Annual Independent Audit is Clean for AzGT

Annual Audit by Independent Financial Firm Moss Adams Gives

Arizona G&T Cooperatives “Clean Audit” for 2019

For Immediate Release

Contacts:

Geoff Oldfather, (520) 586-5465, C: (520) 444-3473, goldfather@azgt.coop

J.D. Wallace, (520) 586-5157, C: (520) 235-4203, jdwallace@azgt.coop

 

BENSON – Independent financial and accounting firm Moss Adams conducted its annual comprehensive audit of Arizona Electric Power Cooperative (AEPCO) and Sierra Southwest Cooperative Services (Sierra), and found no issues with their financial reporting for 2019. In the financial industry, that’s known as a “clean audit.”

Together, AEPCO and Sierra form Arizona G&T Cooperatives (AzGT). AzGT employees performed a great deal of behind-the-scenes work throughout 2019 that made the clean audit possible.

“The audit is always in the back our minds, and we’re always preparing for it,” said Arnold Murphy, AzGT manager of accounting and tax, adding that the process benefits AzGT by offering a chance for detailed self-examination.

For example, solar projects receive tax incentives to lower their costs. “We’ve been working to get a property-tax reduction from Cochise County because it incorrectly categorized our Apache Solar Project,” Murphy said. “We realized about a 50-percent reduction in the property tax rate for the solar property. For Sierra, which leases the property, that’s a big chunk of money—about $100,000 for the year.”

Every December, external auditors make a one-week, on-campus visit, followed by another two-week visit in February. During this time, auditors examine AzGT’s accounting methods, ask for hundreds of documents and question many employees.

Pete Scott, chief financial officer for AzGT, thanked Murphy’s team and the many others who provided data and information for the audit. “Kudos to you, Arnold, and to your team for another successful, clean audit,” he said. “The huge amount of work that goes on each year in support of the audit is unseen by many but is greatly appreciated.”

 

About Arizona G&T Cooperatives

Arizona Electric Power Cooperative (AEPCO) and Sierra Southwest (Sierra) together comprise the Arizona G&T Cooperatives (www.azgt.coop). AEPCO owns and operates the 605-megawatt (combined gross) Apache Generating Station, located at Cochise, east of Benson. AEPCO also owns, operates and maintains 841 miles of electric power transmission line—including line owned in part with other utilities— and 33 substations to provide wholesale electric power from Apache to six member distribution cooperatives in southern Arizona, western New Mexico, northwestern Arizona and California.

Sierra is the vehicle to develop new ways to serve the renewable energy needs of our Member cooperatives and customers, and helps maximize solar and other renewable tax credits that are available. Sierra has initiated two utility scale solar projects; the 20 MW Apache Solar project on AEPCO property adjacent to and northeast of AGS, and SunAnza, the 2 MW solar array adjacent to the Anza EC headquarters in Anza, California.

Combined, the distribution cooperatives that receive AEPCO’s wholesale power serve more than 161,000 meters representing more than 420,000 individual residential, commercial, agricultural, and industrial member/consumers.

The Class A member cooperatives that receive wholesale power from AEPCO include Duncan Valley Electric Cooperative, Duncan; Graham County Electric Cooperative, Pima; Mohave Electric Cooperative, Bullhead City; Sulphur Springs Valley Electric Cooperative, Willcox; Trico Electric Cooperative, Marana; and our California member, Anza Electric Cooperative, Anza, California.

These member cooperatives own the AzGT and, by extension, the G&T Cooperatives are owned by their members—the people at the end of the line who use the power