Date: October 19, 2001

Time: 12:30 p.m.

Place: Arizona Corporation Commission, 1200 West Washington Street, Pipeline Safety Conference Room 101, Phoenix, Arizona 85007

Attendance: No Quorum of Commissioners. See attendance list in Attachment 1.

Topic: Environmental Portfolio Standard (EPS) Workshop

Matters Discussed:

Ray Williamson of Commission Staff welcomed everyone to the meeting. All participants introduced themselves.

The minutes from the September 21, 2001 meeting were discussed. No changes were made.

The Master Issues List was discussed. There were no changes or additions.

Reports from various utilities on their portfolio programs/accomplishments:

Arizona Public Service Company ("APS") presented its semi-annual report of portfolio performance, covering the period through June 30, 2001. APS surpassed the solar electric requirement of the portfolio for that period. APS mentioned new solar projects in Prescott, at the Gila County Fairgrounds and in Scottsdale. APS plans to install 1 MW of solar in 2002. APS is looking at possible landfill gas projects and other renewables and will commence a residential program to assist homeowners in installing solar.

Tucson Electric Power Company ("TEP") presented its semi-annual report, covering January through June 2001. TEP
tm)s 5 MW landfill gas project has been producing renewable kWh since 1999. TEP has met one half of its Portfolio requirement with the landfill gas project. In addition, during 2001, TEP will have installed over 1 MW of Photovoltaics. TEP hopes to have 30 kW of Sunshare projects by the end of 2001, and has signed up six customers for its net metering program.

Navopache Electric Cooperative ("Navopache") reported on its progress toward meeting the portfolio. Navopache is in negotiations with one or more suppliers of photovoltaic systems. Navopache has purchased landfill gas credits to meet a portion of its portfolio requirements. Navopache has developed a six-year compliance plan to meet the portfolio requirement.

AEPCO reported that it is completing its plan to meet the portfolio requirement. The plan will include four major parts: Green power, leasing, a rebate program and utility sized renewables.

Salt River Project, which is not subject to the Environmental Portfolio Standard, but has a similar Renewable Energy Program, reported on its activities. As of September 2001, SRP had renewable generating capacity of 4,400 kW. This includes a total of includes a total of 4,000 kW of landfill gas generation at the Tri-Cities Landfill and 400 kW of photovoltaics at the Santan and Aqua Fria locations. In addition SRP is developing 750 kW of low-impact hydro and 25 kW of solar covered parking. SRP has attracted 1,781 customers to its "Earth Wise Energy" green marketing program. In addition, SRP is doing photovoltaic and solar water heating demonstrations at Calex Homes.

Other Issues:

Janet Wagner form the Legal Division of the ACC talked about legal issues that have come about regarding the EPS rules. Janet also talked about where the Portfolio Rules should be located within the Commission Rule documents.

Tom Hansen reported on the Wind Committee. Those wanting to comment on wind standards should contact him at: thansen@tucson electric.com.

Dan Musgrove reported on the Landfill Gas Committee.

Dan Musgrove reported on Biomass Committee.

Paul Michaud reported on the Solar Thermal Trough Committee. Those wanting to comment on proposed Solar Thermal Trough Standards should contact him at: pmichaud@martinezcurtis.com.

There was no report on the Solar Water Heating Committee this week.

Chuck Skidmore reported for David Rowley on the Barriers Committee.

David Berry presented his proposed In-State Content. Draft wording for in-state content and activities spreadsheet were handed out and discussed.

The next meeting of the working group will be held on November 30, 2001, at 12:30 p.m. in the Pipeline Safety Conference Room at 1200 W. Washington Street, in Phoenix.

J. Beth Cockrill, Utilities Division