SRP's 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 taken significant steps to reduce emissions from our power generation portfolio. Since 1995, we have invested over $1 billion in emission controls that have reduced sulfur dioxide and nitrogen oxide emissions intensity by 80%, all while delivering reliable and affordable power during a period of unprecedented growth in electricity demand. We have also demonstrated our commitment to reducing emissions by increasing the amount of sustainable resources in our resource portfolio. By the end of 2012, more than 10% of our retail energy requirements were met with sustainable resources, and we are on track to have 500 megawatts (MW) of renewable generation online by 2020. We also are incorporating electric vehicles into our fleet as part of our Green Fleet Program. We anticipate that this project will help encourage other companies to add electric vehicles into their own fleets, which will help reduce emissions and improve air quality.

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 offer a number of employee- and community-based programs, incentives, and discounts. Over the last 20 years, SRP's Share the Ride Program has saved more than 1 million vehicle-miles and avoided over 1 million pounds of pollution. We also offer innovative programs to our customers such as the M-Power Price Plan prepayment program, which has resulted in an average annual energy usage reduction of 12% for enrolled customers. Our water conservation programs save more than 60 million gallons of water each year on average.

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.

Innovation

Investments in Research and Development are 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. We were a founding member of the Electric Power Research Institute (EPRI) in 1973. Today, EPRI includes over 1,000 organizations in more than 40 countries working together to advance new technology and solutions to meet the most significant needs of our industry. SRP has also partnered with Arizona universities for over 30 years to pursue important research initiatives. Our university research partnerships help to educate students, develop local expertise, and promote economic development.

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. For example, SRP and the other participants in the Navajo Generating Station (NGS) voluntarily installed a cost-effective emission control technology to reduce nitrogen oxide emissions by 40%. SRP also works collaboratively with state and federal agencies to develop balanced, proactive solutions to protect natural resources. For example, SRP developed two habitat conservation plans that protect over 2,000 acres of habitat for 17 fish and wildlife species.

Communication

As a public entity, we believe it is important to communicate our environmental goals and performance to our employees, customers, and other members of the public. We voluntarily publish a 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.

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