Trico Electric Cooperative, Inc.

Presentation to the Arizona Power Authority

Vincent Nitido

CEO/General Manager

October 30, 2012

Founded in 1945 by farmers with a loan fromthe Rural Electric Administration (REA)

Tucson

SaddleBrooke,Mt. Lemmon

Marana,Dove Mountain

Marana,Avra Valley

Three Points, AltarValley

Arivaca,Sasabe

Vail, Corona deTucson

Service Territory

• 40,000 Member/customers+

• 3,700 square mile service territory

• 3,700 miles of distribution line

• 7 Member-elected Directors

• 124 employees• Remain a USDA Rural Utility Service borrower• 2012 peak load 175 MW

• Largely residential (95%)

• Experienced rapid growth 2000 -2008

• Still mostly rural and disbursed -10 Members per mile of line

• 2011 SEPA Solar Cooperative ofthe Year

• Projected 80 MW resource needin 2015 -

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MW

Historical Peak Demand

System Average Rates(based on 2011 actual data)

• Purchased Power: 7.96 cents/kWh

• Retail Delivered: 13.31 cents/kWh

Trico’s Allocation Request

• An allocation of Hoover A and B power

• To serve Trico’s current customers, includingagricultural, pumping and irrigation loads

• To share with other Arizona ElectricCooperatives in an allocation of ten percent ofthe aggregate resources available underHoover A and B schedules

Trico agrees with and supports the allocationprinciples set forth in the collectivepresentation made on behalf of the ArizonaCooperatives on October 30th, 2012