Our EHS policy and EHS Management System (EMS) sets the framework, goals and objectives of our EHS activities. In addition, APS sets more specific targets in certain key EHS areas. These targets are integrated into corporate and departmental level business plans, and are included as part of employee performance reviews and as a component of corporate incentive pay.

In 2005, APS developed a new long-range business plan encompassing 2005 to 2010. This Business Plan identifies safety and the environment as two of our six core values. The Business Plan establishes specific short- and long-term corporate targets for environmental, safety and customer satisfaction, including the following targets to be met by 2010:

Safety

• To achieve the number one ranking among like-sized investor-owned utilities for OSHA recordable injuries (all injury incident rate, lost work incident rate and severity incident rate)
• To achieve a green rating (no negative findings) for nuclear safety performance in the areas of reactor performance, maintenance rule systems and collective radiation exposure

Environmental

• To reduce carbon intensity by 10 percent from a year 2000 baseline
• To implement voluntary emissions-reduction programs at the Cholla and Four Corners Power Plants
• To meet environmental portfolio standard requirements for renewable energy

Customer Satisfaction

• To achieve a 44 percent very satisfied and 92 percent satisfied rating on customer satisfaction survey