First quarter profits for Tucson-based UniSource Energy Corp. are expected to come in well ahead of analysts’ estimates because of strong retail and wholesale sales by subsidiary Tucson Electric Power Co. TEP’s retail and wholesale sales rose 3% in January and 8% in February over a year ago.

The company expects earnings to be between 50 cents and 60 cents a share for the first quarter, up from First Call/Thomson Financial estimates of 23 cents per share. In the first two months of 2000, retail sales were 1.14 million MWh and wholesale sales were 945,000 MWh.

TEP revenues also increased, in particular wholesale revenues. Higher regional wholesale revenue contributed more than 50% of TEP’s operating revenues for the first two months of this year, compared with 24% of operating revenues for the same period of 2000.

“The momentum we gained from the wholesale power markets late last year has continued this year,” said CEO James Pignatelli. “Stronger demand in the past two months at higher prices has enabled us to achieve increased earnings over the first two months of last year.”

UniSource plans to release its earnings the week of April 23. Along with its earnings announcement, the company also plans to provide revised earnings guidance for the remainder of 2001. Previously, UniSource said earnings for 2001 would be at least $1.45 per share.

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