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SRP CONSERVATION & STEWARDSHIP REPORT 2015

MESSAGE FROM THE GENERAL MANAGER . . . . . . . . . . . . .2

ENVIRONMENTAL STEWARDSHIP . . . . . . . . . . . . . . . . . . . .4

SRP’S WATER BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . 14

SRP’S ELECTRICITY BUSINESS . . . . . . . . . . . . . . . . . . . . . . 20

PEOPLE & COMMUNITIES . . . . . . . . . . . . . . . . . . . . . . . . 28

ABOUT SRP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

SRP CONSERVATION & STEWARDSHIP REPORT

FY15

ABOUT THIS REPORTThis report highlights the contributions of SRP and its employees toward operating

facilities in an environmentally responsible manner, reducing emissions, minimizing

waste, conserving natural resources, and protecting natural habitats and wildlife . It is

also available to download at srpnet.com/environment . Questions about the report

can be directed to CSreport@srpnet .com .

ABOUT THE COVERArizona’s stunning Superstition Mountains are just one of the many natural treasures

located in an 8 .3-million-acre watershed that fills SRP’s reservoirs . At SRP, our roots

are firmly grounded in resource stewardship and we continue to demonstrate our

commitment to this core value with innovative policies and technologies to manage

our water and power resources responsibly for future generations .

Salt River below Stewart Mountain Dam

1SRP CONSERVATION & STEWARDSHIP REPORT • FY15SRP CONSERVATION & STEWARDSHIP REPORT • FY15

MESSAGE FROM THE GENERAL MANAGERSRP has been serving central Arizona’s power and water needs since 1903 with a vision

of helping the Valley grow into a vibrant and sustainable metropolitan area . From the

beginning, SRP placed stewardship at the heart of that vision because being good

stewards of the environment is in our heritage, our roots as a company, and our role as

a community-based nonprofit utility . It is our heritage and community-based spirit that

guide SRP’s operations and outreach programs for today and tomorrow .

This year, we partnered with the National Forest Foundation to launch the Northern

Arizona Forest Fund, a mechanism for investment in projects on forested federal lands

that are critical to the Valley’s water supply .

After signing an agreement to purchase all of the power from the

Sandstone Solar facility, SRP will have an additional 45 megawatts of

renewable energy in our generation mix . This community-scale solar

plant — to be located near Florence, Arizona — will produce green

energy at an affordable price that is now close to SRP’s average cost of

energy from other sources .

Finally, we are looking inward to determine how we can reduce our

footprint . We have made energy-efficiency improvements over the last

couple of years at our facilities that resulted in nearly $500,000 in

savings . This year, we’ve also recovered $3 million from operational

scrap while avoiding 200 tons of landfill waste .

In all of these ways and more, we are taking SRP’s long-standing

commitment to stewardship and conservation to new levels, giving us

opportunities to play an even more important role in creating a better

future . Visit srpnet.com/environment to learn about our many other

success stories .

Mark B . Bonsall General Manager & CEO

SRP service territory in the Southeast Valley

It is also important that our community remain competitive in a global economy . We

need a skilled workforce that is prepared for the job demands of the 21st century . That’s

why improving education, particularly in science, technology, engineering and math, is

so important . With our educator workshops and grant programs, we reach over

200,000 Arizona students each year .

We also began including a sustainability survey in our supply chain operations . By

tracking the environmental impacts of our suppliers, we can work to recognize and

reward those that advance sustainable practices while also quantifying the business value

they add to SRP in reducing costs .

2 SRP CONSERVATION & STEWARDSHIP REPORT • FY15 3

ENVIRONMENTAL STEWARDSHIP SRP is dedicated to serving the water and power needs

of our community. We also understand that it is important to

do what’s right for the environment. We strive to minimize

the environmental impact of our operations by using less

water and energy and creating less waste. We can pass

those savings on to our customers, and everyone can enjoy

the benefits of a better environment.

Roosevelt Dam and the beginning of Apache Lake

4 SRP CONSERVATION & STEWARDSHIP REPORT • FY15 5SRP CONSERVATION & STEWARDSHIP REPORT • FY15

Rockhouse Riparian Demonstration ProjectAs part of SRP’s commitment to wildlife conservation, we purchased and set aside

20 acres of breeding habitat for two bird species: the southwestern willow flycatcher,

an endangered species protected under the Endangered Species Act (ESA), and the

western yellow-billed cuckoo, a species recently listed as threatened under the ESA .

It was our goal to develop and maintain a dense stand of suitable breeding habitat for

these bird species using native riparian tree and shrub plantings . We planted numerous

trees, including Fremont cottonwood, Goodding’s willow, seep willow and coyote willow,

over a four-year period beginning in 2004 . A flood irrigation system was installed to

sustain the plantings and to provide the appropriate breeding conditions for these birds .

Plantings were monitored over the first three years; however, the question remained

whether the project area would attract our target species .

SRP first found cuckoos using the site during the 2009 breeding season and they have

been found at the site every summer since . Flycatchers were first detected in 2010 when

three lone males set up territories . Two years later, 24 adult flycatchers occupied the site

and fledglings were seen . This was the first confirmed occurrence of flycatchers breeding

in a created riparian habitat . In 2014, the site supported 42 adult flycatchers and

20 pairs were confirmed . The project has been an overwhelming success .

Cultural ResourcesSRP’s Cultural Resource Program protects important archaeological and historical sites

and complies with state and federal regulatory requirements for archaeological and

historical resources, including fossil finds .

One example of our commitment includes supporting a staff position at the Museum

of Northern Arizona . This program ensures that the artifact and records collections housed

at the museum from several SRP-sponsored projects are processed and updated to modern

curation standards .

Recently, SRP conducted a series of archaeological and historical site mitigation projects

in support of the construction of a new extra-high voltage transmission line from the

HABITAT CONSERVATION As a historical and integral part of central Arizona, we recognize our responsibility to

respond to environmental challenges associated with supplying water and power services .

We actively seek opportunities to preserve the quality of the natural environment while

serving the needs of Arizona’s growing communities .

SRP’s system of reservoirs and dams delivers water and provides power to central Arizona

cities . The reservoirs and rivers are also home to an abundance of plant and wildlife

species, some of which are rare or in decline . SRP has taken action to ensure they will

persist and thrive in the wild .

SRP works closely with the U .S . Fish and Wildlife Service and the Arizona Game and Fish

Department to offset any impacts to threatened and endangered species from the

operation of Roosevelt, Horseshoe and Bartlett reservoirs . By implementing conservation

measures, we hope to contribute to the recovery and survival of these species while

ensuring that SRP can continue to manage the reservoirs and maintain a reliable water

supply for the Phoenix metropolitan area .

Conservation measures include acquisition and management of more than

2,000 acres of riparian habitat along the Verde, Gila and San Pedro rivers in Arizona .

