UNS Electric, Inc. Rates for Transmission Service For June 1, 2017 Through May 31, 2018 For Period Ending December 31, 2016

Transcription

1 UNS Electric, Inc. Rates for Transmission Service For June 1, 2017 Through May 31, 2018 For Period Ending December 31, 2016 Mohave Total Line Division Division Company Revenue Requirements $5,525,195 1b $9,978,470 1a&c $15,503, Average of 12CP (MW) a b Rates ($/kw) : 4 Annual Monthly Weekly Daily Hourly

2 UNS Electric, Inc. Rates for Transmission Service For Period Ending December 31, 2016 Line Mohave 1 Rate Base: 2 Plant In Service - 3 Direct $83,270,236 2a $45,710,922 2h 4 Allocated 1,044,267 2b 1,001,451 2i 5 Capital Leases - 6 Allocated - 2c - 7 Comp. Const. Not Classified - 8 Allocated 46,809 2d 84,361,312 61,162 2j 46,773,535 9 Less: Accumulated Depreciation - 10 Direct (25,893,991) 2e (14,214,421) 2k 11 Allocated (405,107) 2f (26,299,098) (490,669) 2l (14,705,091) 12 Less: Accumulated Amortization - 13 Allocated (87,027) 2.1a (87,027) - 2.1e - 14 Net Plant in Service 57,975,187 32,068, Less: A.D.I.T Direct Plant 5,595, b 3,071, f 17 Allocated Plant 73, c (5,668,979) 71, g (3,143,125) 18 Material & Supplies - Transmission 307, d 307, h 19 Cash Working Capital (1/8 O&M Exp.) 75, a 34, g 20 Total Rate Base 52,689,087 29,267, Return (ACC Decision No /97): 22 L-T Debt (Rate Base X.31% wtd cost) 163,336 90, S-T Debt (Rate Base X 3.11%) 1,638,631 c 910,224 e 24 Common (Rate Base X 5.46%) 2,876,824 d 4,678,791 1,598,013 f 2,598, Operating Expenses: 26 Transmission O&M 390, b 85, h 27 A&G Exp. Allocated to Transmission 216, c 190, i 28 Depreciation & Amortization Expense - 29 Directly Assigned - 2,306, a 1,265, d 30 Allocated 67, b 2,374,095 82, e 1,348, Property Taxes - Directly Assigned 617, c 341, f 32 - Allocated 8, d 625,671 7, j 349, Payroll Taxes - Directly Assigned 6, e 4, k 34 - Allocated 1, f 7, l 4, ,613,815 1,978, Calendar Year 2016 Transmission Revenues FERC Pg. 330 (19,460) FERC Pg Prior Year Formula Rate Correction - 38 Interest Factor Income Taxes on Equity Returns: 40 Common Equity Return 2,876,824 1,598, Tax to Revenue Factor - 42 [1/( )] X = ,705, , Total Revenue Requirement 9,978,470 a 5,525,195 b 1

3 UNS Electric, Inc. Rates for Transmission Service For Period Ending December 31, 2016 Mohave 1. Plant in Service - Directly Assigned Transmission Plant 3b&a 83,270,236 3f&e 45,710,922 83,270,236 a 45,710,922 h 2. Plant in Service - Allocated Plant Intangible Plant (Accts ) 3c 11,713,314 3g - General Plant (Accts ) 3d 32,314,070 3h 10,531,422 Total Intangible and General Plant 44,027,384 10,531,422 Transmission Labor Ratio: Transmission Payroll Expense 4.1a 73, d 40,587 Total Payroll Expense 4.1b 3,875, e 496,397 Less: A&G Payroll Expense 4.1c 758,254 3,117, f 69, ,824 Intangible and General Plant 44,027,384 10,531,422 Intangible and General Plant Allocated to Transmission A 1,044,267 b D 1,001,451 i 3. Capital Leases - Allocated Vehicles 3i - 3m - Capital Leases Allocated to Transmission B - c E - 4. Completed Const. Not Classified - Allocated General & Intangible Plant 3j&z 1,973,515 3n 643,185 Completed Const. Allocated to Transmission C 46,809 d F 61,162 j 5. Accumulated Depreciation - Directly Assigned Accum. Depr. - Cap. Recovery - Transmission 3k&3.1b 20,389,242 3o&3.1u 11,192,607 Accum. Depr. - R.W.I.P. - Transmission 3t - 3u - Accum. Depr. - Acq. Discount - Transmission 3l 5,504,749 3p 3,021,814 25,893,991 e 14,214,421 k 6. Accumulated Depreciation - Allocated Plant Accum. Depr. - Cap. Recovery - General Plant 3v,3.1a&h 14,792,883 3q,3.1k&v 4,821,122 Accum. Depr. - R.W.I.P. - General Plant 3w (194) 3r (63) Accum. Depr. - Acq. Discount - General Plant 3x 2,287,047 3s 338,901 17,079,736 5,159,960 Accumulated Depreciation Allocated to Transmission 405,107 f 490,669 l 2

