Unisource Energy Q3 2007 Earnings Call Transcript

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2007-11-02 10:54:17.0

Tags: UniSource Energy Corp.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Dan Eggers with Credit Suisse.

James Pignatelli

Hi, Dan. How are you today?

Dan Eggers - Credit Suisse

Hi, good. How are you guys?

James Pignatelli

Fine, thanks. I just want to let you know I only be the guy. So, I will and ask any specific answers all those questions to.

Dan Eggers - Credit Suisse

Right, well. James, in terms of looking at the quarter the drag that came up with the Springerville lease been pulled quite earlier than expected, when we think about ’08 I know you are not ready to give away guidance. But is that create a bigger risk for third quarter ’08 number just a way of the bigger fuel burden continuing either the way at perhaps profitability in the summer month.

James Pignatelli

Well, actually given some cost of fuel and what the temperature of sales levels out there. We still make a little even at cost in the year $70, $80 range. We still will make a margin. The unfortunate thing is the Springerville 3 contract it was called back by Tri-State was priced in the $51 range.

We didn’t really receive too much energy from that this third quarter because as I would call it, it was told. We received just one month of benefit from that this third quarter. So, quarter-to-quarter that won’t be a material impact to us, Dan to when you look at next year versus this year.

Dan Eggers - Credit Suisse

Okay. How much contribution did you guys get from Luna in the quarter?

James Pignatelli

I don’t have that. Dan, we can to have that information (inaudible).

Dan Eggers - Credit Suisse

Okay, right. We’ll follow-up next week. Thank you.

James Pignatelli

Okay. Thank you, Dan.

Operator

Your next question comes from Brian Russo with Ladenburg Thalmann.

Brian Russo - Ladenburg Thalmann

Hello.

James Pignatelli

Hi, Brian.

Brian Russo - Ladenburg Thalmann

Can you just talk a little bit about the slowing growth at UES, what’s attributing to that?

James Pignatelli

Well, there are various factors that attributing. I think there is a slower growth at UES. UES is in some outlined territories, and it’s basically the growth was being, a lot of the growth was being driven on the electric side.

While the anticipation, the completion of the bridge below the dam thereby opening actually Las Vegas to this sector Arizona. And that growth has slowdown. The bridge, the dam is being delayed because of the crane failure. Additionally it’s a little bit held up I think, up there because of disagreements over water availability and water rights, which has slowed down some of the development.

 

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