 APS Q43 500kV Transmission Line and Switchyard Interconnection Project On June 1, 2009, APS and San Diego Gas & Electric Company (SDG&E) as a co-Applicant, submitted an Application for a Certificate of Environmental Compatibility (CEC) for a series of proposed 500kV transmission lines and a new regional switchyard near Dateland, Arizona. The new facilities are needed to connect a solar generation project proposed by the Agua Caliente Solar, LLC to the existing APS-operated 500kV transmission system. The existing 500kV transmission line is jointly owned by APS, SDG&E and the Imperial Irrigation District. APS is not participating in the development of the proposed solar generation project, nor is the company intending to receive any of the output of this particular facility. APS involvement is necessitated by the project's planned interconnection into a portion of the regional 500kV transmission system operated by APS. The project name of "APS Q43" is a reference to the solar generation project occupying the 43rd position in the current APS transmission interconnection queue. Additional information about the planned solar generation project can be found at the developer's project Web site at: http://aguacalientesolarproject.com Because the need for APS to seek a CEC for the transmission lines and switchyard is a direct result of the Agua Caliente solar generation project, the Arizona Power Plant and Transmission Line Siting Committee will hold a joint hearing to consider approving the CEC application for the solar plant concurrently with the APS/SDG&E application. The open public hearing will be held at the Dateland Elementary School located at 1300 South Avenue 64E in Dateland, Arizona 85333 on July 21-23, 2009. Please review the files below for more information about the project location and the Notice of Hearings. Questions about APS participation in this project can be directed to Greg Bernosky, APS Project Manager, at 602-493-4448 or by e-mail at Gregory.Bernosky@aps.com.

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