APS Renewable Energy Overview and Highlights 2010 Southwest Renewable Energy Conference Santa Fe, New Mexico Greg Bernosky – Renewable Energy Planning and Regulatory Leader

Largest utility in Arizona 5 th largest U.S. service territory Serve 11 of 15 counties Peak demand exceeds 7,000 MWs Own and operate more than 5,000 miles of transmission lines APS Overview Phoenix APS Service Territory

Arizona’s Renewable Energy Standard (RES) – 15% of retail sales by 2025 – DE requirement incrementally escalates to 30% by APS Rate Case Settlement Agreement – Projected to be >10% of retail sales by 2015 (3.4 GWh) – Double the RES target for 2015 Arizona Energy Efficiency Standards – Savings equivalent to 22% of retail sales by 2020 Integrated Resource Planning Rule – 10-year plan filed every two years Regulatory Commitments

Cumulative Residential Activity

Active Projects and Contracts Existing Renewable Energy Resources Wind:190 MW Solar:6.6 MW (RG) / 43 MW (DE) Other:38 MW (Biomass, geothermal, biogas) Current Renewable Energy Contracts Wind:99 MW (first in-state project) Solar:>300 MW (Solana and AZ Sun) DE:total of >100 MW by end of 2010

2015 Renewable Mix by Technology Type

Summary Comments APS seeks to responsibly meet renewable commitments Programs are developed in collaboration with stakeholders to provide greater predictability, diversity, and transparency Renewable energy is an important part of a resource mix that includes energy efficiency, transmission, and other baseload resources Utility participation and investment is an important factor in future renewable energy growth

Additional Information: Greg Bernosky, AICP (602)