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PROJECT SUMMARY UniSource Energy Services (UES) is planning to upgrade an existing 115,000 volt (115kV) transmission line to a 138,000 volt (138kV) transmission line between the Vail Substation in Tucson and the Valencia Substation in Nogales, Arizona. The existing line is the primary electrical line serving Nogales, Arizona and other communities along the Santa Cruz River south of Green Valley, Arizona. The upgrade is necessary to adequately and reliably serve the area now and in the future. It is also being built in response to an order by the Arizona Corporation Commission. This is the second newsletter distributed to the public regarding this project. PROJECT UPDATE UES has continued to conduct activities in evaluating the existing power line route and identified alternatives, with the goal of achieving the best possible solution for improving the infrastructure. Since the last newsletter was circulated, several meetings have been held with interested groups and the public to solicit comments and identify issues for consideration. UES also has designated a study area and examined a number of alternatives based on criteria that efficiently use existing infrastructure and rights-of-way, and avoid incompatible features and land uses. UES seeks additional input from the public in response to the range of alternatives, and to suggest additional options, as appropriate. The study and alternatives identified by UES are depicted on the enclosed map. ALTERNATIVE ANALYSIS The strengths and weaknesses of each alternative will be analyzed. Strengths of a project alternative include the use of an existing right-of-way; adaptive use of existing utility infrastructure; and avoidance of sensitive land uses, and biological or cultural resources. Examples of weaknesses include a high cost of construction, maintenance, or operation of the facility; the potential for impacts to sensitive resources; and incompatible land uses. The evaluation process will lead to the selection of suitable alternative alignments, which will be presented to the Arizona Power Plant and Transmission Line Siting Committee for consideration and then to the Arizona Corporation Commission for approval of a Certificate of Environmental Compatibility. PUBLIC INVOLVEMENT AND OPEN HOUSES UES will be hosting another series of public open houses to seek input on the project. The open houses are scheduled at the following locations, dates and times: TUCSON HOLIDAY INN HOTEL & SUITES 4550 South Palo Verde Road, Tucson Tuesday, May 27 5:30 p.m. – 7:30 p.m. GREEN VALLEY Joyner-Green Valley Branch Library 601 N. La Cañada Drive, Green Valley May 28, 2008 5:00 p.m. – 7:00 p.m. NOGALES Nogales High School Auditorium 1905 N. Apache Blvd., Nogales May 29, 2008 5:30 p.m. – 7:30 p.m. We welcome your questions, comments and concerns regarding this proposed project. Please call the 24-hour toll-free Project Information Telephone Line at (866) 403-6358, or plan to attend one of the open house events. UniSource Energy Services Vail to Valencia 115kV to 138kV Upgrade Project Newsletter No. 2

Vail to Valencia 115kV to 138kV Upgrade Project …000 volt (138kV) transmission line between the Vail Substation in Tucson and the Valencia Substation in Nogales, Arizona

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PROJECT SUMMARYUniSource Energy Services (UES) is planning to upgrade an existing 115,000 volt (115kV) transmission line to a 138,000 volt (138kV) transmission line between the Vail Substation in Tucson and the Valencia Substation in Nogales, Arizona. The existing line is the primary electrical line serving Nogales, Arizona and other communities along the Santa Cruz River south of Green Valley, Arizona. The upgrade is necessary to adequately and reliably serve the area now and in the future. It is also being built in response to an order by the Arizona Corporation Commission. This is the second newsletter distributed to the public regarding this project.

PROJECT UPDATEUES has continued to conduct activities in evaluating the existing power line route and identified alternatives, with the goal of achieving the best possible solution for improving the infrastructure. Since the last newsletter was circulated, several meetings have been held with interested groups and the public to solicit comments and identify issues for consideration. UES also has designated a study area and examined a number of alternatives based on criteria that efficiently use existing infrastructure and rights-of-way, and avoid incompatible features and land uses. UES seeks additional input from the public in response to the range of alternatives, and to suggest additional options, as appropriate.

The study and alternatives identified by UES are depicted on the enclosed map.

ALTERNATIVE ANALYSISThe strengths and weaknesses of each alternative will be analyzed. Strengths of a project alternative include the use of an existing right-of-way; adaptive use of existing utility infrastructure; and avoidance of sensitive land uses, and biological or cultural resources. Examples of weaknesses include a high cost of construction, maintenance, or operation of the facility; the potential for impacts to sensitive resources; and incompatible land uses. The evaluation process will lead to the selection of suitable alternative alignments, which will be presented to the Arizona Power Plant and Transmission Line Siting Committee for consideration and then to the Arizona Corporation Commission for approval of a Certificate of Environmental Compatibility.

PUBLIC INVOLVEMENT AND OPEN HOUSESUES will be hosting another series of public open houses to seek input on the project. The open houses are scheduled at the following locations, dates and times:

TUCSON HOLIDAY INN HOTEL & SUITES 4550 South Palo Verde Road, Tucson Tuesday, May 27 5:30 p.m. – 7:30 p.m.

GREEN VALLEY Joyner-Green Valley Branch Library601 N. La Cañada Drive, Green Valley May 28, 2008 5:00 p.m. – 7:00 p.m.

NOGALES Nogales High School Auditorium1905 N. Apache Blvd., Nogales May 29, 2008 5:30 p.m. – 7:30 p.m.

We welcome your questions, comments and concerns regarding this proposed project. Please call the 24-hour toll-free Project Information Telephone Line at (866) 403-6358, or plan to attend one of the open house events.