These conservation lands will be protected in perpetuity for the preservation of habitat for

threatened and endangered species that depend on Arizona’s waterways for their

survival . SRP also supports research on these species to monitor their populations and to

assist with their recovery .

ROCKHOUSE RIPARIAN PROJECT BY THE NUMBERS:• 2,500 trees planted • 3,500 shrubs planted• 80% survival rate• Average tree growth rate in 3 years: 14 feet

Hassayampa Switchyard to the Browning Receiving Station . We took extra precautions to

carefully recover these sites, which included historical homesteads and prehistoric

habitations, irrigation sites, roasting pits, canals, a reservoir and burials .

GREEN FLEET SRP is committed to finding cleaner and more efficient ways to operate our fleet . By

supporting the adoption of electric and other alternative fuel vehicles, we not only reduce

our environmental footprint, but we also provide benefits to our customers through

significant monetary savings over the long term .

We reduce emissions from our fleet by taking the following actions:

• Adding alternative fuel vehicles and

hybrid vehicles to our fleet

• Optimizing capital equipment

replacement

• Utilizing biodiesel fuel and E85 ethanol

blend where possible

• Adopting high preventive

maintenance standards

• Participating in the fleet industry

benchmarking

• Initiating a pilot program for

biodegradable synthetic oil

SRP Drive ElectricThere are many reasons to support cleaner transportation alternatives: It saves money,

reduces traffic congestion and, most importantly, helps clear the air . It’s a cause SRP has

been committed to for over 25 years and it remains a top priority today .

The SRP Drive Electric™ program aims to engage our residential and business customers,

develop infrastructure and test equipment that will better prepare us for a future that

includes electric vehicles (EVs) .

SRP has 37 plug-in hybrid and battery electric fleet vehicles with plans to expand our

electric transportation fleet . These vehicles are supported with 65 Level 2 charging stations

spread out over 16 facilities . We have 27 workplace electric vehicle charging stations for

employees and have installed publicly available stations at two of our buildings .

7SRP CONSERVATION & STEWARDSHIP REPORT • FY156 SRP CONSERVATION & STEWARDSHIP REPORT • FY15

ENVIRONMENTAL STEWARDSHIP

Engaging EV OwnersWe know EV owners are excited about the performance of their vehicles and we want

to learn how we can help meet their needs for efficient charging at home and at work .

That’s why we launched SRP’s electric vehicle community — a reward program for

eligible EV owners . After enrolling, customers receive a $50 gift card to Amazon .com

and can connect with other EV enthusiasts and have the chance to participate in focus

groups, surveys and more . These customers help us understand how EV owners use

energy so we can better understand the impacts on the grid .

Our customers also have the opportunity to enroll in a pilot EV rate plan . It offers

reduced rates from 11 p .m . to 5 a .m . to encourage EV charging during off-peak

(lower-priced) hours .

PROCUREMENT We believe it is important to better understand the social, environmental and economic

performance of our suppliers . Through engaging our supply chain, we can have a

greater impact on social and environmental sustainability in the communities we serve .

By improving environmental, social and economic performance throughout our supply

chain, we can conserve resources, optimize processes and reduce costs .

Supply Chain At SRP, we take steps to ensure the products we use to support our operations also

support a more sustainable environment . We recognize the importance of integrating

sustainability into manufacturing and operations, and by working with preferred

suppliers, SRP looks for companies that actively work to incorporate sustainable

business practices . This helps us improve our environmental performance and enhance

reinvestment in system and operational reliability while reducing our costs .

In 2014, we began including a supplier sustainability survey in our request for

proposal, or RFP, process . This survey requires suppliers to respond to questions about

their sustainability and resource management practices . By tracking the sustainability

commitment of our suppliers, we can work toward recognizing and rewarding

preferred suppliers while quantifying the business value they add to SRP .

Small Business Leadership AcademyPartnering with the W . P . Carey School of Business at Arizona State University has

given SRP a unique opportunity to empower the business leaders of today and

tomorrow . The Small Business Leadership Academy was founded to help small

business owners overcome challenges through networking with peers, learning from

leaders and growing their own skills .

As a founding sponsor of the program, SRP is in the unique position of being able to

nominate businesses to participate in the eight-week course . It’s another way SRP helps

to promote small businesses that further Arizona’s rapidly increasing economic diversity .


SRP has almost 40 electric and alternative fuel vehicles in its fleet .

Amy Hillman, dean of ASU’s W . P . Carey School of Business, partners with SRP to help local business owners succeed through added education in areas such as strategy, branding and teamwork . Photo courtesy of W . P . Carey School of Business, ASU

BY THE NUMBERS:• 70,400 electric vehicle miles traveled

• 2,201 gallons of gas saved

• 33 .6 tons of CO2 prevented from being emitted

• 37 electric and alternative fuel vehicles in our fleet

Working Together to Advance EV Adoption As more of our customers adopt electric vehicles, we must work to understand how the

switch to electric vehicles impacts our customers’ energy demand, as well as the greater

impact to the energy grid . To that end, we partnered with the Electric Power Research

Institute (EPRI) to conduct a study which measured the grid impact of increased adoption

of electric vehicles . Although the study showed no detrimental impact to our grid in the

near term, SRP developed a specific price plan to benefit our EV customers that charge

off-peak as well .

SRP also routinely meets with other utility experts and stakeholder groups in the EV field

to stay abreast of ongoing programs and to share innovative ideas to further the

adoption of electric vehicles . We jointly participate with other utilities, academics and

automakers as part of the EPRI Infrastructure Working Group to discuss infrastructure and

engineering standards related to electric vehicles .


OUR FACILITIES Reducing water and electric demand in our operations not only minimizes our

environmental impact, but it also benefits our bottom line . When we reduce our

operating costs, we pass those savings on to our customers . It is critical that we take the

lead in these efforts to support our community by engaging in efficiency measures .

Energy-Efficiency ImprovementsAt our facilities, we have undertaken several energy-efficiency measures, including

the following improvements .

Motion sensorsOur buildings are outfitted with occupancy sensors (infrared, ultrasonic and

combination), a standard for all new construction lighting .


Building automation systems Building automation systems allow our technicians to program heating and cooling set

points for different operating modes . Daytime, nighttime and weekends have different

target temperatures in order to allow the building temperature to drift appropriately

when unoccupied, then return automatically to occupied mode .

Supplier DiversityArizona’s economic development depends on championing different perspectives and

ownership groups, which is why we strive to strike a balance in our choice of suppliers .

A diverse supply chain enriches both our company and community by bringing together

different perspectives, skills and ideas that enhance business success . SRP continually

monitors economic trends and educates its employees on the importance of maintaining

partner diversity .

SUPPLIER SUSTAINABILITY SURVEY RESULTS

25%of suppliers report sustainability and environmental performance publicly .

30% measure or trend their greenhouse gas emissions .

