APS Prepared to Serve Customers this Summer

March 24, 2009

APS' 1.1 million customers can expect to have an adequate supply of electricity delivered to them through the summer's hottest months, company officials told the Arizona Corporation Commission (ACC) today at its summer assessment briefing.

This message was part of APS' annual report to the ACC of its plans for meeting the energy needs of its customers when demand is at its peak. The presentation included forecasted summer peak, an inventory of the available resources to serve that peak, a summary of APS' implemented and planned system improvements, and the company's preparedness to respond to wildfires and other emergencies.

"We believe we are well prepared to meet our customers' energy needs when demand is at its highest," said Daniel Froetscher, APS Vice President of Energy Delivery. "Arizona's extreme summer temperatures and growing population require us to continually evaluate and upgrade our system. And, of course, we must remain prepared for any contingency."

This summer, APS has forecasted a peak of 7,254 megawatts (MW), compared with the 2008 summer peak of 7,026, which occurred on Aug. 1. Between its existing generation, and long-term and short-term contracts, APS has 8,460 MW of resources available to help meet summer peak. (The summer peak - the 15-minute period when APS customers require the most energy - typically occurs in July or August between 5 and 6 p.m.)

While APS has continually managed its system to meet peak demand, these efforts also have helped improve the company's system reliability. In 2008, for example, the company recorded its all-time best year for clear-weather outage frequency with an average of 0.78 per customer.

In addition to building and maintaining infrastructure, planning to meet the needs of a service territory comprised of more than 34,000 square miles means being prepared for any contingency. Wildfires, summer storms and unforeseen circumstances require coordination among federal, state, county and local authorities, in addition to other electric utilities. APS' system is designed to withstand unexpected loss of certain facilities without impacting customers.

The state's other major electric utilities also made presentations to the ACC.

APS, Arizona's largest and longest-serving electricity utility, serves about 1.1 million customers in 11 of the state's 15 counties. In 2008, APS won its second Edison Award in recognition of innovative leadership and operational excellence in the electric industry.  Given annually by the Edison Electric Institute, the Edison Award is considered the industry's most prestigious honor. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW)

Damon Gross
(602) 250-2269