### Estimated Retail Rate Impacts of A**EPCO Member Retail Distribution Cooperatives Under Scenarios Vary ing Due to Cost A** **llocation**

**SCENARIO A:** Members Pay 100% SCR Cost, Regardless of Off-System Sales of Apache Production
**Member Cooperative** Residential Commercial Industrial Combined Mohave Electric Cooperative, Inc 1,212 $ 5,458

$ 286,577

$ 1,836

$ Sulphur Springs Valley E C Inc 1,203 $ 4,659

$ 1,461,500

$ 1,973

$ Trico Electric Cooperative Inc 1,532 $ 12,823

$ 85,022

$ 2,160

$ Graham County Electric Coop Inc 1,357 $ 5,557

$ 264,000

$ 2,354

$ Anza Electric Coop Inc 1,504

$ 6,264

$ 18,067

$ 1,878

$ Duncan Valley Elec Coop, Inc 1,199 $ 2,366

$ 4,330

$ 1,459

$

**SCENARIO B:** Members Pay a Portion of SCR Cost & The Portion Sold to Off-System Covers its Share of SCR Cost
**Member Cooperative** Residential Commercial Industrial Combined Mohave Electric Cooperative, Inc 1,212 5,458 $ 286,577

$ 1,836

$ Sulphur Springs Valley E C Inc 1,203 $ 4,659

$ 1,461,500

$ 1,973

$ Trico Electric Cooperative Inc 1,532 $ 12,823

$ 85,022

$ 2,160

$ Graham County Electric Coop Inc 1,357 $ 5,557

$ 264,000

$ 2,354

$ Anza Electric Coop Inc 1,504

$ 6,264

$ 18,067

$ 1,878

$ Duncan Valley Elec Coop, Inc 1,199 $ 2,366

$ 4,330

$ 1,459

$ * Member cost responsibility estimate is based on 2012 projected member sales escalated 1.1% per year to 2019, and AEPCO estimated Apache production. Assumes that Member coops receive all their consumed MWhs from Apache production and remaining balance is sold off-system.
Estimated 2019 Apache production (kWh): Estimated 2019 Member load (kWh): Allocated % of SCR cost to Members in 2019: 83% **2011 Average Retail Consumer Cost**

($)

**2011 Average Retail Consumer Cost**

($)

3,037,968,000 2,513,086,574

### Estimated Retail Rate Impacts of A**EPCO Member Retail Distribution Cooperatives Under Scenarios Vary ing Due to Cost A** **llocation**

Residential %

Increase Commercial % Increase Industrial % Increase Combined %

Increase 129 $ 10.6% 665 $ 12.2% 54,530 $ 19.0% 220 $ 12.0% 79 $ 6.6% 386 $ 8.3% 135,763 $ 9.3% 148 $ 7.5% 83 $ 5.4% 819 $ 6.4% 6,614 $ 7.8% 125 $ 5.8% 112 $ 8.3% 472 $ 8.5% 26,251 $ 9.9% 204 $ 8.7% 107 $ 7.1% 437 $ 7.0% 1,286 $ 7.1% 133 $ 7.1% 124 $ 10.3% 269 $ 11.4% 477 $ 11.0% 155 $ 10.6%

Residential %

Increase Commercial % Increase Industrial % Increase Combined %

Increase 107 $ 8.8% 550 $ 10.1% 45,108 $ 15.7% 182 $ 9.9% 66 $ 5.5% 319 $ 6.8% 112,307 $ 7.7% 122 $ 6.2% 69 $ 4.5% 677 $ 5.3% 5,471 $ 6.4% 103 $ 4.8% 93 $ 6.9% 391 $ 7.0% 21,716 $ 8.2% 169 $ 7.2% 89 $ 5.9% 362 $ 5.8% 1,064 $ 5.9% 110 $ 5.9% 102 $ 8.5% 223 $ 9.4% 394 $ 9.1% 128 $ 8.8% * Member cost responsibility estimate is based on 2012 projected member sales escalated 1.1% per year to 2019, and AEPCO estimated Apache production. Assumes that Member coops receive all their consumed MWhs from Apache production and remaining balance is sold off-system. **2019 Incremental Retail Electric Cost Due to SCR:** SCR Cost Total Paid for by Member Coops (incremental $/cust/year & % increase over 2011 Average Retail Rates)

**2019 Incremental Retail Electric Cost Due to SCR:** SCR Cost Total Paid for by Member Coops (incremental $/cust/year & % increase over 2011 Average Retail Rates)

### Estimated Retail Rate Impacts of A**EPCO Member Retail Distribution Cooperatives Under Scenarios Vary ing Due to Cost A** **llocation**

**SCENARIO A:** Members Pay 100% SCR Cost, Regardless of Off-System Sales of Apache Production
**Member Cooperative** Residential Commercial Industrial Combined Mohave Electric Cooperative, Inc 1,212 $ 5,458

$ 286,577

$ 1,836

$ Sulphur Springs Valley E C Inc 1,203 $ 4,659

$ 1,461,500

$ 1,973

$ Trico Electric Cooperative Inc 1,532 $ 12,823

$ 85,022

$ 2,160

$ Graham County Electric Coop Inc 1,357 $ 5,557

$ 264,000

$ 2,354

$ Anza Electric Coop Inc 1,504

$ 6,264

$ 18,067

$ 1,878

$ Duncan Valley Elec Coop, Inc 1,199 $ 2,366

$ 4,330

$ 1,459

$

**SCENARIO B:** Members Pay a Portion of SCR Cost & The Portion Sold to Off-System Covers its Share of SCR Cost
**Member Cooperative** Residential Commercial Industrial Combined Mohave Electric Cooperative, Inc 1,212 5,458 $ 286,577

$ 1,836

$ Sulphur Springs Valley E C Inc 1,203 $ 4,659

$ 1,461,500

$ 1,973

$ Trico Electric Cooperative Inc 1,532 $ 12,823

$ 85,022

$ 2,160

$ Graham County Electric Coop Inc 1,357 $ 5,557

$ 264,000

$ 2,354

$ Anza Electric Coop Inc 1,504

$ 6,264

$ 18,067

$ 1,878

$ Duncan Valley Elec Coop, Inc 1,199 $ 2,366

$ 4,330

$ 1,459

$ * Member cost responsibility estimate is based on 2012 projected member sales escalated 1.1% per year to 2019, and AEPCO estimated Apache production. Assumes that Member coops receive all their consumed MWhs from Apache production and remaining balance is sold off-system.
Estimated 2019 Apache production (kWh): Estimated 2019 Member load (kWh): Allocated % of SCR cost to Members in 2019: 83% **2011 Average Retail Consumer Cost**

($)

**2011 Average Retail Consumer Cost**

($)

3,037,968,000 2,513,086,574

### Estimated Retail Rate Impacts of A**EPCO Member Retail Distribution Cooperatives Under Scenarios Vary ing Due to Cost A** **llocation**

Residential %

Increase Commercial % Increase Industrial % Increase Combined %

Increase 129 $ 10.6% 665 $ 12.2% 54,530 $ 19.0% 220 $ 12.0% 79 $ 6.6% 386 $ 8.3% 135,763 $ 9.3% 148 $ 7.5% 83 $ 5.4% 819 $ 6.4% 6,614 $ 7.8% 125 $ 5.8% 112 $ 8.3% 472 $ 8.5% 26,251 $ 9.9% 204 $ 8.7% 107 $ 7.1% 437 $ 7.0% 1,286 $ 7.1% 133 $ 7.1% 124 $ 10.3% 269 $ 11.4% 477 $ 11.0% 155 $ 10.6%

Residential %

Increase Commercial % Increase Industrial % Increase Combined %

Increase 107 $ 8.8% 550 $ 10.1% 45,108 $ 15.7% 182 $ 9.9% 66 $ 5.5% 319 $ 6.8% 112,307 $ 7.7% 122 $ 6.2% 69 $ 4.5% 677 $ 5.3% 5,471 $ 6.4% 103 $ 4.8% 93 $ 6.9% 391 $ 7.0% 21,716 $ 8.2% 169 $ 7.2% 89 $ 5.9% 362 $ 5.8% 1,064 $ 5.9% 110 $ 5.9% 102 $ 8.5% 223 $ 9.4% 394 $ 9.1% 128 $ 8.8% * Member cost responsibility estimate is based on 2012 projected member sales escalated 1.1% per year to 2019, and AEPCO estimated Apache production. Assumes that Member coops receive all their consumed MWhs from Apache production and remaining balance is sold off-system. **2019 Incremental Retail Electric Cost Due to SCR:** SCR Cost Total Paid for by Member Coops (incremental $/cust/year & % increase over 2011 Average Retail Rates)

**2019 Incremental Retail Electric Cost Due to SCR:** SCR Cost Total Paid for by Member Coops (incremental $/cust/year & % increase over 2011 Average Retail Rates)

### Estimated Retail Rate Impacts of AEPCO Member Retail Distribution Cooperatives Under Scenarios Varying Due to Cost Allocation

**SCENARIO A:** Members Pay 100% SCR Cost, Regardless of Off-System Sales of Apache Production

**Member Cooperative** Avg. cents/kWh Mohave Electric Cooperative, Inc 11.53 $ 10.07

$ 6.44

$ 10.23

$ 1.23

$ Sulphur Springs Valley E C Inc 13.69 $ 10.91

$ 9.72

$ 12.04

$ 0.90

$ Trico Electric Cooperative Inc 14.31 $ 12.17

$ 9.99

$ 13.44

$ 0.78

$ Graham County Electric Coop Inc 13.49 $ 13.15

$ 11.23

$ 12.89

$ 1.12

$ Anza Electric Coop Inc 18.09

$ 18.47

$ 18.11

$ 18.17

$ 1.29

$ Duncan Valley Elec Coop, Inc 13.05 $ 11.85

$ 12.24

$ 12.68

$ 1.35

$ **SCENARIO B:** Members Pay a Portion of SCRCost & The Portion Sold to OffSystem Covers its Share of SCR Cost

**Member Cooperative** Avg. cents/kWh Mohave Electric Cooperative, Inc 11.53 $ 10.07

$ 6.44

$ 10.23

$ 1.01

$ Sulphur Springs Valley E C Inc 13.69 $ 10.91

$ 9.72

$ 12.04

$ 0.75

$ Trico Electric Cooperative Inc 14.31 $ 12.17

$ 9.99

$ 13.44

$ 0.64

$ Graham County Electric Coop Inc 13.49 $ 13.15

$ 11.23

$ 12.89

$ 0.92

$ Anza Electric Coop Inc 18.09

$ 18.47

$ 18.11

$ 18.17

$ 1.07

$ Duncan Valley Elec Coop, Inc 13.05 $ 11.85

$ 12.24

$ 12.68

$ 1.11

$ * Member cost responsibility estimate is based on 2012 projected member sales escalated 1.1% per year to 2019, and AEPCO estimated Apache production. Assumes that Member coops receive all their consumed MWhs from Apache production and remaining balance is sold off-system.
Estimated 2019 Apache production (kWh): Estimated 2019 Member load (kWh): Allocated % of SCR cost to Members in 2019:

