ACCELERATED ""DIFiIBUTION DEMONSTRATION SYSTEM

DOC. DATE: 87/06/30 NOTARIZED: NOACCESSION NBR:8803230059FACIL:

AUTH.NAMEPATTERSON,D.

RECIP.NAME

AUTHOR AFFILIATIONAffiliationNot AssignedRECIPIENT AFFILIATION

REGULATORY INFORMATION DISTRIBUTION SYSTEM (RIDS)l

DOCKET

r.-<e'UBJECT:

"Arizona Power Authority 29th Annual Rept."DISTRIBUTION CODE: M004D COPIES RECEIVED:LTR + ENCL I SIZE:TITLE: 50.71(b) Annual Financial Report

NOTES:

RECIPIENTID CODE/NAME

PD

INTERNAL: A'EOD/DOANRR/PMAS/PTSB12

EXTERNAL: LPDR

COPIESLTTR ENCL

RECIPIENTID CODE/NAME

PM

EOD/DSP/ PABG IL 01

NRC PDR

COPIESLTTR ENCL 8

A

0TOTAL NUMBER OF COPIES REQUIRED: LTTR ENCL 6

i

ArizonaPower

Authority

t1I

'I

b

f

I IC

In

)A

IF

29thAnnualReport

8803230059 870b30PDR N IBC8803230059 PDRi

p,oi d'~

Arizona. Power AuthorityTwenty-Ninth Annual Report

1810 West Adams, Phoenix, Arizona 85007For the year ended June 30, 1987

Table of Contents

Letter to the Governor

Boulder Canyon Project

Transmission System

The Arizona Power Authority

Contracts for I-Ioover Power

I.Ioover Uprating Program

I-loover Modifications Project

Navajo Marketing Plan

Operations

Financial Data Section and Audit Report

Auditors'pinionSchedule of Power and Energy Sales

Commission of the Arizona Power Authority

Personnel I iighlights

1

2

5

6

8

10

11

12

13

27

28

30

32

To GovernorEvan Mecham,

The following is the 29th Annual Report ofIbe Arizona Power Autbori0> which covers tbe fiscalyear ended June 30, 1987.

This bas been an exciting and very productive year for the Authority.

Afteryean ofintense negotiations, a new 30 year Power Sales Contract for Hoover hydroelec-tricpoiver with tbe Western Area Power Adminislration (t V'estern) ivas executed and irnple-mented on June 1, 1987. A Fir7ri Transmission Agreement with Western to deliver this poweralso became effectiue inJune, 1987.

On April 1, 1987, tbe Authority rerrrarketed 489,820,000 in poiuer resource revenue bonds tofinance its share of the Hoover Uprating Program —a program authorized by the HoouerPower'lant Act of 7984 to rewind existing generators at Hoover, thus creating an additional188,000 l:Wofcapacity to be sold by the Authorig> to Arizona purchaserx

On June 1, 1987, tbe Authority entered into new 20 year Power Sales Contracts under whichlow cost Hoover power is noiu'being sold to 39 cuslorners throughout the State —an addilionof22 new cusloniers to tbe lisl ofpreuious Hoouer contractors.

Authorio> staffbas been actively involved this year in providing technical assistance and supportto its customs'or implementation ofConservation and Renewable Lnergy (C &RE) Programswhich willresult in significai it State-wide energy savings.

Tbe Arizona Power Authority recognizes the importance ofproviding assistance in tbe develop-ment and maintenance oflow cost energy resources tubr'ch willbe beneficial to the State ofArizona and reniains committed to this goal.

Dwight PattersonChairman

Boulder Canyon Project

p.

*r

*'If'.=''»

Hoor'arn and Lake,Vead r«uru<rrof rhe l'i, aunrru ofRarlumariou1

n an effort to control and regulate theflow of the Colorado River, Congress, in1928, passed the Boulder Canyon Project

Act authorizing construction of Hoover Dam,by the United States Bureau of Reclamation.The dam site is located in the Black Canyonbetween Nevada and Arizona. Construction ofthe dam began in 1931 and was completedin 1935. The dam was dedicated by FranklinD. Roosevelt on September 30, 1935. Thegenerating facilities were completed in 1936,and the first commercial power productionbegan in October of that year. Hoover wasthe greatest dam constructed in its day. Anarch-gravity structure rising 726 feet abovebedrock, Hoover is still the western Hemi-sphere's highest concrete dam. It is 660 feetthick at its base, 45 feet thick at its crest, andstretches 1,244 feet across Black Canyon.There are 4 4 million cubic yards of concretein the dam, power plant and relatedstructures.

'~k +i-.

Flooding belOw HOOrn'anr, 1983 tao'.rl ofvs arrnrru oferrrrororlout

Hoover Dam's reservoir, Lake Mead, is thelargest man-made lake in the United States—it backs up 110 miles behind the dam andis capable of storing nearly two years of aver-age Colorado River flow. This water isreleased in regulated, year-round flow as

nee'ded. As it passes through Hoover's tur-bines, the water generates low-cost hydroe-lectric power for use in Nevada, Arizona andCalifornia.

At the time of construction, Hoover powerplant was the world's largest hydroelectricinstallation. It is still one of this country'largest facilities, with 17 generating units,having a total capacity of approximately1,448,000 kilowatts. More than 4,000,000,000kilowatt-hours of energy are generatedannually.

Rmnovlngrotorfor rtfrratfrrg uerf: at Hooter Porrn Planttoourtmy ofre 0> nn>r ofala»wufo>O

9~r~In 1984, with the passage of the HooverPower Plant Act, authorization was,given touprate the existing units at Hoover Dam,which will increase the power plant's capac-ity by more than 500,000 kilowatts providinga total capacity of approximately 1,951,000kilowatts. Work on the upratings began in1985 and is expected to be completed in1992. The non-federal funds for this upratingprogram are being provided by the Hooverallottees. g

I >p>>IS 'JAN, tr>fear>++Qj)>,'I IrI i r$ t

, Inflecting stator rufrfngfor ripratfng tres(Ct>rutay ofrtS Demur ofReclnmatlong

Transmission System

SLGII«M

LAS YEGASBOVLOER CITY OvvlIAREA INKI

1«vv

I'ITT~

IAK(COKCAP

N\IOIII

KEIKER 44NEAOGATE ROCK

«411

~OVER DAM

DAVE(DAM EE*I«0'

ovv IIELLTCP

1

Brood Cooyolv

R lI Z 0VALI.EYAOMO I

ELAGSTACF~

P RTSCOTT

010010ll~ Soow(lolto

III(00

lvR

B~lIIo

NIX

II

EAGLE EYE T v PINNACLEPEAK

MESA

ILIBERTY

«IVOIDOME TAP

T «IKRI4 1

vv«0 GILA WELLTON MONAWK

«IV«0IIIMARICOPA

~O11 I«KCASA GRANDE

10

OOLIOGESIGNAL

IOH

Eb'-0CLE

ToolEIIK

SOINOO

SAeeTERO10 11

TVCSOA(0

TUCSON

~IEV

NOGALES TAP

%hssern area po(eer adminisoTTiione

greens udllzed by Arizorsa Pou,er Auibon'yfor delivery ofHooLer po Teer.

