The program provides critical support to develop new, sustainable economic strategies for their residents and other stakeholders in impacted communities. Funding is provided by Arizona Public Service (APS), Salt River Project (SRP) and ������Ƶ (������Ƶ). The following organizations were recently selected as grant recipients:

Pioneer Irrigation Company will receive a $12,000 grant to help cover the costs to support the application writing fee for the Arizona Water Infrastructure and Finance Authority’s Water Conservation Grant Fund application.

The Chilchinbeto Chapter of the Navajo Nation will receive $18,100 to conduct a water study on a new purification plant that removes 98% of contaminants. The study will determine water chemistry, formation, perforation, pump size, recharge rate, and other capabilities.

The Town of Eagar will receive $25,000 for a grant writer to submit infrastructure and development applications.

The City of St. Johns will receive funds to update the city’s general plan to further economic development. The $25,000 grant will be used to hire a consultant.

The Apache County Superintendent of Schools will receive funds to help expand broadband throughout its county. The $25,000 grant will retain Community Broadband Advocates consulting services to help navigate Arizona’s Broadband Equity, Access, and Deployment (BEAD) grant.

Navajo County will receive a $25,000 grant to help hire a consultant to help with BEAD grant opportunities to ensure access to high-speed internet for all residents and businesses.

The City of Holbrook will receive a $25,000 grant for future economic opportunities. The funds will be used to hire a consulting firm to update Holbrook’s general plan.

APS, ������Ƶ and SRP pledged a combined $1 million in awards available through the Utilities’ Grant Funding Program. Area-specific tribal, state, and local governments, public schools, economic development groups and nonprofit groups are eligible to apply. More details about submission eligibility and requirements are available

This was the program’s made since the program was launched in 2023.

The fourth grant application cycle is now open. Applications are due by April 15, 2024.

APS and ������Ƶ funds for the Utilities’ Grants Funding program do not come from customer rates.

About APS

 serves approximately 1.4 million homes and businesses in 11 of Arizona’s 15 counties, and is a leader in delivering affordable, clean and reliable energy in the Southwest. The company is committed to serving customers with 100% clean power by 2050. As owner and operator of , the nation’s largest producer of carbon-free electricity, and with one of the country’s most substantial renewable energy portfolios, APS’s current energy mix is 51% clean. With headquarters in Phoenix, APS is the principal subsidiary of  (NYSE: PNW).

About SRP

SRP is a community-based, not-for-profit public power utility and the largest electricity provider in the greater Phoenix metropolitan area, serving approximately 1.1 million customers. SRP provides water to about half of the Valley’s residents, delivering more than 244 billion gallons of water (750,000 acre-feet) each year, and manages a 13,000-square-mile watershed that includes an extensive system of reservoirs, wells, canals and irrigation laterals.

About ������Ƶ

������Ƶ provides safe, reliable electric service to more than 447,000 customers in Southern Arizona. For more information, visit tep.com. ������Ƶ and its parent company, UNS Energy, are subsidiaries of Fortis Inc., a leader in the North American regulated electric and gas utility industry. For more information, visit fortisinc.com.

News Media Contact:
Joseph Barrios
(520) 884-3725
jbarrios@tep.com

The joint ASRFP, issued in December 2023, targets resources to support the companies’ 2023 integrated resource plans (IRPs), which describe how each company plans to meet customers’ increasing energy needs over the next 15 years while maintaining affordable service.

“We’re looking for opportunities to add reliable, cost-effective resources to satisfy the growing energy needs in communities we serve,” said Susan Gray, President and Chief Executive Officer. “As in our previous ASRFP, we’re particularly interested in resources that can provide service during the late afternoon and early evening hours of summer, when our customers typically use the most energy.”

In the ASRFP, ������Ƶ and UniSource are seeking bids for all resource types, including:

• Up to 625 megawatts (MW) of renewable and energy efficiency resources. This could include new wind and solar generating systems and new energy efficiency initiatives, including demand response programs that reduce usage during periods of high energy demand.
• Up to 825 MW of “firm capacity” resources that can be called on at any time, including energy storage systems designed to provide at least four hours of continuous energy every day during the summer for the companies to dispatch as needed. This also could include demand response programs that provide incentives to customers who curtail energy usage at specific times of the day and year when usage is typically highest.

