ML17303A889

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Arizona Power Authority 29th Annual Rept.
ML17303A889
Person / Time
Site: Palo Verde Arizona Public Service icon.png
Issue date: 06/30/1987
From: Patterson D
ARIZONA POWER AUTHORITY
To:
References
NUDOCS 8803230059
Download: ML17303A889 (36)
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ACCELERATED ""DIFiIBUTION DEMONSTRATION SYSTEM REGULATORY INFORMATION DISTRIBUTION SYSTEM (RIDS) l ACCESSION NBR:8803230059 DOC. DATE: 87/06/30 NOTARIZED: NO DOCKET FACIL:

AUTH. NAME AUTHOR AFFILIATION PATTERSON,D. Affiliation Not Assigned RECIP.NAME RECIPIENT AFFILIATION 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:

RECIPIENT COPIES RECIPIENT COPIES ID CODE/NAME LTTR ENCL ID CODE/NAME LTTR ENCL 8 PD PM INTERNAL: A'EOD/DOA EOD/DSP/ PAB NRR/PMAS/PTSB12 G IL 01 A EXTERNAL: LPDR NRC PDR 0

TOTAL NUMBER OF COPIES REQUIRED: LTTR ENCL 6

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Arizona. Power Authority Twenty-Ninth Annual Report 1810 West Adams, Phoenix, Arizona 85007 For the year ended June 30, 1987 Table of Contents Letter to the Governor 1 Boulder Canyon Project 2 Transmission System The Arizona Power Authority 5 Contracts for I-Ioover Power 6 I.Ioover Uprating Program 8 I-loover Modifications Project 10 Navajo Marketing Plan 11 Operations 12 Financial Data Section and Audit Report 13 Auditors'pinion 27 Schedule of Power and Energy Sales 28 Commission of the Arizona Power Authority 30 Personnel I iighlights 32

To Governor Evan Mecham, The following is the 29th Annual Report of Ibe Arizona Power Autbori0> which covers tbe fiscal year ended June 30, 1987.

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

After yean ofintense negotiations, a new 30 year Power Sales Contract for Hoover hydroelec-tric poiver 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 power also became effectiue in June, 1987.

On April 1, 1987, tbe Authority rerrrarketed 489,820,000 in poiuer resource revenue bonds to finance its share of the Hoover Uprating Program a program authorized by the Hoouer Power'lant Act of 7984 to rewind existing generators at Hoover, thus creating an additional 188,000 l:W of capacity to be sold by the Authorig> to Arizona purchaserx On June 1, 1987, tbe Authority entered into new 20 year Power Sales Contracts under which low cost Hoover power is noiu'being sold to 39 cuslorners throughout the State an addilion of 22 new cusloniers to tbe lisl ofpreuious Hoouer contractors.

Authorio> staff bas been actively involved this year in providing technical assistance and support to its customs'or implementation of Conservation and Renewable Lnergy (C & RE) Programs which willresult in significai it State-wide energy savings.

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

Dwight Patterson Chairman

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  • 'If and Lake,Vead r<<uru<rrof rhe l'i, aunrru ofRarlumariou1 n an effort to control and regulate the flow of the Colorado River, Congress, in 1928, 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 Canyon between Nevada and Arizona. Construction of the dam began in 1931 and was completed in 1935. The dam was dedicated by Franklin D. Roosevelt on September 30, 1935. The generating facilities were completed in 1936, and the first commercial power production began in October of that year. Hoover was the greatest dam constructed in its day. An arch-gravity structure rising 726 feet above bedrock, Hoover is still the western Hemi-sphere's highest concrete dam. It is 660 feet thick at its base, 45 feet thick at its crest, and stretches 1,244 feet across Black Canyon.

There are 4 4 million cubic yards of concrete in the dam, power plant and related structures.

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Hoover Dam's reservoir, Lake Mead, is the largest man-made lake in the United States it backs up 110 miles behind the dam and is capable of storing nearly two years of aver-age Colorado River flow. This water is released 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 and California.

At the time of construction, Hoover power plant was the world's largest hydroelectric installation. It is still one of this country' largest facilities, with 17 generating units, having a total capacity of approximately Rmnovlngrotor for rtfrratfrrg uerf: at Hooter Porrn Plant 1,448,000 kilowatts. More than 4,000,000,000 toourtmy of re 0> nn>r of ala>>wufo>O kilowatt-hours of energy are generated annually.

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In 1984, with the passage of the Hoover Power Plant Act, authorization was,given to I >p>>IS 'JAN, tr>

fear>++Qj)>,'I IrI i r$ t uprate the existing units at Hoover Dam, which will increase the power plant's capac-ity by more than 500,000 kilowatts providing a total capacity of approximately 1,951,000 kilowatts. Work on the upratings began in 1985 and is expected to be completed in 1992. The non-federal funds for this uprating program are being provided by the Hoover allottees.

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The Arizona Power Authority nder 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") was allocated approximately 17.5 percent of firm energy from the Boulder Canyon project (Hoover Dam). This meant tliat only the State, itself, or an agency acting on the State' behalf, could receive Arizona's share of IIoo-ver energy. Therefore, in 1944, the Arizona Legislature passed an Act which created the Arizona Power Authority (thc "Authority") to receive and market Arizona's share of I-Ioo-ver power. In 1945, the Authority entered into its original Hoover power contract with the United States.