iCET

ROIOIII

APACNE

LEGENDA Non-Federal SubstationA Federal Substation

Q Hydro-Generating Station

Q Non-Federal Steam-Generating Station~ Parker-Davis Project~a Pacific Northwest-Pacific Southwest Intertie Project

The Arizona Power Authoritynder the 1928 Boulder Canyon Pro-ject Act and the Boulder Canyon Pro-ject Adjustment Act of 1940, the State

of Arizona ("in its sovereign capacity") wasallocated approximately 17.5 percent of firmenergy from the Boulder Canyon project(Hoover Dam). This meant tliat only theState, itself, or an agency acting on the State'behalf, could receive Arizona's share of IIoo-ver energy. Therefore, in 1944, the ArizonaLegislature passed an Act which created theArizona Power Authority (thc "Authority") toreceive and market Arizona's share of I-Ioo-ver power. In 1945, the Authority enteredinto its original Hoover power contract withthe United States.

James Dartlea, Attontey Les Onttsby,'tlttrlrtlstrator

Under the Act, the Authority's functions andresponsibilities relate principally to obtainingand distributing electric power generated bythe mainstream waters of the Colorado River.The Authority, however, is not limited tothese activities, and its enabling legislationcarries broad powers in the field of develop-ment and marketing of electric power. TheAuthority is empowered to acquire, constructand operate necessary electric generationand transmission facilities and to enter intosuch agreements and contracts as may berequired. It may also issue rcvenuc bonds toacquire and construct such facilities. Theright of eminent domain lias been granted tothe Authority to allow acquisition of propertyto be used for purposes deemed necessaryto carry out its purposes.

The purposes of the Authority are effectuatedby a five-member Commission which is

appointed by the Governor, subject to confir-mation by the Arizona State Senate. To pro-vide continuity in the administration andoperation of the Authority, Commissionersare appointed to staggered terms of six yearseach. The Commission elects from its mcm-

~ Ir

l(tclwrtlWllsott, Asslstattt Atitttittistrator Terl Afos, pouter iVattager

bcrship a Chairman and a Vice Chairmanwho hold office for terms of two years, tobegin and end on the first Monday inJanuary.

An Administrator is employed by the Com-mission to execute the day to day operationsof the Authority. g

Contracts For Hoover Powern January 20, 1987, the ArizonaPower Authority Commissionauthorized its Chairman to execute

a new 30-year Hoover Power Sales Contractwith the Western Area Power Administration(on behalf of the United States). The contractbecame cffeaive on June 1.

Under the contract, the Authority is entitledto 189,000 kW of existing Hoover capacityand 645,989,000 kWh of associated energy, as

well as 188,000 kW of new Hoover capacityand 212,000,000 kWh of associated energyfrom the Uprating Program. In addition, theAuthority will have new priority rights to thefirst 200,000,000 kWh of excess energy gener-ated due to above normal water flow.

The Authority entered into new 20-year con-tracts for Hoover power with Arizona cus-

tomers on June 1. Hoover power is nowbeing sold to 39 customers within the State.

In the past, only 17 Arizona entities receivedpower from Hoover.

The primary customers for Hoover powerwithin the State are irrigation and electricaldistricts. However, under the new contracts,Hoover is also now allocated to cities, towns,private utilities, Indian communities, munici-palities, cooperatives and the Central ArizonaWater Conservation District, which will useits allocation for the pumping of Central Ari-zona Project water.

A schedule of the Authority's 39 customersand their respective allocations follows. Q

Arizona Power Authority Allocations

NEW SCHEDULES A AND 8 ALLOCATIONS AT GENERATION

NEwSCHEDULE A

ALLOCATIONS

kW kWh

NEWSCHEDULE 8

ALLOCATIONS

kW kwh

NEW TOTALSCHEDULES A and 8

ALLOCATIONS

TOTAL TOTALkW kWh

2,450 8,389,000 3,840 4,327,000 6,290

2,980 10,201,00 0

0 0

0 930

Aguila Irrigation District.....Avra Valley Irrigation 8c

Drainage District......... 630 2,168,000 1,010 1,138,000 1,640

Buckeye Water ConservationDistria.. 0 2,980

Central Arizona WaterConservation District*..... 0 0 0

Chandler Heights CitrusIrrigation District......... 930 3,164,000 0

Cortaro-Marana IrrigationDistria 6,440 22,003,000 0 0 6,440

Electrical District 1, Pinal..... 5,190 17,738,000 5,460 6,157,000 10,650

Electrical District 2, Pinai..... 19,450 66,473,000 9,740 10,989,000 29,190

'Pursuant to the Resolution and Final Ifooter Power h1arketlng Plan, ifcertain conditions are met, the Authority will recapture all orofSchedule B Power for the benefit of the Central Arizona Water Consavuton District.

12,716,000

3/06,000

10,201,000

3,164,000

22,003,000

23,895,000

77,462,000

a pro rata ponion

NE>>V SCHEDULES A AND 8 ALLOCATIONS AT GENERATIONNEW

SCIIEDULE AALLOCATIONS

NEWSCI IEDULE 8

ALLOCATIONS

NEW TOTALSCIIEDULES A and 8

ALLOCATIONS

ENTITY kW kWh kW kWhTOTAL

kWTOTAL

kWh

Electrical District 3, Pinal.....Electrical District 4, Pinal.....Electrical District 5, MaricopaElectrical District 5, Pinal.....Electrical District 6, Pinal.....Electrical District 7, MaricopaElectrical District 8, MaricopaHarquahala Power District....Maricopa Water District......McMullen Valley KVater

Conservation hDrainage District.........

Ocotillo 3VaterConservation District......

Queen Creek Irrigation DistrictRoosevelt Irrigation District...Roosevelt Water

Conservation District......Salt River Project...........San Tan Irrigation District....Silverbell Irrigation 84:

Drainage District.........Tonopah Irrigation District ...Wellton-Mohawk Irrigation ~%

Drainage District.........City of Mesa..............City of Page

City of Safford............Town ofThatcher..........Town of Wickenburg........Ak-Chin Indian Community...Arizona Electric Power

Cooperative............Arizona Public Service

Company..............Citizens Utilities Company....Papago Tribal UtilityAuthoritySan Carlos Project..........Tucson Electric Power

Company..............

