Compliance with all applicable laws and regulations is a minimum performance standard and all our managers and employees are required to uphold regulatory compliance as part of their daily activities and business planning.  We consider compliance the foundation of our sustainability efforts, with our focus really being "beyond compliance" in that we look for innovation in our business practices to achieve the best sustainabile practices and results. 

As an energy supplier and producer, we are subject to environmental, health and safety regulations on the federal, state, county and local levels. In addition, the Four Corners Power Plant located on the Navajo Nation near Farmington, New Mexico, works with the Navajo Nation Environmental Protection Agency to address certain environmental issues.  We maintain a goal of zero notices of violation (NOVs) resulting in fines or penalties. Success in meeting this target is reflected in individual employee performance evaluations and compensation.

In 2007, APS received the following Notice of Violations (NOV's):

1. On November 2, 2007, Maricopa County issued NOV # 100900 to Palo Verde for an alleged violation of our PM10 permit limits based on cooling tower testing done in 2005. This NOV was for violating our monthly permit limits.  This NOV was resolved along with two previous NOVs (from 2005 and 2006) from Maricopa County for a total of $79,619 in fines.
2. An NOV was issued on June 20, 2007 at the West Phoenix Power Plant for a permit deviation which resulted from an equipment malfunction that occurred while the unit was still in normal operation and descending in load. A $2,100 fine was paid to Maricopa County to resolve this NOV.
3. An NOV was issued to our Energy Delivery group in November for not obtaining a Stormwater Discharge permit coverage for a utility relocation project in Sedona. APS subsequently obtained coverage from ADEQ, and no further action was taken by the agency.