**Earthjustice Report** 

**2010 2011**  **Impact on**

**2010 Rates Impact on** 

**2010 Rates Impact on** 

**2011 Rates** Mohave Electric Cooperative 11.13 $ 11.53

$ 4.8% 5.9% 5.7% Commercial Industrial Combined

83% Commercial

2,513,086,574 **2011 Average Retail Electric Rate**

(cents/kWh)

**2011 Average Retail Electric Rate**

(cents/kWh)

3,037,968,000 Residential Industrial Combined Residential



### Comparison Between Study Results: Earthjustice Report and Independent Model Outcomes

**2010 and 2011 Rate Impacts due to SCR with Varying Capital Estimates**

**AEPCO Member Cooperative** Avg. Residential Rates as Reported in EIA 861 **Independent Model Assuming Capital Cost Estimate of**  **Earthjustice of $80M**Sulphur Springs Valley E C 13.46 $ 13.69

$ 3.0% 3.7% 3.6% Trico Electric Cooperative 15.50 $ 14.31

$ 2.2% 2.8% 2.9% Graham County Electric Coop 13.62 $ 13.49

$ 3.7% 4.9% 4.5% Anza Electric Coop 19.43 $ 18.09

$ 2.7% 3.7% 3.8% Duncan Valley Elec Coop 13.45 $ 13.05

$ 3.7% 5.7% 5.6% **Class-A Member Average 13.60**  **$ 13.37** 

**$ 3.30%**  **4.0% 3.9%** 

### Estimated Retail Rate Impacts of AEPCO Member Retail Distribution Cooperatives Under Scenarios Varying Due to Cost Allocation

$/Customer/Y

ear % Increase Avg. cents/kWh $/Customer/

Year %

Increase Avg.

cents/kWh $/Customer/

Year %

Increase 129 $ 10.6% 1.23 $ 665

$ 12.2% 1.23 $ 54,530

$ 19.0% 79 $ 6.6% 0.90 $ 386

$ 8.3% 0.90 $ 135,763

$ 9.3% 83 $ 5.4% 0.78 $ 819

$ 6.4% 0.78 $ 6,614

$ 7.8% 112 $ 8.3% 1.12 $ 472

$ 8.5% 1.12 $ 26,251

$ 9.9% 107 $ 7.1% 1.29 $ 437

$ 7.0% 1.29 $ 1,286

$ 7.1% 124 $ 10.3% 1.35 $ 269

$ 11.4% 1.35 $ 477

$ 11.0%

$/Customer/Y

ear % Increase Avg. cents/kWh $/Customer/

Year %

Increase Avg.

cents/kWh $/Customer/

Year %

Increase 107 $ 8.8% 1.01 $ 550

$ 10.1% 1.01 $ 45,108

$ 15.7% 66 $ 5.5% 0.75 $ 319

$ 6.8% 0.75 $ 112,307

$ 7.7% 69 $ 4.5% 0.64 $ 677

$ 5.3% 0.64 $ 5,471

$ 6.4% 93 $ 6.9% 0.92 $ 391

$ 7.0% 0.92 $ 21,716

$ 8.2% 89 $ 5.9% 1.07 $ 362

$ 5.8% 1.07 $ 1,064

$ 5.9% 102 $ 8.5% 1.11 $ 223

$ 9.4% 1.11 $ 394

$ 9.1% * Member cost responsibility estimate is based on 2012 projected member sales escalated 1.1% per year to 2019, and AEPCO estimated Apache production. Assumes that Member coops receive all their consumed MWhs from Apache production and remaining balance is sold off-system.

**Impact on 2010 Rates**  **Impact on**

**2011 Rates** 9.1% 8.8% Residential **2019 Incremental Retail Electric Cost Due to SCR:** SCR Cost Total Paid for by Member Coops (cents/kWh, incremental $ per year per customer, & % increase over 2011 Average Retail Rates)

**2019 Incremental Retail Electric Cost Due to SCR:** SCR Cost Partially Paid by Members, Partially Paid by Market Sales* (cents/kWh, incremental $ per year per customer, & % increase over 2011 Average Retail Rates) Commercial Industrial

Residential Commercial Industrial



### Comparison Between Study Results: Earthjustice Report and Independent Model Outcomes

**2010 and 2011 Rate Impacts due to SCR with Varying Capital Estimates**

**Independent Model**

**Assuming Capital Cost Estimate of EPA of ~$164M** 5.6% 5.5%

4.1% 4.5% 6.8% 6.9% 5.5% 5.9% 8.3% 8.5% **6.2% 6.1%** Avg.

cents/kWh $ / Year % Increase 1.23 $ 220

$ 12.0% 0.90 $ 148

$ 7.5% 0.78 $ 125

$ 5.8% 1.12 $ 204

$ 8.7% 1.29 $ 133

$ 7.1% 1.35 $ 155

$ 10.6%

Avg. cents/kWh $ / Year % Increase 1.01 $ 182

$ 9.9% 0.75 $ 122

$ 6.2% 0.64 $ 103

$ 4.8% 0.92 $ 169

$ 7.2% 1.07 $ 110

$ 5.9% 1.11 $ 128

$ 8.8% (cents/kWh, incremental $ per year per customer, & % increase over 2011 Average Retail Rates)

(cents/kWh, incremental $ per year per customer, & % increase over 2011 Average Retail Rates) Combined

Combined

### Estimated Retail Rate Impacts of AEPCO Member Retail Distribution Cooperatives Under Scenarios Varying Due to Cost Allocation

**SCENARIO A:** Members Pay 100% SCR Cost, Regardless of Off-System Sales of Apache Production

**Member Cooperative** Avg. cents/kWh Mohave Electric Cooperative, Inc 11.13 $ 9.84

$ 6.34

$ 9.91

$ 1.23

$ Sulphur Springs Valley E C Inc 13.46 $ 11.19

$ 9.15

$ 12.04

$ 0.90

$ Trico Electric Cooperative Inc 15.50 $ 13.50

$ 9.32

$ 14.64

$ 0.78

$ Graham County Electric Coop Inc 13.62 $ 13.25

$ 11.41

$ 13.03

$ 1.12

$ Anza Electric Coop Inc 19.43

$ 19.76

$ 19.24

$ 19.50

$ 1.29

$ Duncan Valley Elec Coop, Inc 13.45 $ 12.25

$ 13.22

$ 13.13

$ 1.35

$

**SCENARIO B:** Members Pay a Portion of SCR Cost & The Portion Sold to Off-System Covers its Share of SCR Cost

**Member Cooperative** Avg. cents/kWh Mohave Electric Cooperative, Inc 11.13 $ 9.84

$ 6.34

$ 9.91

$ 1.01

$ Sulphur Springs Valley E C Inc 13.46 $ 11.19

$ 9.15

$ 12.04

$ 0.75

$ Trico Electric Cooperative Inc 15.50 $ 13.50

$ 9.32

$ 14.64

$ 0.64

$ Graham County Electric Coop Inc 13.62 $ 13.25

$ 11.41

$ 13.03

$ 0.92

$ Anza Electric Coop Inc 19.43

$ 19.76

$ 19.24

$ 19.50

$ 1.07

$ Duncan Valley Elec Coop, Inc 13.45 $ 12.25

$ 13.22

$ 13.13

$ 1.11

$ * Member cost responsibility estimate is based on 2012 projected member sales escalated 1.1% per year to 2019, and AEPCO estimated Apache production. Assumes that Member coops receive all their consumed MWhs from Apache production and remaining balance is sold off-system.
Estimated 2019 Apache production (kWh): Estimated 2019 Member load (kWh): Allocated % of SCR cost to Members in 2019: **2010 Average Retail Electric Rate** (cents/kWh)

Residential Commercial Industrial Combined Residential

3,037,968,000 2,513,086,574 83% **2010 Average Retail Electric Rate**

(cents/kWh)

Residential Commercial Industrial Combined Residential

### Estimated Retail Rate Impacts of AEPCO Member Retail Distribution Cooperatives Under Scenarios Varying Due to Cost Allocation

$/Customer/ Year %

Increase Avg.

cents/kWh $/Customer/

Year %

Increase Avg.

cents/kWh $/Customer/

Year %

Increase 129 $ 11.0% 1.23 $ 665

$ 12.5% 1.23 $ 54,530

$ 19.4% 79 $ 6.7% 0.90 $ 386

$ 8.1% 0.90 $ 135,763

$ 9.9% 83 $ 5.0% 0.78 $ 819

$ 5.8% 0.78 $ 6,614

$ 8.3% 112 $ 8.2% 1.12 $ 472

$ 8.4% 1.12 $ 26,251

$ 9.8% 107 $ 6.6% 1.29 $ 437

$ 6.5% 1.29 $ 1,286

$ 6.7% 124 $ 10.0% 1.35 $ 269

$ 11.0% 1.35 $ 477

$ 10.2%

$/Customer/ Year %

Increase Avg.

cents/kWh $/Customer/

Year %

Increase Avg.

cents/kWh $/Customer/

Year %

Increase 107 $ 9.1% 1.01 $ 550

$ 10.3% 1.01 $ 45,108

$ 16.0% 66 $ 5.6% 0.75 $ 319

$ 6.7% 0.75 $ 112,307

$ 8.2% 69 $ 4.1% 0.64 $ 677

$ 4.8% 0.64 $ 5,471

$ 6.9% 93 $ 6.8% 0.92 $ 391

$ 7.0% 0.92 $ 21,716

$ 8.1% 89 $ 5.5% 1.07 $ 362

$ 5.4% 1.07 $ 1,064

$ 5.5% 102 $ 8.3% 1.11 $ 223

$ 9.1% 1.11 $ 394

$ 8.4% * Member cost responsibility estimate is based on 2012 projected member sales escalated 1.1% per year to 2019, and AEPCO estimated Apache production. Assumes that Member coops receive all their consumed MWhs from Apache production and remaining balance is sold off-system. **2019 Incremental Retail Electric Cost Due to SCR:** SCR Cost Total Paid for by Member Coops (cents/kWh, incremental $ per year per customer, & % increase over 2010 Average Retail Rates) Residential Commercial Industrial

**2019 Incremental Retail Electric Cost Due to SCR:** SCR Cost Partially Paid by Members, Partially Paid by Market Sales* (cents/kWh, incremental $ per year per customer, & % increase over 2010 Average Retail Rates) Residential Commercial IndustrialAvg.