James Dartlea, Attontey Les Onttsby,'tlttrlrtlstrator Under the Act, the Authority's functions and responsibilities relate principally to obtaining and distributing electric power generated by the mainstream waters of the Colorado River.

The Authority, however, is not limited to these activities, and its enabling legislation carries broad powers in the field of develop-ment and marketing of electric power. The Authority is empowered to acquire, construct and operate necessary electric generation I and transmission facilities and to enter into r ~

such agreements and contracts as may be required. It may also issue rcvenuc bonds to acquire and construct such facilities. The right of eminent domain lias been granted to the Authority to allow acquisition of property l(tclwrtlWllsott, Asslstattt Atitttittistrator Terl Afos, pouter iVattager to be used for purposes deemed necessary to carry out its purposes.

bcrship a Chairman and a Vice Chairman The purposes of the Authority are effectuated who hold office for terms of two years, to by a five-member Commission which is begin and end on the first Monday in appointed by the Governor, subject to confir- January.

mation by the Arizona State Senate. To pro-vide continuity in the administration and An Administrator is employed by the Com-operation of the Authority, Commissioners mission to execute the day to day operations are appointed to staggered terms of six years of the Authority.

each. The Commission elects from its mcm-g

Contracts For Hoover Power n January 20, 1987, the Arizona tomers on June 1. Hoover power is now Power Authority Commission being sold to 39 customers within the State.

authorized its Chairman to execute In the past, only 17 Arizona entities received a new 30-year Hoover Power Sales Contract power from Hoover.

with the Western Area Power Administration (on behalf of the United States). The contract The primary customers for Hoover power became cffeaive on June 1. within the State are irrigation and electrical districts. However, under the new contracts, Under the contract, the Authority is entitled Hoover is also now allocated to cities, towns, to 189,000 kW of existing Hoover capacity private utilities, Indian communities, munici-and 645,989,000 kWh of associated energy, as palities, cooperatives and the Central Arizona well as 188,000 kW of new Hoover capacity Water Conservation District, which will use and 212,000,000 kWh of associated energy its allocation for the pumping of Central Ari-from the Uprating Program. In addition, the zona Project water.

Authority will have new priority rights to the first 200,000,000 kWh of excess energy gener- A schedule of the Authority's 39 customers ated due to above normal water flow. and their respective allocations follows.

Q The Authority entered into new 20-year con-tracts for Hoover power with Arizona cus-Arizona Power Authority Allocations NEW SCHEDULES A AND 8 ALLOCATIONS AT GENERATION NEw NEW NEW TOTAL SCHEDULE A SCHEDULE 8 SCHEDULES A and 8 ALLOCATIONS ALLOCATIONS ALLOCATIONS TOTAL TOTAL kW kWh kW kwh kW kWh Aguila Irrigation District..... 2,450 8,389,000 3,840 4,327,000 6,290 12,716,000 Avra Valley Irrigation 8c Drainage District......... 630 2,168,000 1,010 1,138,000 1,640 3/06,000 Buckeye Water Conservation Distria.. 2,980 10,201,00 0 0 2,980 10,201,000 Central Arizona Water Conservation District*..... 0 0 0 0 0 Chandler Heights Citrus Irrigation District......... 930 3,164,000 0 0 930 3,164,000 Cortaro-Marana Irrigation Distria 6,440 22,003,000 0 0 6,440 22,003,000 Electrical District 1, Pinal..... 5,190 17,738,000 5,460 6,157,000 10,650 23,895,000 Electrical District 2, Pinai..... 19,450 66,473,000 9,740 10,989,000 29,190 77,462,000

'Pursuant to the Resolution and Final I footer Power h1arketlng Plan, if certain conditions are met, the Authority will recapture all or a pro rata ponion of Schedule B Power for the benefit of the Central Arizona Water Consavuton District.

NE>>V SCHEDULES A AND 8 ALLOCATIONS AT GENERATION NEW NEW NEW TOTAL SCIIEDULE A SCI IEDULE 8 SCIIEDULES A and 8 ALLOCATIONS ALLOCATIONS ALLOCATIONS TOTAL TOTAL ENTITY kW kWh kW kWh kW kWh Electrical District 3, Pinal..... 10,710 36,613,000 18,220 20,547>000 28,930 57,160,000 Electrical District 4, Pinal..... 19>450 66,473,000 6,450 7,271,000 25,900 73,744,000 Electrical District 5, Maricopa 350 1,208,000 0 0 350 1,208,000 Electrical District 5, Pinal..... 14,770 50,476,000 3,100 3,494,000 17,870 53,970,000 Electrical District 6, Pinal..... 8,010 27,371,000 8,420 9,499,000 16,430 36,870,000 Electrical District 7, Maricopa 10,500 35,902,000 1,490 '1,678,000 11,990 37,580,000 Electrical District 8, Maricopa 13,390 45,749,000 10,810 12,185,000 24,200 57,934,000 Harquahala Power District.... 2,490 8,495,000 3,850 4,339,000 6,340 12,834,000 Maricopa Water District...... 8,840 30,215,000 2,980 3,365,000 11,820 33,580,000 McMullen Valley KVater Conservation h Drainage District......... 3,800 12,974,000 5,290 5,970,000 9,090 18,944,000 Ocotillo 3Vater Conservation District...... 2,390 8,175,000 0 0 2,390 8,175,000 Queen Creek Irrigation District '1,770 6,043,000 2,760 3,108,000 4,530 9,151,000 Roosevelt Irrigation District... 3,220 11,020,000 4,940 5,570,000 8,160 16,590,000 Roosevelt Water Conservation District...... 6;760 23,106,000 6,540 7,377,000 13,300 30,483,000 Salt River Project........... 38,790 132,589,000 25,550 28,815,000 64,340 161,404,000 San Tan Irrigation District.... 520 1,777,000 1,340 1,513,000 1,860 3,290,000 Silverbell Irrigation 84:

