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A Word from Our Chief Executive Officer
Donald E. Brandt, Chairman and Chief Executive Officer of Arizona Public Service
As we complete a historic and eventful year we are again reminded that APS has a significant impact on the communities we serve. This impact extends to companies from whom we purchase the goods and services that are essential to our operations. In 2009, almost every business in Arizona experienced the adverse affects of our declining economy, with some businesses more than others.
With 123 years of history serving our state, no one knows Arizona or our customers better than we do. How we operate our business has an impact on the local economies of our community. APS remains committed to cost management and greater cost efficiencies. In light of the economic downturn we have all been experiencing, we have reduced annual operating expenses by over $100 million and reduced capital projects through 2012 by about $1 billion, and will continue to pursue operating savings without compromising the our ability to provide safe and reliable service. With the current economic climate and cost-cutting measures affecting the procurement of products and services across the company, Supply Chain found themselves faced with numerous challenges in 2009. Though certainly a challenging year, we accomplished many great things.
One of our most important assets is the strong associations we have cultivated with all of our partners. We are appreciative of our relationships with our community partners and chambers of commerce that serve and represent diverse businesses. Through our Supplier Diversity Program, we reach out to diverse communities of suppliers and seek competitive businesses that can partner with us. Throughout the entire enterprise, we have been able to successfully demonstrate that supplier diversity is smart business. Additional competition is good for our company, our communities’ businesses and our customers. We rely on diverse suppliers to provide resources that allow us to do our jobs successfully and efficiently. I take personal ownership for the results of the Supplier Diversity Program and ensure we will continue to set aggressive goals for increasing the amount of business we do with diverse businesses. I support them in their efforts to make sure we have the best resources at our disposal.
Looking ahead, the next few years are going to continue to be very challenging for every business in Arizona. Community leadership is an important part of the APS culture. As a major purchaser of goods and services, APS has an opportunity to help diverse businesses grow and to strengthen the foundations of local economies. We encourage the diverse business community to continue to be competitive in this difficult economic climate.
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