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Fuels Procurement
Three primary fuels power our generators: nuclear, coal and natural gas. Each fuel is procured in a different way. Nuclear fuel contracts must address uranium acquisition and fabrication of fuel assemblies. Coal contracts address mining, transportation and matching coal composition with the plant's operational needs. Natural gas is a commodity managed by Pinnacle West Power Marketing. The Fuels Procurement group oversees natural gas transportation contracts with El Paso Natural Gas Company.
The Fuels Procurement department also monitors supplier activity and costs for reclamation, as well as health and safety practices to ensure work is cost effective and environmental criteria are met. Fuel contracts at the Four Corners Power Plant include reclamation costs.
All of our fuel suppliers are expected to maintain federal, state and local permits and adhere to environmental standards. Federal, state and local regulating agencies conduct inspections to ensure compliance with all requirements.
We work with fuel suppliers to develop environmentally preferable processes, materials and products. We assist with environmental studies and guidance to reduce the impact on the quality of air, ground water, vegetation and animal habitats.
Our policy is to produce energy from natural resources in the most efficient and economic way. When feasible, energy is produced from local and regional fuel sources in order to limit the economic and environmental impacts of transportation. We purchase about 97 percent of our coal locally. The remaining three percent is procured regionally.
Working With The Community
In 2002, APS purchased more than $54.5 million worth of goods and services from minority- and women-owned businesses — exceeding our goal of $43.2 million. One major component of APS' effort to work with vendors representing women- and minority-owned businesses is the APS Academy for the Advancement of Minority and Women-owned Enterprises (AAAME). Launched in 1997, AAAME is aimed at teaching small-business owners the skills necessary for their companies to succeed. This is done through training in such areas as strategic planning, finance, management/operations and marketing. Students then are partnered with advisers from both the non-profit and private sectors. These include APS volunteers, business consultants and retired executives — who can provide lessons learned from their own experiences in the business world. The academy is free to those accepted. In 2002, eight companies graduated from the Academy.
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