APS - Application for Approval of Concentrating Solar Power Contract

On February 21, 2008, Arizona Public Service Company ("APS" or "Company") filed an application ("Application") with the Arizona Corporation Commission ("ACC" or "Commission") that seeks approval and assurance of full cost recovery of a Purchase Power Agreement (“PPA”) to procure renewable energy from a proposed concentrating solar power (“CSP”) resource known as the Solana Generating Station (“Solana Generating Station” or “Solana”).

According to APS' Application, the Solana Generating Station will be developed by an entity known as Arizona Solar One LLC (“Arizona Solar One”) and will be located near Gila Bend, Arizona.  Arizona Solar One is the wholly-owned subsidiary of Abengoa Solar Inc., and was formed to develop the Solana Generating Station project.  Arizona Solar One is part of a family of companies that have experience in the solar industry whose ultimate parent is Abengoa S.A., a multi-national technology company that is headquartered in Madrid, Spain.

APS states in its Application that the PPA would allow APS to procure Solana's full 280 megawatt (“MW”) output for a thirty-year period.  APS also states that CSP technology will help APS meet Arizona’s growing demand for power by using clean solar energy.  APS believes that the Solana Generating Station project provides a timely opportunity to benefit APS’s customers by integrating CSP renewable technology into the Company’s generation portfolio.  The Solana Generating Station is expected to be commercially operable in the summer of 2011.

On February 28, 2008 RUCO filed an application to intervene in APS' filing and will represent the interests of residential ratepayers in the proceeding.

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