Arizona Public Service Company 

2012 Demand Side Management 

Annual Progress Report 

March 1, 2013 
Table of Contents 

Introduction ............................................................................................................................... 1 

Program Performance and Performance Incentive Calculations ............................................... 1 

Table 1 DSM Program Expenses: Year-to-Date ....................................................................... 2 

Table 2 DSM Program Expenses: Program-to-Date ................................................................. 4 

Table 3 DSM Electric Savings:Year-to-Date .............................................................................. 5 

Table 4 DSM Electric Savings:Program-to-Date ........................................................................ 6 

Table 5 EE Societal Benefits & Performance Incentive: Year-to-Date ....................................... 7 

Table 6 EE Societal Benefits & Performance Incentive: Program-to-Date ................................. 9 

Table 7 Net Environmental Benefits: ....................................................................................... 10

Table 8 Demand Response Programs/Inititiaives Load Reductions and Energy Savings ....... 10 

Residential Existing Homes Heating Ventilation Air Conditioning Program.............................. 11 

Residential New Home Construction Program ......................................................................... 20 

Consumer Products Program ................................................................................................... 25 

Refrigerator Recycling Program ............................................................................................... 33 

Behavioral Program ................................................................................................................. 37 

Multi-Family Program ............................................................................................................... 40 

Shade Trees Program .............................................................................................................. 44 

Energy Wise Low Income Weatherization Program ................................................................. 47 

Non-Residential Program for Large Existing Facilities ............................................................. 51 

Bid for Efficiency Pilot .............................................................................................................. 63 

Non-Residential New Construction and Major Renovations Program ...................................... 64 

Small Business Program .......................................................................................................... 68 

Schools Program ..................................................................................................................... 75 
Energy Information Services Program ..................................................................................... 82 

Codes & Standards Program ................................................................................................... 84 

APS Peak Solutions® Program ............................................................................................... 87 

Critical Peak Pricing Program .................................................................................................. 89 

Time-of-Use Rates Including Super Peak Pricing Program ..................................................... 91 

Home Energy Information Pilot Program.................................................................................. 93 

American Recovery and Reinvestment Act .............................................................................. 96 

Financing Programs ................................................................................................................. 97 

DSM Measurement, Evaluation and Research ........................................................................ 98 

Certification by Officer .............................................................................................................. 99 

 
ARIZONA PUBLIC SERVICE COMPANY 

DSM ANNUAL PROGRESS REPORT FOR THE PERIOD: 

JANUARY THROUGH DECEMBER 2012

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INTRODUCTION 

Arizona Public Service Company (“APS”) is filing this Demand Side Management Annual Progress 

Report (“Progress Report”) for 2012 (“Reporting Period”) in compliance with R14-2-2409(A) and the 

reporting requirements contained in Arizona Corporation Commission (“ACC” or “Commission”) 

Decision No. 73089. This report includes the following information for all APS Demand Side 

Management (“DSM”) programs that were in place during this Reporting Period: 

 

u APS’s progress toward meeting the cumulative energy efficiency standard; 

u An identification of Commission approved DSM Programs and measures by customer 

segment; 

u A description of the findings from any research projects completed; 

u A brief description of the program; 

u Program goals, objectives, and savings targets; 

u Level of customer participation; 

u Costs incurred disaggregated by type of cost, such as administrative costs, rebates, and 

monitoring costs; 

u A description of the results of evaluation and monitoring activities; 

u kW and kWh savings realized; 

u Environmental benefits realized including reduced emissions and water savings; 

u Incremental benefits and net benefits in dollars; 

u Performance Incentive calculations; 

u Problems encountered and proposed solutions; 

u A description of modifications proposed for the following year; 

u If applicable, program or program measure termination and propsed date of termination; 

u Where, applicable, reporting requirements included in Commission Decision No. 73089 and 

other Commission Decisions; and 

u Other significant information. 

PROGRAM PERFORMANCE AND PERFORMANCE INCENTIVE CALCULATIONS 

Summary pages detailing the program expenses are provided in Tables 1 and 2. Tables 3 and 4 

depict DSM program MW and MWh savings. Tables 5 and 6 depict net benefits and the performance 

incentive. Table 7 depicts the environmental benefits associated with the lifetime energy savings 

resulting from DSM programs. Table 8 depicts 2011 demand response (“DR”) load reduction and 

savings values. 

 
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TABLE 1 

Year-to-Date: DR Program Expenses: January 2012 – December 2012 

DR Program MER Metering 

Program 

Implementation1

Program 

Marketing 

Planning & 

Admin 

Total 

Program 

Cost 

HEI Pilot Program $9,769 $0 $275,625 $67,733 $101,681 $454,808 

Marketing & MER 

of Rate Options 

$0 $34,502 $35,232 $10,318 $0 $80,052 

Peak Solutions $0 $0 $2,476,283 $0 $111,390 $2,587,673 

DR Total $9,769 $34,502 $2,787,140 $78,051 $213,071 $3,122,533 

Year-to-Date: Energy Efficiency (“EE”) Program Expenses: January 2012 – December 2012 

EE Program Rebates & 

Incentives 

Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implementation1

Program 

Marketing 

Planning & 

Admin. 

Total 

Program 

Cost 

Residential: 

Consumer Products $4,716,311 $37 ($20,000) $2,446,603 $276,190 $388,928 $7,808,069 

Existing Homes $7,197,702 $160,365 $243,764 $2,251,355 $279,848 $403,597 $10,536,631 

New Construction $2,762,550 $77,795 $0 $447,945 $204,717 $132,073 $3,625,080 

Appliance Recycling $284,002 $0 $0 $757,111 $98,683 $58,782 $1,198,578 

Behavioral $0 $0 $0 $816,653 $0 $54,743 $871,396 

Multi-Family $314,649 $45 $0 $838,093 $9,337 $108,244 $1,270,368 

Shade Trees $41,546 $0 $1,691 $196,447 $1,027 $23,944 $264,655 

Low Income $2,234,220 $11,085 $0 $50,000 $17,469 $120,246 $2,433,020 

Totals for 

Residential 

$17,550,980 $249,327 $225,455 $7,804,207 $887,271 $1,290,557 $28,007,797 

Non-Residential: 

Lg. Existing Facilities $17,245,333 $247,963 $4,147 $2,539,924 $318,927 $221,821 $20,578,115 

New Construction $2,904,519 $33,695 $860 $629,120 $78,230 $47,264 $3,693,688 

Small Business $2,610,308 $24,104 $821 $736,895 $71,546 $72,065 $3,515,739 

Energy Information 

Services 

$0 $0 $1,170 $27,997 $0 $1,605 $30,772 

Schools2 $2,911,475 $56,097 $1,107 $777,335 $69,114 $82,051 $3,897,179 

Total NonResidential $25,671,635 $361,859 $8,105 $4,711,271 $537,817 $424,806 $31,715,493 

Codes & Standards $0 $0 $0 $70,159 $0 $21,541 $91,700 

EE Program Costs $43,222,615 $611,186 $233,560 $12,556,462 $1,425,088 $1,736,904 $59,814,990 

Measurement, Evaluation & Research $1,929,312 

Performance Incentive3 $8,631,364 

TOTAL EE Programs $70,375,666 

Total DSM Spending $73,498,199 

1. Includes costs for Implementation Contractor for all programs. 

2. Schools are allowed to receive funding from other Non-Residential programs as well. Refer to the subsection 

on the Schools Program for additional information on total funds allocated to school districts to date. 

3. The Performance Incentive is calculated in Tables 5 & 6, and the methodology/calculation was approved by 

the ACC in Decision No. 69663 and was modified in the 2009 Settlement Agreement, Decision No. 71448. 

Definitions

Rebates & Incentives – Dollars that go toward customer rebates and incentives, installation of low income weatherization 

and low income bill assistance. 

Training & Technical Assistance – Dollars that are used for EE training and technical assistance. 

Consumer Education – Dollars that are used to support general consumer education about EE improvements. 
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JANUARY THROUGH DECEMBER 2012

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Program Implementation – Program delivery costs associated with implementing the program - includes implementation 

contract labor and overhead costs, as well as other direct program delivery costs. 

Program Marketing – Expenses related to marketing the program and increasing DSM consumer awareness (direct 

program marketing costs as opposed to general consumer education). 

Planning & Administration – APS’s costs to plan, develop and administer programs, which includes management of 

program budgets, oversight of the RFP process and implementation contractor, program development, program 

coordination and general overhead expenses. 

Measurement, Evaluation, & Research (“MER”) – Activities that will identify current baseline efficiency levels and the 

market potential of DSM measures, perform process evaluations, verify that energy-efficient measures are installed, track 

savings, and identify additional EE research. 

Performance Incentive – Share (%) of DSM net economic benefits (benefits minus cost), capped at a percent of total 

DSM expenditures, depending on the percent of MWh savings goal achieved.
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TABLE 2 

Program-to-Date: DR Program Expenses: January 2011 – December 2012 

DR Program MER Metering 

Program 

Implementation1

Program 

Marketing 

Planning & 

Admin 

Total 

Program 

Cost 

HEI Pilot Program $17,302 $0 $488,172 $119,965 $180,092 $805,531 

Marketing & MER 

of Rate Options 

$0 $34,502 $35,232 $137,018 $0 $206,752 

Peak Solutions $0 $51,017 $7,976,166 $0 $128,290 $8,155,473 

DR Total $17,302 $85,519 $8,499,570 $256,983 $308,382 $9,167,756

Program-to-Date: EE Program Expenses: January 2005 – December 2012 

EE Program Rebates & 

Incentives 

Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implementation1

Program 

Marketing 

Planning & 

Admin. 

Total 

Program 

Cost 

Residential: 

Consumer Products $23,263,137 $4,633 $52,177 $9,537,338 $3,361,261 $1,291,495 $37,510,041 

Existing Homes $29,747,129 $924,880 $1,352,658 $9,186,922 $2,455,659 $898,665 $44,565,913 

New Construction $7,012,256 $677,091 $129,336 $1,850,474 $2,385,619 $740,673 $12,795,449 

Appliance Recycling $799,192 $0 $0 $2,179,075 $594,340 $96,018 $3,668,625 

Behavioral $0 $0 $0 $1,623,107 $0 $154,203 $1,777,310 

Multi-Family $528,624 $1,195 $101 $1,437,945 $18,310 $153,815 $2,139,990 

Shade Trees $85,494 $0 $1,935 $435,770 $13,899 $33,920 $571,018 

Low Income $11,083,829 $96,294 $22,972 $669,860 $66,874 $832,674 $12,772,503 

Totals for 

Residential 

$72,519,661 $1,704,093 $1,559,179 $26,920,491 $8,895,962 $4,201,463 $115,800,849

Non-Residential: 

Lg. Existing Facilities $48,091,502 $1,020,191 $288,596 $12,526,403 $2,916,307 $1,977,749 $66,820,748 

New Construction $10,745,731 $214,538 $56,860 $5,080,532 $1,219,199 $731,959 $18,048,819 

Small Business $7,146,822 $103,340 $25,872 $3,187,333 $589,789 $398,736 $11,452,022 

Building Operator 

Training 

$0 $56,897 $0 $22,043 $15,783 $7,480 $102,203 

Energy Information 

Services 

$102,659 $17,817 $1,753 $181,940 $12,686 $28,086 $344,941 

Schools2 $7,465,920 $157,751 $26,349 $2,382,899 $723,254 $375,970 $11,132,143 

Total NonResidential $73,552,634 $1,570,664 $399,430 $23,381,150 $5,477,018 $3,519,980 $107,900,876

Codes & Standards $0 $0 $0 $70,159 $0 $21,541 $91,700 

EE Program Costs $146,072,295 $3,274,757 $1,958,609 $50,371,800 $14,372,980 $7,742,984 $223,793,425

Measurement, Evaluation & Research $11,034,012 

Performance Incentive3 $23,193,752 

TOTAL EE Programs $258,021,189

Total DSM Spending $267,188,945

1. Includes costs for Implementation Contractor for all programs. 

2. Schools are allowed to receive funding from other Non-Residential programs as well. Refer to the subsection 

on the Schools Program for additional information on total funds allocated to school districts to date. 

3. The Performance Incentive is calculated in Tables 5 & 6, and the methodology/calculation was approved by 

the ACC in Decision No. 69663 and was modified in the 2009 Settlement Agreement, Decision No. 71448. 

The PTD performance incentive amount is a summation of the performance incentive amount as calculated 

during each previous Reporting Period beginning with the January – June 2005 Progress Report. 
ARIZONA PUBLIC SERVICE COMPANY 

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JANUARY THROUGH DECEMBER 2012

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TABLE 3 

Year-to-Date: DSM Electric Savings: January 2012 – December 20121, 4, 6

DSM Program 

Gross 

Peak MW 

Capacity 

Savings 

Gross Annual 

MWh Savings

Gross Lifetime2

MWh Savings

Net5 Peak 

MW 

Capacity 

Savings 

Net5

 Annual 

MWh Savings

Net5 Lifetime2 MWh 

Savings

Residential: 

Consumer 

Products 14.9 142,774 915,718 14.9 142,774 915,718 

Existing Homes 13.7 22,069 270,665 13.7 22,069 270,665 

New 

Construction 

2.7 14,002 280,044 2.7 14,002 280,044 

Appliance 

Recycling 2.1 11,873 71,241 2.1 11,873 71,241 

Behavioral 3.9 23,543 23,543 3.9 23,543 23,543 

Multi-Family 0.4 5,380 45,896 0.4 5,380 45,896 

Shade Trees 0.3 477 14,297 0.3 477 14,297 

Low Income3 0.9 2,503 43,809 0.9 2,503 43,809

Totals for 

Residential 38.9 222,621 1,665,213 38.9 222,621 1,665,213 

NonResidential: 

 

Large Existing 

Facilities 26.4 192,263 2,530,369 26.4 192,263 2,530,369 

New 

Construction 4.9 31,905 467,012 4.9 31,905 467,012 

Small Business 4.3 25,595 343,337 4.3 25,595 343,337 

Energy 

Information 

Services 0 0 0 0 0 0 

Schools 3.8 24,523 340,383 3.8 24,523 340,383 

Total NonResidential 39.4 274,286 3,681,101 39.4 274,286 3,681,101

Segment 

Totals 78.3 496,907 5,346,314 78.3 496,907 5,346,314 

Codes & 

Standards 0.6 2,332 23,320 0.6 2,332 23,320 

DR Contribution 52,400 52,400 

DSM Total 78.9 551,639 5,369,634 78.9 551,639 5,369,634 

1. Savings for 2008 and after are MER adjusted, per Decision No. 69663, and savings prior to 2008 are NOT

MER adjusted. 

2. Refers to savings over the expected lifetime of all program measures. 

3. Semi-Annual Reports submitted prior to the July-December 2007 Report inadvertently reported only annual 

MWh savings for the Low Income Program. 

4. Savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

5. Based on 2010 MER NTGR analysis, APS is utilizing a NTGR of 1.0 for all DSM programs and measures. 

6. APS includes measure level savings in work-papers submitted to ACC Staff, as measure level savings are 

too voluminous to include in this report.

Definitions

Gross Savings – Demand and energy savings related to the DSM programs prior to accounting for free-riders or spillover. 

Net Savings – Demand and energy savings related to the DSM programs after accounting for free-riders and spillover. 

Free-riders – Program participants who would have installed the energy-efficient DSM measures anyway, even if the program were 

not in operation. 

Spillover – Refers to indirect energy impacts of the program and estimates savings from customers who take the energy-efficient 

action as a result of knowledge of the program, but who do not receive an incentive through the program.
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JANUARY THROUGH DECEMBER 2012

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TABLE 4 

Program-to-Date: DSM Electric Savings: January 2005 – December 20121, 4, 6

DSM Program 

Gross Peak 

MW Capacity 

Savings 

Gross Annual 

MWh Savings 

Gross Lifetime2

MWh Savings 

Net5

 Peak 

MW 

Capacity 

Savings 

Net5

 Annual 

MWh Savings 

Net5 Lifetime2

MWh Savings 

Residential: 

Consumer 

Products 115.4 973,016 5,727,926 97.0 826,923 4,894,517 

Existing Homes 63.4 98,011 1,320,740 52.9 86,877 1,156,357 

New Construction 21.5 48,829 976,575 20.6 46,825 936,489 

Appliance 

Recycling 6.2 39,988 239,927 5.4 34,549 207,293 

Behavioral 5.4 36,123 36,123 5.4 36,123 36,123 

Multi-Family 0.9 9,180 74,346 0.9 9,180 74,346 

Shade Trees 0.8 1,249 37,455 0.8 1,249 37,455 

Low Income3 2.1 9,849 181,427 2.1 9,849 181,427

Totals for 

Residential 215.7 1,216,245 8,594,519 185.1 1,051,575 7,524,007 

Non-Residential: 

Large Existing 

Facilities 82.8 649,374 8,714,034 77.5 603,159 8,080,078 

New Construction 19.0 209,065 3,011,751 16.4 173,704 2,507,971 

Small Business 15.8 87,540 1,225,650 15.1 83,394 1,168,339 

Building Operator 

Training 

0.2 1,001 12,447 0.1 701 8,713 

Energy 

Information 

Services 2.8 2,807 41,780 2.8 2,807 41,780 

Schools 11.5 77,949 1,115,032 10.6 72,661 1,034,903

Total NonResidential 132.1 1,027,736 14,120,694 122.5 936,426 12,841,784

Segment Totals 347.8 2,243,981 22,715,213 307.6 1,988,001 20,365,791 

Codes & 

Standards 0.6 2,332 23,320 0.6 2,332 23,320 

DR Contribution 96,533 96,533 

DSM Total 353.1 2,342,846 22,738,533 308.2 2,086,866 20,389,111 

1. Savings for 2008 and after are MER adjusted, per Decision No. 69663, and savings prior to 2008 are NOT MER 

adjusted. 

2. Refers to savings over the expected lifetime of all program measures. 

3. Semi-Annual Reports submitted prior to the July-December 2007 Report inadvertently reported only annual 

MWh savings for the Low Income Program. 

4. Savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

5. Based on 2010 MER NTGR analysis, APS is utilizing a NTGR of 1.0 for all DSM programs and measures. 

Definitions

Gross Savings – Demand and energy savings related to the DSM programs prior to accounting for free-riders or spillover. 

Net Savings – Demand and energy savings related to the DSM programs after accounting for free-riders and spillover. 

