News Release: Arizona Electric Power Cooperative, Inc. (AEPCO) Receives Historic Approval to Advance Energy Reliability for Rural Arizona

FOR IMMEDIATE RELEASE:

October 17, 2023

Contact: Chris Jimenez, Director of Energy Services and Project Development (520) 586-5465, cjimenez@azgt.coop

Benson, AZ - October 11, 2023 - AEPCO, a not-for-profit Member-owned electric Generation and Transmission (G&T) Cooperative, received approval by the Arizona Corporation Commission (ACC) to finance four efficient, quick-start, and fast-ramping natural gas turbines. The unanimous vote heralds an exciting new chapter in the electric G&T Cooperative's plan to modernize its power generation resources, improve reliability, and support integration of large-scale solar facilities for rural Arizonans.

Mr. Jim O’Connor, Chairman of the ACC, expressed his appreciation for the outpouring of support for AEPCO's initiatives during the Commission's recent proceedings, stating, "We have with us today quite a large number of folks who are here to express their support for AEPCO, and I want to acknowledge them from the bench this morning for their active support. We love people speaking out when we're dealing with a matter. It's critically important to each and every commissioner."

Ms. Katie Hardman, AEPCO's Manager of Energy Services, emphasized the importance of community engagement, saying, "The engagement and incredible support from the communities for these projects demonstrates that electric cooperatives really are democratically-driven and committed to delivering reliable and cost-effective projects that people want."

AEPCO continues to move forward with its Reliable Energy Plan for Rural Arizona. In addition to the development of additional natural gas turbines, AEPCO also announced its new Apache II Solar, a 294 MWdc solar / 940 MWh Battery Energy Storage Project that is being developed concurrently at Apache Generating Station and is expected to be one of the largest cooperative solar projects in the nation.

AEPCO’s plan also includes collaborating with Mohave Electric Cooperative, Inc. (MEC) to diversify its power generation resources by establishing a new plant site in Mohave County. The Mohave Energy Center will include two efficient, quick-start, and fast-ramping natural gas turbines situated near MEC's existing solar and battery energy storage facilities. This diversification of resources will enhance reliability for AEPCO and MEC's consumer-Members while providing economic benefits to the communities they serve.

AEPCO's forward-looking plans underscore its commitment to sustainable and reliable power solutions for rural Arizona, highlighting the organization's dedication to meeting the energy needs of its Members in an evolving energy landscape.

AEPCO is the generation, transmission, and energy services provider for electric distribution cooperatives and public utilities in Arizona, California, and Nevada. Headquartered in Benson, Arizona, AEPCO operates with its sister organization, Sierra Southwest Cooperative Services, Inc. (Sierra) under the umbrella of Arizona G&T Cooperatives. AEPCO owns and operates Apache Generating Station, situated in Cochise County, which has been under AEPCO's operation since 1961 and is equipped with existing natural gas and electric transmission infrastructure.

For more information about AEPCO and its future projects, please visit azgt.coop.

Arizona Electric Power Cooperative, Inc - Sierra Southwest Cooperative Services, Inc

P.O. Box 670 - 1000 S. Highway 80 - Benson, Arizona 85602 - (520) 586-5000 Phone - www.azgt.coop