DEBT AND CREDIT AGREEMENT |
9 Months Ended |
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Sep. 30, 2026 | |
| Debt Disclosure [Abstract] | |
| DEBT AND CREDIT AGREEMENT | DEBT AND CREDIT AGREEMENT There have been no significant changes to TEP's debt or credit agreements since December 31, 2025, except as noted below. CREDIT AGREEMENTS 2021 Credit Agreement In September 2026, TEP amended and reduced a $5 million LOC with fees accruing at a rate of 1.025% per annum to less than $1 million. As of September 30, 2026, TEP had $241 million available under the 2021 Credit Agreement, which reflected no outstanding revolver borrowings and $9 million of LOCs, with fees that accrued at a rate of 1.025% per annum. On October 15, 2026, the 2021 Credit Agreement revolving credit and LOC facility was amended and restated by the 2026 Credit Agreement as described below. 2026 Credit Agreement On October 15, 2026, the 2021 Credit Agreement was amended and restated. The 2026 Credit Agreement is an unsecured credit agreement with a maturity date of October 2031 that provides for revolving credit and LOC facilities and allows for two one-year extensions if certain conditions are satisfied. Terms of the 2026 Credit Agreement include a: (i) $350 million revolving credit facility, with a $15 million swingline sublimit; and (ii) $50 million LOC sublimit. Interest rates and fees are based on a pricing grid tied to TEP's credit ratings. Amounts borrowed under the 2026 Credit Agreement will be used for working capital and other general corporate purposes. LOCs may be issued from time to time to support energy procurement, hedging transactions, and other business activities. On October 22, 2026, TEP amended and reduced a $1 million LOC with fees accruing at a rate of 1.000% per annum to less than $1 million. As of November 2, 2026, there was $342 million available under the 2026 Credit Agreement, which reflects no outstanding revolver borrowings and $8 million of LOCs, with fees accruing at a rate of 1.000% per annum.
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