Clean Energy Commitment | Our Progress | Coal Reduction | Clean Resources | Energy Innovation | Emissions Reporting | Collaboration | Governance | Fleet and Facilities

Updated: May 2024

Our Commitment: 100% Clean Energy by 2050

Our customers and stakeholders want clean energy, and we are listening. Together, we are advancing Arizona’s clean energy future. We plan to achieve a fully clean, carbon–free energy mix by 2050 to ensure Arizona remains a healthy and beautiful place to live and work.

We've set a bold, three-part goal to provide a clean energy future for our customers:

  • A 2050 goal to provide 100% clean, carbon-free electricity;
  • A 2030 target to achieve a resource mix that is 65% clean energy, with 45% of our generation portfolio coming from renewable energy; and
  • A commitment to exit from coal-fired generation by 2031

Carbon Goal

Our clean energy commitment is based on sound science and supports continued growth and economic development, while maintaining reliability and affordability for APS's customers. We can accomplish our vision by collaborating with customers, communities, employees, policymakers, shareholders, regulators and other stakeholders. We look forward to working alongside those who believe in this vision to move forward together to keep Arizona clean, beautiful and thriving.

“We see incredible things ahead for Arizona and are excited to power our state’s future with electricity that will be 100% clean.” — Jeff Guldner, Chairman and CEO, Arizona Public Service

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Our Progress

In collaboration with industry and community partners, APS is progressing toward a 100% clean, carbon-free energy future.

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Tracking our 2030 target. During 2023, the share of APS’s energy supply from clean resources was 51%, which includes energy from nuclear, renewables and demand side management (DSM). We are on track to reach our goal of 65% clean resource mix by 2030. In addition, by 2030, we aim for 45% of our generation portfolio to be from renewable energy.



Learn more about our plans in our Integrated Resource Plan and an article that explains the  meaning of carbon-free energy.

Opportunities for coal reduction. In June 2021, APS and the owners of Four Corners entered into an agreement that would allow Four Corners to operate seasonally at the election of the owners as early as fall 2023, subject to the necessary governmental approvals and conditions associated with changes in plant ownership. Under seasonal operation, one generating unit would be shut down during seasons where electricity demand is reduced, such as the winter and spring. The other unit would remain online year-round, subject to market conditions as well as planned maintenance outages and unplanned outages. As of the date of this report, APS has elected not to begin seasonal operation due to market conditions.

Planning a responsible transition from coal. The transition away from coal-fired power plants and toward a clean energy future will pose unique economic challenges for the communities around these plants. APS worked with stakeholders and leaders of the Navajo Nation to consider the impacts of ceasing operation of APS coal-fired power plants on the communities surrounding those facilities to propose a comprehensive coal communities transition plan. The proposed framework provided for substantial financial and economic development support to build economic opportunities and addressed a transition strategy for plant employees. We are committed to continuing our established partnership with the Navajo Nation by addressing other areas as well, including expanding electrification and developing tribal renewable projects. Our proposed plan supports the Navajo Nation, where the Four Corners Power Plant is located, the communities surrounding the Cholla Power Plant and the Hopi Tribe, which is impacted by closure of the Navajo Generating Station. On November 2, 2021, the Arizona Corporation Commission (ACC) approved a modified plan that provides:

  • Navajo Nation - $10 million and up to $1.25 million for the electrification of homes and businesses
  • Navajo County Communities - $500,000
  • Hopi Tribe - $1 million and up to$1.25 million for electrification of homes and businesses

In 2023, in support of energy and economic development within the Navajo Nation, APS included a request in its All-Source Request for Proposal for 250 MW of renewable generation to be located within the geographic boundaries of the Navajo Nation. APS plans to seek an additional 350 MW of renewable generation within or near the Navajo Nation within one year of exiting the Four Corners Power Plant.

Adding clean resources to meet customers’ growing energy needs. To date, APS has a diverse portfolio of existing and planned renewable resources totaling over 5,000 MW, including solar, wind, geothermal, biomass and biogas. Of this portfolio, over 3,000 MW are currently in operation and approximately 1,900 MW are under contract for development or are under construction. All procurement occurs through competitive solicitations or as a QF through PURPA, ensuring competitive pricing for new resources as we plan to serve our growing economy.