55%WATER

65%ENERGY

70%WASTE

Our suppliers reported that they have voluntary programs in place to improve in energy consumption, water use and waste generation:96%

of supplier transactions are electronically transmitted or received .

had zero notices of environmental violations in the past 12 months .

Energy-efficient conference room at the SRP Credit Union Building

of our offices and conference rooms utilize occupancy sensors to detect whether people are present by sensing heat (infrared), motion (ultrasonic) or sound . These systems directly control small lighting loads at line voltage and directly replace wall switches .

90%

SRP’s supplier diversity mission is to promote a composition of corporate spending that

represents the communities we serve by utilizing diverse businesses, including:

• Small firms

• Minority suppliers and contractors

• Woman business enterprises

• Veteran and service-disabled veteran enterprises


Energy-efficient lightingSince 2013, we have installed 470 LED lighting units, and all post-2000 units

(T-12 fluorescent fixtures) were replaced with T-5 and T-8 high-efficiency fixtures .

These new fixtures both increase the amount of light in the building and reduce our

energy use . LED lighting can be more efficient, durable, versatile and longer lasting

than fluorescent fixtures . In addition, we implemented daylight harvesting, which alters

the output of the LED ceiling lights based on the amount of daylight coming through the

windows . Lights are also dimmable by a manual switch .

ENERGY STAR roofingWe installed cooling and reflective roofing to reduce our energy demand . The installation

occurred on parts of (or certain buildings within) the following facilities: Power

Operations Building, Project Administration Building, 16th Street Facility, Crosscut

Facility, West Valley Service Center, East Valley Service Center, Foothills Training Center

and Credit Union Building .

Employee engagementWe encourage our employees to participate in energy savings by turning off office and

conference room lights and other equipment when not in use; we remind them to do so

through our “Stewardship In Action” campaign signage posted at all facilities .

Energy-efficient mechanical equipmentWe have begun to replace our heat pumps with more energy-efficient units . In addition,

an energy dashboard pilot has been implemented at the Credit Union Building (CUB) to

track energy usage by floor in the categories of lighting, energy and plug load .

Water-saving fixturesOur facilities feature low-flow plumbing fixtures and hands-free faucets . Tankless or

on-demand hot water systems have also been installed . In addition, a water filtration

and bottle filler system was installed at CUB to reduce bottled water costs and disposal .

Employees are encouraged to use a reusable water bottle and fill it with the filtered water .

CUB has been designated a plastic-water-bottle-free zone . Water filtration systems will be

used in all new construction .

Additional ResearchThis year, we launched a technology project to track and determine potential energy

savings to be made by utilizing teleconferencing technology to decrease employees’ travel

time while simultaneously decreasing carbon emissions .

We are also in the process of a behavioral study to determine the most effective messages

to reduce energy consumption in our facilities . We are tracking energy data to determine

if there are cost and CO2 savings resulting from targeted communication campaigns .

WASTE AND RECYCLING Over the years, waste management has become more complex and costly . That means

recycling and creating less waste have become a part of standard operating procedures

because they provide these critical benefits:

• Extend the life of valuable natural resources

• Help reduce pollution

• Conserve valuable landfill space

• Reduce the cost of operations

Investment Recovery One utility company’s scrap is that same utility company’s treasure . At least that’s the case

with SRP’s Investment Recovery and Central Reclamation Services group . Investment

Recovery is able to maximize the return on SRP’s scrap wire, cable and used line

hardware by processing and recycling it into valuable materials . As part of its daily

operations, SRP Investment Recovery is committed to realizing the greatest return on

corporate assets, including those reaching the end of their useful life . This service adds

real monetary value back to SRP’s corporate accounts .

Recycled line hardware — $514,000 savingsProving that the Investment Recovery department is truly the “reuse” in the “reduce, reuse,

recycle” mantra, any part that does not meet SRP’s stringent line engineering standards is

scrapped and sold for its metallurgic value . The vast assortment of hardware will go through

numerous production stages of selection, testing, cleaning, assembly and packaging .

Refurbished line hardware is inspected to ensure that each part has all the necessary

components and that every component is clean and functional . Materials are then bulk

packaged in overpack boxes, palletized and held for shipment to one of SRP’s warehouses .

The end result is material that can hardly be distinguished from a factory shipment .


Investment Recovery recycling — 229 tons of landfill avoidanceTo keep material out of landfills, SRP resells old office equipment, furniture and assorted

supplies . This year alone, we diverted the following materials away from landfills:

• 198 tons of wood reels

• 3 .5 tons of wood pallets

• 21 tons of plastic and cardboard

• 6 .3 tons of tires

Recycling SRP is committed to reducing the amount of waste going from our facilities into landfills,

and we call on our employees to contribute to this effort . SRP provides clearly marked

recycling receptacles at all of our facilities to give employees plenty of opportunities to

reduce waste .

In 2015, we recycled 99 .4% of the recyclable materials we disposed of, equivalent

to 322 tons . The list of materials we recycle includes the following items:

• Aluminum cans

• Beverage bottles

• Coated book stock

• Colored envelopes

• Corrugated material

• Magazines and newspapers

• Paper in bags and boxes

• Plastic

• Plastic-windowed envelopes

• Sorted office paper

This year, we launched a pilot program within our corporate office to measure and

ultimately reduce waste produced by our corporate offices . This program will expand to

more of our buildings and operations and we will use the pilot data to set corporatewide

goals . We understand that behavior in the office is linked to behavior at home, so we

work to encourage a culture of environmental awareness for our employees at all times .

Reclaimed transmission line

in savings as a result of reselling high grade aluminum and copper from our cable and wire to local smelters .$2.4 million


SRP’S WATER BUSINESSThere are few certainties in life, but one that’s always

held true for Valley residents is access to water from SRP’s

extensive network of dams, reservoirs and canals. For over

a century, SRP has reliably delivered water to area homes

and businesses. This water originates as rain and snowfall

on the watershed. It then flows down creeks and rivers to

collect in the lakes and reservoirs behind our dams before

moving through our canal system. South Consolidated Canal

From watershed to showerhead, managing water supplies

for today and the future is one of SRP’s top priorities.

Access to reliable and affordable water is integral to the

economic development and resiliency of the Phoenix Valley.

As one of the largest raw-water suppliers in the Greater

Phoenix area, SRP delivers about 800,000 acre-feet of

water annually.


WATER MANAGEMENTToday SRP operates a system of seven dams and 1,300 miles of canals and laterals and

is responsible for their maintenance and operation . Additionally, SRP is taking a leading

role in promoting the restoration of Arizona’s forested areas, including those of the Salt

and Verde watersheds . These critical watersheds provide the renewable and dependable

water supply Phoenix-area residents have relied on for more than 100 years .

Protecting these areas is an ongoing task . After nearly a century of fire suppression,

today’s forests are overcrowded, sometimes by as much as hundreds of trees per acre .