Free-riders – Program participants who would have installed the energy-efficient DSM measures anyway, even if the program were not 

in operation. 

Spillover – Refers to indirect energy impacts of the program and estimates savings from customers who take the energy-efficient action 

as a result of knowledge of the program, but who do not receive an incentive through the program. 
ARIZONA PUBLIC SERVICE COMPANY 

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JANUARY THROUGH DECEMBER 2012

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TABLE 5 

EE Societal Benefits and Performance Incentive 

Year-to-Date: January 2012 – December 2012 

EE Program Program Cost Societal Benefits Societal Costs Net Benefits 

Residential: 

Consumer Products $7,808,068 $48,939,398 $12,750,266 $36,189,132 

Existing Homes $10,536,630 $29,822,671 $17,883,116 $11,939,555 

New Construction $3,625,080 $27,814,331 $11,253,052 $16,561,279 

Appliance Recycling $1,198,578 $4,543,334 $914,576 $3,628,758 

Behavioral $871,396 $949,706 $871,396 $78,310 

Multi-Family $1,270,368 $2,044,435 $1,618,226 $426,209 

Shade Trees $264,655 $2,201,373 $836,100 $1,365,273 

Low Income1, 2 $2,433,020 $2,179,336 $2,179,336 $0 

Totals for Residential $28,007,795 $118,494,584 $48,306,068 $70,188,516 

Non-Residential: 

Large Existing Facilities $20,578,115 $148,993,238 $52,727,137 $96,266,101 

New Construction $3,693,689 $27,929,281 $7,529,683 $20,399,598 

Small Business $3,515,739 $21,053,740 $5,550,593 $15,503,147 

Energy Information Svcs. $30,772 $0 $30,772 ($30,772) 4

Schools $3,897,179 $21,053,027 $9,456,651 $11,596,376 

Total Non-Residential $31,715,494 $219,029,286 $75,294,836 $143,734,450 

Segment Totals $59,723,289 $337,523,870 $123,600,904 $213,922,966 

Codes & Standards $91,700 $1,491,162 $618,798 $872,364 

Measurement, Evaluation 

& Research $1,929,312 $1,929,312 ($1,929,312)

Performance Incentive 

Amount $8,631,364 $8,631,364 ($8,631,364) 

Total $70,375,665 $339,015,032 $134,780,378 $204,234,654 

1. Program Costs include weatherization and bill assistance. Societal Costs do not include bill assistance 

because it does not contribute to electric savings. 

2. Consistent with the ACC Staff’s analysis in Decision No. 68647, the societal benefit is equal to the societal 

cost, resulting in a benefit to cost ratio of 1.00 and net benefits of 0. 

3. The ACC approved a revised Performance Incentive calculation in Decision No. 71448, on December 30, 

2009, as follows. “The existing Performance Incentive shall be modified to be a tiered Performance 

Incentive as a % of net benefits, capped at a tiered % of program costs.

4. There were no new 2012 installations to report, and therefore, no incremental savings for Energy 

Information Services. However, the program remains cost effective based on on-going savings.

DSM Goal 

2011 Retail Sales with Losses 29,957,370 

DSM % Goal 1.75% 

DSM MWh Goal 524,254 

2012 Annual DSM MWh Savings 

From EE Programs 499,239 

From DR Programs (at 10% of Goal) 52,400 

Total DSM Savings 551,639 

 
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Achievement relative to the Company’s EE goal equals 551,639 MWh / 524,254 MWh, or 105% 

achieved, which placed APS in the 96% to 105% PI range. The 2012 Performance Incentive amount 

is the minimum of Net Benefits or Program costs: 

 

Achievement Relative to the EE Goal Performance Incentive 

as % of Net Benefits 

Performance Incentive Capped at % 

of Program Costs 

96% to 105% 7% 14% 

Net Benefits, Program Costs (prior to PI and 

codes & standards) 

$211,993,654 $61,652,601 

Calculated PI Amount $14,839,556 $8,631,364 
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JANUARY THROUGH DECEMBER 2012

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TABLE 6 

EE Societal Benefits and Performance Incentive 

Program-to-Date January 2005 – December 2012 

1. Program Costs include weatherization and bill assistance. Societal Costs do not include bill assistance 

because it does not contribute to electric savings. 

2. Consistent with the ACC Staff’s analysis in Decision No. 68647, the societal benefit is equal to the societal 

cost, resulting in a benefit to cost ratio of 1.00 and net benefits of 0. 

3. The ACC approved a revised Performance Incentive calculation in Decision No. 71448, on December 30, 

2009, as follows. “The existing Performance Incentive shall be modified to be a tiered Performance 

Incentive as a % of net benefits, capped at a tiered % of program costs.

4. The Behavioral Program was cost effective in 2012, as evidenced above in Table 5. However, the PTD 

results includes start-up costs that will be offset over time with additional savings.

 

EE Program Program Cost Societal Benefits Societal Costs Net Benefits 

Residential: 

Consumer Products $37,510,041 $272,636,604 $60,831,016 $211,805,589 

Existing Homes $44,565,913 $102,819,546 $72,595,597 $30,223,915 

New Construction $12,795,449 $74,878,965 $24,919,389 $49,959,576 

Appliance Recycling $3,668,625 $12,233,188 $2,869,432 $9,363,756 

Behavioral $1,777,310 $1,541,715 $1,777,310 ($235,595)4

Multi-Family $2,139,990 $3,575,887 $2,635,764 $940,123 

Shade Trees $571,018 $3,994,458 $1,767,808 $2,226,650 

Low Income1, 2 $12,772,503 $10,953,543 $10,953,543 $0

Totals for Residential $115,800,849 $482,633,906 $178,349,893 $304,284,013 

Non-Residential: 

Large Existing Facilities $66,820,748 $414,304,108 $140,793,564 $272,529,688 

New Construction $18,048,819 $118,577,790 $36,842,464 $81,307,521 

Small Business $11,452,022 $73,342,110 $16,660,757 $56,423,684 

Building Operator Training $102,203 $424,302 $183,392 $240,910 

Energy Information Services $344,941 $1,694,660 $633,172 $1,061,488 

Schools $11,132,143 $58,557,689 $22,973,258 $35,431,240 

Total Non-Residential $107,900,876 $666,900,659 $218,086,607 $446,994,531 

Segment Totals $223,701,725 $1,149,534,565 $396,436,500 $737,408,884 

Codes & Standards $91,700 $1,491,162 $618,798 $872,364 

Measurement, Evaluation & Research $11,034,012 $11,034,012 $(11,034,012) 

Performance Incentive3 $23,193,752 $23,193,752 $(23,193,752)

Total $258,021,490 $1,151,025,727 $431,283,063 $719,742,664 
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TABLE 7 

Net Environmental Benefits1

Reporting Period 

Water 

Mil. 

Gal.2

SOx Lbs. NOx Lbs. CO2 

Mil. Lbs. PM10 Lbs. 

Year-to-Date: January – December 

2012 

1,695 23,791 452,023 4,806 132,052 

 

Program-to-Date: January 2005 – 

December 2012 

6,456 90,628 1,721,928 18,309 503,035 

1. The environmental reductions are based on the net KWh energy savings of all program measures installed 

during the Reporting Period over their expected lifetimes. 

2. Some measures will result in customer water savings, which this calculation does not include. Only utility water savings 

are included in this calculation. 

TABLE 8 

 Demand Response Program/Initiatives1

2012 Load Reduction and Energy Savings: January – December, 2012 

Program/Initiatives Load Reduction 

(MW) 

Energy Savings 

Year-to-Date 

(MWh)2

APS Peak Solutions® 63 275,940 

Critical Peak Pricing 0.6 2,453 

Time of Use Rates 

& Super Peak 118.24 517,585 

Total 181.8 795,9783

1. No load reduction was assumed for the HEI Pilot because the savings are unknown at this time. 

2. Energy Savings (MWh) = Load reduction (MW) X (8,760/2) hours X 50% load factor. 

3. Per ACC Decision No. 71436, the credit for demand response and load management peak reductions shall not 

exceed 10% of the EE standard for any year. 

4. The load reduction estimate is for 2011; as the estimate for 2012 was not finalized at the time of filing this report. 
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PROGRAM: RESIDENTIAL EXISTING HOMES HVAC

Description 

The Residential Existing Homes Heating, Ventilation, and Air Conditioning Program (“Residential 

HVAC”) is divided into two distinct components, 1) HVAC measures and 2) Home Performance with 

ENERGY STAR® (“HPwES”) measures. 

The HVAC measures use a combination of financial incentives, contractor training and consumer 

education to promote the proper installation and maintenance of energy-efficient HVAC systems. The 

Air Conditioner (“AC”) Rebate, Duct Test and Repair and Residential Diagnostic measures support 

energy-efficient Residential air conditioning and heating systems along with the proper installation, 

maintenance and repair of these systems. 

The HPwES measures promote a whole house approach to EE by offering incentives for 

improvements to the building envelope of existing Residential homes within the APS service territory. 

HPwES includes measures that improve the EE of the home with air sealing, insulation, shade 

screens, faucet aerators, and low flow showerheads. 

Both components of the Residential Existing Homes HVAC program provide APS customers with 

referrals to contractors who meet strict program requirements for professional standards, technician 

training, and customer satisfaction. 

The two components are discussed individually below: 

a. HVAC Measures – AC Rebates, Duct Test and Repair and Residential Diagnostic

The AC Rebate with Quality Installation (“QI”) measure offers financial incentives to homeowners for 

buying EE equipment (>13 SEER/10.8 EER), that is installed in such a manner that it meets the 

program requirements for air flow, refrigerant charge and sizing. The Duct Test and Repair (“DTR”) 

measure provides financial incentives to customers for having their HVAC system’s duct work tested 

for leakage and repaired. APS also has a pilot Residential Diagnostic measure to provide a financial 

incentive for an advanced diagnostic tune-up on existing air conditioning and heat pump equipment to 

ensure that it operates more efficiently. The main components of this measure are the correction of 

the refrigeration charge, leak repair, condenser coil cleaning and air flow verification. 

In June 2006, APS implemented the AC Rebate measure. On August 1, 2007, APS began offering 

the QI measure to optimize the installation of high-efficiency equipment that meets the AC Rebate 

measure requirements. This measure has high standards on air conditioning sizing, airflow and 

refrigerant charge to ensure that when the equipment is installed, it will operate at a high level of 

efficiency. 

On December 31, 2007, APS began the DTR measure which offers financial incentives to customers 

that test and, if necessary, repair the duct work in their homes. 
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On April 7, 2009, the ACC approved the combination of the AC Rebate and QI measures along with 

revised incentive levels. See the January through June 2009 Semi-Annual Progress report for a 

detailed explanation. 

On October 7, 2009, the ACC approved APS’s request to modify the contractor requirements to offer 

the AC Rebate and QI measures. See the July through December 2009 Semi-Annual report for a 

detailed explanation. 

The Residential Diagnostic measure was approved as a Pilot on January 6, 2011 and it was launched 

on March 31, 2011. 

Program Modifications 

Decision No. 73089, April 5, 2012 approved changes to the AC Rebate with QI. The rebate amount 

was changed to $270 for all SEER levels and EER of 10.8 or above. As of April 7, 2012 the rebate 

levels no longer varied by SEER levels and anything installed after this date received the $270 rebate 

if it complied with the other program requirements. The contractor rebate of $50 was also 

discontinued as of April 5, 2012. Program modifications for 2013, where applicable, are included in 

APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

The HVAC component of the program uses a combination of financial incentives, contractor training 

and consumer education to promote high-efficiency HVAC systems, through the proper installation of 

this equipment, increasing existing equipment efficiency, and the testing and repair of the duct work in 

existing Residential homes within the APS service territory. 

APS’s 2012 DSM Implementation Plan estimated that the EE savings expected to result from the 

HVAC portion of the program could reduce peak demand by approximately 14.0 MW, 19,000 MWh 

annually and 205,000 MWh over the life of the measures expected to be installed in 2012. 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan.

Levels of Participation 

u A total of 13,999 rebates were paid through the HVAC portion of the program in 2012. APS 

has paid: 

1. AC Rebate Incentive Levels in 2012 

a. 704 of the $175 AC rebates for 13 SEER/10.8 EER equipment with QI to the 

customer; $50 to contractor. This rebate ended on April 4, 2012 

b. 2,256 of the $425 AC rebates for 14 - 16 SEER/10.8 EER equipment with QI to the 

customer; $50 to contractor This rebate ended on April 4, 2012 
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c. 249 of the $525 AC rebates for 17+ SEER/10.8 EER equipment with QI to the 

customer; $50 to contractor. This rebate ended on April 4, 2012. 

d. 6,145 of the new $270 AC rebates for all SEER/10.8 EER equipment with QI to the 

customer that began on April 5, 2012. 

e. 1,810 of the $100 Residential Diagnostic rebates. 

2. 2,835 DTR reported rebates. There was 3,375 total rebates, 540 were for tests without 

repairs. Only the repair (2,835) rebates are used for calculating the demand and energy 

savings shown in the savings table below. 

u There are currently 194 contractors that can offer the APS AC Rebate of which 145 are APS 

Qualified Contractors. There are 49 Rebate Eligible contractors that entered the program 

through the application process approved by the ACC in October 2009, which does not require 

membership in the Arizona Heat Pump Council. There are currently 37 contractors that can 

offer the rebates outside the metropolitan (“metro”) area serving Arizona City, Aquila, Big 

River, Bouse, Bullhead City, Casa Grande, Camp Verde, Chino Valley, Clarkdale, Coolidge, 

Cornville, Cottonwood, Dewey, Eloy, Flagstaff, Florence, Jerome, Kingman, Lake Havasu, 

Parker, Payson, Prescott, Prescott Valley, Sedona, Show Low, Waddell, Wickenburg, Whitman 

and Yuma. 

u 1,492 (contractor) students participated in APS sponsored training courses, in both metro and 

non-metro training classes, to meet APS Qualified Contractor program training requirements 

for 2012. 

u The APS Energy Answer Line provided 1,959 referrals to customers seeking HVAC service, 

repair or replacement of their home HVAC system in this Reporting Period. 

u There are currently 55 contractors with Building Performance Institute certificates that are 

receiving DTR referrals. 622 Duct Rebate calls were taken during this Reporting Period. 

There are ten such contractors outside of the Phoenix area, serving Flagstaff, Show Low, 

Yavapai County and Yuma. 

u The APS Qualified Contractor list, which is posted on the aps.com website, had 13,858 visits in 

2012. The APS AC Rebate webpage had 26,859 visits, 10,757 visits for the DTR webpage 

and 24,332 for the Residential Diagnostic webpage. 

u There were 96,587 unique user visits to the APS Energy Survey home energy audit at 

aps.com during this Reporting Period. Energy savings are not currently being attributed to 

customers who complete the on-line audit. 

Evaluation and Monitoring Activities and Results 

u Continued to review and update Residential HVAC Measure Analysis Spreadsheets and 

Analytic Database. 

u Provided guidance on Residential HVAC components of program design tool to support 

implementation plan. 

u Developed savings and cost assumptions for new Prescriptive Duct Sealing measure. 

u Completed metering of HVAC systems for a sample of customers receiving DTR services. 
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u Assessed measurement and computational capabilities of multiple HVAC diagnostic tools used 

by program contractors. Provided list of required measurements to support annual evaluation 

efforts. 

u Conducted process and customer satisfaction surveys with participants receiving quality 

installation, DTR, and advanced diagnostic and tune up services.

MER Adjusted Gross kW and kWh Savings

1. DTR total number of units shows only the number of rebates paid for repair work. The rebates paid 

for just the duct test are not included.

2. MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

In addition to the savings shown above, the HVAC measures includes a number of market 

transformation efforts, such as contractor training and customer education activities designed to 

transform the market to EE. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Problems Encountered and Proposed Solutions 

The AC Rebate program was modified as described above by Decision No. 73089. The Residential 

Diagnostic measure experienced a slow year in 2011, as described in last year’s Semi-Annual report. 

This measure saw considerable improvement this year. The volume and contractor execution of this 

measure has gotten significantly better. In the fall of 2012, APS starting providing more extensive 

hands on technician training for this measure that has allowed for further improvements in the 

measure’s delivery in the field. 

 

Incentive Type Number of 

Units

Annual kWh 

Savings per 

Unit

TOTAL 

Annual MWh 

Savings

Est. 

Measure 

Life

Total 

Lifetime 

MWh

Coin. kW 

Demand 

Savings 

Per Unit

Total MW 

Savings

13 SEER/10.8 EER w/ QI, $175 704 1,015 715 10 7,146 0.555 0.4 

14 -16 SEER/10.8 EER w/ QI, $425 2,256 1,303 2,940 11 32,335 0.708 1.6 

17+ SEER/10.8 EER w/ QI, $425 249 1,441 359 12 4,306 0.757 0.2 

All SEER/10.8 EER w/QI, $270 6,145 980 6,022 10 60,221 0.527 3.2 

Residential Diagnostic 1,810 565 1,023 6 6,136 0.377 0.7 

Duct Test and Repair1 1,017 2,835 2,883 18 51,898 1.161 3.3 

TOTAL 13,999 13,941 162,041 9.4 
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Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

DSM Program

Rebates & 

Incentives

Training & 

Technical 

Assistance

Consumer 

Education

Program 

Implement

Program 

Marketing

Planning & 

Admin.

Program Total 

Cost

Res. Existing HVAC (AC 

Rebates, DTR, RD) $3,956,266 $117,767 $243,764 $1,143,512 $87,048 $266,313 $5,814,670

DSM Program Implementation (Contractor) Implementation (APS) Program 

Implementation

Res. Existing HVAC $1,103,018 $40,494 $1,143,512 

During the Reporting Period, participation in the Res. Existing HVAC program was less than 

expected, resulting in the program being under budget for the year. APS shifted a portion of the Res. 

Exiting HVAC budget to the Res. New Construction program, to accommodate an unexpected level of 

participation in that program. 

The Residential Diagnostic measure improves considerably from 2011, but was still under the 

budgeted volume. 