Linking our commitment to executive compensation. In February of 2022, the Human Resources Committee revised the metrics for our performance share grants and added a clean megawatt installed metric to reflect our commitment to our clean energy commitment.

Steady production of carbon-free nuclear power from Palo Verde Generating Station. The station continued to do its part, producing clean nuclear power with a 91.42% capacity factor (an important measure of efficiency) for 2023.

Providing tools and programs to empower customers. APS’s demand response programs use a virtual network of smart home products, like thermostats, water heaters and energy storage to reduce energy use on Arizona’s hottest summer days and shift energy demand to when more solar power is available. This shift is just one of the strategies and innovative solutions our customers can use to help us reduce carbon emissions to meet our clean energy goals.

Going beyond the generation mix to help reduce emissions in other sectors. To help achieve a cleaner environment and enable more drivers to adopt electric vehicles (EVs), APS has provided business customers with free EV-charging equipment, installation and maintenance through the Take Charge AZ Program. As of year-end 2023, we have installed 704 Level 2 (L2) charging ports at customer locations. While in effect for the majority of 2023, the program was closed to new customers by the Arizona Corporation Commission in December 2023. In addition, in partnership with Electrify Commercial®, we installed five Direct Current Fast Charger (DCFC) charging stations throughout Arizona. The Arizona locations are in Sedona, Show Low, Globe, Payson and Prescott.

Learn more about customer tools and programs and the role of customers in designing Arizona’s clean energy future.

Coal Reduction

One of the methods to achieve our Clean Energy Commitment will include ceasing the use of coal-generated electricity.

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We have committed to end the use of coal at our remaining Cholla units by 2025 and have made an overall commitment to stop relying on coal by 2031, which means we will exit the Four Corners Power Plant seven years earlier than our original plan. We have retired more than 1000 MW of coal-fired electric generating capacity. These closures, in addition to other measures taken by APS, have resulted in a reduction of carbon emissions of 36% since 2005, which is equivalent to removing more than 1.4 million passenger vehicles from the roads.

With the transition away from coal-fired power plants, we work closely with impacted employees and local communities to ease the transition and support long–term economic planning for a future beyond coal.

Learn more about our  coal communities transition plan.

Clean Resources

Achieving our Clean Energy Commitment will include various methods such as relying on Palo Verde; increasing clean energy resources, including renewables; promoting energy efficiency; and optimizing regional resources.

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Nuclear. Through 2023, Palo Verde Generating Station has been the nation’s largest power producer of any kind for 32 years – all of it clean and carbon-free. As the heart of the APS generation fleet, it provides the foundation for the reliable service our customers count on.

The plant is a critical asset to the Southwest, generating more than 32 million megawatt-hours annually – enough power for roughly 3.4 million households, or approximately 8.5 million people. In addition, Palo Verde provided much needed support during the recent Texas power crisis by delaying the start of equipment reliability repairs, which enabled full-power output when it was most needed.

Nuclear energy works with renewable generation to create a more reliable, diverse clean-energy portfolio. Palo Verde produces clean energy at all hours supporting the basic electrical needs of our customers when solar and wind are not available. Without nuclear energy, carbon emissions would increase due to a greater reliance on carbon-emitting fossil fuels to fill the inevitable energy void during periods of low renewable generations, such as after sunset. Nuclear energy can facilitate increased adoption of EVs and improve the environment by supplying zero-emission energy to charge EVs and large-scale batteries.

While Palo Verde has seven owners in four states, nearly half of its output is dedicated to serving Arizona consumers. Electricity generated by the plant annually displaces more than 13.2 million metric tons of greenhouse gas (GHG) emissions that otherwise would have been produced. It is estimated that Arizona’s energy-related emissions would be about 38% higher without the displaced carbon emissions from Palo Verde.

