Helping our customers improve the efficiency in which they use electricity is a key component of Pinnacle West's sustainability programs. Our overall Demand-Side Management (DSM) program is comprised of numerous individual programs and educational tools to help achieve that goal.

APS has had demand-side management programs in place for a number of years. In the five-year period of 2000 to 2004, the company estimates that its programs saved approximately 167,000 megawatt-hours (MWh) of energy use and 138 megawatts (MW) of peak energy demand. In 2006, an estimated 85,458  MWh of energy use was saved through APS' DSM program.

DSM efforts received a substantial boost in 2006, with the approval by the Arizona Corporation Commission (ACC) of an expanded DSM effort at APS. As part of its rate case, APS has committed to spend a minimum of 16 million dollars per year in DSM programs, more than double previous expenditures. In 2006, nine additional DSM programs were approved by the ACC (to make a total of 10 current approved DSM programs). As these programs were implemented and started-up in 2006, APS spent a total of 8.4 million dollars for DSM in 2006. That is projected to increase to at least our 16 million dollars baseline in 2007.

Here is a summary of APS' DSM programs:

Energy-Efficient Lighting Program
The U.S. Environmental Protection Agency (EPA) and the Department of Energy (DOE) named APS an ENERGY STAR Partner of the Year for outstanding contributions in reducing greenhouse gas emissions by promoting energy-efficient compact fluorescent light bulbs (CFLs) to customers. Specifically, APS was recognized for its "Program Delivery of Residential Lighting" initiative.

“Partners like APS have had an outstanding year in helping consumers help themselves,” said Bill Wehurm, acting assistant administrator for the EPA Office of Air and Radiation. “In addition to leading the way in promoting products that earn the ENERGY STAR, APS also works to educate consumers about the importance of energy efficiency. These efforts are a win for consumers and for the environment.”

Tom Hines, program manager, Customer Information and Programs, said, “The award supports our vision for a more sustainable future. By helping our customers use smarter technology like CFLs, we are able to save energy, improve the environment and shape a better future for us all. Our program is making a difference one bulb at a time."

According to ENERGY STAR, when you use less energy at home, you lessen greenhouse gas emissions in the atmosphere. The EPA estimates every CFL can prevent more than 450 pounds of emissions from a power plant over the life of the bulb compared to an incandescent bulb. “The EPA calculation translates into reduced greenhouse gas emissions of 450,000 tons over the life of the CFLs sold in the APS program,” said Hines.     

Since APS introduced the program in the fall of 2005, more than two million CFLs have been sold at reduced pricing in the APS service territory. Those sales also mean estimated energy savings of more than 500 million kWh ─ enough energy to power more than 40,000 homes for one year and save consumers about $50 million in energy costs over the life of the bulbs. That's because CFLs use up to 75 percent less energy than incandescent light bulbs, generate less heat and last up to 10 times longer than traditional bulbs.

APS more than doubled its original 2006 sales target of 600,000 bulbs to more than 1.2 million bulbs. The program was approved by the Arizona Corporation Commission and is paid for by APS customers. APS is expanding the program in 2007: 

High-Efficiency AC Rebate Program
The APS High-Efficiency Air Conditioner (AC) Rebate Program offers rebates to APS residential customers who replace their existing heat pump or AC unit with a new high-efficiency system. 

APS Energy Star® Homes
In cooperation with APS, a number of Arizona builders are incorporating energy-saving building techniques and features in their new homes. APS Energy Star Homes meet or exceed new, stringent 2006 Environmental Protection Agency Energy Star efficiency standards. A a certified independent contractor tests the homes to ensure they perform efficiently.

APS Energy Wise Low Income Weatherization Program
Participants must be an APS customer and have a household income of less than 150 percent of the federal poverty  guideline.  Community Action Agencies identify needy customers, assess their homes for potential energy efficiency improvements, and install the measures that save energy. Measures typically installed include insulation, conduct repairs, window and door replacement, and evaporative cooler and air conditioner repair and replacement. The ACC recently approved an increase to $1.1 million per year for the Low Income Weatherization program, a doubling of previous funding.

Reducing Peak Demand
APS also promotes peak demand management for both residential and commercial customers.  APS has one of the most successful residential time-of-use (TOU) rate programs in the country, with participation from more than 40 percent of all residential customers.  In addition, APS conducts a voluntary summer peak-reduction program with large commercial customers who commit to saving energy on the hottest days of the summer.

APS' Business Solutions Program
The APS Business Solutions Program provides funding to APS business customers who upgrade their facilities with energy efficient equipment, or those who are building new energy efficient facilities. 

The program offers:

• Prescriptive incentives for customers who make energy-efficiency equipment upgrades and improvements in lighting, cooling, refrigeration and motors applications for retrofit and new construction projects.
• Custom incentives for large business customers installing energy-efficient measures that fall outside of the prescriptive list in major renovation and new construction projects.
• Assistance with energy-study incentives for large business customers. This includes energy-feasibility studies, design assistance, commissioning studies and retro-commissioning studies. Customers are eligible to apply for study incentives that cover up to 50 percent of the qualifying study cost or $10,000 maximum per customer.

The APS Business Solutions Program is available to schools, institutional customers, large existing facilities, new  construction projects and small, non-residential customers.