10,710

19>450

350

14,770

8,010

10,500

13,390

2,490

8,840

36,613,000

66,473,000

1,208,000

50,476,000

27,371,000

35,902,000

45,749,000

8,495,000

30,215,000

18,220

6,450

0

3,100

8,420

1,490

10,810

3,850

2,980

20,547>000

7,271,000

0

3,494,000

9,499,000

'1,678,000

12,185,000

4,339,000

3,365,000

28,930

25,900

350

17,870

16,430

11,990

24,200

6,340

11,820

57,160,000

73,744,000

1,208,000

53,970,000

36,870,000

37,580,000

57,934,000

12,834,000

33,580,000

2,390'1,770

3,220

6;760

38,790

520

710

1,550

8,175,000

6,043,000

11,020,000

23,106,000

132,589,000

1,777,000

2,417,000

5,297,000

0

2,760

4,940

6,540

25,550

1,340

0

2,410

0

3,108,000

5,570,000

7,377,000

28,815,000

1,513,000

0

2,721,000

2,390

4,530

8,160

13,300

64,340

1,860

710

3,960

8,175,000

9,151,000

16,590,000

30,483,000

161,404,000

3,290,000

2,417,000

8,018,000

2,910 9,953,000 5,200

5,140

'1,040

2,080

1,050

2,290

1,110

5,864>000

5,794,000

1,173,000

2,345,000

1,185,000

2,580,000

1,255,000

8,110

5,140

1,040

2,080

1,050

2,290

1>110

15,817,000

5,794,000

1,173,000

2,345,000

1,185>000

2,580,000

1,255,000

3,430 3,870,000 3,43Q 3,870 000

24,890

2,910

2,470

2,570

28,064,000

3,283,000

2,780,000

2,896,000

24,890

2,910

2,470

2,570

28,064,000

3,283,000

2,780,000

2,896,000

9 620 10 848 000 9 620 10 848 ppp

3,800 12,974,000 5,290 5,970,000 9,090 18,944,000

TOTAL: 189000 645,989,000 188.000 212,000,000 377,000 857,989000

Hoover Uprating Program

~ '!

~ ~ 4~ 'I K

« ~ ~Ital Ill ~ 4 ~ Y~ ~ ~ ( ~ 0 ~ I4 ~ 0\8% 4 I 4 ~

t

4t

j ~ W+sip" J

t

~ ttI ~ICaCSe~: t«~~ ll

> 1'i

III5

I

Rnnovtttg rotor at Hooter Pouter Plant for trprattttg uerl. tco ~ay ofvs ~ri@tt~e )

n 1985, the U.S. Bureau of Reclamationbegan a prognm (authorized by theHoover Power Plant Act of 1984) of

uprating the existing 17 generators at HooverDam by replacing existing generator wind-ings with those of increased electrical capac-

ity. When complete (projected to be in 1992),the Uprating Program will increase the totalcapacity at Hoover by approximately 34 per-cent. Non-federal financing for the prognmis being provided by participants from Cali-

fornia, Arizona and Nevada.

In order to provide Arizona's proportionateshare of the uprating cost, the Arizona PowerAuthority issued $98,425,000 in powerresource revenue bonds in December, 1985.The bond proceeds were deposited into anescrow account until contracts with Westernand Arizona customers were executed. OnApril 1, 1987, the bonds were rcmarkcted inthe amount of $89,820,000. (The decrease inthe bond issue amount is attributable to a 58percent reduction in long term interest ratesfrom the date of original issue.) Q

IDIO 0 ICP I'IOkk)ID

~ l(IO tl I,(

( ee»

ARIZONA POWER AUTHORITY1 ~~~mw~«e ~~w~ ~ TOWtk ktSOVk(t ktYTHVtSOHO,TTSSStk(tS

O(OOYTA V(AATD(OTAOHCTTI~ I 11 1 I I ~+e 1

«e «~D(TTATST DATC MATOAITYOATC DA'lto DATE

OkI

IktODDIDP'IIIOIDIOID

, (I IT- ~i

(iI '»W\

c»pee«(epeeegtcl

, CUSII

'

-DTOISTtktDOWHt(D ',

'*I

th)((O(tALDO(D DOILAIS

«I ~ ~ wp ~ ««1«1 «« ~ ~

~C~'«11 ' I PIPC« «ee ('(~('(MI h I ~ « ~ 1 1 I

c«eel »««««ee«

"I'.»

)

'1

Hoover Modifications Project

i

?I QJ'

H

n application, filed jointly by theArizona Power Authority and theColorado River Commission of

Nevada, to study the feasibility of construct-ing a new underground power plant atHoover Dam is now being considered bythe Federal Energy Regulatory Commission(FERC). (The project is known as the HooverModifications Project.)

L'tepvt itlagnttssott, Assistant Potter S tet a erErttest Gregg Pottn Sdxvittler

If this project proves to be feasible, it isanticipated that an additional 500,000 kilo-watts of capacity would be available to thetwo states. The two state agencies propose toprovide non-federal financing for the projectthrough the issuance of revenue bonds. Q

S

Ginger SChtnrtz Atttlmrto SecretaryDonna Robitts Adntttttstratite Secretary

Navajo Marketing Plan

epresentatives from various Arizonaentities (including the Arizona PowerAuthority) and the Western Area

Power Administration are currently workingto finalize a plan to market Navajo Generat-ing Station surplus power (Navajo MarketingPlan) to comply with the provisions of theHoover Power Plant Act of 1984. Revenuesfrom the sale of such power will be utilizedto pay for the costs of the construction ofauthorized features of the Central ArizonaProject.

l. j

The Navajo Marketing Plan is of particularinterest to the Authority because of its rela-tion to the final Hoover Power MarketingPlan adopted by the Authority in June, 1985,and its effect on the recapture of I.looverSchedule 8 power and use of Schedule C

energy by the Central Arizona Water Conser-vation District as required by the Authority'spower co'ntracts with its customers. Q

Frank Botijtli AccountantRosctnary Anfwlt,Assistant Accountant

tr

Dace Soutktcord>, Programmer AnalystDon Esgar, Cttstomcr Scrvlccs and Contracts Atanagcr

Operations

n! !

t the end of the fiscal year, June 30,1987, the storage in Lake Mead was23,886,000 acre-feet of water at the

lake elevation of 1,206.6 feet. During the fis-cal year, water released through power tur-bines was 14,800,000 acre-feet producing6,880,000,000 kilowatt-hours of energy.

ll!

(

Idtl

l !

'"I5Well testtng demottstratton In eonjunetlon artttt tlw AutlmrtsysConsennttott and RenettvSle Enemy Program.

The Authority, during this period, received643,195,000 kilowatt-hours of the energy atHoover Dam.

Beginning June 1, 1987, the Authority pro-vided firming energy to customers whodesired the additional energy to firm theirHoover entitlements. During the period ofJune 1987, the Authority provided 34,637,000kilowatt-hours of firming energy.

