APS Contributes $1 Million toward NAU Partnership.

FLAGSTAFF, Ariz. -- The Arizona Public Service Foundation (NYSE:PNW) has presented Northern Arizona University with a $1 million gift to be used toward construction of the university's Applied Research and Development building and to provide scholarships and internships for students.

The building will showcase the latest innovations in high performance construction technology, energy efficient design and use of renewable energy resources. It is designed to meet the highest "Platinum" rating of the U.S. Green Building Council's Leadership in Energy and Environmental Design system. The ARD building will be one of only five Platinum LEED facilities in the world. Construction is scheduled to begin in summer 2005.

About $500,000 of the APS $1 million donation will be directed toward construction of the new building. The other $500,000 will support the APS Scholars, Leadership and Innovations Fund, which will support student scholarships and internships, as well as other initiatives selected by NAU and APS.

"APS' generosity demonstrates its faith in NAU as an institution that emphasizes environmental research and outreach, as well as excellence in undergraduate education," said NAU President John D. Haeger. "We value our partnership with APS and look forward to their continuing involvement with our faculty and students."

Gary Stuart, president of the Arizona Board of Regents, echoed Haeger's praise for APS and NAU's environmental leadership. "NAU and APS have provided services to Arizona's urban and rural communities for more than a century," he said. "Their work together has provided leadership, community service, economic development and education across the state, serving diverse communities and meeting the needs of Arizona's citizens."

"APS is proud to support NAU's environmental vision of the ARD facility," said Daniel Froetscher, general manager, APS Northern Arizona Customer Service. "Like NAU, APS is committed to ensuring that renewable technology is a component of the state's energy future. This type of partnership will help drive our collective future toward sustainable, cost-effective and reliable energy."

The ARD facility will house several NAU environmental and community partnership programs. The facility will also serve as a hub for campus sustainability efforts and provide opportunities for student environmental projects.

The LEED certification application will include the construction and installation of a 160-kilowatt photovoltaic system that will provide at least 20 percent of the electricity for the ARD building.

An additional $500,000 will come from APS' Environmental Portfolio Standard Credit Purchase Program, made possible by the Arizona Corporation Commission's adoption of the program in 2001.

The EPS established goals for APS and other retail energy providers to generate a percentage of their electricity from renewable resources. The use of renewable energy is a critical component of LEED certification. The ARD building will serve as a model for sustainable building technology in Arizona and the Southwest.