cents/kWh $ / Year % Increase 1.23 $ 220

$ 12.4% 0.90 $ 148

$ 7.5% 0.78 $ 125

$ 5.3% 1.12 $ 204

$ 8.6% 1.29 $ 133

$ 6.6% 1.35 $ 155

$ 10.3%

Avg. cents/kWh $ / Year % Increase 1.01 $ 182

$ 10.2% 0.75 $ 122

$ 6.2% 0.64 $ 103

$ 4.4% 0.92 $ 169

$ 7.1% 1.07 $ 110

$ 5.5% 1.11 $ 128

$ 8.5% (cents/kWh, incremental $ per year per customer, & % increase over 2010 Average Retail Rates) Combined

(cents/kWh, incremental $ per year per customer, & % increase over 2010 Average Retail Rates) Combined

### A

**verage Retail Price by State and Utility** **: Residential Sector, 2010. Highlighted columns added by F. Dóñez, EPA** 

**R9. Run Date: 11/3/2011** 

**Number of Sales**  **Revenue**

**Entity State**  **Consumers (MWh)**  **(1,000 dollars)** Mohave Electric Cooperative, Inc AZ 34,672 365,162 40,649 Sulphur Springs Valley E C Inc AZ 41,454 367,327 49,436 Trico Electric Cooperative Inc AZ 37,806 400,596 62,093 Graham County

Electric Coop Inc AZ 7,603 74,173 10,101 Anza Electric Coop Inc CA 4,152 33,247 6,461 Duncan Valley

Elec Coop, Inc AZ 1,641 14,673 1,974

(1) The Arizona state average residential utility rate for 2010 was 10.97 cents/kwh. The California state average residential utility rate for 2010 was 14.75 cents/kwh. (2) The U.S. national average residential utility rate for 2010 was 11.54 cents/kwh. (3) For Arizona utilities, multiplied price by a 2012 cost of living index of 85%. For Anza Electric Coop, used a 2012 cost of living index of 1.195 (zip code 92536, Aguanga, CA).

Avg Rate ($/MWh) Avg. Annual

Cost Per Cust SCR Incremental

Cost from Model ($/MWh) Revised Rate due

to SCR ($/MWh) Mohave Electric Cooperative, Inc 111.3 $ 1,172

$ 9.48

$ 121

$ Sulphur Springs Valley E C Inc 134.6 $ 1,193

$ 9.48

$ 144

$ Trico Electric Cooperative Inc 155.0 $ 1,642

$ 9.48

$ 164

$ Graham County Electric Coop Inc 136.2 $ 1,329

$ 9.48

$ 146

$ Anza Electric Coop Inc 194.3

$ 1,556

$ 9.48

$ 204

$ Duncan Valley Elec Coop, Inc 134.5 $ 1,203

$ 9.48

$ 144

$

UTILITY NAME YEAR Capital Shares Share of Annual SCR Cost ($000) Annual Revenues

$000 Mohave Electric Cooperative 2011 36% 8,526 $ $ 42,146 Sulphur Springs Valley E C 2011 32% 7,549 $ $ 49,703 Trico Electric Cooperative Inc 2011 21% 5,025 $ $ 58,471 Graham County Electric Coop Inc 2011 8% 1,810 $ $ 10,433 Anza Electric Coop Inc 2011 3% 595 $ $ 6,259 

### Table 6. Class of Ow**nership, Number of Consumers, Sales, Revenue, and**Duncan Valley Elec Coop, Inc 2011 1% 310 $ $ 1,988 **Class A Members 23,815**  **$ 169,000** 

**$** Mohave Electric Cooperative, Inc 2010 36% 8,526 $ 40,649

$ Sulphur Springs Valley E C Inc 2010 32% 7,549 $ 49,436

$ Trico Electric Cooperative Inc 2010 21% 5,025 $ 62,093

$ Graham County Electric Coop Inc 2010 8% 1,810 $ 10,101

$ Anza Electric Coop Inc 2010 3% 595 $ 6,461

$ Duncan Valley Elec Coop, Inc 2010 1% 310 $ 1,974

$ **Class A Members 23,815**  **$ 170,714** 

**$**

UTILITY NAME YEAR Share of Annual SCR Cost ($000) Annual Revenues

$000 Mohave Electric Cooperative 2011 36% 8,526 $ $ 21,565 Sulphur Springs Valley E C 2011 32% 7,549 $ $ 45,041 Trico Electric Cooperative Inc 2011 21% 5,025 $ $ 26,172 Graham County Electric Coop Inc 2011 8% 1,810 $ $ 6,496 Anza Electric Coop Inc 2011 3% 595 $ $ 1,810 Duncan Valley Elec Coop, Inc 2011 1% 310 $ $ 653

Mohave Electric Cooperative, Inc 2010 36% 8,526 $ 21,369

$ Sulphur Springs Valley E C Inc 2010 32% 7,549 $ 42,969

$ Trico Electric Cooperative Inc 2010 21% 5,025 $ 26,440

$ Graham County Electric Coop Inc 2010 8% 1,810 $ 5,289

$ Anza Electric Coop Inc 2010 3% 595 $ 1,888

$ Duncan Valley Elec Coop, Inc 2010 1% 310 $ 676

$

UTILITY NAME YEAR Share of Annual SCR Cost ($000) Annual Revenues

$000 Mohave Electric Cooperative 2011 36% 8,526 $ $ 7,451 Sulphur Springs Valley E C 2011 32% 7,549 $ $ 5,846 Trico Electric Cooperative Inc 2011 21% 5,025 $ $ 2,296 Graham County Electric Coop Inc 2011 8% 1,810 $ $ 3,960 Anza Electric Coop Inc 2011 3% 595 $ $ 325 Duncan Valley Elec Coop, Inc 2011 1% 310 $ $ 273

Mohave Electric Cooperative, Inc 2010 36% 8,526 $ 7,614

$ Sulphur Springs Valley E C Inc 2010 32% 7,549 $ 6,237

$Trico Electric Cooperative Inc 2010 21% 5,025 $ 2,127

$ Graham County Electric Coop Inc 2010 8% 1,810 $ 3,724

$ Anza Electric Coop Inc 2010 3% 595 $ 310

$ Duncan Valley Elec Coop, Inc 2010 1% 310 $ 220

$

UTILITY NAME YEAR Share of Annual SCR Cost ($000) Annual Revenues

$000 Mohave Electric Cooperative 2011 36% 8,526 $ 71,162

$ Sulphur Springs Valley E C 2011 32% 7,549 $ 100,590

$ Trico Electric Cooperative Inc 2011 21% 5,025 $ 86,938

$ Graham County Electric Coop Inc 2011 8% 1,810 $ 20,889

$ Anza Electric Coop Inc 2011 3% 595 $ 8,395

$ Duncan Valley Elec Coop, Inc 2011 1% 310 $ 2,914

$

Mohave Electric Cooperative, Inc 2010 36% 8,526 $ 69,632

$ Sulphur Springs Valley E C Inc 2010 32% 7,549 $ 98,642

$ Trico Electric Cooperative Inc 2010 21% 5,025 $ 90,660

$ Graham County Electric Coop Inc 2010 8% 1,810 $ 19,114

$ Anza Electric Coop Inc 2010 3% 595 $ 8,659

$ Duncan Valley Elec Coop, Inc 2010 1% 310 $ 2,869

$ 23,815 $

2019

100% Member Coverage of SCR Cost Residential Commercial Industrial

Mohave Electric Cooperative, Inc Sulphur Springs Valley E C Inc Trico Electric Cooperative Inc Graham County Electric Coop Inc

Anza Electric Coop Inc Duncan Valley Elec Coop, Inc

Partial SCR Cost Covered by Market Sales Residential Commercial Industrial

Mohave Electric Cooperative, Inc Sulphur Springs Valley E C Inc Trico Electric Cooperative Inc 2011 2011Graham County Electric Coop Inc Anza Electric Coop Inc Duncan Valley Elec Coop, Inc

### A **verage Retail Price by State and Utility** **: Residential Sector, 2010. Highlighted columns added by F. Dóñez, EPA** 

**R9.**

**A verage**  **Percentage of Percentage of**  **Av g Price**  **Normalized Normalized**  **Retail Price State**  **National Normalized by**  **Cost %age of State** **%age of National (cents/kWh)**  **Av erage (1)**  **Av erage (2)**  **of Living (3) Av** **erage (1, 3) Av** **erage (2, 3)** 11.13 101% 96% 9.46 86% 82% 13.46 123% 117% 11.44 104% 99% 15.50 141% 134% 13.18 120% 114% 13.62 124% 118% 11.58 106% 100% 19.43 132% 168% 23.22 157% 201% 13.45 123% 117% 11.43 104% 99%

(1) The Arizona state average residential utility rate for 2010 was 10.97 cents/kwh. The California state average residential utility rate for 2010 was 14.75 cents/kwh.

(3) For Arizona utilities, multiplied price by a 2012 cost of living index of 85%. For Anza Electric Coop, used a 2012 cost of living index of 1.195 (zip code 92536, Aguanga, CA).

Before SCR After SCR

Annual MWh Sales Annual Revenues Annual Revenues Inc. Sales $ Due to SCR SCR in

$/Customer per Year % Increase Due

to SCR 365,162 40,649,000 $ 44,109,406

$ 3,460,406

$ 99.80

$ 8.5% 367,327 49,435,900 $ 52,916,822

$ 3,480,922

$ 83.97

$ 7.0% 400,596 62,093,000 $ 65,889,191

$ 3,796,191

$ 100.41

$ 6.1% 74,173 10,101,000 $ 10,803,890

$ 702,890

$ 92.45

$ 7.0% 33,247 6,460,900 $ 6,775,961

$ 315,061

$ 75.88

$ 4.9% 14,673 1,973,800 $ 2,112,847

$ 139,047

$ 84.73

$ 7.0% 1,255,178 170,713,600

$ 182,608,117

$ 11,894,517

$ 11,894,517 $

Annual Sales Number of

Customers Effective Existing

Rate Impact to

Existing Rate Rate After SCR

Impact Rate and Cost

Increase Due to SCR MWh # cents/kWh cents/kWh cents/kWh % 365,445 34,782 11.53 1.23 $ 12.76 10.6% 362,952 41,311 13.69 0.90 $ 14.60 6.6% 408,656 38,174 14.31 0.78 $ 15.09 5.4% 77,362 7,691 13.49 1.12 $ 14.60 8.3% 34,600 4,162 18.09 1.29 $ 19.38 7.1% **RESIDENTIAL RATE IMPACT**15,231 1,658 13.05 1.35 $ 14.40 10.3%

**1,264,246 127,778**  **13.37 0.99**  **$ 14.36 7.4%**  365,162 34,672 11.13 1.21 $ 12.35 10.9% 367,327 41,454 13.46 0.92 $ 14.38 6.8% 400,596 37,806 15.50 0.81 $ 16.31 5.2% 74,173 7,603 13.62 1.23 $ 14.85 9.1% 33,247 4,152 19.43 1.34 $ 20.77 6.9% 14,673 1,641 13.45 1.42 $ 14.87 10.5% **1,255,178 127,328**  **13.60 1.01**  **$ 14.61 7.4%** 