Drainage District......... 710 2,417,000 0 0 710 2,417,000 Tonopah Irrigation District ... 1,550 5,297,000 2,410 2,721,000 3,960 8,018,000 Wellton-Mohawk Irrigation ~%

Drainage District......... 2,910 9,953,000 5,200 5,864>000 8,110 15,817,000 City of Mesa.............. 5,140 5,794,000 5,140 5,794,000 City of Page '1,040 1,173,000 1,040 1,173,000 City of Safford............ 2,080 2,345,000 2,080 2,345,000 Town of Thatcher.......... 1,050 1,185,000 1,050 1,185>000 Town of Wickenburg........ 2,290 2,580,000 2,290 2,580,000 Ak-Chin Indian Community... 1,110 1,255,000 1>110 1,255,000 Arizona Electric Power Cooperative............ 3,430 3,870,000 3,43Q 3,870 000 Arizona Public Service Company.............. 24,890 28,064,000 24,890 28,064,000 Citizens Utilities Company.... 2,910 3,283,000 2,910 3,283,000 Papago Tribal UtilityAuthority 2,470 2,780,000 2,470 2,780,000 San Carlos Project.......... 2,570 2,896,000 2,570 2,896,000 Tucson Electric Power Company.............. 9 620 10 848 000 9 620 10 848 ppp TOTAL: 189000 645,989,000 188.000 212,000,000 377,000 857,989000

Hoover Uprating Program

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n 1985, the U.S. Bureau of Reclamation In order to provide Arizona's proportionate began a prognm (authorized by the share of the uprating cost, the Arizona Power Hoover Power Plant Act of 1984) of Authority issued $ 98,425,000 in power uprating the existing 17 generators at Hoover resource revenue bonds in December, 1985.

Dam by replacing existing generator wind- The bond proceeds were deposited into an ings with those of increased electrical capac- escrow account until contracts with Western ity. When complete (projected to be in 1992), and Arizona customers were executed. On the Uprating Program will increase the total April 1, 1987, the bonds were rcmarkcted in capacity at Hoover by approximately 34 per- the amount of $ 89,820,000. (The decrease in cent. Non-federal financing for the prognm the bond issue amount is attributable to a 58 is being provided by participants from Cali- percent reduction in long term interest rates fornia, Arizona and Nevada. from the date of original issue.)

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Hoover Modifications Project n application, filed jointly by the Arizona Power Authority and the Colorado River Commission of i Nevada, to study the feasibility of construct-ing a new underground power plant at Hoover Dam is now being considered by

?I QJ' the Federal Energy Regulatory Commission H (FERC). (The project is known as the Hoover Modifications Project.)

If this project proves to be feasible, it is anticipated that an additional 500,000 kilo-watts of capacity would be available to the two states. The two state agencies propose to provide non-federal financing for the project L'tepvt itlagnttssott, Assistant Potter S tet a er through the issuance of revenue bonds.

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S Ginger SChtnrtz Atttlmrto Secretary Donna Robitts Adntttttstratite Secretary

Navajo Marketing Plan epresentatives from various Arizona l.

entities (including the Arizona Power Authority) and the Western Area j

Power Administration are currently working to finalize a plan to market Navajo Generat-ing Station surplus power (Navajo Marketing Plan) to comply with the provisions of the Hoover Power Plant Act of 1984. Revenues from the sale of such power will be utilized to pay for the costs of the construction of authorized features of the Central Arizona Project.

The Navajo Marketing Plan is of particular interest to the Authority because of its rela-tion to the final Hoover Power Marketing Frank Botijt li Accountant Plan adopted by the Authority in June, 1985, Rosctnary Anfwlt, Assistant Accountant and its effect on the recapture of I.loover Schedule 8 power and use of Schedule C energy by the Central Arizona Water Conser-vation District as required by the Authority's power co'ntracts with its customers.

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Dace Soutktcord>, Programmer Analyst Don Esgar, Cttstomcr Scrvlccs and Contracts Atanagcr

Operations t the end of the fiscal year, June 30, 1987, the storage in Lake Mead was 23,886,000 acre-feet of water at the lake elevation of 1,206.6 feet. During the fis-n cal year, water released through power tur-bines was 14,800,000 acre-feet producing 6,880,000,000 kilowatt-hours of energy.

Id The Authority, during this period, received tl 643,195,000 kilowatt-hours of the energy at ll! Hoover Dam.

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Beginning June 1, 1987, the Authority pro-vided firming energy to customers who

'"I5 Well testtng demottstratton In eonjunetlon artttt tlw Autlmrtsys desired the additional energy to firm their Hoover entitlements. During the period of Consennttott and RenettvSle Enemy Program. June 1987, the Authority provided 34,637,000 kilowatt-hours of firming energy.