4 UNS Electric, Inc. Rates for Transmission Service For Period Ending December 31, 2016 Mohave 7. Accumulated Amortization - Allocated Plant Accum. Amort. - Other Intangibles 3.1c&w 3,669, e&x - Accum. Amort. - Capital Leases 3.1d - 3.1f - 3,669,165 - Accumulated Amortization Allocated to Transmission 87,027 a - e 8. Accumulated Deferred Income Taxes - Direct Plant A.D.I.T. - Transmission Operations 5a (5,595,659.62) b 5b (3,071,718.98) f 9. Accumulated Deferred Income Taxes - Allocated Plant Intangible Plant in Service 3c 11,713,314 3g - General Plant in Service 3d 32,314,070 3h 10,531,422 Capital Leases - Vehicles 3i - 3m - Compl. Const. - General & Intangible 3j&z 1,973,515 3n 643,185 46,000,899 11,174,607 Total Electric Plant in Service 3A 541,685,853 3D 273,398,480 Total Capital Leases 3B - 3E - Total Compl. Const. 3C 13,426,578 3F 6,918, ,112, ,317,222 Ratio Total A.D.I.T. 5c (37,302,887) 5d (18,836,980) A.D.I.T. - Allocated Plant (3,091,205.04) (750,920) A.D.I.T. Allocated to Transmission (73,319) c (71,406) g 10. Materials and Supplies - Transmission Materials and Supplies (Accts. 151, 154 and 163) 6a 12,947,344 6b 3,236,836 M&S - Transmission 307,093 d 307,796 h 2.1

5 UNS Electric, Inc. Rates for Transmission Service For Period Ending December 31, A&G Expense Allocated to Transmission Mohave A&G Expense (Accts ) 4.1g 9,115, h 2,000,680 A&G Expense Allocated to Transmission A 216,213 B 190, Depreciation & Amortization - Directly Assigned Plant Depreciation Expense - Transmission Plant 3.1g 2,546, j 1,398,042 Amortization Acq. Discount - Transmission 3.1i (240,591) 3.1l (132,071) 2,306,181 a 1,265,971 d 13. Depreciation & Amortization - Plant Allocated to Transmission Depreciation Expense - General Plant m 1,537, q 501,147 Amortization Expense - Intangibles & General n 1,565, r 385,373 Amort. Acq. Discount - Other Intangibles o (168,432) 3.1s - Amort. Acq. Discount - General Plant p (71,085) 3.1t (23,167) 2,863, ,353 General Plant in Service 3d 32,314,070 3h 10,531,422 Other Intangibles 3c 11,713,314 3g - Capital Leases 3i - 3m - Comp. Const. - General Plant 3j&z 1,973,515 3n 643,185 46,000,899 11,174,607 Average Depreciation Rate Intangible and General Plant Allocated to Transmission 2A 1,044,267 2D 1,001,451 Capital Leases Allocated to Transmission 2B - 2E - Completed Const. Allocated to Transmission 2C 46,809 2F 61,162 Total Plant Allocated to Transmission 1,091,076 1,062,612 Depreciation & Amortization of Allocated Plant 67,914 b 82,098 e 14. Property Taxes - Transmission Plant Property + Other Tax Expense 4.1 Sum(i) 4,030, Sum(j) 2,095,928 Total Electric Plant in Service 541,685, ,398,480 Less: Other Intangible Plant in Service (11,713,314) - Capital Leases - - Completed Const. not Classified 13,426,578 6,918,742 Taxable Plant 543,399, ,317,222 Average Property Tax Rate D E Transmission Plant 83,270,236 45,710,922 Property Tax Expense - Transmission 617,579 c 341,780 f 2.2

