APS 2015 Annual Report Download - page 29

Table of Contents
BUSINESS OF OTHER SUBSIDIARIES
Bright Canyon Energy
On July 31, 2014, Pinnacle West announced its creation of a wholly-owned subsidiary, BCE. BCE will focus on new growth
opportunities that leverage the Company’s core expertise in the electric energy industry. BCE’s first initiative is a 50/50 joint venture
with BHE U.S. Transmission LLC, a subsidiary of Berkshire Hathaway Energy Company. The joint venture, named TransCanyon, is
pursuing independent transmission opportunities within the eleven states that comprise the Western Electricity Coordinating Council,
excluding opportunities related to transmission service that would otherwise be provided under the tariffs of the retail service territories
of the venture partners’ utility affiliates. TransCanyon continues to pursue transmission development opportunities in the western
United States consistent with its strategy.
El Dorado
El Dorado owns minority interests in several energy-related investments and Arizona community-based ventures. El Dorado’s
short-term goal is to prudently realize the value of its existing investments. As of December 31, 2015, El Dorado had total assets of
approximately $9 million. El Dorado is not expected to contribute in any material way to our future financial performance, nor will it
require any material amounts of capital over the next three years.
OTHER INFORMATION
Pinnacle West, APS and El Dorado are all incorporated in the State of Arizona. BCE is incorporated in Delaware. Additional
information for each of these companies is provided below:
Principal Executive Office
Address
Year of
Incorporation
Approximate
Number of
Employees at
December 31, 2015
Pinnacle West
400 North Fifth Street
Phoenix, AZ 85004
1985
93
APS
400 North Fifth Street
P.O. Box 53999
Phoenix, AZ 85072-3999
1920
6,309
BCE
400 North Fifth Street
Phoenix, AZ 85004
2014
5
El Dorado
400 North Fifth Street
Phoenix, AZ 85004
1983
—
Total
6,407
The APS number includes employees at jointly-owned generating facilities (approximately 2,830 employees) for which APS
serves as the generating facility manager. Approximately 1,673 APS employees are union employees, represented by the International
Brotherhood of Electrical Workers ("IBEW") or the United Security Professionals of America ("USPA"). APS concluded negotiations
with IBEW representatives over the new collective bargaining agreement in April 2015, and the new agreement is in place until March
31, 2018. The contract provides an average wage increase of 2.0% for the first year, 2.25% for the second year and 3.0% for the third
year. The Company concluded negotiations with the USPA over the terms of a new collective bargaining agreement in May of 2014,
and the new agreement is in place until May 31, 2017.
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