APS/SRP Stakeholder Meeting For Transmission Planning FERC Order 890 OATT Attachment K (APS Attachment E) APS Transmission Planning SRP Transmission Planning Phoenix, Arizona June 24, 2010

APS & SRP 2nd Quarter Stakeholder Meeting Agenda Welcome, Introductions, and Meeting Overview Status of Action Items-12/18/09 Joint APS/SRP 4th Quarter Public Planning Meeting APS Planning APS Planning Calendar & Methodology APS Filed Ten-Year Plan and Renewable Transmission Projects Review 2010 Study Assumptions Interconnection Requests and Transmission Service Requests Requests received for Economic Planning Studies Stakeholders invited to submit requests for additional transmission studies Comments/Questions SRP Planning SRP Planning Calendar & Methodology SRP Filed Ten-Year Plan Review SRP Transmission Projects for Renewable Generation Requests Received for Economic Planning Studies Current Activities Update Stakeholder Questions/Comments Action Items June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 2

APS & SRP 2nd Quarter Stakeholder Meeting Welcome Introductions Meeting Overview June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

APS & SRP 2nd Quarter Stakeholder Meeting 2. Status of Action Items Request the Operating Agent for JPP (Joint Participation Projects) to include the other owners on OASIS. Interconnection Queues are FERC mandated documents and do not include owners for JPPs Request APS and SRP to explore opportunities to consolidate or coordinate the Order 890 Stakeholder meetings with other scheduled meetings. Ongoing June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

3.a. APS Planning Calendar & Methodology WECC/TEPPC/WestConnect Planning Calendar APS Planning Calendar Planning Process/Methodology June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 5

APS & SRP 2nd Quarter Stakeholder Meeting June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 6 6

APS & SRP 2nd Quarter Stakeholder Meeting 7 June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

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3.b. APS Ten Year Plan Projects 2010-2019 Transmission Plan Filed on Jan. 29, 2010 June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 9

APS & SRP 2nd Quarter Stakeholder Meeting 2009 (In-Service): Dugas & Sugarloaf 500/69kV substations Milligan 230/69kV substation 2010: Morgan 500/230kV substation (In-Service) Morgan-Pinnacle Peak 500kV line 2012: Delany-Palo Verde 500kV line Flagstaff 345/69kV substation TS12 230/69kV substation 2013: Mazatzal 345/69kV substation 2014: Delany-Sun Valley 500kV line Hassayampa-N.Gila 500kV line D. Basin-Pinal Central 230kV line Pinal Central-Sundance 230kV line Bagdad 115kV relocation 2016: Sun Valley-Morgan 500kV line June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

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APS & SRP 2nd Quarter Stakeholder Meeting 2010: Morgan-Raceway 230kV (in-service) 2011: Raceway-Pinnacle Peak 230kV 2014: Scatter Wash 230/69kV substation Sun Valley-Trilby Wash 230kV 2015: Trilby Wash-Palm Valley 230kV June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 12

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APS & SRP 2nd Quarter Stakeholder Meeting 2014: Palo Verde Hub-North Gila 500kV #2 line North Gila-TS8 230kV line June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 14 14

Project Timing Changes Project Name Previous in-service date New in-service date Bagdad 115kV line relocation 2011 2014 Scatter Wash 230/69kV substation 2012 Desert Basin-Pinal Central 230kV line 2013 Sundance-Pinal Central 230kV line * It should be noted that in-service dates shown in this table are based on load projects, not potential interconnections. New generation interconnections may accelerate the in-service date. June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

3.b. APS Planning – Transmission Projects for Renewable Generation 1) Palo Verde to Delany 500kV 2) Palo Verde to North Gila 500kV 3A) Palo Verde to Valley Load (Liberty) 3B) Gila Bend to Valley Load (Liberty) 4) Delany to Blythe 500kV June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

APS & SRP 2nd Quarter Stakeholder Meeting June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

APS & SRP 2nd Quarter Stakeholder Meeting 3.c. 2010/2011 Study Assumptions Coordinated Base Cases (Seed Cases) 2012 - SATS 2012 case 2015 - WECC 2015HS 2020 - 2020 WestConnect case 69kV transmission models incorporated Most up-to-date forecasts for peak summer loads June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

3.c. 2009 NERC/WECC Reliability Studies Summer Peak cases TPL-001 & TPL-002 Thermal analysis (All 10 years) Post-Transient (All 10 years) Transient Stability (2013 & 2018) TPL-003 & TPL-004 (2013 & 2018) Maximum Load Serving Capability for Phx & Yuma (All 10 years) TPL-001 & TPL-002 Thermal and Post Transient Winter Load cases (2013 & 2019 WECC cases) Thermal, Transient Stability, & Post Transient TPL-001 thru TPL-004 June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 19

APS & SRP 2nd Quarter Stakeholder Meeting 2009 NERC/WECC Studies June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 20 20 20

APS & SRP 2nd Quarter Stakeholder Meeting 2009 NERC/WECC Studies June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 21 21 21

3.c. 2010 NERC/WECC Reliability Studies Summer Peak cases TPL-001 & TPL-002 Thermal analysis (All 10 years) Post-Transient (All 10 years) Transient Stability (2013 & 2019) TPL-003 & TPL-004 (2013 & 2019) Maximum Load Serving Capability for Phx & Yuma (All 10 years) TPL-001 & TPL-002 Thermal and Post Transient Winter Load cases (cases unknown at this time) Thermal, Transient Stability, & Post Transient TPL-001 thru TPL-004 June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 22 22

3.d. Interconnection & Study Requests Generation Interconnection requests APS OASIS contains Generation Interconnection Queue http://www.oatioasis.com/azps/index.html 30 Solar projects - 8336 MW 7 Wind projects - 2835 MW 1 Others (Coal, NG, Biomass, etc.) - 1400 MW 4 Transmission Interconnection Requests Currently no Transmission Service Requests under Study Currently no Economic Study Requests June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

3.e&f. Stakeholder Study Requests Study requests can be taken at today’s meeting Study requests can be made at any time to: apstransmission@aps.com June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

APS & SRP 2nd Quarter Stakeholder Meeting 3.g. Comments & Question Comments?????? Questions!!!!!!!!!! June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 25

4.a SRP Planning - Calendar & Methodology WECC/TEPPC/SWAT Planning Calendar SRP Planning Calendar Assumptions and Methodology Types of Studies Performed Proposed 2010–2019 Ten Year Plan June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 26

APS & SRP 2nd Quarter Stakeholder Meeting June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 27 27

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4.a 2010-2019 Study Assumptions/Methodology Coordinated Base Cases (Seed Cases) NERC Compliance Studies 2011 – APS/SRP 2011 coordinated case 2016 – APS/SRP 2016 coordinated case BTA Studies 2019 - CATS-EHV 2018 coordinated case 69kV transmission models incorporated Most up-to-date forecasts for peak summer loads June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 30

4.a 2010-2019 Study Assumptions/Methodology NERC Compliance Studies Cases 2011 & 2016 Summer Peak & Offpeak Cases 2011 & 2016 Simultaneous Import Limit (SIL) & Maximum Load Serving Capability (MLSC) Cases Summer Peak & Offpeak cases Thermal analysis Post-Transient Transient Stability June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 31

4.a 2010-2019 Study Assumptions/Methodology SIL & MLSC Cases (Phx) Thermal and Post-Transient June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 32

APS & SRP 2nd Quarter Stakeholder Meeting Planning Methodology NERC STANDARD Type of Studies Completed TPL-001 (N-0) Thermal Transient Stability Post-transient 2011 Peak X Offpeak 2016 All-in TPL-002 (N-1) SIL MLSC TPL-003 (N-2) Bus outages Contingency of towers Stuck breaker June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

APS & SRP 2nd Quarter Stakeholder Meeting Planning Methodology NERC STANDARD Type of Studies Completed TPL-003 (N-2) Thermal Transient Stability Post-transient 2011 Common Corridor X N-1-1 2016 Bus outages Contingency of towers Stuck breaker TPL-004 (N-X) Substations with generation Common Corridor/Substation without generation Note: TPL-003 studies were performed on Peak & Off-Peak cases June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

4.b SRP Ten Year Plan Projects 2010-2019 Filed June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting 35

place holder for CATS only, SALT RIVER PROJECT 500kV SYSTEM NAVAJO GS MOENKOPI YAVAPAI CHOLLA (APS) MARKETPLACE DUGAS (APS) MEAD MORGAN(APS) 2010 Sun Valley (APS) 2014 SUGARLOAF (APS) McCULLOUGH 2010 2016 NEVADA 2014 WESTWING PINNACLE PEAK (APS) 2010 DELANY 2012 CORONADO PALO VERDE RUDD TBD HASSAYAMPA TBD JOJOBA RS20 TBD KYRENE TBD TBD 2014 2011 BROWNING SILVER KING SANTA ROSA 2014 ABEL 2020 TBD PINAL WEST 2014 2011 2020 (TBD, place holder for CATS only, no current SRP plans) 2014 PINAL CENTRAL 2014 NORTH GILA (APS) SUNZIA (SPG) SAGUARO 2014 Central New Mexico 2013/2014 TORTOLITA (TEP) EXISTING 500kV SUBSTATION EXISTING LINES SALT RIVER PROJECT 500kV SYSTEM June 24, 2010 FUTURE 500kV SUBSTATION FUTURE LINES APS & SRP 2nd Quarter Stakeholder Meeting

SALT RIVER PROJECT 500kV SYSTEM 2011: Browning-Pinal Central 500kV (it will be energized as Randolph-Browning 230kV until 2014) 2014: Delany-Sun Valley 500kV Hassayampa-N.Gila 500kV line Pinal West-Pinal Central 500kV Pinal Central 500/230kV substation 2016: Sun Valley-Morgan 500kV 2020: Pinal Central-Abel #2 500kV SALT RIVER PROJECT 500kV SYSTEM June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

SALT RIVER PROJECT EASTERN 230kV SYSTEM PINNACLE PEAK THUNDERSTONE GOLDFIELD SALT RIVER PROJECT EASTERN 230kV SYSTEM BRANDOW TBD TBD ROGERS TBD TBD BROWNING SANTAN To CORBELL TBD RS17 TBD 2018 DINOSAUR 2017 RS21 To SCHRADER TBD TBD TBD RS24 TO SILVER KING 2018 TBD 2018 2011 RS20 TO SILVER KING TBD LOOP IN TBD 2017 TBD TBD ABEL/RS22 RS23 2011 TBD DOUBLE CIRCUIT, PHASE TIED LINE 2011 EXISTING 230kV CIRCUIT RANDOLPH SWITCHYARD FUTURE 230kV CIRCUIT DESERT BASIN 2011 2014 EXISTING 230kV SUBSTATIONS 2014 2014 PINAL CENTRAL 2014 FUTURE 230kV SUBSTATIONS GENERATING STATION CATSHV03 TBD June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

SALT RIVER PROJECT EASTERN 230kV SYSTEM 2011: Dinosaur-Abel-Randolph 230kV 2014: Desert Basin-Pinal Central 230kV line Pinal Central - Randolph 230kV line RS26 230/69kV substation 2017: Abel-Schrader 230kV 2018: Abel-Santan 230kV RS24 230/69kV substation SALT RIVER PROJECT EASTERN 230kV SYSTEM June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

SALT RIVER PROJECT WESTERN 230kV SYSTEM TO W.A.P.A. PINNACLE PEAK TO APS PINNACLE PEAK SRP PINNACLE PEAK W.A.P.A. WESTWING TBD RS26 DEER VALLEY (APS) 2014 PAPAGO RS25 W.A.P.A. TBD W.A.P.A. ALEXANDER AGUA FRIA BRANDOW THUNDERSTONE WHITE TANKS To GOLDFIELD TBD TBD ROGERS RUDD WARD TBD ORME TO APS OCOTILLO LIBERTY (W.A.P.A.) SANTAN CORBELL To BROWNING ANDERSON KYRENE DOUBLE CIRCUIT, PHASE TIED LINE KNOX SCHRADER RS17 EXISTING 230kV CIRCUIT TBD FUTURE 230kV CIRCUIT To RS24 EXISTING 230kV SUBSTATIONS FUTURE 230kV SUBSTATIONS June 24, 2010 GENERATING STATION APS & SRP 2nd Quarter Stakeholder Meeting