6 UNS Electric, Inc. Rates for Transmission Service For Period Ending December 31, 2016 Mohave 15. Property Tax Expense - General Plant Allocated to Transmission Intangible and General Plant Allocated to Transmission 2A 1,044,267 2D 1,001,451 Capital Leases Allocated to Transmission 2B - 2E - Completed Const. Allocated to Transmission 2C 46,809 2F 61,162 Total Plant Allocated to Transmission 1,091,076 1,062,612 Average Property Tax Rate 2.2D E Property Taxes on Plant Allocated to Transmission 8,092 d 7,945 j 16. Payroll Taxes - Transmission Payroll Tax Expense 4.1k 327, l 52,514 Total Salaries and Wages Charged to Expense 4.1b 3,875, e 496,397 Average Tax Rate Transmission Payroll Expense 4.1a 73, d 40,587 Payroll Taxes - Transmission 6,239 e 4,294 k 17. Payroll Taxes - A&G Payroll Allocated to Transmission A&G Salaries and Wages 4.1c 758, f 69,573 Average Payroll Tax Rate Payroll Taxes on A&G Salaries and Wages 63,983 7,360 A&G Payroll Taxes Allocated to Transmission 1,518 f 700 l 18. Allowance for Working Capital Transmission O&M Expense 4.1m 390,079 b 4.1n 85,924 h A&G Expense Allocated to Transmission 2.2A 216,213 c 2.2B 190,248 i Total O&M Expense - Transmission 606, ,172 Working Capital Factor (1/8) Total Working Capital 75, a 34,521 g 19. Weighted Cost of Capital From Arizona Corporation Commission Decision No Issued 1/7/97 Cannot change per OATT until next FERC filing. % of Annual Weighted Reference Total Cost % Cost % Short-term Debt Attachment A, Pg % 7.23% 3.11% Long-term Debt Attachment A, Pg % 5.08% 0.31% Common Stock Equity Attachment A, Pg % 10.70% 5.46% Attachment A, Pg % 2.3

7 UNS Electric, Inc. Rates for Transmission Service For Period Ending December 31, Combined Federal - State Income Tax Rate Mohave Federal Rate 34.00% * State Rate % * Income Before Taxes % Less: State Income Tax (4.874) % Taxable for Federal % Less: Federal Income Tax (.34 X Taxable for Fed) (32.343) % Income After Taxes % Total Tax Rate % a For Rev Req Calculation (a/100) b (1-b) c (b/c) d * Estimated federal & state tax rates to be in effect as of June 1, State tax rate is apportioned due to operations in more than one state. 2.4

8 UNS Electric 2016 Line Mohave Total 1 Acct. No. 101, Plant in Service at 12/31/16: 2 Intangible Plant (Accts, ) - 11,713,314 c - g 11,713,314 3 Production Plant (Accts ) 114,415,716 80,235, ,650,758 4 Transmission Plant (Accts ) 79,059,448 b 43,399,425 f 122,458,873 5 Distribution Plant (Accts ) 304,183, ,232, ,415,896 6 General Plant (Accts ) 32,314,070 d 10,531,422 h 42,845,492 7 Total Plant in Service A 541,685,853 D 273,398, ,084,333 8 Acct. No. 101,1 Capital Leases at 12/31/16: 9 Vehicles B - i E - m - 10 Acct. No. 106 Completed Const. Not Classified at 12/31/16: 11 Intangible Plant (Accts, ) - - z Production Plant (Accts ) 2,665,271 1,869,045 4,534, Transmission Plant (Accts ) 4,210,787 a 2,311,498 e 6,522, Distribution Plant (Accts ) 4,577,005 2,095,014 6,672, General Plant (Accts ) 1,973,515 j 643,185 n 2,616, C 13,426,578 F 6,918,742 20,345, Acct. No. 108, Accumulated Depreciation: 18 Capital Recovery: 19 Intangible Production (25,046,363) y (17,563,985) (42,610,348) 21 Transmission (11,320,754) k (6,214,490) o (17,535,244) 22 Distribution (115,462,810) (52,850,324) (168,313,134) 23 General (7,744,111) v (2,523,870) q (10,267,981) 24 (159,574,037) (79,152,670) (238,726,707) 25 R.W.I.P.: 26 Intangible Production Transmission - t - u - 29 Distribution 10,177 4,659 14, General 194 w 63 r ,371 4,722 15, Acquisition Discount, net of Accum. Amortization: 33 Intangible - (combined with General) 34 Production (10,497,956) (7,361,785) (17,859,741) 35 Transmission (5,504,749) l (3,021,814) p (8,526,563) 36 Distribution (24,996,517) (11,441,554) (36,438,071) 37 General (2,287,047) x (338,901) s (2,625,948) 38 (43,286,269) (22,164,054) (65,450,323) 39 Total Accumulated Depreciation (202,849,935) (101,312,002) (304,161,937) 3