The Authority also purchases thermal-generated energy under wholesale power.

purchase contracts with the Arizona Public Service Company and the Arizona Electric Power Cooperative. The power is sold at wholesale rates to Electrical District Nos. 4 and 5 of Pinal County and No. 8 of Maricopa County. During fiscal year 1987, the Authority delivered 20,565,182 kilowatt-hours of thermal-generated energy to these Districts.

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Financial Data. Section and 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

Arizona Power Authority t

(An Agency of the State of Arizona)

APA General Fund, Hoover Energy Fund, Hoover Uprating Fund and Combined Balance Sheets June 30, 1987 and 1986 APA GENERAL FUND 1987 1986 ASSHS PROPERTY, PLANT AND EQUIPMENT, Net (Notes 1 and 3)..... $ 314,659 $ 330,429 PRELIMINARYSURVEY AND INVESTIGATION COSTS (Note 4) .. 215,207 664,087 DEFERRED COSTS HOOVER UPRATING PROJECT (Note 5) ..

BOND ISSUANCE COSTS, NET..

INVEST$$ IENTS:

Certificates of deposit at face amount .. 2,000,000 2,000,000 CURRENT ASSETS:

Cash 741,283 880,936 Temporary investments, mainly certificates of deposit....... 850,000 850,000 Accounts receivable:

Customers'ower purcliases. 788,662 188,793 Due from (to) other fund . 660,275 Interest receivable 84,134 99,362 Prepaid purchased power and other assets 425 425 Total current assets.................... 3,124,779 2,019,516 TOTAL . $ 5,654 645 $5 014 032 FUND EQUITY AND LIABILITIES FUND EQUITY:

Contributed capital . $ 9,000 $ 9,000 Retained earnings (Notes 2 and 8):

Allocated:

Investment in property, plant and equipment 314,659 330,429 Property replacement reserve . 404,260 383,875 Preliminary survey and investigation costs. 215,207 664,087 General reserves . 500,000 500,000 Unallocated . 3 443 157 2.917 170 Total fund equity. 4,886 283 4,804,561 BONDS PAYABLE (Note 7).

LESS FUNDS HELD BY TRUSTEE (including $ 2,346,508 of unamortized premium on investments)

CURRENT LIABILITIES:

Power contracts payable 768,362 188,849 Note payable (Note 6) .

Bonds payable (Note 7).

Less funds held by trustee Accounts payable Accrued interest payable (Note 7) .. 20,622 Total current liabilities. 768,362 209,471 TOTAL $ 5,654,645 $ 5,014,032 See notes to financial statements.

HOOVER ENERGY FUND HOOVER UPRATING FUND COiMIIINED 1987 1986 1987 1986 1987 1986

$ 314,659 $ 330,429

$ 215,207 $ 664,087

$ 3,425,351 $ 1,265,991 3,425351 1,265 991 2,769,402 2,769 402 2 999 800 4,999,800 2,000,000

$ (128,689) $ 160,716 (178,683) 1,940 433,911 1,043,592 650,000 650,000 2,496,095 3,996,095 1,500,000 146,094 475,312 939,607 1,874,363 664,105 (649,289) 10,986 (10,986) (10,986) 94 7,018 1,667,811 2,881,837 1,752,039 2,988,217 287,071 287,496 425 18 210 1304032 5200915 2,872 791 8,343,904 6 196 339

$ 18,210 $ 1,304,032 $ 14,395,468 $ 4,138,782 $ 20,068,323 $ 10,456 846

$ 9,000 $ 9,000 314,659 330,429 404,260 383,875 215,207 664,087

$ 10,948 $ 500,000 510,948 1,000,000

~10,948) 257 585 ~$ 103 428) 3,328,781 3,174,755

.0. 757,585 ~103 428) 4 782,855 5,562 146 89,820,000 89,820,000

~77,918 673) ~77,918,673) 11901 327 11,901,327 546,447 861,763 1,630,125 735,296

$ 1,031,571 1,031,571 98,425,000 98,425,000 (98,915,638) (98,915,638) 18,210 148,836 499,956 167,046 499,956 1 586 970 3 097 893 1,586 970 3,118,515 18,210 546 447 2,597 569 4 138 782 3 384 141 4 894 700

$ 18,210 $ 1304,032 $ 14 395 468 $ 4,138,782 $ 20,068 323 $ 10 456 846

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

APA General Fund, Hoover Energy Fund, Hoover Uprating Fund and Combined Statements of Operations For The Years Ended June 30, 1987 and 1986 APA GENERAL FUND 1987 1986 OPERATING REVENUES.. S2,055,891 $ 1 624 181 OPERATING EXPENSES:

Purchased Power. 2,001,334 1,554,983 Transmission 3 494 3,305 Distribution .. 6,987 6,609 Administrative and general. 9,292 35,687 Depreciation and amortization .. 27,799 25,626 Allocation of depreciation ~18,091 ~(17,628 Total . 2 030815 1,608,582 OPERATING INCOME (LOSS) . 25,076 15 599 OTHER INCOME (DEDUCTIONS):

Interest income. 222,254 265,786 Other, net. (29,278) (91721)

Interest expense Total . 192 976 256,065 WRITE OFF OF DEFERRED COSTS (Note 4) . 036,330i NET INCOME (LOSS) . 5 81 722 $ 271,664 See notes to financial statements.

