APS 2011 Annual Report Download - page 7

While one of our company’s greatest assets is our historically fast-growing service area, another is
the sun shining in the wide Arizona skies. Because the sun shines 300 days each year, solar energy
will become an important part of our diverse resource portfolio.
We have now received approval from the ACC to construct 200 megawatts of APS-owned solar
generation by the end of 2015. Demonstrating the eectiveness of this initiative, APS and project
partner First Solar achieved a rst in 2011 when the 17-megawatt Paloma Solar Plant moved from
breaking ground to commercial availability in only four months, a new record for both companies.
Paloma is joined by the 17-megawatt Cotton Center Solar Plant and the 16-megawatt Hyder Solar
Plant as the rst completed projects in our AZ Sun portfolio.
In addition to pursuing the continued operation of Four Corners and developing Arizona’s solar potential,
we plan to meet future electricity demand with new investments in transmission. Our 10-year plan
includes $550 million for 269 miles of new transmission, which will help maintain reliability and open
new areas for development of renewable energy sources.
PROMOTE A SOUND REG U L ATO RY CL I M ATE
“Inclusive, open, collaborative and constructive.” That is how one participant, testifying to the ACC,
described the negotiations that produced a settlement agreement among 22 parties in the pending
APS general rate case. The settlement drew support from a diverse array of groups, including those
representing residential customers, commercial and industrial customers, low-income customers,
realtors, unions, competitive power suppliers, federal agencies and utility investors.
Hearings on the settlement agreement concluded in February 2012 and we anticipate a nal decision
by mid-year. For current information on the APS rate case, I encourage you to visit azenergyfuture.com,
where we post summaries of the settlement agreement, testimony and other useful information.
One other regulatory accomplishment merits special note. After more than two years of intense review
and scrutiny, the U.S. Nuclear Regulatory Commission approved Palo Verde’s license renewal application.
The NRC extended the operating licenses for all three Palo Verde units 20 years beyond the original 40-
year licenses, allowing Unit 1 to operate until 2045, Unit 2 until 2046 and Unit 3 until 2047.
The devastating tsunami in March 2011, which led to an accident at Japan’s Fukushima Daiichi nuclear
plant, had repercussions throughout the world. The resulting events led to questions about the safety
of nuclear power. Palo Verde’s design and location dier signicantly from those of the Fukushima plant.
The tragedy put the spotlight on one of the dening attributes of the U.S. nuclear power industry: its
commitment to continuous improvement. Within hours of the tsunami, we assembled a team of our
most experienced engineers to track the situation in Japan and analyze potential lessons. Palo Verde
will be safer and stronger as a result.
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