To: Editors, News Directors

Date: March 3, 2003

For: Immediate Release

Public Comment Sessions Set For 3 Citizens Matters
Commissioners Seek Comment on Proposed Acquisition by Tucson Electric Parent, Gas Rate Case and Electric Adjustor Case

PHOENIX - In preparation for an evidentiary hearing set for May 1, 2003, the Arizona Corporation Commission is scheduling public comment sessions around the state on three cases involving Citizens Communications, a company providing electric and natural gas service to several areas of Arizona. Public comment sessions will be held in Flagstaff, Prescott, Lake Havasu City, Kingman, Nogales and Show Low.

The three cases are:

• A proposed acquisition of Citizens' Electric and Gas Divisions by Unisource Energy Corporation, parent company of Tucson Electric Power;

• Citizens' Electric Division's request to recover costs stemming from an increase in the cost of electricity (Purchased Power Fuel Adjustor Case or PPFAC case); and,

The Arizona Corporation Commission staff is in the process of evaluating the merits of the three cases in preparation for a courtroom-style administrative hearing. In both of the cases that could affect rates, Commission staff members are auditing records and assessing whether certain costs should be recovered and, if so, to what extent and over what period of time. Other parties, such as the Residential Utility Consumer Office (RUCO), are doing their own audits and analysis in preparation for the hearing. Companies, organizations and individuals that have formally intervened will have an opportunity to question the company and argue their position at a May 1, 2003 hearing in Phoenix. An administrative law judge will preside over the hearing and assess the validity of each party's position.

Before the hearing begins, the Commissioners want to hear from members of the public who would be affected by the outcome of the acquisition, the electric adjustor or the gas rate case. The Commissioners, representatives from the utility and local government officials will attend the public comment sessions. The schedule is as follows:

Wednesday, March 5, 2003

FLAGSTAFF-NOON - Murdock Center - 203 East Brannen Avenue, Flagstaff

• Citizens' Gas Division serves here. The gas rate case and proposed acquisition will be of interest to customers in/around Flagstaff. Electric service is provided by APS so the PPFAC case will not affect these residents.

PRESCOTT - 6:00 P.M. (same day, March 5th) - City Council Chambers - 201 South Cortez, Prescott

• Citizens' Gas Division serves here. The gas rate case and proposed acquisition will be of interest to customers in/around Prescott. Electric service is provided by APS so the PPFAC case will not affect these residents.

Tuesday, March 25, 2003

LAKE HAVASU CITY-1:00 P.M. - Mohave County Library - 1770 McCulloch Boulevard, Lake Havasu City

• All three cases-Gas, Acquisition and PPFAC

Wednesday, March 26, 2003

KINGMAN-10:00 A.M. - Mohave Community College Library - 1971 Jagerson Avenue, Kingman

• All three cases-Gas, Acquisition and PPFAC

Thursday, April 3, 2003

NOGALES-3:00 P.M. and 6:00 P.M. - City Hall Complex - 777 N. Grand Avenue, Nogales

• All three cases-Gas, Acquisition and PPFAC

Tuesday, April 15, 2003

SHOW LOW-2:00 P.M. - Show Low Unified School Auditorium - 500 W. Old Linden Road, Show Low

• Citizens' Gas Division serves here. Gas rate case and proposed acquisition will be of interest to customers in/around Show Low.

About Public Comment Sessions

Public comment sessions are formal proceedings and all comments will be transcribed by a court reporter. The Commissioners may limit the duration of each individual's comments to allow everyone a fair opportunity to speak.

No date has been set for the Commissioners to make a final decision on the case. The hearing in front of the administrative law judge could last several days. The judge then waits for any final briefs to be filed, for the transcripts to come in and begins working on a recommendation for the Commissioners to consider. This can take six to eight weeks or more, depending on whether the parties are ordered to submit summary briefs. Consumers should, however, be aware and anticipate that these cases could result in an increase to their electric or gas bills.

Public Comment by Mail

If you cannot attend in person, the Commission encourages the timely submission of written comments. Submit comments to the Docket Control Center and they will be distributed to all registered parties or intervenors. Be sure to reference the appropriate docket number for the case(s) you are commenting on. This will ensure that your comments are properly catalogued and referenced. The docket numbers are:

E-01032C-00-0751 Citizens Electric Purchased Power Fuel Adjustor Clause Case

G-01032A-02-0598 Citizens Gas Division Rate Case

E-01032C-02-0914 Joint Application for Sale and Transfer of Assets from Citizens to Unisource

Arizona Corporation Commission - Docket Control Center - 1200 West Washington, Phoenix, AZ 85007

Electronic Public Comment

You may also comment through the Commission's "Can We Help You" page on the Utilities Division website. Be sure to include the proper docket number(s) listed above. For instructions on filing electronic public comment, click on http://www.cc.state.az.us/utility/cons/.