Annual Sales Number of

Customers Effective Existing

Rate Impact to

Existing Rate Rate After SCR

Impact Rate and Cost

Increase Due to SCR MWh # cents/kWh cents/kWh cents/kWh % 214,237 3,951 $ 10.07 1.23 $ 11.29 12.2% 412,695 9,668 $ 10.91 0.90 $ 11.82 8.3% 215,124 2,041 $ 12.17 0.78 $ 12.94 6.4% 49,404 1,169 $ 13.15 1.12 $ 14.27 8.5% 9,800 289 $ 18.47 1.29 $ 19.76 7.0% 5,511 276 $ 11.85 1.35 $ 13.20 11.4%

217,112 3,963 $ 9.84 1.21 $ 11.06 12.3% 383,826 9,605 $ 11.19 0.92 $ 12.12 8.2% 195,917 2,008 $ 13.50 0.81 $ 14.31 6.0% 39,922 680 $ 13.25 1.23 $ 14.48 9.3% 9,556 290 $ 19.76 1.34 $ 21.10 6.8% 5,516 280 $ 12.25 1.42 $ 13.67 11.6%

Annual Sales Number of

Customers Effective Existing

Rate Impact to

Existing Rate Rate After SCR

Impact Rate and Cost

Increase Due to SCR MWh # cents/kWh cents/kWh cents/kWh % 115,625 26 6.44 1.23 $ 7.67 19.0% 60,120 4 9.72 0.90 $ 10.63 9.3% 22,984 27 9.99 0.78 $ 10.76 7.8% 35,248 15 11.23 1.12 $ 12.35 9.9% 1,796 18 18.11 1.29 $ 19.40 7.1% 2,229 63 12.24 1.35 $ 13.59 11.0%

120,171 26 6.34 1.21 $ 7.55 19.2% 68,135 4 9.15 0.92 $ 10.08 10.1% **COMMERCIAL RATE IMPACT**

**INDUSTRIAL RATE IMPACT**22,813 26 9.32 0.81 $ 10.13 8.7%

32,641 15 11.41 1.23 $ 12.64 10.8% 1,612 17 19.24 1.34 $ 20.58 7.0% 1,661 60 13.22 1.42 $ 14.64 10.7%

Annual Sales Number of

Customers Effective Existing

Rate Impact to

Existing Rate Rate After SCR

Impact Rate and Cost

Increase Due to SCR MWh # cents/kWh cents/kWh cents/kWh % 695,307 38,759 10.23 $ 1.23 $ 11.46 12.0% 835,767 50,983 12.04 $ 0.90 $ 12.94 7.5% 646,764 40,242 13.44 $ 0.78 $ 14.22 5.8% 162,014 8,875 12.89 $ 1.12 $ 14.01 8.7% 46,196 4,469 18.17 $ 1.29 $ 19.46 7.1% 22,971 1,997 12.68 $ 1.35 $ 14.03 10.6% 2,409,019 702,445 38,661 9.91 $ 1.21 $ 11.13 12.2% 819,288 51,063 12.04 $ 0.92 $ 12.96 7.7% 619,326 39,840 14.64 $ 0.81 $ 15.45 5.5% 146,736 8,298 13.03 $ 1.23 $ 14.26 9.5% 44,415 4,459 19.50 $ 1.34 $ 20.84 6.9% 21,850 1,981 13.13 $ 1.42 $ 14.55 10.8% 2,354,060

2,513,087 104,068 4.3%

Combined Residential % Increase Commercial % Increase Industrial

Combined Residential % Increase Commercial % Increase Industrial 2019 **COMBINED RATE IMPACT**

2019**%age of National**

3,460.41 $ 3,480.92 $ 3,796.19 $ 702.89 $ 315.06 $ 139.05 $ 11,894.52 $

Annual Average Customer Cost Increase due to SCR $/Year $ $ 129 4,481 $ $ 79 3,278 $ $ 83 3,175 $ $ 112 864 $ $ 107 446 $$ 124 205 $ **$ 98** 12,450 $ $ 128 4,432 $ $ 82 3,385 $ $ 86 3,250 $ $ 120 915 $ $ 107 446 $ $ 127 208 $ **$ 100** 12,636 $

Annual Average Customer Cost Increase due to SCR $/Year $ $ 665 2,627 $ $ 386 3,728 $ $ 819 1,671 $ $ 472 552 $ $ 437 126 $ $ 269 74 $

8,779 $ $ 665 2,635 $ $ 368 3,537 $ $ 792 1,590 $ $ 724 492 $ $ 442 128 $ $ 279 78 $

8,460 $

Annual Average Customer Cost Increase due to SCR $/Year $ $ 54,530 1,418 $ $ 135,763 543 $ $ 6,614 179 $ $ 26,251 394 $ $ 1,286 23 $ $ 477 30 $

2,586 $ $ 56,098 1,459 $ $ 156,957 628 $$ 7,119 185 $ $ 26,841 403 $ $ 1,271 22 $ $ 392 24 $

2,719 $

Annual Average Customer Cost Increase due to SCR Check Xcheck $/Year $/Month $ $ $ 220 18.33

$ 8,526

$ 8,526

$ $ 148 12.34

$ 7,549

$ 7,549

$ $ 125 10.41

$ 5,025

$ 5,025

$ $ 204 16.99

$ 1,810

$ 1,810

$ $ 133 11.10

$ 595

$ 595

$ $ 155 12.92

$ 310

$ 310

$ 23,815 $ 23,815

$ $ 221 18.38

$ 8,526

$ 8,526

$ $ 148 12.32

$ 7,549

$ 7,549

$ $ 126 10.51

$ 5,025

$ 5,025

$ $ 218 18.18

$ 1,810

$ 1,810

$ $ 134 11.13

$ 595

$ 595

$ $ 156 13.02

$ 310

$ 310

$ 23,815 $ 23,815

$

% Increase Combined % Increase

% Increase Combined % Increase

### A

**verage Retail Price by State and Utility** **: Residential Sector, 2010. Highlighted columns added by F. Dóñez, EPA** 

**R9. Run Date: 11/3/2011** 

**Number of Sales**  **Revenue**

**Entity State**  **Consumers (MWh)**  **(1,000 dollars)** Mohave Electric Cooperative, Inc AZ 34,672 365,162 40,649 Sulphur Springs Valley E C Inc AZ 41,454 367,327 49,436 Trico Electric Cooperative Inc AZ 37,806 400,596 62,093 Graham County

Electric Coop Inc AZ 7,603 74,173 10,101 Anza Electric Coop Inc CA 4,152 33,247 6,461 Duncan Valley

Elec Coop, Inc AZ 1,641 14,673 1,974

(1) The Arizona state average residential utility rate for 2010 was 10.97 cents/kwh. The California state average residential utility rate for 2010 was 14.75 cents/kwh. (2) The U.S. national average residential utility rate for 2010 was 11.54 cents/kwh. (3) For Arizona utilities, multiplied price by a 2012 cost of living index of 85%. For Anza Electric Coop, used a 2012 cost of living index of 1.195 (zip code 92536, Aguanga, CA).

Avg Rate ($/MWh) Avg. Annual

Cost Per Cust SCR Incremental

Cost from Model ($/MWh) Revised Rate due

to SCR ($/MWh) Mohave Electric Cooperative, Inc 111.3 $ 1,172

$ 9.48

$ 121

$ Sulphur Springs Valley E C Inc 134.6 $ 1,193

$ 9.48

$ 144

$ Trico Electric Cooperative Inc 155.0 $ 1,642

$ 9.48

$ 164

$ Graham County Electric Coop Inc 136.2 $ 1,329

$ 9.48

$ 146

$ Anza Electric Coop Inc 194.3

$ 1,556

$ 9.48

$ 204

$ Duncan Valley Elec Coop, Inc 134.5 $ 1,203

$ 9.48

$ 144

$

UTILITY NAME YEAR Capital Shares Share of Annual SCR Cost ($000) Annual Revenues

$000 Mohave Electric Cooperative 2011 36% 7,053 $ $ 42,146 Sulphur Springs Valley E C 2011 32% 6,245 $ $ 49,703 Trico Electric Cooperative Inc 2011 21% 4,157 $ $ 58,471 Graham County Electric Coop Inc 2011 8% 1,497 $ $ 10,433 Anza Electric Coop Inc 2011 3% 493 $ $ 6,259 

### Table 6. Class of Ow**nership, Number of Consumers, Sales, Revenue, and**Duncan Valley Elec Coop, Inc 2011 1% 256 $ $ 1,988 **Class A Members** 19,700 $ **169,000**

**$** Mohave Electric Cooperative, Inc 2010 36% 7,053 $ 40,649

$ Sulphur Springs Valley E C Inc 2010 32% 6,245 $ 49,436

$ Trico Electric Cooperative Inc 2010 21% 4,157 $ 62,093

$ Graham County Electric Coop Inc 2010 8% 1,497 $ 10,101

$ Anza Electric Coop Inc 2010 3% 493 $ 6,461

$ Duncan Valley Elec Coop, Inc 2010 1% 256 $ 1,974

$ **Class A Members** 19,700 $ **170,714**

**$**

UTILITY NAME YEAR Share of Annual SCR Cost ($000) Annual Revenues

$000 Mohave Electric Cooperative 2011 36% 7,053 $ $ 21,565 Sulphur Springs Valley E C 2011 32% 6,245 $ $ 45,041 Trico Electric Cooperative Inc 2011 21% 4,157 $ $ 26,172 Graham County Electric Coop Inc 2011 8% 1,497 $ $ 6,496 Anza Electric Coop Inc 2011 3% 493 $ $ 1,810 Duncan Valley Elec Coop, Inc 2011 1% 256 $ $ 653

Mohave Electric Cooperative, Inc 2010 36% 7,053 $ 21,369

$ Sulphur Springs Valley E C Inc 2010 32% 6,245 $ 42,969

$ Trico Electric Cooperative Inc 2010 21% 4,157 $ 26,440

$ Graham County Electric Coop Inc 2010 8% 1,497 $ 5,289

$ Anza Electric Coop Inc 2010 3% 493 $ 1,888

$ Duncan Valley Elec Coop, Inc 2010 1% 256 $ 676

$

UTILITY NAME YEAR Share of Annual SCR Cost ($000) Annual Revenues

$000 Mohave Electric Cooperative 2011 36% 7,053 $ $ 7,451 Sulphur Springs Valley E C 2011 32% 6,245 $ $ 5,846 Trico Electric Cooperative Inc 2011 21% 4,157 $ $ 2,296 Graham County Electric Coop Inc 2011 8% 1,497 $ $ 3,960 Anza Electric Coop Inc 2011 3% 493 $ $ 325 Duncan Valley Elec Coop, Inc 2011 1% 256 $ $ 273

