"The path to meeting the energy demands of 2025 is challenging and filled with opportunities.  Working with the Arizona Corporation Commission, the steps we take now will improve energy security for customers, reduce climate effects and position Arizona as a renewable energy leader for decades to come"

-  Don Brandt, APS Chairman & Chief Executive Officer

APS continues to embrace renewable energy, and 2008 marked a milestone year. In 2008, APS customers received 609,926 megawatt hours (“MWh”) of energy produced from renewable sources, about double the amount from 2007 and nearly six times more electricity from renewable resources than in 2006. 

In February 2008, we announced plans for the Solana Generating Station, the world’s largest solar power plant.  When completed in 2012, this 280-megawatt concentrating solar facility will allow APS to provide more solar electricity per customer than any other major utility nationwide. We believe we are making sustained progress toward establishing Arizona as the Solar Capital of the World. We are also adding 100 MW of wind energy in 2009 with a long-term purchase agreement with the High Lonesome Wind Farm. When operating at full capacity the 100 megawatt wind farm will provide power for 25,000 APS customers.

APS also issued a request for proposal for small renewable energy projects in March 2009. We're targeting 45,000 MWh total and expect to contract in 2009 for 2 to 4 small scale projects in the range of 1 to 5 MWs. Project developers are encouraged, as part of their proposals, to include a partnership with municipal, governmental and educational institutions.

Renewable Energy Standard (RES)
In 2006, the ACC gave approval to the RES, which requires regulated utilities, including APS, to generate 15 percent of their energy from renewable sources – solar, wind, biomass, biogas and geothermal – by 2025. The RES sets the minimum baseline for our future renewable energy resources. Procurement efforts initiated in 2007 and completed in 2008 added 380 MW of new renewable energy capacity to the APS system. Along with 146 MW of current capacity, APS is on target to dramatically exceed the RES targets by 2012. In fact, by 2012 the company will exceed the RES by 90 percent. Key to this accomplishment is the addition of the Solana Generating Station. For further information on our 2008 results, please review the APS 2008 Renewable Energy Standard Compliance Report. 

APS is required under the RES to annually file an updated five year RES Implementation Plan. The 2009 filing can be viewed here. Under that plan, APS will spend $505.2 million dollars on renewable energy plan implementation over the 2009 to 2013 time period.

Long-Term Renewable Plans
Renewable energy resources are proposed to provide the largest single contribution of APS' future energy sources, meeting 44 percent of the total growth in energy needs in the APS Resource Plan Report (RPR). Under the RPR, APS will accelerate the development of renewable energy and will work with the Arizona Corporation Commission to seize opportunities for early adoption beyond the requirements of the Renewable Energy Standard (RES). As shown in the graph below, APS proposes to exceed the RES, doubling the RES requirements by 2015 and eventually resulting in the addition of over 1,650 MW of renewable resources by 2025, or enough energy for about 400,000 homes. This could include the construction of up to 1,000 MW of solar power plants, similar to Solana Generating Station, a 280 MW solar facility planned for 2012. APS also plans continued expansion of distributed energy resources as well as other renewable energy purchases. The company will continue to engage and evaluate the market for renewable power projects. 

Green Rates and Renewable Energy Incentive Program
APS offers its customers the opportunity to voluntarily participate in our Green Choice Program. As a Green Choice member, you choose how much of the energy you use is produced from renewable resources. A small premium is added to the normal monthly charges. This is a convenient, affordable way to help preserve the environment while providing for a secure energy source for our future.  The Green Choice Program offers customers two different green rates:

• The Green Choice Block option (GPS-1) is designed to offer the opportunity to purchase a fixed amount of monthly usage from renewable resources. Each kWh (kilowatt hour), available in 100 kWh blocks, is priced at a premium of $0.01 plus tax, in addition to the normal monthly charges. The customer chooses how many blocks he or she wishes to purchase.
• The Green Choice Percentage option (GPS-2) is designed to give the customer the option to choose what percentage of actual monthly usage is provided by renewable resources. Each kWh purchased is priced at a premium of $0.01 plus tax, in addition to the normal monthly charges. They can choose 10 percent (non-residential only), 35 percent, 50 percent or 100 percent of their monthly usage.

By the end of 2008, 1,556 customers were subscribed to the Green Choice rate. Sales for the year were approximately 24,812 MWh and revenue was slightly over $248,000.

In 2008, APS’ Solar Partners Incentive Program was renamed the Renewable Energy Incentive Program to better reflect the program’s coverage.  In 2008, participation in the REIP grew dramatically.  Both PV and solar water heating installations were up significantly from 2007, with increases of 53 percent and 62 percent respectively.  APS expects to see continued growth in REIP program participation in future years and the development of non-solar technologies. In 2008, customers installed 832 distributed energy systems, including 421 photovoltaic (369 grid-tied, 52 off-grid), one grid-tied wind and 407 solar hot water heaters. 

Total Solar Rate Program
Solar-3 also known as the Total Solar Rate was designed to offer customers for whom the purchase of a solar system is not feasible, the option of purchasing 50 percent or 100 percent of their usage from solar resources. The rate became available for customer subscription on April 28, 2008. Revenue received from the Solar-3 rates reimburses the RES for solar generation output from APS-owned facilities.   

Green-e Certification of Green Choice Program
Green-e is a national certification and verification program for renewable energy developed and offered by the Center for Resource Solutions (CRS), a national nonprofit organization. This certification indicates that the renewable energy meets environmental and consumer protection standards. Through certification, the APS Green Choice program utilizes the Green-e logo on the APS Web site and marketing materials. In 2008, approximately 12,000 MWh of eligible renewable energy was sold under the certification program. Green Choice Rate energy sales certification through the CRS program became effective September 26, 2008.