9 Line Mohave Total 40 Acct. 111 Accumulated Amortization: 41 Intangible - (2,770,503) c - e (2,770,503) 42 Production Transmission Distribution General (2,770,503) - (2,770,503) 47 Acct Accum. Amortization - Cap. Leases: 48 Vehicles - d - f - 49 Acct. 1082, Citizen Historical Reserve Accum. Depr: 50 Intangible - a - k - 51 Production (1,889,089) (1,324,741) (3,213,830) 52 Transmission (9,068,488) b (4,978,117) u (14,046,605) 53 Distribution (63,561,524) (29,093,759) (92,655,283) 54 General (7,048,771) h (2,297,253) v (9,346,024) 55 (81,567,873) (37,693,869) (119,261,742) 56 Acct. 1112,Citizen Historical Amortization: 57 Intangible (898,662) w - x (898,662) 58 Production Transmission Distribution General (898,662) - (898,662) 63 Asset Retirement Obligation 64 FERC 108 (140,776) - (140,776) 65 Acct ,427-53, (87,349) - (87,349) 49 Acct. No. 403, Depreciation Expense: 50 Intangible - 753, , Production 1,558,016 1,092,573 2,650, Transmission 2,546,772 g 1,398,042 j 3,944, Distribution 9,397,382 4,301,425 13,698, General 1,537,695 m 501,147 q 2,038, ,793,524 7,293,188 23,086, Acct. 404 Amortization of Utility Plant: 57 Intangible - 382, , Production Transmission Distribution General 1,182, ,373 1,567, ,565,144 n 385,373 r 1,950, Acct. 406, Amortization of Acquisition Adj: 64 Intangible - (168,432) o - s (168,432) 65 Production (141,368) (99,136) (240,504) 66 Transmission (240,591) i (132,071) l (372,662) 67 Distribution (1,513,752) (692,883) (2,206,635) 68 General (71,085) p (23,167) t (94,252) 69 (2,135,227) (947,258) (3,082,485) 3.1

