APS 2009 Annual Report Download - page 7

POWERFUL RELATIONSHIPS 09AR
these same agencies for the past three years,
recognizing APS as a national leader in promoting
energy ef ciency and reducing greenhouse gases.
In 2009, our coal- red plants continued their run
of top-quartile performance, posting a  eet average
capacity factor of 82 percent, while the Palo Verde
Nuclear Generating Station operated at a capacity
factor of 89 percent, in line with industry averages.
Notably, Palo Verde stands as the only U.S. generating
facility of any type ever to exceed 30 million megawatt-
hours of production in a single year, and it did so last
year for the  fth time in its history.
Strong energy delivery operations and customer
satisfaction remain central to our success. Our customer
satisfaction ratings as measured by J.D. Power and
Associates continue to place APS in the top tier nationally.
Most recently, the J.D. Power 2010 business customer
survey placed APS in the top 10 nationally among
47 large electric utilities.
While 2009 included Phoenix’s hottest July in memory,
our delivery business had its most reliable year on
record. We set a company standard for reliability by
keeping the power  owing 99.99 percent of the time.
When outages did occur, our retail customers experienced
the shortest average outage time in our history – only
76 minutes – placing APS’s performance well in the
top quartile of our industry.
The dedicated men and women throughout our
company deserve the credit for our performance
in 2009. They continually set new standards for
excellence, demonstrating their depth of skills and
talents for innovation. As always, we rely on them
for our future success.
TRANSITIONS AND LOOkING AHEAD
Changing customer expectations, emerging tech-
nologies and legislative policies all act to transform
our industry. We cannot rest on past accomplishments.
We will continue cultivating our skilled, dedicated
workforce and employing new technologies to enhance
our performance and cost management. Importantly,
we have strengthened our executive team with several
new of cers. Some of them have ascended through
our ranks, while others came to us from positions
outside the company.
I am pleased Denis Cortese joined our Board of Directors
earlier this year. Denis, the emeritus president and chief
executive of cer of Mayo Clinic, is director of the Arizona
State University Health Care Delivery and Policy Program.
His extensive experience leading complex organizations
with multiple constituencies  ts exceptionally well with
Pinnacle West.
Three directors are retiring in 2010 from their
service on the Pinnacle West Board: Bill Jamieson,
Bill Post and Bill Stewart. Each brought unique
skills, strengths and wisdom to our Board. We extend
our deep appreciation and best wishes to these
gentlemen for their service.
I want to extend my own personal appreciation to Bill
Post. As you know, Bill retired in 2009 as chairman and
chief executive of cer of Pinnacle West and APS after
providing more than a decade of superior leadership,
and he graciously agreed to continue on the board for
a year to ensure continuity. Bill, thank you for your
years of devotion to our company.
As I complete my first year leading the company,
I take pride in what we all have accomplished. I
appreciate the trust you place in me and regard
leading this great company as a rare privilege. With
an outstanding leadership team and a stellar work-
force, I have confidence we will successfully address
the complex opportunities and challenges facing our
company and industry now and in the future for the
benefit of our shareholders, customers, employees
and other stakeholders.
DONALD E. BRANDT
Chairman, President and Chief exeCutive OffiCer
marCh 18, 2010