Mohave Electric Cooperative, Inc 2010 36% 7,053 $ 7,614

$ Sulphur Springs Valley E C Inc 2010 32% 6,245 $ 6,237

$Trico Electric Cooperative Inc 2010 21% 4,157 $ 2,127

$ Graham County Electric Coop Inc 2010 8% 1,497 $ 3,724

$ Anza Electric Coop Inc 2010 3% 493 $ 310

$ Duncan Valley Elec Coop, Inc 2010 1% 256 $ 220

$

UTILITY NAME YEAR Share of Annual SCR Cost ($000) Annual Revenues

$000 Mohave Electric Cooperative 2011 36% 7,053 $ 71,162

$ Sulphur Springs Valley E C 2011 32% 6,245 $ 100,590

$ Trico Electric Cooperative Inc 2011 21% 4,157 $ 86,938

$ Graham County Electric Coop Inc 2011 8% 1,497 $ 20,889

$ Anza Electric Coop Inc 2011 3% 493 $ 8,395

$ Duncan Valley Elec Coop, Inc 2011 1% 256 $ 2,914

$

Mohave Electric Cooperative, Inc 2010 36% 7,053 $ 69,632

$ Sulphur Springs Valley E C Inc 2010 32% 6,245 $ 98,642

$ Trico Electric Cooperative Inc 2010 21% 4,157 $ 90,660

$ Graham County Electric Coop Inc 2010 8% 1,497 $ 19,114

$ Anza Electric Coop Inc 2010 3% 493 $ 8,659

$ Duncan Valley Elec Coop, Inc 2010 1% 256 $ 2,869

$ 19,700 $

2019

### A **verage Retail Price by State and Utility** **: Residential Sector, 2010. Highlighted columns added by F. Dóñez, EPA** 

**R9.**

**A verage**  **Percentage of Percentage of**  **Av g Price**  **Normalized Normalized**  **Retail Price State**  **National Normalized by**  **Cost %age of State** **%age of National (cents/kWh)**  **Av erage (1)**  **Av erage (2)**  **of Living (3) Av** **erage (1, 3) Av** **erage (2, 3)** 11.13 101% 96% 9.46 86% 82% 13.46 123% 117% 11.44 104% 99% 15.50 141% 134% 13.18 120% 114% 13.62 124% 118% 11.58 106% 100% 19.43 132% 168% 23.22 157% 201% 13.45 123% 117% 11.43 104% 99%

(1) The Arizona state average residential utility rate for 2010 was 10.97 cents/kwh. The California state average residential utility rate for 2010 was 14.75 cents/kwh.

(3) For Arizona utilities, multiplied price by a 2012 cost of living index of 85%. For Anza Electric Coop, used a 2012 cost of living index of 1.195 (zip code 92536, Aguanga, CA).

Before SCR After SCR

Annual MWh Sales Annual Revenues Annual Revenues Inc. Sales $ Due to SCR SCR in

$/Customer per Year % Increase Due

to SCR 365,162 40,649,000 $ 44,109,406

$ 3,460,406

$ 99.80

$ 8.5% 367,327 49,435,900 $ 52,916,822

$ 3,480,922

$ 83.97

$ 7.0% 400,596 62,093,000 $ 65,889,191

$ 3,796,191

$ 100.41

$ 6.1% 74,173 10,101,000 $ 10,803,890

$ 702,890

$ 92.45

$ 7.0% 33,247 6,460,900 $ 6,775,961

$ 315,061

$ 75.88

$ 4.9% 14,673 1,973,800 $ 2,112,847

$ 139,047

$ 84.73

$ 7.0% 1,255,178 170,713,600

$ 182,608,117

$ 11,894,517

$ 11,894,517 $

Annual Sales Number of

Customers Effective Existing

Rate Impact to

Existing Rate Rate After SCR

Impact Rate and Cost

Increase Due to SCR MWh # cents/kWh cents/kWh cents/kWh % 365,445 34,782 11.53 1.01 $ 12.55 8.8% 362,952 41,311 13.69 0.75 $ 14.44 5.5% 408,656 38,174 14.31 0.64 $ 14.95 4.5% 77,362 7,691 13.49 0.92 $ 14.41 6.9% 34,600 4,162 18.09 1.07 $ 19.16 5.9% **RESIDENTIAL RATE IMPACT**15,231 1,658 13.05 1.11 14.17 8.5%

**1,264,246 127,778**  **13.37 0.82**  **14.19 6.12%**  365,162 34,672 11.13 1.00 $ 12.14 9.0% 367,327 41,454 13.46 0.76 $ 14.22 5.7% 400,596 37,806 15.50 0.67 $ 16.17 4.3% 74,173 7,603 13.62 1.02 $ 14.64 7.5% 33,247 4,152 19.43 1.11 $ 20.54 5.7% 14,673 1,641 13.45 1.17 14.62 8.7% **1,255,178 127,328**  **13.60 0.84**  **14.44 6.15%** 

Annual Sales Number of

Customers Effective Existing

Rate Impact to

Existing Rate Rate After SCR

Impact Rate and Cost

Increase Due to SCR MWh # cents/kWh cents/kWh cents/kWh % 214,237 3,951 $ 10.07 1.01 $ 11.08 10.1% 412,695 9,668 $ 10.91 0.75 $ 11.66 6.8% 215,124 2,041 $ 12.17 0.64 $ 12.81 5.3% 49,404 1,169 $ 13.15 0.92 $ 14.07 7.0% 9,800 289 $ 18.47 1.07 $ 19.54 5.8% 5,511 276 $ 11.85 1.11 $ 12.96 9.4%

217,112 3,963 $ 9.84 1.00 $ 10.85 10.2% 383,826 9,605 $ 11.19 0.76 $ 11.96 6.8% 195,917 2,008 $ 13.50 0.67 $ 14.17 5.0% 39,922 680 $ 13.25 1.02 $ 14.27 7.7% 9,556 290 $ 19.76 1.11 $ 20.86 5.6% 5,516 280 $ 12.25 1.17 $ 13.42 9.6%

Annual Sales Number of

Customers Effective Existing

Rate Impact to

Existing Rate Rate After SCR

Impact Rate and Cost

Increase Due to SCR MWh # cents/kWh cents/kWh cents/kWh % 115,625 26 6.44 1.01 $ 7.46 15.7% 60,120 4 9.72 0.75 $ 10.47 7.7% 22,984 27 9.99 0.64 $ 10.63 6.4% 35,248 15 11.23 0.92 $ 12.16 8.2% 1,796 18 18.11 1.07 $ 19.17 5.9% 2,229 63 12.24 1.11 $ 13.35 9.1%

120,171 26 6.34 1.00 $ 7.34 15.8% 68,135 4 9.15 0.76 $ 9.92 8.3% **COMMERCIAL RATE IMPACT**

**INDUSTRIAL RATE IMPACT**22,813 26 9.32 0.67 $ 9.99 7.2%

32,641 15 11.41 1.02 $ 12.43 8.9% 1,612 17 19.24 1.11 $ 20.35 5.8% 1,661 60 13.22 1.17 $ 14.39 8.9%

Annual Sales Number of

Customers Effective Existing

Rate Impact to

Existing Rate Rate After SCR

Impact Rate and Cost

Increase Due to SCR MWh # cents/kWh cents/kWh cents/kWh % 695,307 38,759 10.23 $ 1.01 $ 11.25 9.9% 835,767 50,983 12.04 $ 0.75 $ 12.78 6.2% 646,764 40,242 13.44 $ 0.64 $ 14.08 4.8% 162,014 8,875 12.89 $ 0.92 $ 13.82 7.2% 46,196 4,469 18.17 $ 1.07 $ 19.24 5.9% 22,971 1,997 12.68 $ 1.11 $ 13.80 8.8% 2,409,019 702,445 38,661 9.91 $ 1.00 $ 10.92 10.1% 819,288 51,063 12.04 $ 0.76 $ 12.80 6.3% 619,326 39,840 14.64 $ 0.67 $ 15.31 4.6% 146,736 8,298 13.03 $ 1.02 $ 14.05 7.8% 44,415 4,459 19.50 $ 1.11 $ 20.60 5.7% 21,850 1,981 13.13 $ 1.17 $ 14.30 8.9% 2,354,060

2,513,087 104,068 4.3% **COMBINED RATE IMPACT %age of National** 

3,460.41 $ 3,480.92 $ 3,796.19 $ 702.89 $ 315.06 $ 139.05 $ 11,894.52 $

Annual Average Customer Cost Increase due to SCR $/Year $ $ 107 3,707 $ $ 66 2,712 $ $ 69 2,626 $ $ 93 715 $ $ 89 369 $$ 102 170 $ **$ 81** 10,299 $ $ 106 3,666 $ $ 68 2,800 $ $ 71 2,689 $ $ 100 757 $ $ 89 369 $ 105 172 $ **82** 10,452 $

Annual Average Customer Cost Increase due to SCR $/Year $ $ 550 2,173 $ $ 319 3,084 $ $ 677 1,383 $ $ 391 457 $ $ 362 104 $ $ 223 61 $

7,262 $ $ 550 2,180 $ $ 305 2,926 $ $ 655 1,315 $ $ 599 407 $ $ 365 106 $ $ 231 65 $

6,998 $

Annual Average Customer Cost Increase due to SCR $/Year $ $ 45,108 1,173 $ $ 112,307 449 $ $ 5,471 148 $ $ 21,716 326 $ $ 1,064 19 $ $ 394 25 $

2,140 $ $ 46,406 1,207 $ $ 129,839 519 $$ 5,889 153 $ $ 22,204 333 $ $ 1,051 18 $ $ 324 19 $

2,249 $

Annual Average Customer Cost Increase due to SCR Check Xcheck $/Year $/Month $ $ $ 182 15.16

