Arizona Power Authority Presentation2017 Allocation of Hoover Power

Donovan L. Neese, PE, MBA

SuperintendentOcotber 9, 2012

Formed in 1927 ~44,000 Acres

Board of DirectorsW. Bruce Heiden—PresidentK. C. GinggDwight B. Leister

34 Employees

Customer Profile Information 167 Electric Meters District Facilities (Pumps) - 59% Irrigation Pumping – 51%Other Facilities – 8%

Private Irrigation Pumping – 8% Dairy – 26% Cotton Gins – 6% Other – 1%

2012 Peak Demand (17MW) 7 MW (SRP Territory) 10 MW (APS Territory)

Arizona Power Authority Hoover A Capacity & Energy3.100 MW (Maximum with Hoover Firming Capacity),10,596 MWh (Contract Entitlement)

Salt Lake City Area/Integrated Project Capacity(CRSP)• 4.876 MW (Summer Season)• 8.873 MWh (Summer Season)

Transmission & Distribution ServicesAgreements (APS & SRP)

Peak Demand (17MW) less Long Term FederalHydro Contracts (8MW) = NEED ~9MW

Water Deliveries ~ 131,000 ac-ftWater Rate $40/AFApproximately 100 Groundwater WellsCrops

• Cotton• Alfalfa• Corn• Grain

Loss of Hoover power could result in anadditional cost $15-$20/AF to RID• SRP - $12/AF• BWCDD - $19/AF

Agricultural Commodity Margins

1. What resources would you seek?a) Renewal of current proportion of all APA Hoover A Consistent with CA Renewals Consistent with NV Imminent Renewals

b) Prefer a 50 year term (Reducing Allocation Expenses)

2. What do you plan to do with the Hoover power allocated to yoursystem?

a) Continue operation of an irrigation district.b) Serve Agriculturally Based Economies.

3. How much Hoover power would you require?a) Could use an additional 9 MW;b) Currently Purchase: 3.1 MWc) 95% Proportion: 2.95 MW

4. How do you think the Hoover power should be allocated?a) Renew all existing customer contracts at current proportions of all Hoover A

and B.b) Allocate Hoover D among new entrants according to agriculture/water needs.