Demand side management (DSM)/ energy efficiency is a critical part of our energy future. Effective energy efficiency programs provides our customers with increased opportunities to save both energy and money and provides benefits to society through decreased emissions of pollutants and use of water for generation of electricity. Increased energy efficiency is particularly important due to the forecasted growth in both the number of customers, and the amount of energy each customer consumes, which is projected to increase APS' customer energy consumption by about 17,000 GWh by 2025, an increase of more than 50 percent over today.

Results to Date
In 2008, APS DSM programs cost a little over $24 million and resulted in almost $73 million in net societal benefits, achieving about $3 in benefits for each $1 spent. Net lifetime energy savings  of 2,707,381 MWh and and 29.2 MW of Net Peak Capacity savings were achieved in 2008.

For the time period of January 2005 through December 2008, APS DSM programs have resulted in 5,366,696 MWH of Net Lifetime energy savings and 80.6 MW of net peak capacity savings.

APS DSM results are reported to the Arizona Corporate Commission twice a year. View the report for the second half of 2008, which includes full year 2008 results as well as 2005-2008 cumulative results.  Some other results for 2008 include:

• Provided nearly 7 million reduced-price CFL bulbs to consumers through  buy-downs with manufacturers through more than 300 commercial retail outlets throughout Arizona since mid-2005, cutting CO2 emissions by approximately 2.8 billion pounds.
• Working with over 30 home builders in more than 110 communities statewide to meet high-energy efficiency standards in the new construction market. More than 22,000 homes are committed to be built to Energy Star efficiency standards. Through the end of 2008, over 5,000 of these homes have been built, cutting CO2 emissions by more than 22 million pounds annually.
• Provided incentives in 2008 to nearly 4,500 residential customers who installed high efficiency air conditioners or heat pumps in their homes, over 1,200 customers who had their installation done to higher quality standards and nearly 500 customers who had their air conditioning duct system tested for leaks and repaired.

• Provided over $6.3 million in incentives to business customers in 2008 through our Solutions for Business program to assist in investments in energy efficient equipment saving business customers in excess of $125 million on their electric bills over the lifetime of the equipment installed in 2008.

Future Plans in Energy Efficiency  
Energy efficiency is a major component of future energy resources in the APS Resource Plan Report, discussed in the Integrated Resources Planning section of this report. Under the RPR, customers will have increased opportunities to use electricity more efficiently. These efficiency efforts could yield a reduction of almost 600 MW of demand from the grid - or, enough energy to power more than 110,000 homes. 

The chart to the right shows the incremental and cumulative energy savings in giga-watt hours resulting from the energy efficiency component proposed in the RPR.

The figure below shows the increased portion that energy efficiency is projected in our overall energy mix.

APS Named EPA Energy Star Partner of the Year, 3rd Year in a Row
For the third year is a row, APS' energy efficiency efforts have been recognized by the Environmental Protection Agency (EPA) as an EPA ENERGY STAR Partner of the Year. EPA has honored APS with a 2009 ENERGY STAR Partner of the Year award for our ENERGY STAR Homes program.  The ENERGY STAR Homes program also won in 2008. In 2007,  the company was named an ENERGY STAR Partner of the Year for Excellence in Energy Efficiency Program Delivery for our compact fluorescent light bulb program.

"Congratulations on winning the “ENERGY STARی Partner of the Year” award. Three straight years in a row — what an accomplishment! You must be very proud of your employees for their hard work and dedication in achieving this prestigious award.

In these difficult times, APS has managed to help your customers save money, as well as educate them on the importance of conserving energy and being environmentally responsible. The resulting customer savings is commendable, as is the vast number of builders participating in your APS ENERGY STAR Homes program."
ق
قققققققققققق قق -ق Thomas Kuhn, President, Edison Electric Institute