Just looking at our value proportion, we really talk about our five key pillars to make this happen. First is capitalizing on the intrinsic growth that’s inherent in the Arizona population, maintaining operational excellence throughout the company, take advantage of compelling capital investment opportunities across the spectrum, continue improvement in our regulatory environment and then further strengthening our financial profile -- financial and risk profiles.
Our ultimate goal is to deliver superior long-term returns to shareholders to price depreciation, dividend growth and further multiple expansion.
So I want start first on one of our biggest advantages we have and that is ability to capitalize on the Arizona’s intrinsic growth. In Arizona we have very positive long-term demographics. On this slide on the left you see the APS customer growth in the orange, the population growth in Arizona in the blue and then you see the U.S. population growth in the green.
Overtime, the state growth is outpaced to rest of the U.S. and it’s also historically rebounded after recessionary periods.Regarding the current economic recovery, economic growth in Arizona continues to improve albeit at a modest pace. Over the long-term the fundamentals that are been important to Arizona’s growth are still intact and APS’ customer growth rate will return to more typical levels. In the next four years that’s 2012 to 2015 we expect annual customer growth to average 2% with some acceleration from the 1% growth expected in 2012. Although, hampered by the current recession over the long-term between now and 2030 we will expect APS’ customer base to grow significantly. Compound annual growth rate of about 2.6% over the timeframe which is more than twice the industry average. We project strong rate base growth averaging about 6% per year over the next several years. The capital expenditure program underpins this rate base growth and we expect capital to been to average about $1.1 billion per year through 2015 and the left graph displays the traditional categories of capital expenditures, such as generation, transmission and distribution. I’ll discuses the major capital expenditure programs in a minute.
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