As a result, Arizona’s dense ponderosa pine forests are prone to unnatural high-intensity

fires, which severely degrade water quality, choke streams and reservoirs with sediments,

and rob landscapes of precious soil, often preventing regeneration . In situations where

water yield isn’t reduced, what is produced is often caused by flash flooding and is of

a poor, unusable quality .

Recharging Our AquifersThe Granite Reef Underground Storage Project (GRUSP), located near Mesa in the Salt

River bed, has become an instrumental component of SRP’s water resource management

toolkit and a real-life working example of how SRP and Arizona have been preparing

for drought .

Located on lands leased from the Salt River Pima-Maricopa Indian Community, the

GRUSP facility has been storing water over the last 21 years in an underground aquifer

to ensure a reliable and adequate water supply for future use by SRP and its municipal

partners . SRP operates GRUSP on behalf of its partners .

SRP’S WATER BUSINESS

A healthy restored forest ensures an ecosystem that is stable and resilient against

drought, fire and pests and that produces many products and services required by

today’s society . A reliable source of good quality water is just one of those

valuable services .

Storing Water for Times of DroughtThe Salt and Verde watersheds produce a highly variable water supply . SRP has

developed a water resource management approach that assumes every year is a drought

year . The cornerstone of this approach is the ability to store water in our reservoirs

during high flow years to be used when the dry years return . As climate change impacts

weather patterns and water systems, it is important to prepare for even greater water

supply variability . SRP has done so through Arizona’s recharge and recovery water

management program . Water that is not needed today can be recharged underground,

storing it for future use . SRP operates three underground storage facilities: Granite Reef

Underground Storage Project, New River-Agua Fria Underground Storage Project, and

the Salt River Project Groundwater Savings Facility .

The Granite Reef Diversion Dam diverts water from the Salt and Verde rivers into canals .

1 millionACRE-FEET OF WATERhas been stored at the Granite Reef Underground Storage Project – or about 27 million swimming pools . That’s also enough water to completely fill Saguaro Lake about 14 times .

Monitor Well

Recharge Basins

Delivery ChannelSRP South Canal

Highly Porous

Sands & Gravels

Groundwater “Mound” Regional Aquifer

GRUSP today remains one of the largest water-banking facilities in Arizona and in the

West . And, thanks to the collaborative work by SRP and other organizations, including

the Arizona Water Banking Authority, the Salt River Pima-Maricopa Indian Community

and the U .S . Bureau of Indian Affairs, it will continue to provide water security to the

Valley for many more years .

TECHNOLOGY HIGHLIGHT: FLOWTOGRAPHYWe are proud to have pioneered a method to help establish baseline watershed

conditions . By combining time-lapse photography with environmental science,

Flowtography™ allows SRP to quickly and effectively gather stream flow information and

other important hydrologic conditions at a low cost .

This method is currently being deployed at numerous sites on and outside of our

watershed, including the Middle Sycamore Paired Watershed Study area; the Big Chino

Monitoring Project; Lake Mary in the Flagstaff Watershed Protection Project; on the East

Verde River near Payson; Salado Springs near Coronado Generating Station; in the

White Mountains to monitor snow pack; and on Tonto Creek to assist an environmental

study of fish mobility above Roosevelt Lake . Low-resolution photos are sent via cellular

network to a Web service allowing SRP scientists to be on-site in the watershed from

any Internet-connected device . Plans are in the works for even more installations of this

innovative and cost-saving technology both on the watershed and in the Valley .


How Does Flowtography Work?Flowtography is a leading-edge low-cost technology that gathers real-time stream flow

information . Collecting time-lapse photos across our 13,000-square-mile watershed

allows for better understanding of stream flows and watershed conditions and ultimately

better management of our water resources . Prior to Flowtography, technology that

monitored stream flows failed to account for weather conditions, tree health, snowpack

and other environmental conditions . The addition of real-time photography allows us to

collect much more accurate data and a wider variety of information . The technology itself

is noninvasive and powered by solar panels .

NORTHERN ARIZONA FOREST FUNDFurthering our dedication to improving the health and resiliency of Arizona forests,

we partnered with the nonprofit National Forest Foundation (NFF) to create the

Northern Arizona Forest Fund (NAFF) . This fund provides a mechanism for investment

in site-specific projects on national forest lands that are critical to improving the health

and resiliency of forests within the Salt, Verde and East Clear Creek watersheds . These

watersheds are the source of SRP’s surface water supplies that provide the water needs

for SRP’s customers and municipalities . With declining forest health and tighter federal

budgets, leveraging public-private partnerships has never been more important .

Improving Watershed ResiliencyThe projects focus on reducing wildfire risk, improving streams and wetlands, enhancing

wildlife habitat and minimizing erosion and sedimentation that can affect Arizona

streams, rivers and reservoirs . NAFF’s first year projects include two high-priority projects

in the Verde watershed: the Oak Creek Erosion Control Project and the Upper Beaver

Creek Forest Health Project . Together, these projects will protect over 1,000 acres of

forested habitat for the Mexican spotted owl and will also improve forest road conditions

in the area, which will minimize sedimentation into the Oak Creek watershed .

Along with SRP and NFF, Valley stakeholders, businesses and cities are investing in the

NAFF to improve the resiliency of the Salt and Verde watersheds – especially to protect

against the threats of fire, insects, infestation, drought and a variable climate . At the

same time, SRP through the NAFF is providing water supply certainty to our shareholders

while building awareness of the critical link between our forests and the long-term

sustainability of the Valley’s water supply .

SRP’S WATER BUSINESS

C.C. CRAGIN RESERVOIR WATERSHED RESTORATION AGREEMENTLocated on the Mogollon Rim, C .C . Cragin Reservoir is truly SRP’s hidden gem in the

forest . Its unique location and infrastructure mean that stored water can be pumped

out of the reservoir and into the East Verde River located below the Rim . This addresses

several critical water issues for our northern Gila County communities . For example,

it will provide the water-short town of Payson with its first-ever reliable surface water

supply, and it is also being offered as a sustainable water resource to help address the

water needs of small communities in the area .

What still presents an issue, however, is the forested area surrounding the C .C . Cragin

Reservoir . It is at a high risk of catastrophic wildfire, which could result in severe negative

effects in water quality and water supply because a tremendous amount of sedimentation

and debris will fill the reservoir following a destructive fire . To address these issues and

to expedite the need to reduce the risk of wildfire through fuels reduction treatments,

SRP, along with the U .S . Forest Service, the U .S . Bureau of Reclamation, the NFF and

the town of Payson entered into an agreement which was signed at a formal ceremony

in Payson last summer .