HOOVER ENERGY FUND HOOVER UPRATING FUND COMBINED 1987 1986 1987 1986 1987 1986

$ 4 662,689 $ 5,566,699 $ 939 607 $7 658 187 $ 7,190,880 3,090,544 3,755,442 673,468 5,765,346 5810,425 1,347,858 1,481,221 188,315 1,539,667 1,484,526 6,987 6,609 525,752 682,911 97,842 632,886 718,598 22,205 50)004 25,626 17 709 17,628 382 4,981,863 5 937 202 982 212 7 994,890 7,545,784

~319 174) (370 503) ~42 605) 836 703) ~354 904) 51,046 80,180 468,168 741,468 345,966 (405) 2 331 (29,683) (7,390)

~528 991) ~528,991) 50 641 82 511 ~60 823) 182 794 338 576

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~$ 757,585) ~$ 287 992) ~$ 103 428) $ (779 291) ~$ 16 328)

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

APA General Fund, Hoover Energy Fund, Hoover Uprating Fund and Combined Statements of Changes in Fund Equity For The Years Ended June 30, 1987 and 1986 APA GENERAL FUND 1987 . 1986 UNALLOCATED RETAINED EARNINGS:

Balance, beginning of year . $ 2,917,170 $ 2,884,082 Net income (loss). 81,722 271,664 Net transfers to allocated retained earnings 444,265 ~238,576)

Balance, end of year .. 3,443,157 2,917,170 ALLOCATED RETAINED EARNINGS:

Balance, beginning of year . 1,878,391 1,639,815 Net transfers from unallocated retained earnings .. ~444,265) 238 576 Balance, end of year .. 1,434,126 1,878,391 CONTRIBUTED CAPITAL .. 9 000 9 000 TOTAL FUND EQUITY 84 886 283 84 804 561 See notes to financial statements.

HOOVER ENERGY FUND HOOVER UPRATING FUND COMBINED 1987 1986 1987 1986 1987 1986

$ 257,585 $ 545,577 $ 3,174,755 $ 3,429,659 (757,585) (287,992) $ (103,428) (779,291) (16,328) 489,052 933,317 ~238,576)

(10,948) 257,585 ~103A28) 3 328.781 3 174,755 500,000 500,000 2,378,391 2,139,815

~489,052) ~933 317) 238 576 10 948 500,000 1,445,074 2,378 391 9 000 9,000

$ $ 757,585 $ (103,428) 84,782 855 $ 5,562,146

Arizona Power Authority r

(An Agency of the State of Arizona)

APA General Fund, Hoover Energy Fund, Hoover Uprating Fund and Combined Statements of Changes in Financial Position For The Years Ended June 30, 1987 and 1986 APA GENERAL FUND 1987 1986 FUNDS WERE PROVIDED BY:

Net income (loss) $ 81,722 $ 271,664 Charges to income not affecting funds:

Depreciation and amortization.. 27,799 25,877 Funds provided by operations. 109,521 297,541 Decrease in working capital Increase in long-term bonds payable, net Preliminary survey and investigation costs 448,880 TOTAL FUNDS PROVIDED . 4 558,401 4297 541 FUNDS WERE APPLIED TO:

Purchase of property, plant and equipment $ 12,029 $ 51,049 Deferred debits HUF .

Preliminary survey and investigation costs .. 196,081 Investments.

Bond issuance costs Increase in working capital. 546,372 50 411 TOTAL FUNDS APPLIED $ 558,401 4297 541 INCREASE (DECREASE) IN WORKING CAPITAL:

G6h. $ (139,653) $ 337,304 Temponry investments . (50,000)

Accounts receivable customers'ower purchases .. 599,869 89,859 Prepaid purchase power. (140,782)

Contested tax assessment receivable . (265,839)

Contested tax assessment payable 265,839 Due from (to) other fund .. 660,275 (28,634)

Interest receivable (15,228) (45,003)

Accounts payable 20,622 (20,622)

Power contracts payable (579,513) (91,711)

Interest payable bonds ..

Note payable Bonds payable Less funds held by trustee INCREASE (DECREASE) IN WORKING CAPITAL....... $ 546,372 $ 50,411 See notes to financial statements.

HOOVER ENERGY FUND HOOVER UPRATING FUND COMBINED 1987 1986 1987 1986 1987 1986

$ (757,585) $ (287,992) $ (103,428) $ (779,291) $ (16,328) 22,205 50 004 25,877 (757,585) (287,992) (81,223) (729,287) 9,549 757,585 287,992 $ 1,265,991 757,585 1,553,983 11,901,327 11,901,327 448 880

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

$ 12,029 $ 51,049

$ 2,159,360 $ 1,265,991 2,159,360 11265,991 196,081 2,999,800 2,999,800 2,791,607 2,791,607 3 869337 4,415,709 50 411

$ 11,820 104 $ ) 265991 $ 12 378 505 $ 1,563,532

$ (289,405) $ 160,716 $ (180,623) $ 1,940 $ (609,681) $ 499,960 (150,000) 2,496,095 2,496,095 (200,000)

(329)218) (476,150) 939,607 1,210,258 (386,291) 287,071 287,071 (140,782)

(265,839) 265,839 (660,275) 39,620 (10,986)

(6,924) (13,608) (1,214,026) 2,881,837 (1,236,178) 2,823,226 (18,210) 351,120 (499,956) 353,532 (520,578) 546,447 151,430 (861,763) (894,829) 59,719 1,510,923 (3,097,893) 1,510,923 (3,097,893) 1,031,571 (1,031,571) 1,031,571 (1,031,571) 98,425,000 (98,425,000) 98,425,000- (98,425,000)

