v3.26.3
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2026
Supplemental Cash Flow Information [Abstract]  
Schedule of Cash and Non-Cash Transactions
Nine Months Ended September 30,
(in millions)20262025
Interest Paid, Net of Amounts Capitalized$67 $59 
Income Taxes Paid (Net of Refunds) (1)(2)
(89)3 
(1)Reflects payments to UNS Energy under a tax sharing agreement.
(2)In April 2026, TEP sold ITCs related to Roadrunner Reserve I and received $46 million in cash proceeds. In July 2026, TEP sold ITCs related to Roadrunner Reserve II and received $46 million in cash proceeds. On October 1, 2026, TEP sold additional ITCs related to Roadrunner Reserve II and received $37 million in cash proceeds, which are not reflected in the amount presented in the table above. See Note 1 for additional information regarding ITCs.
Other significant non-cash investing and financing activities that resulted in recognition of assets and liabilities but did not result in cash receipts or payments were as follows:
Nine Months Ended September 30,
(in millions)20262025
Accrued Capital Expenditures$59 $42 
Asset Retirement Obligations Increase (Decrease)10 5 
Renewable Energy Credits3 4 
Operating Leases2 — 
Net Cost of Removal Increase (Decrease) (1)
(10)(16)
(1)Represents the change in accrual for future retirement costs, net of salvage values. This change does not impact earnings.