POSSIBILITIESPOWEREDBY CHANGETechnology is changing the way you use energyand the way we deliver it. We are driving newpossibilities for our customers, like energy that’scleaner, smarter and more reliable. This, in turn,powers new families, new businesses, new jobsand new opportunities. Together, we’re buildinga brighter future for Arizona.23

RELIABLEENERGY YOUCAN COUNT ONSchools, homes, data centers, hospitals andtraffic lights your world runs on reliable energyand we’re modernizing the grid to meet yourneeds. We are investing in advanced technologiesthat enhance our systems’ strength and resilience— technologies such as state-of-the-art equipmentthat can predict and isolate outages before theyhappen, and microgrids that ensure backup powerfor seamless operations. And when severe weatherhits, our experienced crews are ready to restoreyour power safely and efficiently. That’s why weare ranked among the top energy companies inthe nation for reliable service.In 2015, we invested1 BILLION in Arizona’s power grid tobetter serve our customers45

SHAPING THEFUTURE WITHCLEAN ENERGYYour energy is being generated in increasinglyclean ways. The Palo Verde Nuclear GeneratingStation is already the largest source of carbon-freeelectricity in the nation. We are also transitioningfrom older coal units to more efficient natural-gasplants. More than two-thirds of the water we use togenerate energy comes from reclaimed watersources. Moving forward, we will meet growingenergy needs with zero- to low-emission resourcesto create a sustainable future for all of Arizona.47%of the electricitywe provide comesfrom carbon-freeresources67

9APS grid-scalesolar plantsprovide cleanrenewable energyto ArizonaDRIVINGARIZONA’SSOLARLEADERSHIPSince 1954, we’ve advanced solar energythroughout the state. Our efforts continue todaywith programs like APS Solar Partner, an innovativestudy that brings rooftop solar to customers andsupports the long-term growth of solar energy.We’ve also helped more than 300 schools go solarand introduced solar curriculum into the classroom.Today, we generate more solar energy than anyutility outside California because we know solar hasan integral role in Arizona’s energy future.89

Our customers saved over60 MILLION on their energy bills through energy-efficiencyactions in 2015PROVIDING YOUWITH OPTIONSYour energy needs are changing and weoffer options that can save you time and money.Our mobile app helps you manage your energy usefrom the palm of your hand. Text and email alertskeep you informed about outages and accountupdates. And we offer energy-efficiency programs,tips and tools that can help you lower your bill.For our business customers, programs like Solutionsfor Business help cover the cost of energy-savingupgrades and reduce operating costs.1011

POWERINGARIZONA’SPROGRESSOur story is Arizona’s story. We powerour state’s growth by supporting 39,200 jobsand paying more than 500 million in state andlocal taxes. We promote growth and opportunityby spending 300 million every year with diversebusinesses. It all adds up to 3.4 billion in annualeconomic impact in Arizona. We are a drivingforce of our state’s economy and a vital memberof the communities we serve.We purchase1 BILLION annually in goods and servicesfrom Arizona businesses1213

We donated more than10 MILLION last year to charitable causesGIVINGFOR WHEREWE’RE GOINGLast year alone, our employees dedicatedmore than 127,000 volunteer hours and we donated 10.6million to charitable organizations directlyimpacting families all across Arizona. Nearly 3million of those contributions came from theAPS Foundation, which focuses on STEM (science,technology, engineering and math) programs thatbenefit students and teachers. We are also oneof the state’s largest and most active supportersof veterans. They bring experience and leadershipto the workforce — one in five APS employeeshas served or is currently serving our country.1415

OUR STORYFor more than 130 years, wehave powered Arizona’s growth,prosperity and innovation.Today, we provide 2.7 millionpeople with safe, reliable andincreasingly clean energy. Our6,400 employees are dedicatedto ensuring a bright energyfuture for Arizona.aps.comRR-0816 001

with programs like APS Solar Partner, an innovative study that brings rooftop solar to customers and supports the long-term growth of solar energy. We've also helped more than 300 schools go solar and introduced solar curriculum into the classroom. Today, we generate more solar energy than any utility outside California because we know solar has