Electrical District No. 3 is committed to providing reliable service, competitively priced energy services, sound business and planning practices, and a safe distribution system to the communities we serve.

SAFETY

Individual and corporate responsibility to protect the health and safety of ourselves, our customers, and those around us daily.

INTEGRITY

Show Respect. Have Good Judgement. Be honest and dependable.

PROFESSIONALISM

Professionalism is an individual duty within our organization. It is our social responsibility to not only represent ourselves, but also represent our entire organization with an outstanding work ethic, a lasting impression, and being loyal to those we serve.

TEAMWORK (TEAM)

Together Everyone Achieves More

RESPECT

Respect requires consideration and helpfulness to others. We must all treat others how we would like to be treated...fairly and with patience. Our limits as individuals let us learn how to respect one another.

Electrical District No. 3 of Pinal County (“ED3” or “District”) is a political subdivision of the State of Arizona formed in 1926 as a Special District by the Pinal County Board of Supervisors. ED3 is a cost- based (not-for-profit) utility with a seven (7) member Board of Directors and its purpose is to:

a) provide power at a competitive cost within sound business principles and b) provide affordable irrigation pumping to agricultural customers.

ED3 is a full-service utility providing energy services to residential, commercial, agricultural, and industrial users and is responsible for power purchase, transmission arrangement, construction, operations and maintenance of the distribution electrical system. The District currently serves approximately 36,000 meters and 65,000 irrigable acres.

ED3 is organized with the authority, rights, and privileges to distribute electrical power and energy to all within its service area pursuant to the Arizona Revised Statute.

The District is divided into seven (7) Divisions which are governed by a Director elected by the landowners owning at least one-tenth (0.10) acres within the Division’s Boundary. Directors serve on the Board for a three (3) year term with staggered term expiration dates. Per ARS § 48-1742 (A) elections are held on the second Saturday in January annually for the Division(s) in which the term of office is expiring.

The Board establishes the policies for management and oversees the business affairs of the District, while the General Manager of the District has management responsibilities for the District. The General Manager directs a full-service utility with a staff of approximately 140, including field operations, engineering, customer service, finance, and administrative personnel.

The District owns and operates 1,700 miles of distribution lines. The District also owns and operates twelve 69 kV to 12 kV substations, the Maricopa Receiving Substation, and will soon complete construction on a thirteenth substation.

The District purchases power from the Arizona Power Authority (Hoover Power), Western Area Power Authority (WAPA - Salt Lake City Area Integrated Projects “SLCA / IP” and Parker Davis Power), other energy marketing firms, and from projects through the Southwest Public Power Agency (SPPA). The District’s long-term power supply contract with Onward Energy (Mesquite Power Plant) is part of the SPPA Pooling project. In 2024, the District became a member of WSPP, Inc., an organization of electric wholesale market entities. The District is a participant in the Hoover Power Resource Exchange Program and a party to an Integrated Resource Scheduling Agreement which permits the District and other similarly situated utilities to integrate and exchange Hoover, SLCA / IP, and Parker Davis power resources. The District has a long-term power purchase agreement for power from the Mesquite Natural Gas generating station located in Arlington, Arizona operated by SRP and owned by Onward Energy. In 2022, the District announced its participation in the BrightNight Box Canyon Solar project which went into service on June 2, 2025. The project represents the first utility-scale solar project in our power supply portfolio. The utility-scale solar project is located in Pinal County, Arizona near the

SRP Abel Substation. In early 2024, ED3 announced that it has selected the Apache Solar II project located at the Apache Generating Station in Cochise County, Arizona as an addition to its power supply portfolio. ED3 will receive approximately 38 MW of solar and 38 MW of 4-hour battery energy storage under a long-term purchase power agreement tentatively scheduled to become operational in December 2025. The Apache Solar II project is in concert with other public power and electrical cooperatives and includes the first utility-scale battery project for ED3 to increase flexibility for peaking and power delivery requirements. The Box Canyon Solar and Apache Solar II projects will help ED3 meet its 100 x 100 goal of having 100 MW of new renewable resources in the power supply portfolio by our 100th Anniversary year in 2026. In 2025, ED3 announced that it was participating in the Pinal Solar/Eloy Valley III solar and battery project with a tentative commercial date of winter 2027/2028. ED3 will receive approximately 37 MW of solar and 47 MW of battery energy storage (4-hour).

