Properly managing the materials and chemicals used in our daily operations is a high priority. Effective procurement management can result in environmental benefits, such as reduced wastes and toxicity, as well as financial benefits. We have developed procurement procedures and tools that help maximize these benefits. In addition, we have programs in place that allow us to reuse materials within the company. 

Facility Energy Management
Our company has long been a leader in energy efficiency and energy conservation, and many of our facility energy management efforts have been described in our past Corporate Responsibility Reports. As Arizona's largest energy provider, we believe that one of the most important things we can promote is energy efficiency. We feel we must model energy efficiency and lead by example for our customers. Part of that leadership is participation in our own Power Partners program which helps save energy on the hottest days of the year, when demand is greatest and the system is most burdened. This includes:

• Reducing air conditioning loads by increasing thermostat settings in all facilities.
• Reducing lighting wherever possible, including operating variable lighting at the lowest possible settings, using task lighting and turning off lights when they aren't in use.
• Turning off computers when they aren't in use.
• Turning off any other unused or unnecessary equipment.

New Internal Energy Use Metric and Goal
In 2008, APS developed a new five-year internal energy use metric that measures our annual electric use at all metered facilities across our organization and sets a goal of a 3 percent annual reduction in energy use each year over the period of 2009 to 2013. This metric will allow us to monitor the effects of our various energy-efficiency efforts at facilities across our company.

Our total metered electric use in 2008 was 34,982,988 kw.

Internal Energy Efficiency Programs
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• Replacing outdated air conditioning with high-efficiency equipment.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.
• Requiring 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.

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 conversion to Northwind eliminated the on-site requirement need for cooling towers and their associated air-conditioning chillers, resulting in a significant reduction in water consumption in the cooling towers, and the elimination of CFC refrigerant R-11 from the chillers.

APS LEEDs By Example
APS is a registered member of the U.S. Green Building Council and has committed to a voluntary goal of incorporating Leadership in Energy and Environmental Design (LEED) principles in our new building design and ongoing building maintenance. LEED principles encourage “design and construction practices that significantly reduce or eliminate the negative impact of buildings on the environment and occupants in five broad areas: sustainable site planning, safeguarding water and water efficiency, energy efficiency and renewable energy, conservation of materials and resources, and indoor environmental quality.”

The LEED rating system ensures buildings meet a minimum set of criteria in each of five categories, contributing to a sustainable environment, ensuring a healthy and safe workplace and reducing operational costs.

APS is taking an active role in LEED in order to ensure the sustainability of our own facilities, and to allow us to generate interest for the program as well as educate our customers who may be interested in participating in the LEED program. 

APS has two silver certified LEED buildings: the Wickenburg and Flagstaff Service Centers and the new Ocotillo Service Center is LEED certified.