Additionally, as the nation’s only nuclear plant that is not located on a body of water, Palo Verde recycles more than 20 billion gallons of wastewater annually from surrounding municipalities to cool the plant. This represents more than 35% of all effluent used in Arizona.

Learn more about Palo Verde Generating Station.

Renewables. With nearly 300 sunny days each year in Arizona, APS and its customers are transforming sunshine into a renewable energy source that powers an increasing number of homes and businesses across the state. APS supports customers interested in protecting the environment and reducing their energy bills by installing renewable energy technologies like rooftop solar systems at their homes, schools and businesses. More than 177,000 solar systems on customer rooftops and parking structures are already connected to the APS smart grid, providing more than 1,660 MW of robust solar capacity. In 2023, the amount of residential solar generating capacity installed in APS service territory was 8% higher than 2022. Nationally, only Hawaii and California have more residential solar capacity per capita than Arizona. As the largest electricity provider in the state, APS and its customers have been a big part of that achievement:

  • APS ranks fourth nationally for the percentage of residential customers with rooftop solar systems
  • APS customers installed a record amount of residential solar capacity in 2023
  • 14% of all residential customers in APS territory have a solar system


Renewable Energy Portfolio. In 2006, the Arizona Corporate Commission (ACC) adopted the Renewable Energy Standard (RES). Under the RES, electric utilities that are regulated by the ACC must supply an increasing percentage of their retail electric energy sales from eligible renewable resources, including solar, wind, biomass, biogas and geothermal technologies. The renewable energy requirement is 13% of retail electric sales in 2023 and increases annually until it reaches 15% in 2025.

To date, APS has a diverse portfolio of existing and planned renewable resources totaling 5,010 MW, including solar, wind, geothermal, biomass and biogas. Of this portfolio, 3,072 MW are currently in operation and 1,938 MW are under contract for development or are under construction. Renewable resources in operation include 415 MW of facilities owned by APS, 1,034 MW of long-term purchased power agreements, and an estimated 1,623 MW of customer-sited, third-party owned distributed energy resources.

APS’s strategy to achieve its RES requirements includes executing purchased power contracts for new facilities, ongoing development of distributed energy resources and procurement of new facilities to be owned by APS. In June 2023, APS issued a Request for Proposal (RFP) to address resource needs for 2026 and beyond. The 2023 RFP solicited competitive proposals for approximately 1,000 MW of resources, including at least 700 MW of renewable resources, with proposed projects coming into service beginning in 2026 through 2028. Once APS secures those important resources and closes out the 2023 RFP, APS intends to issue APS’s next RFP to address future resource needs.

Learn more about our Integrated Resource Plan and All-source Request for Proposal.

 

Demand Side Management. Technologies such as smart thermostats, LED lighting, water heaters and efficient EV Chargers have given customers more power to control their energy usage and potentially reduce their costs. As more emerging technologies such as energy storage devices become commercially viable, they will continue to change how customers interact with us. By being proactive and working with our customers to identify and respond to their changing needs, we remain well positioned to deliver value. Furthermore, by providing customers the opportunity to manage their energy and peak demand, we can expand the use and understanding of load-management technologies, encourage customers to reduce CO2 emissions, use energy during off-peak hours and better align with solar production and system peak conditions. Taking these innovations to scale will help us achieve our bold clean energy commitment.

Learn more about our evolving residential energy management to be a clean peak resource.

APS’s demand-response programs use a virtual network of smart home products, like thermostats, water heater, and energy storage to reduce energy use on Arizona’s hottest summer days and shift energy demand to when more solar power is available. Chief among the programs connected to the APS virtual power plant is the company’s signature residential thermostat program, APS Cool Rewards. With more than 83,538 residential smart thermostats enrolled, customers benefit from incentives, discounts, and energy-savings options for voluntarily conserving energy. APS Cool Rewards boasts a capability of shedding more than 145 MW of dispatchable peak capacity to help meet demand for energy on hot summer days. This energy avoidance saves customers money, helps the environment, and builds a more robust electrical grid. APS has a 2023 goal of reaching 100,000 thermostats to provide over 150 MW of summer capacity.

