**UniSource        Energy Corporation**

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

|                                                              |   | 9                      Months                      Ended                 | 12                      Months                      Ended |                                                               | 12                      Months                      Ended(2) |                          |
|-------------------------------------------------------------------|--------|--------------------------------------------------------------------------|-----------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------|-------------------------------|
|                                                              |   | Sept.                      30                                            |                                                      | Sept.                      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            |   | $                                                                        | 56,747                                                    |                                                               | $                                                            | 75,411                        |   | $ | 76,762 |   | $ | 80,968 |   | $ | 80,844 |   | $ | 65,620 |   | $ | 68,678 |   |
|  Other                      Interest (1)                     |   |                                                                     | 6,876                                                     |                                                               |                                                         | 7,527                         |   |   | 3,153 |   |   | 1,947 |   |   | 3,709 |   |   | 2,123 |   |   | 1,287 |   |
|                        Interest on Capital Lease Obligations |   |                                                                     | 55,047                                                    |                                                               |                                                         | 74,920                        |   |   | 79,098 |   |   | 85,912 |   |   | 84,080 |   |   | 87,801 |   |   | 90,559 |   |
| **Total                      Fixed Charges**                      |   |                                                                     | 118,670                                                   |                                                               |                                                         | 157,858                       |   |   | 159,013 |   |   | 168,827 |   |   | 168,633 |   |   | 155,544 |   |   | 160,524 |   |
|                                                              |   |                                                                     |                                                      |                                                               |                                                         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                      Income**                               |   |                                                                     | 55,023                                                    |                                                               |                                                         | 77,085                        |   |   | 46,144 |   |   | 45,919 |   |   | 113,941 |   |   | 34,928 |   |   | 63,839 |   |
|                                                              |   |                                                                     |                                                      |                                                               |                                                         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Less:**                                                         |   |                                                                     |                                                      |                                                               |                                                         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        Discontinued Operations - Net of Tax  |   |                                                                     | (2,669                                                    | )                                                                  |                                                         | (3,731                        | ) |   | (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**    |   |                                                                     | 57,692                                                    |                                                               |                                                         | 81,442                        |   |   | 52,253 |   |   | 50,982 |   |   | 53,942 |   |   | 47,847 |   |   | 73,295 |   |
|                                                              |   |                                                                     |                                                      |                                                               |                                                         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Add                      (Deduct):**                            |   |                                                                     |                                                      |                                                               |                                                         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                        (Income) Losses from Equity Investees |   |                                                                     | (208                                                      | )                                                                  |                                                         | (2,599                        | ) |   | (2,113 | ) |   | (7,121 | ) |   | 3,051 |   |   | 3,047 |   |   | 10,748 |   |
|  Income                      Taxes                           |   |                                                                     | 38,630                                                    |                                                               |                                                         | 56,770                        |   |   | 37,623 |   |   | 37,186 |   |   | 16,531 |   |   | 26,432 |   |   | 55,616 |   |
|  Total                      Fixed Charges                    |   |                                                                     | 118,670                                                   |                                                               |                                                         | 157,858                       |   |   | 159,013 |   |   | 168,827 |   |   | 168,633 |   |   | 155,544 |   |   | 160,524 |   |
|                                                              |   |                                                                     |                                                      |                                                               |                                                         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Total                      Earnings before Taxes**              |   |                                                                     |                                                      |                                                               |                                                         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **and                      Fixed Charges**                        |   | $                                                                        | 214,784                                                   |                                                               | $                                                            | 293,471                       |   | $ | 246,776 |   | $ | 249,874 |   | $ | 242,157 |   | $ | 232,870 |   | $ | 300,183 |   |
|                                                              |   |                                                                     |                                                      |                                                               |                                                         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   |                                                                     |                                                      |                                                               |                                                         |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio                      of Earnings to Fixed Charges**       |   |                                                                     | 1.810                                                     |                                                               |                                                         | 1.859                         |   |   | 1.552 |   |   | 1.480 |   |   | 1.436 |   |   | 1.497 |   |   | 1.870 |   |