$ 7,053

$ 7,053

$ $ 122 10.21

$ 6,245

$ 6,245

$ $ 103 8.61

$ 4,157

$ 4,157

$ $ 169 14.06

$ 1,497

$ 1,497

$ $ 110 9.18

$ 493

$ 493

$ $ 128 10.69

$ 256

$ 256

$ 19,700 $ 19,700

$ $ 182 15.20

$ 7,053

$ 7,053

$ $ 122 10.19

$ 6,245

$ 6,245

$ $ 104 8.69

$ 4,157

$ 4,157

$ $ 180 15.04

$ 1,497

$ 1,497

$ $ 110 9.20

$ 493

$ 493

$ $ 129 10.77

$ 256

$ 256

$ 19,700 $ 19,700

$E C/R Energy Strategies E.N. 1109 **APACHE PLANT - SCR Cost Assessment Model**

**Assumptions: Units**  **Sources:** Capital Cost 164,962,878 $ $ EPA Supplied Interest Rate 3.00% percent AEPCO Attachment 4 Depreciation Period 19.00 years Calculated Depreciation 8,682,257 $ $ per year Calculated Straight Line Margin 1.50% percent AEPCO Attachment 3 Taxes & Insurance 3,848,368 $ percent AEPCO Attachment 3 Escalation Rate 3.00% percent Assumed rate of inflation for O&M Variable O&M 2,788,380 $ per year AEPCO Attachment 3 Fixed O&M 1,072,576 $ per year AEPCO Attachment 3 Plant Output 3,037,968 MWh per year AEPCO Attachment 2 **Volumes Units**  **- - - - - - - 2019**  **2020 2021**  **2022 2023**  **2024 2025**  **2026 2027**  **2028 2029**  **2030 2031** 

a Estimated Apache Plant Production (AEPCO Attachment 2) MWh 3,037,968 3,037,968 3,037,968 3,037,968 3,037,968 3,037,968 3,037,968 3,037,968 3,037,968 3,037,968 3,037,968 3,037,968 3,037,968 b AEPCO System Sales Estimated Sales Escalation % 1.10% MWh 2,513,087 2,540,731 2,568,679 2,596,934 2,625,500 2,654,381 2,683,579 2,713,098 2,742,942 2,773,115 2,803,619 2,834,459 2,865,638
c ST2/ST3 Production Less System Sales a-b 524,881 497,237 469,289 441,034 412,468 383,587 354,389 324,870 295,026 264,853 234,349 203,509 172,330 d Percentage of Apache generation sold to Class-A Members % 83% **SCR Incremental Cost**

1 **Incremental Capital Expense (CAPEX)** 2 **Incremental Plant In Service** 3 ST2 & ST3 SCR + LNB/OFA $000 **164,963** 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 4 Total Incremental Plant in Service $000 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 164,963 5 **Depreciation Expense** Combined Units ST2 & ST3 6 Starting Book Value $000 164,963 156,281 147,598 138,916 130,234 121,552 112,869 104,187 95,505 86,823 78,140 69,458 60,776 7 Annual Depreciation Expense $000 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8 Ending Book Value $000 156,281 147,598 138,916 130,234 121,552 112,869 104,187 95,505 86,823 78,140 69,458 60,776 52,094 9 Accumulated Depreciation $000 8,682 17,365 26,047 34,729 43,411 52,094 60,776 69,458 78,140 86,823 95,505 104,187 112,869 10 Total Incremental Depreciation Expense 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 8,682 11 **Interest Expense** Applied on Starting Book Value $000 4,949 4,688 4,428 4,167 3,907 3,647 3,386 3,126 2,865 2,605 2,344 2,084 1,823 12 **Return on Capital** 13 Book Value $000 164,963 156,281 147,598 138,916 130,234 121,552 112,869 104,187 95,505 86,823 78,140 69,458 60,776 14 Capital Recovery $000 2,474 2,344 2,214 2,084 1,954 1,823 1,693 1,563 1,433 1,302 1,172 1,042 912 15 **Total Incremental CAPEX** $000 16,106 15,715 15,324 14,933 14,543 14,152 13,761 13,371 12,980 12,589 12,199 11,808 11,417 16 $/MWh 6.41 6.19 5.97 5.75 5.54 5.33 5.13 4.93 4.73 4.54 4.35 4.17 3.98 17 **Incremental Operating Expense (OPEX)** 18 ST2 & ST3 SCR + LNB/OFA $000 3,861 3,977 4,093 4,208 4,324 4,440 4,556 4,672 4,788 4,903 5,019 5,135 5,251 19 ST2 & ST3 SCR + LNB/OFA $000 3,848 3,848 3,848 3,848 3,848 3,848 3,848 3,848 3,848 3,848 3,848 3,848 3,848 20 Total Incremental OPEX $000 7,709 7,825 7,941 8,057 8,173 8,288 8,404 8,520 8,636 8,752 8,868 8,983 9,099 21 Total Incremental OPEX $/MWh 3.07 3.08 3.09 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.16 3.17 3.18 22 **Total Incremental Expense** 23 $000 **23,815 $**  23,540 23,265 22,990 22,715 22,441 22,166 21,891 21,616 21,341 21,066 20,791 20,516 24 $/MWh 9.48 $ 7.75 7.66 7.57 7.48 7.39 7.30 7.21 7.12 7.02 6.93 6.84 6.75 **Apache Generation Station (AEPCO) - Incremental Cost Model**

**Scenario "A": Members pay 100% of incremental cost; none paid by off-system sales** 2017/2018 Install Years

O&M Taxes & Insurance

EPA-R09-OAR-2012-0021-DRAFT-0222.xlsx SCR Incremental Cost ModelLINE NO. FUNCTIONAL COSTS MOHAVE ELECTRIC COOPERATIVE SULPHUR SPRINGS

VALLEY ELECTRIC COOPERATIVE
1 REVENUE REQUIREMENT DEVELOPMENT 2 **FIXED COSTS** 3 BASE RESOURCES $7,861,087 $6,960,795 4 OTHER EXISTING RESOURCES $2,415,172 $2,138,574 5 ADDITIONAL RESOURCES $0 $0 6 SUB-TOTAL $10,276,259 $9,099,369 7 32.4% 8 **O&M** 9 BASE RESOURCES $16,124,106 $14,277,491 10 OTHER EXISTING RESOURCES $904,604 $801,004 11 ADDITIONAL RESOURCES $0 $0 12 SUB-TOTAL $17,028,710 $15,078,495 13 35.5% 14 **ENERGY** 15 BASE RESOURCES $19,626,925 $21,122,159 16 OTHER EXISTING RESOURCES $18,594 $17,678 17 ADDITIONAL RESOURCES $0 $0 18 SUB-TOTAL $19,645,519 $21,139,837 19 27.7% 20 21 **TOTA L RESOURCE COSTS**  22 BASE RESOURCES $43,612,118 $42,360,445 23 OTHER EXISTING RESOURCES $3,338,370 $2,957,257 24 ADDITIONAL RESOURCES $0 $0 25 TOTAL $46,950,488 $45,317,702 26 31.2% 27 RATE DEVELOPMENT 28 **BILLING DETERMINA NTS**  29 BILLING DEMANDS 1,533,599 1,811,225 30 BASE RESOURCE KWH 678,088,000 718,868,000 31 OTHER EXISTING RESOURCES KWH 342,000 346,000 32 ADDITIONAL RESOURCES KWH 0 0 33 TOTAL KWH 678,430,000 719,214,000 34 35 **MONTHY CHA RGES**  36 FIXED CHARGE $856,355 $758,281 37 O&M CHARGE $1,419,059 $1,256,541 38 BASE ENERGY CHARGE $0.02894 $0.02938 39 OTHER EXISTING RESOURCE ENERGY CHARGE $0.05437 $0.05109 40 ADDITIONAL RESOURCES CHARGE $0.05437 $0.05109 41 AVERAGE ENERGY CHARGE $0.02896 $0.02939

FIXED CHARGE $10,276,260 $9,099,372 O&M CHARGE $17,028,708 $15,078,492 ENERGY SUB TOTAL $19,645,519 $21,139,837 TOTAL $46,950,487 $45,317,701 Arizona Electric Power Cooperative, Inc. DERIVATION OF REVENUE REQUIREMENTS AND RATESRevised Revenue Requirement due to SCR ($/MWh) Percentage Change In Revenue Requirement due to SCR

SCR Incremental Cost Based on Resource Insight, Inc. Capital Estimate when applied to the the SCR Incremental Cost Model Percentage Change In Revenue Requirement due to SCR
SCR Incremental Cost Based on Resource Insight, Inc. Estimate (pg. 3)

Percentage Change In Revenue Requirement due to SCR

First Year Incremental Cost 23,815 $ 23,815

$

35.80% 31.70%

Share of 2019 SCR Cost ($000) 8,526 $ 7,549

$

MWh Sales 678,430 719,214 Incremental Cost $ per MWh 12.57 $ 10.50

$

Mohave 35.80% Sulphur 31.70% Trico 21.10% Anza 2.50% DVEC 1.30% GCEC 7.60%SCHEDULE G-4 Page 1 of 2

2012 2019

TRICO ELECTRIC COOPERATIVE COLLECTIVE ALL

REQUIREMENTS MEMBERS TOTAL AEPCO

$4,633,210 $2,503,251 $21,958,343 $1,423,468 $769,077 $6,746,291 $2,869,257 $94,851 $2,964,108 $8,925,935 $3,367,179 $31,668,742

$9,503,314 $5,134,492 $45,039,403 $533,160 $288,058 $2,526,826 $281,602 $75,555 $357,157 $10,318,076 $5,498,105 $47,923,386

$14,702,775 $6,766,382 $62,218,241 $4,103,012 $855,793 $4,995,077 $3,395,252 $196,707 $3,591,959 $22,201,039 $7,818,882 $70,805,277

$28,839,299 $14,404,125 $129,215,987 $6,059,639 $1,912,928 $14,268,194 $6,546,111 $367,113 $6,913,224 $41,445,049 $16,684,166 $150,397,405

**2012 2019**  1,466,322 510,044 5,321,190 498,876,619 231,625,173 2,127,457,792 76,467,416 15,428,608 92,584,024 101,255,000 6,523,000 107,778,000 Estimated 2019 Sales 676,599,035 253,576,781 2,327,819,816 2,513,086,574

$743,828 $280,598 $5.95 $859,840 $458,175 $9.01 $0.02947 $0.02921 $0.02925 $0.04219 $0.04795 $0.04286 $0.04219 $0.04795 $0.04286 $0.03281 $0.03083 $0.03042 **2019** $8,925,936 $3,367,176 $31,668,744 $10,318,080 $5,498,100 $47,923,380 $22,201,039 $7,818,882 $70,805,277 $41,445,055 $16,684,158 $150,397,401 $154,824,000 Arizona Electric Power Cooperative, Inc. DERIVATION OF REVENUE REQUIREMENTS AND RATES

Estimated RR Source: AEPCO Exhibit

1Revenue Requirement ($/kWh) $0.0646 $0.0616 Revenue Requirement ($/MWh) $64.61 $61.61 SCR Incremental Cost ($/MWh) $9.48 $9.48 Revised Revenue Requirement due to SCR ($/MWh) $74.09 $71.08 Percentage Change In Revenue Requirement due to SCR 14.67% 15.38%

SCR Incremental Cost Based on Resource Insight, Inc. Capital Estimate when applied to the the SCR Incremental Cost Model $5.11 $5.11 Percentage Change In Revenue Requirement due to SCR 7.9% 8.3%
SCR Incremental Cost Based on Resource Insight, Inc. Estimate (pg. 3) $3.98 $3.98