The Authority also purchases thermal-generated energy under wholesale power.purchase contracts with the Arizona PublicService Company and the Arizona ElectricPower Cooperative. The power is sold atwholesale rates to Electrical District Nos. 4and 5 of Pinal County and No. 8 of MaricopaCounty. During fiscal year 1987, the Authoritydelivered 20,565,182 kilowatt-hours ofthermal-generated energy to theseDistricts. Q

~!!

!lla!ntenanee uerl. on tlm Autlmrtty's ED.5 substatton.

Financial Data. Sectionand Audit Report

Revenue Dollar Distribution

Stcam Sales 20X Other 5X

Hydro Sales 73X Interest Income 2X

Expenditure Dollar Distribution

Transmission 19X Otltcf 1X

Purchased Popover 72X Administrative &. General 8X

tArizona Power Authority(An Agency of the State of Arizona)

APA General Fund, Hoover Energy Fund, Hoover Uprating Fundand Combined Balance SheetsJune 30, 1987 and 1986

APA GENERAL FUND

1987 1986

ASSHSPROPERTY, PLANT AND EQUIPMENT, Net (Notes 1 and 3).....PRELIMINARYSURVEY AND INVESTIGATIONCOSTS (Note 4) ..DEFERRED COSTS —HOOVER UPRATING PROJECT (Note 5) ..BOND ISSUANCE COSTS, NET..

INVEST$$ IENTS:Certificates of deposit —at face amount ..

CURRENT ASSETS:

CashTemporary investments, mainly certificates of deposit.......Accounts receivable:

Customers'ower purcliases.Due from (to) other fund .

Interest receivablePrepaid purchased power and other assets

Total current assets....................TOTAL .

2,000,000 2,000,000

741,283850,000

788,662660,275

84,134425

3,124,779

880,936850,000

188,793

99,362425

2,019,516

$ 5,654 645 $5 014 032

$ 314,659 $ 330,429

215,207 664,087

FUND EQUITY AND LIABILITIESFUND EQUITY:

Contributed capital .

Retained earnings (Notes 2 and 8):Allocated:

Investment in property, plant and equipmentProperty replacement reserve .

Preliminary survey and investigation costs.General reserves .

Unallocated .

Total fund equity.

314,659404,260215,207500,000

3 443 157

4,886 283

330,429383,875664,087500,000

2.917 170

4,804,561

$ 9,000 $ 9,000

BONDS PAYABLE (Note 7).LESS FUNDS HELD BY TRUSTEE (including $2,346,508 of unamortized

premium on investments)

CURRENT LIABILITIES:Power contracts payableNote payable (Note 6) .

Bonds payable (Note 7).Less funds held by trusteeAccounts payableAccrued interest payable (Note 7) ..

Total current liabilities.

TOTAL

768,362

768,362

$5,654,645

188,849

20,622

209,471

$5,014,032

See notes to financial statements.

HOOVER ENERGY FUND HOOVER UPRATING FUND COiMIIINED

1987 1986 1987 1986 1987 1986

$ 3,425,351 $ 1,265,991

2,769,402

2 999 800

$ 314,659

$ 215,207

3,425351

2,769 402

4,999,800

$ 330,429

$ 664,087

1,265 991

2,000,000

$ (128,689)650,000

146,094(649,289)

94

$ 160,716650,000

475,31210,9867,018

(178,683)2,496,095

939,607(10,986)

1,667,811287,071

1,940

(10,986)2,881,837

433,9113,996,095

1,874,363

1,752,039287,496

1,043,5921,500,000

664,105

2,988,217425

18 210

$ 18,210 $1,304,032 $ 14,395,468

1304032 5200915 2,872 791

$ 4,138,782

8,343,904

$ 20,068,323

6 196 339

$ 10,456 846

$ 9,000 $ 9,000

$ 10,948 $ 500,000~10,948) 257 585 ~$ 103 428)

.0. 757,585 ~103 428)

89,820,000

~77,918 673)

314,659404,260215,207510,948

3,328,781

4 782,855

89,820,000

~77,918,673)

330,429383,875664,087

1,000,0003,174,755

5,562 146

18,210

546,447

11901 327

861,763

148,8361 586 970

$ 1,031,57198,425,000

(98,915,638)499,956

3 097 893

11,901,327

1,630,125

167,0461,586 970

735,2961,031,571

98,425,000(98,915,638)

499,9563,118,515

18,210 546 447

$ 18,210 $ 1304,032

2,597 569

$ 14 395 468

4 138 782

$ 4,138,782

3 384 141

$ 20,068 323

4 894 700

$ 10 456 846

Arizona Power Authority(An Agency of the State of Arizona)

APA General Fund, Hoover Energy Fund, Hoover Uprating Fundand Combined Statements of OperationsFor The Years Ended June 30, 1987 and 1986

APA GENERAL FUND

OPERATING REVENUES..

1987

S2,055,891

1986

$1 624 181

OPERATING EXPENSES:Purchased Power.TransmissionDistribution ..Administrative and general.Depreciation and amortization ..Allocation of depreciation

Total .

OPERATING INCOME (LOSS) .

2,001,3343 4946,9879,292

27,799~18,091

2 030815

25,076

1,554,9833,3056,609

35,68725,626

~(17,6281,608,582

15 599

OTHER INCOME (DEDUCTIONS):Interest income.Other, net.Interest expense

Total .

WRITE OFF OF DEFERRED COSTS (Note 4) .

NET INCOME (LOSS) .

222,254(29,278)

192 976

036,330i5 81 722

265,786(91721)

256,065

$ 271,664

See notes to financial statements.

HOOVER ENERGY FUND HOOVER UPRATING FUND COMBINED

1987

$ 4 662,689

1986

$5,566,699

1987

$ 939 607

1986 1987

$7 658 187

1986

$7,190,880

3,090,5441,347,858

525,752

17 709

4,981,863

~319 174)

3,755,4421,481,221

682,911

17,628

5 937 202

(370 503)

673,468188,315

97,84222,205

382

982 212

~42 605)

5,765,3461,539,667

6,987632,886

50)004

7 994,890

836 703)

5810,4251,484,526

6,609718,598

25,626

7,545,784

~354 904)

51,046(405)

50 641

80,1802 331

82 511

468,168

~528 991)

~60 823)

741,468(29,683)

~528,991)182 794

345,966(7,390)

338 576

~489 052)

~$ 757,585) ~$ 287 992) ~$ 103 428)

~625,382$ (779 291) ~$ 16 328)

iArizona Porver Authority(An Agency of the State of Arizona)

APA General Fund, Hoover Energy Fund, Hoover Uprating Fundand Combined Statements of Changes in Fund EquityFor The Years Ended June 30, 1987 and 1986

APA GENERAL FUND

UNALLOCATEDRETAINED EARNINGS:Balance, beginning of year .

Net income (loss).Net transfers to allocated retained earnings

Balance, end of year ..ALLOCATED RETAINED EARNINGS:

Balance, beginning of year .

