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, email Geoff Oldfather
- J.D. Wallace, (520) 586-5157, C: (520) 235-4203, email J.D. Wallace
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 2-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 Arizona G&T Cooperatives. AEPCO owns and operates the 625-megawatt (MW) (combined gross) Apache Generating Station, located at Cochise, east of Benson. AEPCO also owns, operates and maintains 866 miles of electric power transmission line—including line owned in part with other utilities—and 36 substations to provide wholesale electric power from Apache to 6 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 AzGT Member cooperatives and customers, and helps maximize solar and other renewable tax credits. Sierra has initiated 2 utility-scale solar projects. AEPCO’s 20 MW Apache Solar project is located on AEPCO property adjacent to and northeast of Apache Generating Station. The second project includes SunAnza Phase I, a 2 MW solar array, as well as SunAnza Phase II, which includes an additional 1.4 MW solar array and a battery storage system, all on property owned by Anza Electric Cooperative adjacent to its 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 a California member, Anza Electric Cooperative, Anza.
These Member cooperatives own AzGT and, by extension, AzGT’s Member distribution cooperatives are owned by their members—the people at the end of the line who use the power.
AEPCO also serves 5 Class D energy services Members which are scheduling and trading customers and which include the Central Arizona Water Conservation District, Phoenix, AZ; Lincoln County Power District #1, Pioche, NV; Metropolitan Water District of Southern California, Los Angeles, CA; Southwest Public Power Agency, Maricopa, AZ; and Valley Electric Association, Pahrump, NV.
AEPCO is also a Member/owner of ACES, a nationwide energy management company that helps its Members and customers buy, sell, and manage energy more efficiently and with less risk. The AEPCO/AzGT Benson campus hosts the ACES West Regional Trading Center (WRTC), which benefits AEPCO/AzGT Members and customers.