Water plays a vital role in our business. As a major electric utility in the desert southwest, the acquisition and utilization of water is even more important for APS than for most utilities. Of the types of water used in Arizona, the highest percentage (43 percent) is groundwater, which is considered a non-renewable water resource. Conservation of this non-renewable resource is a focus area for APS, and we have a new company-wide goal of reducing groundwater use.

We are committed to ensuring we use our water resources as efficiently as possible. One of the most efficient uses of water in the desert is the reuse of water. APS, and the Palo Verde Nuclear Generating Station in particular, has provided national and international leadership on the use of reclaimed water for power generation. A full 68 percent of the water we used in our generating facilities in 2015 was reclaimed water.

Our water use and efficiency objectives are driven by our Water Resource Management Strategic Plan, which provides APS timely and reliable information to manage our water resources portfolio efficiently and effectively. The plan also helps ensure that we have long-term water supplies and water contingency plans for each of our facilities, even in times of extended drought. Each APS power plant has a unique water strategy, developed to promote efficient and sustainable use of water. In addition, other efforts, such as retiring or upgrading water-intensive power plants and increasingly using renewable energy and implementing energy efficiency, add to our overall water conservation.