Net transfers from unallocated retained earnings ..Balance, end of year ..

CONTRIBUTED CAPITAL ..TOTAL FUND EQUITY

1987

$2,917,17081,722

444,265

3,443,157

1,878,391~444,265)

1,434,126

9 000

84 886 283

. 1986

$2,884,082271,664

~238,576)2,917,170

1,639,815238 576

1,878,391

9 000

84 804 561

See notes to financial statements.

HOOVER ENERGY FUND HOOVER UPRATING FUND COMBINED1987 1986 1987 1986 1987 1986

$257,585(757,585)489,052

(10,948)

500,000~489,052)

10 948

$545,577(287,992)

257,585

500,000

500,000

$ -0- $757,585

$(103,428)

~103A28)

$(103,428)

$3,174,755(779,291)933,317

3 328.781

2,378,391~933 317)

1,445,074

9 000

84,782 855

$3,429,659(16,328)

~238,576)3 174,755

2,139,815238 576

2,378 391

9,000

$5,562,146

rArizona Power Authority(An Agency of the State of Arizona)

APA General Fund, Hoover Energy Fund, Hoover Uprating Fundand Combined Statements of Changes in Financial PositionFor The Years Ended June 30, 1987 and 1986

FUNDS WERE PROVIDED BY:Net income (loss)Charges to income not affecting funds:

Depreciation and amortization..Funds provided by operations.

Decrease in working capitalIncrease in long-term bonds payable, netPreliminary survey and investigation costs

TOTAL FUNDS PROVIDED .

APA GENERAL FUND

1987 1986

$ 81,722

27,799

109,521

$271,664

25,877

297,541

448,880

4 558,401 4297 541

FUNDS WERE APPLIED TO:Purchase of property, plant and equipmentDeferred debits —HUF .

Preliminary survey and investigation costs ..Investments.Bond issuance costsIncrease in working capital.

TOTAL FUNDS APPLIED

INCREASE (DECREASE) IN WORKING CAPITAL:G6h.Temponry investments .

Accounts receivable —customers'ower purchases ..Prepaid purchase power.Contested tax assessment receivable .

Contested tax assessment payableDue from (to) other fund ..Interest receivableAccounts payablePower contracts payableInterest payable —bonds ..Note payableBonds payable

Less funds held by trustee

INCREASE (DECREASE) IN WORKING CAPITAL.......

546,372

$ 558,401

50 411

4297 541

$(139,653)

599,869

660,275(15,228)20,622

(579,513)

$337,304(50,000)89,859

(140,782)(265,839)265,839(28,634)(45,003)(20,622)(91,711)

$ 546,372 $ 50,411

$ 12,029 $ 51,049

196,081

See notes to financial statements.

HOOVER ENERGY FUND HOOVER UPRATING FUND COMBINED1987 1986 1987 1986 1987 1986

$(757,585) $(287,992) $ (103,428)

22,205 50 004 25,877

$ (779,291) $ (16,328)

(757,585)757,585

(287,992)287,992

(81,223)

11,901,327$ 1,265,991

(729,287)757,585

11,901,327448 880

9,5491,553,983

$ .0. $ .0- $ 11820104 $ 2 265,991 $ 12,378,505 $ 7 563,532

$ 2,159,360

2,999,8002,791,6073 869337

$ 11,820 104

$ 1,265,991

$ ) 265991

$ 12,0292,159,360

2,999,8002,791,6074,415,709

$ 12 378 505

$ 51,04911265,991

196,081

50 411

$ 1,563,532

$(289,405)

(329)218)

(660,275)(6,924)

(18,210)546,447

$ 160,716(150,000)(476,150)

39,620(13,608)

151,430

$ (180,623)2,496,095

939,607287,071

(1,214,026)351,120

(861,763)1,510,9231,031,571

98,425,000~98 91 5 638)

$ 1,940

(10,986)2,881,837(499,956)

(3,097,893)(1,031,571)

(98,425,000)98 915 638

$ (609,681)2,496,0951,210,258

287,071

(1,236,178)353,532

(894,829)1,510,9231,031,571

98,425,000-~98 915 638)

$ 499,960(200,000)(386,291)(140,782)(265,839)265,839

2,823,226(520,578)

59,719(3,097,893)(1,031,571)

(98,425,000)98 915,638

~$ 757 585) ~$ 287 992) ~$ 3 869 37 ~$ 1 265 992) $ 3 658 724 ~$ 1,503.572)

Arizona Power Authority(An Agency of the State of Arizona)

Statement of Operations of the Power Resource Revenue BondResolution Funds and AccountsFor The Year Ended June 30, 1987

OPERATING REVENUES..........OPERATING EXPENSES:

Purchased Power.............Transmission.Administrative and general......Depreciation.Allocation of depreciation.......

Total.

OPERATING GAIN (LOSS)........OTHER INCOME (DEDUCTIONS):

Interest incomeInterest expense

Total.

NET INCOME (LOSS)...........

$ 673,468188,31597,842

382

960,007

939 607 ~960 007)

14,416 $ 17,324

14 416 17 324

939,607 (945,591) 17/24

$ 22,205

22 205

~22 205)

300,252

300 252

278,047

MONTHLYPAY)) IENT

REVENUE OPERATING RESERVE CONSTRUCTIONFUND ACCOUNT ACCOUNT FUND

$939,607

ADJUST2<IENTS TO INCOMF. (LOSS)'UNDER THE POWER RESOURCEREVENUE BOND RESOLUTION:

Add:Accrued interest expense...Depreciation............Allocation of depreciation...Accrued purchased power ..Accrued administrative and

general..............Deduct:'ccrued interest income.......

Accrued revenue............Prepaid purchased power......

INCOME (LOSS) AS DEFINED UNDERTHE POWER RESOURCE REVENUEBOND RESOLUTION...........

JUNE 30, 1987 CASH ANDINVESTMENTS BALANCE ..

(939,607)

382861,783

53,942

(14,415)

(287,071)

(17,324)

6 -0. ~6330 970) 6 .0.

$ -0- $2,710,589 $3,000,000

22,205

(300,252)

-0-

651 596 072

NOTE: The above supplemental schedule includes all funds and accounts, as defined by the APA PowerResource Revenue Bond Resolutions.

SUPPLEMENTAL SCHEDULE

DEBTSERVICE

FUND

DEBT SERVICERESERVE

ACCOUNT

POWER RESOURCE GENERALDEVELOPMENT SUBORDINATED RESERVES

FUND DEBT FUND FUND TOTAL

$ 939,607

673,468188,31597,84222,205

382

982 212

~42,605)

$ 84,001~528.991)~444 990)

(444,990)

$ 52,175

52,'175

52,175

468,168~528,991)~60 823)

(103,428)

528,991 528,99122,205

(84,001) (52,175)

382861,783

53,942

(468,167)(939,607)(287,071)

-0- $ -0-

$ 14,546,635 $9 036 081

~$ 330 970)

$ 80 889 377

iArizona Power Authority(An Agency of the State of Arizona)

1. SUMMARYOF SIGNIFICANTACCOUNTING POLICIES

System ofAccounts —The accounting records of the Authority are maintained in accordancewith the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission("FERC"), insofar as the System is applicable to its operations.

