POSSIBILITIES POWERED BY CHANGE

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1 BRINGING YOU THE FUTURE OF ENERGY

2 POSSIBILITIES POWERED BY CHANGE Technology is changing the way you use energy and the way we deliver it. We are driving new possibilities for our customers, like energy that s cleaner, smarter and more reliable. This, in turn, powers new families, new businesses, new jobs and new opportunities. Together, we re building a brighter future for Arizona. 2 3

3 RELIABLE ENERGY YOU CAN COUNT ON Schools, homes, data centers, hospitals and traffic lights your world runs on reliable energy and we re modernizing the grid to meet your needs. We are investing in advanced technologies that enhance our systems strength and resilience technologies such as state-of-the-art equipment that can predict and isolate outages before they happen, and microgrids that ensure backup power for seamless operations. And when severe weather hits, our experienced crews are ready to restore your power safely and efficiently. That s why we are ranked among the top energy companies in the nation for reliable service. In 2015, we invested $ 1 BILLION in Arizona s power grid to better serve our customers 4 5

4 SHAPING THE FUTURE WITH CLEAN ENERGY Your energy is being generated in increasingly clean ways. The Palo Verde Nuclear Generating Station is already the largest source of carbon-free electricity in the nation. We are also transitioning from older coal units to more efficient natural-gas plants. More than two-thirds of the water we use to generate energy comes from reclaimed water sources. Moving forward, we will meet growing energy needs with zero- to low-emission resources to create a sustainable future for all of Arizona. 47% 7 of the electricity we provide comes from carbon-free resources 6 7

5 9 APS grid-scale solar plants provide clean renewable energy to Arizona DRIVING ARIZONA S SOLAR LEADERSHIP Since 1954, we ve advanced solar energy throughout the state. Our efforts continue today with programs like APS Solar Partner, an innovative study that brings rooftop solar to customers and supports the long-term growth of solar energy. We ve also helped more than 300 schools go solar and introduced solar curriculum into the classroom. Today, we generate more solar energy than any utility outside California because we know solar has an integral role in Arizona s energy future. 8 9

6 Our customers saved over $ 60 MILLION on their energy bills through energy-efficiency actions in 2015 PROVIDING YOU WITH OPTIONS Your energy needs are changing and we offer options that can save you time and money. Our mobile app helps you manage your energy use from the palm of your hand. Text and alerts keep you informed about outages and account updates. And we offer energy-efficiency programs, tips and tools that can help you lower your bill. For our business customers, programs like Solutions for Business help cover the cost of energy-saving upgrades and reduce operating costs

7 POWERING ARIZONA S PROGRESS Our story is Arizona s story. We power our state s growth by supporting 39,200 jobs and paying more than $ 500 million in state and local taxes. We promote growth and opportunity by spending $ 300 million every year with diverse businesses. It all adds up to $ 3.4 billion in annual economic impact in Arizona. We are a driving force of our state s economy and a vital member of the communities we serve. We purchase $ 1 BILLION annually in goods and services from Arizona businesses 12 13

8 We donated more than $ 10 MILLION last year to charitable causes GIVING FOR WHERE WE RE GOING Last year alone, our employees dedicated more than 127,000 volunteer hours and we donated $10.6 million to charitable organizations directly impacting families all across Arizona. Nearly $3 million of those contributions came from the APS Foundation, which focuses on STEM (science, technology, engineering and math) programs that benefit students and teachers. We are also one of the state s largest and most active supporters of veterans. They bring experience and leadership to the workforce one in five APS employees has served or is currently serving our country

9 OUR STORY For more than 130 years, we have powered Arizona s growth, prosperity and innovation. Today, we provide 2.7 million people with safe, reliable and increasingly clean energy. Our 6,400 employees are dedicated to ensuring a bright energy future for Arizona. aps.com RR