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Press release from Business Wire

APS Meets Challenges of Record Monsoon Heat

<p class='bwalignc'> <i>High Reliability, Strong Palo Verde Operations Highlight Summer Performance</i> </p>

Tuesday, November 08, 2011

APS Meets Challenges of Record Monsoon Heat13:26 EST Tuesday, November 08, 2011 PHOENIX (Business Wire) -- During a summer that included the hottest monsoon season on record and a 61 percent increase in the number of transmission poles replaced due to storm activity, APS continued to provide its 1.1 million Arizona customers with a high level of reliability. According to the National Weather Service, the 2011 monsoon season, which extends from June 15 to Sept. 30, was the hottest on record in Phoenix, where approximately 80 percent of APS's customers reside. The season included a new record average temperature of 95 degrees, exceeding the previous record of 94.5 degrees set in 2007. It also established a new average maximum temperature of 106.7 degrees, passing the previous average high of 106.4 degrees established in 1989. In August alone, the Valley recorded six record high days. “A reliable supply of electricity is a necessity in the desert,” said APS President and Chief Operating Officer Don Robinson. “Our job is to have the electricity supply in place to ensure our customers have the ability to remain comfortable during Arizona's summer climate. We must also remain prepared for monsoon storms, wildfires and other challenges that may impact our ability to provide service.” Among APS's efforts to preserve and improve reliability and customer service: Storm Preparation and Reliability. Inclement weather presented a greater challenge in 2011 than in recent years. APS workers this season replaced more than 300 power poles around the state. Of those, 171 were on the transmission system (the larger equipment), compared with an average of 106 for the previous three years. APS remains a consistent top-quartile industry performer relative to outages per customer. The company projects that its customers will experience an average of 0.79 outages in 2011, compared to a 2010 industry median of 1.12 outages per customer. In addition, through the end of September, APS customers who experienced power outages saw restoration occur on average about 7 percent sooner in 2011 than in 2010. Strong Palo Verde Operations. The three units of the Palo Verde Nuclear Generating Station operated at 97.3 percent capacity factor this summer. An important measure of the plant's efficiency, this capacity factor produced the third-highest generation during the June-to-September period in the plant's history. Palo Verde has been the nation's largest power producer for the past 19 years. Keeping Pace with Customer Demand. In anticipation of meeting 2011 summer demand, APS constructed or rebuilt 100 miles of transmission lines and upgraded several substations around the state. These capital improvements helped APS manage a 2011 system peak of 7,075 MW on Aug. 24. New Technology Implementation. APS continues its implementation of advanced metering infrastructure. These meters provide APS customers with more current information about their usage so they can make informed decisions. The meters also have the potential to assist APS in providing a faster outage response to customers. Thus far, APS has installed more than 700,000 of the new meters across its service territory. 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) APSDamon Gross,