1 Crisis Management / Emergency Management Overview

SRP Service Territory Phoenix Peoria Glendale Scottsdale Mesa Tempe Gilbert Chandler Tolleson Litchfield Park Youngtown Surprise Goodyear Avondale Apache Junction Queen Creek Fountain Hills Paradise Valley

3 SRP Crisis Management Overview SRP operates many power and water facilities that in today’s post-September 11 environment require increased protective measures. SRP has a number of contingency plans in place to address these challenges. Our plans are tested on a regular basis, and refined based on lessons learned from our drills. Our electric system has been built with planned redundancies, providing more than one way to deliver energy to our customers. Still outages occur due to violent storms, misguided drivers damaging our structures and equipment failures.

4 SRP Crisis Management Overview Cont’d. SRP’s water management responsibilities range from the reservoirs on the Salt and Verde rivers, to the 131-mile canal system in metropolitan Phoenix. Weather plays an integral role in the challenges SRP faces in supplying water to a thirsty Valley. SRP has an information technology disaster recovery plan, complete with trained recovery teams and “hot-site” agreements to remotely restore electronic data and systems SRP’s Crisis Management Team has developed the means for the company to manage almost any emergency situation.

5 Business Continuity and Emergency Management New division of Risk Management created Coordinate corporate emergency preparedness and response Assist in risk analysis and plan development Serve as a SRP liaison to governmental agencies regarding emergency preparedness Support the CMT Document emergency plan incidents and drills

6 Overarching Emergency Management Plan Defines authority and responsibility for implementing Emergency Management Activities Management reporting during Crisis situations Specifies NIMS-ICS system utilization Defines Crisis Management Team authority, activation, communication directives and utilization Defines overall corporate response, communication and recovery activities SRP Crisis Management Plan

7 Crisis Management Team Risk Management…..Chairman Operations Support Services Human Resources Services Water Engineering & Transmission Information Systems Electric System O&M Communication & Internet Media Relations System Operations Customer Services-Power Power Generation Legal & Regulatory Affairs Supply and Trading

8 Crisis Management Team Goals  Protect employee and public safety  Get back in business as soon as possible  Reduce anxiety levels  Minimize loss or extent of damage  Intelligent planning and plans  Protect positive corporate image

9 Responsibilities  Ensure adequate resources are available for the immediate and long-term response to the event  Direct/oversee the development of new emergency plans where needed  Assure the adequacy and regular review of existing plans Crisis Management Team

10 Crisis Management Team Responsibilities (cont’d)  Maintain a high level of response capability by periodically exercising plans  Conduct after-incident reviews to evaluate overall response to, and long-term consequences to an event. Make continuous improvement  Facilitate effective communications with media, public, employees and senior management

11 Corporate Emergency Operations Centers (EOC) & Media Operations Center Corporate & Backup EOC have been prepared Media Operations Center Adjacent to Corporate EOC The EOC is equipped with computers, communication systems, plans, maps and other items necessary to operate effectively Corporate Plans allow for activation of command centers when appropriate

12 Building a Plan

13 Business Impact Analysis Research critical business processes Review all types of threats to business functions Review impact of loss of this business function Plan to mitigate the threats

14 Hazard Vulnerability Analysis Site specific Analyze the threats  Natural threats – Weather, flood, earthquake  Terrorism – Security threats  Transportation issues  Hazardous materials  Personnel issues – Flu, work stoppage  Fire  Cyber

15 NIMS-ICS National standard used by most emergency agencies Federal standard Proven system Works in all situations with various agencies Flexible – Used for small and large incidents

16 ICS Organization & Operations Policy Group (GMS)  Determining overall incident goals  Receives regular briefings during incidents  Approves statements Incident Command (CMT)  Coordinates response activities  Coordinates information flow  Qualified to work with first responders and multi- agency coordination systems

17 Regulations and Mutual Aid Ensure compliance with NERC, NIMS, OSHA and other regulatory agencies when writing plans Work with community agencies to coordinate response SRP has developed mutual aid agreements with other utilities as well as with area fire and EMS agencies for response to SRP facilities

18 Corporate Crisis Management Plans Presently Developed 24 Corporate Plans Range From Bomb Threat to Storm Operations CMT Manages & Updates these plans All Plans Link To Crisis Management Plan and Crisis Communication Plan

19 Conclusion SRP’s Emergency Management and coordinated planning process is well established Threats and Risks have been analyzed Plans have been developed and are revised to respond to the identified risks The CMT is actively involved in all aspects of planning, drills and response This program has the strong support of SRP management