The companies will review proposals before summer and anticipate selecting successful proposals this fall. Both companies are seeking resources that can commence service as soon as May 1, 2026 but no later than May 1, 2027. Projects with combined technologies are eligible for consideration.

������Ƶ’s 2023 IRP describes how the company will accelerate its clean energy expansion while reducing carbon dioxide (CO2) emissions and other environmental impacts. ������Ƶ expects to add 2,240 megawatts (MW) of wind and solar generation and 1,330 MW of energy storage by 2038, as well as 400 MW of natural gas turbines to help offset coal plant retirements and support higher use of variable wind and solar energy. This balance was determined to be the most cost-effective way to maintain reliability while achieving an 80 percent reduction in CO2 emissions by 2035, a goal set in ������Ƶ’s 2020 IRP.

outlines the company’s plans to more than double its electric energy resources amid increasing resource constraints on the regional electric grid. The plan calls for the addition of 350 megawatts (MW) of solar and wind resources, 200 MW of natural gas turbines and 225 MW of energy storage systems by 2038. UniSource currently has about 300 MW of generating capacity.

The ASRFP process is being supported with evaluation and independent monitoring services provided by Sargent & Lundy.  More information, including bidder registration and ASRFP material, is available at .

In October 2023, ������Ƶ announced plans for Roadrunner Reserve, a 200-MW, 800-megawatt-hour battery energy storage system. The project was selected as a result of ������Ƶ’s April 2022 ASRFP. ������Ƶ will own and operate the system, which will be designed and built by Scottsdale-based DEPCOM Power, Inc. The system, announced in October, is expected to be ready for use in 2025. Other projects submitted during the April 2022 solicitation remain under consideration.

About ������Ƶ and UniSource

������Ƶ provides safe, reliable electric service to more than 445,000 customers in Southern Arizona. For more information, visit tep.com.

UniSource provides electric service to more than 101,000 customers in Mohave and Santa Cruz Counties. It also provides natural gas service to more than 167,000 customers in Northern and Southern Arizona. For more information, visit .

������Ƶ, UniSource and their parent company, UNS Energy, are subsidiaries of Fortis Inc. (TSX/NYSE: FTS), which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. To learn more, visit .

News Media Contact:
Joseph Barrios
(520) 884-3725
jbarrios@tep.com

“We’re proud to partner with so many groups working toward effective, creative solutions to challenges in our local community,” said Shea-Lynn Hoisington, ������Ƶ’s Outreach Project Coordinator. “Leveraging our support can help them reach their goals and drive impactful change.”

������Ƶ funded a range of organizations, projects, and events last year, including efforts to address housing stability and provide food for low-income residents.

Our support helped address housing insecurity issues in our community by renovating an affordable housing complex, Talavera Apartments.

“������Ƶ’s commitment to affordable housing is an important acknowledgment of the challenges our community faces and we are grateful for the assistance,” said Meghan Heddings, Executive Director of Family Housing Resources. “������Ƶ played a pivotal role in supporting our efforts, ensuring the completion of our project despite unexpected cost escalations during construction.”

Our education investments centered on science, technology, engineering, and math (STEM) lessons, financial literacy, career readiness and teacher support. To support the environment and promote sustainability, we worked to protect land and water resources, enhance botanical gardens and nature areas, and safeguard raptors and other wildlife.

We also donated about $150,000 to initiatives that advance racial and social equity through legal support, training, and community events. One example is a contribution to the State of Black Arizona to build on the work of the .

“This grant served as a catalyst, igniting a dedicated effort to emphasize the critical significance of educating Black leaders about renewable and solar energy in Southern Arizona,” said Teniqua Broughton, Chief Executive Officer of the State of Black Arizona. “With gratitude, we recognize this generous contribution as an investment in knowledge, empowerment, and a brighter, more sustainable future for our community.”

������Ƶ’s philanthropic contributions come from corporate resources and are not recovered through customers’ rates. Our community partners use our contributions to sustain programs with measurable success built over many years.