Property and Depreciation —Property is stated at original cost. The costs of property additionsand replacements are capitalized. Replacements of minor items of property are charged toexpense as incurred. Costs of property retired are eliminated from plant accounts, and suchcosts plus removal expenses less salvage are charged to accumulated depreciation.

Depreciation is provided on the straight-line composite method based on the estimated usefullives of the property items.

Preliminary Survey and Investigation Costs —Certain preliminary costs relating to proposedmajor capital projects are deferred as long as completion of such projects is considered reason-ably expected, and capitalized as a cost of such projects as they are completed.

Bond Issuance Costs —Costs relating to the issuance of long-term bonds have been deferredand are being amortized over the life of the bonds.

Hoover Uprating Project Costs —Costs relating to the Hoover Uprating Project are beingdeferred. Such costs are being amortized over the life of the power contracts beginning withthe delivery of power from the project.

Hoover Uprating Fund Excess Interest Income —The excess of interest earned on the revenuebond proceeds held in trust over interest expense on the bonds was offset against DeferredCosts —I-Ioover Uprating Project until June 1, 1987, when APA began receiving power from theProject.

Unused Vacation Pay —Vacation pay for the APA General Fund is recorded as an expensewhen taken or when the payment in lieu of vacation is made. As ofJune 30, 1987, unusedvacation pay was estimated to be $30,843 and is not reflected in the accompanying flnancialstatements.

2. FUND ACCOUNTING

Hoover Energy Fund —The Hoover Energy Fund accounted for revenues and expendituresapplicable to the sale and transmission of power and energy received by the Authority from theWestern Area Power Administration ("WAPA")under its Hoover Energy contract. Agreementswith purchasers committed the Authority to sell and transmit this energy essentially at cost,specifying that any unexpended balance in the Fund on May 31, 1987 (expiration date of theHoover Energy contracts) will be returned to the purchasers pro rata on the basis of theirenergy entitlement percentages as computed under the agreements. Unallocated retained earn-ings of the Fund were available to the Authority for certain other uses related to Authority activ-ities until May 31, 1987.

The Hoover Power Plant Act of 1984 ("Hoover Act of 1984"), signed into law on August 17,1984, renewed the present allocated power and allocated additional power to the Authority,effective June 1, 1987 through September 30, 2017. Effective June 1, 1987, the Authority exe-cuted new power contracts with WAPA and power allottees. The revenues and expendituresapplicable to the sale and transmission of power and energy received by the Authority fromWAPA under these contracts are accounted for in the Hoover Uprating Fund. The Authority'sshare of the Boulder Canyon Project's existing capacity willbe increased by approximately 24megawatts. Additional increments totaling approximately 188 megawatts will be receivedthrough 1992 as stages of the Hoover Uprating Project are completed (see Notes 4 and 5).

Notes to Financial StatementsFor the Years Ended June 30, 1987 and 1986

Hoover Uprating Fund —The Hoover Uprating Fund accounts for costs incurred by theAuthority in connection with the Hoover Uprating Project. Effective June 1, 1987, this fund alsoaccounts for revenues and expenditures applicable to the sale and transmission of power andenergy received by the Authority from WAPA under its cncrgy contracts.

On December 19, 1985, the Authority issued $98,425,000 variable rate revenue bonds to obtainfunding for the Hoover Uprating Project. These bonds were converted to $89,820,000 of fixedrate long-term bonds on April 1, 1987.

APA General Fund —Authority operations other than those applicable to the I-Ioover EnergyFund or the Hoover Uprating Project Fund are accounted for in the Arizona Power AuthorityGeneral Fund ("APA General Fund" ). Thc purchase of steam power and the sale and transmis-sion of such power to the Authority's customers are accounted for in such fund.

3. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment of the APA General Fund at June 30, 1987 and 1986 were asfollows:

1987 1986

Transmission and distribution plant.General plant..

Total property.Less accumulated depreciation ..

Property, net

$415,031 $422,531303 889 291 774

718,920 714,305404 261 383 876

8314 659 8330 429

The transmission and distribution plant is comprised of a substation and related equipment.Purchased power is delivered over transmission facilities owned by WAPA.

4. PRELIMINARYSURVEY AND INVESTIGATIONCOSTS

Preliminary survey and investigation expenditures relating to the planning of the proposedHoover Modification Projects have been deferred.

Construction of the Hoover ModiTication Project may be dependent upon obtaining a licensefrom FERC. Ifconstructed, the project would increase capacity of Hoover by installing a newpower plant. The Authority believes that construction of this project is reasonably expected.

Deferred preliminary survey and investigation costs incurred in the I.Ioover ModiTication Projectas ofJune 30, 1987 was $215,207.

The Hoover Uprating Project was approved under the Hoover Act of 1984. The project willincrease the capacity of the Boulder Canyon Project ("Hoover") by rewinding the existingpower plant generators providing an additional 503 megawatts of capacity of which the Author-ity has been allocated 188 megawatts under the Hoover Act of 1984. Distribution of such powercommenced on June 1, 1987.

In 1987, it was determined that $625,382 of deferred preliminary survey and investigation costsrelating to the Hoover Uprating Project would not be recoverable through rates. Accordingly,these costs were written off against thc income of APA General Fund and the Hoover EnergyFund. AtJune 30, 1987, $136,330 and $489,052 had been written off against the APA GeneralFund and the Hoover'Energy Fund, respectively.

Notes to Financial StatementsFor the Years Ended June 30, 1987 an'd 1986

5. DEFERRED COSTS —HOOVER UPRATING PROJECT

Deferred costs —Hoover Uprating Project represents payments to the Bureau of Reclamation("Bureau" ) relating to the Hoover Uprating Project. Such costs are deferred and are beingamortized over the life of the power contracts.

6. NOTE PAYABLE

The Authority had a $ 1.5 million bank line of credit, of which $ 1,031,571 had been used as ofJune 30, 1986, at an interest rate of 8.875%. Borrowings on the bank loan were used to providefunding for the Hoover Uprating Project. During 1986, the Authority incurred interest on theloan of $ 10,251 all of which was deferred. The bank loan was paid off in 1987.

7. BONDS PAYABLE

The Authority issued $98,425,000 in variable rate revenue bonds on December 19, 1985 toobtain funding for the Hoover Uprating Project. On April 1, 1987, $89,820,000 of these bondswere remarketed. The new bonds are due serially from 1993 through 2017 and bear interestranging from 5.4% to 7.2%.