This agreement recognizes that proper management of the forested public lands located

on the watershed is crucial to protecting the reservoir’s water supply, minimizing the

amount of sedimentation, enhancing ecosystem health, maintaining recreational values

and public safety, and providing high-quality water for municipal uses . All of the parties

are working together to accelerate forest thinning efforts to achieve the desired

management objectives in a timely fashion . In fact, the Coconino National Forest Service

has elevated this effort to one of their highest local priorities . The C .C . Cragin watershed

is also listed as a priority watershed for treatment as part of the Western Watershed

Enhancement Partnership between the Departments of Agriculture and Interior . Arefeen Ahmed, SRP Engineer, Water Measurement

C .C . Cragin Reservoir

Flowtography uses time-lapse photography to provide accurate depth measurements in washes that only flow during storm or snowmelt events .


SRP’S ELECTRICITY BUSINESS

To meet the energy demands of customers, our generation

portfolio consists of a diverse mix of generation technologies.

Today we operate or participate in 12 power plants and other

generating stations, including coal, low-emission natural gas

and safe emission-free nuclear power. We also produce

energy through renewable resources, including hydroelectric,

solar, wind, geothermal, biomass and landfill gas.

Steam rising from the Hudson Ranch geothermal power plant . Geothermal energy uses heat stored in the earth to generate electricity, producing one of the cleanest, most sustainable and environmentally friendly sources of renewable power .


MINIMIZING OUR ENVIRONMENTAL FOOTPRINTAt SRP, we’re committed to providing reliable electric service to our customers — now

and for years to come . Ensuring our energy future requires careful, informed and

innovative planning . That’s why we are committed to the following objectives to

supply customers with reliable and affordable energy while minimizing our

environmental footprint:

• Ensure reliable electric service

• Provide an economically efficient and

environmentally responsible

resource mix

• Maintain financial integrity while

providing energy at competitive rates

• Maximize flexibility in acquiring

resources to prepare for changing

conditions of an uncertain future

• Limit exposure to the risks inherent in

normal electric utility operations

• Develop and maintain working

relationships with local residents,

organizations and community leaders

to better meet the electricity needs of

those who work, live and play

in Arizona

Renewable Energy SRP established a goal that by 2020, 20% of our expected retail energy requirements

will be met with sustainable resources . This target includes the percentage of retail

requirements met by renewable generation, energy-efficiency programs, pricing

measures and hydroelectric generation .

SRP is examining the role of sustainable energy sources and other measures in reducing

carbon emissions, and we actively evaluate emissions-related goals and objectives .

In our fiscal year 2015 (FY15), we moved closer toward these goals .

Sandstone Solar facilityThe SRP power grid will get a 45-megawatt boost of solar energy thanks to a deal we

made this year to purchase all of the power generated at the Sandstone Solar facility .

This community-scale solar plant — to be built near Florence, Arizona, by independent

power producer sPower — will produce green energy at an affordable price that is now

close to SRP’s average cost of energy from other sources . It shows how the cost to

produce community-scale solar energy is dropping .

For context, this 45-megawatt addition to SRP’s solar fleet will produce energy equivalent

to about 10,000 residential installations .

Reducing EmissionsWe know it is critical to reduce our greenhouse gas emissions to address global climate

change for the well-being of our environment and community . In 2014, we set the

following greenhouse gas emission reduction targets that solidify our commitment to

environmentally responsible power generation .

• Reduce our carbon intensity by 15% from FY14 levels over the next 15 years .

• Reduce our carbon intensity by 40% from FY14 levels over the next 30 years .

To achieve these targets in the most cost-effective way, SRP will use its integrated resource

planning process to compare a variety of options, such as existing plant efficiency


improvements; additional renewable, natural gas and nuclear generation; and energy-

efficiency programs . Given the unavoidable tradeoffs that exist between emissions

reductions and electricity costs, SRP will continue to prudently decrease its emissions

intensity while minimizing impacts on customers’ energy bills .

Sustainable Portfolio Principles SRP takes significant and material action to reduce its carbon emissions . In 2004,

SRP’s publicly elected Board of Directors directed SRP to enhance its resource portfolio

by adding significant amounts of renewable energy and sustainable resources through

the development of Sustainable Portfolio Principles (SPP) .

The SPP has matured over the years, and the most recent revision to the SPP, approved

by SRP’s Board in 2011, requires SRP to ensure that 20% of SRP’s expected retail energy

requirements will be met with sustainable (zero-carbon) resources by 2020 . This target

includes the percentage of retail energy requirements met with annual aggregate

energy-efficiency savings, pricing measures, hydroelectric generation and other

renewable generation, including that which is directly attributable to certain customers

(such as rooftop solar and Community Solar) .

SRP Community Solar power comes from Copper Crossing Solar Ranch in Florence .


SRP’s program includes an incentive for early or accelerated acquisition by allowing

the environmental attributes of sustainable resources to be banked and applied to future

years or sold to reduce customer costs .

Due to its proactive actions, SRP is currently outperforming the SPP targets . In FY15,

14 .26% of SRP’s retail requirements were met with sustainable resources and more

than 34% of the energy produced by SRP’s resources had no associated greenhouse

gas emissions .

Navajo Generating StationLast summer, the U .S . Environmental Protection Agency (EPA) issued a final rule adopting

plans to reduce emissions at Navajo Generating Station (NGS) . The final rule

incorporates major elements of the proposal by the Technical Work Group (TWG) that

had recommended alternatives for the plant with greater emissions reduction than what

the EPA proposed .

The TWG alternative addresses the concerns of many diverse parties with an interest in

the future of the plant in a manner that reflects both current and future economic and

environmental considerations . It includes two alternatives that both achieve greater

nitrogen oxide (NOx) emission reductions and multi-pollutant emission reductions than

required by the EPA in a manner that is enforceable and transparent to the public .

The alternative that will be implemented at NGS is dependent upon certain plant

ownership changes that may occur .

Coronado Generating StationThis year, SRP completed a $470 million effort to further reduce emissions from

Coronado Generating Station (CGS) in St . Johns . The last component of the project

— selective catalytic reduction technology to lower NOx emissions — became

operational .

The project was a result of a 2008 agreement between SRP and the EPA to improve

regional air quality by installing equipment and systems to remove additional emissions

of NOx and sulfur dioxide (SO2) from CGS . The new controls not only further reduce

SO2 and NOx emissions from the plant but also address mercury emissions .

ENERGY EFFICIENCY As we enter a second century of service in the Phoenix metro area, energy efficiency

is a major part of our overall conservation and stewardship ethic . It is a cost-effective

way to help residents and business owners make improvements that save energy and

money while helping to minimize resources .

Helping Our Customers Save EnergySRP strives to continuously improve all aspects of power and water service by keeping

customers foremost in our minds . We help our customers save energy and money and

select billing, payment and pricing options that work best for them . Our goal is to make

doing business with SRP easy, pleasant and convenient — anywhere and anytime .