Top donations included:

• Wildfire, a statewide nonprofit organization that provides utility bill-payment assistance to low-income residents – $300,000
• Community Food Bank of Southern Arizona – $50,000
• Family Housing Resources – $50,000
• Southern Arizona Research, Science and Engineering Foundation (SARSEF) for the regional science fair and other education efforts – $50,000
• Junior Achievement of Arizona – $30,000
• Tucson Values Teachers – $30,000
• Women’s Foundation for the State of Arizona – $30,000

In addition to investments in the Tucson area, ������Ƶ supported 12 charities in the White Mountains community around our Springerville Generating Station and also contributed to two organizations in rural New Mexico near our Oso Grande wind farm.

Employee Service

������Ƶ values our employees’ commitment to community service. In 2023, about 295 active volunteers donated nearly 8,500 hours to causes they care about.

Some of the organizations and community projects we support are chosen by ������Ƶ’s Community Action Teams – employee-led committees that organize volunteer and donation activities to benefit the causes closest to their hearts. Last year, we provided $55,000, plus volunteer hours, to 17 Tucson-area organizations through those teams.

In addition, we invite employees who meet certain volunteer thresholds to apply for grants in support of the nonprofit organizations of their choice. Through our Dollars for Doers program, we provided about $14,000 through grants of $100 to $500 each to 38 local groups.

“Our goal is to support the organizations that hold significant meaning for our employees,” said Tara Barrera, ������Ƶ Community Program Coordinator. “We acknowledge the importance of their volunteer contributions and are dedicated to strengthening their impact through our Dollars for Doers program and community partnerships.”

The program provides critical support to communities near impacted coal plants to develop new, sustainable economic strategies for their residents and other stakeholders. Funding is provided by ������Ƶ (������Ƶ), Arizona Public Service (APS) and Salt River Project (SRP). This is the program’s second round of grant awards made in 2023.

(NPC) will receive a grant award of $25,000 to redesign its Energy and Industrial Technician (EIT) program. NPC will hire a consultant to conduct a feasibility study exploring alternative energy and other electro-mechanical offerings that will inform curriculum development and new program implementation. The college is responding to the industry growth of wind and solar power generation while offering electrical and instrumentation training and industrial maintenance skills used across multiple industries. This revised program is expected to begin in the Fall 2024 semester at the new NPC Skills Center on the White Mountain Campus in Show Low.

“Northland Pioneer College works hard to meet the needs of our local communities by providing relevant programs that lead to high-wage jobs,” said Jeremy Raisor, Dean of Career and Technical Education. “Whether students are beginning a new career or plan to change careers, the college provides opportunities for students of all ages to develop the skills they need in the workplace. We are grateful to receive this funding made possible by our valued utility partners and look forward to the new educational and workforce possibilities it will provide our students.”

The will receive $25,000 to help cover the costs of hiring a grant-writing consulting firm to prepare applications for larger federal grants. The firm is also identifying additional grant opportunities to support transportation and economic development efforts, including broadband and community facilities and business incubators.

“I want to thank our Arizona utilities that so generously contribute to this grant so that small communities like Page can do good work for their residents,” said Darren Coldwell, City Manager. “Without the generosity of the Utilities Grant Funding Program, we would never be able to partner with such a firm.”

The will receive $25,000 to help hire a grant writer who will assist with funding opportunities.

“We greatly appreciate this funding and the abilities that it will provide,” said Cass Pond, Business Manager for Round Valley. “The objective is to obtain several grants that will provide funding for some of the infrastructure, curriculum, and program development to help our students for future generations. We are excited for this opportunity.”

The will receive $25,000 to support Round Valley Fire and Medical. Since the towns of Eagar and Springerville consolidated first responder resources in January, department leaders have been working diligently to improve all areas of service, said Britney Reynolds, Community Development Director.

“Funds will be used to continue pursuing necessary training, education, and equipment in fire safety, fire inspection, medical training, and several other areas necessary to operate a full-time station, a service that has never been available to the Round Valley area,” Reynolds said.

also will receive a $25,000 grant that will provide matching funds for a state water conservation program grant that will pay for meter system upgrades. These improvements will help save water, speed operations, and improve accuracy.

“Water is one of the most precious resources, particularly in Arizona, and needs to be used wisely,” Reynolds said.

