b'Water EPE recognizes the inextricable link between power and water. As the user of over 2 billion gallons of water annually, we are acutely aware of our role in regional water management. The Company has improved our portfolio-wide water use efficiency in recent years by divesting all of our coal assets. Our new resource selections substitute a complement of more water efficient natural gas and solar generation that, if approved, will significantly reduce our consumptive water use. WATER CONSUMPTION RATE 12017 2018 2019Rate (Liters/Net MWh) 2,452 2,312 2,1751 Water rates include reclaimed water provided to Newman Power Station from the Fred Hervey Water Reclamation PlantWater consumption rate varies by generation technology. EPEs local generation consumes water primarily for cooling purposes and as a pollution control method to reduce NOx emissions. Montana Power Station (Montana) has the most water efficient cooling technology within our generation fleet. Rio Grande and Newman Power Stations (Rio Grande and Newman) have a combination of our older more water intensive, boiler units and newer gas turbines. Copper Generating Station (Copper) does not have a cooling tower and primarily uses water for pollution control purposes. 2019 WATER RATES: EPE-OWNED GENERATIONPower Station Water Consumption 1(gal/kWh)Montana 0.18Rio Grande0.64Newman 0.53Copper0.11Palo Verde 2 0.661 Water consumption data calculated based on gross generation2 Palo Verde rate calculated as 15.8 percent (EPEs ownership) of water consumed by Units 1, 2, and 315Environmental Stewardship'