Annual Users’ Group Meeting August 27 – 31, 2006

1. AnnualUsers’ Group MeetingAugust 27 – 31, 2006 APS Operating Vision Scott Gudeman August 28, 2006

2. APS at a Glance • 35,000 sq. mile service territory throughout AZ • 1,000,000+ Customers • 4.5% annual customer growth rate • 10% annual peak MW demand growth, 7740MW in 2006 • Very few mosquitoes • No hurricanes • No tornadoes • Many monsoon storms • Lot’s of Heat

3. Today’s Operating Challenges at APS • Still on a paper wall maps • 20+ year old mainframe OMS (TCMS) • Proprietary feeder tracing software • Five separate operating areas, operating independently • Long switching orders to move load around • Stand-alone EMS • Operating knowledge resides in a few Load Management Specialists (LMS) • Less interest from journeyman moving into LMS jobs • Data Integrity is still king!

4. Operating Summary Problem APS growth rate and winter to summer peak swing causes many APS feeders to go from a load of 40% to around 95% of capacity or greater for most of the summer. This causes significant challenges during outages and switching operations to pick up this load. A typical APS switching order is several pages long, may take a full day to get through and involve 4-5 substations and 10-12 feeders to pick up one lost feeder. This requires a bigger picture view of the feeders, their subs and the potential connections.

5. 2 1 4 By-Pass Cabinet 3 Load Cabinet 1 A/T Switch Typical Wall Map

6. Circuit Arrangement Map

7. APS’ Future Operating Vision • Fully integrated, flexible DOMS that can operate the APS distribution system from anywhere in the state • Allows for consolidation of operating centers • Eliminate the need for after-hour support and call outs for UG lateral sectionalizing and other similar issues in state operating areas • Simplifies I/S system impacts for providing infrastructure, bandwidth, disaster recovery for multiple sites • Standardize Metro and State Distribution Operations

8. APS’ Future Operating Vision • Provide real time distribution management switching configuration • Provides for better ticket grouping, improved knowledge of customers impacted including key/critical customers, improved customer call back results. Bottom line-provides better customer service. • Replace Paper Wall Maps with GIS fed Electronic Geographic & Schematic views of distribution facilities • Allow anyone to see any part of the distribution system at any given time (with proper permissions!) • Enhanced backup

9. APS’ Future Operating Vision Provide integrated analysis tools • Suggested Switching Orders and enhanced overall process of Switching Order development • Aid to operators for complex switching operations • Training tool for less experienced operators • Potential to reduce outage durations • Provide check on new facility designs with “What If” analysis tool • Integration with EMS for key data • Integrate with Maximo for equipment records • Integration with key customer data • Future integration with FeederAll • Future integration with AMS

10. APS’ Future Operating Vision • Ability to train new operators • Build simulator for training operators • Test operators on abilities to certify • Bridge knowledge gap • Instant reports to manage outages • Customers affected by outages • Instant outage metrics • Track individual customer outage history

11. APS DOMS Workstation

12. Goals to Sustain • Stay away from proprietary systems • Keep up with upgrades • Establish concrete processes and manage them • Establish knowledge transfer protocol • Integrate through the EAI bus • Develop Maintenance Optimization Program • Participate in user community