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Press release from Business Wire

APS Decommissioning Work at Childs-Irving Now Complete

<p class=' bwtextaligncenter'> <i>Removal Key to Restoring Riparian Habitat of Fossil Creek</i> </p>

Monday, July 26, 2010

APS Decommissioning Work at Childs-Irving Now Complete16:35 EDT Monday, July 26, 2010 STRAWBERRY, Ariz. (Business Wire) -- After more than five years of work, APS has completed decommissioning of the state's first commercial hydroelectric power plants, including the removal of plant turbines, more than 11 miles of water flumes and the man-made Fossil Creek Dam. The project's finish culminates an unprecedented 1999 decision by APS to close the historic Childs and Irving facilities and restore natural water flow to Fossil Creek after nearly a century of restricted flows. With the decommissioning work complete, the land where the historic facilities once resided will be turned over to the Coconino National Forest Service. Located in a remote area between Strawberry and Camp Verde, the Childs and Irving Power Plants were considered an engineering and logistical marvel when constructed a century ago. The small hydroelectric power plants provided 4 megawatts of energy essential to Arizona's growth, powering the booming mining operations in Jerome and the Bradshaw Mountains, and later energizing the growing communities of Prescott and Phoenix. The decision to close the facilities was made in concert with the Yavapai-Apache Nation, American Rivers, Arizona Riparian Council, Center for Biological Diversity, The Nature Conservancy and Northern Arizona Audubon Society. Despite the $11 million cost of decommissioning and lost revenue from plant operations, APS determined that restoring Fossil Creek to its natural flow outweighed the business benefits provided by the facility. “This was an unparalleled and exciting opportunity to return the area to pristine condition, creating an ecosystem where nature will continue to thrive,” said APS President and Chief Operating Officer Don Robinson. “This cooperative effort has enhanced the native riparian area and enriched an already popular recreation area that will be enjoyed for generations.” The restoration of Fossil Creek's full water flow provides one of the best opportunities for stream and riparian restoration in the Southwest, where more than 90 percent of wetland and riparian areas have been lost or severely degraded over the last century. In fact, Fossil Creek is one of the few remaining untouched springs in the West, providing a home to large numbers of native fish, riparian plants and terrestrial species. The springs provide a year-round flow of 43 cubic feet per second – equivalent to 28 million gallons per day. There are more than 300 species of flowering plants and ferns from 70-plus families. In addition, deciduous trees reside on the banks of the creek, supporting more than 175 known species of mammals, birds, reptiles, amphibians, and terrestrial invertebrates. About Childs and Irving The original construction of Childs and Irving required a labor force consisting of 600 men and 400 mules hauling more than 150 wagons. The 12 workers at the plant today helped remove an estimated 630 tons of flume wood, 1,200 tons of flume steel and pipe, 1,300 cubic yards of concrete, and the top 14 feet of the Fossil Creek Dam. Childs-Irving was recognized as the 11th National Historical Mechanical Engineering Landmark in 1976 by the American Society of Mechanical Engineers (ASME). The plants also were listed on the National Registrar of Historic Places, and featured in the documentary, A River Reborn. The Creek and adjacent plants were enjoyed by thousands of visitors annually, including former Supreme Court Justice Sandra Day O'Connor and Arizona Sens. John McCain and Jon Kyl. A few buildings remain at the Childs site for historical interpretation. APS also will place signs along Fossil Creek to signify where the historical landmarks used to rest. For the past 50 years, APS has managed the Childs-Irving Power Plant and its surrounding environs in a manner consistent with the company's commitment to the environment. The commitment APS has demonstrated in doing the right thing for Arizona is present in the full flows of the pristine waters of Fossil Creek, and lives on in the memory of Arizona's first commercial hydroelectric plants, Childs and Irving. For more information, visit APS, Arizona's largest and longest-serving electricity utility, serves more than 1.1 million customers in 11 of the state's 15 counties. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW). Photos/Multimedia Gallery Available: