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Press release from Business Wire

Study: Palo Verde Contributes $1.8 Billion Annually to Arizona Economy

Thursday, January 20, 2011

Study: Palo Verde Contributes $1.8 Billion Annually to Arizona Economy16:23 EST Thursday, January 20, 2011 PHOENIX (Business Wire) -- The Palo Verde Nuclear Generating Station contributes $1.8 billion annually to the Arizona economy, according to an economic impact study released today by Arizona Public Service, the plant's operator and largest owner. The study, prepared by Phoenix-based consulting firm Applied Economics, quantifies the direct activity of the plant itself as well as economic multipliers created by local supplier purchases and by employee spending. The economic impact figure does not include the economic benefit of Palo Verde's carbon-free electricity or the plant's revenue benefits as the state's largest taxpayer. The findings were based on data from 2009. Study highlights include: Palo Verde's operations directly or indirectly support 8,800 jobs and $508.8 million of annual payroll in Arizona. This includes 2,900 employee and contractor jobs at the plant and indirect support for more than 5,800 jobs in the region. Palo Verde made Arizona purchases – mostly in the Phoenix metropolitan area – for equipment, supplies and services for an annual economic impact of $399.4 million. The study also notes that through their regular work with Palo Verde, many local suppliers have expanded their businesses, creating additional economic benefit. Palo Verde employees and contractors spend an estimated $300 million locally. In addition to local vendors, the plant's two annual 30 to 60 day refueling outages bring in hundreds of out-of-state contractors who reside in local hotels and utilize local services. Palo Verde employees log more than 5,000 volunteer hours a year in Arizona communities. “As Palo Verde safely and efficiently generates electricity for the long term, it will continue to create economic benefit to the state of Arizona,” said APS Executive Vice President and Chief Nuclear Officer Randy Edington. “With the recent completion of a long-term water contract with five Valley cities, recent replacement of major components in all three units, and the plant's relicensing efforts, we are taking steps to ensure this significant economic impact continues through at least the middle of this century.” “Palo Verde is a close second only to Luke Air Force Base in its economic impact for the West Valley. However, because it is owned by multiple Southwest utilities, Palo Verde's costs are largely the responsibility of out-of-state entities while the economic benefits from the plant remain here in Arizona,” said Applied Economics Partner Sarah Murley, who prepared the report. Palo Verde is jointly owned by APS, Salt River Project, Southern California Edison Co., El Paso Electric Co, Public Service Co. of New Mexico, Southern California Public Power Authority and the Los Angeles Department of Water & Power. 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). Arizona Public ServiceMedia Contacts:Dan Wool, 602-250-3127Jim McDonald, 602-321-3738 (cell)Analyst Contact:Rebecca Hickman, 602-250-5668Website: