Helping Government Go Solar 1 Steven Eddy, AICP Government Relations August 21, 2014

TEP/UniSource Energy Services 2  Tucson Electric Power serves 414,000 customers in Tucson metropolitan area  UniSource Energy Services serves 243,000 customers in northern and southern Arizona — UNS Gas: 150,000 — UNS Electric: 93,000  Parent company UNS Energy acquired in August 2014 by Fortis, largest investor-owned utility company in Canada

Renewable Energy Leadership 3  Springerville Solar System — Once ranked as the world’s most productive grid-tied solar array  TEP named Solar Electric Power Association (SEPA) Investor Owned Utility of the Year in 2012  Innovative programs — Bright Tucson Community Solar — Fixed-price (proposed for 2015 – stay tuned)

Bright Tucson Community Solar Program 4  Flexible, low-cost plan  Customers buy “blocks” of solar energy generated by local utility-scale photovoltaic systems  Program rate replaces fossil fuel charges, fixed for 20 years  Rate initially higher, but savings can be realized over time as traditional energy charges increase  Discounted rates available for bulk government buyers

City of Tucson 5  10 MW of Community Solar capacity — Contract approved in 2013, locked in before rate increase  Source: 35-MW NRG array in Avra Valley — On Tucson Water land, generating lease revenue  Usage reflected on multiple accounts

Pima County 6  5 MW of Community Solar capacity — Approved in 2012  Source: 5 MW Prairie Fire system near Valencia/Kolb  Usage reflected on multiple accounts

Fort Huachuca U.S. Army Base 7  TEP to build, own and operate 18 MW array on Sierra Vista base  Will provide system output to Fort Huachuca under existing rates  Helping U.S. Army achieve its renewable energy goals at no up-front cost  TEP ownership helps avoid interconnection delays, permitting pitfalls  Coming online in 2014