operated by, third parties. TEP does not have the sole discretion to affect the management or operations at such facilities. As a result of this reliance on other operators, TEP may not be able to ensure the proper management of the operations and maintenance of such generation facilities. Further, TEP may have limited ability to determine how best to manage the changing economic conditions or environmental requirements that may affect such facilities. A divergence in the interests of TEP and the co-owners or operators, as applicable, of such facilities could negatively impact the business and operations of TEP.

Climate change may impact regional and global weather conditions and result in extreme weather events, including high temperatures, severe thunderstorms, drought, and wildfires. Changes in weather conditions or extreme weather events in TEP’s service territory or affecting TEP's remote generation facilities or transmission system may lead to service outages and business interruptions, which could result in an increase in capital expenditures and operating expenses. Any increases in severity and frequency of weather-related system outages could affect TEP's operations and system reliability. Although physical utility assets have been constructed and are operated and maintained to withstand severe weather, there can be no assurance that they will successfully do so in all circumstances. In addition, changes in weather conditions or extreme weather events outside of TEP's service territory could result in higher wholesale energy prices, insurance premiums, and other costs, which could negatively impact TEP's business and operations. Any of these situations could have a negative impact on TEP's results of operations, net income, and cash flows.

As operatorsTEP’s generation, transmission, and distribution facilities are critical to the provision of critical energy infrastructure,electric service to our customers and provide the framework for our service infrastructure. TEP is facing a heightened risk of physical attacks on the Company's electric systems. The Company's electric generation, transmission, and distribution assets and systems are geographically dispersed and are often in rural or unpopulated areas which makes it especially difficult to adequately detect, defend from, and respond to such attacks. The Company relies on the continued operation of its network infrastructure, which is part of an interconnected regional grid. Any significant interruption of these assets could prevent the Company from fulfilling its critical business functions including delivering energy to customers. Security threats continue to evolve and adapt. TEP and our third-party vendors have been subject to, and will likely continue to be subject to, attempts to disrupt operations. Despite implementation of security measures, there can be no assurance that the Company will be able to prevent the disruption of our operations.

If, despite TEP's security measures, a significant physical attack occurred, the Company could have:could: (i) have operations disrupted and/or property damaged; (ii) experience loss of revenues, response costs, and other financial loss; and (iii) be subject to increased regulation, litigation, and damage to the Company's reputation. Any of these outcomes could have a negative impact on TEP's business and results of operations.

TEP is facingCybercrime, which includes the use of malware, computer viruses, and other means for disruption or unauthorized access has increased in frequency, scope, and potential impact in recent years. The Company relies on the continued operation of sophisticated digital information technology systems and network infrastructure, which are part of an interconnected regional grid. TEP's operations technology systems face a heightened risk of cyber-attacks. Thecyber-attack due to the critical nature of the infrastructure, the Company's informationconnectivity to the Internet, and operations technology systems may be vulnerableinherent vulnerability to unauthorized accessdisability or failures due to hacking, viruses, acts of war or terrorism, and other causes. types of data security breaches.

TEP's operationsinformation technology systems and network infrastructure have direct control over certain aspects of the electric system,been subject, and will likely continue to be subject, to cyber-attacks from foreign or domestic sources attempting to gain unauthorized access to information and/or information systems or to disrupt utility operations through computer viruses and phishing attempts either directly or indirectly through its material vendors or related third parties. Furthermore, the Company's utility business requires access to sensitive customer data, including personal and credit information, in the ordinary course of business.

If, despite TEP's security measures, a significant cyber or data breach occurred, the Company could have:could: (i) have operations disrupted, property damaged, and customer information stolen;stolen, and general business system and process interruption or compromise, including preventing TEP from servicing customers, collecting revenues or the recording, processing and/or reporting financial information correctly; (ii) experience loss of revenues, response costs, and other

None.

TEP has land easements for transmission facilities related to San Juan, Four Corners, and Navajo located on tribal lands of the Zuni, Navajo, and Tohono O’odham Nations. Four Corners and Navajo are located on properties held under land easements from the United States and under leases from the Navajo Nation. TEP, individually and in conjunction with PNM, acquired land rights, land easements, and leases for San Juan's generation facilities, transmission lines, and water diversion facility located on land owned by the Navajo Nation. TEP, in conjunction with PNM and Samchully Power & Utilities 1 LLC, holds an undivided ownership interest in the property on which Luna Generating Station (Luna) is located.

TEP’s rights under various land easements and leases may be subject to defects such as:

These possible defects have not interfered, and are not expected to materially interfere, with TEP’s interest in and operation of its facilities.

TEP is party to a variety of legal actions arising out of the normal course of business. Plaintiffs occasionally seek punitive or exemplary damages. The Company believes such normal and routine litigation will not have a material impact on its operations or financial results. TEP is also involved in other kinds of legal actions, some of which assert or may assert claims or seek to impose fines, penalties, and other costs in substantial amounts on TEP.

See Note 89 of Notes to Consolidated Financial Statements in Part II, Item 8 of this Form 10-K for additional information.

Not applicable.

TEP’s common stock is wholly-owned by UNS Energy and is not listed for trading on any stock exchange.