, a nonprofit organization that supports Joseph City Schools, will receive $9,140 to provide matching funds for a grant that will provide local businesses with training through the Joseph City Chamber of Commerce and job development opportunities for the area.  Utilities’ Grant Program funding will also support technical assistance in securing additional grant opportunities.

“The funds made available to us through the Arizona Utilities Grant will help us in planning and preparing for the future in our small community,” said Bryan Fields, President of Joseph City Foundation. “This award has helped us in securing a jump start on obtaining other economic funding opportunities that will certainly bring economic benefits to our community.”

������Ƶ, APS and SRP pledged a combined $1 million in awards available through the Utilities’ Grant Funding Program. Area-specific tribal, state and local governments, public schools, economic development groups and nonprofit groups are eligible to apply. More details about submission eligibility and requirements are .

The third grant application cycle is now open. Applications are due by Friday, Dec. 15, 2023.

About ������Ƶ

������Ƶ provides safe, reliable electric service to more than 445,000 customers in Southern Arizona. For more information, visit tep.com. ������Ƶ and its parent company, UNS Energy, are subsidiaries of Fortis Inc., which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. For more information, visit .

About APS

APS serves approximately 1.4 million homes and businesses in 11 of Arizona’s 15 counties, and is a leader in delivering affordable, clean and reliable energy in the Southwest. The company is committed to serving customers with 100% clean power by 2050. As owner and operator of Palo Verde Generating Station, the nation’s largest producer of carbon-free electricity, and with one of the country’s most substantial renewable energy portfolios, APS’s current energy mix is 50% clean. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

About SRP

SRP is a community-based, not-for-profit public power utility and the largest electricity provider in the greater Phoenix metropolitan area, serving approximately 1.1 million customers. SRP provides water to about half of the Valley’s residents, delivering more than 244 billion gallons of water (750,000 acre-feet) each year, and manages a 13,000-square-mile watershed that includes an extensive system of reservoirs, wells, canals and irrigation laterals.

Media Contact:
Joseph Barrios
jbarrios@tep.com
520-884-3725

Nationwide, utilities have received increased reports of scammers contacting customers digitally while posing as utility workers to access financial information or obtain immediate payment by threatening service shutoffs.

Here are some of the digital ways scammers may contact you:

• Sponsored ads on search engines that lead to an identical, but fake, utility bill payment page.
• QR codes that scammers link to a false utility payment page.
• Texts from a scammer claiming to be a utility representative, with a link to an impostor website.

Common signs of a scam:

• Threat to disconnect. Scammers often contact customers claiming their utility bill is past due and service will be shut off unless payment is made right away.
• Demand for immediate payment. Scammers often pressure customers to make payments immediately or face disconnection.
• Request for a prepaid card. Con artists often instruct victims to purchase a prepaid card such as Green Dot, MoneyPak or Vanilla at a nearby store, and then call them back. The scammer then asks for the card and PIN number, which grants instant access to the card’s funds. In just a few seconds, the victim’s money is gone.

Ways to Protect Yourself:

• Never purchase a prepaid card. Arizona utilities never require payment via a prepaid debit card, gift card or form of cryptocurrency.
• Don’t fall for threats. Slow down. Scammers typically try to rush customers by threatening immediate utility shut-off. Customers with delinquent accounts receive multiple notifications well in advance – never a single notice one hour or less before disconnection.
• Call your utility to verify. If there is ever a question about the validity of an email, website or person claiming to be a utility representative, call your utility directly to confirm. Never use the call-back phone number provided by the email, website or person in question to verify billing or account information. Also, some phone scammers can mirror the actual name and number of your utility on your caller ID – a technique known as ‘spoofing’. It might look real, but don’t fall for it.
• Call 911. Customers should call 911 if they ever feel they are in physical danger.

Consumer Support

Utilities United Against Scams (UUAS), a consortium of more than 150 U.S. and Canadian electric, water and natural gas utilities and their respective trade associations, continues to raise customer awareness of common scams and new scam tactics used by utility impostors. Through its work and with the help of customer reporting, UUAS has successfully helped to take more than 13,000 toll-free numbers used by scammers out of operation as of 2022. Visit UtilitiesUnited.org for more information and tips on how customers can protect themselves from impostor utility scams. Follow along with UUAS on and , and join the conversation by using #StopScams.