Detailed below are the District’s current contractual commitments:

1. Hoover A Capacity and Energy (Contingent Resource)

2. Salt Lake City Area Integrated Projects / Colorado River Storage Project (CRSP) Power (Firm Resource with Firming)

3. Parker-Davis Project (Firm Power)

4. Market Purchases (Firm Capacity and Energy)

5. Mesquite Generating Station (Firm Capacity and Energy)

6. Box Canyon Solar

7. Apache Solar II (tentative date of winter 2025/2026)

8. Pinal Solar/Eloy Valley III (tentative date of winter 2027/2028)

The formation of the District was completed on January 5, 1926, with the original boundaries comprising approximately 87,000 acres. The area of the District was increased in 1948, when the Board of Directors completed the steps as prescribed by law to annex certain contiguous lands, to approximately 112,000 irrigable acres.

In 1960, the District entered into an agreement with Arizona Public Service (APS) to purchase certain APS-owned electrical facilities located within the ED3 boundaries which were used primarily for rendering electric service for irrigation pumping and small family farms within the District. Simultaneously, an agreement was entered into between ED3 and APS under which ED3 would lease back to APS the acquired properties for operation by APS as the agent for the District. Since 1961, ED3 has owned the transmission and distribution system located within its service area. In 1989, Electrical District No. 1 of Pinal County (“ED1”) and ED3 consolidated their electric operations under ED3.

In 2001, the District terminated the lease back agreement with APS and in March of 2002, the District and APS entered into an agreement under which the District planned to purchase the Sexton Substation and the 69 kV line running from the Sexton Substation and the APS-owned extensions of its distribution facilities fed from the District’s facilities (“Split Ends”). In addition to these facilities within the District boundaries, APS and the District reached an agreement in 2006 to expand the District’s electric service territory to serve the additional Split Ends customers.

The Arizona Corporation Commission (ACC) approved the sale of the “Split Ends” and the transfer of all customers within the District's service area to ED3 in May 2010, expanding ED3’s service boundaries to include approximately 245,500 acres and currently encompass over 384 square miles and includes the City of Maricopa and the Town of Stanfield. This consolidation left ED3 as the sole provider within its service territory and relieved inefficiencies and duplication of facilities and services.

The general area of the District’s service territory is south of the Gila River Indian Community, north of the Tohono Indian Community, east of the Pinal-Maricopa County line and west of the City of Casa Grande. The City of Maricopa and the unincorporated area of the Town of Stanfield are included in the District’s boundaries. The Ak-Chin Indian Reservation is not part of the District; however, the District provides transmission, as well as, operations and maintenance services to the Ak-Chin Indian Reservation. During 2018-2020, the District started to provide customer service and billing services to several other small public power utilities.

The District experienced substantial growth in the number of its residential and commercial customers between 2002 through 2008. During that time, the City of Maricopa incorporated and saw a population growth from about 1,000 to over 51,000. During this major growth period, ED3 doubled its substations, added a 69 kV sub-transmission loop, and several hundred miles of both underground and overhead distribution lines to provide the infrastructure to support the growth within its service territory and add reliability to the District’s transmission system. The District enhanced its Customer Service Department during this time by adding staff, online services, and a range of billing and payment choices.

To finance the expansion, the District was able to issue tax-exempt bonds on several occasions. These investments supported the major commercial, retail, and residential development, and will provide ample capacity for continuing growth. In 2023, the Districts bonds were reaffirmed A+ Stable by S&P Global.

The District has approximately 36,000 meter connections. The current population of the City of Maricopa is approximately 75,000.