CORRECTING and REPLACING UniSource Energy Declares Dividend, Elects Directors at 2007 Annual Shareholder Meeting

Fourth graph, first sentence of release should read: Strong customer growth continues at both TEP and UES, Pignatelli said, and the company will invest more than $1.5 billion in capital improvements over the next five years to help meet customers’ growing energy needs (sted Strong customer growth continues at both TEP and UES, Pignatelli said, and the company will invest more than $1.5 million in capital improvements over the next five years to help meet customers’ growing energy needs).

The corrected release reads:

UNISOURCE ENERGY DECLARES DIVIDEND, ELECTS DIRECTORS AT 2007 ANNUAL SHAREHOLDER MEETING

The board of directors of UniSource Energy Corp. (NYSE: UNS) declared a dividend today of 22.5 cents per share of common stock. The dividend will be paid June 15, 2007, to common shareholders of record as of May 23, 2007.

James S. Pignatelli, Chairman, President and CEO of UniSource Energy, discussed the company’s performance and outlook during today’s annual shareholders meeting in Tucson, Ariz.

Pignatelli discussed plans to formally request an increase in rates charged by Tucson Electric Power (TEP), UniSource Energy’s principal subsidiary. He also updated shareholders on pending rate cases involving UNS Gas and UNS Electric, operating subsidiaries of UniSource Energy Services (UES).

Strong customer growth continues at both TEP and UES, Pignatelli said, and the company will invest more than $1.5 billion in capital improvements over the next five years to help meet customers’ growing energy needs. The company also will maintain its strong commitment to community service, he said.

During the meeting, UniSource Energy shareholders approved the selection of PricewaterhouseCoopers, LLP as the company’s independent auditor for 2007. Shareholders also voted to extend the service of UniSource Energy’s current board of directors, including:

James S. Pignatelli

Lawrence J. Aldrich, President, Aldrich Capital Company

Barbara M. Baumann, President and Owner, Cross Creek Energy Corp.

Larry W. Bickle, Executive in Residence, Haddington Ventures, L.L.C.

Elizabeth T. Bilby, Former President, Gourmet Products Inc.

Harold W. Burlingame, Former Executive Vice President, AT&T

John L. Carter, Former Executive Vice President and CFO, Burr-Brown Corp.

Robert A. Elliott, President and Owner, The Elliott Accounting Group

Daniel W. L. Fessler, Professor Emeritus, University of California

Kenneth Handy, Retired CPA, Former Financial Executive with Kaiser Permanente Medical Care Program

Warren Y. Jobe, Former Senior Vice President, Southern Company

Joaquin Ruiz, Dean, College of Science, Professor of Geosciences, University of Arizona

UniSource Energy’s primary subsidiaries include Tucson Electric Power, which serves more than 394,000 customers in southern Arizona; UniSource Energy Services, provider of natural gas and electric service for nearly 240,000 customers in northern and southern Arizona; and Millennium Energy Holdings, parent company of UniSource Energy’s unregulated energy businesses. For more information about UniSource Energy and its subsidiaries, visit uns.com.