Arizona Utilities

Arizona Public Service: APS serves approximately 1.4 million homes and businesses in 11 of Arizona’s 15 counties, and is a leader in delivering affordable, clean and reliable energy in the Southwest. To learn more about available support, visit or call the APS Customer Experience Center. Advisors are available to support in English and Spanish 24 hours a day, seven days a week at 602- 371-7171 (metro Phoenix) or 800-253-9405 (other areas). Visit to learn more.

Salt River Project: SRP is a community-based, not-for-profit public power utility and the largest electricity provider in the greater Phoenix metropolitan area, serving approximately 1.1 million customers. SRP provides water to about half of the Valley’s residents, delivering more than 244 billion gallons of water (750,000 acre-feet) each year, and manages a 13,000-square-mile watershed that includes an extensive system of reservoirs, wells, canals and irrigation laterals.

Southwest Gas: Southwest Gas Corporation is a dynamic energy company committed to exceeding the expectations of our over two million customers throughout Arizona, California and Nevada by providing safe and reliable service while innovating sustainable energy solutions to fuel our communities’ growth. We will never call or appear at your door to demand immediate payment or ask you to pay your bill using prepaid cards, cryptocurrencies or third-party payment apps. For more information about how to identify a Southwest Gas employee or contractor, visit swgas.com/safety.

������Ƶ and UniSource Energy Services: ������Ƶ serves more than 445,000 electric customers in Southern Arizona. UniSource provides natural gas and electric service to more than 268,000 customers in Northern and Southern Arizona. More scam prevention tips and ways to identify field employees are available on the ������Ƶ and websites. ������Ƶ, UniSource and their Tucson, Arizona-based parent company, UNS Energy Corporation, are subsidiaries of ., which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean.

Media Contacts:

APS: Katie Conner, Katie.Conner@aps.com, 480-708-1288
SRP: Jennifer Schuricht, Jennifer.Schuricht@srpnet.com, 602-625-5023
Southwest Gas: Amy Washburn, Amy.Washburn@SWgas.com, 602-395-4090
������Ƶ and : Joseph Barrios, jbarrios@tep.com, 520-884-3725

������Ƶ’s 2023 Integrated Resource Plan (IRP), filed today with the Arizona Corporation Commission (ACC), describes how the company expects to satisfy customers’ increasing energy needs over the next 15 years while reducing carbon dioxide (CO₂) emissions and other environmental impacts.

������Ƶ expects to add 2,240 megawatts (MW) of wind and solar generation and 1,330 MW of energy storage by 2038, as well as 400 MW of natural gas turbines to help offset coal plant retirements and support higher use of variable wind and solar energy. This balance was determined to be the most cost-effective way to maintain reliability while achieving an 80 percent reduction in CO₂ emissions by 2035, a goal set in ������Ƶ’s 2020 IRP.

“Our new resource plan strikes the right balance for our customers, our community and our planet,” said Susan Gray, ������Ƶ’s President and CEO. “It supports reliability and affordability while enabling economic growth and keeping us aligned with worldwide efforts to combat climate change.”

While ������Ƶ’s 2020 IRP called for 1,000 MW of combined wind, solar and storage additions by 2030, the 2023 IRP boosts that by 50 percent to 1,500 MW to support reliability and affordability amid increasing resource constraints and volatile pricing on the southwestern regional grid. The new timeline also capitalizes on the availability of federal clean energy tax credits that could reduce long-term costs for customers.  New systems will include the new 200-MW Roadrunner Reserve battery energy storage system announced last month and expected to be ready for use in 2025.

������Ƶ projects that its customers’ peak energy demands will increase by more than 1 percent per year, on average, over the next 15 years. This estimate accounts for economic growth, energy efficiency efforts, expanded use of electric vehicles and customer investments in distributed solar and storage systems. The portfolio proposed in ������Ƶ’s 2023 IRP is designed to meet those needs while accounting for extreme weather and increasing supply constraints on the western regional electric grid.

New Net Zero Target

������Ƶ’s new net zero goal builds on the plan outlined in the 2023 IRP but goes further, reflecting a commitment that will drive the prioritization of future investments and leadership decisions. “To build the clean energy future our community deserves, we must set ambitious and aspirational goals,” Gray said.