 

Findings from Research Projects 

Nothing to report during this Reporting Period 

 

Other Significant Information 

Residential Existing Home HVAC program marketing and consumer/contractor education efforts for 

this Reporting Period include: 

u TV ads promoting the program ran on Fox AZ, Fox Sports, KNXV, KPNX, KSAZ, KTVK, KTAZ 

(Telemundo Spanish), Telefutura and Univision (Phoenix and Yuma Spanish) and My45. 

u Radio ads to promote the program ran on KTAR-AM, and Spanish stations KSUN, KHOT, 

KOMR, KOMR, KLNZ, KVVA, KNAI, KVIB and KCEC (Yuma). 

u Articles in APS Lifestyles Newsletter for February (Ducts), March (Residential Diagnostic), May 

(Residential Diagnostic), June (AC), July (AC), August (AC), September (Residential 

Diagnostic), November (Ducts). 

u Newspaper ads in the Arizona Informant, Bajo El Sol, La Voz, Prensa Hispana. Online Banner 

Ads: 

u Online Banner Ads ran on abc15.com the web sites for Arizona Highways, Arizona 

Diamondbacks, Arizona Informant, Phoenix Mercury, Phoenix Suns, Telemundo and Univision. 

u Presentations on the APS Residential DSM programs to numerous community groups. Most 

of the consumer education events listed under Consumer Products includes information on the 

AC Rebate and other APS Residential programs. 

u The aps.com homepage prominently features APS EE and renewable energy programs. 

These programs are grouped in one section of the homepage entitled “Green Choice,” which is 
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coordinated with the current advertising campaign and makes these programs easier to find for 

customers. 

b. Home Performance with ENERGY STAR®

The HPwES program offers home owners a $99 comprehensive home energy checkup to help 

identify ways to improve EE and comfort throughout the home. This program element offers a direct 

install feature that includes up to 10 compact fluorescent lamps (“CFLs”), three faucet aerators, and 

one low-flow showerhead that are installed at the time of the checkup. Additional financial incentives 

are available for duct sealing, air sealing, insulation, and shade screens, once a home owner has 

completed an HPwES checkup. After measures are installed, rigorous test out and quality assurance 

protocols then verify installation quality and performance. 

In January 2010, the ACC approved HPwES as a new measure under the Residential HVAC 

program. 

Program Modifications 

No significant program modifications were made to the HPwES program during this Reporting Period. 

Program modifications for 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

The HPwES measures promote a whole house approach to EE by offering financial incentives for 

improvements to the building envelope of existing Residential homes within the APS service territory. 

ACC Decision No. 71448 requires the APS HPwES measure to complete a minimum of 1,000 energy 

audits in 2010 and a total of 3,000 audits between 2010 and 2012. The program has completed 

11,995 audits to date and has met both of these objectives. 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Levels of Participation 

During this Reporting Period: 

u A total of 7,357 contractor rebates were paid through HPwES for completed and approved 

energy audits. Each home that received a $99 home energy audit, also received a direct install 

bag containing 1 low-flow showerhead, 3 low-flow aerators and ten 13 watt compact florescent 

light bulbs. 

u The APS HPwES program paid rebates for measures installed in 2384 participating homes. 

This indicates that 32.4% of homes that completed an audit during the Reporting Period took 

steps to install additional measures as a result of the audit. The total number of customer 

rebates paid was 5,324, which averages about two rebates per home. Specifically, APS has 

paid: 

a. 2,763 duct sealing and repair rebates. 
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b. 373 air sealing only rebates. 

c. 1,722 air sealing and attic insulation rebates. 

d. 466 shade screens rebates. 

u There are currently 71 qualified HPwES contractors. Contractors must complete the Building 

Performance Institute’s Building Analyst certification and undergo a mentorship with the 

Foundation for Senior Living Home Improvements prior to becoming active. HPwES currently 

serves Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Maricopa, Mohave, 

Navajo, Pima, Pinal, Santa Cruz, Yavapai, and Yuma counties. 

u The APS HPwES call center has received 4,990 referral inquires by telephone. 

Evaluation and Monitoring Activities and Results 

u Continued to review and update program Measure Analysis Spreadsheets and Analytic 

Database.Provided guidance on Home Performance components of the program design tool in 

support of the implementation plan. 

u Continued review of program implementation data to support energy model assumptions. 

u Continued billing records analysis to determine potential impacts from audit only participants. 

u Conducted interviews with a sample of Home Performance contractors to refine measure cost 

estimates. 

u Completed metering of HVAC systems for a sample of customers receiving DTR services. 

u Conducted process interviews with program contractors participating in the Financing 

Program. 

MER Adjusted Gross kW and kWh Savings 

1) MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

Incentive Type Number of 

Units

Annual kWh 

Savings per 

Unit

TOTAL 

Annual MWh 

Savings

Est. 

Measure 

Life

Total 

Lifetime 

MWh

Coin. kW 

Demand 

Savings 

Per Unit

Total MW 

Savings

Direct Install Low-Flow 

Showerheads with Shower Start 122 7,357 900 10 9,003 0.003 0.0 

Direct Install Low-Flow Faucet 

Aerators 10 22,071 214 10 2,143 0.000 0.1 

Direct Install CFLs 25 73,570 1,811 6 10,863 0.003 0.2 

HPwES Duct Sealing 1,017 2,763 2,811 18 50,593 1.161 3.2 

HPwES Air Sealing Only 508 373 190 15 2,844 0.178 0.2 

HPwES Air Sealing and Attic 

Insulation 925 1,593 1,722 17 27,073 0.325 0.6 

HPwES Shade Screens 1,310 466 610 10 6,104 0.619 0.3 

TOTAL 8,128 108,322 108,624 4.3 
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In addition to the savings shown above, HPwES does not include a number of market transformation 

efforts, such as contractor training and customer education activities designed to transform the EE 

market. These elements of the program produce additional energy savings and benefits that are not 

quantified. 

Benefits and Net Benefits/Performance Incentive Calculation

MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Problems Encountered and Proposed Solutions 

Measure and evaluation results determined that the initial air tightness of participating homes was 

tighter than the original program baseline had estimated. This is primarily due to the average 

participating home having masonry walls or traditional wood framing and stucco, with the primary 

foundation type being slab on grade. This construction style is tighter than we estimated and thus did 

not yield the air leakage reduction expected. This condition is reflected in the MER result for this 

reporting period. 

To improve the air sealing measure cost effectiveness, APS proposed to set an existing leakiness 

threshold for air sealing rebate eligibility. Effective March 1, 2013, a participating home must have an 

existing leakiness of 16 ACH50 in order to quality for an air sealing incentive. 

Due to measure and evaluation received in early 2012, APS decided not to launch the performance 

based rebate measure for HPwES approve in Commission Decision No. 73089. The funding for this 

measure was shifted to the existing prescriptive measures in the HPwES program. The performance 

based rebate measure will not be included in the 2013 Implementation Plan. 

Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

DSM Program Rebates & 

Incentives

Training & 

Technical 

Assistance

Consumer 

Education

Program 

Implement

Program 

Marketing

Planning & 

Admin.

Program Total 

Cost

HPwES $3,241,436 $42,598 - $1,107,843 $192,800 $137,283 $4,721,960

DSM Program Implementation 

(Contractor) Implementation (APS) Program Implementation

HPwES $1,075,182 $32,661 $1,107,843 

Findings From Research Projects 

Nothing to report during this Reporting Period. 

Other Significant Information

In recognition of the ongoing success of the APS EE program portfolio and the APS Home 

Performance with ENERGY STAR® and ENERGY STAR Homes Programs, APS was selected by the 

U.S. Environmental Protection Agency (“EPA”) as a 2012 ENERGY STAR® Partner of the Year, 

Sustained Excellence Award winner. This is the highest award that can be earned by an ENERGY 
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STAR® partner, and is bestowed on partners who show sustained excellence in their commitment to 

EE and whose organization is a national model of best practices in advancing EE. APS has now 

earned ENERGY STAR® awards for seven consecutive years. 

APS works closely with other utilities in the state to coordinate the delivery of HPwES statewide. In 

2012, APS continued to work closely with Salt River Project as we coordinate program delivery to 

optimize delivery across both electric service territories. During the summer of 2012, APS 

coordinated with Southwest Gas to launch their insulation rebate through the APS HPwES program 

structure. This coordination allowed us to further ensure market consistency, while enhancing the 

customer experience through a joint program delivery. 

HPwES marketing and consumer/contractor education efforts for this Reporting Period include: 

u Distribution of an HPwES brochure through community events, trade allies, contractors, and other 

industry partners. 

u Using the APS call center, we held a call center campaign to promote home energy checkups to 

qualified customer that called during the summer months. 

u Launched a new customer education video on aps.com/checkup and the aps youtube channel. 

u A stand alone website is available at www.azhomeperformance.com. 

u Television ad to promote the program ran on Cox Cable, Fox AZ, Fox Sports, KNXV, KTAZ-TV 

(Telemundo Spanish), Telefutura and Univision (Spanish). 

u Event based marketing with the Suns, Diamondbacks, and several trade shows. 

u Radio ads to promote the HPwES on KMXP, KPKX, KNIX, KSLX, KESZ, KMLE, KOOL, KUPD in 

Phoenix, and sister stations in Coconino and Yavapai counties. 

u Articles in: APS Lifestyles Bill Insert for July and August. 

u Presentations on the APS Residential DSM programs to numerous community groups. Most of 

the consumer education events listed under Consumer Products included information on the 

HPwES and other APS Residential programs. 
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PROGRAM: RESIDENTIAL NEW HOME CONSTRUCTION 

Description 

This program promotes high-efficiency construction practices for new homes. It offers incentives to 

builders that meet the program’s EE standards. The program emphasizes the whole building 

approach to improving EE and includes field testing of homes to ensure performance. Participating 

builders are trained to apply building science principles to assure that high-efficiency homes also 

have superior comfort and performance. The program also provides education for prospective 

homebuyers about the benefits of choosing an energy-efficient home and the features to consider. 

The program takes advantage of the national ENERGY STAR® brand name, and promotes the EPA 

ENERGY STAR® label to prospective homebuyers. To encourage builders to meet the program’s 

high-efficiency standards, APS provides builder incentives of $1,000 per home for ENERGY STAR 

version 3 compliant homes. To encourage builders to meet even higher EE standards, the program 

also offers a second tier incentive of $1,500 per home for builders that meet the higher savings level 

of Home Rating Energy System (“HERS”) 60. 

Program Modifications

Beginning January 1st, 2012 the National ENERGY STAR Homes Program introduce Version 3, 

which increases that minimum efficiency standards for ENERGY STAR certified homes. As approved 

in Commission Decision No. 73089, APS introduced two new builder incentives, replacing the Version 

2 incentives, for Version 3 and a higher tier Version 3 – HERS 60, to align with the changes in the 

national program. 

APS did not receive approval for the new incentives until April 5th, 2012. In an effort to support our 

builder partners, Incentives processed between Jan. 1st and April 4th, 2012 were completed under 

Version 2 incentives approved for the 2011 program year. The change of incentives mid-year is 

reflected in the reporting for this period. 

Program modifications for 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

The program objective is to increase the penetration of homes built to high-efficiency standards. The 

rationale for this program is that Residential new construction in the APS service territory, particularly 

the Phoenix metro area, has historically been one of the biggest drivers of APS’s system load growth. 

It is more cost-effective to work with builders to implement EE at the time of construction rather than 

to attempt to retrofit efficiency after a home has been built. For many new home measures, such as 

building envelope improvements, the benefits of EE upgrades will be sustained for the life of the 

home to produce cost-effective savings. 

APS’s analysis of this program, as filed in the 2012 APS DSM Implementation Plan, estimates that 

the EE savings expected to result from the Residential New Construction Program in 2012 could 
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reduce peak demand by about 3.7 MW, 9,000 MWh annual energy savings, and 180,000 MWh over 

the life of the measures expected to be installed in 2012. 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan.

Levels of Participation

During this Reporting Period, APS signed up 10,452 homes that are committed to being built to 

ENERGY STAR® V3 program standards and to being built to the ENERGY STAR® V3 – HERS 60 

program standards. This growth in signed homes is a strong indicator that new home market is 

beginning to recover. At the end of this Reporting Period, there were 42 homebuilders and 160 

subdivisions currently participating. The program currently includes ENERGY STAR® communities 

throughout the APS service territory including the Phoenix metro area, Yuma, Casa Grande, 

Florence, Prescott, Verde Valley, and Flagstaff. 

APS paid a total of 2,737 homebuilder incentives and 2,015 $50 rater incentives during the reporting 

period. Specifically, APS has paid: 

u 151 ENERGY STAR Home – January – April 2011 

u 571 ENERGY STAR Tier 2 (HERS 70) – January – April 2011 

u 1,913 ENERGY STAR Version 3 

u 102 ENERGY STAR Version 3 – HERS 60 

Since the start of this program in 2006, APS has paid incentives on 12,065 ENERGY STAR® homes. 

During this Reporting Period, APS held 5 builder trainings. The training, called “Success with 

ENERGY STAR®”, teaches builders and their subcontractors about techniques for improving 

construction details that impact efficiency and that allow the home to pass ENERGY STAR®

inspections. The training includes detailed customized construction photos and process checklists to 

ensure implementation accuracy at the job site. In addition, APS provided sales training and/or 

technical training assistance to numerous Arizona builders during this Reporting Period. 

Evaluation and Monitoring Activities and Results 

u Continued to review and update Residential New Construction Measure Analysis 

Spreadsheets and Analytic Database. 

u Provided guidance on the Residential New Construction components of the program design 

tool in support of the implementation plan. 

u Assessed impact of new building code adoptions across all APS jurisdictions on energy 

consumption of non-participant homes.
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MER Adjusted Gross kW and kWh Savings

Measure # of Homes 

Completed

Annual kWh 

Savings per 

Home

Total Annual 

MWh Savings

Est. Measure 

Life (yrs.)

Total 

Lifetime 

MWh

kW 

Demand 

Savings 

Per Home

Total MW 

Savings

APS ENERGY 

STAR Homes (Jan. -

Apr.)

151 2,922.28 441 20 8,825 2.4 0.4

Second Tier - 

HERS 70 (Jan. - 

Apr.)

571 4,828.40 2,757 20 55,140 2.5 1.5

APS ENERGY 

STAR HOMES V3

1,913 5,301.72 10,142 20 202,844 2.9 5.6

APS ENERGY 

STAR HOMES V3 - 

HERS 60

102 6,487.68 662 20 13,235 3.1 0.3

TOTAL 2,737 14,002 280,044 7.7

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

In addition, program consumer education and homebuilder training efforts produce significant 

additional energy savings and benefits that are not quantified here. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Problems Encountered and Proposed Solutions 

Nothing to report during this Reporting Period. 

Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

Incentives 

Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implementation 

Program 

Marketing 

Planning 

& Admin. 

Program 

Total Cost 

Res. New Home 

Construction $2,762,550 $77,795 $0 $447,945 $204,717 $132,073 $6,625,080 

DSM Program Implementation 

(Contractor)

Implementation 

(APS) Program Implementation

Res. New Home Construction $0 $447,945 $447,945 

During the Reporting Period, participation in the Res. New Construction program was higher than 

expected, resulting in the program exceeding the budget for the 2012 program year. To 

accommodate an unexpected level of participation in the Res. New Construction program, APS 

shifted addition budget from the Res. Exiting HVAC program. 
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Findings From Research Projects 

No findings to report at this time. 

Other Significant Information 

In recognition of the ongoing success of the APS EE program portfolio and the APS ENERGY STAR®

Homes and Home Performance with ENERGY STAR Programs, APS was selected by the U.S. EPA 

as a 2012 ENERGY STAR® Partner of the Year, Sustained Excellence Award winner. This is the 

highest award that can be earned by an ENERGY STAR® partner, and is bestowed on partners who 

show sustained excellence in their commitment to EE and whose organization is a national model of 

best practices in advancing EE. APS has now earned ENERGY STAR® awards for seven 

consecutive years. 

In a 2012 report released by the U.S. Environmental Protection Agency, Arizona was identified as 

having the greatest market share in the country for ENERGY STAR Certified new homes. This metric 

reflect the success of the APS ENERGY STAR Homes program and the strength of you builder and 

rater partners. 

In September, APS was the presenting sponsor and key contributor to the national Energy Efficient 

Building Alliance conference, held in Scottsdale. APS brought in trainers from the ENERGY STAR 

homes program staff and Advanced Energy to develop and present specific ENERGY STAR breakout 

sessions for builders, including “Success with ENERGY STAR ,” “Success with Cathedralized Attics,” 

“HVAC for ENERGY STAR V 3.0,” and “Why ENERGY STAR.” APS also coordinated and helped 

present workshops on green appraisals, building codes and more. The event was attended by many 

local and regional builders - APS provided partial scholarships for 24 participating ENERGY STAR 

builders. 

In April 2012, APS official launched a new program database as provided by Pivotal Energy 

Solutions. With this new database, raters can now directly submit the more robust ENERGY STAR 

Version 3 compliance documentation through an online portal. This new software will improve 

incentive processing efficiency, provide better reporting capabilities, and collect more comprehensive 

data on participating homes. APS is currently working on extending the user functionality beyond 

raters, to our builder partners. 

Program marketing and education efforts during this Reporting Period include the following: 

 

u Television – APS developed and aired a new ENERGY STAR homes TV ad in 2012. The ad 

aired on local news and sports broadcasts, including Phoenix Suns NBA games and Arizona 

Diamondbacks baseball games. The simple ad touts the energy savings and benefits of 

ENERGY STAR homes. 

u Direct mail – Monthly ‘New Homes’ flyer sent to targeted zip codes lists all participating APS 

ENERGY STAR homebuilders and communities. 
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u Bill inserts/newsletter articles – APS featured articles about ENERGY STAR homes in the 

March, April, June and September issues of the ‘Lifestyles’ newsletter sent to APS residential 

customers. 

u Realtor publication – Monthly publication lists all new home communities and homes for sale 

in the metro Phoenix area. APS advertising includes banner ads highlighting all participating 

ENERGY STAR communities. 

u 2012 Homebuilders Association member directory - the back cover ad to promote the APS 

ENERGY STAR® Home program to builders 

u Provided sales agent training for APS ENERGY STAR® Home builder sales staff 

u Distributed APS ENERGY STAR® Home program sales book for builder sales agents to 

use in selling the features of ENERGY STAR® Homes to prospective homebuyers. 

u Distributed Energy cost brochures – customized point of sale brochures that describe APS 

ENERGY STAR® Homes features and outline the approximate annual and monthly energy 

costs per model. 

u Distributed a homebuyer brochure that is targeted to new buyers and discusses the features 

and benefits of an ENERGY STAR® home. The brochures are being distributed at community 

events and at participating builders’ model home sales offices. 

u Construction Corner at aps.com – web pages targeted to Arizona homebuilders. Features 

promotion of program benefits for builders. 
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PROGRAM: CONSUMER PRODUCTS PROGRAM 

Description 

The Consumer Products Program is composed of two components – Residential Lighting and 

Residential Pool Products. 

