APS 2013 Annual Report Download - page 45

Table of Contents
Morgan to Pinnacle Peak 500kV, is currently in-service. The second phase, Delaney to Palo Verde 500kV, is under construction. The third and fourth
phases, Delaney to Sun Valley 500kV and Morgan to Sun Valley 500kV, have been permitted and are in various stages of final design and development. In
total, the projects consist of over 100 miles of new 500kV lines, with many of those miles constructed with the capability to string a 230kV line as a second
circuit.
APS continues to work with regulators to identify transmission projects necessary to support renewable energy facilities. Two such projects, which
are included in APS’s 2014 transmission plan, are the Delaney to Palo Verde line and the North Gila to Hassayampa line, both of which are intended to
support the transmission of renewable energy to Phoenix and California.
Plant and Transmission Line Leases and Rights-of-Way on Indian Lands
The Navajo Plant and Four Corners are located on land held under leases from the Navajo Nation and also under rights-of-way from the federal
government. The right-of-way and lease for the Navajo Plant expire in 2019 and the right-of-way and lease for Four Corners expire in 2016. On March 7,
2011, the Navajo Nation Council signed a resolution approving a 25-year extension to the existing Four Corners lease term and providing Navajo Nation
consent to renewal of the related rights-of-way. APS is filing applications for renewal of these rights-of-way with the DOI. Before it may approve the Four
Corners lease extension and issue the renewed rights-of-way, the United States must complete an analysis under the federal National Environmental Policy Act,
the ESA and related statutes.
Certain portions of the transmission lines that carry power from several of our power plants are located on Indian lands pursuant to rights-of-way
that are effective for specified periods. Some of these rights-of-way have expired and our renewal applications have not yet been acted upon by the appropriate
Indian tribes or federal agencies. Other rights expire at various times in the future and renewal action by the applicable tribe or federal agencies will be required
at that time. In recent negotiations, certain of the affected Indian tribes have required payments substantially in excess of amounts that we have paid in the
past for such rights-of-way. The ultimate cost of renewal of the rights-of-way for our transmission lines is therefore uncertain.
ITEM 3. LEGAL PROCEEDINGS
See “Business of Arizona Public Service Company — Environmental Matters” in Item 1 with regard to pending or threatened litigation and other
disputes.
See Note 3 for ACC and FERC-related matters.
See Note 11 for information regarding environmental matters, Superfund–related matters, matters related to a September 2011 power outage and a
New Mexico tax matter.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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