1. 1 HOW TO BE A LINK IN THE SUPPLY CHAIN Supplier Diversity and Development

2. 2 Arizona Public Service Subsidiary of Pinnacle West Capital Corporation (PNW) APS is the second-fastest growing utility in the country APS serves 1.3 million customers in 11 of Arizona’s 15 Counties Pinnacle West is the 3 rd largest Arizona headquartered company

3. 3 Liaison between the diverse businesses and business units to identify certified vendors Actively mentor strong diverse candidates for potential opportunities and facilitate introductions to Supply Chain Professionals Work with individual business units integrating strategies that include competitive sourcing opportunities for diverse suppliers Supplier Diversity & Development

4. 4 APS Supply Chain Transformation Overall Goals: Effective – leverage enterprise-wide resources Flexible – growth and future strategic decisions Efficient – consistent enterprise-wide services How does this affect Diverse Businesses? Greater transparency Increased opportunities to compete

5. 5 What Do We Purchase? Products We Buy: Arrestors Chemicals Electric Meters Electric Motors Fuses Pumps Regulators Steel Poles Switchgear Transformers Wire and Cable Wood Poles Services We Buy: Adm./Prof. / Tech. Building Maintenance Catering Demolition Electrical Maintenance Engine Repair Engineering Services Equipment Leasing Extermination Heavy Equipment Rental Radiator Repair Roofing Transmission & Distribution

6. 6 What Do We Purchase? Products We Buy: Advertising Specialty Items Appraisals Computers Equipment/Furniture HVAC Equipment Janitorial Supplies Office Supplies Oils & Lubricants Telecommunications Tools and Supplies Services We Buy: Adm./Prof. / Tech. Advertising Landscaping Building Maintenance Catering Courier Education Consultants Extermination Facility Management Services Financial Consultants Janitorial Services Corporate

7. 7 Products We Buy: Abrasives Bearings Building Supp. Chemicals Compressors Electronic Equipment Filters Fittings Fuel Gauges Services We Buy: Adm./Prof. / Tech. Craft / Union Demolition & Salvage Electrical Maintenance Engine Component Repair Engineering Services Equipment Leasing Extermination Heavy Equipment Rental Mechanical What Do We Purchase? Power Generation

8. 8 Diverse Supplier Standards Certified by an APS recognized third-party certification agency The best at what they do, have extensive experience Be a value added supplier Have sound financial history, adequate insurance, bonding capabilities Have a mixed customer base, no one customer is more than 20% of your business

9. 9 Contact Us http://www.pinnaclewest.com/supplierdiversity Jesús Borboa Supplier Diversity Coordinator Jesus.Borboa@aps.com 602-250-2340 (Office) 602-206-5858 (Cell)