1. APPA Business & Financial September 2009 1 Time of Use and EZ-3 Price Plans A Presentation to APPA Business & Financial Conference Savannah, GA September 15, 2009

2. APPA Business & Financial September 2009 2 What is the Salt River Project ? ( and when will it be completed ? ) SRP is two entities  Salt River Valley Water Users’ Association  Salt River Project Agricultural Improvement and Power District

3. APPA Business & Financial September 2009 3 SRP Background SRP provides electricity to more than 900,000 retail customers in the Phoenix area SRP introduced residential Time of Use in 1980 SRP currently has over 200,000 residential TOU customers

4. APPA Business & Financial September 2009 4 EZ-3 Price Plan Highlights Approved by the SRP Board of Directors on March 17, 2008 Implemented on May 1, 2008 Marketing name is EZ-3 (tariff designation is E-20) 3,230 customers, as of August billing cycle

5. APPA Business & Financial September 2009 5 EZ-3 Price Plan Rationale Explore the efficacy of providing a stronger price signal during a fewer number of hours in the Summer and Summer Peak seasons Provide a more ‘customer friendly’ TOU design for current non-TOU customers who would save on the existing TOU plan, but choose not to switch

6. APPA Business & Financial September 2009 6 EZ-3 Price Plan Program Design On-Peak hours from 3 PM to 6 PM, M – F, during summer billing months Limited to 15,000 customers with smart meters Revenue neutral to current TOU plan during the summer, based on existing load shapes Non-TOU winter pricing, identical to the Basic Plan

7. APPA Business & Financial September 2009 7 EZ-3 vs. TOU Price Plans Summer On-Peak Pricing

8. Basic Plan to TOU Percentage of Total Daily Usage 8APPA Business & Financial September 2009

9. Basic Plan to EZ-3 Percentage of Total Daily Usage 9APPA Business & Financial September 2009

10. TOU to EZ-3 Percentage of Total Daily Usage 10APPA Business & Financial September 2009

11. 11 Questions