8. RETAINED EARNINGS

Allocations of retained earnings appropriated for specified purposes are authorized by theAuthority Commission under provisions of the Arizona Power Authority Act of 1944, asamended. The general reserves shown on the accompanying balance sheets are comprised ofthe following:

June 301987 1986

APA General Fund ReservesOperations fund ..Power contracts ..System improvements and repairs

Total

$200,000 $200,000100,000 100,000200 000 200 000

$ 500 000 $ 500 000

Hoover Energy Fund ReservesOperations fund ..Power contracts ..Generation contingencies and systems improvements...

Total

$200,000100,000

$ 10 986 200 000

$ 10 986 $ 500 000

The unallocated retained earnings of the APA General Fund are considered by the AuthorityCommission to be available for future purposes of the Authority which are authorized by law.

See Note 2 relative to thc ultimate disposition of the Hoover Energy Fund balance.

9. COMMITMENTAND CONTINGENCY

Under an agreement with one of its customers, the Authority may be obligated to purchasecertain transmission and other facilities at an amount not in excess of $870,000, subject to cer-tain adjustments, through the issuance of revenue bonds; if issued, such bonds would be amor-tized through charges to the customer for use of the facilities.

Auditors'pinion'ILIS

lllle

Doslle5

Hmkm~c+88

The Arizona Power Authority Comnzission:

Wi have examined the combined balance sheets ofArizona Power Authority ('uthority') andthe separate balance sheets of the APA General Fund, tbe Hoover Energy Fund and tbe HooverUprating Fund of the Authority as ofJune 30, 1987 and 1986 and the related statenrents ofoperations changes infund equity and ofchanges infinancial position for the years thenended. Our examinations were made in accordance with generally accepted auditing stan-dards and, accordingly, included such tests of the accounting records and such other auditingprocedures as we considered necessary in the circumstances.

In our opinion, such financial statements present fairly the combined financial position of theAuthority and the APA General Fund, the Hoover Energy Fund and the IIoover Uprating Fundof the Authority at June 30, 1987 and 1986 and the results of their operations and the changesin theirfinancial position for the years then ended, in conformity with generally acceptedaccounting principles applied on a consistent basis.

Our examinations also comprehended the supplemental schedule, the statement ofoperations ofthe Power Resource Revenue Bond Resolution Funds and Accounts for the year ended June 30,1987. In our opinion, the supplemental schedule, when considered in relation to the basicfinancial statements, presents fairly in all material respects the information sboivn therein.

Phoenix, ArizonaJuly 31, 1987

Schedule of Powerand Energy Sales

Year Ending June 30, 1987~~>

For Period ofJune 1, 1986 through May 31, 1987

SALE OF IIYDRO POWERBuckeye Water Conservation & Drainage District .

Chandler Heights Citrus Irrigation District......Cortaro-Marana Irrigation District............Electrical District No. 2, Pinal County..........Electrical District No. 3, Pinal County..........Electrical District No. 4, Pinal County..........Electrical District No. 5, Maricopa County.......Electrical District No. 5, Pinal County..........Electrical District No. 6, Pinal County..........Electrical District No. 7, Maricopa County.......Maricopa Water District .

Ocotillo Water Conservation District..........Roosevelt Irrigation District.Roosevelt Water Conservation District.........Salt River ProjectSan Tan Irrigation District..Wellton-Mohawk Irrigation & Drainage District...

PeakBilling

DemandkW

3,000900

7,80018,70010,30018,700

1,00014,200

7,70010,1008,5003,3003,1006,500

37,500500

2,800

DeliveredkWh

4,598,0003,868,888

29,777,00083,094,23644,533,61275,120,946

3,766,64849,958,42932,318,13825/80,000

8,477,0008,557,1915,942,000

23,387,638165,515,429

2,128,06812,371 875

Amount

$ 32,20927,534

215 400590,181316,686533,666

26,753355,023299,703179,578

59,22360,73641,905

187,2001,178,553

15,13788,126

MillsPcr kWh

7.017.127237.107.117.107.107.117.117.086.997.107.057.097.127.117.12

Total I.Iydro Power Sales 154,600 581,795,098 4,137,613 7.11

SALE OF TIIERMALPOWER

Electrical District No. 4, Pinal County...Electrical District No. 5, Pinal County...

1,642,800 $ 814,1817 132 500 437,790

Total Thermal Power Sales 8,755/00 $ 1,251,970

o> Ncw Power Sales Contraas for existing customers and additional customers went into effea June 1, 1987, allocating I ioovcrSchedule A and Schedule B Power and Energy.

t2t'the mills pcr kWh shown do not include thc 4.5 mill pcr kWh cltarge assessed to purchases of 1 ioover Power in the State ofArizona for rc~ymcnt to the Central Arizona Projca.

<»Allouees clcacd to receive their allocation of iioover Power and Energy at a later time. their allocations were reallocated toexisting allottees.

For Period ofJunc 1, 1987 through Junc 30, 1987

SALE OF HYDRO POWERAguila Irrigation District .

Avra Valley Irrigation 8c Drainage District.............Buckeye Water Conservation District..Chandler Heights Citrus Irrigation District.............Cortaro-Marana Irrigation District ..Electrical District No. 1, PinalElectrical District No. 2, PinalElectrical District No. 3, PinalElectrical District No. 4, PinalElectrical District No. 5, PinalElectrical District No. 5, Maricopa.Electrical District No. 6, PinalElectrical District No. 7, Maricopa.Electrical District No. 8, Maricopa.Harquahala Valley Power District<>l.Maricopa County Municipal 5Vater District 41..........McMullen Valley Water Conservation 8 Drainage District ..Ocotillo Water Conservation District.Queen Creek Irrigation DistrictRoosevelt Irrigation DistrictRoosevelt Water Conservation DistrictSalt River Project..San Tan Irrigation DistrictSilverbell Irrigation 8t Drainage District<>>.............Tonopah Irrigation DistrictKVellton.Mohawk Irrigation 8t Drainage District.........City of Mesa ..City of Page

City of SaffordTown of ThatcherTown of Wickenburg.Ak-Chin Indian CommunityArizona Electric Power Cooperative .

Arizona Public Service Co.Citizens Utilities Co.

Papago Tribal Utilities Authority .

San Carlos ProjectTucson Electric Power Co.