The Residential Lighting element of the program promotes high-efficiency EPA/DOE ENERGY 

STAR® CFLs. CFLs use an average of 75% less energy than standard incandescent bulbs and last 

up to ten times longer, typically saving consumers up to $40 in energy costs over the life of each bulb. 

The program offers discounts on CFLs through cooperative agreements with retailers and lighting 

manufacturers. This provides consumers with reduced retail prices for CFLs at local lighting retailers, 

with prices typically at or below $0.99 per bulb for standard 60 watt equivalent CFLs. 

The Energy-Efficient Pool Pump and Timer element of the Consumer Products program is designed 

to improve the EE in Residential pool operations while maintaining equivalent or better standards for 

pool sanitation and cleanliness. The program promotes the installation and optimal calibration of 

energy-efficient variable -speed pool pump motors and seasonal timers with rebates ranging from $75 

to $270. 

Program Modifications 

A.R.S. § 44-1375 (“Title 44”) includes Arizona legislation that went into effect on January 1, 2012 

which mandates that pool pumps sold in Arizona must have a minimum of two speeds with an 

accompanying controller capable of toggling between speeds, thereby eliminating the sale of singlespeed pool pumps as primary filtration systems on standard pools. As a result, it was not necessary 

to continue to rebate dual speed pool pumps since that is now the minimum required to be compliant 

with the statute. 

Another modification to one of the measures within the Pool Pump and Timer program proposed 

during this Reporting Period was to suspend offering $75 rebates on seasonal timers. After the 

issuance of Commission Decision No. 73809, the only company which manufactured the “seasonally 

adjusted” Pool Timers as part of APS’s Consumer Products Program went out of business. This has 

left the market without a widely distributed product that meets the current APS program guidelines, 

and consequently program participation in 2012 was very low with only seven units rebated to 

customers. Therefore, sufficient participation data was not available to conduct research regarding 

the cost effectiveness of the measure. 

Because there are currently no opportunities for customers to purchase qualifying timers, APS has 

proposed not including pool timers as an eligible measure for 2013. If a new product becomes 

available which meets APS’s program guidelines, APS may seek to reinstate the measure as part of 

a future DSM Implementation Plan filing. 

Program modifications for 2013, where applicable, are included in APS’s 2013 Implementation Plan. 
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Program Goals, Objectives and Savings Targets 

For the CFL element of the program, the goal is to promote the purchase of high-efficiency CFLs and 

increase the awareness and knowledge of retailers and consumers on the benefits of ENERGY 

STAR® rated lighting products.

For the energy-efficient pools element of the program, the goal is to promote the purchase of highefficiency variable-speed pool pumps and seasonal pool timers. In a typical Arizona home with a 

pool, the pool pump energy use can make up a significant portion of annual energy use, often second 

after heating and cooling costs. 

APS’s analysis of the overall Consumer Products program, including both the CFL and pools 

elements of the program, estimates that the EE savings expected to result from the program could 

reduce peak demand by about 13.0 MW and reduce energy consumption by 696,000 MWh over the 

life of the measures expected to be installed in 2012. 

Programs or Measures Terminated

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Levels of Participation

During this Reporting Period, the energy-efficient lighting element of the program resulted in sales of 

2,651,802 CFLs through participating retail locations. In addition, APS distributed 121,579 CFLs 

during community events and consumer education seminars, for a combined total of 2,773,381 CFLs 

distributed during 2012. There were also approximately 325 retail outlets participating throughout the 

APS service territory where APS customers could purchase discounted CFLs. Participating retailers 

during this Reporting Period included: 99 Cents, Ace Hardware, Batteries Plus, Big Lots, Costco, 

Dollar Tree, Goodwill Industries, Home Depot, Lighting Unlimited, Lowe’s, Sam’s Club, True Value, 

and Wal-Mart. 

The pool pump and timers element of the program received approval in January, 2010. The program 

currently includes 213 participating pool retailers, distributors, and pool builders. During this 

Reporting Period, a number of pump calibration training seminars were held with a total of more than 

83 pool professionals trained. In addition, program representatives attended pool industry 

association meetings and conducted retail visits to inform pool professionals about the APS rebate 

program. 

During this Reporting Period, the program provided rebates for 3,858 variable speed pool pumps, and 

7 seasonal pool timers. 

 
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MER Adjusted Gross kW and kWh Savings for CFL’s 

Units 

Units In 

Service In 

APS Service 

Region 

Watts 

Lighting 

Watts/Bulb 

Saved 

HVAC 

Watts/Bulb 

Saved 

Hours 

per year 

Estimated 

Life (yrs) 

Annual Gross 

MWh 

Savings 

Lifetime 

Gross MWh 

Savings 

Annual kW 

Demand 

Savings 

135 114 7 18 5 876 7 2 14 0 

77 65 9 31 9 876 7 2 14 0 

6,718 5669 9 31 9 876 7 170 1188 14 

6,571 5545 9 31 9 876 7 166 1162 13 

61,523 51916 9 31 9 876 7 1554 10875 126 

803 678 9 31 9 876 7 20 142 2 

1,428 1205 9 31 9 876 7 36 252 3 

36,347 30671 10 30 9 876 7 888 6218 72 

4,902 4137 10 30 9 876 7 120 839 10 

2,363 1994 11 29 9 876 7 56 391 5 

3,814 3218 11 29 9 876 7 90 631 7 

14,558 12285 11 29 9 876 7 344 2407 28 

212 179 11 29 9 876 7 5 35 0 

2,337 1972 11 39 12 876 7 74 520 6 

11,147 9406 11 29 9 876 7 263 1843 21 

1,484 1252 11 39 12 876 7 47 330 4 

4,608 3888 12 48 15 876 7 180 1261 15 

810,650 684059 13 47 14 876 7 31037 217258 2514 

2,342 1976 13 47 14 876 7 90 628 7 

2,047 1727 14 46 14 876 7 77 537 6 

51,805 43715 14 46 14 876 7 1941 13589 157 

19,334 16315 14 51 15 876 7 803 5623 65 

14,990 12649 14 46 14 876 7 562 3932 45 

6,108 5154 14 36 11 876 7 179 1254 15 

7,310 6168 14 51 15 876 7 304 2126 25 

628,457 530317 14 46 14 876 7 23549 164846 1907 

3,420 2886 14 46 14 876 7 128 897 10 

3,456 2916 14 46 14 876 7 130 907 10 

2,370 2000 14 46 14 876 7 89 622 7 

255 215 14 36 11 876 7 7 52 1 

354 299 14 46 14 876 7 13 93 1 

5,423 4576 14 46 14 876 7 203 1422 16 

1,372 1158 14 51 15 876 7 57 399 5 

527 445 14 46 14 876 7 20 138 2 

4,798 4049 15 45 14 876 7 176 1231 14 

3,546 2992 15 45 14 876 7 130 910 11 

2,088 1762 15 45 14 876 7 77 536 6 

100,197 84550 15 50 15 876 7 4081 28567 331 

2,893 2441 15 50 15 876 7 118 825 10 

3,082 2601 15 45 14 876 7 113 791 9 
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Units 

Units In 

Service In 

APS Service 

Region 

Watts 

Lighting 

Watts/Bulb 

Saved 

HVAC 

Watts/Bulb 

Saved 

Hours 

per year 

Estimated 

Life (yrs) 

Annual Gross 

MWh 

Savings 

Lifetime 

Gross MWh 

Savings 

Annual kW 

Demand 

Savings 

179 151 15 45 14 876 7 7 46 1 

1 1 15 35 11 876 7 0 0 0 

14 12 15 35 11 876 7 0 3 0 

16,148 13626 15 45 14 876 7 592 4144 48 

105,622 89128 15 50 15 876 7 4302 30114 348 

1,024 864 15 50 15 876 7 42 292 3 

3 3 16 49 15 876 7 0 1 0 

1,056 891 16 49 15 876 7 42 295 3 

39 33 16 49 15 876 7 2 11 0 

497 419 16 44 13 876 7 18 125 1 

617 521 18 57 17 876 7 29 201 2 

145,894 123111 18 57 17 876 7 6774 47419 549 

3,355 2831 18 57 17 876 7 156 1090 13 

90 76 18 52 16 876 7 4 27 0 

22,992 19402 18 57 17 876 7 1068 7473 86 

104,574 88244 18 57 17 876 7 4856 33989 393 

170 143 19 56 17 876 7 8 54 1 

101,112 85322 19 56 17 876 7 4613 32288 374 

2,174 1835 19 56 17 876 7 99 694 8 

210 177 19 56 17 876 7 10 67 1 

1,887 1592 20 55 17 876 7 85 592 7 

605 511 20 55 17 876 7 27 190 2 

35,970 30353 20 55 17 876 7 1612 11281 131 

10,918 9213 20 70 21 876 7 623 4358 50 

5,056 4266 23 67 20 876 7 276 1932 22 

62 52 23 97 29 876 7 5 34 0 

6,708 5660 23 52 16 876 7 284 1989 23 

5,567 4698 23 67 20 876 7 304 2127 25 

3,434 2898 23 97 29 876 7 271 1899 22 

4,142 3495 23 97 29 876 7 327 2291 27 

233,483 197022 23 67 20 876 7 12743 89202 1032 

70 59 23 67 20 876 7 4 27 0 

46 39 23 67 20 876 7 3 18 0 

16,627 14031 23 67 20 876 7 907 6352 73 

4 3 23 52 16 876 7 0 1 0 

416 351 23 67 20 876 7 23 159 2 

2,720 2295 23 77 23 876 7 171 1194 14 

1,140 962 23 97 29 876 7 90 631 7 

24 20 25 75 23 876 7 1 10 0 

5,721 4828 26 64 19 876 7 298 2088 24 

691 583 26 64 19 876 7 36 252 3 
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JANUARY THROUGH DECEMBER 2012

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Units 

Units In 

Service In 

APS Service 

Region 

Watts 

Lighting 

Watts/Bulb 

Saved 

HVAC 

Watts/Bulb 

Saved 

Hours 

per year 

Estimated 

Life (yrs) 

Annual Gross 

MWh 

Savings 

Lifetime 

Gross MWh 

Savings 

Annual kW 

Demand 

Savings 

324 273 26 64 19 876 7 17 118 1 

70,666 59631 26 64 19 876 7 3684 25789 298 

187 158 26 64 19 876 7 10 68 1 

256 216 26 64 19 876 7 13 93 1 

2,748 2319 26 64 19 876 7 143 1003 12 

52 44 27 93 28 876 7 4 28 0 

3,174 2678 27 63 19 876 7 163 1140 13 

89 75 27 98 30 876 7 7 50 1 

278 235 27 98 30 876 7 22 155 2 

39 33 29 121 37 876 7 4 27 0 

62 52 30 95 29 876 7 5 34 0 

10,467 8832 31 94 28 876 7 801 5610 65 

2,241 1891 32 118 36 876 7 215 1508 17 

2,146 1811 32 118 36 876 7 206 1444 17 

218 184 32 118 36 876 7 21 147 2 

1,134 957 32 118 36 876 7 109 763 9 

80 68 33 117 35 876 7 8 53 1 

10 8 40 110 33 876 7 1 6 0 

17 14 40 160 48 876 7 2 16 0 

1,973 1665 42 108 33 876 7 174 1215 14 

307 259 55 145 44 876 7 36 254 3 

2,773,381 

 

2,340,290 

 

114,254 

 

799,781 

 

9,253 

 

Line 

Losses 7% 7% 11.7% 

Capacity 

Reserve 15% 

TOTAL 

 

122,252 

 

855,766 

 

11,724 

 

In Service 

bulbs 14,527 0 1,480 

TOTAL 136,779 

 

855,766 

 

13,204 

MER Adjusted Gross kW and kWh Savings for Pools Measures

The program provided the following rebates to participating APS Residential customers during this 

Reporting Period. 

Measure # Units

kW 

Demand 

Savings 

per unit

kWh 

Energy 

Savings 

per unit

Measure 

Life 

(yrs.)

Total 

Annual 

MWh

Total 

Lifetime 

MWh

Total kW 

Demand

Variable Speed 

Pump 3,858 0.44 1,552 10 5,988 59,876 1,698 

Timers 7 0.15 1,080 10 8 76 1 

Total 3,865 5,995 59,952 1,699 

MER savings are adjusted for line losses (Energy 7.0%, Demand 11.7%) and a capacity reserve factor of 15%. 
ARIZONA PUBLIC SERVICE COMPANY 

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Total savings from the Consumer Products Program during this Reporting Period are shown in the 

table below.

Measure Total Annual MWh Total Lifetime MWh Total kW Demand

CFLs 136,779 855,766 13,204 

Pools 5,995 59,952 1,699 

TOTAL 142,774 915,718 14,903 

Evaluation and Monitoring Activities and Results 

u Continued to review and update CFL, Pool Pump, and Seasonal Pool Timer Measure Analysis 

Spreadsheets and Analytic Database. 

u Provided guidance on Consumer Products Program components in the design tool to support 

the implementation plan. 

u Developed savings and cost assumptions for new Light Emitting Diode (“LED) and 2x 

Incandescent measure offerings. 

u Continued field metering of power consumption and runtime behavior of residential pool 

pumps, including single, dual and variable speed pumps. 

u Conducted mystery shopping study to investigate program promotion and effects of Title 44 on 

sales of single, dual and variable speed pumps. 

u Planned Focus Group of pool technicians to identify impacts of training on calibration of 

program variable speed pumps. 

u Continued research to determine net-to-gross effects and market influence for pool 

components of the program. 

Benefits and Net Benefits/Performance Incentive Calculation 

The MER adjusted net benefits and performance incentive are provided in Tables 8, and 9. 

Problems Encountered and Proposed Solutions

No problems were encountered during this Reporting Period. 

 
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JANUARY THROUGH DECEMBER 2012

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Costs Incurred

Costs incurred for this program during this Reporting Period are listed below. 

DSM 

Program 

Rebates & 

Incentives 

Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implementation 

Program 

Marketing 

Planning 

& Admin. Total Cost 

CFLs $3,712,097 $0 ($20,000) $1,849,496 $241,558 $309,843 $6,092,994 

Pools $1,004,214 $37 $0 $597,107 $34,632 $79,085 $1,715,074 

Consumer 

Products 

Total 

$4,716,311 $37 ($20,000) $2,446,603 $276,190 $388,928 $7,808,068 

Note: The table above reflects a budget report discrepancy of $145,614 from the marketing category that should have been shifted into 

the Implementation category. If cross-referenced to work papers, the category totals for both Implementation and Marketing – in the 

work papers - will show different totals equal to the $145,614 discrepancy. This Implementation charge was mistakenly entered into our 

Accounting system as a Marketing expense. The tables above reflect correct category numbers. 

DSM Program Implementation 

(Contractor)

Implementation 

(APS) Program Implementation

CFLs $1,712,718 $136,778 $1,849,496 

Pools $581,259 $15,848 $597,107 

Consumer Products Total $2,293,977 $152,626 $2,446,603 

Findings from Research Projects

Nothing to report for this Reporting Period. 

Other Significant Information

APS continued a CFL recycling program in partnership with participating retailers and Veolia 

Environmental Services, which operates a recycling facility in Phoenix. Customers can take their 

burned out CFLs to participating retail locations (including select Ace, True Value and Home Depot 

stores) throughout the APS service territory for free recycling. Retailers collect the CFLs and then 

send them to Veolia, where more than 99% of all materials, including the trace amounts of mercury in 

CFLs, are reused. 

The program conducted retailer visits and retailer trainings during the Reporting Period to educate 

retail sales staff, assess inventories of merchandise, check point of purchase displays, address 

availability of qualified product, and communicate with retail sales staff. 

In addition to the bulb sales at retail locations, APS has purchased a supply of CFLs to use for the 

low income program and for customer education and awareness building purposes. APS uses these 

bulbs for direct installation through the APS Low Income Weatherization program (two bulbs provided 

for each home that is weatherized) and to hand out at local community events and other opportunities 

to educate the public about CFLs. 

APS conducted 183 community education and customer outreach events during this reporting period 

to promote the CFL program and educate customers about APS programs, rebates, and opportunities 

for saving energy and money. For a comprehensive list of events and dates, please refer to the workpapers provided to ACC Staff. 
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JANUARY THROUGH DECEMBER 2012

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Advertising and article placements for the CFL program element included the following: 

u Ran TV spots featuring CFL program messages on Cox Cable, local sports broadcasts 

(Diamondbacks, Suns) and KNXV TV. 

u Maintained a tool on aps.com called the “CFL Calculator.” 

www.aps.com/main/various/CFL/calculator.html?source=hme. The tool provides customers 

with a way to enter all of the light fixtures in their home and see the savings in dollars and 

greenhouse gas emissions they could achieve by switching to CFLs. The calculator provides 

recommendations for which type of CFL should be used to replace each bulb in a home and 

then the tool will print out a custom shopping list for customers to use to purchase exactly the 

bulbs they need at the store. 

u CFL radio spots aired on local sports broadcasts and local news talk radio. 

u Information on the homepage of aps.com including a listing of all participating retail locations 

and a retail locator function that shows that closest stores for any customer throughout the 

service area based on entering a zip code. 

u Public relations and earned media including TV, radio and print articles. 

u Articles in the Lifestyles Residential newsletter. 

u Point of sale signage at all participating retail locations. 

In addition, the program conducted a wide range of marketing and advertising activities to raise 

awareness about the pools element of the program including: 

u Provided program brochure for consumers. 

u Maintained program web pages on aps.com including basic information about the program, 

online application forms, video content, answers to frequently asked questions, and a list of all 

participating pool retailers and professionals. 

u Produced collateral for in-store point-of-sale materials, including many different styles and 

sizes of in-store signage. 

u Conducted a summer campaign with the APS call center to inform associates about energy 

efficient pool pumps and provide them with a letter that they could send to prospective 

customers with pools who were interested in the pools program.
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JANUARY THROUGH DECEMBER 2012

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PROGRAM: REFRIGERATOR RECYCLING PROGRAM 

Description 

The program is designed to educate APS customers that their old, operating, extra refrigerator or 

freezer uses a great deal of energy and that by turning it in, they can save up to $100 per year on 

their electric bill. Many refrigerators and freezers being replaced are still functioning and often end up 

as secondary units in basements and garages, or are sold in the used appliance market. This 

program provides customers an incentive to remove their old, inefficient appliances from the grid. 