Achievement of this aspirational goal will require advancements in technologies such as long-duration storage, carbon capture and sequestration, hydrogen generation and small modular reactors.  It also will depend in part on ������Ƶ’s success in promoting energy-smart behaviors, like conservation during periods when energy use typically reaches its peak.

“We’re hopeful that our net zero goal inspires customers to join us in this effort, because we’re all in this together,” Gray said. “Smart energy use is the best way to make the most of our clean energy resources and reduce our community’s carbon footprint.”

This month, ������Ƶ will launch a campaign that encourages customers to become “net zero heroes” by taking steps to support a sustainable energy future for our community.

From 32 to One

The plan outlined in ������Ƶ’s 2023 IRP emerged from 32 potential portfolios developed and analyzed in the company’s resource planning process.  One option added only new renewables and storage, for example. Others altered the operating timelines for Units 1 and 2 at ������Ƶ’s coal-fired Springervillle Generating Station, which are scheduled to retire in 2027 and 2032. ������Ƶ selected the portfolio that was found to support reliability and achieve targeted CO₂ reductions at the lowest cost to customers.

The IRP does not determine the location, capacity or other specific details about new power generation projects. Those determinations are made after reviewing bids submitted in response to the all-source requests for proposals that ������Ƶ uses to develop new energy resources. Because the process allows developers to propose competing technologies that satisfy performance requirements, it creates opportunities for alternatives that provide comparable reliability at competitive costs.

Development of ������Ƶ’s 2023 IRP included consultations with its Resource Planning Advisory Council, a stakeholder group that includes residential and business customers, environmental and low-income advocates, representatives from local governments and educational institutions, and solar installers.

The plan will be reviewed by the ACC in a process that includes opportunities for public comment. For updates on that process and more information about ������Ƶ’s 2023 IRP, visit tep.com/2023IRP.

������Ƶ provides safe, reliable electric service to more than 445,000 customers in Southern Arizona. For more information, visit tep.com. ������Ƶ and its parent company, UNS Energy, are subsidiaries of Fortis Inc. (TSX/NYSE: FTS), which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. For more information, visit .

News Media Contact:
Joseph Barrios
(520) 884-3725
jbarrios@tep.com

������Ƶ’s Roadrunner Reserve system will serve as the largest energy storage system in our portfolio and among the largest in Arizona. The 200-megawatt (MW) system can store 800 megawatt hours of energy, enough to serve approximately 42,000 homes for four hours when deploying at full capacity. The system is scheduled to begin operation in summer 2025.

������Ƶ expects to charge the grid-connected battery in the morning and early afternoon, when solar resources are most productive, then deliver stored energy later in the day when customers’ energy use is typically highest.  The system will be built next to a southeast-side ������Ƶ substation.

“Roadrunner Reserve will help us maintain reliability as we ambitiously but responsibly expand our community’s renewable resources,” said Susan Gray, ������Ƶ’s President and CEO. “This new system will be particularly important in helping us satisfy peak energy needs during the summer.”

Battery systems help ������Ƶ and other utilities make better use of wind and solar resources by “shifting” their output to periods of greatest need. They also can help smooth out imbalances throughout the day as clouds block the sun or wind patterns shift. Currently, ������Ƶ has 51 MW of energy storage capacity. The largest storage system is the 30 MW battery at the Wilmot Energy Center.

������Ƶ will own and operate Roadrunner Reserve, which will be designed and built by Scottsdale-based DEPCOM Power, Inc. The new system will use lithium iron phosphate battery units, a newer technology that offers longer life and safer operation than other types of battery systems.

Roadrunner Reserve aligns with ������Ƶ’s 2020 Integrated Resource Plan (IRP), which describes our plan to reduce carbon emissions 80 percent and add up to 1,400 MW of energy storage by 2035. ������Ƶ will file its next IRP on Nov. 1, 2023.