Learn more about the role of our customers, virtual power plant and customer programs.



Energy Innovation

Advances in energy technology will be necessary to achieve our Clean Energy Commitment. Our strategy includes methods such as relying on Palo Verde, one of the nation’s largest producers of carbon-free energy; increasing clean energy resources, including renewables; developing energy storage; ceasing the use of coal-generated electricity; managing demand with a modern interactive grid; promoting customer technology and energy efficiency; and optimizing regional resources.

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Hydrogen. One of the more promising emerging opportunities is the use of hydrogen. A substantial majority of the world’s industrially produced hydrogen creates carbon dioxide as a byproduct. However, when hydrogen is produced by electrolysis using clean electricity (such as nuclear, solar or wind energy), the resulting hydrogen is carbon-free. Producing hydrogen when there is an excess of carbon-free electricity creates an energy vector that can be used as another clean energy storage technology for meeting peak demand. This clean hydrogen can also be used as an energy carrier for evolving hydrogen transportation technologies, and as a feedstock to produce synthetic hydrocarbons that introduce no new carbon into the environment.

In 2022, Arizona's three public universities, along with four energy providers including APS, announced the formation of an interdisciplinary coalition called the Arizona Center for a Carbon Neutral Economy (AzCaNE), with the goal of achieving a carbon neutral economy in Arizona. AzCaNE's first action was to pursue an Arizona-led approach to securing regional clean hydrogen hub funding. Leading professionals from the seven founding participants, along with representatives of Arizona, the Navajo Nation and companies working to develop a hydrogen ecosystem within Arizona make up the governance committee for AzCaNE's efforts. AzCaNE submitted an initial hydrogen hub concept paper to DOE, which in turn encouraged the submission of a full application for funding. In response, AzCaNE formed the Southwest clean Hydrogen Innovation Network (SHINe) and submitted an application for funding on its behalf. SHINe was not selected as one of the seven regional hubs to be awarded funding by DOE. APS is currently maintaining a participatory role in AzCaNE as the organization continues to explore ways to educate stakeholders and promote low-carbon technologies.

Learn more about the SHINe project.

Energy Storage. APS deploys several advanced technologies on its system including energy storage. Storage can provide capacity, improve power quality, be utilized for system regulation, integrate renewable generation, and, in certain circumstances, be used to defer certain traditional infrastructure investments.

Energy storage can also aid in integrating higher levels of renewables by storing excess energy when system demand is low and renewable production is high and then releasing the stored energy during peak demand hours later in the day and after sunset. APS is utilizing grid-scale energy-storage projects to benefit customers, to increase renewable utilization, and to further our understanding of how storage works with other advanced technologies and the grid. We are preparing for additional energy storage.

Utility-scale energy storage is an essential piece of our future resource mix, and over next several years, APS will be investing heavily in affordable renewable and clean technologies, including utility-scale batteries. As of the end of 2023, APS has plans to install more than 2,182 MW of energy storage. Storage technologies will help APS use regional excess solar generation that is frequently available at low, zero and even negative prices. We remain dedicated to a responsible adoption and integration of this nascent technology and have committed to a maximum of three gigawatts of battery energy storage through 2027. We will continually evaluate this cap as more industry experience with the technology is gained.

Learn more about our energy storage projects.

Emissions Reporting

We believe it’s important to disclose our carbon management strategies and GHG emissions to customers, investors, and other stakeholders. We have a comprehensive air emissions monitoring and reporting program in which results are shared in compliance with government regulations and ESG reporting standards. We use this information to track our overall progress toward our Clean Energy Commitment.

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Overall Air Emissions. In 2023, APS’s carbon dioxide emissions were about 10.5 million metric tons. This represents a 36% decrease in annual carbon dioxide emissions since 2005.

We also track emissions of other traditionally tracked air pollutants. Since 2005, as a direct result of our commitments to reduce air pollution and institute operational efficiency enhancements, we have achieved reductions in annual emissions of Nitrogen Oxides (NOx) of 87% and annual emissions of Sulfur Dioxide (SO2) of 88% from our overall fleet.

