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Fuels Suppliers
Three primary fuels power our electrical generators: nuclear, coal and natural gas. Each fuel is procured in a different way. Nuclear fuel contracts 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, on the other hand, 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 coal 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 mine 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 regulatory agencies also 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 monitor efforts to improve the quality of air, ground water, vegetation and animal habitats.
Our fuel procurement policy emphasizes production of energy from natural resources in the most efficient and economic way. When feasible, energy is procured 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.
APS Academy for the Advancement of Small, Minority and Women-owned Enterprises
The company also created a program that supports minority- and women-owned businesses. Through the APS Academy for the Advancement of Small, Minority and Women-owned Enterprises, or AAAME, APS helps these business owners learn how to thrive and grow their companies. Launched in 1997, AAAME teaches small-business owners the skills necessary for their companies to succeed. These include training in strategic planning, finance, management/operations and marketing. Students then are partnered with advisers from both the non-profit and private sectors — including APS volunteers, business consultants and retired executives — who can provide lessons learned from their own experiences in the business world. APS does business with many of the companies taking part in the program and in 2003, our company directly spent more than $46 million with minority- and women-owned companies.
Pinnacle West Supplier Diversity Program
The Supplier Diversity and Development Program is an integral part of our Procurement organization and of our Corporation's business plan. Supply Chain Management’s vision is to help Pinnacle West spend its money smarter, without compromising quality, safety or service. Without question Minority, Women, Veteran, Service-Disabled Veterans and HUBZone Enterprises have a role to play.
The Supplier Diversity & Development (SDD) Team is committed to facilitating and expanding competitive business opportunities with Minority, Women, Veteran, Service-Disabled Veterans and HUBZone Enterprises primarily in Arizona and the Southwest. Our efforts are driven by the diversity of the communities, in which we live and serve. We work with these diverse suppliers to provide greater value, innovative thinking and improve the availability of competitive goods and services to Pinnacle West. Our success is attributed to strategic relationships built on direct, honest and equitable communications.
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