**UniSource        Energy Corporation**

**Computation          of Ratio of Earnings to Fixed Charges**

|                                                                                        |   | 6MonthsEnded                                           |    | 12MonthsEnded                                          |   | 12                Months                Ended(2) |
|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|--------------------------------------------------------|--------|--------------------------------------------------|
|                                                                                        |   | Jun.                30,                                |    | Jun.                30,                                |   | Dec.                31,                          |   | Dec.                31, |   | Dec.                31, |   | Dec.                31, |   | Dec.                31, |   |
|                                                                                        |   | 2006                                                   |    | 2006                                                   |   | 2005                                             |   | 2004 |   | 2003 |   | 2002 |   | 2001 |   |
|                                                                                        |   | -                Thousands                of Dollars - |    | -                Thousands                of Dollars - |
| **Fixed                Charges:**                                                           |   |                                                   |    |                                                   |   |                                             |   |   |   |   |   |   |   |   |   |
|     Interest                on                Long-Term Debt            |   | $                                                      | 37,892  |                                                   | $      | 74,558                                           |   | $ | 76,762 |   | $ | 80,968 |   | $ | 80,844 |   | $ | 65,620 |   | $ | 68,678 |   |
|     Other                Interest                (1)                    |   |                                                   | 2,573   |                                                   |   | 4,222                                            |   |   | 3,153 |   |   | 1,947 |   |   | 3,709 |   |   | 2,123 |   |   | 1,287 |   |
|     Interest                on                Capital Lease Obligations |   |                                                   | 37,073  |                                                   |   | 77,024                                           |   |   | 79,098 |   |   | 85,912 |   |   | 84,080 |   |   | 87,801 |   |   | 90,559 |   |
| **Total                Fixed Charges**                                                      |   |                                                   | 77,538  |                                                   |   | 155,804                                          |   |   | 159,013 |   |   | 168,827 |   |   | 168,633 |   |   | 155,544 |   |   | 160,524 |   |
|                                                                                        |   |                                                   |    |                                                   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Income**                                                               |   |                                                   | 26,820  |                                                   |   | 67,279                                           |   |   | 46,144 |   |   | 45,919 |   |   | 113,941 |   |   | 34,928 |   |   | 63,839 |   |
|                                                                                        |   |                                                   |    |                                                   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Less:**                                                                                   |   |                                                   |    |                                                   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Discontinued                Operations - Net of Tax                 |   |                                                   | (2,669  | )                                                      |   | (5,135                                           | ) |   | (5,483 | ) |   | (5,063 | ) |   | (7,472 | ) |   | (12,919 | ) |   | (9,926 | ) |
|     Accounting                Change - Net of Tax                       |   |                                                   | -       |                                                   |   | (626                                             | ) |   | (626 | ) |   | - |   |   | 67,471 |   |   | - |   |   | 470 |   |
| **Net                Income from Continuing Operations**                                    |   |                                                   | 29,489  |                                                   |   | 73,040                                           |   |   | 52,253 |   |   | 50,982 |   |   | 53,942 |   |   | 47,847 |   |   | 73,295 |   |
|                                                                                        |   |                                                   |    |                                                   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Add                (Deduct):**                                                            |   |                                                   |    |                                                   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (Income)                Losses                from Equity Investees |   |                                                   | 24      |                                                   |   | (2,819                                           | ) |   | (2,113 | ) |   | (7,121 | ) |   | 3,051 |   |   | 3,047 |   |   | 10,748 |   |
|     Income                Taxes                                         |   |                                                   | 20,917  |                                                   |   | 50,913                                           |   |   | 37,623 |   |   | 37,186 |   |   | 16,531 |   |   | 26,432 |   |   | 55,616 |   |
|     Total                Fixed                Charges                   |   |                                                   | 77,538  |                                                   |   | 155,804                                          |   |   | 159,013 |   |   | 168,827 |   |   | 168,633 |   |   | 155,544 |   |   | 160,524 |   |
|                                                                                        |   |                                                   |    |                                                   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Total                  Earnings before Taxes****and                Fixed Charges**        |   | $                                                      | 127,968 |                                                   | $      | 276,938                                          |   | $ | 246,776 |   | $ | 249,874 |   | $ | 242,157 |   | $ | 232,870 |   | $ | 300,183 |   |
|                                                                                        |   |                                                   |    |                                                   |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                of Earnings to Fixed Charges**                                       |   |                                                   | 1.650   |                                                   |   | 1.777                                            |   |   | 1.552 |   |   | 1.480 |   |   | 1.436 |   |   | 1.497 |   |   | 1.870 |   |