10 UNS Electric 2016 Data from Plant Accounting/Regulatory Accounting Line Mohave See Note 1 See Note 1 Total Reference 1 Acct. No. 101, Plant in Service at 12/31/16: 2 Intangible Plant (Accts, ) 11,713, % % 11,713,314 Company Reports 3 Production Plant (Accts ) 114,415, % 80,235, % 194,650,758 Company Reports 4 Transmission Plant (Accts ) 79,059, % 43,399, % 122,458,873 Company Reports 5 Distribution Plant (Accts ) 304,183, % 139,232, % 443,415,896 Company Reports 6 General Plant (Accts ) 32,314, % 10,531, % 42,845,492 Company Reports 7 Total Plant in Service 541,685, ,398, ,084,333 8 Acct. No , Capital Leases at 12/31/16: 9 Vehicles % % - Company Reports 10 Acct. No. 106, Completed Const. Not Classified at 12/31/16: 11 Intangible Plant (Accts, ) % % - Company Reports 12 Production Plant (Accts ) 2,665, % 1,869, % 4,534,316 Company Reports 13 Transmission Plant (Accts ) 4,210, % 2,311, % 6,522,285 Company Reports 14 Distribution Plant (Accts ) 4,577, % 2,095, % 6,672,019 Company Reports 15 General Plant (Accts ) 1,973, % 643, % 2,616,700 Company Reports 16 Total Completed Const. Not Classified 13,426,578 6,918,742 20,345, Total Acct No. 101, 101.1, Intangible Plant (Accts, ) 11,713, % % 11,713,314 FERC Pg. 205, Ln. 5(g) 19 Production Plant (Accts ) 117,080, % 82,104, % 199,185,075 FERC Pg. 205, Ln. 45(g)-44(g) 20 Transmission Plant (Accts ) 83,270, % 45,710, % 128,981,159 FERC Pg. 207, Ln. 58(g) 21 Distribution Plant (Accts ) 308,760, % 141,327, % 450,087,915 FERC Pg. 207, Ln. 75(g) 22 General Plant (Accts ) 34,287, % 11,174, % 45,462,192 FERC Pg. 207, Ln. 99(g) 23 Total 555,112, ,317, ,429,655 FERC Pg. 207 Ln 104(g) -Pg205 Ln. 44(g) Note 1: Percentages are based on data filed with the State of Arizona for property valuation and taxation purposes. 3.2 Page 10 of 18

11 UNS Electric 2016 Data from Plant Accounting/Regulatory Accounting Line Mohave See Note 1 See Note 1 Total Reference 24 Acct. No. 108, Accumulated Depreciation: 25 Capital Recovery: 26 Intangible % % - Company Reports 27 Production (25,046,363) 58.78% (17,563,985) 41.22% (42,610,348) Company Reports 28 Transmission (11,320,754) 64.56% (6,214,490) 35.44% (17,535,244) Company Reports 29 Distribution (115,462,810) 68.60% (52,850,324) 31.40% (168,313,134) Company Reports 30 General (7,744,111) 75.42% (2,523,870) 24.58% (10,267,981) Company Reports (159,574,037) (79,152,670) (238,726,707) 31 R.W.I.P.: 32 Intangible % % - Company Reports 33 Production % % - Company Reports 34 Transmission % % - Company Reports 35 Distribution 10, % 4, % 14,836 Company Reports 36 General % % 257 Company Reports 10,371 4,722 15, Acquisition Discount, net of Accum. Amortization: Acct 114/115 NBV 38 Intangible - (combined with General) (1,247,181) % % (1,247,181) Company Reports 39 Production (10,497,956) 58.78% (7,361,785) 41.22% (17,859,741) Company Reports 40 Transmission (5,504,749) 64.56% (3,021,814) 35.44% (8,526,563) Company Reports 41 Distribution (24,996,517) 68.60% (11,441,554) 31.40% (36,438,071) Company Reports 42 General (1,039,866) 75.42% (338,901) 24.58% (1,378,767) Company Reports (43,286,269) (22,164,054) (65,450,323) 43 Acct. 111, Accumulated Amortization: 44 Intangible (2,770,503) % % (2,770,503) Company Reports 45 Production % % - Company Reports 46 Transmission % % - Company Reports 47 Distribution % % - Company Reports 48 General % % - Company Reports (2,770,503) - (2,770,503) 49 Acct , Accum. Amortization - Cap. Leases: 50 Vehicles % % - Company Reports 51 Acct. 1082, Citizen Historical Reserve Accum. Depreciation: 52 Intangible % % - Company Reports 53 Production (1,889,089) 58.78% (1,324,741) 41.22% (3,213,830) Company Reports 54 Transmission (9,068,488) 64.56% (4,978,117) 35.44% (14,046,605) Company Reports 55 Distribution (63,561,524) 68.60% (29,093,759) 31.40% (92,655,283) Company Reports 56 General (7,048,771) 75.42% (2,297,253) 24.58% (9,346,024) Company Reports 57 (81,567,873) (37,693,869) (119,261,742) 3.3 Page 11 of 18

