Arizona G&T Cooperatives to Provide Energy and Transmission Services to Metropolitan Water District of Southern California

Metropolitan is Nation’s Largest Provider of Treated Drinking Water

LOS ANGELES & BENSON, Ariz.–(BUSINESS WIRE)–Arizona G&T Cooperatives (AzGT) has entered into two agreements to
provide scheduling and trading services as well as power system
operation services to the Metropolitan Water District of Southern
California (Metropolitan), a state-established cooperative of 26 cities
and water agencies serving nearly 19 million people.

Under the Scheduling and Trading Agreement, AzGT will provide
Metropolitan with energy management and scheduling services as well as
California Independent System Operator (CAISO) scheduling coordinator
services through its association with ACES (Alliance for Cooperative
Energy Services Power Marketing LLC/www.acespower.com).
ACES is a national power trading cooperative that operates its West
Regional Trading Center at the AzGT main campus in Benson, Az.

Under the Power System Operation Services Agreement, AzGT will provide
Metropolitan (www.mwdh2o.com)
with a variety of system operation services, including performing the
Transmission Operator (TOP) function with respect to Metropolitan’s bulk
electric system (BES) facilities and providing appropriate operational
and monitoring activities related to the Colorado River Aqueduct (CRA)
electrical system. These functions will help Metropolitan operate in
compliance with reliability standards as established by multiple
agencies, including the Federal Energy Regulatory Commission (FERC), the
North America Electric Reliability Corporation (NERC), and the Western
Electricity Coordinating Council (WECC). Metropolitan is also in the
CAISO electricity market and AzGT will also help Metropolitan comply
with regulatory standards.

Metropolitan owns a 230,000-volt transmission system that provides power
to its CRA pumps located in eastern San Bernardino and Riverside
counties. Metropolitan also has long-term contracts for energy from the
Hoover and Parker dams. This energy is transmitted over the transmission
lines to the CRA pumps.

Metropolitan delivers an average of 1.5 billion gallons of water per day
to a 5,200-square-mile service area that includes Los Angeles, Orange,
Riverside, San Bernardino, San Diego and Ventura counties.

Metropolitan will become the fifth Class D member of AzGT to receive
energy and transmission services without utilizing AzGT energy or
transmission facilities.

Patrick Ledger, AzGT CEO, said the agreements mark a major milestone for
both entities.

“We have appreciated the opportunity to work with the dedicated staff at
Metropolitan on an arrangement that we believe will be favorable for
both our respective organizations. We understand that Metropolitan has
the awesome responsibility to provide a safe and reliable water supply
to millions of people in Southern California. We look forward to
assisting Metropolitan in this important mission by providing them with
effective, efficient, and cost-effective energy services,” Ledger said.

Metropolitan’s decision to partner with AzGT came, in part, after
discussions with another large water conveyer in the region, the Central
Arizona Water Conservation District, which operates the Central Arizona
Project and is an AzGT Class D member. Metropolitan was also encouraged
by AzGT’s relationship with ACES.

“We’re excited to start our new partnership with AzGT,” Metropolitan
General Manager Jeffrey Kightlinger said.

“The agreements, negotiated over the past 18 months, will provide the
necessary energy and power system services for Metropolitan to continue
its reliable and efficient delivery of Colorado River water to its
member agencies. We look forward to a long and mutually beneficial
relationship with AzGT,” Kightlinger said.

About Arizona G&T Cooperatives

Arizona Electric Power Cooperative (AEPCO) and Sierra Southwest (Sierra)
collectively make up Arizona G&T Cooperatives. AEPCO owns and operates
the 605-megawatt (combined gross) Apache Generating Station, located at
Cochise, east of Benson. AEPCO also owns and maintains more than 610
miles of transmission lines and 50 substations to provide wholesale
electric power from Apache to six member distribution cooperatives in
southern Arizona, western New Mexico, northwestern Arizona and
California.

Combined, the distribution cooperatives that receive AEPCO’s wholesale
power serve more than 150,000 meters representing more than 400,000
individual residential, commercial, agricultural, and industrial
member/consumers.

The Class A member cooperatives that receive wholesale power from AEPCO
include Duncan Valley Electric Cooperative, Duncan; Graham County
Electric Cooperative, Pima; Mohave Electric Cooperative, Bullhead City;
Sulphur Springs Valley Electric Cooperative, Willcox; Trico Electric
Cooperative, Marana; and our California member, Anza Electric
Cooperative, Anza, California.

These member cooperatives own the AzGT and, by extension, the G&T
Cooperatives are owned by their members—the people at the end of the
line who use the power. Some of these cooperatives also borrow from the
Rural Utilities Service, a federal agency.

About Metropolitan Water District of Southern California

The Metropolitan Water District of Southern California is a regional
wholesaler that delivers water to 26 member public agencies – 14 cities,
11 municipal water districts, and one county water authority – which in
turn provide water to 19 million people in Los Angeles, Orange,
Riverside, San Bernardino, San Diego and Ventura counties. Metropolitan
is governed by a 38-member board of directors representing their
respective member agencies, ensuring each member agency is part of the
governance of Metropolitan.

To supply the more than 300 cities and unincorporated areas in Southern
California with reliable and safe water, Metropolitan owns and operates
an extensive water system, including: the Colorado River Aqueduct, 16
hydroelectric facilities, nine reservoirs, 830 miles of large-scale
pipelines and five water treatment plants. Metropolitan is the largest
distributor of treated drinking water in the United States. The district
imports water from Northern California and the Colorado River to
supplement local supplies. It also helps its member agencies develop
water recycling, storage and other local resource programs to provide
additional supplies and conservation programs to reduce regional demands.

Contacts

AEPCO:
Geoff Oldfather, (520) 586-5465, C: (520) 444-3473
[email protected]
or
J.D.
Wallace, (520) 586-5157, C: (520) 235-4203
[email protected]
or
MWD:
Armando
Acuña, (213) 217-6853, C: (530) 574-3111
[email protected]
or
Bob
Muir, (213) 217-6930, C: (213) 324-5213
[email protected]