APS 2012 Annual Report Download - page 8

AN OPTIMISTIC OUTLOOK ON GROWTH
Arizona was hit hard by the economic downturn at the end of the last decade, but in 2012 we saw signs
of recovery. Housing permits for the metropolitan Phoenix market, for example, were up 60 percent from
the previous year. Home vacancies were down about 15 percent.
We expect annual customer growth of 2 percent on average through 2015, and remain confident long-
term customer growth in the APS service territory will outpace U.S. population growth. Our planning
forecasts project 2.7 percent annual customer growth through 2030, which would add nearly 700,000
new customers to the APS system.
Serving this growing customer population will require substantial continued investment in the electricity
grid, which is estimated to grow the APS rate base by 6 percent on average through 2015.
BALANCED PORTFOLIO
In each of my last two letters, I provided updates on our plan to purchase Southern California Edison’s
share of the APS-operated Four Corners Power Plant, invest in new environmental controls for the
two most modern units and retire the three older units. Our plan would preserve a source of affordable
energy for our customers, protect jobs for the Navajo Nation and reduce emissions.
In 2012 the transaction gained regulatory approval from the ACC, the California Public Utilities
Commission and the Federal Energy Regulatory Commission. We also made significant progress
toward a new supply agreement for coal from the nearby Navajo Mine. We plan to close on the
acquisition in 2013.
We entered 2013 with considerable momentum
at our backs, but only a commitment to
continuous improvement will sustain our
performance for the long term.
MOMENTUM 2012 ANNUAL REPORT