Pinnacle West Capital Corporation
PNW Stock Nov 20, 2009 at 16:00 ET 34.03  -0.10   
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Demand Side Management

Helping our customers use electricity more efficiency is a critical component of our company's sustainability effort. Not only are our numbers of customers growing, but the energy use per customer continues to grow.

By taking steps to conserve power, customers can reduce their costs and also provide significant benefits to the environment. Adopting energy efficient practices has many benefits for consumers as well as the environment. Conserving energy means less power needs to be generated, which results in fewer emissions impacting the environment and fewer resources being consumed.

DSM and energy efficiency programs are also an important resource for APS.  Reducing demand will result in the amount of electricity that may have to be purchased (particularly expensive peak energy) and may even result in fewer new power plants needing to be built in the future. The APS DSM Program is managed by the Customer Information & Programs Department.  This Department works closely with the Resource Analysis Department to integrate DSM into the Resource Alternatives Report.  This includes evaluating the effectiveness of future DSM programs on APS costs and energy generation, and incorporating anticipated DSM future demand reduction into the APS Resource Alternatives Report.  The APS Resource Alternatives Report shows the projected impact of our currently projected DSM programs on future resource planning.

 

APS was named  EPA/DOE 2007 Energy Star Partner of the year from the U.S. Environmental Protection Agency for the APS Energy Star Residential Lighting Program.   “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.” The program also received the 2007 American Council for an Energy-Efficient Economy’s “Exemplary Program” award and has been recognized by E-Source as a “best practice” program.  As part of this program, in 2007, more than 2.6 million energy efficient light bulbs were sold as a result of the APS Compact Fluorescent Lighting (CFL) Program.

APS'  Demand Side Management (DSM) energy conservation program  was approved by the Arizona Corporation Commission (ACC), and APS works closely with the ACC in developing future goals and funding levels for our DSM efforts. The DSM programs provide information, tools and incentives for our customers to reduce energy use. APS spends more than $18 million dollars per year in its DSM programs, and plans to increase spending on these programs to $25 million per year.  The company will request an approval from  the ACC to increased spending levels and for specific new programs.  APS files a semi-annual progress report with the ACC on our DSM efforts.  The 2007 report can be viewed here.

The approved programs are designed to influence energy decisions by residential and non-residential customers and other market players through a combination of rebates and incentives, technical assistance and training, and consumer education.

The current programs include:

      Residential Programs

            Residential New Construction

            Residential Existing Homes AC Efficiency 

            Residential Consumer Products 

            Residential “Energy Wise” Low Income Weatherization Program

 

      Non-Residential Programs

            Schools

            Non-Residential Existing Facilities

      Non-Residential New Construction and Major Renovation

            Small Non-Residential Program

            Building Operator Training 

            Energy Information Services

As seen in the following table, the anticipated environmental benefits, including CO2 reductions, from the 2005-2007 DSM programs are significant. 

 

   DSM Estimated Environmental Benefits

2005 - 2007 Programs

 

 

 

 

 

 

 

 Water

 SOx

 NOx

 CO2

 PM10

 

 Mil Gal

  Lbs

 Lbs

 Mil Lbs

 Lbs

Residential

Consumer Products

769.3

2,146

85,854

457.7

11,830

Existing Home HVAC

31.1

574

22,958

122.4

3,163

New Construction

100.7

1,858

74,340

396.3

10,243

Low Income

11.8

217

8,687

46.3

1,197

Totals for Residential

912.9

4,795

191,839

1,022.7

26,433

Non-Residential

Existing Facilities Large

179.7

3,161

126,432

674.1

17,421

Small Non-Residential

132.4

2,320

92,785

494.7

12,785

New Construction

179.7

3,161

126,432

674.1

17,421

Building Operator Training

17.2

317

12,677

67.6

1,747

Energy Information System

9.5

174

6,977

37.2

961

Schools

36.4

697

27,876

148.6

3,841

Totals for Non-Residential

554.9

9,830

393,179

2,096.3

54,176

Total

1,467.8

14,625

585,018

3,119.0

80,609

 

 

 

 

 

 

The environmental reductions are based on the kWh savings of all program measures over their expected lifetimes.

 

Read More about our DSM programs.

 

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