Question-and-Answer Session
Operator
(Operator’s instructions) And your first question comes from the line of Daniel Eggers from Credit Suisse. Your line is now open.
Donald E. Brandt
Congratulations on the (inaudible)
Daniel Eggers - Credit Suisse
Thank you. On the quarter or I guess on the outlook on renewables, can you kind of talk a little bit thought process to hit the 15% target, how you guys, your ownership role going forward, I guess, given the most recent RFP cancellation by what seemed like a pretty credit worthy winner?
Donald E. Brandt
I’ll let Don Robertson expand on that a little bit. But first, we don’t really see that the Lockheed cancellation, it’s a bump in the road. And in a matter of fact we’ve got a number of plans to back fill that. Just recently we filled with the commission as part of the renewable energy standard program we call Arizona Sun that would involve us investing $500 million in variety of different PV projects, going forward. And that would involve an APS ownership structure.
Donald G. Robinson
And, Dan, this is Don Robinson. To add to what Don just said, we have had other RFPs on the street as part of this process. And not surprisingly we have also heard from everybody and their brother after the Starwood cancellation announce who wants to talk to us about doing more projects. I think it is fair to say that as we go forward we will be looking at a number of different projects and a number of different ownership structures. Because we don’t intend to just to PPAs on renewable projects as we go forward.
Daniel Eggers - Credit Suisse
Can you just give a little more color on the Arizona Sun project as far as what is going to be the approval process out the Commission to what you guys – or how do you guys spend that money and how do you envision recovery will be through traditional base rate cases or some other mechanism?
Donald E. Brandt
And Dan, we filed an application with the Commission asking for the approval. It would be the normal process. They could either chose to have hearing on it. They could choose to make a decision based on just the filing of documents. I doubt that would be the case. And then we do believe that we would recover the costs through any number of different recovery mechanisms. We could have an adjuster but more likely we could also put it in base rates which I would think would be the more likely option.
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