Supplier Code of Conduct
Pinnacle West communicates our expectations of our contractors with regard to our Ethics Program and Standards of Business Practices in our pamphlet "Doing the Right Thing-Contractors,". 

One section of the pamphlet states that our contractors are responsible to help protect the environment by complying with all company environmental rules and practices, as well as all federal, state, county and municipal environmental laws and regulations. The pamphlet is distributed to key contractors in partnership with the company's contract labor vendors. This pamphlet is available for viewing by the public on our corporate Web site (click on the link above).

Contractor Safety Program
Pinnacle West also employs a contractor safety program which communicates the minimal requirements we expect of our contractors in terms of environmental compliance and employee safety. This program is available to the public online.

Pinnacle West Supplier Diversity Program
Supplier Diversity is a significant part of APS' business strategy locally, regionally and globally. As a major purchaser of goods and services, APS has a significant opportunity to facilitate diverse business growth and to strengthen the state and local economies in all our customer service areas. APS’ success depends on our ability to understand our diverse consumers' needs and to work effectively with customers and suppliers.

We have a strong commitment towards supporting the development of Minority and Women Owned Business Enterprises (MWBE). This includes educating and informing APS employees with purchasing authority, setting specific MWBE targets, and providing mentoring and other assistance to MWBE suppliers. While every department has responsibility to help meet our MWBE goals, we have also established an internal department, the Supplier Diversity & Development (SDD) Team, which is committed to facilitating and expanding competitive business opportunities with Minority, Women, Veteran, Service-Disabled Veterans and HUB Zone 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.

Here's how to learn more about the Pinnacle West Supplier Diversity and Development Program.

2007 Pinnacle West MWBE Targets and Results
Pinnacle West set aggressive MWBE spending targets in 2007 of $44 million minimum and $48 million as stretch target. Pinnacle West exceeded both of those targets in 2007, with a total of $54.9 million spending in with MWBE suppliers. Pinnacle West's MWBE program is a major driver for MWBE business development in Arizona

Vendor Audits
Pinnacle West and APS perform audits of all vendors that provide waste disposal or recycling activities and services to company facilities. This is discussed in the vendor audits of the Waste section of this report.

Taking AAAME at Small Business
The APS Academy for the Advancement of Small, Minority and Women Owned Enterprises (AAAME) is a two-year business mentoring program designed, sponsored and administered by Arizona Public Service. AAAME CEO’s meet twice a month as a group, once a month with their assigned advisors and once a month with the AAAME Director. Since 1997, 116 small businesses in the Phoenix metropolitan area have attended business training classes, built networks, developed resources and met with individual advisors all geared toward assisting them in reaching their next level of business success.

This focused and integrated mentoring has resulted in 80 AAAME graduates, with 30 companies currently in some phase of the AAAME process. All of these businesses have gained knowledge, support, insight, resources and skills that have allowed them to succeed and thrive in their chosen business. Many of the AAAME companies have increased their revenues and net profits, increased their workforce, strengthened their market position and increased their business space which adds to the economic impact to the area. In addition, several AAAME companies have been recognized for their achievements through various award programs.

The AAAME program combines the following elements:

• It is a two-year commitment.
• There is no cost to the AAAME participant.
• It utilizes the resources of several community based organizations as well as individuals who contribute to small business.
• It is a combination of classroom training, group projects and individualized company action plans and meetings.
• It is a personalized approach towards mentoring which holds the business owner accountable for his or her own success.
• There is a continual assessment of the AAAME participant’s implementation of the program elements as it relates to the two year business targets.
• It is peer-to-peer mentoring via the CEO twice a month meetings.

While these factors are unique and valued in the community, AAAME is really about the successful implementation of solid business practices, utilizing a wide variety of delivery methods and the continual assessment of each AAAME participant’s progress in the program.

For information and/or an application, go to www.pinnaclewest.com/AAAME