APS customers with an old operating extra refrigerator can receive a $30 rebate with free pick up 

service at the customers’ convenience that can be scheduled either online at aps.com/turnitin or by 

calling toll free 877-514-6654. APS partners with JACO Environmental, Inc. to provide the free pick 

up and recycling service. 

The APS Refrigerator Recycling Program began on February 1, 2010. This program was approved 

by Decision No. 71444, December 23, 2009. The primary focus for 2012 has been on program 

awareness and marketing. The marketing strategy emphasizes education to the customer about the 

inefficiency of their second working refrigerator or freezer, the $30 rebate, and the free pickup service 

provided. 

As a result of creating this program, a recycling facility has been established in Phoenix where up to 

95% of appliance elements are recycled and used to manufacture other products. Additionally, 20 

new “green” jobs have been created to staff and operate the new recycling facility. During the 

recycling process, JACO Environmental safely disposes of all refrigerators and freezers preventing 

the release of hazardous chemicals into the environment. 

Program Eligibility Requirements: 

u Must be a current APS customer and the unit must be owned by customer. 

u Refrigerator/freezer must be operable (maintain a cold temperature). 

u Refrigerator/freezer must be plugged in (cold inside) and empty. 

u Refrigerator/freezer must be a standard size (between 10 – 30 cubic feet). 

u There must be a clear pathway to pick up and remove appliance. 

u There is a maximum of two units per household per year. 

u Someone 18 years or older must be present to sign and release unit. 

Program Modifications 

No program or measures were modified during this Reporting Period. Program modifications for 

2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

The program objective is to educate APS customers that their second, older, working refrigerator or 

freezer in the garage or laundry room is costing them an additional $100 per year in energy costs to 
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JANUARY THROUGH DECEMBER 2012

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operate. Refrigerators and freezers today are much more energy-efficient than models built prior to 

1993,and models sold today use about 1/3 the energy of older units. 

The 2012 program goal was to recycle 9,700 units with approximately 14,700 MWhs saved. In this 

reporting period, 9,464 units were recycled resulting in EE savings that reduce peak demand by 

approximately 2.1 MWs and saving 71,241 lifetime MWhs. 

Programs or Measures Terminated 

No programs/measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan.

Levels of Participation 

During this Reporting Period, APS recycled 9,464 refrigerators and freezers, and paid $284,002 in 

incentives to customers. Units were picked up across APS’s service territory statewide. Year-end 

volume totals came in at 98% of target, which was very close to the 9,700 unit goal. 

JACO Environmental entered into a partnership with Sears in November 2010. The purpose of the 

agreement was to add value and convenience to customers when they purchase a new refrigerator or 

freezer. At the point of sale, the customer will receive a special sticker to place on their old unit 

providing the ability to track APS retail units separately. 

Upon delivery of a new refrigerator or freezer, Sears will pick up the customer’s old (now secondary) 

appliance, saving them the hassle of making another appointment to schedule a refrigerator recycling 

pickup. This ensures that the old unit does not end up in the secondary market, or a garage or 

laundry room plugged in. The customer receives the $30 rebate from JACO through normal 

operating channels. These units are taken to a Sears containment facility where JACO picks up the 

stickered refrigerators and freezers once a week for recycling and processing. During this Reporting 

Period, APS recycled 674 units picked up through Sears. 

 

Evaluation and Monitoring Activities and Results 

u Continued to review and update program Measure Analysis Spreadsheets and the Analytic 

Database. 

u Provided guidance on Appliance Recycling Program components in the design tool to support 

the implementation plan. 

u Continued review of the implementation program tracking database. 

u Completed research to determine customer satisfaction, hours of use, and process 

improvements. 

 
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MER Adjusted Gross kW and kWh Savings 

Program

Number of 

Units 

Recycled

Annual kWh 

Savings Per 

Unit

TOTAL 

Annual MWh 

Savings

Est. 

Measure 

Life (yrs.)

TOTAL 

Lifetime 

MWh

Coin. kW 

Demand 

Savings 

Per Unit

TOTAL 

MW 

Savings

Refrigerators 8,375 1,289 10,795 6 64,772 0.2 1.8

Freezers 1089 990 1,078 6 6,469 0.2 0.2

TOTAL 9,464 11,873 71,241 2.1

MER savings are adjusted for line losses (Energy 7.0%, Demand 11.7%) and a capacity reserve factor of 15%. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5, and 6. 

Problems Encountered and Proposed Solutions 

During this Reporting Period, the program has been implemented efficiently through JACO 

Environmental, the implementation contractor. No problems were encountered during this Reporting 

Period. 

 

Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

DSM 

Program Incentives 

Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implementation 

Program 

Marketing 

Planning 

& Admin. 

Program 

Total Cost 

APS 

Refrigerator 

Recycling 

$284,002 $0 $0 $757,111 $98,683 $58,782 $1,198,578 

DSM Program Implementation 

(Contractor)

Implementation 

 (APS)

Program Implementation

Refrigerator Recycling $742,924 $14,187 $757,111 

Commission Decision No. 73089, requires APS to report spending for non-EE measures in the 

Appliance Recycling Program. There were no non-EE measures or associated spending in this 

program during this Reporting Period. 

Findings from Research Projects 

No findings to report at this time. 

Other Significant Information 

u Program marketing efforts during this Reporting Period include the following: 

o Bill inserts 

o Newsletter articles 

o E-mail newsletters 

o Radio advertising (English/Spanish) 
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o Messaging on Telemundo and Univision 

o Call Center marketing campaign 

. 

u Based on customer feedback, APS has developed and implemented a process that provides 

customers the option to donate their $30 refrigerator recycling rebate to The Salvation Army’s 

Project S.H.A.R.E. (Service to Help Arizonans with Relief on Energy). On average, 4% of 

participating customers (341 customers) donated their rebates for a total of $10,230 donated 

to the Salvation Army in 2012 from this program. 

 
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PROGRAM: BEHAVIORAL PROGRAM

Description 

The Residential Conservation Behavior Pilot Program provides participating Residential customers 

with bi-monthly reports containing information designed to motivate them to change their energy 

usage behavior to save energy. 

To drive conservation behavior, this program direct mails comparative Home Energy Reports to Pilot 

participants that show how the energy usage in that customer’s home compares with similar homes. 

Coupled with the comparison data, customers receive recommendations for specific and targeted 

actions they can take to save energy. 

Derived from best practices in behavioral science research, this program uses the power of normative 

messaging to successfully engage and motivate conservation actions of targeted individuals. 

Comparing an individual’s energy use to what is “normal” has proven to be an effective mechanism to 

attract attention and motivate action. Normative messaging on energy use, combined with 

recommendations on how to improve, is the basis of the concept for the Conservation Behavior 

program. The program provides a benchmark for customers to achieve, and instills a sense of 

competition to produce sustained conservation behaviors. 

Program Modifications

There were no program modifications to report this Reporting Period. 

In 2013, APS plans to change all similar home language reports to neighbor language to increase 

program saving’s potential by as much as 0.5% with no additional cost and minimal impact to report 

recipients. Program modifications for 2013, where applicable, are included in APS’s 2013 

Implementation Plan. 

Program Goals, Objectives and Savings Targets 

The goal of this Program is to use scientifically proven normative messaging techniques to motivate 

Program participants to save energy by changing their energy use behavior. 

APS’s 2012 DSM Implementation Plan estimated that the EE savings from the Behavioral Program 

could reduce peak demand by approximately 4.3 MW and save 31,000 annual MWh. Actual results 

indicate 3.9 MW and 23,543 MWh saved in this Reporting Period. 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan.
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Levels of Participation

The 2012 program targeted 80,000 Residential (both single and multi-family) customers with a control 

group of an additional 40,000 customers. Customers were able to “opt out” of the program at any 

time. 

Three hundred eighty three (383) participants have opted out of the program in 2012. 

Evaluation and Monitoring Activities and Results 

u Continued to review and update program Measure Analysis Spreadsheets and Analytic 

Database. 

u Provided guidance on Residential Behavior components of program design tool in 

implementation plan. 

u Continued analysis of hourly interval consumption data to determine coincident demand 

impacts from program participants. 

u Reviewed model employed by implementation contractor to assess accuracy and 

reasonableness of model outputs. 

u Conducted benefit-cost analysis for residential behavioral program. 

MER Adjusted Gross kW and kWh Savings 

Program

Number of 

Participants

Annual 

kWh 

Savings 

Per Unit

Total 

Annual 

MWh 

Savings

Est. 

Measure 

Life 

(yrs.)

TOTAL 

Lifetime 

MWh

Coin. kW 

Demand 

Savings 

Per Unit

TOTAL 

MW 

Savings

Conservation 

Behavior 77,900 302 23,543 1 23,543 0.05 3.9

MER savings are adjusted for line losses (Energy 7.0%, Demand 11.7%) and a capacity reserve factor of 15%. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Problems Encountered and Proposed Solutions 

There have been no problems encountered with implementation of this Program during the Reporting 

Period. 

 
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Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

DSM 

Program Incentives 

Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implementation 

Program 

Marketing 

Planning 

& Admin. 

Program 

Total Cost 

Conservation 

Behavior $0 $0 $0 $816,653 $0 $54,743 $871,396 

DSM Program Implementation 

(Contractor)

Implementation 

(APS)

Program 

Implementation

Conservation 

Behavior $812,635 $4,018 $816,653 

Findings from Research Projects 

A detailed measurement, evaluation and research report titled “Demand Side Management 

Residential Conservation Behavior Pilot Program” was filed on October 1, 2012. This report details all 

of the evaluation and monitoring activities conducted on this Program in this Reporting Period. 

Other Significant Information: 

In addition to conservation behavior savings, one of the key benefits of this program is that it offers a 

great vehicle for promoting the wide array of APS rebate programs in the tips offered on each report. 

Marketing and Communications: 

Outside of the direct mailed reports and the portal, there are no additional marketing or 

communications to customers in this program. 

 
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PROGRAM: MULTIFAMILY ENERGY-EFFICIENCY PROGRAM 

Description 

The Multifamily Energy Efficiency Program (“MEEP”) is a program that encourages EE improvements 

in multifamily complexes within the APS service territory. The MEEP received ACC approval on 

January 6, 2012 in Decision No. 72060. 

MEEP uses a three-track approach to promote EE within the multifamily market segment. 

u Track 1 provides free direct install components to retrofit the Residential dwellings of 

existing communities. Participating communities will receive enough CFLs, low flow 

showerheads, and faucet aerators to retrofit every community dwelling. Facility personnel, 

with implementation contractor field support, will conduct all direct install installations. 

u Track 2 will utilize APS Solutions for Business programs to provide complementary 

energy assessments of the community commercial facilities. The energy assessment will 

identify opportunities for additional EE savings and the applicable Solutions for Business 

incentives that are available. 

u Track 3 targets new construction and major renovation multifamily projects. This track 

builds from the success of the APS ENERGY STAR® Homes program and encourages 

energy efficient building principles by paying an incentive to builders on a per unit basis 

for following a list of EE measures outlined in one of four builder option packages 

(“BOP”). 

u Larger incentives are offered for achieving increasingly higher levels of EE. 

Program Modifications 

A redesigned MEEP new construction program was introduced in 2012. The redesign included a new 

BOP structure that featured a prescriptive path with both mandatory and optional measures as well as 

a performance path that utilizes Home Energy Rating System (HERS) Scores to achieve compliance. 

The new BOPs and compliance paths were designed to provide builders and developers flexibility in 

meeting program requirements. Program modifications for 2013, where applicable, are included in 

APS’s 2013 Implementation Plan. 

Program Objectives, Goals and Savings Targets 

The MEEP program objectives are to: 

u Reduce peak demand and overall energy consumption in the multifamily housing market 

segment. 

u Promote existing community EE retrofits of both dwelling units and common areas. 

u Promote higher efficiency construction standards in the development of new multifamily 

projects. 
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u Increase overall awareness about the importance and benefits of EE improvements to the 

landlord and property ownership community. 

u Contribute to meeting the energy savings goals in the APS EE program portfolio. 

The MEEP’s 2012 program goal is to enroll 7,329 total participants. This number includes 7,100 

dwelling retrofits and 229 new construction/major renovation dwellings. 

The MEEP 2012 energy savings targets are provided below: 

Annual Coincident Peak Demand Savings* 504 kW 

Annual Energy Savings 5,728 MWh 

Lifetime Energy Savings 49,385 MWh 

*Including line losses and reserve margin

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Levels of Participation 

A total of 39 multifamily properties participated in the direct install program in 2012 totaling 5,533 

apartment dwellings. All totaled 49,924 CFLs, 7,789 faucet aerators, and 4,531 showerheads were 

installed in multifamily dwellings. 

The New Construction/Major renovation program saw three projects participate in 2012. Two new 

construction projects and one major renovation project. A total of 200 units received rebates in 2012. 

Evaluation and Monitoring Activities and Results 

u Continued to review and update the program Measure Analysis Spreadsheets and Analytic 

Database. 

u Provided guidance on MEEP components of the program design tool in support of the 

implementation plan. 

u Continued review of implementation program tracking database. 

u Conducted interviews with participant builders and direct installation participants to assess 

market baselines, evaluate program process and determine net-to-gross effects and market 

influence of the program. 

 
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MER Adjusted Gross kW and kWh Savings 

Incentive Type 

Number 

of Units 

Annual 

kWh 

Savings 

per Unit 

Total 

Annual 

MWh 

Savings 

Est. 

Measure 

Life 

Total 

Lifetime 

MWh 

Coin. 

kW 

Demand 

Savings 

Per Unit 

Total 

Demand 

MW 

Savings 

Showerheads 4,531 467.34 2,118 10 21,175 0.0106 0.05 

Faucet Aerators 7,789 55.47 432 10 4,321 0.0012 0.01 

CFLs 49,924 48.15 2,404 6 14,423 0.0051 0.26 

BOP 1 0 1,565.08 0 14 0 0.5754 0.00 

BOP 2 60 1,905.27 114 14 1,600 0.6025 0.04 

BOP 3 60 2,446.86 147 14 2,055 0.6861 0.04 

BOP Renovation 80 2,072.62 166 14 2,321 0.3866 0.03 

 

Total 62,444 5,380 45,896 0.42 

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 8, and 9. 

Problems Encountered and Proposed Solutions 

Nothing to report this period. 

Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

Rebates & 

Incentives 

Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implement 

Program 

Marketing 

Planning 

& Admin 

Program 

Total Cost 

$314,649 $45 $0 $838,093 $9,337 $108,244 $1,270,368 

DSM Program 

Implementation 

(Contractor) 

Implementation 

(APS) 

Program 

Implementation 

Multifamily EE Program $640,628 $197,465 $838,093 

Findings from Research Projects 

Nothing to report this period. 

Other Significant Information 

MEEP marketing and consumer education efforts for this Reporting Period include: 

u Distribution of a MEEP and MEEP New Construction brochures to customers. 
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u Maintained a presence on aps.com to give customers a point of reference for all program 

information. 

u Provided customer educational leave behind materials promoting EE in all dwellings that were 

retrofitted. 

u MEEP presentations at community events. 

u Hosted a community event for tenants at a MEEP supported newly constructed community. 

Advertising and Marketing Activities 

New Marketing Materials 

u MEEP new construction event poster 

u MEEP new construction project site banners 

u Created large foam board check presentation checks 

Advertising Activities 

u Direct Call outreach was utilized to get program messaging out in the market place and to 

secure many of the program’s participants. 

u Direct mail outreach was used to secure direct install participants. 

Design Incentive 

No Multifamily projects received design incentives in 2012. 

MEEP New Construction Optional Measures Installed 

In Decision No. 73089, APS was directed to report energy savings, coincident demand savings, and 

actual costs for each prescriptive path optional measure selected by Multifamily New construction 

participants. Because all three projects that received rebates in 2012 achieved program compliance 

through the performance path, no prescriptive path optional measures were installed. 

 
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PROGRAM: SHADE TREES PROGRAM

Description 

The Shade Tree program provides free shade trees to APS’s Residential customers that have 

attended an APS Shade Tree workshop or participated in an online training. The program educates 

customers on successful tree planting and care techniques, and provides a customer specific site 

map indicating the ideal tree planting location(s) to help reduce customer cooling needs. Customers 

can qualify to receive between two (homes built after 1980) and three (homes built prior to 1980) free 

shade trees per residence. This program is available to Residential customers in Maricopa County. 

Program Eligibility Requirements: 

u Must be a current APS Residential customer living in Maricopa County. 

u Must be able to plant the trees approximately 15 feet away from the western, eastern or 

southern side of their home. 

u Must have the legal right to plant the trees on the property. 

u Must have the ability to care for the trees as needed. 

u Must attend an APS Shade Tree workshop or receive equivalent training online. 

Program Modifications 

An online delivery model for the program was tested in 2012. A total of 163 customers participated 

online and 315 trees were distributed. Trees were distributed at three fall shade tree workshops. 

Program modifications for 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

The goal of this program is to encourage customers, through education and incentives, to plant shade 

trees in areas near their homes to reduce home cooling needs. 

The program goal was to distribute 5,000 trees in 2012. APS’s 2012 DSM Implementation Plan 

approved by the ACC, in Decision No. 72215, estimated that the EE savings expected to result from 

the Shade Tree Pilot Program could reduce peak demand annually by approximately 0.23 MW and 

save 13,650 MWhs over the life of the measures installed in 2012. 

Programs or Measures Terminated 

No programs/measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan.

Levels of Participation 

A total of 5,237 trees were distributed in 2012 to Maricopa County Residential customers. A total of 

4,922 were distributed using in-person workshops and 315 were distributed through the online 

program. A total of 8 shade tree educational workshops were held throughout the year (4 in the 

Spring and 4 in the Fall) where a total of 2,129 participants were educated. 
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Evaluation and Monitoring Activities and Results 

u Continued to review and update the program Measure Analysis Spreadsheets and Analytic 

Database. 

u Provided guidance on the Shade Tree components of the program design tool to support the 

implementation plan. 

u Performed on-site inspections at program participant properties to determine compliance with 

suggested program planting requirements, and to inform impact analysis. 

u Conducted an on-line survey with program participants to support impact analysis, assess 

customer satisfaction, and identify process improvements. 