Percentage Change In Revenue Requirement due to SCR 6.2% 6.5%
23,815 $ 23,815

$

21.10% 2.50% Anza 1.30% DVEC 7.60% GCEC
5,025 $ 595

$ 310 $

1,810 $
676,599 7.43 $Comparison of EPA v AEPCO re Cost Effectiveness of SCR+LNB+OFA

9/14/2012, chw

From AEPCO Estimates for SCR plus EPA notes Apache 2 Apache 3 Apache 3 Unit Output 204 204 204 Capacity factor 0.62 0.71 0.85 Annual Output (MWh) 1,107,965 1,268,798 1,518,984 Capital Cost of SCR+LNB+OFA 44,779,657 43,812,028 96,209,189 1 Capital Recovery Factor 0.0944 0.0944 0.0944 **Annualized Rate ($/yr)** 4,226,883 4,135,546 9,081,467 Fixed O&M ($/yr) 432,688 432,688 536,288 2 Variable O&M ($/kWh) 0.92 3 Variable O&M ($/yr) 1,210,656 1,532,869 1,400,929 **Annual O&M ($/Year)** 1,643,344 1,965,557 1,937,217 4 **Total Annual Cost ($/Year)** 5,869,299 6,103,078 11,018,684
Baseline Emission Rate (lb/MMBtu) 0.371 0.438 0.438 SCR Emission Rate 0.05 0.05 0.07 5 SCR Control Efficiency 87% 89% 84% Baseline Emissions (tpy) 2,333 3,028 3,625 Heat Rate (Btu/kWh) 11,351 10,898 10,898 Heat Rate (MMBtu/hr) 2,316 2,223 2,223 Annua lC.F. 0.62 0.71 0.71 Emission Rate (lb/hr) 116 111 156 Emission Rate (tpy) 314 346 484 Emissions Removed (tpy) 2,019 2,683 3,141 Annual Cost 5,869,299 6,103,078 11,018,684 **Cost**

-**effectiveness ($/ton)** 2,908 2,275 3,508

notes 1AEPCO' sestimate is $85,666 for SCR plus EPA's estimate o f$10,543,189 for LNB+OFA 2AEPCO'sestimateof$466,000forSCRplusEPA'sestimateof$70,288forLNB+OFA 3AEPCO'sestimateof$1,294,600@.85cfforSCRplusEPA'sestimateof$88,816@.71cfforLNB+OFA 4EPA'stotalsshouldactuallybe5,870,227and6,101,103percalculation 5AEPCOestimatesarebasedonmeeting.07lb./MMBtuemissionrate 6Footnote#94oftheTSDreferstoaspreadsheetfoundontheEPAdocketandnotescostdifferencesduetotaxandinsurance From Arizona Regional Haze Technical Support Document Dated July 2012, data from Tables 16, 17, 18, and 19 for

SCR+LNB+OFACol. 1 Col. 2 SCR Overfire Air & Line Description Install Low NOX Burners 1 Assumptions: $ $ 2 Estimated Capital & O&M Costs-SCR Retrofit: 3 Capital Cost 171,332,000 $ 21,086,378 $ 4 Fixed O&M Cost 932,000 $ 140,576 $ 5 Variable O&M - 85% Capacity Factor 2,589,200 $ 199,180 $ 6 In Service Date 2017 2017 7 8 FixedCharges 9 TIER Requirement 1.5 1.5 10 Depreciation Rate 5.26% 5.26% 11 Interest Rate 3.00% 3.00% 12 Taxes & Insurance 2.00% 2.00% 13 Margins - Per Tier Requirement 1.50% 1.50% 14 Total Fixed Charge Rate 11.76% 11.76% 15 16 Revenue Requirements 17 Fixed Costs: 18 Depreciation 9,017,474 $ 1,109,809 $ 19 Interest-FirstYear 5,063,945 $ 623,236 $ 20 Taxes & Insurance 3,426,640 $ 421,728 $ 21 Margin 2,531,973 $ 311,618 $ 22 Subtotal 20,040,031 $ 2,466,391 $ 23 O&M Costs 24 Fixed O&M 932,000 $ 140,576 $ 25 Variable O&M 2,589,200 $ 199,180 $ 26 Subtotal 3,521,200 $ 339,756 $ 27 28 Total Revenue Requirement 23,561,231 $ 2,806,147 $ 29 30 AEPCO Revenues Generated byProposed Rates31 Test Year Ended 12/31/2012 150,397,406 $ 150,397,406 $ 32 33 Percent Increase 15.67% 1.87%

Attachment 3_AEPCO-9/18/2012 

## Arizona Electric Power Cooperative, Inc. Estimated Revenue Requirements Associated With SCR Installation on Steam Turbine Unit Nos. 2 & 3

September 18, 2012Col. 3

Total $

192,418,378 $ LNB + OFA per EPA estimate 1,072,576 $ LNB + OFA per EPA estimate 2,788,380 $ LNB + OFA per EPA estimate *.85 /.71 c.f.

10,127,283 $ 5,687,181 $ 3,848,368 $ 2,843,590 $ 22,506,422 $
1,072,576 $ 2,788,380 $ 3,860,956 $
26,367,378 $ 128,056 $

150,397,406 $

17.53% 17.532% 15,520,000 $

10.32% 

### Estimated Revenue Requirements Associated With SCR Installation on Steam Turbine Unit Nos. 2 & 3

## A Reproduction:

Revenue Requirement

**Fixed 2017**  **2018 2019**  **2020**

Base Fixed $35,463 $36,788 $33,896 $34,489 EPA Fixed $39,593 $55,824 $58,091 $58,366 Fixed Difference $4,130 $19,036 $24,195 $23,877

**O&M** Base O&M $48,227 $49,104 $49,552 $49,749

EPA O&M $48,358 $52,387 $52,989 $53,200 Difference $131 $3,284 $3,438 $3,452

$4,261 $22,320 $27,633 $27,328 5.1% 26.0% 33.1% 32.4%

**Energy 2017**  **2018 2019**  **2020**

Base $75,692 $69,647 $71,376 $75,297 EPA $75,692 $69,647 $71,376 $75,297 Difference $0 $0 $0 $0

$79,953 $91,967 $99,009 $102,625 2.7% 14.3% 17.8% 17.1% **2017 2018**  **2019 2020** 



### Patronage Capital and Equity **2017 2018**  **2019 2020**  Base $132,907 $141,164 $146,620 $153,571 EPA $131,266 $136,419 $142,072 $149,612

**Total Change in Patronage** -$1,641 -$4,745 -$4,547 -$3,959 **Capital & Equity** -1.2% -3.4% -3.1% -2.6%

**Total Change in Long** $98,312 $184,137 $176,974 $169,421 **Total Change In Revenue Requirement**  **Total Change In Demand Revenue**

**Requirement Term Debt**  52.2% 99.2% 98.3% 97.6%**2021 2022**  **2023 2024**  **2025 2026**  **2027**

$28,664 $29,859 $30,814 $32,206 $28,888 $30,380 $32,069 $52,272 $53,313 $54,112 $55,352 $51,861 $53,208 $54,754 $23,608 $23,454 $23,298 $23,146 $22,974 $22,829 $22,685

$50,078 $51,035 $52,354 $53,951 $55,119 $56,679 $58,087 $53,647 $54,606 $55,930 $57,528 $58,716 $60,270 $61,670 $3,569 $3,571 $3,575 $3,577 $3,597 $3,591 $3,583

$27,177 $27,025 $26,874 $26,722 $26,571 $26,419 $26,268 34.5% 33.4% 32.3% 31.0% 31.6% 30.3% 29.1%

**2021 2022**  **2023 2024**  **2025 2026**  **2027** $75,419 $75,692 $76,625 $78,002 $79,177 $80,858 $83,065 $75,419 $75,692 $76,625 $78,002 $79,177 $80,858 $83,065 $0 $0 $0 $0 $0 $0 $0

$102,596 $102,717 $103,499 $104,724 $105,747 $107,278 $109,333 17.6% 17.3% 16.8% 16.3% 16.3% 15.7% 15.2% **2021 2022**  **2023 2024**  **2025 2026**  **2027**

**2021 2022**  **2023 2024**  **2025 2026**  **2027** $159,992 $167,582 $176,266 $186,514 $193,528 $202,128 $212,575 $157,034 $166,059 $176,637 $189,262 $199,163 $211,188 $225,626

-$2,958 -$1,523 $371 $2,748 $5,635 $9,060 $13,051 -1.8% -0.9% 0.2% 1.5% 2.9% 4.5% 6.1%

$161,456 $153,055 $144,197 $134,855 $125,003 $114,614 $103,658 

### Arizona Electric Power Cooperative, Inc.

EPA Analysis92.8% 90.7% 88.9% 87.2% 83.7% 80.1% 76.5%

### Exhibit 1

**2028 2029**  **2030 2031**  $34,068 $36,111 $35,037 $38,185 $56,610 $58,511 $57,288 $60,301 $22,542 $22,400 $22,251 $22,116

$59,303 $61,108 $62,714 $64,098 $62,878 $64,672 $66,277 $67,643 $3,575 $3,565 $3,562 $3,546

$26,117 $25,965 $25,814 $25,662 28.0% 26.7% 26.4% 25.1%

**2028 2029**  **2030 2031**  $84,984 $88,081 $91,454 $92,139 $84,984 $88,081 $91,454 $92,139 $0 $0 $0 $0

$111,100 $114,046 $117,267 $117,802 14.6% 14.0% 13.6% 13.2% **2028 2029**  **2030 2031** 

**2028 2029**  **2030 2031**  $225,269 $240,343 $254,706 $272,707 $242,909 $263,203 $283,450 $308,037

$17,640 $22,860 $28,744 $35,330 7.8% 9.5% 11.3% 13.0%

$92,104 $79,920 $67,070 $53,52073.0% 69.5% 64.3% 58.9%

## AEPCO Exhibit 1 (pdf page 3) 4% -9% 2% -20% YEAR 1 2 3 4 5 31669 3.0%

**2017 2018**  **2019 2020**  **2021** Base Fixed 35,463 $ 36,788

$ 33,896

$ 34,489

$ 28,664

$ EPA Fixed 39,593 $ 55,824

$ 58,091

$ 58,366

$ 52,272

$ Fixed Difference 4,130 $ 19,036

$ 24,195

$ 23,877

$ 23,608

$ ESLC Caclulation 4,130

$ 19,036

$ 24,195

$ 23,877

$ 23,608

$ **O&M** 2% 1% 0% 1% Base O&M 48,227 $ 49,104

$ 49,552

$ 49,749

$ 50,078

$ EPA O&M 48,358 $ 52,387

$ 52,989

$ 53,200

$ 53,647

$ Difference 131 $ 3,284

$ 3,438

$ 3,452

$ 3,569

$ ESLC Caclulation 131

$ 3,283

$ 3,437

$ 3,451

$ 3,569

$ 5,313 $ Incremental Rev Req 4,261 $ 22,320

$ 27,633

$ 27,328

$ 27,177

$ **Total Change In Demand Revenue Requirement**  5.1% 26.0% 33.1% 32.4% 34.5%

ESLC Caclulation 5.1% 26.0% 33.1% 32.4% 34.5% Difference to AEPCO 0.0% 0.0% 0.0% 0.0% 0.0%

