Jointly-Owned Facilities

APS shares ownership of some of its generating and transmission facilities with other companies. We are responsible for our share of operating costs which are included in the corresponding operating expenses on our Consolidated Statements of Income. We are also responsible for providing our own financing. Our share of operating expenses and utility plant costs related to these facilities is accounted for using proportional consolidation. The following table shows APS’s interests in those jointly-owned facilities recorded on the Consolidated Balance Sheets at December 31, 2017 (dollars in thousands):



	Percent Owned			Plant in Service		Accumulated Depreciation		Construction Work in Progress
Generating facilities:
Palo Verde Units 1 and 3	29.1	%		$	1,872,104	$	1,092,049	$	24,257
Palo Verde Unit 2 (a)	16.8	%		619,263		364,516		14,672
Palo Verde Common	28.0	%	(b)	726,223		262,065		46,577
Palo Verde Sale Leaseback			(a)	351,050		241,405		—
Four Corners Generating Station	63.0	%		1,196,683		568,304		240,514
Cholla common facilities (c)	50.5	%		180,907		69,633		1,091
Transmission facilities:
ANPP 500kV System	34.0	%	(b)	130,767		46,400		684
Navajo Southern System	27.5	%	(b)	85,299		28,915		180
Palo Verde — Yuma 500kV System	18.1	%	(b)	14,765		6,614		486
Four Corners Switchyards	63.2	%	(b)	66,386		12,605		327
Phoenix — Mead System	17.1	%	(b)	39,383		17,600		41
Palo Verde — Rudd 500kV System	50.0	%		97,600		23,884		245
Morgan — Pinnacle Peak System	64.6	%	(b)	117,721		14,569		1
Round Valley System	50.0	%		515		141		—
Palo Verde — Morgan System	90.9	%	(b)	137,887		3,948		94,350
Hassayampa — North Gila System	80.0	%		142,541		6,953		—
Cholla 500kV Switchyard	85.7	%		5,243		1,312		190
Saguaro 500kV Switchyard	60.0	%		20,473		12,574		—
Kyrene — Knox System	50.0	%		578		297		—


(a)	See Note 18.


(b)	Weighted-average of interests.


(c)	PacifiCorp owns Cholla Unit 4 and APS operates the unit for PacifiCorp. The common facilities at Cholla are jointly-owned.

APS also has a 14% ownership in the Navajo Plant. In the second quarter of 2017, APS’s remaining net book value of its interest was reclassified from property, plant and equipment to a regulatory asset. See “Navajo Plant” in Note 3 for more details.

4CA is a subsidiary that was formed in 2016 as a result of the purchase of El Paso's 7% interest in Four Corners. At December 31, 2017, 4CA had plant in service of $141 million, accumulated depreciation of $83 million and construction work in progress of $25 million.