MER Adjusted Gross kW and kWh Savings 

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 8, and 9. 

Problems Encountered and Proposed Solutions 

There were no problems encountered with implementation during the Reporting Period. 

Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

DSM 

Program Incentives 

Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implementation 

Program 

Marketing 

Planning 

& 

Admin. 

Program 

Total 

Cost 

Shade Trees $41,546 $0 $1,691 $196,447 $1,027 $23,944 $264,655 

DSM Program Implementation (Contractor) Implementation (APS) Program 

Implementation

Shade Trees $131,316 $65,131 $196,447 

Findings from Research Projects 

A detailed measurement, evaluation and research report titled “Demand Side Management Shade 

Trees Program” was filed with the Commission on May 9, 2012 in Docket No. E-01345A-10-0219 with 

the Commission. 

DSM 

Program 

Number 

of Units 

Annual 

kWh 

Savings 

Per Unit 

TOTAL 

Annual 

MWh 

Savings 

Est. 

Measure 

Life (yrs.) 

TOTAL 

Lifetime 

MWh 

Coin. kW 

Demand 

Savings 

Per Unit 

TOTAL 

MW 

Savings 

Shade Trees 5,237 91 477 30 14,297 0.05 0.24 
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Other Significant Information 

The shade tree education and outreach includes workshop curriculum development that was 

vetted with local arborists with the following designations: 

u International Society of Arboriculture (“ISA”) Certified Arborist 

u ISA Certified Arborist/Utility Specialist 

u ISA Certified Arborist/Municipal Specialist 

Each participant receives the following materials in an educational workshop packet: 

u Aerial photo of his/her home with the ideal EE planting locations highlighted 

u Program participation form 

u Workshop evaluation form 

u Blue Stake Guide 

u Right Tree, Right Place brochure 

u Detailed watering guide published by the Arizona Municipal Water Users Association 

In addition to the materials listed above, additional resources including a copy of the curriculum, tree 

information and helpful links are provided on aps.com. 

Marketing Materials 

u Created instructional video for aps.com and the online training module 

u Created new signage and collaterals to promote Spanish workshops 

u Issued press releases promoting workshops 

Advertising 

u Flyer distributed at local events and communities 

u aps.com 

u Call Center referrals 

u Page one bill message for metro Phoenix zip codes 

u Contractor messaging to their member groups 

u Local area sustainability program newsletter publications 

u Targeted direct mail campaign to limited income customers 
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PROGRAM: ENERGY WISE LOW INCOME WEATHERIZATION

Description 

APS’s Energy Wise Low Income Assistance Program is designed to improve the EE, safety and 

health attributes of homes for customers whose income falls within the defined federal poverty 

guidelines. This program serves low income customers with various home improvements including 

cooling system repair and replacement, insulation, sunscreens, water heaters, window repairs and 

improvements as well as other general repairs. In addition, low income families are provided crisis bill 

assistance. The program is administered by various community action agencies throughout APS’s 

service territory. 

Program Modifications 

No modifications for this Reporting Period. Program modifications for 2013, where applicable, are 

included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives, and Savings Targets

u To improve the EE of homes for customers whose income falls within the defined poverty 

guidelines. 

u To provide customers information on energy management and conservation. 

u To provide assistance in paying the electric bill for qualified customers in crisis situations.

u Decision No. 68647 acknowledged the estimates that the Weatherization component of the 

Energy Wise Program could serve 382 homes per year (based on APS’s annual budget of 

$705,000) and result in reduced energy consumption of 763 MWh per year and a demand 

reduction of 115 kW per year. 

The goals for the APS Energy Wise Low Income Weatherization program specified in APS’s 2012 

DSM Implementation Plan estimates that the EE savings expected to result from the Low Income 

Program could reduce peak demand by about 0.2 MW and 30,000 MWh over the life of the measures 

expected to be installed. 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

 
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Levels of Participation 

A total of 1,474 households received assistance during the Reporting Period. A single household may 

have received more than one type of assistance. 

Type of Assistance Number of Households

Bill Assistance 622 

Health and Safety 0 

Repair and Replace 0 

Weatherization 852 

Total 1,474 

Evaluation and Monitoring Activities and Results 

Weatherization measures must pass the cost effectiveness test that is detailed in the federal 

government's Weatherization Assistance Program (WAP) rules. These rules allow certain prescriptive 

measures, which vary with the climate zone and type of housing construction. Measures not on the 

prescriptive list must be assessed by a computer analysis to determine the economic feasibility. 

The Arizona Governor’s Office of Energy Policy (“GOEP”), with information from APS, is analyzing 

the electric energy used in weatherized homes before and after the weatherization measures are 

implemented. It takes a year of data before the weatherization and another year of data after the 

weatherization to get an accurate gauge of the impact of the measures. As the data base grows over 

time, a more accurate picture of the impact of the weatherization activities will emerge. 

Information from the GOEP report for fiscal year 2012, submitted January 2013 is provided below: 

Utility Bill Analysis 

An analysis of 257 homes has been completed from July 2007 through July 2012, utilizing 

APS, Tucson Electric Power, Unisource Gas and Electric and Southwest Gas utility data. 

This analysis is ongoing, new data will be updated to these values on a quarterly basis. 

Provided are Savings to Investment Ratios (“SIR”) for total investment from all funding 

spent (diagnostics, energy measures and health and safety measures) and for energy 

related measures only (diagnostics and energy measures). 

Assumptions 

Present value is based on 17.5 years measure life, discount rate of 3% and a utility cost 

escalation rate of 3%. 

Results Summary 

The combined SIR of all jobs reviewed to date for funds spent on diagnostics, energy 

measures and health and safety measures was 1.21. Health and Safety represented 16% 

of expenditures. 
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The combined SIR of all jobs reviewed to date for funds spent on energy measures and 

diagnostics was 1.38. 

The average saving per home reviewed was 2,746 kWh and 35 therms of natural gas (gas 

therms average includes all electric homes). 

MER Adjusted Gross kW and kWh Savings 

Of the 1,474 households participating in the program, a total of 852 homes received weatherization 

services that contributed to the energy savings. 

No. of Homes Annual kW Savings Annual kWh Savings Lifetime kWh Savings

852 286 2,503,363 43,808,860

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

The kW factor used to calculate the savings are based on data from the Arizona Energy Office study 

of 257 weatherized homes. The study normalized electric and gas savings into dollars with gas 

savings equaling about 10% of the total. The present value of the dollar savings was converted to 

“equivalent kWh” at 8 cents per kWh. The annual energy demand savings per home in this study are 

estimated to be 0.3 kW. A 17.5 years measure life and kWh savings factor of 2746 kWh per home, 

based on the current GOEP report, has been utilized to determine the appropriate kWh savings. 

Benefits and Net Benefits/Performance Incentive Calculation

The net benefits for this program are provided in Tables 5, and 6. The Performance Incentive 

calculation does not include the Energy Wise Program because, as indicated in Decision No. 68647, 

this program has a zero net benefit. Consequently, the net benefits for the Energy Wise Program for 

this Reporting Period as shown in Table 5 are $0. However, the spending on the Energy Wise Low 

Income Weatherization Program is included in the total spending, on which the performance incentive 

is calculated. 

Problems Encountered and Proposed Solutions 

The American Recovery and Renewal Act (“ARRA”) weatherization funding impacted the APS Energy 

Wise Weatherization program up until March when the program ended. The temporary slowdown in 

utility weatherization program activities was a direct result of the agencies focus on spending the 

ARRA funds before March. Nonetheless, the agencies were able to expend most of the funding by 

year end. 

 
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Costs Incurred 

Costs incurred for this program during the current Reporting Period are listed below: 

Activity

Rebates & 

Incentives

Training & 

Technical 

Assistance

Consumer 

Education

Program 

Implement

Program 

Marketing

Planning & 

Admin

Program 

Total Cost

Bill Assistance $195,884 - $10,154 $47,646 $253,684

Health & Safety - - - - - $0

Repair and Replace - - - - - $0

Weatherization $2,038,336 $11,085 $7,315 $72,600 $2,129,336

3rd Party Manager - Arizona 

Community Action Association - - - $50,000 - - $50,000

Total $2,234,220 $11,085 $0 $50,000 $17,469 $120,246 $2,433,020

APS Program Support - - - - $0

This table displays all Energy Wise Program costs, including Health and Safety, and Repair and Replace. However, these 

categories are not included in Table 1. 

Measures: Health and Safety, Repair and Replace Components

Measure Health and Safety Repair and Replace 

Air Conditioner 0 0 

Heat Pump 0 0 

Evaporative Cooler 0 0 

Refrigerators 0 0 

Water Heaters 0 0 

Commission Decision No. 73089, requires APS to report spending for non-EE measures in the 

Energy Wise Program. There were no non-EE measures or associated spending in this program 

during this Reporting Period. 

Findings from Research Projects 

Nothing to report during this period. 

Other Significant Information 

Program marketing efforts included: 

u Weatherization outreach and field visits to participating CAP offices 

u Participation in Hopefest 2012 at Chase Field, April 14, 2012 

u Meeting with El Mirage City Council to discuss program, May 15, 2012 

u Presentation and booth at Community Action Human Resources Resource Roundup, June 1, 

2012 

u Weatherization Program overview to Sun City CAN, June 7, 2012 

u Meeting with Navajo Nation representatives to discuss weatherization, August, 27, 2012 

u APS Unity in the Community Limited Income Summit, October 5, 2012 

u Flagstaff Unity in the Community Presentation, November 6, 2012 
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PROGRAM: NON-RESIDENTIAL PROGRAM FOR LARGE EXISTING FACILITIES

Description 

The Large Existing Facilities Program provides prescriptive incentives for owners and operators of 

large (over 100 kW aggregated peak monthly demand) Non-Residential facilities for EE 

improvements in technologies such as lighting, HVAC, motors and refrigeration applications. The 

Direct Install approach is available for facilities which are individually metered with a peak demand of 

400 kW and less. For EE applications not covered by the prescriptive incentives, the program offers 

custom incentives, which are evaluated individually based on energy savings. The program also 

provides incentives to reduce the cost of an energy study that identifies energy saving opportunities. 

The program provides educational and promotional pieces designed to assist facility and business 

owners and operators in making decisions to improve the EE of their facilities. 

Program Modifications 

APS made the following implementation changes based on the approval of new measures per the 

Decisions cited below. 

ACC Decision No. 73089, dated April 4, 2012 approved the addition of the following measures to the 

prescriptive program: 

u Energy Management System (“EMS”) – DDC Replacing Pneumatic or Manual 

T-stat 

u EMS – DDC Replacing Programmable T-stat or digital system 

u EMS – Integrated Lighting Control 

u LED – non-reflector lamp 

u LED – reflector lamp 

u LED – MR16 

u LED Pedestrian Signal with or without countdown 

u Refrigerated Case LED with motion sensor 

u Refrigerated Case LED without motion sensor 

 
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ACC Decision No. 73089, requires APS to report EMS and LED measures , annual savings, capacity 

savings, and measure life to be reported individually . See the table below 

Measure Qty 

kWh 

Savings 

kW 

Savings Measure Life 

EMS - DDC Replacing Pneumatic or 

Manual T-stat 2,137,286 8,698,756 

 

- 13 

EMS - DDC Replacing Programmable 

T-stat or digital system 2,358,179 7,664,083 

 

- 13 

EMS - Integrated Lighting Control 121,187 156,331 

 

- 10 

LED - non-reflector 14,713 3,420,429 

 

782.72 7 

LED - reflector 4,309 798,932 

 

237.43 7 

LED - MR16 4,756 626,223 

 

196.42 7 

In an effort to reduce total program cost, the following program changes were implemented, and 

communicated at a trade ally workshop, held on April 4th, 2012. 

u Custom incentive reduced from $0.11/kWh to $0.09/kWh 

u T8 to Premium T8 (4-foot lamps) reduced from $8/lamp to $4/lamp 

u Induction Lighting 

o MH 70w 200w to Induction  100w reduced from $75/fixture to $55/fixture 

o HPS 100w 200w to Induction  100w reduced from $75/fixture to $55/fixture 

o MH >200w 250w to Induction  160w reduced from $150/fixture to $115/fixture 

o HPS >200w 400w to Induction  160w reduced from $150/fixture to $115/fixture 

u Chillers 

o Air-Cooled Chillers < 150 tons 

 Equipment Incentive reduced from $7/ton to $5.25/ton 

 Efficiency Incentive reduced from $300/ton to $225/ton 

o Air-Cooled Chillers  150 tons 

 Equipment Incentive reduced from $10/ton to $7.50/ton 

 Efficiency Incentive reduced from $300/ton to $225/ton 

o Water-Cooled Chillers < 150 tons 

 Equipment Incentive reduced from $7/ton to $5.25/ton 

 Efficiency Incentive reduced from $300/ton to $225/ton 

o Water-Cooled Chillers  150 tons < 300 tons 

 Equipment Incentive reduced from $7/ton to $5.25/ton 

 Efficiency Incentive reduced from $300/ton to $225/ton 

o Water-Cooled Chillers  300 tons 

 Equipment Incentive reduced from $10/ton to $7.50/ton 
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 Efficiency Incentive reduced from $300/ton to $225/ton 

u Economizer incentive reduced from $40/ton to $25/ton 

u CO2 Sensor incentive reduced from $200/sensor to $120/sensor 

u Motors must now exceed NEMA Premium efficiency, rather than meet it, to qualify for an 

incentive 

u Retro-Commissioning Incentive changed from 75% of cost up to $20,000 to the lesser of 

$0.09/kWh, 75% of cost, or $20,000. For projects with minimal kWh savings, the minimum 

incentive will be 50% of the retro-commissioning cost up to $10,000 

On July 11, 2012 the following incentive change took place: 

u Ice Machine incentive reduced from $300/unit to $20/unit for 1-100lbs, $50/unit for 101-200 

lbs, $75/unit for 201-300 lbs, and $100/unit for 301-1,500 lbs. 

On the Express Solutions program, for large, non-school customers (101 – 400 kW) the following 

incentive changes were made on March 8, 2012: 

u Refrigeration measures reduced from $0.20/kWh to $0.09/kWh 

u T12 to T8 Premium reduced from $0.175/kWh to $0.155/kWh 

u T8 to T8 Premium reduced from $0.25/kWh to $0.18/kWh 

u T8 to T8 Premium w/de-lamping reduced from $0.19/kWh to $0.17/kWh 

u Exit Signs reduced from $0.15/kWh to $0.11/kWh 

In addition to these changes, the Bid-for-Efficiency Pilot was suspended. Program modifications for 

2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

u Promote and support EE opportunities for existing large Non-Residential customers. 

u Promote the installation of high-efficiency technologies including, but not limited to lighting, 

HVAC equipment, motors, and refrigeration systems. 

u Promote market transformation through APS trade allies, customer outreach and technical 

training classes. 

APS’s 2012 DSM Implementation Plan estimated that the EE savings from the Large Existing 

Program could reduce annual peak demand by about 21.0 MW, 152,000 MWh annually, and 

2,046,000 MWh over the life of the measures expected to be installed in 2012. 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. However, the Bid-forEfficiency Pilot was suspended. Programs or measures proposed for termination in 2013, where 

applicable, are included in APS’s 2013 Implementation Plan. 
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Levels of Participation 

The Large Existing Facilities Program has been the strongest performing Non-Residential program 

since its inception. During this Reporting Period, APS paid $17,245,333 in Large Existing program 

incentives. This represents a total of 1,856 active applications from 594 unique customers and 

includes projects implemented through Direct Install. Payments to School Districts and charter 

schools comprised 150 of the 1,856 applications. 

Incentive Status by Fund for Active Applications Incentives Paid 

Large Existing – Prescriptive & Custom $16,553,011 

Large Existing – Studies $380,623 

Large Existing – Retro commissioning Studies $311,700 

Total Large Existing Funds $17,245,333 

In Decision No. 70637, the ACC approved APS’s request to continue to track DSM applications 

resulting from studies for which incentives have been paid, and to report the semi-annual and 

cumulative results of its program-to-date. During this Reporting Period, APS paid a total of $692,323 

for 96 study applications from 34 customers. During this reporting period, sixty-eight feasibility studies 

were paid a total of $378,723, twelve benchmarking studies were paid a total of $1,900, and sixteen 

retro commissioning studies were paid a total incentive of $311,700. Forty-eight of the 96 studies 

have already resulted in implementation of the associated measures. Since the program’s inception, 

283 studies have been completed. Of those 283 studies, 137 have resulted in EE project applications 

to date. 

Decision No. 73089, required APS to report the type of measures installed by customers after a study 

was completed. The following measures were installed for studies completed in 2012: chillers, 

economizers, HVAC, HVAC controls, interior lighting, motors, programmable thermostats and 

refrigeration. 

Self-Direction: 

On January 23, 2009, the Commission issued Decision No. 71444, which approved Self-Direction. 

In this Reporting Period one (1) customer participated in Self Direction. The project included the 

conversion of existing exterior mercury vapor lighting and exterior incandescent lighting to LED 

lighting on the following mechanical mining shovels: #8, #10, #11, #21, and #22. Shovel #8 included 

the conversion of interior fluorescent lighting to LED lighting as well. 

 
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The total cost of this phase of the project was $107,311.53. Since this change out was done solely 

for the purpose of saving kWh’s and did not need to be changed out due to a replace on burnout 

situation, the incremental cost of the project is equivalent to the project cost. 

u Total Project Cost: $107,311.53 

u Incremental Cost: $107,311.53 

u Energy Savings: 172,781 kWh

u Demand Savings: 27.35 kW 

u Environmental Savings (generation-side): 554 tons CO2 

u Water Savings: 281,805 gallons 

Direct Install 

The Direct Install measures were launched in April 2009. While these measures are targeted to small 

businesses, program rules allow small facilities (under 400 kW demand) of large customers to 

participate. K-12 school buildings of any size can also participate in Direct Install measures. In this 

Reporting Period, 220 Direct Install projects for Large Existing Facilities were paid a total of 

$2,026,871 in incentives. Program development and outreach for Direct Install are described in the 

Small Business section of this Progress Report. 