~98 91 5 638) 98 915 638 ~98 915 638) 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 Bond Resolution Funds and Accounts For The Year Ended June 30, 1987 MONTHLY PAY)) IENT REVENUE OPERATING RESERVE CONSTRUCTION FUND ACCOUNT ACCOUNT FUND OPERATING REVENUES.......... $ 939,607 OPERATING EXPENSES:

Purchased Power............. $ 673,468 Transmission. 188,315 Administrative and general...... 97,842 Depreciation. $ 22,205 Allocation of depreciation....... 382 Total. 960,007 22 205 OPERATING GAIN (LOSS)........ 939 607 ~960 007) ~22 205)

OTHER INCOME (DEDUCTIONS):

Interest income 14,416 $ 17,324 300,252 Interest expense Total. 14 416 17 324 300 252 NET INCOME (LOSS)........... 939,607 (945,591) 17/24 278,047 ADJUST2<IENTS TO INCOMF. (LOSS)

'UNDER THE POWER RESOURCE REVENUE BOND RESOLUTION:

Add:

Accrued interest expense...

Depreciation............ 22,205 Allocation of depreciation... 382 Accrued purchased power .. 861,783 Accrued administrative and general.............. 53,942 Deduct:

'ccrued interest income....... (14,415) (17,324) (300,252)

Accrued revenue............ (939,607)

Prepaid purchased power...... (287,071)

INCOME (LOSS) AS DEFINED UNDER THE POWER RESOURCE REVENUE BOND RESOLUTION........... 6 -0. ~6330 970) 6 .0. JUNE 30, 1987 CASH AND INVESTMENTS BALANCE .. $ $ 2,710,589 $ 3,000,000 651 596 072 NOTE: The above supplemental schedule includes all funds and accounts, as defined by the APA Power Resource Revenue Bond Resolutions.

SUPPLEMENTAL SCHEDULE DEBT DEBT SERVICE POWER RESOURCE GENERAL SERVICE RESERVE DEVELOPMENT SUBORDINATED RESERVES FUND ACCOUNT FUND DEBT FUND FUND TOTAL

$ 939,607 673,468 188,315 97,842 22,205 382 982 212

~42,605)

$ 84,001 $ 52,175 468,168

~528.991) ~528,991)

~444 990) 52,'175 ~60 823)

(444,990) 52,175 (103,428) 528,991 528,991 22,205 382 861,783 53,942 (84,001) (52,175) (468,167)

(939,607)

(287,071)

$ ~$ 330 970)

$ 14,546,635 $9 036 081 $ 80 889 377

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

1.

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES System of Accounts The accounting records of the Authority are maintained in accordance with 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 additions and replacements are capitalized. Replacements of minor items of property are charged to expense as incurred. Costs of property retired are eliminated from plant accounts, and such costs plus removal expenses less salvage are charged to accumulated depreciation.

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

Preliminary Survey and Investigation Costs Certain preliminary costs relating to proposed major 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 deferred and are being amortized over the life of the bonds.

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

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

Unused Vacation Pay Vacation pay for the APA General Fund is recorded as an expense when taken or when the payment in lieu of vacation is made. As of June 30, 1987, unused vacation pay was estimated to be $ 30,843 and is not reflected in the accompanying flnancial statements.

2. FUND ACCOUNTING Hoover Energy Fund The Hoover Energy Fund accounted for revenues and expenditures applicable to the sale and transmission of power and energy received by the Authority from the Western Area Power Administration ("WAPA") under its Hoover Energy contract. Agreements with 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 the Hoover Energy contracts) will be returned to the purchasers pro rata on the basis of their energy 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 expenditures applicable to the sale and transmission of power and energy received by the Authority from WAPA under these contracts are accounted for in the Hoover Uprating Fund. The Authority's share of the Boulder Canyon Project's existing capacity will be increased by approximately 24 megawatts. Additional increments totaling approximately 188 megawatts will be received through 1992 as stages of the Hoover Uprating Project are completed (see Notes 4 and 5).

Notes to Financial Statements For the Years Ended June 30, 1987 and 1986 Hoover Uprating Fund The Hoover Uprating Fund accounts for costs incurred by the Authority in connection with the Hoover Uprating Project. Effective June 1, 1987, this fund also accounts for revenues and expenditures applicable to the sale and transmission of power and energy 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 obtain funding for the Hoover Uprating Project. These bonds were converted to $ 89,820,000 of fixed rate long-term bonds on April 1, 1987.

APA General Fund Authority operations other than those applicable to the I-Ioover Energy Fund or the Hoover Uprating Project Fund are accounted for in the Arizona Power Authority General 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 as follows:

1987 1986 Transmission and distribution plant. $ 415,031 $ 422,531 General plant.. 303 889 291 774 Total property. 718,920 714,305 Less accumulated depreciation .. 404 261 383 876 Property, net 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 INVESTIGATION COSTS Preliminary survey and investigation expenditures relating to the planning of the proposed Hoover Modification Projects have been deferred.

Construction of the Hoover ModiTication Project may be dependent upon obtaining a license from FERC. If constructed, the project would increase capacity of Hoover by installing a new power plant. The Authority believes that construction of this project is reasonably expected.