Total

PeakBilling

Demand kW

3112802

2,917915

6,3066,103

20,86413,88820,24715,039

3479,421

10,55715,128

9,2114,7132,3402,2514,0777,847

42,758763

1,9723,820

958195390195428207638

4,645547460479

1 798

216,338

DclivcrcdkWh

955,000240,000938,000228,000

1,590,000'1,818,000

5,598,0004,351,0006,289,0004,227,000

88,0002,797,0002,550,0004,407,000

2,440,0001,169,000

591,000661,000

1,183,0002,455,000

10,167,000238,000

504,0001,234,000

420,00085,000

170,00086,000

188,00091,000

281,0002,035,000

238,000201,000210,000787 000

61,510,000 $

Amount

14,2183,603

13,7563,653

25,35927,33487,27664,34293,26064,828

1,40142,10241,33566,762

38,21618,7599,4209,987

17,94636,321

165,8073,524

7,99718,069

5,6371,1422,2851 1522,5221)221

3,76727/18

3,2012,700

,2,818

10 566

939,607

Millst2>Pcr

kWh

10.3910.5110.1711.5211 4510.5411.0910.2910.3310.8411 4210.5511.7110.65

11.1611.5511 4410.6110.6710.2911.81

10.31

11.3710.148.928.938.61

8.918.918.928.918.928.958.938.928.93

10.78

SALE OF THERMALPOWERElectrical District No. 4, Pinal.Electrical District No. 5, Pinal.Electrical District No. 8, Maricopa.

Total Thermal Power Sales

5,700500

10 938

17,138

$71,6365,625

3 937 500 209 960

3,937,500 8 287221

SALE OF FIRMING ENERGYNavajo and Fuel RepLzcement.

Other Electric Revenues .

34,637,000 $

$

500,054

541,722

14.44

Total Operating Revenues. 67 658 187

Commission of theArizona Power Authority

CHAIRMANDWIGHT PATTERSON was born in Tempe, Arizona,attended Peoria elementary and high schools and is a graduate ofArizona State College in Flagstaff. After several years as a footballcoach at A.S.C., Chairman Patterson became actively involved in cat-tle and sheep ranching and general farming in the Mesa area.

Chairman Patterson was active as a football and basketball officialand served as President of the Central Arizona Officials Association.He was a driving force in implementing the junior college conceptin Arizona and has served as President of the Maricopa CommunityColleges and the Arizona State Board of Regents. He is also a for-mer member of the Maricopa Industrial Development Board andthe First Interstate Board of Directors and past President of thePhoenix National Farm Loan Association.

Mr. Patterson formerly served on the Arizona Power Authority Commission as Vice Chairman from1965-1971. His current six-year appointment was made by Governor Babbitt in January, 1982. He

I was elected by the Commission to serve as Vice Chairman in March, 1984, and served in that capacityuntil being elected Chairman in January, 1986.

(+CAs ~~VICE CHAIRMANJACK FRANCIS is a native of Arizona, graduatingfrom North Phoenix High School and the University of Arizona, witha Bachelor of Science Degree in Business Administration. He servedas a Lieutenant in the U.S. Army during the Korean conflict. He isChairman of the Board and Co-owner of Valley Industries in Peoria,Arizona.

Vice Chairman Francis has been active in Arizona and national agri-culture organizations as a past President and current member of theBoard of Directors of the Arizona Cotton Growers Association andthe SuPima Association of America. He also served as President ofthe Arizona Cotton Ginners Association and as Chairman of thePhoenix Chamber of Commerce Agri-Business Committee. He iscurrently serving as a Vice President of the National Cotton Council.

Governor Bruce Babbitt appointed Mr. Francis to the Arizona Power Authority Commission for a six-year term in January, 1984.

COMMISSIONER ROBERT CAS S was born in Miami, Arizona.He graduated from Miami High ool and attended Eastern Ari-zona Community College. He has been actively involved in commu-nay ~ffaia, as well as government and business, serving as a GilaCounty Supervisor from 1977 through 1984, and currently as a man-ufacturer's marketing representative.

Commissioner Casillas is a past Vice President of the Arizona Super-visors Association and is a member of the Globe-Miami EconomicDevelopment Committee, Arizona Association of Counties, Knightsof Columbus, American Legion, Globe Lions Club Board of Direc-tors, Globe-Miami Chamber of Commerce and the National Associa-tion of Life Underwriters. I-Ie was named Globe Citizen of theMonth in February, 1972, and was selected Globe-Miami Citizen ofthe Year in 1978.

Governor Babbitt appointed Mr. Casillas to the Arizona Power Authority Commission to fill the unex-pired term of Commissioner Joe Albo in March, 1985.

COMMISSIONER JEWELL M. LEWIS was born in Fairfield, Iowa, buthas spent most of her life in Arizona. She received a Bachelor'Degree in Secondary Education from the University of Arizona; aMaster's Degree in Elementary Education from George WashingtonUniversity; and a Doctorate Degree in Secondary Education fromArizona State University. She currently serves as the Chairman of theBoard of KTVK, Channel 3, in Phoenix.

Commissioner Lewis has been actively involved in the field of edu-cation, serving as a teacher in Florence, Arizona, from 1959 to 1972,Reading Director of Coolidge Public Schools from 1972 to 1982, onthe Governor's Committee of Quality Education and on the State'Right-to-Read Advisory Board. She is past President of the JuniorWoman's Club and a past Worthy Matron of the Order of EasternStar. She is a director on the Arizona Perinatal Board of Trusteesand a National Board Member on the Alumni of University of Arizona.

Governor Bruce Babbitt appointed Dr. Lewis to the Arizona Power Authority Commission in January,'1986, for a six-year term.

COMMISSIONER RICHARD WALDENwas born in Oxnard, California;received his Bachelor's Degree in Economics from Pomona College;served as a Captain in the U.S. Army, earning numerous decorationsand awards, and is currently the President and Chief Operating Officerof Farmers Investment Co. in Sahuarita, Arizona.

Commissioner Walden was a founding member of the Southern Ari-zona Water Resources Association and is currently a member of theBoard of Directors and Executive Committee thereof. He is also a

Director of the First Interstate Bank, Western Irrigated Pecan Growers,Green Fields Country Day School and Green Valley CommunityI-Iealth Center, Inc. Some of his many memberships include the WaterResources Coordination Committee of Tucson, Tucson for Tomorrow,and, previously, the Governor's Central Arizona Project FinancingStudy Group, the National Pecan Shellers Association and the Univer-

sity of Arizona Foundation President's Club.

Mr. Walden was appointed to the Arizona Power Authority Commission by Governor Babbitt in June,1984, to fillthe unexpired term of Commissioner Hugh Holub. He was reappointed by Governor Babbittto a six-year term in January, 1986.

0

Personnel Highlights

!

I

'!'!

MR. DONALDJ. ESGAR joined the Authoritystaff as Manager of Customer Services andContracts on June 1, 1987. Mr. Esgar retiredfrom the U.S. Bureau of Reclamation earlierthis year where he served as Chief of thePower Operation, Resources and ContractsBranch.

Also joining the Authority on July 7, 1986,was MR. FRANK BONFILI. Mr. Bonfili servesas the Authority Accountant. He formerlyworked for the Department of EconomicSecurity as a Field Auditor.

Arizona Ponn AutlmriyOpia Builcliug