APS 2013 Annual Report Download - page 14

Table of Contents
solar photovoltaic systems installed across Arizona through the ACC-approved Schools and Government Program.
Purchased Power Contracts
In addition to its own available generating capacity, APS purchases electricity under various arrangements, including long-term contracts and
purchases through short-term markets to supplement its owned or leased generation and hedge its energy requirements. A portion of APS’s purchased power
expense is netted against wholesale sales on the Consolidated Statements of Income. (See Note 17.) APS continually assesses its need for additional capacity
resources to assure system reliability.
Purchased Power Capacity — APS’s purchased power capacity under long-term contracts, including its renewable energy portfolio, is summarized
in the table below. All capacity values are based on net capacity unless otherwise noted.
Type Dates Available Capacity (MW)
Purchase Agreement (a) Year-round through December 2014 90
Purchase Agreement (b) Year-round through June 14, 2020 60
Exchange Agreement (c) May 15 to September 15 annually through 2020 480
Tolling Agreement Year-round through May 2017 514
Tolling Agreement Summer seasons through October 2019 560
Day-Ahead Call Option Agreement Summer seasons through September 2015 500
Day-Ahead Call Option Agreement Summer seasons through summer 2016 150
Demand Response Agreement (d) Summer seasons through 2024 25
Renewable Energy (e) Various 629
(a) The capacity under this agreement varies by month, with a maximum capacity of 90 MW in each of 2013 and 2014.
(b) Up to 60 MW of capacity is available; however, the amount of electricity available to APS under this agreement is based in large part on
customer demand and is adjusted annually.
(c) This is a seasonal capacity exchange agreement under which APS receives electricity during the summer peak season (from May 15 to
September 15) and APS returns a like amount of electricity during the winter season (from October 15 to February 15).
(d) The capacity under this agreement may be increased in 5 MW increments in each of 2014, 2015 and 2016 and 10 MW increments in
years 2017 through 2024, up to a maximum of 50 MW.
(e) Renewable energy purchased power agreements are described in detail below under “Current and Future Resources — Renewable Energy
Standard — Renewable Energy Portfolio.”
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