UniSource Energy ServicesVail to Valencia 115kV to 138kV Upgrade Project Newsletter No. 2

SUMARIO DEL PROYECTOUniSource Energy Services (UES por sus siglas en inglés) planea renovar las líneas de transmisión de 115,000 voltios (115kV) a 138,000 voltios (138kV). Estas líneas se encuentran actualmente entre la subestación de Vail en Tucson y la subestación de Valencia en Nogales, Arizona. Las líneas actuales son la principal fuente de corriente eléctrica que da servicio a Nogales, Arizona y otras comunidades que se encuentran a lo largo del Rio Santa Cruz al sur de Green Valley, Arizona. Estas mejoras son necesarias para servir dicha área de una de una manera adecuada y confiable ahora y en el futuro. De la misma manera está siendo construida en respuesta a una orden de la Comisión Corporativa de Arizona (Arizona Corporation Commission). Este es el segundo boletín que se distribuye al público en relación a dicho proyecto.

INFORMACIÓN RECIENTE ACERCA DEL PROYECTOCon el fin de obtener la mejor solución para mejorar la infraestructura, UES continúa llevando a cabo actividadespara evaluar la ruta de las líneas de electricidad que existe actualmente e identificar alternativas.

Desde que el último boletín fue enviado, se han llevado a cabo varias reuniones con grupos interesados en el proyecto y con el público en general para solicitar comentarios e identificar asuntos pertinentes a ser considerados. UES también ha designado un área de estudio y ha examinado varias alternativas basadas en el criterio que utiliza eficazmente la infraestructura existente y los derechos de paso (rights-of-way), y evitar aparatos y otras características incompatibles así como el uso del terreno. UES busca obtener información adicional del público en respuesta a la gama de alternativas identificadas y también para recibir opiniones y sugerencias adicionales, según sea apropiado.

El área de estudio y las alternativas identificadas por UES aparecen en el mapa adjunto.

ANÁLISIS DE LAS ALTERNATIVASLas áreas fuertes y débiles de cada alternativa serán analizadas. Los puntos fuertes de las alternativas del proyecto incluyen el uso de los derechos de paso existentes (rights-of-way), uso adaptativo de la infraestructura del equipo existente (ejem. transformadores, postes, líneas y cables de electricidad). Evitar el uso de terreno o áreas susceptibles así como de los recursos biológicos o culturales. Algunos ejemplos de los puntos débiles incluyen el alto costo de la construcción, mantenimiento u operación de las instalaciones, los posibles impactos a recursos susceptibles y el uso incompatible del terreno. El proceso de evaluación llevará a la selección de una alternativa apropiada de alineación, la cual será presentada para su consideración ante el Comité de Líneas de Transmisión y Planta Eléctrica de Arizona (Arizona Power Plant and Transmission Line Siting Committee) y la Comisión Corporativa de Arizona (Arizona Corporation Commission) para obtener el Certificado de Compatibilidad Ambiental.

PARTICIPACIÓN DEL PÚBLICO Y REUNIONES ABIERTAS (OPEN HOUSES)UES presentará una vez más una serie de reuniones abiertas al público para obtener sugerencias acerca de este proyecto. El lugar, fechas y horarios de las reuniones abiertas (open houses) son los siguientes:

TUCSON Holiday Inn Hotel & Suites 4550 South Palo Verde Road, Tucson 27 de mayo del 2008 de 5:30 p.m. a 7:30 p.m.

GREEN VALLEY Joyner-Green Valley Branch Library601 N. La Cañada Drive, Green Valley 28 de mayo del 2008 de 5:00 p.m. a 7:00 p.m.

NOGALES Nogales High School Auditorium1905 N. Apache Blvd., Nogales 29 de mayo del 2008 de 5:30 p.m. a 7:30 p.m.

Nos interesan sus preguntas, comentarios e inquietudes. Llame a la línea de información del proyecto abierta las 24 horas al (866) 403-6358, o asista a cualquiera de las reuniones abiertas (open houses).

UniSource Energy ServicesBoletín Informativo No 2

Proyecto de Mejoramiento de 115kV a 138kV de Vail a Valencia

PIMA COSANTA CRUZ CO

Sahuarita

GreenValley

Tubac

Tumacacori

Nogales

Rio Rico

Santa

Cruz

River

Santa Cruz River

South Tucson

Vail

ARIZONASONORA

Amado

SaguaroNational

Park

PascuaYaquiIndian

Reservation

PIMA

COCO

CHISE

CO

SANT

A CRU

Z CO

COCH

ISE C

O

FortHuachuca

CoronadoNationalForest

CoronadoNationalForest

CoronadoNationalForest

BuenosAires

NationalWildlifeRefuge

Davis MonthanAir Force Base

Las CienegasNational

ConservationArea

Connexiόn

Subestaciόn

Subestaciόn

Subestaciόn

Subestaciόn

Subestaciόn

Nogales Tap

VailSubstation

CanezSubstation

KantorSubstation

SonoitaSubstation

ValenciaSubstation

Vail to Valencia115kV to 138kVUpgrade Project

0 1 2 3 4Miles

Legend

Study Area

Project Study Area

Substations Forest Service

Department of Defense

Bureau of Land Management

Bureau of Reclamation

National Park Service

Private

State

Bureau of Indian Affairs

Existing Transmission Line

Primary AlternativesLínea de Transmisiόn (Existente)Alternativas PrincipalesSubestaciόnes

Oficína de Asuntos Nativo Americanos

Oficína de Administraciόn de Tierras

Oficína de Reclamacion

Departmento de Defensa

Servicío de Bosques

Servicío de Parques Nacionales

Tierra Privada

Tierra del Estado

LeyendaÁrea de Estudio

Proyecto de MejoramientoVail a Valencia 115kV a 138kV

Área de Estudio del Proyecto