Learn more about air emissions data.

Carbon Intensity. For internal tracking to our Clean Energy Commitment, we monitor carbon intensity, which we define as the measure of total carbon emissions, measured in pounds per megawatt hour of energy delivered by APS to our customers. It includes total emissions from APS-owned generation and power purchase agreements, as well as megawatt hours from distributed generation and megawatt hours saved from demand side management.

Learn more about carbon intensity data.

Greenhouse Gas Reporting. To track our progress toward our Clean Energy Commitment, we report our Scope 1 and Scope 2 carbon emissions. Scope 1 emissions include all direct emissions arising from the sources we own and control (e.g., emissions associated with fuel combustion in boilers, furnaces and vehicles). These direct emissions result from activities that physically release greenhouse gases into the atmosphere. In 2022, our Scope 1 emissions increased slightly from the prior year and were about 12.7 million metric tons.

Scope 2 emissions include all indirect emissions associated with electricity, steam, heating, or cooling purchased for use in our owned and controlled operations. These indirect emissions occur outside of our reporting boundary and are emitted by power generation sources owned or controlled by another party. Scope 2 also includes indirect emissions associated with Transmission and Distribution (T&D) line losses from electricity that is not generated by the company transmitting or distributing the power. In 2020, our Scope 2 emissions reporting boundary changed to include of T&D line losses from purchased power. In 2022, our market-based Scope 2 emissions were about 91,700 metric tons.

Learn more about greenhouse gas emissions data.

CDP Reporting. APS voluntarily reports GHG and water information to CDP, a global nonprofit organization that collects and analyzes environmental data and benchmarks companies for investors to use in financial decisions. Our scope 1, 2 and some of scope 3 GHG emissions as well as water withdrawal and discharge data are reported to CDP and are  third-party verified.

Agency reporting. We submit a comprehensive annual report of our GHG emissions to the Environmental Protection Agency (EPA) as required by federal law. Additionally, we are required to report releases of chemicals listed in the federal Toxic Release Inventory (TRI) program to the EPA. Our reportable releases under the TRI program primarily include air emissions from power plants and coal ash disposal. Reports for Four Corners Power Plant and the Cholla Power Plant can be found on the EPA TRI web site.

Collaboration

Achieving our clean energy commitment will require continued advances in energy technology. To help drive clean energy investment and innovation, APS will encourage policies that enable market–based solutions and serve as a driving force behind energy research and development.

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APS will continue to pursue the advancement of new and emerging technologies. Given the research, incubator labs, startups and investment involved in clean energy, we are confident emerging technologies will become proven and commercially available at competitive prices. Some recent partnerships include:

Business Customer Partnerships. To support Arizona’s business community, APS launched the Going Smart & Going Green program in 2021 for small businesses, which provides free web-based training in energy conservation and other ways to save.

APS’s new Green Power Partners program, which launched in 2022, provides businesses with special options to reach their sustainability goals and transition to 100% clean operations.

Statewide Transportation Electrification. Nationally, the transportation sector emits more greenhouse gas emissions than the utility sector. To help achieve a cleaner environment and enable more drivers to adopt EVs, APS has engaged in a collaborative stakeholder process to develop a statewide transportation electrificaton strategy and plan, which was approved by the ACC. This approval established a statewide EV adoption goal of just over 1 million EVs on the road by 2030.

Learn more about  APS and electric vehicles.

Partnership with Industry Experts. APS is a partner in the Low-Carbon Resources Initiative (LCRI). The LCRI is a unique effort across the energy landscape, leveraging the collaborative research models of Electric Power Research Institute (EPRI) and Gas Technology Institute (GTI) to produce industry-leading results for society. This five-year initiative brings together industry stakeholders to accelerate development and demonstration of low- and zero-carbon energy technologies through transformative, clean energy research and development.

