As a non-profit enterprise, NTUA adheres to the Navajo Procurement/Purchasing Pref-erence which cultivates creating a positive economic impact to the Navajo Nation (NN). As an example, NTUA mandates that mate-rial and equipment be delivered to locations on the NN so that the applicable NN Sales Tax is paid on the material and equipment. NTUA submits payment to NN for sales tax every quarter based on sales tax customers on the NN – which includes the 5% Navajo Nation Sales Tax or the applicable tax rate of Certified Chapter/Township. In addition, NTUA pays to the NN taxes for Capital Con-struction, Capital Purchases, Fuel, and Tower lease fees.

C O M M U N I T Y C O N N E C T I O N S

Navajo Tribal Utility Authority - P.O. Box 170 Fort Defiance, Arizona 86504 - www.ntua.com - March 2018

Communications • Electric • Natural Gas • Renewable Energy • Wastewater • Water

Ya’a’teeh and Greetings,We here at the Navajo Tribal Utility Authority end each

year with report of our progress and present the information to Navajo Nation leaders. Starting this year, we are provid-ing same information to our valued customers. We haven’t done that before – turning the spotlight upon ourselves; however, we want to share our accomplishments and show you what we have done. Our work is to benefit you and your families. Our pledge is to improve and strengthen utility ser-vices that serve our communities. That is our goal as well as our obligation. We also see this as our responsibility as we integrate changes to become a stronger tribal enterprise and to enhance the rapport with our customers. As you read about our achievements, please keep in mind that we understand that there is a lot more to be done. We will dedicate ourselves to continue to drive NTUA forward towards continued progress. Thank you and Ah’e’ee,Walter W. Haase, P.E., General Manager, Navajo Tribal Utility Authority

CALL BEFORE YOU DIG

Damage Prevention Pro-gram Knowing the location of underground utilities before any type of digging is the simplest and most effective way to prevent serious inju-ries and reduce or eliminate damage to the utilities we all rely on every day.

NTUA C.A.R.E.S.Call at least 2 working days before you dig. 1-800-528-5011Await utility responseRespect the markingsExcavate with careSafety is Everyone’s responsibility.

NTUA: Journey of Progress Continues NTUA VISIONEnhancing our customers’ lives through excellent utility services

NTUA MISSIONTo provide safe, reliable, and affordable utility services that exceed our customers’ expec-tations

NTUA continues to Support the Navajo Nation with Taxes

In January 2018, NTUA announced plans to increase the solar farm, promising more jobs and tax revenue to the Nava-jo Nation. The first KY Solar project brought much needed con-struction jobs to the region. At the height of construction, 278 people worked on the project – 85 percent were Navajo. One of the early challenges in developing the project was finding available land. Fortunately, the Kayenta community supported the project. The KY Solar Project currently transmits electricity to three regional NTUA substations to distribute to northern Navajo communities. The 1st year Navajo Nation tax revenue from operation is expected to exceed $211,852 and the Construction tax revenue to the Navajo Nation was just over $3 Million, and the payroll paid directly to Navajo em-ployees during construction is $5.2 million. Overall, the project generated $15.6 Million in economic activity in the Kayenta region. The newest project, called Kayenta II, is anticipated to repeat the same economic and payroll numbers as Kayenta I. Kayenta II is set to be completed by May 2019.

1st Large-scale Solar Farm on Navajo to Expand

SCHOLARSHIPDEADLINE

Applications are now being accepted for the Academic Year Fall 2018 - Spring 2019 semesters. The NTUA encourages Navajos to pursue studies that lead to either a bachelor or mas-ter degree in fields relating to the multi-service utility in-dustry. Log on to www.ntua.com for more information and an application, due at 5 PM, April 27, 2018.

Best Wishes to 92 NTUA -Choice NTUA Wireless Sportsmanship Award recipients

Congratulations to you, your parents, grandparents, coaches, schools, and com-munities. For a complete listing of 2017-2018 Basket-ball Season awardees – visit www.ntua.com

PeriodTax Payment toNavajo Nation

Date paid toNavajo NationGeneral Fund

4Q 2017 $1,595,376.90 1/31/20183Q 2017 $1,552,051.77 10/23/2017 2Q 2017 $1,385,723.04 7/28/2017 1Q 2017 $1,339,236.78 4/11/2017

4Q 2016 $1,189,763.98 1/24/20173Q 2016 $1,439,323.61 10/24/2016 2Q 2016 $1,396,362.18 7/18/2016 1Q 2016 $1,527,011.64 5/4/2016

On Nov. 27, 2017, NTUA and Dominion Energy signed an agreement to begin the formal transfer process of the Southern Trails Pipeline. The agreement is now before the Federal Energy Regulatory Commission for final approval. Once it is approved, NTUA can continue to extend natural gas services Navajo communities. Two years ago, Dominion Energy notified NTUA of its plan to abandon the pipeline and shut it down; thereby ending natural gas services to an estimated 4,000 Navajo customers. Faced with this possibility, NTUA initiated negotiations with Dominion Energy (which purchased the pipeline from Questar).

Transfer of major natural gas pipeline begins

In September 2017, NTUA broke ground for a new water treatment plant for the Greasewood, Indian Wells, and Dilkon region. The water treatment plant will improve the quality of water for the region while upgrad-ing the system to accommodate future growth and development for the area. New lines will mean new pipeline improvements and, as a result, channel more water to area to meet anticipated community and economic growth.