SALT RIVER PROJECT EASTERN MINING AREA SYSTEM ROOSEVELT MORMON FLAT HORSE MESA STEWART MOUNTAIN FRAZIER TO SILVER KING 500kV SILVER KING 230 TBD (230kV) PINTO VALLEY GOLDFIELD TBD MIAMI MOONSHINE 230kV 115kV PINAL TO THUNDERSTONE CARLOTTA CARREL SPURLOCK ELLISON TBD (230kV) TRASK OAK FLAT RS20 TBD (230kV) SEE DETAIL 230kV TBD SUPERIOR KNOLL RAY DETAIL SUPERIOR 230KV 115KV MORRIS KEARNY TBD HAYDEN BONNEYBROOK (APS) NEW HAYDEN TBD ASARC0 COOLIDGE (W.A.P.A.) TO APACHE (AEPCO) FUTURE SUBSTATION FUTURE LINE SALT RIVER PROJECT EASTERN MINING AREA SYSTEM EXISTING SUBSTATION EXISTING LINE June 24, 2010 GENERATING STATION APS & SRP 2nd Quarter Stakeholder Meeting

Electric System Additions/Upgrades Equipment Year Coronado #2 500/345kV transformer Completed Cholla-Saguaro 500kV Series Capacitor @ Cholla replacement 2011 Kyrene 3rd 500/230kV transformer Abel 1st 230/69kV transformer Rudd 1st 230/69kV transformer 2013 Schrader 3rd 230/69kV transformer Pinal Central 1st & 2nd 500/230kV transformers 2014 RS-24 1st 230/69kV transformer 2018 June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

APS & SRP 2nd Quarter Stakeholder Meeting Summary Status Project I/S Status Study Forum Pinal West – Browning 500kV 2011, 2014 Des/ ROW Yes CATS/CATS HV/WATS/SEV E&O/ Desert Basin – Pinal Central 230kV 2014 Des Yes CATS HV/WECC SRWG, TSS RS24 230kV Transmission Project 2018 Siting Yes RS26 Transmission Project 2014 Pre Siting Yes June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

SRP Changes from 2009 to 2010 500kV Projects 230kV Projects 2010 Morgan – Pinnacle Peak Formerly Raceway – Pinnacle Peak 2013/2014 SunZia Project Delayed from 2013 2014 Pinal West – Pinal Central Delayed from 2013 2014 Tortolita – Pinal Central 230kV Projects 2014 Desert Basin – Pinal Central 230kV 2017/2018 RS24 230kV Transmission Project Delayed from 2013 June 24, 2010

4.c. SRP Planning – Transmission Projects for Renewable Generation Pinal West – Pinal Central 500kV line Pinal Central – Tortolita 500kV line Palo Verde – Delany 500kV line June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

APS & SRP 2nd Quarter Stakeholder Meeting June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

SRP Planning - Study Requests Generation Interconnection Requests Transmission Interconnection Requests Transmission Service Requests Economic Study Requests June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

4.d. SRP Planning – Study Requests Generation Interconnection Requests listed below are for SRP solely owned transmission: 4 Natural Gas projects - 2516 MW 2 Wind projects - 900 MW June 24, 2010 The joint interconnection requests are listed on SRP OASIS website @ http://www.oatioasis.com/SRP/index.html APS & SRP 2nd Quarter Stakeholder Meeting

4.d. SRP Planning - Study Requests Currently there are no Transmission Interconnection Requests under study June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

4.d. SRP Planning - Study Requests Currently there are no Transmission Service Requests under study June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

4.e. SRP Planning - Study Requests Currently there are no Economic Study Requests June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

4.f. Stakeholders Requests SRP invites Stakeholders to submit request for additional transmission studies June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

4.g. SRP Planning – Comments & Questions Stakeholder comments/questions on 2010 Study Results or 2011 Study Requests Requests can be made at any time to: SRP.TransmissionPlanning@srpnet.com June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

5. Current Activities Updates NERC Compliance Reliability Standard MOD-029 – Rated System Path Methodology June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

6. Stakeholder Questions and Comments Open discussion Reference Material WestConnect – http://www.westconnect.com/documents_results.php?categoryid=85 APS OASIS – http://www.oatioasis.com/azps/index.html SRP OASIS – http://www.oatioasis.com/srp/index.html June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting

APS & SRP 2nd Quarter Stakeholder Meeting 7. Action Items Review any action items identified for follow up Information addressing action items to be posted on APS and/or SRP OASIS and WestConnect website June 24, 2010 APS & SRP 2nd Quarter Stakeholder Meeting