Pinnacle West Capital Corporation
PNW Stock Jan 6, 2009 at 15:27 ET 32.78  -0.86   
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Environmental Performance: Material & Chemical Mangement
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Energy Management

Our decentralized EHS management structure encourages operating areas to institute conservation practices and procurement methods that address their individual and sometimes diverse needs.

Our company has long been a leader in energy efficiency and energy conservation – from the Environmental Showcase home commissioned in the 90s, to “Beat the Peak” programs in 2001.

In 2003, our corporate headquarters in downtown Phoenix was converted to the Northwind Cooling system which uses an industrial grade, ice-based chiller that manufactures three million pounds of ice each night when utility loads and rates are lowest.

The result of the conversion to Northwind eliminated the on-site requirement need for cooling towers and their associated air-conditioning chillers. Results were a drastic reduction in water consumption and the elimination of CFC refrigerant R-11.

In 2004, APS initiated the internal Leadership in Energy and Environmental Design (LEED) program which promotes energy efficiency and use of environmental products and services in APS buildings. This program, when fully implemented in 2005, will ensure all future APS buildings will incorporate these concepts in their construction and maintenance.

Our facilities implement a variety of energy efficiency measures including:

  • Operating air conditioning systems with energy efficiency software that manages duty-cycling and set-backs
  • Replacing outdated air conditioning with high-efficiency equipment
  • Writing all new construction specifications with energy efficiency in mind
  • Specifying energy-efficient Energy Star computers whenever new computer equipment is needed

More than 97 percent of our facility space is equipped with energy-efficient fixtures. We estimate energy savings of more than 13 million kilowatt-hours (kWh) per year from the use of energy-efficient products.

Material Management

We adhere to a specific and focused vision for recycling, source reduction and conservation of natural resources, including:

  • Reduced consumption of virgin materials through product or process redesign
  • Water conservation
  • Energy conservation
  • Habitat conservation
  • Risk reduction
  • Procurement of goods with recycled content
  • Recycling solid waste
  • Recycling hazardous waste and toxic materials

Our employees strive to incorporate this thinking into every aspect of operations, from making environmentally sensitive purchasing decisions to promoting reuse and recycling efforts. Our systems are being integrated to help manage purchasing, chemical use and reuse of company equipment. Our in-house chemical review team is responsible for examining and approving chemical purchases.

Our purchasing and inventory system, called Materials Logistics Information System (MLIS), allows us to better manage purchasing and inventory activities and increase employee awareness of purchasing practices. We also use our electronic Material Safety Data Sheet (MSDS) system in conjunction with the MLIS program to facilitate tracking and reporting the types and quantities of chemicals purchased and stored. These two systems allow us to create baselines to more effectively plan and set goals.

Investment Recovery
APS also has a very successful Investment Recovery operation that manages surplus materials. The first objective of this organization is to redeploy useful material within the company. For materials that can not be redeployed, Investment Recovery may sell, recycle or donate materials. Disposal is the last option. In 2004, Investment Recovery recovered a total of $1.8 million and recycled over 9 million pounds of material.

Chemical Use Reduction
Every chemical used by the company is tracked, from purchase through disposal. Our company requires employees to follow specific practices when purchasing hazardous chemicals. And, although we track chemical use in compliance with regulations, we also seek programs that will result in cost control, pollution prevention and revenue generation.

Material Re-use
Our materials exchange computer program provides a “marketplace” for employees and managers to provide and/or find needed materials rather than purchasing them new. This program saves the company money while allowing employees to conserve resources.

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Corporate Headquarters:  400 North 5th Street, Phoenix, AZ 85004   (602) 250-1000   (800) 824-8101