12 UNS Electric 2016 Data from Plant Accounting/Regulatory Accounting Line Mohave See Note 1 See Note 1 Total Reference 58 Acct. 1112,Citizen Historical Accum. Amortization: 59 Intangible (898,662) % % (898,662) Company Reports 60 Production % % - Company Reports 61 Transmission % % - Company Reports 62 Distribution % % - Company Reports 63 General % % - Company Reports 64 (898,662) - (898,662) 65 Asset Retirement Obligation 66 FERC 108 (140,776) % % (140,775.91) Company Reports 67 Acct , % % 53, Company Reports 68 (87,349.25) - (87,349.25) 69 Total Accumulated Depreciation (288,174,322) (139,005,872) (427,180,193) FERC Pg. 110, Ln. 5(c) Note 1: Percentages are based on data filed with the State of Arizona for property valuation and taxation purposes. 70 Acct. No. 403, Depreciation Expense: 71 Intangible 753, % % 753,660 Company Reports 72 Production 1,558, % 1,092, % 2,650,589 Company Reports 73 Transmission 2,546, % 1,398, % 3,944,814 Company Reports 74 Distribution 9,397, % 4,301, % 13,698,807 Company Reports 75 General 1,537, % 501, % 2,038,842 Company Reports 15,793,524 7,293,188 23,086,712 FERC Pg. 114, Ln. 6c 76 Acct. 404, Amortization of Utility Plant: 77 Intangible 382, % % 382,687 Company Reports 78 Production % % - Company Reports 79 Transmission % % - Company Reports 80 Distribution % % - Company Reports 81 General 1,182, % 385, % 1,567,830 Company Reports 1,565, ,373 1,950,517 FERC Pg. 114, Ln. 8c 82 Acct. 406, Amortization of Acquisition Adj.: 83 Intangible - (combined with General) (168,432) % % (168,432) Company Reports 84 Production (141,368) 58.78% (99,136) 41.22% (240,504) Company Reports 85 Transmission (240,591) 64.56% (132,071) 35.44% (372,662) Company Reports 86 Distribution (1,513,752) 68.60% (692,883) 31.40% (2,206,635) Company Reports 87 General (71,085) 75.42% (23,167) 24.58% (94,252) Company Reports 88 (2,135,227) (947,258) (3,082,485) FERC Pg. 114, Ln. 9c Note 1: Percentages are based on data filed with the State of Arizona for property valuation and taxation purposes. 3.4 Page 12 of 18

