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APS to construct solar trough power plant

March 26, 2004 -- APS has broken ground on Arizona's first commercial solar trough power plant, the first such facility constructed in the United States since 1988.

Located at the company's Saguaro Power Plant in Red Rock, about 30 miles north of Tucson, the APS Saguaro Solar Trough Generating Station will have a 1-megawatt (MW) generating capacity, enough to provide for the energy needs of approximately 200 average-size homes. The plant is expected to come online in April 2005.

"This project presents a unique opportunity to further expand our renewable energy portfolio," said Peter Johnston, APS manager of Technology Development. "We are committed to developing clean renewable energy sources today that will fuel tomorrow's economy. We believe solar-trough technology can be part of a renewable solution."

Solar-trough technology uses parabolic mirrors to concentrate the sun's rays to heat mineral oil between 250 and 550 degrees. The fluid is then passed through a heat exchanger to vaporize a secondary working fluid. The vapor is used to spin a turbine, making electricity, then is condensed back into a liquid before being vaporized once again. (See diagram attached)

Historically, the significant capital cost associated with solar-trough technology did not lend itself to smaller applications. However, APS' solar trough system will combine the relatively low cost of parabolic solar trough thermal technology with the commercially available, smaller turbines usually associated with low temperature geothermal generation plants.

In addition to generating electricity for APS' customers, the solar trough plant will help APS meet the goals of the Arizona Corporation Commission's Environmental Portfolio Standard, which requires APS to generate 1.1 percent of its energy through renewable sources - 60 percent through solar - by 2007. APS owns and operates approximately 4.5 megawatts of photovoltaic solar generation around the state, and has partnered on a 3-megawatt biomass plant in Eagar, which came online in February, and a 15-megawatt wind farm to be constructed near St. Johns.

APS, Arizona's largest and longest-serving electricity utility, serves about 902,000 customers in 11 of the state's 15 counties. With headquarters in Phoenix, APS is the largest subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).





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