Helping Government Go Solar

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Steven Eddy, AICPGovernment Relations

August 21, 2014

TEP/UniSource Energy Services

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Tucson Electric Power serves 414,000 customers in Tucson metropolitan area

UniSource Energy Services serves 243,000 customers in northern and southern Arizona

— UNS Gas: 150,000— UNS Electric: 93,000

Parent company UNS Energy acquired in August 2014 by Fortis, largest investor-owned utility company in Canada

Renewable Energy Leadership

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Springerville Solar System— Once ranked as the

world’s most productive grid-tied solar array

TEP named Solar Electric Power Association (SEPA) Investor Owned Utility of the Year in 2012

Innovative programs — Bright Tucson

Community Solar— Fixed-price (proposed

for 2015 – stay tuned)

Bright Tucson Community Solar Program

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Flexible, low-cost plan Customers buy “blocks”

of solar energy generated by local utility-scale photovoltaic systems

Program rate replaces fossil fuel charges, fixed for 20 years

Rate initially higher, but savings can be realized over time as traditional energy charges increase

Discounted rates available for bulk government buyers

City of Tucson

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10 MW of Community Solar capacity

— Contract approved in 2013, locked in before rate increase

Source: 35-MW NRG array in Avra Valley

— On Tucson Water land, generating lease revenue

Usage reflected on multiple accounts

Pima County

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5 MW of Community Solar capacity

— Approved in 2012 Source: 5 MW Prairie

Fire system near Valencia/Kolb

Usage reflected on multiple accounts

Fort Huachuca U.S. Army Base

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TEP to build, own and operate 18 MW array on Sierra Vista base Will provide system output to Fort Huachuca under existing rates Helping U.S. Army achieve its renewable energy goals at no up-front cost TEP ownership helps avoid interconnection delays, permitting pitfalls Coming online in 2014