13 UNSE Electric, Inc. OATT Data YTD December 31, 2016 From Income Statement by FERC Common Costs 20% (2) Kingman Gila River Mohave Adjustments 80% (2) Adjustments 20% (2) UNS Electric, Inc. Reference Line Reference Total Mohave Total Mohave Common Costs 80% (2) Trans-Load Dispatch Company Reports FERC Pg. 321 Ln. 83(b) Trans-Op. Supv. & Eng. Company Reports 6, , , , FERC Pg. 321 Ln. 85(b) thru 92(b) Trans-Station Expense Company Reports 61, , , FERC Pg. 321 Ln. 93(b) Trans-Overhead Line Company Reports 1, , , FERC Pg. 321 Ln. 94(b) Trans Electricity by Company Reports 17,259, ,067, (0.33) (0.08) ,326, FERC Pg. 321 Ln. 96(b) Trans-Misc Oper Expe Company Reports , , , FERC Pg. 321 Ln. 97(b) Trans-Rent Exp Company Reports 7, , FERC Pg. 321 Ln. 98(b) Trans-Maint Supv & Engr Company Reports FERC Pg. 321 Ln. 101(b) Trans-Maint Stn Equi Company Reports 61, , , FERC Pg. 321 Ln. 107(b) Trans-Maint of OH Li Company Reports 2, , , FERC Pg. 321 Ln. 108(b) Trans-Maint Misc Trans Pl Company Reports FERC Pg. 321 Ln. 110(b) 12 Transmission O&M (Acct ) 17,326, ,129, , , , , ,802, FERC Pg. 321 Ln. 112(b) A&G Salaries Company Reports 634, , ,860, , , , ,833, FERC Pg. 323 Ln. 181(b) Office Supplies/Expe Company Reports 183, , , , , , ,728, FERC Pg. 323 Ln. 182(b) Adm Expense Transfrd Company Reports - 28, (1,379,892.41) (344,973.10) 109, (1,586,700.13) FERC Pg. 323 Ln. 183(b) Outside Services Company Reports 20, , ,765, , , , ,473, FERC Pg. 323 Ln. 184(b) Property Insurance Company Reports , , , FERC Pg. 323 Ln. 185(b) Injuries & Damages Company Reports 85, , , , , , FERC Pg. 323 Ln. 186(b) Pensions & Benefits Company Reports 471, , , , , , ,608, FERC Pg. 323 Ln. 187(b) Regulatory Commissio Company Reports FERC Pg. 323 Ln. 189(b) Duplcate Charges-Credit Company Reports (14,383.42) (13,194.00) - - (13,608.70) (41,186.12) FERC Pg. 323 Ln. 190(b) General Advertising Company Reports 79, , , , , FERC Pg. 323 Ln. 191(b) & 192(b) A&G Rents Company Reports 15, , , , , FERC Pg. 323 Ln. 193(b) Maint of General Pla Company Reports FERC Pg. 323 Ln. 196(b) 25 A&G Expenses (Acct ) 1,475, , ,443, ,360, ,154, , ,116, FERC Pg. 323 Ln. 197(b) 26 Taxes Other Than Income: 27 Property Company Reports 1,088, ,040, , , ,434, , ,910, Company Reports 28 Payroll Company Reports 98, , , , , , Company Reports 29 Other Company Reports 1, , , , , Company Reports 30 Taxes Other Than Income: 1,187, ,081, , , ,617, , ,505, FERC Pg. 114 Ln. 14(c) From Income Statement by FERC Common Costs 20% Kingman Gila River Mohave Adjustments 80% Adjustments 20% UNS Electric, Inc. Reference Salaries & Wages: Reference Total Mohave Total Mohave Common Costs 80% 31 Production Company Reports - 58, , , , Company Reports 32 Transmission (1) Company Reports 73, , , Company Reports 33 Distribution Company Reports 852, , ,278, ,317, Company Reports 34 Customer Accts. Company Reports 78, , , , Company Reports 35 Customer Service Company Reports 2, , , Company Reports 36 Sales Company Reports Company Reports 37 A&G Company Reports 266, , , , , , (166,094.38) (41,523.60) 663, Company Reports 38 Salaries & Wages Charged to Expense 1,271, , , , ,461, , (166,094.38) (41,523.60) 4,130, (1) Transmission salaries are allocated based on tax percentages which were provided by the Tax Dept and are weighted based on TRSQ locations in the companies property/personal taxes. (2) Historical OATT allocation for Mohave and 4

14 UNSE Electric, Inc. OATT Data YTD December 31, 2016 Expense Allocation by Location Line Trans-Load Dispatch Trans-Op. Supv. & Eng Trans-Station Expense Trans-Overhead Line Trans Electricity by Trans-Misc Oper Expe Trans-Rent Exp Trans-Maint Supv & Engr Trans-Maint Stn Equi Trans-Maint of OH Li Trans-Maint Misc Trans Pl 12 Transmission O&M (Acct ) A&G Salaries Office Supplies/Expe Adm Expense Transfrd Outside Services Property Insurance Injuries & Damages Pensions & Benefits Regulatory Commissio Duplcate Charges-Credit General Advertising A&G Rents Maint of General Pla 25 A&G Expenses (Acct ) 26 Taxes Other Than Income: 27 Property 28 Payroll 29 Other 30 Taxes Other Than Income: Reference UNS Electric, Inc. Mohave Total W/P W/P 4 114, , , , W/P 4 178, , , W/P 4 12, , , W/P 4 21,326, ,259, ,067, ,326, W/P 4 6, , , , W/P 4 7, , , W/P W/P 4 146, , , , W/P 4 10, , , W/P ,802, , m 85, n 476, W/P 4 4,833, ,047, , ,833, W/P 4 1,728, ,265, , ,728, W/P 4 (1,586,700.13) (1,269,943.90) (316,756.23) (1,586,700.13) W/P 4 2,473, ,953, , ,473, W/P 4 222, , , , W/P 4 273, , , , W/P 4 2,608, ,208, , ,608, W/P 4 - (14,383.42) - (14,383.42) W/P 4 (41,186.12) 66, (13,194.00) 52, W/P 4 492, , , , W/P 4 112, , , , W/P ,116, ,115, g 2,000, h 11,116, W/P 4 5,910, ,857, i 2,052, j 5,910, W/P 4 379, , k 52, l 379, W/P 4 215, , i 43, j 215, ,505, ,357, ,148, ,505, Incentive Comp Expense Allocation by Location Salaries & Wages: 31 Production 32 Transmission (1) 33 Distribution 34 Customer Accts. 35 Customer Service 36 Sales 37 A&G 38 Salaries & Wages Charged to Expense Reference UNS Electric, Inc. Reference Mohave 80% 20% Mohave Total W/P 4 202, Company Reports , , , W/P 4 114, Company Reports , a 40, d 114, W/P 4 2,317, Company Reports 13, , ,144, , ,334, W/P 4 600, Company Reports 22, , , , , W/P 4 231, Company Reports 25, , , , , W/P 4 - Company Reports W/P 4 663, Company Reports 131, , , c 69, f 827, ,130, , , ,875, b 496, e 4,371, (1) Transmission salaries are allocated based on tax percentages which were provided by the Tax Dept and are weighted based on TRSQ locations in the companies property/personal taxes. (2) Historical OATT allocation for Mohave and Salaries & Wages Charged to Balance Sheet 4,371, Ferc Form 1 total wages pg d 4,371,