Difference 4,261

$ 22,320

$ 27,633

$ 27,329

$ 27,177

$

- $

-

$

-

$ (1)

$

-

$

**Energy 2017**  **2018 2019**  **2020 2021**  Base 75,692 $ 69,647

$ 71,376

$ 75,297

$ 75,419

$ EPA 75,692 $ 69,647

$ 71,376

$ 75,297

$ 75,419

$ Difference

- $

-

$

-

$

-

$

-

$

79,953 $ 91,967

$ 99,009

$ 102,625

$ 102,596

$ 79,953 $ 91,967

$ 99,009

$ 102,625

$ 102,596

$ 2.7% 14.3% 17.8% 17.1% 17.6% **2017 2018**  **2019 2020**  **2021** ESLC Caclulation 2.7% 14.4% 17.8% 17.1% 17.6% Difference 0.0% -0.1% 0.0% 0.0% 0.0% Reduction in Base RR -2.4% -0.5% 3.0% -3.4% Base RR 159,382 $ 155,539

$ 154,824

$ 159,535

$ 154,161

$ EPA RR 163,643 $ 177,858

$ 182,456

$ 186,863

$ 181,338

$ 4,261 $ 22,319

$ 27,632

$ 27,328

$ 27,177

$ 2.0% 2.7% 14.3% 17.8% 17.1% 17.6%

2013 45,039 $ 2014 Average RR Increase between 2017 and 2027 2015 Total RR Increase betwee 2017 and 2027 2016 **Total Change In Revenue Requirement** 2017 48,227 $ 1.65%

26,367 $ 16.95% 2011 154,789 $ 2012 150,397 $ 2013 2014 2015 2016 Avg Annual % Change 2017 159,382 $ 1.2% 5.97% 2018 155,539 $ 0.6% 2019 154,824 $ 0.4% 2020 159,535 $ 0.8%4% 3% 4% -11% 5% 5% 6% 6%

6 7 8 9 10 11 12 13

**2022 2023**  **2024 2025**  **2026 2027**  **2028 2029**  29,859 $ 30,814

$ 32,206

$ 28,888

$ 30,380

$ 32,069

$ 34,068

$ 36,111

$ 53,313 $ 54,112

$ 55,352

$ 51,861

$ 53,208

$ 54,754

$ 56,610

$ 58,511

$ 23,454 $ 23,298

$ 23,146

$ 22,974

$ 22,829

$ 22,685

$ 22,542

$ 22,400

$ 23,454 $ 23,298

$ 23,146

$ 22,973

$ 22,828

$ 22,685

$ 22,542

$ 22,400

$ 2% 3% 3% 2% 3% 2% 2% 3% 51,035 $ 52,354

$ 53,951

$ 55,119

$ 56,679

$ 58,087

$ 59,303

$ 61,108

$ 54,606 $ 55,930

$ 57,528

$ 58,716

$ 60,270

$ 61,670

$ 62,878

$ 64,672

$ 3,571 $ 3,575

$ 3,577

$ 3,597

$ 3,591

$ 3,583

$ 3,575

$ 3,565

$ 3,571 $ 3,576

$ 3,577

$ 3,597

$ 3,591

$ 3,583

$ 3,575

$ 3,564

$

27,025 $ 26,874

$ 26,722

$ 26,571

$ 26,419

$ 26,268

$ 26,117

$ 25,965

$

33.4% 32.3% 31.0% 31.6% 30.3% 29.1% 28.0% 26.7% 33.4% 32.3% 31.0% 31.6% 30.3% 29.1% 28.0% 26.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 27,025 $ 26,873

$ 26,723

$ 26,571

$ 26,420

$ 26,268

$ 26,117

$ 25,965

$

- $ 1

$ (1)

$

-

$ (1)

$

-

$

-

$

-

$

**2022 2023**  **2024 2025**  **2026 2027**  **2028 2029**  75,692 $ 76,625

$ 78,002

$ 79,177

$ 80,858

$ 83,065

$ 84,984

$ 88,081

$ 75,692 $ 76,625

$ 78,002

$ 79,177

$ 80,858

$ 83,065

$ 84,984

$ 88,081

$

- $

-

$

-

$

-

$

-

$

-

$

-

$

-

$

102,717 $ 103,499

$ 104,724

$ 105,748

$ 107,277

$ 109,333

$ 111,101

$ 114,046

$ 102,717 $ 103,499

$ 104,724

$ 105,747

$ 107,278

$ 109,333

$ 111,100

$ 114,046

$ 17.3% 16.8% 16.3% 16.3% 15.7% 15.2% 14.6% 14.0% **2022 2023**  **2024 2025**  **2026 2027**  **2028 2029**  17.3% 16.8% 16.3% 16.3% 15.7% 15.2% 14.6% 14.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.6% 2.0% 2.7% -0.6% 2.9% 3.2% 3.0% 3.9% 156,586 $ 159,793

$ 164,159

$ 163,184

$ 167,917

$ 173,221

$ 178,355

$ 185,300

$ 183,611 $ 186,667

$ 190,882

$ 189,754

$ 194,336

$ 199,489

$ 204,472

$ 211,264

$ 27,025 $ 26,874

$ 26,723

$ 26,570

$ 26,419

$ 26,268

$ 26,117

$ 25,964

$ 17.3% 16.8% 16.3% 16.3% 15.7% 15.2% 14.6% 14.0%

Average RR Increase between 2017 and 2027 0.86% Total RR Increase betwee 2017 and 2027 2.39%-3% 8%

14 15

**2030 2031**  35,037 $ 38,185

$ 57,288 $ 60,301

$ 22,251 $ 22,116

$ 22,251 $ 22,116

$ 3% 2% 62,714 $ 64,098

$ 66,277 $ 67,643

$ 3,562 $ 3,546

$ 3,563 $ 3,545

$

25,814 $ 25,662

$

26.4% 25.1% 26.4% 25.1% 0.0% 0.0% 25,813 $ 25,662

$ 1 $

-

$

**2030 2031**  91,454 $ 92,139

$ 91,454 $ 92,139

$

- $

-

$

117,268 $ 117,801

$ 117,267 $ 117,802

$ 13.6% 13.2% **2030 2031**  13.6% 13.2% 0.0% 0.0% 2.1% 2.8% 189,205 $ 194,422

$ 215,019 $ 220,083

$ 25,814 $ 25,661

$ 13.6% 13.2%

### A Reproduction:

LINE NO. FUNCTIONAL COSTS MOHAVE ELECTRIC COOPERATIVE SULPHUR SPRINGS

VALLEY ELECTRIC COOPERATIVE

1 REVENUE REQUIREMENT DEVELOPMENT 2 **FIXED COSTS** 3 BASE RESOURCES $7,861,087 $6,960,795 4 OTHER EXISTING RESOURCES $2,415,172 $2,138,574 5 ADDITIONAL RESOURCES $0 $0 6 SUB-TOTAL $10,276,259 $9,099,369 7 8 **O&M** 9 BASE RESOURCES $16,124,106 $14,277,491 10 OTHER EXISTING RESOURCES $904,604 $801,004 11 ADDITIONAL RESOURCES $0 $0 12 SUB-TOTAL $17,028,710 $15,078,494 13 14 **ENERGY** 15 BASE RESOURCES $19,626,925 $21,122,159 16 OTHER EXISTING RESOURCES $18,594 $17,678 17 ADDITIONAL RESOURCES $0 $0 18 SUB-TOTAL $19,645,519 $21,139,838 19 20 21 **TOTAL RESOURCE COSTS** 22 BASE RESOURCES $43,612,118 $42,360,445 23 OTHER EXISTING RESOURCES $3,338,370 $2,957,257 24 ADDITIONAL RESOURCES $0 $0 25 TOTAL $46,950,488 $45,317,701 26 27 RATE DEVELOPMENT 28 **BILLING DETERMINANTS** 29 BILLING DEMANDS 1,533,599 1,811,225 30 BASE RESOURCE KWH 678,088,000 718,868,000 31 OTHER EXISTING RESOURCES KWH 342,000 346,000 32 ADDITIONAL RESOURCES KWH 0 0 33 TOTAL KWH 678,430,000 719,214,000 34 35 **MONTHY CHARGES** 36 FIXED CHARGE $856,355 $758,281 37 O&M CHARGE $1,419,059 $1,256,541 38 BASE ENERGY CHARGE $0.02894 $0.02938 39 OTHER EXISTING RESOURCE ENERGY CHARGE $0.05437 $0.05109 40 ADDITIONAL RESOURCES CHARGE $0.05437 $0.05109 41 AVERAGE ENERGY CHARGE $0.028957 $0.029393 **Arizona Electric Power Cooperative, Inc.** DERIVATION OF REVENUE REQUIREMENTS AND RATESSCHEDULE G-4 Page 1 of 2

TRICO ELECTRIC COOPERATIVE COLLECTIVE ALL

REQUIREMENTS MEMBERS TOTAL AEPCO

$4,633,210 $2,503,251 $21,958,343 $1,423,468 $769,077 $6,746,292 $2,869,257 $94,851 $2,964,108 $8,925,935 $3,367,179 $31,668,743

$9,503,314 $5,134,492 $45,039,403 $533,160 $288,058 $2,526,826 $281,602 $75,555 $357,157 $10,318,076 $5,498,105 $47,923,385

$14,702,775 $6,766,382 $62,218,242 $4,103,012 $855,793 $4,995,077 $3,395,252 $196,707 $3,591,959 $22,201,039 $7,818,882 $70,805,278

$28,839,299 $14,404,125 $129,215,987 $6,059,639 $1,912,928 $14,268,194 $6,546,111 $367,113 $6,913,224 $41,445,050 $16,684,166 $150,397,406

1,466,322 510,044 5,321,190 498,876,619 231,625,173 2,127,457,792 76,467,416 15,428,608 92,584,024 101,255,000 6,523,000 107,778,000 676,599,035 253,576,781 2,327,819,816

$743,828 $280,598 $5.951 $859,840 $458,175 $9.006 $0.02947 $0.02921 $0.02925 $0.04219 $0.04795 $0.04286 $0.04219 $0.04795 $0.04286 $0.032813 $0.030834 $0.030417 DERIVATION OF REVENUE REQUIREMENTS AND RATES164.9 82,481,439 $

164,962,878 $

71,938,250 $ 35,969,125 $
74,260,000 $
2,321,750 $per unit

Total