PROJECT NEWSLETTER # 1 - OCTOBER 2017

Tucson Electric Power Company (TEP) is planning to

upgrade and relocate its existing 138-kilovolt (kV)

substation and extend several 138 kV transmission lines

within the company’s Irvington Campus, located at

South Contractors Way and East Irvington Road. These

improvements will support TEP’s plans to build new

facilities and utilize modern technologies to improve

operations, expand its use of renewable energy and

maintain affordable, reliable electric service for customers.

These projects will coincide with the installation

of reciprocating internal combustion engine (RICE)

generators at the H. Wilson Sundt Generating Station

located on the Irvington Campus.

2540 N. Tucson Blvd.Tucson, AZ 85716

TUCSON ELECTRIC POWER (TEP) RECIPROCATING INTERNAL COMBUSTION ENGINE (RICE) GENERATION AND IRVINGTON 138-KILOVOLT (kV)

TRANSMISSION LINE RELOCATION PROJECTS

PUBLIC OPEN HOUSE

MULCAHY YMCA AT KINO COMMUNIT Y CENTER 2805 E. A JO WAY

TUCSON, AZ 85713

WEDNESDAY, OC TOBER 18, 2017 | 6 - 7:30 P.M.Miércoles, 18 de octubre del 2017 | 6 - 7:30 p.m.

Tucson Electric Power (TEP por sus siglas en inglés) Motor de Combustión Internal (RICE por sus siglas en inglés) y Reubicación de Línea De Transmisión de 138-Kilovoltios Proyectos Irvington

Reunión Pública

The RICEs will replace aging steam units near the end of

their useful lives. They were first identified as part of the

company’s long-term resource planning in its Integrated

Resource Plan filed with the Arizona Corporation

Commission (ACC) on April 3, 2017.

The transmission lines will be extended southeast to

connect with the new substation, which will be built

adjacent to the new RICEs.

PURPOSE AND NEED

Tucson Electric Power (TEP) is working to deliver at least

30 percent of its power from renewable resources by

2030, doubling the Arizona Corporation Commission’s

(ACC) 2025 mandate. TEP has enough renewable

generating capacity to meet the annual electric needs of

about 115,000 homes. Currently, about 11 percent of the

power delivered to customers comes from renewable

resources. RICEs are designed to compensate for power

fluctuations and other challenges associated with TEP’s

expanded use of renewable energy.

TEP plans to install resilient, fuel-efficient RICEs that use

natural gas to power up quickly and supplement wind

generators and solar panels when conditions for those

resources are not favorable. RICEs also can help to meet

peak energy demand. New generating resources also

will result in fewer emissions and lower water use. The

new facilities are expected to be in service in 2019.

ACC REVIEW Arizona Revised Statutes 40-360 requires that TEP secure

the ACC’s approval of a Certificate of Environmental

Compatibility (CEC) for the projects prior to construction.

TEP’s CEC applications for the new lines and the RICEs

will be reviewed by the Arizona Power Plant and

Transmission Line Siting Committee, which will forward a

recommendation to the ACC following a public hearing.

www.tep.com/projects

PUBLIC PARTICIPATION

TEP is seeking public input on these projects and invites

you to attend a public open house on Wednesday,

October 18, 2017 from 6-7:30 p.m. at Mulcahy YMCA

Community Center, 2805 E. Ajo Way. This is an open

house format, so please feel free to drop by when it

is convenient. During the open house, representatives

of TEP will be available to provide information and

answer any questions you may have.

MORE INFORMATION AND

PUBLIC COMMENTS For more information about this project, please visit

tep.com/projects. Please submit comments by:

• Leaving the enclosed comment form at the public

open house.

• Mailing the enclosed comment form or a letter to

the return address on this newsletter.

• Emailing comments to Renee Darling,

RDarling@tep.com.

• Visiting www.tep.com/projects and filling out an

online comment form.

• Calling 1-866-236-2114 and leaving a voicemail

message.

Personas que requieren materiales en español deben ponerse en contacto con Renee Darling al 520.884-3642 o RDarling@tep.com. Las solicitudes deben de hacerse lo más pronto posible para asegurar que el equipo encargado tenga la oportunidad de hacer los arreglos necesarios.

TEP RECIPROCATING INTERNAL COMBUSTION ENGINE (RICE) GENERATION AND IRVINGTON 138-KILOVOLT (kV) TRANSMISSION LINE RELOCATION PROJECTS

A SUSTAINABLE ENERGY FUTURE

As our community grows and changes, TEP will satisfy customers’ future energy needs

by investing in efficient, innovative technologies to build a stronger, more flexible and

responsive electric grid.

SOLAR AND RENEWABLE POWER

TEP is expanding solar and wind systems with a goal of delivering at least 30 percent of its

power from renewable resources by 2030 – twice the level required by 2025 under Arizona’s

Renewable Energy Standard. TEP will buy solar energy at a historically low price from a new

100-megawatt (MW) solar array and an accompanying 30 MW energy storage system. This

new, local system will provide power for 21,000 homes.

TRANSMISSION RESOURCE IMPROVEMENTS

New and upgraded transmission resources strengthen the local electric system and offer

greater flexibility to reduce the length and frequency of service outages. New transmission

resources would support economic development while enabling TEP to deliver power from

more diverse and sustainable resources.

FLEXIBLE, EFFICIENT NATURAL GAS RESOURCES TEP plans to invest in flexible, fast-responding natural gas generating resources that provide

an affordable way to manage power fluctuations associated with intermittent renewable

resources. These efficient new resources will help ensure the delivery of reliable electric

service to customers.

MOVING AWAY FROM COAL TEP continues its efforts to retire and replace some coal-fired generating resources with

Unit 2 at the San Juan Generating Station in New Mexico, scheduled to be shut down by

the end of this year.