Being environmentally responsible extends beyond the way we generate electricity

to how we help our customers understand and manage their energy usage . Today’s

energy-efficiency programs are effective tools to help manage the energy demands that

will accompany future growth . These programs provide benefits to SRP and our

customers by deferring the need for future generating resources, reducing emissions,

improving overall efficiency and reliability, and reducing costs . Together, SRP and our

customers take an active role in the stewardship mission, as evidenced by the strong

participation in these programs .

SRP offers more than 20 energy-efficiency programs to our residential and commercial

customers . We provide opportunities for our customers to reduce energy use and

save money in ways that range from low-cost to comprehensive solutions for their

homes or businesses .

Energy-efficiency programs also play an important part in reaching our Sustainable

Portfolio goals . With the help of our customers, this year we exceeded our annual

incremental energy-efficiency savings target of 1 .75% by achieving 2 .15% of retail

requirements .

34% of SRP’s retail needs were met from non-emitting sources in FY15 .

Retail Needs


Residential programs Residential customers have access to a variety of programs that can help them save

energy . Last year, our customers purchased 2 .5 million CFL and LED light bulbs through

our partnerships with local retailers . We also delivered an SRP Energy Scorecard to

nearly 150,000 customers, providing them with personalized energy consumption data

and energy-saving solutions . In addition, more than 4,000 customers participated in the

SRP Cool Cash™ Rebate Program and are now realizing the benefits of installing

high-efficiency air-conditioning systems in their homes .

Commercial programs Commercial customers save energy and money by taking advantage of our Standard

Business Solutions and Custom Business Solutions programs, which offer rebates for

energy-efficient lighting, HVAC, refrigeration and more . SRP also offers technical

assistance in a number of specialized areas to help our business customers identify and

implement energy-efficiency projects . These programs exceeded their annual energy-

savings goals, achieving 124% of the set targets . The success of our programs would

not be possible without our customers’ participation .

Dry Lake Wind Farm


Building Energy Codes Initiative Energy-efficient construction continues to be a priority for SRP . That’s why we’re

committed to raising awareness of the International Energy Conservation Code for

residential construction and the American Society of Heating, Refrigerating and

Air-Conditioning Engineers code for commercial construction . We’ve taken the lead in

supporting local jurisdictions and educating key stakeholders within SRP’s electric service

territory to further the adoption of these building energy codes, which ultimately help

customers achieve long-term savings .

Price choices mean more ways to save The SRP EZ-3™ and SRP Time-of-Use™ price plans accommodate a variety of

lifestyles and offer ways to save on energy costs . Our customers approve . In terms

of participation, the plans are among the largest in the nation . SRP offers these

options to help control energy demand during on-peak hours when it costs the most

to produce electricity . Customers who enroll and shift or reduce their energy usage

during higher-cost hours are rewarded with lower prices during off-peak times .

The SRP M-Power® prepaid electricity program is the largest of its kind in North America .

M-Power allows customers to purchase the power they want anytime they want it .

M-Power participants reduce their annual consumption by an average of 12% .

Inaugural Champions of Energy Efficiency AwardsSRP honored seven innovative businesses and organizations for their energy-efficiency

efforts and savings at our inaugural Champions of Energy Efficiency Awards event

this year .

As the top energy savers among businesses of similar sizes and types, these companies

were recognized for their outstanding participation in SRP’s commercial rebate programs

during the last year . They also excel in their efforts to implement new technologies,

institute behavioral change and forge paths for energy efficiency .

• Banner Health • Capri on Camelback, Greystar • Fry’s Food and Drug • Isaac School District

• Maricopa Community Colleges • St . Daniel the Prophet Roman

Catholic Parish • Temple Beth Sholom of the East Valley

TOMORROW’S GRID TODAYAt SRP, developing a smarter grid means adding new communication technologies and

components to improve electric reliability . Our customers benefit by receiving quicker

restoration during outages, improved cybersecurity and SRP’s ability to incorporate more

renewable generation sources, such as wind and solar power .

Smart Thermostat StudySRP installed “smart” thermostats in 250 customer homes in 2014 to determine

if the devices, in combination with a time-of-day price plan, can maintain comfortable

indoor temperatures and reduce monthly energy use . This work contributes to a larger

research project with the Electric Power Research Institute (EPRI) and will continue for

two full summers to help us understand how the thermostats operate during the hottest

months of the year . Smart thermostats have the potential to help customers reduce

energy used for cooling and may help to lower monthly electric bills by reducing

peak demand — making energy more affordable .


Large-Scale Battery Storage StudyWith a substation-sized battery storage system, we hope to help smooth out the

intermittent generation of wind, solar and other renewable resources connected to the grid .

In partnership with EPRI, this three-year research project will involve placing large-scale

batteries strategically in SRP substations .

We hope it will enable customers to install more renewable generating sources while

maintaining the reliability of the grid that customers expect . The large-scale storage of

energy helps address the intermittency of renewables and allows SRP to add more

utility-scale resources like solar and wind into the grid, which reduces emissions intensity .

Bringing Light to LeChee With help from SRP, the LeChee Electrification Project brought electricity to 63 homes on the

Navajo Nation for the first time . The $4 .7 million project was a joint effort of the Navajo

Tribal Utility Authority (NTUA), SRP’s NGS and the LeChee Chapter of the Navajo Nation,

with funding from the Navajo Nation Abandoned Mine Lands Program and the federal

Department of Housing and Urban Development . Although NGS produces electricity,

it does not service the area as it is under the jurisdiction of the NTUA . As part of the

LeChee Electrification Project, SRP provided $2 million to help fund the project .

East Valley at dusk

The LeChee Electrification Project provided 63 homes on the Navajo Nation with electricity for the first time .


PEOPLE & COMMUNITIESSRP is committed to partnering with nonprofit organizations

that provide meaningful and beneficial programs to our

customers and the communities we serve. Arizona can only

be a great place to live when we work together to

accomplish our goals.Teachers touring Granite Reef Diversion Dam


POWERING OUR FUTUREWe know Arizona educators help students become the best and brightest they can be .

At SRP, we demonstrate our appreciation by providing free workshops, comprehensive

in-service programs and resources, and grants for Arizona’s educators . Our programs

impact over 200,000 students each year .

This year, we improved the Powering Our Future curriculum for teachers . Here, teachers

can access lessons on renewable energy, match their lessons to state standards and have

access to interactive journeys for their students . The online curriculum provides teachers

with information and activities to plan out anything from a single lesson to a yearlong

unit of study about energy .

VOLUNTEERISMVolunteerism at SRP is a hallmark of our corporate culture . We engage our employees

in service to nonprofit organizations by encouraging their involvement in over

250 volunteer activities each year . From tutoring children to constructing a Habitat for

Humanity house and staffing numerous community fundraising events, SRP volunteers

are everywhere in our community .

This year, we contributed $90,250 in Dollars for Doers grants — financially supporting

organizations that our employees volunteer to serve . Our executives and employees are

also community leaders, serving on the boards of 50 nonprofit organizations to which

they lend their management skills and experience .