Deferred preliminary survey and investigation costs incurred in the I.Ioover ModiTication Project as of June 30, 1987 was $ 215,207.

The Hoover Uprating Project was approved under the Hoover Act of 1984. The project will increase the capacity of the Boulder Canyon Project ("Hoover" ) by rewinding the existing power 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 power commenced on June 1, 1987.

In 1987, it was determined that $ 625,382 of deferred preliminary survey and investigation costs relating 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 Energy Fund. At June 30, 1987, $ 136,330 and $ 489,052 had been written off against the APA General Fund and the Hoover'Energy Fund, respectively.

Notes to Financial Statements For 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 being amortized 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 of June 30, 1986, at an interest rate of 8.875%. Borrowings on the bank loan were used to provide funding for the Hoover Uprating Project. During 1986, the Authority incurred interest on the loan 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 to obtain funding for the Hoover Uprating Project. On April 1, 1987, $ 89,820,000 of these bonds were remarketed. The new bonds are due serially from 1993 through 2017 and bear interest ranging from 5.4% to 7.2%.
8. RETAINED EARNINGS Allocations of retained earnings appropriated for specified purposes are authorized by the Authority Commission under provisions of the Arizona Power Authority Act of 1944, as amended. The general reserves shown on the accompanying balance sheets are comprised of the following:

June 30 1987 1986 APA General Fund Reserves Operations fund .. $ 200,000 $ 200,000 Power contracts .. 100,000 100,000 System improvements and repairs 200 000 200 000 Total $ 500 000 $ 500 000 Hoover Energy Fund Reserves Operations fund .. $ 200,000 Power contracts .. 100,000 Generation contingencies and systems improvements... $ 10 986 200 000 Total $ 10 986 $ 500 000 The unallocated retained earnings of the APA General Fund are considered by the Authority Commission 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 purchase certain 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 Doslle5 'ILIS Hmkm~c+88 lllle The Arizona Power Authority Comnzission:

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

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

Our examinations also comprehended the supplemental schedule, the statement of operations of the 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 basic financial statements, presents fairly in all material respects the information sboivn therein.

Phoenix, Arizona July 31, 1987

Schedule of Power and Energy Sales Year Ending June 30, 1987~~>

For Period of Peak June 1, 1986 through May 31, 1987 Billing Demand Delivered Mills kW kWh Amount Pcr kWh SALE OF IIYDRO POWER Buckeye Water Conservation & Drainage District . 3,000 4,598,000 $ 32,209 7.01 Chandler Heights Citrus Irrigation District...... 900 3,868,888 27,534 7.12 Cortaro-Marana Irrigation District............ 7,800 29,777,000 215 400 723 Electrical District No. 2, Pinal County.......... 18,700 83,094,236 590,181 7.10 Electrical District No. 3, Pinal County.......... 10,300 44,533,612 316,686 7.11 Electrical District No. 4, Pinal County.......... 18,700 75,120,946 533,666 7.10 Electrical District No. 5, Maricopa County....... 1,000 3,766,648 26,753 7.10 Electrical District No. 5, Pinal County.......... 14,200 49,958,429 355,023 7.11 Electrical District No. 6, Pinal County.......... 7,700 32,318,138 299,703 7.11 Electrical District No. 7, Maricopa County....... 10,100 25/80,000 179,578 7.08 Maricopa Water District . 8,500 8,477,000 59,223 6.99 Ocotillo Water Conservation District.......... 3,300 8,557,191 60,736 7.10 Roosevelt Irrigation District. 3,100 5,942,000 41,905 7.05 Roosevelt Water Conservation District......... 6,500 23,387,638 187,200 7.09 Salt River Project 37,500 165,515,429 1,178,553 7.12 San Tan Irrigation District.. 500 2,128,068 15,137 7.11 Wellton-Mohawk Irrigation & Drainage District... 2,800 12,371 875 88,126 7.12 Total I.Iydro Power Sales 154,600 581,795,098 4,137,613 7.11 SALE OF TIIERMALPOWER Electrical District No. 4, Pinal County... 1,642,800 $ 814,181 Electrical District No. 5, Pinal County... 7 132 500 437,790 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 ioovcr Schedule 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 of Arizona 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 to existing allottees.

For Period of Peak Millst2>

Junc 1, 1987 through Junc 30, 1987 Billing Dclivcrcd Pcr Demand kW kWh Amount kWh SALE OF HYDRO POWER Aguila Irrigation District . 3112 955,000 14,218 10.39 Avra Valley Irrigation 8c Drainage District............. 802 240,000 3,603 10.51 Buckeye Water Conservation District.. 2,917 938,000 13,756 10.17 Chandler Heights Citrus Irrigation District............. 915 228,000 3,653 11.52 Cortaro-Marana Irrigation District .. 6,306 1,590,000 25,359 11 45 Electrical District No. 1, Pinal 6,103 '1,818,000 27,334 10.54 Electrical District No. 2, Pinal 20,864 5,598,000 87,276 11.09 Electrical District No. 3, Pinal 13,888 4,351,000 64,342 10.29 Electrical District No. 4, Pinal 20,247 6,289,000 93,260 10.33 Electrical District No. 5, Pinal 15,039 4,227,000 64,828 10.84 Electrical District No. 5, Maricopa. 347 88,000 1,401 11 42 Electrical District No. 6, Pinal 9,421 2,797,000 42,102 10.55 Electrical District No. 7, Maricopa. 10,557 2,550,000 41,335 11.71 Electrical District No. 8, Maricopa. 15,128 4,407,000 66,762 10.65 Harquahala Valley Power District<>l.