Roadrunner Reserve will build on recent additions of renewable resources, including:

• The 250-MW Oso Grande Wind Project, located near Roswell, New Mexico. Owned and operated by ������Ƶ, it generates enough energy to serve the annual electric needs of about 100,000 homes.
• The Wilmot Energy Center, which includes a 100-MW solar array and a 30-MW battery energy storage system south of Tucson International Airport. It is owned and operated by NextEra.
• The 99-MW Borderlands Wind Project, located about 100 miles south of Gallup, New Mexico. Also owned by NextEra, it includes 34 turbines that produce enough power to serve about 26,000 homes every year.
• Our efficient 12.5-MW Raptor Ridge solar system near Interstate 10 and Valencia Road can produce enough power to meet the annual electric needs of about 2,500 homes. It provides power for homeowners and renters participating in ������Ƶ’s GoSolar Home program.

������Ƶ provides safe, reliable electric service to more than 445,000 customers in Southern Arizona. For more information, visit tep.com. ������Ƶ and its parent company, UNS Energy, are subsidiaries of Fortis Inc. (TSX/NYSE: FTS), which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. For more information, visit .

News Media Contact:
Joseph Barrios
(520) 884-3725
jbarrios@tep.com

The new rates, approved Aug. 8 by the Arizona Corporation Commission, are expected to increase the average monthly bills of residential customers with typical usage on ������Ƶ’s Basic pricing plan by about $11. The impact will vary with usage and is likely to be higher during hot weather and lower in cooler months. ������Ƶ can help customers mitigate the impact through energy efficiency programs, rebates and advice available on tep.com.

The increase reflects nearly $1.8 billion in recent grid upgrades, including new poles, transformers, power lines and other equipment as well as security enhancements, technology upgrades and new wind and solar power resources.  ������Ƶ’s current rates took effect in January 2021 and do not reflect investments made since 2018.

New rates will help ������Ƶ serve the increasing energy needs of our growing community. Peak energy demands on ������Ƶ’s local grid have increased nearly 6 percent since 2019, the result of hotter summer weather and the addition of more than 14,000 customers.

“We’re doing everything possible to keep our service affordable as we build the resources we need to maintain top-tier reliability while working toward a cleaner energy future,” said Susan Gray, ������Ƶ’s President and CEO. “These new rates support investments that promote efficient, effective operations, helping us control our long-term costs and reduce our community’s carbon footprint.”

The new rates provide increased assistance to low-income customers through ������Ƶ’s Lifeline program. Monthly discounts for qualifying customers have been increased to $20 from $18 and are available to families with household income up to 200 percent of the federal poverty level.

Building a Cleaner, Greener Grid

The new rates will help ������Ƶ achieve key long-term objectives, including adding new wind, solar and energy storage projects to help replace retiring coal-fired power plants. The largest of these projects is the 250-megawatt (MW) Oso Grande wind farm in southeast New Mexico, which more than doubled ������Ƶ’s large-scale renewable energy resources when it came online in 2021.

The new rates also recover costs for a new substation and other infrastructure to connect the new Wilmot Energy Center south of Tucson, which includes a 100-MW solar array and a 30-MW battery energy storage system – each the largest of their kind on ������Ƶ’s local energy grid.

Controlling Costs, Serving Customers’ Needs

������Ƶ has worked to limit rate increases by scrutinizing expenses and implementing new efficiencies. Thanks to those efforts, ������Ƶ’s operations and maintenance costs, on average, from 2018 through 2021 grew at a lower rate than average annual inflation during that same period.

Many of ������Ƶ’s investments are designed to reduce ongoing costs. For example, upgraded systems allow more efficient dispatch of power generation resources and support participation in the Western Energy Imbalance Market. That marketplace has expanded ������Ƶ’s access to clean energy and balancing resources and is expected to lead to lower long-term energy costs for customers.

For more details about the new rates, visit tep.com/2023-rates.

������Ƶ provides safe, reliable electric service to more than 445,000 customers in Southern Arizona. For more information, visit tep.com. ������Ƶ and its parent company, UNS Energy, are subsidiaries of Fortis Inc. (TSX/NYSE: FTS), which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. For more information, visit .

News Media Contact:
Joseph Barrios
(520) 884-3725
jbarrios@tep.com

Like other energy providers, ������Ƶ pays a premium for power purchased to meet customers’ summer peak energy needs. During long-lasting regional heat waves, when resources are constrained, the cost of purchased energy can increase by 3-5 times normal rates, or more. These higher prices lead to higher bills over the long term as energy costs are passed along to customers.

