EHS Policy

APS Environmental, Health and Safety Policy
Pinnacle West is committed to a clean, safe and healthy workplace and environment. All aspects of our business will be managed in a safe and environmentally responsible manner in accordance with the principles set forth in this policy. We believe these actions benefit our customers, shareholders, employees and the public, both now and for the future, while improving the quality of the environment in which we live. This policy reaffirms our commitment to environmental stewardship and protecting the well-being of our customers, employees and the public.

Management Commitment
All levels of APS management are committed to, and accountable for, implementing, maintaining, measuring and improving the environmental, health and safety programs of the company. Self-assessments of our performance in these areas will be routinely conducted. We will measure performance and hold all employees accountable through performance enhancement processes.

Culture
We will foster a culture that encourages safe, healthy and environmentally responsible behavior by clearly defining the responsibilities of all employees. We will encourage proactive employee involvement in these efforts. Incentives for extraordinary performance will be provided.

Health & Safety
Safety is the overriding value of all aspects of our business. We will continually provide a safe and healthy environment for our employees, our customers and the community. We demand safe work behavior, practices, design and systems.

Pollution Prevention
Pollution prevention is an operating objective. We strive to prevent or reduce the generation of waste at the source. Our impact on the environment is minimized through good engineering practices. Where waste cannot be eliminated, we will seek to maximize recycling. We will, where appropriate, purchase commodities with recycled content and other environmentally preferable attributes. Waste that must be disposed of will be managed in compliance with all applicable requirements.

Community
We support and participate in the design, development and establishment of sound public policy and educational initiatives that protect human health and the environment. We will work with governments and others in creating responsible laws, regulations and standards to safeguard the community, workplace and environment. We will share with the communities our performance in the environmental, health and safety areas.

Compliance
Compliance with all applicable environmental, health and safety laws and regulations is required. All of our employees, from the officer level to the front line, are responsible and accountable for compliance and have an obligation to bring issues and concerns forward for resolution. We will actively seek sound business opportunities to go beyond regulatory requirements.

Stewardship of Natural Resources
We will responsibly use natural resources, such as air, water, soils and forests, and we will help to conserve these natural resources through efficient use and careful planning. We will pursue an energy resource plan that emphasizes environmental protection, energy conservation and efficiency. We will responsibly address conditions that endanger health, safety or the environment.

Ceres
Pinnacle West endorses the Ceres Principles detailed below. By endorsing the Ceres Principles, companies not only formalize their dedication to environmental awareness and accountability, but also actively commit to an ongoing process of continuous improvement, dialogue and comprehensive, systematic public reporting. Endorsing companies have access to the diverse array of experts in our Ceres network, from investors to policy analysts, energy experts, scientists and others.

We will update our practices constantly in light of advances in technology and new understandings in health and environmental science. In collaboration with Ceres, we will promote a dynamic process to ensure that the Principles are interpreted in a way that accommodates changing technologies and environmental realities. We intend to make consistent, measurable progress in implementing these principles and to apply them to all aspects of our operations throughout the world.

The Ceres Principles
Protection of the Biosphere
We will reduce and make continual progress toward eliminating the release of any substance that may cause environmental damage to the air, water, the Earth or its inhabitants. We will safeguard all habitats affected by our operations and will protect open spaces and wilderness, while preserving biodiversity.

Sustainable Use of Natural Resources
We will make sustainable use of renewable natural resources, such as water, soils and forests. We will conserve non-renewable natural resources through efficient use and careful planning.

Reduction and Disposal of Wastes
We will reduce and where possible eliminate waste through source reduction and recycling. All waste will be handled and disposed of through safe and responsible methods.

Energy Conservation
We will conserve energy and improve the energy efficiency of our internal operations and of the goods and services we sell. We will make every effort to use environmentally safe and sustainable energy sources.

Risk Reduction
We will strive to minimize the environmental, health and safety risks to our employees and the communities in which we operate through safe technologies, facilities and operating procedures, and by being prepared for emergencies.

Safe Products and Services
We will reduce and where possible eliminate the use, manufacture or sale of products and services that cause environmental damage or health or safety hazards. We will inform our customers of the environmental impacts of our products or services and try to correct unsafe use.

Environmental Restoration
We will promptly and responsibly correct conditions we have caused that endanger health, safety or the environment. To the extent feasible, we will redress injuries we have caused to persons or damage we have caused to the environment and will restore the environment.

Informing the Public
We will inform in a timely manner everyone who may be affected by conditions caused by our company that might endanger health, safety or the environment. We will regularly seek advice and counsel through dialogue with persons in communities near our facilities. We will not take any action against employees for reporting dangerous incidents or conditions to management or to appropriate authorities.

Management Commitment
We will implement these Principles and sustain a process that ensures the Board of Directors and Chief Executive Officer are fully informed about pertinent environmental issues and are fully responsible for environmental policy. In selecting our Board of Directors, we will consider demonstrated environmental commitment as a factor.

Audits and Reports
We will conduct an annual self-evaluation of our progress in implementing these Principles. We will support the timely creation of generally accepted environmental audit procedures. We will annually complete the Ceres Report, which will be made available to the public.

These Principles establish an environmental ethic with criteria by which investors and others can assess the environmental performance of companies. Companies that endorse these Principles pledge to go voluntarily beyond the requirements of the law. The terms may and might in Principles one and eight are not meant to encompass every imaginable consequence, no matter how remote. Rather, these Principles obligate endorsers to behave as prudent persons who are not governed by conflicting interests and who possess a strong commitment to environmental excellence and to human health and safety.

These Principles are not intended to create new legal liabilities, expand existing rights or obligations, waive legal defenses, or otherwise affect the legal position of any endorsing company, and are not intended to be used against an endorser in any legal proceeding for any purpose.

CERES can be contacted at 99 Chauncy Street, 6th Floor Boston, MA 02111 USA (617) 247-0700 (ph) , (617) 267-5400 (fax), www.ceres.org

Relevant issues directly addressed by APS Policies and Procedures