Community Partnerships. APS and Arizona’s cities are aligned in commitment to make our communities livable, attractive spaces for residents and businesses. The counties, cities, and towns we serve have a stake in the reliability and affordability of the products and services we provide. As governmental bodies, many also have their own carbon and sustainability goals. Our commitment to clean energy provides opportunities for collaboration and can accelerate the ability of municipalities to attain their renewable energy goals and increase their capacity to focus on other areas, such as energy efficiency and overall sustainability. For example, the City of Flagstaff has approved a Memorandum of Understanding (MOU) with APS that establishes a direct partnership and promotes synergy. As of 2022, the City of Flagstaff is partnering with APS to power city operations with 100% carbon-free electricity, as a participant in our Green Power Partners Program. It enables us to use each other’s skill sets to achieve common energy and carbon-based goals. The cities of Tempe and Phoenix also have formal working groups in which we participate and collaborate on achieving our shared Clean Energy Commitment goals.

Learn more about our partnerships with Arizona communities committed to clean energy.

Governance

Oversight. Management takes into consideration climate change and other environmental risks in its strategy development, business planning and enterprise risk management processes.

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The Chairman of the Board

The Chairman of the Board, President and CEO of Pinnacle West and Chairman of the Board and CEO of Arizona Public Service Company provides the vision and leadership to execute the company’s strategy and creates shareholder value. Additionally, he has overarching responsibility for managing risk, including climate change risks that directly or indirectly impact our ability to execute to our mission and achieve our vision.

Board of Directors - Corporate Governance and Public Responsibility Committee

The Board of Directors continues its focus on sustainability. The Board amended the Corporate Governance and Public Responsibility Committee's Charter to specifically add oversight of climate change related issues. The Corporate Governance and Public Responsibility Committee reviews significant sustainability trends that may impact the company, ensuring the oversight of relevant issues by the Board and its committees, and makes recommendations to the Board as appropriate; and directly oversees climate change related issues and the strategies in response to those issues.

Board of Directors - Nuclear and Operating Committee (NOC)

Among other duties, the NOC reviews regular reports from management concerning the APS's environmental, health and safety (EH&S) policies and practices and monitors compliance with such policies and applicable laws and regulations and reviews and discusses with management how the APS can continue to improve its safety practices.

Learn more about our Corporate Governance.

Low-Carbon Principles. APS's transition to clean energy will contribute to a future low-carbon economy that will create growth opportunities while providing environmental benefits. APS developed a set of principles to guide our path toward a low-carbon economy.

Read the APS Low-Carbon Principles.

Green Bond. A green bond is a type of fixed-income instrument with proceeds allocated to fund projects with environmental benefits. APS issued its inaugural green bond in September of 2020. Through this offering, we issued $400 million, which can be used to support projects such as renewable generation, energy storage, energy efficiency programs, climate change mitigation and clean transportation.

Learn more about our green bond and expenditures.

Fleet and Facilities

We work internally to reduce our carbon footprint by working toward a clean goal for our vehicle fleet and by looking for opportunities to reduce energy use at our facilities.

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Fleet: In July of 2020, we set a goal of transitioning 30% of our light-duty vehicles and equipment, comprised of forklifts, all-terrain vehicles, golf carts and light-duty passenger vehicles, to electric by 2025 with an aspirational goal of achieving a 100% clean, carbon-free fleet by 2050. As of the end of 2023, we have electrified 19% of our light-duty vehicles and equipment and have placed an order for our first round of fully electric light-duty pickup trucks.

Our transportation fleet’s conversion to more fuel-efficient vehicles and electrification continues through market research and updates to our electrification strategy. We are monitoring medium-and heavy-duty options and will adopt them once there is more commercial availability. Through this ongoing conversion and by using our fleet more efficiently, we are working to reduce carbon emissions and operating costs.

APS has also adopted idle-mitigation technology as part of a standard package offered on trouble trucks, allowing workers to run laptops and air conditioning without keeping the vehicle running. In addition to reducing our carbon footprint, this decreases noise when working in residential neighborhoods. Our Odyne bucket trucks use less fuel and have quieter operations than traditional diesel or gasoline engine trucks by using battery-assisted drivetrain and electric power takeoff (ePTO) technology while operating the bucket. We will continue to evaluate new idle-mitigation technology for adoption in our larger trucks for cost savings and carbon emission reduction opportunities.

