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Arizona Power Authority and Hoover Dam

Arizona Power Authority and Hoover Dam. APA RFP CONFERENCE CALL JANUARY 30, 2013 10:00 a.m. MST Toll-free dial-in #: 1-800-567-5900 Participant Code: 244363. Description of the Authority. Body corporate and politic established by the State of Arizona in 1944

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Arizona Power Authority and Hoover Dam

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  1. Arizona Power Authority andHoover Dam APA RFP CONFERENCE CALL JANUARY 30, 2013 10:00 a.m. MST Toll-free dial-in #: 1-800-567-5900 Participant Code: 244363

  2. Description of the Authority • Body corporate and politic established by the State of Arizona in 1944 • Created to acquire and market Hoover power and other renewable resources • 5 Commissioners appointed by the Governor to serve 6-year non-concurrent terms • Seasoned Board of Commissioners with extensive experience in Arizona power, water and agricultural issues • Executive Director with federal, state, municipal, co-operative and investor owned utility experience, thirteen years with Authority • Deputy Director with thirty years of utilities experience in planning, operations and management. • Experienced staff with extensive local utility knowledge and expertise • Regular monthly and special meetings for any necessary action

  3. Authority Power Contractors • Hoover power provided to 29 power contractors located throughout Arizona Electrical Districts Irrigation Districts Water Conservation Districts Power and Water Districts Municipalities • Hoover Capacity and Energy allocated to Contractors pursuant to 30-year take if delivered contracts terminating in 2017 • Central Arizona Water Conservation District – Largest APA Customer Responsible for management of state’s CAP water resources Delivery of 1.6 million acre feet of water in 2012 Hoover is lowest cost pumping energy resource Accounts for 30% of APA’s customer sales revenue • Salt River Project -2nd Largest Customer Provides scheduling services for Authority and customers Seasonal power banking arrangements Low cost supplemental power resource Accounts for 13.3% of APA’s customer sales revenue • Contractor Power Management Programs Power banking Monthly resource planning Resource exchange/pooling Supplemental power purchase on behalf of customers

  4. Benefits and Value of Hoover Dam to Southwest Desert • Purposes Flood Control Water Storage/Irrigation/Stability Improve Navigation and Regulation Power Generation • Water Supply is Critical to Southwest Economies Agriculture Municipal and Industrial Usage Environmental Concerns/MSCP • Storage Capacity Lake Mead (Hoover) – 27.4 MAF Total System above Hoover – 30.4 MAF Currently 50% Capacity at Mead • Annual Down Stream Water Entitlements Arizona – 1.9 to 2.8 MAF (1.9 MAF via CAP) California – 4.4 to 5.1 MAF Mexican Treaty – 1.5 to 1.7 MAF • Reliable Long-term Power Resource Continuous Operation Since 1936 17 Generating Units Firm Power Supply Contracts to 2017

  5. LEGEND Parker-Davis Intertie Desert Southwest Region - Intertie and Parker-Davis Facilities • The Intertie andParker-Davis Project Systems operate as a major transmission resource within the region and provide firm and non-firm service to over 48 public power, investor-owned and merchant power utilities. PARKER-DAVISANDINTERTIETRANSMISSIONSYSTEMS

  6. Flow Below Hoover Dam1906-2007

  7. Colorado River Basin –Lower Basin water availability is dependent on Upper Basin snow and precipitation

  8. Colorado River Reservoirs Lake Mead is the last major collection reservoir between the upper and lower Colorado River basins. All Colorado River water going to California and Arizona must pass through Lake Mead. Source: High Country News

  9. Colorado River FlowLee’s Ferry, AZ: 1906 – 2007

  10. April 2004 March 1998 March 2000 April 2007

  11. Lake Mead August Elevation1939 through 2007

  12. Lake Mead Monthly Elevation1993 through 2007

  13. Dominant Cycles on the Colorado River

  14. APA ESTIMATED 2017 PROCESS TIMELINE Updated 1/24/13

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