SAFETY CONNECTIONSafety is everyone’s responsibility . At SRP, we take that responsibility very seriously — so

much so that we developed SRP Safety Connection™, an outreach program that builds

awareness and educates the community about water and electrical safety .

Working closely with community partners, SRP Safety Connection provides vital information

in English and Spanish . In fact, SRP provided 300,000 pieces of safety materials this year

in an effort to keep families and children safe around water and electricity .

Our long-standing efforts have also resulted in partnerships with municipal fire

departments to educate parents on water safety and, in conjunction with city pools and

the YMCA, to offer swim lessons .

PEOPLE & COMMUNITIES

CIVIC LEADERSHIP PROGRAMSEach year, communities throughout the Valley seek out individuals who are committed to

civic leadership and engage them in programs that provide in-depth access and

knowledge about community issues .

This year, SRP hosted participants from 12 leadership organizations for an educational

experience that highlights the unique history of SRP and our continuing dedication in

managing the resources that ensure the delivery of water and power to the Valley .

CORPORATE CONTRIBUTIONSSRP is proud to support key facets of Arizona’s nonprofit community, including human

service, civic, education, environmental and arts and culture initiatives . This year, SRP

contributed $3 .5 million in grants and in-kind services to hundreds of Arizona nonprofit

organizations that benefit our customers and community .

Phoenix Art MuseumThe Phoenix Art Museum has an outstanding collection of more than 18,000 works of art

and fashion design . The museum continues to exhibit works of art and present festivals,

live performances, independent art films and educational programs for people of all

ages that both enlighten and entertain .

This year, SRP supported the “Leonardo da Vinci’s ‘Codex Leicester’ and the Power of

Observation” exhibit, which highlighted not only Leonardo the artist, but also Leonardo

the scientist, engineer, architect and inventor . The properties of water were part of his

fascination . Like SRP, da Vinci envisioned building a system of canals that would allow

for the ability to sell water to farmers to irrigate their land .

Arizona Project WET The University of Arizona is home to Arizona Project WET (Water Education for

Teachers), which aims to increase awareness, appreciation and stewardship of water

resources through education . It provides science-based water education programs

throughout Arizona .

Project WET materials provide educational content in a unique and engaging way so

students can understand critical water concepts and allow SRP to involve a greater

number of teachers in concepts central to our core business . SRP for EDU at Ironwood Elementary School in Casa Grande, Arizona

Habitat for Humanity build in the West Valley


Phoenix ZooThe Phoenix Zoo is one of the largest nonprofit privately funded zoological parks in the

country . The Phoenix Zoo provides experiences that inspire and motivate people to care

for the natural world and is also a center for conservation and research work with

endangered species . In addition to SRP’s sponsorship of ZooLights, the annual holiday

experience powered by SRP EarthWise Energy™, SRP also provided funding for the

construction of the Doornbos Volunteer and Administrative Center . The facility provides

office, training and public meeting space and is LEED Platinum certified .

Arizona ForwardArizona Forward’s mission is to foster a balance between environmental quality and

economic vitality throughout the state . The organization convenes thoughtful public

dialogue and action around such key areas as land use planning and open space;

water management; transportation and air quality; energy; and healthy communities .

In addition to supporting its civic engagement committees, SRP provides leadership for

the annual Environmental Excellence Awards, which recognize distinguished projects

that enhance the state’s sustainability and livability .

SUPPORTING ENVIRONMENTAL ORGANIZATIONSProtecting the environment through actions and educational efforts benefits all Arizonans .

These are a few notable examples of the organizations we support .

Audubon ArizonaAudubon Arizona is committed to environmental education and to the development of

ethnic and socioeconomic diversity within the environmental movement . Its Nature in Your

Neighborhood program ensures that children who live in inner-city areas have access to

high-quality environmental learning opportunities in earth and life sciences . SRP’s support

of the Rio Salado Audubon Center complements our outreach efforts to increase

awareness of water resources, wildlife management and environmental stewardship .

Liberty WildlifeLiberty Wildlife is committed to nurturing the nature of Arizona through wildlife

rehabilitation, environmental education and conservation services to the community . They

have helped nearly 80,000 birds, mammals and reptiles . Last year alone they presented

over 840 educational programs statewide to citizens of all ages . Under SRP’s Avian

Protection Program, SRP and Liberty Wildlife work together to address utility bird-related

issues and promote an avian-safe electric system .

Desert Botanical GardenThe Desert Botanical Garden’s mission is to advance excellence in education, research,

exhibition and conservation of desert plants of the world with an emphasis on the

Southwest . SRP’s support of the Garden’s fall festivals, including the Fall Plant Sale, the

Great Pumpkin Festival, Dia de Los Muertos and Chiles & Chocolate, allows our

customers to connect arts and nature in a unique way . SRP’s support of the Garden also

includes providing funding for horticulture and educational facilities needed to preserve

the beauty of the Sonoran Desert environment .

RESEARCH TO BENEFIT THE COMMUNITYEvery year, SRP partners with local universities to support graduate-level research and

provide learning opportunities for the next generation of leaders . It gives students the

opportunity to create research projects in the areas of electric reliability; energy storage;

water conservation and stewardship; renewable technologies; and many other areas that

affect the utility industry . These collaborations help bring about creative solutions to

difficult issues and provide students with the ability to interface directly with utility

engineers, giving them access to real-world experiences .

SRP has been a partner with the local universities since the 1970s . This year, we

completed over 25 projects while supporting nearly 40 graduate students and 30 faculty

members in their areas of research .

Growing Algae to Shrink EmissionsReducing carbon emissions that come from generating electricity is of great importance

to SRP and our stakeholders . That’s why we’re invested in researching technologies that

can capture and sequester carbon emissions at the generation source .


ASU algae study at Coronado Generating StationLas Noches de las Luminarias at Desert Botanical Garden


We provided support to Arizona State University students to research the feasibility of

using algae growth to reduce carbon dioxide emissions at Coronado Generating Station .

In this project, ASU identified naturally occurring algae species and performed chemical

analyses of plant water sources to assess suitability for algae growth in the environment

of the generating station .

Solar Battery Storage StudyFor our customers, generating some of their own electricity at home can be as simple as

installing solar panels . But what happens when the solar production doesn’t match up

with energy demand?

SRP is partnering with Arizona State University to look for a solution . We hope to find a

way to improve battery storage so that energy generated from solar panels midday can

be stored and used later in the afternoon . This is important because energy demand in

our service area is at its greatest in the late afternoon . Having the ability to use stored

solar power to offset some of the energy demand will help make our electric grid even

more reliable .

We initiated this project in 2013 and continue to monitor the performance, cost and

durability of the system .

CANALS AS GATHERING PLACES Our canals are designed for water delivery, but they’re also great for walking, running,

cycling and exploring the Valley . At SRP, we use this as an opportunity to make the

communities we serve more vibrant, beautiful and livable .

