Frequently Asked Questions about the APS/ED-3 Sale

What is the nature of the transaction?
On May 26, 2010, the Arizona Corporation Commission (ACC) unanimously approved APS' application to sell and transfer certain transmission and distribution facilities in Pinal County to Electric District No.3 (ED-3). Once the transition is complete, about 3,800 APS customers in the area will be served by ED-3. APS and ED-3 are targeting this fall for completion of the transfer of customers.

What is ED-3?
ED-3 is a municipal corporation that serves both rural and urban electric needs in western Pinal County.  ED-3 has provided electric service to irrigation customers since 1961 and to area residents and businesses since 2001. ED-3's district boundaries encompass about 233 square miles and include the city of Maricopa and the town of Stanfield. ED-3, currently serves more than 17,750 customers in the area. More information about ED-3 can be found at ed3online.org.

Why has APS agreed to sell its distribution assets to ED-3?
Currently, APS customers in the area are served by power lines that are connected to and feed through ED-3's electric system. This unique arrangement has resulted in occasional confusion regarding which utility is responsible for repairs, delays in restoring service, increased costs for both utilities, and a potential risk to the safety of employees of both organizations and the public.

This agreement will result in a single electric utility with the responsibility of maintaining critical infrastructure and ensuring reliable service in the area.

Will reliability to the area be improved if the sale is approved?
APS believes reliability in the area will improve. By eliminating duplicative and confusing obligations regarding the area's electric systems, ED-3 will be better positioned to plan, finance, maintain, operate and construct a cohesive electric system in the designated service area. Additionally, the need for both utilities to respond to certain emergency and service issues will be eliminated, thus increasing response times and improving operational efficiencies.

What are the boundaries of the proposed ED-3 service area?
The general area of the service territory is south of the Gila River Indian Community, north of the Tohono Indian Community, east of the Pinal-Maricopa County line and west of the city of Casa Grande. A map of proposed ED-3 service boundary is available.

Will APS continue to serve customers in the vicinity surrounding the ED-3 service area?
Yes. APS will continue to serve customers who reside in areas that are adjacent to but outside of the proposed ED-3 service territory.

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How will APS customers impacted by the sale be notified?
APS is committed to an extensive public outreach effort to address any questions our customers may have, and we are working closely with ED-3 to ensure a smooth, seamless transition. APS' outreach efforts have included direct mail, newspaper advertisements and two public meetings. Most recently, APS in June sent a letter to those customers impacted by the sale informing them of the ACC's decision. Once APS has attained a final meter read, a door hanger will be left informing the customer they now are being served by ED-3. Again, we expect the transition to be finalized in the fall.

In addition, a Web site, aps.com/ed3, has been established to provide more information. Customers with additional questions can call (520) 421-8455.

How will the monthly bills of APS customers moving to ED-3 be impacted?
The rates for the two utilities are comparable. The average standard APS monthly residential bill based on 1,541 kilowatt hours of use is $195.37, while the average ED-3 overhead rate based on the same usage is $191.62. Meanwhile, the average APS time of use residential bill for 1,541 kilowatt hours of use is $171.26, while the comparable average ED-3 bill is $170.50. If customers wish to discuss rate options with ED-3 they are welcome to call ED-3 at (520) 424-9021.

If impacted by the transaction, will I need to take any action to become a customer of ED-3?
No. Records of APS customers impacted by the sale will be transitioned to ED-3.

What actions will APS take with those customers impacted once the sale takes effect?
APS personnel will record a final read of the customers' meters at the same time that ED-3 personnel obtain a start read. APS will issue a final bill and ED-3 then will start billing from that point forward.

How will security deposits be handled by APS?
If APS collected a security deposit from a customer, the deposit will be applied to the final APS bill and any remaining credit balance will be refunded to the customer.

Will customers making the transition from APS to ED-3 be required to pay a security deposit to ED-3?
No. ED-3 has agreed to waive initial deposits for customers making the move from APS to ED-3, essentially starting them with a clean slate. However, customers who do not remain current on their ED-3 account may be required to pay a deposit at a later date.

Will my meter be switched?
Not initially. The sale of APS distribution facilities within ED-3's boundaries includes all APS equipment, including meters. ED-3 may exchange meters in the future.

Will APS customers who utilize time of use rates have that option with ED-3?
Yes. Similar to APS, ED-3 offers two time-of-use programs with substantially lower rates for energy used during the off-peak hours.  Off peak hours are either 9 p.m. to 9 a.m. or 7 p.m. to 12 p.m. during the week and all day on Saturday and Sunday.  More information about ED-3's rates and customer programs can be found at ed3online.org.

APS offers its customers incentives for the installation of renewable energy systems, including solar and wind technologies at their homes and businesses. Are current APS customers who reside in the proposed ED-3 service territory able to take advantage of incentives APS offers for installing rooftop solar systems?
Yes. APS will pay Renewable Energy Standard (RES) incentives to those customers being transferred to ED-3 provided the customers submit their application to APS within 180 days of the date customers were notified the sale had been approved and complete the relevant installation within 12 months from the date of the application.

APS offers its customers incentives for various energy efficiency programs, including an AC rebate program and a Duct Test and Repair program among others. Are current APS customers who reside in the proposed ED-3 service territory able to take advantage of incentives APS offers for energy efficiency programs?
Yes. APS will pay ACC approved incentives to those customers being transferred to ED-3 provided the customers make application to APS within 180 days of the date customers were notified the sale had been approved, and complete the relevant installation within 12 months from the date of the application.

Do ED-3 customers have the ability to pay their monthly bill electronically or have it automatically deducted from their account each month?
Yes. More information can be found about ED-3's electronic bill payment plan, the monthly recurring payment plan and its other programs by visiting ed3online.org.

What if I am currently paying my bill electronically or having it automatically deducted from my account each month?  Will I have to re-apply for this service with ED-3?
Yes. A new request/application will need to be completed through ED-3.

I am currently on APS' Equalizer budget payment plan. Does ED-3 offer a budget plan and will I be able to have the same payment plan with ED-3?
Yes. Customers on APS' Equalizer plan at the time of the transfer will be set up on ED-3's Monthly Recurring Billing Option at the same average amount they were paying on their APS bill.

What if I have a debit or credit balance on my APS Equalizer account at the time I am transferred to ED-3?
Credit balances will be refunded to customers. Final bills with a debit balance are due and payable to APS. Customers with large debit balances that require additional time to pay can contact APS at 800-253-9405 (statewide) or (602) 371-7171 in the Phoenix area to establish payment arrangements.

What if I have further questions?
This is a unique transition, and APS will provide new information as it becomes available. In the meantime, customers can visit www.aps.com/ed3 or call (520) 421-8455. For questions specific to ED-3 and the services it offers, people can visit ed3online.org or call (520) 424-9021.

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