MEC October, 2011 Tammy McLeod “Got Grid?” MEC October, 2011 Tammy McLeod

Challenges

Regulatory Uncertainty Chairman Gary Pierce Commissioner Paul Newman Commissioner Sandra Kennedy Commissioner Brenda Burns Commissioner Bob Stump

Smart Meter Smackdown 700,000 AMI meters deployed successfully Small outcropping of concerns

Rate Pressure in a Down Economy APS Capital Expenditures ($ Millions) $1,340 $952 $962

Shifting Expectations

Interaction with Others

Mobile Devices

Expectations that are not new: We know the power is out. We can pinpoint an outage. We can restore from a button on my desk.

Third Parties

Energy Efficiency- Market Landscape Efficiency and energy information services are the new frontier Offerings offering Home Energy Services; energy audits by Geek Squad; appliance recycling; sell efficient appliances; control systems; “leverage the truck roll” Home Energy Solutions; home energy audits through Home Performance with ENERGY STAR program; offered through Blue Climate Crew DR service provider; leverage existing relationships with business customers; specialize in building commissioning PowerMeter allows customer to view energy consumption on-line; wireless appliance controls using smart phone; recently pulled off market tool to monitor home energy use and provide savings recommendations; recently pulled off market on-line access to household energy use and budgeting tips home energy use monitoring home energy management systems and controls on-line energy audit and rebate finder

Intermediaries Regulatory pressure to engage Beware of sheep’s clothing Look to others with experience

National Town Hall Federal appetite for programs Vendor appetite for market Utility seen as the impediment

Strategy

Community Power Partners

Community Partner Academy April ‘09 Pilot Session The Hon. Fernando Shipley – Mayor of Globe Ms. Margie Beach – Communications Dir, Salt River Materials Group Mr. Rich Bowden – VP, Sustainability, NAU Ms. Julie Engel, Exec Dir, Greater Yuma Economic Development Foundation Mr. Jack Lunsford – Exec Dir, WESTMARC Others Jeff Vine, Plant Manager, Johnson Controls, Yuma The Hon. Bob Littlefield – Councilman, City of Scottsdale The Hon. Lucy Mason – Arizona House of Representative, District 1 Mr. Himanshu Patel – Town Manager, Town of Florence The Hon. Thomas Thurman – Supervisor Yavapai County, District 2 Ms. Cynthia Zwick – Ex Dir, Arizona Community Action Assoc. President, Suns Upcoming

Closing Thoughts Data Insurance Look to Others for Inspiration

Got Grid!