We partner with cities and developers to integrate portions of the canal system into

recreational and commercial development projects to help foster a greater sense of

community . SRP works with each city throughout the design process to ensure

compatibility with SRP’s operational and maintenance needs for the canal system .

Historical interpretive signs are located throughout the canal system, as well as public

art, providing a way for residents to engage with their surroundings .


2015 COMMUNITY OUTREACH BY THE NUMBERS:

122 nonprofits assisted through 177 volunteer opportunities

SRP gave 20% more than last year to adopt 931 children and seniors and 25 families for food and holiday gifts

128 agencies received 28,071 volunteer hours from SRP employees resulting in $90,250 in Dollars for Doers grant funding

166,321 cans donated in SRP’s annual food drive (20,000 more than last year)

372 SRP Powering Our Future in-class presentations provided to fourth- through eighth-grade students

23 educator workshops held which were attended by 664 teachers reaching 16,300 students (29% increase over last year)

$200,000 in grant funding provided to classroom teachers

DELIVERING MORE THAN WATER

The Hohokam Indians, A .D . 1–1450, using only stone axes and hoes, built over 700 miles of canals to carry water from the Salt River to irrigate their lands .

These same canals served as the foundation for the SRP canal system you see across the Valley today delivering water and much more . . .

SRP canal system:131 miles long

The canal system passes through 8 cities

More than $10 million in public art

500,000 recreational users annually

There are 250 water stations and rest areas along the canal system

You will find 57 miles of developed multi-use trails

You don’t have to wait for traffic with 19 pedestrian underpasses along the canal system

25 interpretive signsFISH

IN THE CANALS

CANAL SAFETY

Our canals are great for walking, running, cycling and exploring the Valley .


ABOUT SRPSRP (Salt River Project) is the oldest multipurpose federal

reclamation project in the United States. We have been

serving central Arizona since 1903, nearly 10 years before

Arizona became the 48th state.

Roosevelt Dam


PROVIDING THE ESSENTIAL RESOURCESToday the SRP power district is one of the nation’s largest public power utilities . We

provide electricity to approximately 1 million retail customers in a 2,900-square-mile

service area that spans three Arizona counties, including most of the metropolitan

Phoenix area (known as the Valley) . We are an integrated utility, providing generation,

transmission and distribution services, as well as metering and billing services .

SRP’s water business is one of the largest raw-water suppliers in Arizona . We deliver

about 800,000 acre-feet of water annually to a 375-square-mile service area and

manage a 13,000-square-mile watershed that includes an extensive system of reservoirs,

wells, canals and irrigation laterals .

For more than a century, SRP has demonstrated foresight in providing the essential

resources to meet the needs of our power and water customers and to help the Valley

grow into one of the most vibrant metropolitan areas in the country . We are continuing

that mission in our second century .

OUR ENVIRONMENTAL POLICY SRP is committed to the protection and preservation of natural and cultural resources .

As the nation’s oldest multipurpose federal reclamation project, SRP was founded on the

principle of resource stewardship . Today, we continue to demonstrate our commitment to

this core value by using innovative policies, programs and technologies to responsibly

manage our water and power resources . SRP strives to balance the needs of our

customers with protecting the environment as we demonstrate environmental stewardship

and implement several key environmental principles .

Leadership: We believe that environmental leadership involves making responsible

investments that benefit the environment while allowing us to continue to meet the needs

of our customers . We have also demonstrated our commitment to reducing emissions by

increasing the amount of sustainable resources in our resource portfolio .

Innovation: Investing in research and development is critical to ensuring that we continue

to deliver water and power in a cost-effective and environmentally responsible manner .

SRP is committed to advancing the development of new technologies and innovative

ideas by supporting research related to efficiency improvements, environmental controls,

renewable energy, water conservation and waste management .

Compliance: We have a deeply rooted culture of environmental regulatory compliance .

We have implemented extensive compliance programs and policies, and we regularly

perform audits and in-depth self-evaluations of our facilities and operations . We also

take proactive steps to go above and beyond regulatory requirements when it makes

sense for our customers and the environment .

ABOUT SRP

Communication: We voluntarily publish the Conservation and Stewardship Report to

communicate our conservation and stewardship initiatives to the public . We also report

on SRP’s environmental compliance to federal, state and county agencies, such as

information on emissions, water quality and wildlife conservation .

Engagement: We believe it is important to serve as a model of environmental

responsibility and to promote resource stewardship to our employees and to the

communities we serve .

We are proud of our environmental achievements, and we look forward to continuing to

demonstrate environmental leadership while fulfilling our mission of delivering affordable

and reliable water and power in the years ahead .

Blue Bridge at Roosevelt Dam

SRP linemen performing 500 kV maintenance


ABOUT SRP

AWARDS AND RECOGNITION At SRP, we’re always humbled when others recognize the efforts and achievements

of our employees . Here are a few highlights of the awards and recognitions we’ve

achieved this year .

“Highest in Customer Satisfaction among Large Utilities in the West, 14 Years in a Row.”*

2015 Residential Customer Satisfaction Award Awarding agency: J.D. Power

SRP received the award for ranking highest in the large utility segment in the West region

in J .D . Power’s 2015 Residential Customer Satisfaction Study . Because of our strong

performance, SRP also ranked highest in the nation .

Technology Transfer Award Awarding agency: Electric Power Research Institute

SRP was recognized for its modeling and development work on the U .S . Regional

Economy, Greenhouse Gas, and Energy (US-REGEN) model .

2014 Leadership in Energy Efficiency AwardAwarding agency: Southwest Energy Efficiency Project

We were honored to receive this award for our Building Energy Codes Program .

This initiative is an important component of SRP’s energy-efficiency portfolio, as

it is one of the most cost-effective means by which to generate energy savings that

help meet the targets for our Sustainable Portfolio Principles .

Corporate Advocate of the YearAwarding agency: Women’s Business Enterprise Council (WBEC) West

SRP was named Corporate Advocate of the Year at the WBEC-West’s 11th annual

Strategic Procurement Opportunity Conference held in Las Vegas . The honor was

presented to SRP, a co-title sponsor of the event, for its contributions to supporting

women business enterprises and the WBEC .

Corporate Partner of the YearAwarding agency: National Association of Women Business Owners (NAWBO),

Phoenix Chapter

SRP was named Corporate Partner of the Year for its work in supporting women

business owners and NAWBO for the past 19 years .

*Salt River Project received the highest numerical score among large utilities in the West region in the proprietary J .D . Power 2002-2015 Electric Utility Residential Customer Satisfaction StudySM . 2015 study based on a total of 102,525 online interviews ranking 13 providers in the West (AZ, CO, ID, MT, NM, OR, SD, TX, WA) . Proprietary study results are based on experiences and perceptions of consumers surveyed in July 2014-May 2015 . Your experiences may vary . Visit jdpower .com .


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