Benson – A request for a reduction in the wholesale rates for both generation and transmission service has been approved by the Arizona Corporation Commission (ACC), a move that will allow Arizona’s G&T Cooperatives to lower the rates paid by its member distribution cooperatives.

The ACC voted to approve the rate reduction Wednesday, more than a year after the G&Ts filed the rate cases in July and August 2012. The vote was unanimous.

The two rate cases approved by the ACC result in a combined wholesale rate reduction of 5.85 percent to member cooperatives.

“We have worked very hard in the last few years to reduce our costs and we believe strongly that those savings should be passed on to our cooperative members,” said Peter Scott, CFO.

“With the support of our member cooperatives we put on a strong case that our rate reduction was warranted, and we are gratified by the unanimous support of the commissioners today,” Scott said.

Patrick Ledger, CEO, said the rate reduction was made possible by the G&Ts aggressive effort to reduce fuel and other operational costs.

“Our most important objectives in the last few years have been to reduce costs and improve our operation to provide better value to our member cooperatives and their customers, and to ensure that we are competitive into the future,” Ledger said.

Arizona’s G&T Cooperatives

Arizona Electric Power Cooperative (AEPCO), Southwest Transmission Cooperative (SWTC) and Sierra Southwest Cooperative Services collectively make up Arizona’s G&T Cooperatives.

AEPCO owns and operates the 605 (combined gross) megawatt Apache Generating

Station at Cochise, Arizona, east of Benson.

SWTC owns and maintains more than 620 miles of transmission lines and 27 substations

that transmit wholesale power from the Apache Generating Station to six Member Distribution

Cooperatives in southern Arizona, northwestern Arizona in Bullhead City and Mohave County,

and Anza in California.

Combined, the Distribution Cooperatives that receive AEPCO’s wholesale power serve

more than 147,000 meters representing more than 350,000 individual residential, commercial, agricultural and industrial customers.

The six Class A Member Cooperatives that receive wholesale power from AEPCO

include five in Arizona; Sulphur Springs Valley Electric Cooperative in Willcox, Duncan Valley

Electric Cooperative in Duncan, Graham County Electric Cooperative in Pima, Trico Electric

Cooperative in Marana, Mohave Electric Cooperative in Bullhead City, and the California

member, Anza Electric Cooperative in Anza. These member cooperatives own the Arizona’s G&T Cooperatives and by extension, the G&T Cooperatives are owned by their members, the people at the end of the line who use the power.

The cooperatives are also Rural Utilities Service (RUS), a federal agency, borrowers.

The G&Ts and its member cooperatives are not-for-profit utilities.

FOR IMMEDIATE RELEASE Contact: Geoff Oldfather, Communications and Public Relations Manager (520) 586-5465, C: (520) 444-3473.