NTUA Workforce

The NTUA workforce is made up of over 97 percent of employees who are of Navajo descendants. NTUA adheres to the Navajo Prefer-ence Law and as of December 2017, there were 714 full-time employees with 693 of Navajo descent.

Launching Internet Pilot Project at ChaptersNTUA has initiated a Pilot Project at five Navajo Nation Chapter Houses to provide

Internet access to both the chapter administration and to community residents. The project was implemented to better understand the many potential benefits of broad-band connectivity and to introduce chapters to a telecommunication plan which will help facilitate economic development, healthcare, education and public safety. NTUA paid for the expense at the Shiprock, Fort Defiance, Kinlichee, Chinle, and Mexican Water chapters. While NTUA covered the installation, Choice NTUA Wireless will pro-vide the Internet access. This project is an example of NTUA’s and NTUA Wireless’ commitment to expand the network to reach underserved and unserved areas of the Nation and working with communities to understand and utilize broadband, and to stimulate competition to improve services. In doing so, NTUA and NTUAW have given the Navajo Nation a “real choice”.

Reaching out to Utility Customers

Throughout 2017, NTUA Districts traveled to various chap-ters/communities to hear from customers and brought back the information to improve our rela-tionship with our customers. The Chapter Community Outreach allowed communities to receive updates on utility projects. The presentations encouraged ques-tions and provided answers. NTUA Districts will have a rotat-ing three year schedule and will work with individual chapters to set up meetings. In 2017, NTUA visited 55 of the 110 Navajo Na-tion chapters/communities.

New Water Treatment Facility for Greasewood

NTUA towers improve broad-band service to rural regions

Striving to build a better quality of life for the Navajo people, NTUA and our sub-sidiary Choice NTUA Wireless (NTUAW) are providing access to quality broadband (Internet Access and Ethernet) com-munication services for NN Schools, Government offices, Hospitals, E911 Emergency Services and Enterprises. With more than 600-miles of fiber op-tic line and 100-Towers, NTUA’s competitive presence forces other communication providers to take notice by improving their service offerings to keep up with NTUAW, such as moving from 2G to 3/4G services. We consider this success because the Navajo people deserve a “choice” in wireless providers and access to high quality ser-vices. In the meantime, NTUA and NTUAW will continue to plan, design, and seek creative opportunities to bring connec-tive to rural underserved and unserved areas of our region.

New switching station for Utah NavajoNTUA reached its one year anniversary of the acquisition of the electric infrastruc-

ture system in Utah Navajo. In 2017, 27 Utah Navajo homes were connected within the former Rocky Mountain Power region, 25 of those were connected before the transfer to NTUA. NTUA expedited the process by assisting with Rights of Way acquisition. Following the Dec. 6, 2016 transfer of the electric infrastructure in the Utah Navajo region, NTUA focused on system improvement, including to dramatically improve reli-ability and to reduce the frequency of outages. This meant system upgrades to better serve the Aneth, Montezuma Creek, Red Mesa, and the general area. The focus was the Aneth Switching Sub-Station that serves the region – as a condition of transfer mandated that a new switching station be constructed after NTUA assumes ownership.

Empowering Education, Helping Academic Aspirations

The Navajo Tribal Utility Authority (NTUA) has increased the number of scholarship awards and internships, reaching the $1.1 million mark in total awards in the past 10 years! In 2017, NTUA awarded $139,250 to 74 students. Each year, NTUA awards scholarships and internships to Navajo students pursuing higher education in programs of study related to the multi-service utility industry, such as business, accounting, engineering (electrical, civil, or environmental), computer science, or information tech-nology. NTUA also offers to college students internships to give these students hands-on experience in the utility business. The application season is from January to April of each year.

Year Amount Students2008 $7,500 152009 $74,500 702010 $118,500 812011 $89,250 802012 $87,750 552013 $80,000 462014 $67,750 432015 $110,450 822016 $143,500 832017 $139,250 74Total Scholarship Awards

provided in 2008 - 2017:$918,450.00

Total Internshipsprovided in 2008 - 2017:$240,000 for 50 students

Total Educational Investmentfrom 2008 - 2017:

$1,151,814.00

In early 2017, NTUA changed the way calls are answered. The contact center is a central point from which all customer calls are handled, serving as a measurement tool to improve and strengthen customer interaction. Contact center agents answer hundreds of phone calls daily, including answering utility account questions, assisting with phone payments, and routing calls to appropriate personnel.

NTUA Call Center Created to Improve Customer Interaction

Regional Utilities Rates Comparison as of February 28, 2018 - Does not include taxes or PCA/PGA Adjustments

Residential Electric Summer Winter

Gas Summer Winter

Water Waste Water

390kWh

580kWh

20Therms

65Therms

4,400 Gallons5/8 Meter

4,400 Gallons5/8 Meter

$34.6133.2442.7846.9242.9042.9046.0753.5557.0540.51

$ 44.05

$48.6746.3961.3169.2158.0058.0065.4872.8175.1060.77

$ 61.57

$16.6316.8723.6523.6516.8716.8717.80

$ 18.90

$37.7232.3250.1850.1832.3232.3257.85

$ 41.84

$ 31.7517.4218.0029.8934.1027.7627.00

$ 26.56

$ 17.0628.5817.1720.3820.5534.1722.50

$ 22.92

Average NTUA Usage

NTUAPageFarmingtonGallupFlagstaffWinslow (Tuba City)Blanding, UTJamez MountainCon. Divide (Crwpt)RMP-Utah (Aneth)

Average Rates