COMMISSION NEWS

ARIZONA CORPORATION COMMISSION
1200 W. WASHINGTON STREET
PHOENIX, AZ 85007

TO: EDITORS, NEWS DIRECTORS

DATE: September 29, 1997

FOR: ADVISORY

CONTACT: Jon Poston, (602) 542-0843
Kevin Mosley, (602) 542-7269


COMMISSION APPROVES TEP CONTRACT WITH ASARCO

The Arizona Corporation Commission has approved an amended contract between Tucson Electric Power and Asarco, Inc. for service to Asarco's Mission Unit 2 mining operations near Green Valley. The contract provides a discounted rate to Asarco as an incentive for the mining company to postpone establishing a cogeneration facility to serve the copper mine. The amendment increases the demand from 36 megaWatts to 46 megaWatts, provides for interruptible power, and allows a buy-through option for Asarco.

Commissioner Jim Irvin said, "This contract is good for TEP customers, because it keeps a major user on line, making a continuing contribution to the fixed costs shared by all customers, large and small."

The contract was filed under a confidentiality agreement with the Commission staff.