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While we're focused on fueling tomorrow's economy, we continue to provide reliable energy services coupled with our commitment to being a good neighbor in the community. We cover issues facing our industry and company in depth in our Pinnacle West Annual Report. Our environmental, health and safety reporting provides concise and effective information that can be used in judging our company’s performance and in comparing us to others in our industry.
We believe the following indicators offer an appropriate perspective of our company in the community:
Historic Environmental Risk
We have a proactive manufactured gas plant (MGP) remediation program and have completed the initial investigation and characterization at all eight sites. After characterization, sites were prioritized for remediation through the Arizona Department of Environmental Quality (ADEQ) Voluntary Remediation Program. We have completed remediation at three sites, and have completed an interim remediation project at one site.
Superfund Sites
In the fall of 2003, we were listed as a Potentially Responsible Party (PRP) at the EPA Superfund site known as “Motorola 52nd Street, Operable Unit 3.” We are currently responding to information requests by EPA as they continue to investigate the Superfund site. Also in the fall of 2003, APS completed all work and settled with EPA in the amount of $2.72 million.
Environment-Related Fines
No violations with penalties were recorded in 2003. In 2001, however, the Arizona Department of Environmental Quality (ADEQ) issued two Notices of Violations (NOVs) to APS, alleging, among other things, the burning of unauthorized materials and storage of hazardous waste without a permit at the Cholla Power Plant. APS, the attorney general for the state of Arizona and ADEQ have reached an agreement (in the form of a Consent Judgment) to settle this matter. The Consent Judgment (No. CV2004-000731) was entered on January 26, 2004, and on February 2, 2004, pursuant to its terms, APS paid a $200,000 penalty to the state of Arizona.
Concentration of High-Risk Products in the Product Portfolio
By 2004, our estimated generation mix will consist of roughly 44 percent coal, 33 percent nuclear and 23 percent natural gas. This diversity will allow us to continue effectively managing risk in the face of changing wholesale markets and fuel prices. The following pie charts show the generation mix of the parent company Pinnacle West Capital Corporation (which includes APS and Pinnacle West Energy Corporation) and APS.
APS-Owned Generation Pinnacle West Capital Corporation-Owned Generation
From Individual Plant Sites
All of our power plants, except for the Palo Verde Nuclear Generating Station operate under Title V air permit requirements. Palo Verde has filed an application for a non-Title V permit. System-wide, we maintain emissions in pounds per megawatt-hour that are below industry averages. (See Air Emissions Table)
Environmental Management Capability
Environmental management responsibility is placed at the facility level to ensure maximum accountability while the corporate EHS and Law departments provide technical and regulatory assistance.
Environmental Audit Capacity, Frequency and Transparency
We have an internal EHS audit group which functions independently of the environmental, health and safety department. We use the results of audits to improve performance but maintain the confidentiality of individual audit reports.
Staff Training on Environmental, Health and Safety
Employees annually participate in two or more environmental, health and safety training courses. Field employees average more than nine training courses each year.
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