Facilities: Our commitment to reduce our environmental footprint through sustainable practices is evident throughout our APS occupied facilities. Over the past 15 years, APS has achieved 24 Energy Star labels across our building portfolio, including four last year at our Deer Valley Administration Building, Deer Valley Training Building, Flagstaff Service Center Warehouse and Paradise Valley Service Center. APS achieved significant reductions of total greenhouse gas emissions from internal facilities (38 benchmarked APS properties across 17 cities in Arizona totaling 1.1M square feet) required to support the business from 2022 to 2023 totaling 285.6 metric tons of CO2e.

In 2023, APS modernized our building portfolio with the opening of two service centers, HUBwest in Buckeye and Verde Valley in Cottonwood. These contemporary, energy-efficient spaces allowed us to consolidate employees and better serve customers in rapidly growing areas while closing four sites with older, less efficient buildings.

In addition, we completed a full renovation of an existing mid-century modern building that holds historical interest to both the community and to APS. We created a modern, resource-efficient space while honoring the historical roots of the building. At the beginning of the renovation, we discovered the exterior façade of precast concrete panels had developed hairline cracks, making them a safety hazard. The panels had been designed with a spark and flame motif, as at the time of the building construction in the early 1960s, APS provided both natural gas and electricity to customers. We replaced the concrete panels with extruded aluminum composite panels, using the spark and flame motif, but designed the new panels shorter in length and hung at an angle to allow more natural light in the building, while still deflecting sunlight and reducing heat gain from the windows. Several of the panels were incorporated into the landscape around the building and we worked with an architectural firm specializing in historic preservation to salvage 95 panels. Each panel weighed approximately 3,800 pounds and measured 8 by 30 feet. These panels will be incorporated into a variety of the firm’s projects.

While sustainable solutions are integrated into our sustainability efforts, we are also designing for tomorrow through the implementation of our Workplace of the Future initiative. This effort increases the efficiency of how we use space and enables greater flexibility to support the evolving needs of our business and employees. While this initiative is focused on designing spaces for tomorrow, our facilities team is also committed to ensuring renovation projects responsibly manage the trash and construction debris of today. We require our project teams to implement sustainable landfill diversion practices, such as recycling metal and carpet. Unusable, old office furniture is broken apart by our furniture vendor, and metal components are recycled. Furniture in good condition that we are no longer using is donated to a non-profit that matches local nonprofit organizations with this available office furniture.

As we emerged from the pandemic, the company recognized many jobs at APS can be done - and done well - outside of a traditional office environment. It became clear that embracing a hybrid work environment, in which some employees work in the field, some work at company buildings and some work from their home, not only positively impacts employee recruitment and retention, but also provides financial and environmental benefits. As we settle into a “new normal” we have been monitoring the use of office space by incorporating data points, such as building badge access records, to help us understand how employees are using our buildings. This information has helped us identify additional opportunities to manage our spaces more efficiently and effectively. By designing for tomorrow, we have been able to save energy and reduce operational costs while still meeting the day-to-day business needs of employees coming to the office. The workspaces include a combination of working, meeting and collaboration areas that bring people together in an energizing, engaging, employee-centric atmosphere. We will continue to monitor and measure how buildings and spaces are being used to ensure we are supporting business needs as they evolve.

To support further reduction of carbon emissions from fleet and employee vehicles, APS deployed 6 employee and fleet vehicle charging stations in 2023, an increase of almost 9% in charging capacity. The company continues to assess the market and the changing needs of our employees and our fleet to make sure we are installing charging stations to meet future needs.

Going forward, along with our Workplace of the Future effort, proactive assessments of the health and use of our buildings, utilization of the most current technologies as we renovate, reusing materials where possible and further replacing ozone-depleting technologies will guide our decision-making. We will continue to design, construct, operate and maintain our new and remodeled facilities to ENERGY STAR standards and LEED principles.

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