Maricopa County Municipal 5Vater District 41.......... 9,211 2,440,000 38,216 11.16 McMullen Valley Water Conservation 8 Drainage District .. 4,713 1,169,000 18,759 11.55 Ocotillo Water Conservation District. 2,340 591,000 9,420 11 44 Queen Creek Irrigation District 2,251 661,000 9,987 10.61 Roosevelt Irrigation District 4,077 1,183,000 17,946 10.67 Roosevelt Water Conservation District 7,847 2,455,000 36,321 10.29 Salt River Project.. 42,758 10,167,000 165,807 11.81 San Tan Irrigation District 763 238,000 3,524 10.31 Silverbell Irrigation 8t Drainage District<>>.............

Tonopah Irrigation District 1,972 504,000 7,997 11.37 KVellton.Mohawk Irrigation 8t Drainage District......... 3,820 1,234,000 18,069 10.14 City of Mesa .. 958 420,000 5,637 8.92 City of Page 195 85,000 1,142 8.93 City of Safford 390 170,000 2,285 8.61 Town of Thatcher 195 86,000 1 152 8.91 Town of Wickenburg. 428 188,000 2,522 8.91 Ak-Chin Indian Community 207 91,000 1)221 8.92 Arizona Electric Power Cooperative . 638 281,000 3,767 8.91 Arizona Public Service Co. 4,645 2,035,000 27/18 8.92 Citizens Utilities Co. 547 238,000 3,201 8.95 Papago Tribal Utilities Authority . 460 201,000 2,700 8.93 San Carlos Project 479 210,000 ,

2,818 8.92 Tucson Electric Power Co. 1 798 787 000 10 566 8.93 Total 216,338 61,510,000 $ 939,607 10.78 SALE OF THERMAL POWER Electrical District No. 4, Pinal. 5,700 $ 71,636 Electrical District No. 5, Pinal. 500 5,625 Electrical District No. 8, Maricopa. 10 938 3 937 500 209 960 Total Thermal Power Sales 17,138 3,937,500 8 287221 SALE OF FIRMING ENERGY Navajo and Fuel RepLzcement. 34,637,000 $ 500,054 14.44 Other Electric Revenues . $ 541,722 Total Operating Revenues. 67 658 187

Commission of the Arizona Power Authority CHAIRMANDWIGHT PATTERSON was born in Tempe, Arizona, attended Peoria elementary and high schools and is a graduate of Arizona State College in Flagstaff. After several years as a football coach 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 official and served as President of the Central Arizona Officials Association.

He was a driving force in implementing the junior college concept in Arizona and has served as President of the Maricopa Community Colleges and the Arizona State Board of Regents. He is also a for-mer member of the Maricopa Industrial Development Board and the First Interstate Board of Directors and past President of the Phoenix National Farm Loan Association.

Mr. Patterson formerly served on the Arizona Power Authority Commission as Vice Chairman from 1965-1971. 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 capacity until being elected Chairman in January, 1986.

VICE CHAIRMANJACK FRANCIS is a native of Arizona, graduating

(+CAs ~~ from North Phoenix High School and the University of Arizona, with a Bachelor of Science Degree in Business Administration. He served as a Lieutenant in the U.S. Army during the Korean conflict. He is Chairman 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 the Board of Directors of the Arizona Cotton Growers Association and the SuPima Association of America. He also served as President of the Arizona Cotton Ginners Association and as Chairman of the Phoenix Chamber of Commerce Agri-Business Committee. He is currently 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 Gila County 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 Economic Development Committee, Arizona Association of Counties, Knights of 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 the Month in February, 1972, and was selected Globe-Miami Citizen of the 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, but has spent most of her life in Arizona. She received a Bachelor' Degree in Secondary Education from the University of Arizona; a Master's Degree in Elementary Education from George Washington University; and a Doctorate Degree in Secondary Education from Arizona State University. She currently serves as the Chairman of the Board 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, on the Governor's Committee of Quality Education and on the State' Right-to-Read Advisory Board. She is past President of the Junior Woman's Club and a past Worthy Matron of the Order of Eastern Star. She is a director on the Arizona Perinatal Board of Trustees and 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 WALDEN was 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 decorations and awards, and is currently the President and Chief Operating Officer of 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 the Board 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 Community I-Iealth Center, Inc. Some of his many memberships include the Water Resources Coordination Committee of Tucson, Tucson for Tomorrow, and, previously, the Governor's Central Arizona Project Financing Study 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 fill the unexpired term of Commissioner Hugh Holub. He was reappointed by Governor Babbitt to a six-year term in January, 1986.

0 Personnel Highlights I

MR. DONALDJ. ESGAR joined the Authority Also joining the Authority on July 7, 1986, staff as Manager of Customer Services and was MR. FRANK BONFILI. Mr. Bonfili serves Contracts on June 1, 1987. Mr. Esgar retired as the Authority Accountant. He formerly from the U.S. Bureau of Reclamation earlier worked for the Department of Economic this year where he served as Chief of the Security as a Field Auditor.

Power Operation, Resources and Contracts Branch.

Arizona Ponn Autlmriy Opia Builcliug

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