APS 2013 Annual Report Download - page 238

6. Definitions.
(a) Performance Metrics. The “Performance Metrics” for the Performance Period are: (i) the JD Power Residential National Large Segment
Survey for investor-owned utilities; (ii) the System Average Interruption Frequency Index (Major Events Excluded) (“ SAIFI”); (iii) Arizona
Public Service Company’s customer to employee improvement ratio; (iv) the OSHA rate (All Incident Injury Rate); (v) nuclear capacity
factor; and (vi) coal capacity factor.
(1) With respect to the Performance Metric described in clause (i) of this Subsection 6(a), the JD Power Residential National Large
Segment Survey will provide data on an annual basis reflecting the Company’s percentile ranking, relative to other participating
companies.
(2) With respect to the Performance Metric described in clause (ii) of this Subsection 6(a), the Edison Electric Institute (“EEI”) will
provide data on an annual basis regarding the SAIFI result of the participating companies; the Company will calculate its SAIFI
result for the year in question and determine its percentile ranking based on the information provided by EEI.
(3) With respect to the Performance Metric described in clause (iii) of this Subsection 6(a), SNL, an independent third party data
system, will provide data on an annual basis regarding the customer and employee counts; the Company will use its customer and
employee counts for the year in question and determine its percentile ranking based on the information provided by SNL. Only
those companies whose customers and employees were included in the data provided by SNL in each of the years of the
Performance Period will be considered.
(4) With respect to the Performance Metric described in clause (iv) of this Subsection 6(a), EEI will provide data on an annual basis
regarding the OSHA rate of the participating companies; the Company will calculate its OSHA rate for the year in question and
determine its percentile ranking based on the information provided by EEI.
(5) With respect to the Performance Metric described in clause (v) of this Subsection 6(a), SNL will provide data on an annual basis
regarding the nuclear capacity factors of the participating nuclear plants; the Company will calculate its nuclear capacity factor for
the year in question and determine its percentile ranking based on the information provided by SNL. Only those plants that were
included in the data provided by SNL in each of the years of the Performance Period will be considered.
(6) With respect to the Performance Metric described in clause (vi) of this Subsection 6(a), SNL will provide data on an annual basis
regarding the coal capacity factors of the participating coal plants; the Company will calculate its coal capacity factor for the year in
question and determine its percentile ranking based on the information provided by SNL. Only those plants that were included in
the data provided by SNL in each of the years of the Performance Period will be considered.
(7) The Company’s percentile ranking during the Performance Period for each Performance Metric will be the average of the
Company’s percentile ranking for each Performance Metric during each of the three years of the Performance Period (each, an
“Average Performance Metric”); provided, however, that if the third year of a Performance Metric is not calculable by December 15
of the following year, the Performance Metric shall consist of the three most recent years for which such Performance Metric is
calculable. The Company’s “Average Performance,” for purposes of determining any Base Grant adjustments pursuant to
Subsection 5(b) above will be the average of the Average Performance Metrics. If only quartile, rather than percentile, rankings are
available for a particular Performance Metric, the Average Performance Metric for any such Performance Metric shall be expressed
as a percentile. For example, if the Performance Metric was in the top quartile for two
4