UniSource Energy Services (UES) is committed to the safe operation of the pipelines used to deliver natural gas to our customers. To meet our primary goal to provide safe, reliable
service requires the diligent effort of employees to work in a manner that prevents injury and enables them to go home to their families.

At UES, our safety goal is called Target Zero. The company achieved safety results nearly that perfect and above the industry average in a number of important operational areas. The
American Gas Association recognized the company’s efforts with the Leader Accident Prevention Award.

The Arizona Corporation Commission (ACC) annually conducts a safety audit on the construction, operation and maintenance of pipelines operated by state utilities such as UES. In 2011,
the company achieved a perfect score, meaning UES recorded zero noncompliance issues.

The audits were conducted over a five-week period at various facilities across the state. The audit is designed to ensure that UES and other natural gas providers abide by state and
federal regulations. The federal Office of Pipeline Safety has authorized the ACC’s Pipeline Safety Section to perform the inspections.

Our employees drive millions of miles annually to keep electric and gas service flowing across the state. Due to the hazards they face on the road, it is one of the most dangerous parts
of their jobs. Last year the UES gas operations in Flagstaff had zero traffic accidents. The national industry average for vehicle frequency rate is six recordable incidents per 100,000
miles driven.

Our employees also had great success in personal safety. While the national industry average incident rate for recordable injuries is about 5.1 per 100 employees, UES recorded just two
total for the year — a dog bite and a bee sting. The bee sting was reportable because the employee had an allergic reaction.

By raising public awareness of the potential safety hazards associated with these facilities, we hope to reduce the likelihood and potential impact of pipeline emergencies and
accidental releases of natural gas.

To our customers, target one is giving you the safe, reliable service you’ve come to expect.

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