Higher temperatures also force air conditioners to run longer, driving up bills in the short term. Customers who keep the same thermostat setting when outside temperatures rise will end up paying higher bills, as their AC systems are working harder to maintain that same comfort level.

Here are a few ways to manage your energy use:

• Use shades and blinds to block out the midday and afternoon sun, reducing radiant heat entering your home.
• Set your thermostat to a higher temperature. For each degree you raise the temperature, you may be able to reduce energy usage by 10 percent or more.
• Use ceiling or oscillating fans to keep air moving so you feel cooler without increasing air conditioner use.
• Change the air filter in your air conditioning system monthly or as recommended by the manufacturer to prevent it from becoming clogged with heavy use.
• Consider planting a shade tree near your home, giving your air conditioner a tune-up or participating in another ������Ƶ energy efficiency program that can help you to reduce energy usage.

������Ƶ has more energy-saving ideas for customers and also offers a variety of programs and resources to help customers pay their monthly bill.

• With our Lifeline program, low-income residential customers may qualify for an $18 monthly discount.
• ������Ƶ also works with several community agencies through our Short-term Bill Payment Assistance program to offer emergency bill payment assistance to customers.
• With our Safety Net program, customers can designate a family member, friend or community agency representative to help them stay on top of their bills.

������Ƶ provides safe, reliable electric service to more than 442,000 customers in Southern Arizona. ������Ƶ and its parent company, UNS Energy, are subsidiaries of (TSX/NYSE: FTS), which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean.

News Media Contact:
Joseph Barrios
(520) 884-3725
jbarrios@tep.com

������Ƶ’s year-round system upgrades have improved reliability by reducing the average length of power outages attributed to maintenance, equipment failure, weather and other factors.

In 2022 alone, ������Ƶ spent more than $290 million to improve power lines, poles, transformers and other transmission and distribution facilities used to deliver service to customers every day.

“We work throughout the year to prepare for summer, when our customers’ energy needs are the greatest,” said David Wagner, ������Ƶ Director of Transmission & Distribution Line Construction and Metering. “During summer months, we increase the number of employees who work late shifts so we can more quickly respond to late afternoon storm damage and other emergencies.”

������Ƶ annually replaces about 1,200 poles due to storm or vehicle damage, routine maintenance, system upgrades and line relocations. Monsoon storms typically damage about 100 poles and 50 transformers each summer. To ensure sufficient equipment is on hand for emergency restoration, our procurement team temporarily increases the inventory for critical items and sets aside materials to guarantee availability over the summer.

������Ƶ crews have completed several projects since last summer to improve service reliability for customers.

Last month, crews commissioned the Tangerine Mobile Substation, a critical system reinforcement project designed to support growing energy needs in the Marana area. The temporary facility will help provide reliable service to customers as ������Ƶ develops a new, permanent substation.

At the Canoa Ranch Substation south of Green Valley, substation crews installed two new, higher-capacity transformers in March to replace units that had been in service for more than 50 years. Insulation in both units showed signs of deterioration, and an analysis of maintenance history and outages indicated both units were nearing the end of their useful lives.

The $5 million upgrade included installation of new switching equipment, fuses, and circuit breakers. Crews completed a similar $3 million upgrade at the Oro Valley Substation, located near North Oracle Road and North 1st Avenue, in February with installation of a new transformer and other equipment.

Since 2020, ������Ƶ has accelerated efforts to replace older poles, using resistance testing to identify those that most need replacement. All distribution poles and pad-mounted equipment are visually inspected or tested every three years.

Since last summer, crews replaced more than 100 power poles in the El Rio Acres neighborhood, located near West Grant Road and Interstate 10. Construction started in August 2022 and continued through March. The project was designed to improve the resiliency of distribution equipment that delivers service to area customers.

������Ƶ provides safe, reliable electric service to more than 442,000 customers in Southern Arizona. For more information, visit tep.com. ������Ƶ and its parent company, UNS Energy, are subsidiaries of Fortis Inc. (TSX/NYSE: FTS), which owns utilities that serve more than 3 million customers across Canada and in the United States and the Caribbean. For more information, visit .

News Media Contact:
Joseph Barrios
(520) 884-3725
jbarrios@tep.com