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UniSource Energy shares rise as subsidiary settles rate case

By Associated Press
April 24, 2008 | Comments (0)

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Shares of UniSource Energy Corp., a gas and electricity utility, on Thursday rose more than 5 percent as the company and Arizona regulators settled a rate dispute.

Shares rose $1.61 to close at $31.93.

UniSource's Tucson Electric Power Co. and the Arizona Corporation Commission reached a tentative agreement in TEP's rate case, according to a filing with the Securities and Exchange Commission.

Deutsche Bank-North America analyst John Kiani, in a client note filed late Wednesday, called the agreement "very constructive and fair to both the company and rate payers."

Although a definitive agreement has yet to be reached Kiani raised his price target on Unisource to $33 from $28.

Also Wednesday, Soleil Securities Group analyst Maurice E. May raised his price target to $34.50 from $25.

The proposed settlement between Arizona and Tucson Electric Power establishes a "cost-of-service" method for gauging power rates and allows for an overall base rate hike of 6 percent.

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