WINTER PREPAREDNESS ARIZONA WINTER PREPAREDNESS ARIZONA

WINTER PREPAREDNESS ARIZONA SOUTHWEST GAS SERVICE TERRITORY Over 1 million customers served 909 employees 357 miles gas transmission pipelines 19,200 miles gas distribution main 12,900 miles gas distribution services 2

WINTER PREPAREDNESS ARIZONA Central Arizona Division 5.7 miles of 4, 6, 8 and 12-inch diameter pipelines Southern Arizona Division 6.6 miles of 4, 6, 8 and 12-inch diameter pipelines 3 SYSTEM PLANNING

WINTER PREPAREDNESS ARIZONA Extreme Peak Day Demand Normal Demand Peaking Supplies with Demand Charges Price Stability Supplies Nov Dec Sep Jan Feb Mar Apr Oct May Jun Jul Aug GAS SUPPLY RESOURCES

WINTER PREPAREDNESS ARIZONA *Winter strip prices October 7, 2014 Transwestern El Paso INTERSTATE PIPELINES $3.96 / Dth* $3.93 / Dth* $4.24 / Dth

WINTER PREPAREDNESS ARIZONA Weighted Average Price 6 ARIZONA PRICE STABILITY PROGRAM

WINTER PREPAREDNESS ARIZONA Waha/Gramma Ridge Located in west Texas 600,000 Dths 60,000 Dths/day of firm withdrawal rights Operational needs and imbalance management Waha Hub Storage 7 ARIZONA STORAGE - ENSTOR

WINTER PREPAREDNESS ARIZONA 8 MONTHLY GAS COST RATE

WINTER PREPAREDNESS ARIZONA 2009/102011/122012/132013/142014/15 Est.2010/11 AVERAGE WINTER BILL

WINTER PREPAREDNESS ARIZONA QUESTIONS