Portland, Maine (Platts)--30Jan2009

Arizona Public Service unveiled a long-range resource plan that calls for
spending about $18 billion to add renewable, nuclear and energy efficiency
capacity to meet the Phoenix-based utility's needs through 2025.

APS expects to need 6,500 MW by 2025 to meet growing customer demand and
to replace expiring power purchase agreements, the resource plan says. To meet
it, APS would add more than 1,660 MW of renewable capacity, largely solar; 800
MW of nuclear capacity and 587 MW of energy efficiency programs. The utility
also would need about 3,000 MW of peaking resources.

APS has no plans for new coal-fired generation. "APS believes that the
risk of future climate change legislation and the resulting potential for
significant increases in cost currently make coal-fired generation an
unattractive resource choice," the report says.

The utility is planning only small amounts of new natural gas-fired
generation. As a result of the proposed generation mix, APS expects its carbon
emissions to remain essentially flat through 2025.

On the nuclear front, APS owns a 1,147-MW stake in the Palo Verde nuclear
plant near Wintersburg, Arizona. The utility expects to begin planning over
the next three years for additional units that could be in place by 2022. APS
is calling for significant new transmission to bring solar and nuclear power
from the Palo Verde hub into the Phoenix area.

Because of an economic slowdown in Arizona, APS does not expect to need
new capacity, beyond current plans, until around 2015.

APS developed the resource plans over the last 18 months, with public
input. The Arizona Corporation commission will review the utility's plan.