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Compliance with all applicable laws and regulations is a minimum performance standard at Pinnacle West and all our managers and employees are required to uphold regulatory compliance as part of their daily activities and business planning. We consider regulatory compliance the foundation of our sustainability efforts, with our focus being "beyond compliance" in that we look for innovation in our business practices to achieve the best sustainabile practices and results.
As a major energy producer and distributor with hundreds of company sites across Arizona, we are subject to numerous 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. Our corporate goal is 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 2008, we received the following NOVs:
1. On Jan. 8, 2008, the West Phoenix Power Plant received a NOV from Maricopa County. Combined Cycle 4 (CC4) had been operating in routine, normal operating conditions for several hours when an equipment malfunction of the combustion control system caused the CC4 dry-low burners to go from a pre-mix mode into a lean-lean mode, resulting in NOx emissions exceeding the permit limit for a short period of time. The unit was shutdown and the equipment repaired. This NOV was settled with Maricopa County with an associated fine of $2,158.
2. On June 9, 2008, the West Phoenix Power Plant received a NOV from Maricopa County. CC4 was being brought up in load when a mechanical problem occured causing the unit to exceed the NOx startup/shutdown limit. The unit was shutdown and the mechanical problem corrected. This NOV was settled with Maricopa County with an associated fine of $1,902
3. Maricopa County issued a dust permit violation to the Varney Substation. APS believed this substation was covered under a block permit, however the County indicated in the NOV that the substation needed an individual permit. The permit was obtained and this NOV was closed with no associated fines.
4. In 2008, Maricopa County issued four dust NOVs to SunCor on building projects, which were closed with associated penalties paid by SunCor of $18,292.
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