August 2006 Rebate Report: Spotlight: Arizona Public Service

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The Southwestern states have lagged the rest of the nation in funding for and savings from utility energy- efficiency programs. “This is unfortunate because it is the fastest growing region in the country, and there are vast opportunities for cost-effective energy-efficiency improvements,” says Howard Geller, executive director of the Southwest Energy Efficiency Project (SWEEP). Fortunately, the situation is starting to change. Geller reports that funding for electricity utility demand-side management (DSM) programs in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming combined (the states covered by SWEEP) is expected to exceed $110 million in 2006, up from $69 million in 2005, and only $20 million in 2001 (see state-by-state summary table on page 21).

Geller cites a number of drivers for this increase in DSM funding. The excess generating capacity that this region enjoyed in the 1980s and 1990s is now gone. Air conditioning use is rising and utility load factors are declining. As utilities propose new plants, policymakers and regulators are considering more cost-effective and less-polluting alternatives for meeting increased demand and helping consumers manage and reduce their rising energy bills. Recent increases in the price of natural gas–the preferred fuel for new power plants in recent years–have made DSM programs that avoid those costs even more valuable.

One of the hot spots of increased DSM spending in the Southwest is Arizona (see page 21). This month’s Rebate Report highlights Arizona Public Service (APS), which serves more than a million customers in 11 of Arizona’s 15 counties and is the largest affiliate of Pinnacle West. A new energy-efficiency program is currently being offered to APS commercial business, school, industrial, and public agency customers. e&pm

NEW Arizona APS Business Solutions Energy Efficiency Program:

Visit our Rebate Report page for archived Rebate Reports, featuring direct links to incentives, program details, rebate applications, and more.

Eligible measures include lighting, air conditioning, motors, refrigeration equipment, feasibility studies, design assistance, commissioning and retro-commissioning studies, and prescriptive and custom incentives offered for both new construction and retrofit projects. For information call (866) 277-5605, email APS.business.solutions@kema.com, or visit www. aps.com

Prescriptive incentives are available for retrofit, major renovation, and new construction projects.

• Lighting incentives range from $1.75 to $100 per unit.
• Cooling incentives include a base incentive plus efficiency incentive.
• Motors and VSD incentives range from $1.50 to $50 per horsepower
• Refrigeration incentives range from $5 to $200 per unit

Custom incentives are available for retrofit, major renovation, and new construction projects.

• Custom measures are funded at $0.11/ annual kWh savings
• Custom incentives are available for projects with verifiable electricity savings not covered by prescriptive incentives
• Custom incentives are available to large business with >200 kW demand/month

Energy study incentives available for retrofit, new construction, or major renovation projects.

• Feasibility studies, design assistance, commissioning, and retro-commissioning.
• Large business customers are eligible to apply for up to 50% of the qualifying study cost.
• Incentive applications: www.aps.com

Renewable energy customer programs

• The APS Credit Purchase Program is a financial incentive program for customers interested in installing solar systems on their premises. Participants agree to sell the environmental credits associated with the energy generated by these systems to APS. These energy credits will be used to meet APS’ Environmental Portfolio Standard (EPS) requirements. Customers who purchase and install new photovoltaic, solar water heating systems, or solar HVAC systems may qualify.
• The PV incentive for commercial customers is $2.50 per watt DC, with a $500,000 annual incentive cap, and the residential solar water heating incentive is paid at a variable rate of $0.50 per first year avoided kWh, based on system ratings.
• APS EPS Program contact information: (602) 216-0318, solar&renewableenergy@apsc.com

Rebate Report is generated by the Financial Incentives National Database (F.I.N.D.) exclusively for Energy & Power Management. Copyright 2006 RealWinWin, Inc. The data contained herein are provided for information purposes only. Accuracy is not guaranteed as programs are subject to change. RealWinWin disclaims any liability resulting from discrepancies. Rebate Report is only a sampling of available incentives, not a comprehensive list. Visit www.realwinwin.com for further information. Submit inquiries to info@ realwinwin.com or call (866) 799-FIND.