B&W Named Supplier of the Year By Arizona Public Service Company

The Babcock & Wilcox Company (B&W) (NYSE:BWC) is pleased to announce that it has been named the Supplier of the Year for 2013 by Arizona Public Service Company (APS) in the Major Equipment category.

The award recognizes APS suppliers for dedication to customer service, a commitment to sustainability, community involvement and a focus on health, safety and environmental concerns. B&W was one of six companies recognized out of more than 4,000 APS suppliers.

“We greatly appreciate and would like to thank APS for honoring B&W as the Supplier of the Year in the category of Major Equipment,” said Babcock & Wilcox Power Generation Group, Inc. (B&W PGG) President and Chief Operating Officer J. Randall Data. “Our organizations’ relationship goes back many, many years, and we look forward to continuing to provide outstanding service to APS in the years to come.”

B&W has been a supplier to APS and its predecessors for more than a century, providing products and services for the company’s conventional and nuclear power plants.

Recently, B&W’s Assured Stock program helped APS reduce expenses by stocking and warehousing pulverizer parts for its Four Corners Generating Station. Having the material readily available and shipped to the site as needed was a major benefit to APS’ plant operations.

B&W also provided APS a gas-fired auxiliary boiler on a turnkey basis which will provide start-up steam for Four Corners Unit 4 & 5 boilers.

About B&W

Headquartered in Charlotte, N.C., The Babcock & Wilcox Company is a leader in clean energy technology and services, primarily for the nuclear, fossil and renewable power markets, as well as a premier advanced technology and mission critical defense contractor. B&W has locations worldwide and employs approximately 12,000 people, in addition to approximately 10,400 joint venture employees. Learn more at www.babcock.com.

About APS

APS, Arizona’s largest and longest-serving electricity utility, serves more than 1.1 million customers in 11 of the state’s 15 counties. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

Cautionary Statement Regarding Forward Looking Statements

B&W cautions that this release contains forward-looking statements relating to future service to APS, to the extent such statements may be viewed as an indicator of future revenues. These forward-looking statements involve a number of risks and uncertainties, including, among other things, our ability to win future project awards and delays or other difficulties executing contracts. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see B&W's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2012 and subsequent quarterly reports on Form 10-Q. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.