15 UNS Electric, Inc.. Accumulated Deferred Taxes Source: Company Data Line Deferred Taxes Total 12/31/ NOL Carry Forward 190 7,574,862 2 Plant Related Timing Differences (Excludes CWIP) (72,766,226) 3 CIAC 190 6,191,275 4 Customer Advances ,218,837 5 Regulatory Asset/Liability Adjustments 1,641, Total Deferred Tax Asset / (Liability) (56,139,867) 8 Total Plant Total Northern Southern 9 Ratio 100% 66.45% 33.55% 10 Deferred Tax Asset/(Liability) Before Transmission Ratio (56,139,867) (37,302,887) c (18,836,980) d 11 Transmission Plant 12 Ratio 64.56% 35.44% 13 Total Transmission 101 & ,981,159 83,270,236 45,710, Total Plant 101 & 106 w/p ,429, ,112, ,317, Transmission Ratio 15.44% 15.00% 16.31% 16 ADIT (8,667,379) (5,595,660) a (3,071,719) b 5

16 UNS Electric, Inc. Reconciliation of OATT filing to amounts reported on the Form 1. 12/31/2016 1) NOL Carryforward 190 Per Form 1 (FN for pg c) 7,574,862 Reported on OATT filing 7,574,862 2) Plant Related Timing Differences Per Form 1 (pg k) (74,028,815) Less: ADIT Asset Retirement Costs (source: Company Reports) 836,325 Less: ADIT on CWIP (source: Company Reports) 426,264 Reported on OATT filing (72,766,226) 3) CIAC Per Form 1 (FN for pg c) 6,191,275 Reported on OATT filing 6,191,275 4) Customer Advances Per Form 1 (FN for pg c) 1,218,837 Total Customer Advances 1,218,837 5) Regulatory Asset/Regulatory Liability Adjustments Per Form 1 (pg f) 2,865,579 Per Form 1 (pg f) (1,224,194) Net Inc. Taxes Recoverable/Payable through Future Rates. 1,641,385 6) Total Plant 101 & 106 Per Form 1 (pg g) 837,739,561 Less: Asset Retirement Costs (pg g) (2,309,906) Total Plant 101 & ,429,

17 UNSE M&S and Stores Expense FERC Account Reference Total Mohave 80% * 20% * Fuel Stock FERC Pg. 110 Ln. 45c 289, ,863 57, Materials and Supplies FERC Pg. 110 Ln. 48c 14,394,261 11,515,409 2,878, Stores Expense Undistr. FERC Pg. 111 Ln. 54c 1,500,090 1,200, ,018 16,184,180 12,947,344 a 3,236,836 b * Historical OATT allocation for Mohave and 6

18 UNS ELECTRIC PEAK DATA DISTRICT Line Month Kingman Lake Havasu Mohave County UES Total 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Max Max 14 Avg Avg. a b 7