Evaluation and Monitoring Activities and Results 

u Conducted ongoing review and analysis of participation database. 

u Continued to review and update the Non-Residential Measure Analysis Spreadsheets and 

Analytic Database 

u Provided guidance on Large Existing components of the program design tool to support the 

implementation plan. 

u Evaluated savings impacts of a sample of Custom projects through phone interviews and onsite inspection and metering. 

u Continued on-site metering of Hotels, School, and Office lighting projects to support 

assumptions of operation hours, coincidence factors, diversity factors, and installation rates. 

u Reviewed invoices, interviewed program contractors, and conducted internet research to 

update cost estimates for high volume measures including linear fluorescents, occupancy 

sensors, unitary HVAC equipment, and chillers. 

u Conducted process and customer satisfaction surveys of Custom and Large Existing 

participants. 

u Assessed attribution of Technical Assistance offerings on projects implemented outside of the 

program through document review and participant interviews. Results support on-going net-togross and market effects research. 

 
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MER Adjusted Gross kW and kWh Savings 

The following table reflects the MER adjusted total energy and demand saving achievements in this 

Reporting Period for the Large Existing Facilities program. Only savings from projects that were 

completed and incentives paid are counted in this Progress Report. 

MER Adjusted kW and kWh Gross Savings 

kW Savings Annual kWh Savings Lifetime kWh Savings 

26,379 192,263,042 2,530,369,193 

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Problems Encountered and Proposed Solutions 

There are no new problems to report this period. 

Costs Incurred During the Reporting Period 

Costs incurred for this program during this Reporting Period are listed below: 

DSM Program Rebates & 

Incentives 

Training & 

Technical 

Assistance 

Program 

Implementation* 

Consumer 

Education 

Program 

Marketing 

Planning 

& 

Admin. 

Program 

Total Cost 

Large Existing $17,245,333 $247,963 $2,539,924 $4,147 $318,927 $221,821 $20,578,115 

* All implementation expenditures are contractor expenses. 

A breakdown of all implementation contractor expenses for this Reporting Period and program are 

provided below: 

DSM Program IC- Implementation IC- Marketing IC- Education IC- Technical Services IC- Total Cost 

Large Existing $2,539,924 $318,927 $4,147 $244,062 $3,107,060 

Findings from Research Projects 

Nothing to report during this period.

Other Significant Information 

The focal point of program development activities centered on specific market segments. The 

program developed technical resources, information, trainings and advertisements to engage and 

educate these specific segments. 

The program continued to develop and foster relationships with industry and stakeholder associations 

to enhance outreach efforts and connections with members. During the Reporting Period, these 

activities included participation in the following: 

u Association of Energy Engineers, AZ Chapter 

u Association for Construction Excellence 

u Arizona Association of School Business Officials (“AASBO”) 
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u American Institute of Architects (“AIA”) 

u Building Owners and Managers Association (“BOMA”): 

o Sponsored a Benchmarking with ENERGY STAR® training; maintained active 

participation on Green Building Committee; and sponsored BOMA’s Kilowatt Krackdown 

(ENERGY STAR® portfolio manager program) promotion. 

u International Facility Managers Association 

u Arizona Hotel & Lodging Association – Green Hotel Certification Committee. 

u Central Arizona Society of Hospital Engineers 

u Green Chamber of Commerce 

u 24/7 (IT-focused association) – attended meetings in first quarter 

u Valley Forward – participated in meetings; staff served as 2012 Energy Committee co-chair. 

u United States Green Building Council (“USGBC”) 

Trade Ally Network: Trade allies are contractors and other industry professionals who deliver EE 

solutions to customers. The program incorporates a Trade Ally program to ensure an informed and 

engaged network of service providers. To be listed as a Solutions for Business Trade Ally, a company 

must submit an application and attend program training which includes prescriptive application 

instruction. To remain on the list, the company must participate in the rebate program and attend an 

annual training. 

As a result of the program’s focus on trade ally development and recruiting efforts, 16 new trade allies 

(companies) were approved during this Reporting Period; 59 were dropped for lack of participation. At 

the end of this Reporting Period the program had a total of 266 trade allies (companies). 

Trade Ally Outreach 

The Trade Ally program continues to generate interest from a variety of industry professionals. These 

professionals must attend a training session to learn about the Solutions for Business program and 

the benefits of becoming a program trade ally. This meeting is offered free of charge, as is 

prescriptive application training, custom application training and meetings to assist with application 

preparation. Trade Ally Orientations were suspended for the last quarter of this reporting period.

Outreach is conducted through strategic partnerships with professional associations within the energy 

and contracting industry as well as trade show and event participation and program advertisements. 

These efforts were scaled back during 2012 to concentrate on high quality participants. 

Program trade allies received two editions of the Solutions for Business Trade Ally Newsletter during 

this Reporting Period. Newsletter articles provided program updates, links to useful program 

information and information on upcoming events and training opportunities. 

Additional trade ally development opportunities centered on technical support to new and existing 

trade allies with an enhanced focus on encouraging program participation, increasing program 

knowledge and improving the quality of incentive applications submitted by trade allies. Both 

Prescriptive Application (required) and Custom Application (encouraged) Training classes were 
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offered, as they proved valuable in improving both contractor interaction with customers and 

application quality. 

Efforts to develop and leverage the existing trade ally network included program training 

opportunities, technical training classes, trade ally events and program participation in trade allyhosted events and a web-based Trade Ally Web portal. 

The program regularly refreshed the Trade Ally Web portal with updates to information available on 

the portal. Training presentations, news updates and other announcements are posted on the portal. 

Trade Ally Events 

Participation in Trade Ally Events

Solutions for Business program information was provided at the following trade ally attended events: 

Jan 

 

Trade Ally Orientation, 18 attendees 

Feb Trade Ally Orientation, 24 attendees 

Prescriptive Application Training, 18 attendees 

AIA Committee on the Environment Meeting, 12 attendees 

Association for Construction Excellence, 75 attendees 

USGBC AZ Annual Conference, 100+ attendees 

March Air Conditioning Contractors of America Trade Show, 250 attendees 

AIA Committee on the Environment Meeting, 12 attendees 

Trade Ally Orientation, 19 attendees 

AZ School District Commercial Tune Up Review, 40 attendees 

April Annual Trade Ally Event, 250 attendees 

Trade Ally Orientation, 17 attendees 

May Trade Ally Orientation, 25 attendees 

June Prescriptive Application Training, 30 attendees 

July Prescriptive Application Training, 36 attendees 

Arizona Association of School Business Officials Conference, 200+ attendees 

Aug Prescriptive Application Training, 28 attendees 

Custom Application training, 10 attendees 

Electric Service and Design, Lunch & Learn, 15 attendees 
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Sept Trade Ally Orientation, 15 attendees 

Nov American Institute of Architects, AZ Chapter Annual Awards, 100+ attendees 

Dec Go Green Conference, 200 customers, hosted booth 

Siemens Annual Open House, 100 attendees 

2. Customer Awareness and Advertising: 

Marketing and outreach efforts focused on high-value opportunities to raise customer awareness of 

the program and EE benefits. To accomplish these goals, a variety of marketing tools and channels 

were used to reach customers and contractors, including print and electronic advertisements, updates 

to the program website, public relations events and print materials. 

u Messaging in print advertisements placed during this Reporting Period included: 

o Two ads ran in the Phoenix Business Journal featuring messages of appreciation to 2011 

participating contractors and to the winners of the 2012 Trade Ally program awards in August. 

o A shared message promoting HVAC tune-ups for both commercial and residential customers 

ran in the ACCA product directory in May/June. 

o Electronic banner ads in the Phoenix Business Journal website ran from August through 

November promoting the message of EE to a wide audience of businesses and customers. 

o An ad was placed in the AZRE Magazine in March/April congratulating nominees of the annual 

RED (Real Estate Development) awards and recognizing the winner of the APS sustainability 

award. 

u Sponsorship of the annual RED awards helped raise awareness in the program and promote EE 

to the construction and real estate industries through sponsorship of the “most sustainable” project 

and presentation of annual program highlights during the event to an attendance of more than 

400. 

u The May APS Success newsletter featured articles developed to promote the nonresidential 

program to customers receiving the newsletter with their bills. 

u Trade allies received program information and updates in two e-newsletters produced and 

distributed in June and October. 

u Program incentives were submitted in July to the ENERGY STAR® Commercial Kitchen Guide for 

inclusion in online site listings. 

u Large checks were produced and printed for presentations to recognize participation and help 

raise awareness of the program at customer events in 2012 including: the city of Yuma and eBay 

(July), Somerton Elementary School District (August), the city of Tempe (November) and the 

Town of Buckeye and Dick’s Sporting Goods (December). 

u The annual Arizona Highways calendars project began in October and involved developing 

artwork promoting the program for the back panel of the calendars and distribution of the 

calendars to 200 members of the Trade Ally program; APS coordinated distribution of the 

calendars to more than 900 participating contractors. 
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u Electronic invitations went out to participating customers, contractors and members of the Trade 

Ally program promoting training workshops and events, and encouraging attendance throughout 

the year. 

u Program marketing materials and event display items were rebranded in 2012 to bring the print 

collateral and exhibit materials into compliance with new APS brand standards. 

u Poster-size case study displays were developed promoting energy savings by business type (K12, data centers, office buildings and retail) used at events throughout the year. 

u A new case study promoting incentives for LED lighting for the retail market was developed.

Market Segmentation 

APS continues to tailor its marketing and outreach efforts to specific market segments. As a program 

matures and “early adopters” complete projects, it becomes more challenging to engage participants 

and achieve energy saving targets. By segmenting the Non-Residential market into more-defined 

categories, the program can implement targeted and cost-effective strategies to engage customers. 

The objective is to secure participation by a broader range of eligible customers and to encourage 

these customers to implement comprehensive projects beneficial to their specific business. 

The program currently segments Non-Residential customers into 12 categories by business type: 

college/universities, data centers, government, grocery, hotels, industrial, K-12 schools, medical, 

office, restaurant, retail and warehouse. The segments align with customer participation trends and 

demographics. 

During this Reporting Period, one outreach and one technical staff were assigned to each segment. 

Each person supports three to four different segments. The assigned staff will provide in-depth 

knowledge of their particular segments in terms of segment motivators, barriers, procurement 

process, energy consumption patterns, and appropriate technologies and energy-saving measures. 

Outreach staff will continue to develop relationships with associations and other industry contacts 

related to the assigned segments, participate in events and guide development of marketing 

messages and program tools. 

Each market segment has an individual savings goal and outreach plan based on historical and 

current participation, potential, and other market conditions. This will allow APS to better track 

success within segments and quickly adjust for changing market conditions and opportunities 

pertaining to these segments. 

3. Generate Program Awareness Through Key Events: The program participated in the following 

trade shows and conferences: 

u February 7 – Pinal County Partnership presentation (180 attendees) 

u February 9 – USGBC Annual Conference attendee (100+ attendees) 

u February 24 – Beyond the Cloud Tech Event booth (100 attendees) 

u March 1 – Red Awards, Arizona Real Estate Magazine, sponsor (200 attendees) 

u March 12 – AIA Reincarnation Tour, participant (65 attendees) 
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u March 27 – Association of Air Conditioning Contractors Trade Show, booth (250+ attendees) 

u June 13 – Greater Phoenix Economic Council, presentation (40 people) 

u July 18/20 – Arizona Association of School Business Officers Annual Conference, booth (1000 

attendees) 

u August 28/29 – Arizona League of Cities and Towns, booth (200+ attendees) 

u November 3 – American Institute of Architects Annual Awards Program, judge/presenter (200 

attendees) 

u December 6 - Go Green Conference, exhibit ( 200 attendees) 

4. Technical Training:

Training courses help customers understand technologies and potential for energy savings. This 

understanding promotes quicker adoption of new technologies and encourages customers to 

undertake more in-depth and holistic projects. Classes allow interaction among customers, topic 

experts and contractors who can perform work, thus facilitating the contracting process. Feedback 

from this educational series indicates that customers are more likely to adopt alternative technology 

following such presentations and the knowledge gained from them. 

APS continued to work closely with the Arizona Chapter of the Association of Energy Engineers 

(“AEE-AZ”) to promote and manage registration of the APS Technical Training series. AEE-AZ 

provided access to their membership to promote the trainings and the Solutions for Business program 

and also provided APS with turnkey registration support for the two trainings that occurred during this 

Reporting Period. Attendance remained strong during this Reporting Period with many repeat 

attendees. 

The classes held during this Reporting Period attracted 234 attendees: 

u January 25/26 – Motor Systems Management (66 attendees) 

u April 18/19 – Building Codes ( 80 attendees) 

u May 8 – Benchmarking with ENERGY STAR with BOMA (16 attendees) 

u September 13 – Pump Systems ( 65 attendees) 

u September 25 - Benchmarking with ENERGY STAR with BOMA (7 attendees) 

Materials were developed for each training session, including class materials on CDs for participants, 

class evaluations, invitation fliers, and certificates of completion. Electronic invitations and 

registrations links were sent to the program’s contact list, the Association of Energy Engineers 

(“AEE”) member list, the GOEP and APS Key Account Managers. 

Information on the Solutions for Business program was presented at the training events. 

The program sponsored the following training organizations and related classes: 

u Building Owners & Managers Association – Benchmarking with ENERGY STAR®

u Air Conditioning Contractors of America– Professional Air Conditioning Technician Certification 

u AEE – Certified Energy Manager series 
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u IKOLOJI-Sustainability Collaborative – Sonoran Sustainable Building Advisor Program 

APS held three training courses for the revised HVAC Tune-up incentive and using the Stargate 

testing device. Forty-six contractors, including residential and non-residential, were trained over 

March 8, 26th and May 2. 

Solutions for Business staff met with city and county Workforce Development representatives and 

ASU staff to discuss collaborative efforts on federally funded training courses. APS is supportive of 

classes and will have limited participation. APS will continue to search out educational efforts that 

support market transformation among both the public and the trades. 

 
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BID FOR EFFICIENCY PILOT 

Description 

The Bid for Efficiency pilot was intended to provide alternative incentives to the current Solutions for 

Business program offerings. During this Reporting Period, this pilot measure was suspended due to 

lack of need for additional savings to meet the goal.

Program Modifications 

Bid for Efficiency Pilot was suspended in 2012. Program modifications for 2013, where applicable, are 

included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

u Maximize the energy savings that can be attained with available DSM funds by providing 

incentives to innovative, comprehensive projects that found significant participation barriers in 

the classic program. 

u Provide educational and training materials to facility managers and trade allies in order to aid 

in the development of proposals. 

u Promote new, cost-effective energy savings for Solutions for Business based on realized 

energy-savings measurements. 

Programs or Measures Terminated 

Bid for Efficiency was suspended during this Reporting Period. Programs or measures proposed for 

termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Levels of Participation 

In this Reporting Period, no Bid for Efficiency projects were either contracted or completed. 

Other Significant Information 

Nothing to report during this Reporting Period. 

 
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PROGRAM: NON-RESIDENTIAL NEW CONSTRUCTION AND MAJOR RENOVATIONS

Description 

The Non-Residential New Construction and Major Renovations program includes three components: 

1) design assistance components: 1) technical assistance applications (design assistance, feasibility 

studies, etc.), 2) custom measures, 3) prescriptive measures, and 4) whole building applications 

(construction & design incentives). Design assistance applications involve efforts to integrate EE into 

a customer’s design process to influence equipment/systems selection and specification as early in 

the process as possible. Custom and prescriptive incentives are available for EE improvements in 

lighting, HVAC, motors and refrigeration applications. Whole building applications are intended to 

promote integrated design strategies. 

Program Modifications 

See Large Existing section for 2012 program modifications. Program modifications for 2013, where 

applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

u Promote integrated design and integrated analysis of alternative high-efficiency design 

packages through design assistance in new construction and major renovation applications. 

u Assist the customer design team in examining alternative high-efficiency design packages 

through the provision of the design incentive. 

u Promote market transformation through APS trade allies, customer outreach and technical 

training classes 

APS’s 2012 DSM Implementation Plan estimated that the EE savings from the New Construction 

Program could reduce annual peak demand by about 3.9 MW, 27,000 MWh annually and 410,000 

MWh over the life of the measures expected to be installed in 2012. 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Levels of Participation 

The majority of new construction and major renovation projects under way are choosing the Whole 

Building application. Many of these new projects are highly energy efficient and will receive significant 

incentives. In this Reporting Period, APS paid a total of $2,904,519 in New Construction incentives. 

This represents 93 applications from 39 unique customers. Seven of the 93 applications were from 

school districts. 

 
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Incentive status is provided below. 

Incentive Status for Active Applications Incentives Paid 

Large New Construction – Prescriptive & Custom $2,835,469 

Large New Construction – Studies $69,050 

Total Large New Construction Funds $2,904,519 

In Decision No. 70637, the Commission ordered APS to continue tracking DSM customer applications 

resulting from studies for paid incentives, and report the semi-annual and cumulative results of its 

program-to-date tracking efforts. During this Reporting Period, Seven design assistance studies were 

paid a total of $52,500, and two commissioning study incentive was paid a total of $16,550. Eight of 

these nine applications has resulted in EE projects to date. Since program inception, 53 studies have 

been completed. Of those 53 studies, 33 resulted in applications for EE projects. 

 

Commisison Decision No. 73089, required APS to report the type of measures installed subsequent 

to the receipt of study or design assistance incentives. The following measure types were installed 

for studies completed in 2012: building envelope, chillers, interior lighting, lighting, motors, and 

Whole Building. 

APS Solutions for Business launched the Whole Building incentive in January 2010. During this 

Reporting Period the program received 36 Pre-Notification applications and eighteen Whole Building

projects were paid incentives. 

Evaluation and Monitoring Activities and Results 

u Conducted ongoing review and analysis of the participation database. 

u Continued to review and update the Non-Residential Measure Analysis Spreadsheets and 

Analytic Database. 

u Provided guidance on New Construction components of the program design tool to support the 

implementation plan. 

u Assessed attribution of Technical Assistance offerings on projects implemented outside of the 

program through document review and participant interviews. Results will support on-going 

net-to-gross and market effects research. 

u Reviewed invoices, interviewed program contractors, and conducted internet research to 

update cost estimates for high volume measures including linear fluorescents, occupancy 

sensors, unitary HVAC equipment, and chillers. 

MER Adjusted Gross kW and kWh Savings 

The following table reflects the MER adjusted total energy and demand saving achievements in this 

Reporting Period for the Large New Construction Program. Only savings from projects that were 

completed and incentives paid are counted in this Progress Report. 
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MER Adjusted kW and kWh Gross Savings 

kW Savings Annual kWh Savings Lifetime kWh Savings

4,884 31,904,446 467,011,973 

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Problems Encountered and Proposed Solutions 

No new problems to report for this Reporting Period. 

Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

DSM Program 

Rebates & 

Incentives 

Training & 

Technical 

Assistance 

Program 

Implementation* 

Consumer 

Education 

Program 

Marketing 

Planning 

& Admin. 

Program 

Total Cost 

New 

Construction 

 

2,904,519 

 

33,695 629,120 

 

860 

 

78,230 

 

47,264 

 

3,693,688 

All implementation expenditures are contractor expenses. 

A breakdown of all implementation contractor expenses for this Reporting Period is: 

DSM Program IC- Implementation IC- Marketing IC- Education IC- Technical Services IC- Total Cost 

New Construction 629,120 78,230 860 33,695 741,905 

Findings from Research Projects 

Nothing to report during this Reporting Period. 

Other Significant Information 

During this Reporting Period, program development activities focused on following up with projects in 

progress and increasing program participation. Specific activities are highlighted below. 

Marketing and Outreach 

Strategic partnerships continue to play an important role in New Construction outreach. During this 

Reporting Period, APS agreed to sponsor the Energy Award at the annual awards of the AIA. This 

partnership will help the program attract allies in the architectural sector and promote the Whole 

Building incentive. Architects can access low cost Continuing Education Units through the APS 

Technical Training program. 

In addition to many of the marketing and outreach activities described for the Large Existing program, 

outreach activities for the New Construction program focus on educating potential program 
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participants from the following customer segments: owner-occupied buildings, government buildings 

(schools, county, city, state) and signature projects. 

New Construction projects have been identified and approached from several directions. During this 

Reporting Period, the Solutions for Business program made contacts with the contractor and design 

community, but new construction project starts are still limited and are primarily centered in the 

government, higher education and K-12 sectors at this time. Currently a pipeline of 40 new 

construction projects is being maintained. Specific examples of New Construction outreach include: 

u Monthly networking at construction industry association meetings, including the Arizona 

chapter of the US Green Building Council, BOMA, Leading Edge Arizona and the 

AIA. This attendance is an important component of lead development for future projects, 

which could qualify for design assistance and other program incentives. It also helps to 

identify and recruit potential trade allies into the program. 

u Project-specific meetings and conference calls with architecture and engineering firms, 

developers, contractors and customers continue for projects at all stages of design and 

development. In addition, industry professionals receive program updates and programrelated support. In this Reporting Period, APS Solutions for Business program staff 

held on-site trainings with approximately 25 professionals to discuss program details 

and to identify potential energy-efficiency opportunities. 

 Additional leads came from the APS Economic Development group as they meet with 

developers. 

 
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PROGRAM: SMALL BUSINESS PROGRAM

Description 

The Non-Residential Small Business Program provides prescriptive incentives for small NonResidential customers (<400 kW of aggregated peak monthly demand) for EE improvements in 

lighting, HVAC, motors and refrigeration applications through a simple and straightforward 

mechanism for program participation. Small Business customers are also eligible for custom 

incentives to implement EE measures. The program provides incentives for conducting an energy 

study that identifies energy saving opportunities. The program also provides educational and 

promotional materials designed to assist building owners and lease-holders in making decisions to 

improve the EE of their facilities. Direct Install measures were introduced to the Small Business 

market in April 2009. 

Program Modifications 

ACC Decision No. 72088 expanded eligibility for Direct Install to customers with <400 kW of 

aggregated peak monthly demand (previously limited to 100 kW and below). It also added two lighting 

measures to the Direct Install incentive offerings. The cap for small customers (a100 kW monthly 

demand) was increased to $150,000 plus 50% of the incentive over $150,000. 

See the Large Existing section for other applicable program modifications. 

ACC Decision No. 73089 requires APS to report the number of measures installed, the annual energy 

and capacity savings, and measure life on an individual basis. Please see chart below: 

Measure Qty kWh Savings 

kW 

Savings Measure Life 

EMS - DDC Replacing Pneumatic or 

Manual T-stat 

EMS - DDC Replacing 

Programmable T-stat or digital 

system 13,416 43,602 

 

- 13 

EMS - Integrated Lighting Control 

LED - non-reflector 836 194,353 

 

44.48 7 

LED - reflector 3,263 604,993 

 

179.79 7 

LED - MR16 1,152 151,684 

 

47.58 7 

Program modifications for 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

u Promote and support EE opportunities for small Non-Residential customers. 

u Promote the installation of high-efficiency lighting, packaged HVAC equipment, motors and 

refrigeration systems. 
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u Provide customers with direct energy saving opportunity identification and implementation 

services through the Direct Install family of measures. 

u Promote cross-training and EE assessment and referral opportunities among lighting and 

refrigeration contractors. 

u Promote market transformation through APS trade allies, customer outreach and technical 

training classes. 

APS’s 2012 DSM Implementation Plan estimated that the EE savings from the Small Business 

Program could reduce annual peak demand by about 7.2 MW, 32,000 MWh annually and 521,000 

MWh over the life of the measures expected to be installed in 2012. 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Levels of Participation 

In this Reporting Period, APS paid a total of $2,610,308 in Small Business program incentives, an 

increase of 4 percent compared to the same period in 2011. APS paid incentives on 1,271 

applications from 1076 unique customers during this Reporting Period. This is an application increase 

of 1 percent compared with the number of Small Business program applications processed for the 

entire 2011 program year. 

Of the 1,271 small business projects paid, 423 were conducted through the Classic 

prescriptive/custom program and 848 were conducted through Direct Install. None of the 1,271 

applications were from school districts. 

While the program offers a pre-notification process to reserve incentive funds, final applications are 

only processed after the project is completed and all required documentation is submitted and 

approved. 

Incentive Status for Active Applications Incentives Paid 

Small Business – Prescriptive $2,610,308 

Small Business – Studies $0 

Small Business – Retro commissioning Studies $0 

Total Small Business Funds $2,610,308 

In Decision No. 70637, the Commission ordered APS to continue to track DSM applications resulting 

from studies for which incentives have been paid, and report the semi-annual and cumulative results 

of its program-to-date tracking efforts. There were no study incentive paid in the Small Business 

program during this Reporting Period. Six studies have been completed since program inception, of 

which five study applications have resulted in EE projects. 
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Direct Install 

Direct Install incentives were paid on 848 projects for Small Business customers during this Reporting 

Period. While small businesses are the primary target for the Direct Install offering, large customers 

with facilities of 400 kW or less premise demand qualify for Direct Install measure incentives, and 

schools of any size can participate. In addition to the 848 projects paid to small businesses, an 

additional 265 Direct Install projects for Large Businesses and Schools were paid. The breakdown of 

Direct Install incentives and paid projects is provided in the section below. 

Projects implemented through Direct Install during this Reporting Period are expected to save 37,900 

MWh annually or 510,900 MWh over the lifetime of the measures. This is a 10 percent decrease 

compared to the savings achieved during the same timeframe last year. 

1. Active Number of Contractors and Contractor Identification: 

Direct Install contractor participation from approved contractors has remained consistent. During 

this Reporting Period, 29 approved contractors participated in Direct Install, an increase of 7 

percent compared to the entire 2011 program year. Contractors participating during the current 

Reporting Period include the following: 

u ACCEL ELECTRIC AZ LLC 

u ATS ELECTRIC, INC. 

u BURDEN ELECTRIC LLC 

u DECA SOUTHWEST 

u DEMAND DROP 

u ECO POWER, LLC 

u G & A SERVICES LLC 

u G&S ELECTRIC, INC. 

u GREEN FUEL TECHNOLOGIES 

u GREENLIGHT ELECTRIC LLC 

u HARMON ELECTRIC INC 

u HOPE CONSTRUCTION LLC 

u INLINE ELECTRICAL RESOURCES 

u J & S ELECTRIC LLC 

u JEN ELECTRIC 

u JFK ELECTRICAL CONTRACTING 

u KER ELECTRIC, INC 

u LONE MOUNTAIN ELECTRIC LLC 

u NUWEST TECHNOLOGIES INC 

u PROFORMANCE ELECTRIC INC. 

u REDLINE ELECTRIC LLC 

u REGROUP PERFORMANCE CONTRACTING LLC 

u ROB LOVE ELECTRIC 

u STONE KAT DEVELOPMENT 
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u SUPERMARKET ENERGY TECHNOLOGIES LLC 

u TEPCON CONSTRUCTION 

u THE SIGNERY 

u US ENERGY SERVICES INC 

u WILSON ELECTRIC SERVICES CORP

One contractor training meeting was held and attended for 12 companies interested in 

participating in the Direct Install approach. This training meeting provided an in-depth review of 

the Direct Install measure software and included a “hands-on” approach that allowed participants 

to input sample projects into the Direct Install software. Six new companies were approved for 

Direct Install measure participation during the entire 2012 program year. 

2. Number of Direct Install Jobs Completed: 

A total of 1,113 Direct Install projects were paid incentives during this Reporting Period. 

3. Dollar Value of the Direct Install Incentives Paid to Contractors: 

During this Reporting Period, $4,335,936 in Direct Install incentives was paid to contractors. This 

represents 66% of the total project costs. 

4. Dollar Value of the Direct Install Jobs Paid by the Customer: 

The total cost of the Direct Install projects during this Reporting Period was $6,600,068. 

Customers paid $2,264,132 toward these Direct Install projects during this Reporting Period. 

5. Quantity of Each Direct Install measure for which incentives were paid: 

Direct Install Measure Quantity 

Delamping 26,508 

T8 Lighting 35,319 

Screw-in CFL 1,178 

Occupancy Sensors 3,547 

Exit Signs 1,057 

Refrigerated Case Fan Motors 9,085 

Anti Sweat Heater Controls 1,229 

Refrigerated Novelty Case Controls 332 

Refrigerated Case Evaporator Fan Controls 1,337 

Hard-Wired CFL 6,456 

Occupancy Sensors - Vending Machines 74 

6. Number of Instances Where Incentives Were Reduced Because of Eligibility for 

Incentives Paid by Other Entities:

No known occurrences during this Reporting Period. 
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7. Spending and Savings Numbers Attributable to Direct Install for the Period and Year-toDate and Program-to-Date: 

Reporting Period: Year-to-Date 

 kW Savings Annual kWh Savings Lifetime kWh Savings 

6,042 37,986,689 510,959,034 

MER Adjusted Program-to-date 

kW Savings Annual kWh Savings Lifetime kWh Savings 

22,238 110,156,198 1,589,454,684 

 MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

Direct Install Cost Rebates & 

Incentives 

Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implementation 

Program 

Marketing 

Planning 

& Admin Subtotal 

Year-to-Date Jan-Dec 

2012 $4,335,936 $10,853 $0 $610,900 $0 $0 $4,957,689 

Program-to-Date Jan 

2005- Dec 2012 $13,645,688 $262,406 $638,997 $1,536,591 $75,205 $70,166 $16,229,053 

8. Descriptions of the Types of Businesses Participating in Direct Install: 

The “Restaurant” sector participated in the Direct Install measure at the highest rate of frequency 

and accounted for 27% of Direct Install projects paid during this Reporting Period. 

Participation in the Direct Install measure 

included the following business types: 

College/University 1

Grocery 137

Hotel/Motel 8

K-12 School 58 

Medical 27

Miscellaneous 209

Office 123

Process Industrial 20

Restaurant 180

Retail 305

Warehouse 45

9. Estimate of Avoided Marketing or Other Program or Administration Costs: 

The costs to implement and market the Small Business program prior to implementing the Direct 

Install measures were higher on a $/kWh basis. This is because low participation resulted in low 

kWh savings over which to spread implementation costs. From the program inception through 

2008, implementation and marketing costs for Small Business was $1.41M (excluding incentives). 
ARIZONA PUBLIC SERVICE COMPANY 

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Program net annual savings achieved were 5,544,000 kWh. This resulted in non-incentive 

program costs of $.25/kWh saved for the Small Business program. 

In this Reporting Period, estimated Direct Install implementation and marketing costs decreased to 

$0.014/kWh saved, due to increased kWh savings and lower costs of the Direct Install process. 

The total Small Business program cost savings is estimated to be $5,144,080 over the 2008 

program cost rate. [Reduced program costs = ($0.25 - $0.014) x 21,796,949 net annual savings.] 

Evaluation and Monitoring Activities and Results 

u Conducted ongoing review and analysis of the Small Business participation database. 

u Continued to review and update the Non-Residential Measure Analysis Spreadsheets and 

Analytic Database. 

u Provided guidance on Small Business components of the program design tool to support the 

implementation plan. 

u Conducted on-site metering of Direct Install/Express Solutions lighting projects to verify 

operation hours, coincidence factors, diversity factors, fixture wattages and installation rates. 

u Reviewed invoices, interviewed program contractors, and conducted internet research to 

update cost estimates for high volume measures including linear fluorescents and occupancy 

sensors. 

u Conducted process and customer satisfaction surveys of Express Solutions participants. 

u Supported net-to-gross and market effects research through participant and contractor 

interviews.

MER Adjusted Gross kW and kWh Savings 

The following table reflects the total energy and demand saving achievements in this Reporting 

Period for Small Businesses. Only savings from projects that were completed and incentives paid are 

counted in this Progress Report. 

MER Adjusted kW and kWh Gross Savings 

kW Savings Annual kWh Savings Lifetime kWh Savings 

4,331 25,594,834 343,336,823 

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Costs Incurred
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Costs incurred for the Small Business Program during this Reporting Period are listed below: 

DSM Program Rebates & 

Incentives 

Training & 

Technical 

Assistance 

Program 

Implementation* 

Consumer 

Education 

Program 

Marketing 

Planning 

& Admin. 

Program 

Total Cost 

Small Business 2,610,308 24,104 736,895 821 71,546 72,065 3,515,739 

* All implementation expenditures are contractor expenses. 

A breakdown of all implementation contractor expenses for this period and program is provided 

below:

DSM Program IC- Implementation IC- Marketing IC- Education IC- Technical Services IC- Total Cost 

Small Business 736,895 71,546 821 24,104 836,366 

Findings from Research Projects 

Nothing to report during the reporting period. 

Other Significant Information 

In addition to the marketing efforts described for the Large Existing program, specific marketing 

activities for the Small Business program leveraged Direct Install contractors to reach the small and 

midsize business customer and provided targeted program education and information. These 

activities included the following: 

u Print advertisements in the Phoenix Business Journal acknowledging participation of trade 

allies and honoring Direct Install winners of the annual Trade Ally event awards. 

u Promotional materials developed specifically for use by Direct Install contractors, specifically a 

re-designed tri-fold brochure highlighting the benefits of EE projects for the small business 

owner and a companion single-panel leave-behind for visits with potential customers or 

canvassing. 

u Tabletop displays featuring a side panel highlighting the Direct Install program for exhibits and 

meetings. 

u Poster-size case study of a K-12 project promoting the benefits of the program. 

u Pull-up display banner calling attention to the benefits of the Direct Install program for use at 

larger events and meetings. 

u Collaboration with Energize Phoenix in developing marketing messages to promote the Direct 

Install program to customers in the project corridor. 
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JANUARY THROUGH DECEMBER 2012

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PROGRAM: SCHOOLS PROGRAM

Description 

The Schools program includes a set-aside budget for K-12 schools and provides assistance in 

reducing the energy used in school buildings, including public, private and charter schools (K-12). The 

incentives available for schools include the same DSM measures that are available for all NonResidential customers, including Direct Install measures for K-12 schools of any size. 

Program Modifications 

ACC Decision No. 73089 requires APS to report the number of measures installed, the annual energy 

and capacity savings, and measure life on an individual basis. Please see chart below: 

Measure Qty kWh Savings kW Savings Measure Life 

EMS - DDC Replacing Pneumatic or 

Manual T-stat 182,231 741,679 

 

- 13 

EMS - DDC Replacing Programmable Tstat or digital system 649,905 2,112,190  

- 13 

EMS - Integrated Lighting Control 0 0 

 

- 10 

LED - non-reflector 29 6,791 

 

1.55 7 

LED - reflector 0 0 

 

- 7 

LED - MR16 0 0 

 

- 7 

Program modifications for 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

u Maximize the energy savings that can be attained with available DSM funds by providing 

schools incentives to upgrade lighting, HVAC, refrigeration, and any other energy consuming 

systems. 

u Provide educational and training materials to facility managers and trade allies in order to aid 

schools in other energy conservation projects. 

u Promote market transformation through APS trade allies, customer outreach and technical 

training classes. Provide incentives for other cost effective DSM projects by allowing schools to 

participate in any Non-Residential DSM Program including Direct Install. 

APS’s 2012 DSM Implementation Plan estimated that the EE savings from the Schools Program 

could reduce annual peak demand by about 4.4 MW, 33,000 MWh annually, and 464,000 MWh over 

the life of the measures expected to be installed in 2012. 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 
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Levels of Participation 

In this Reporting Period, APS paid incentives for 231 applications from schools, representing 72 

unique school districts and charter schools. Schools have had a very high level of participation in the 

program. While school districts comprise approximately 8% of APS’s Non-Residential energy use, 

program-to-date, schools have received 10% of the paid program incentive funds for their EE 

projects. 

The self-reported size of the school entity (based on the number of students) for approved 

applications paid in this Reporting Period are: 

Division Programs 

# of 

Applications # of Students 

Metro 

Express Solutions, Prescriptive Measures - Retrofit, Technical 

Assistance & Studies 7 36,421 

Metro Prescriptive Measures - Retrofit 1 34,865 

Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 24 33,288 

Metro 

Custom Measures - Retrofit, Express Solutions, New 

Construction - Whole Building Construction, Prescriptive 

Measures - Retrofit, Technical Assistance & Studies 23 31,603 

Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 7 25,226 

Metro 

Custom Measures - Retrofit, Prescriptive Measures - Retrofit, 

Prescriptive Measures - New Construction, Technical Assistance 

& Studies, Express Solutions 25 23,949 

Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 64 23,667 

Metro Prescriptive Measures - Retrofit 1 20,828 

Metro 

Prescriptive Measures - New Construction, Prescriptive 

Measures - Retrofit, Technical Assistance & Studies 19 14,731 

Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 3 13,546 

Metro Prescriptive Measures - Retrofit 1 11,114 

Non Metro 

Express Solutions, Technical Assistance & Studies, Prescriptive 

Measures - Retrofit 20 10,856 

Metro 

Custom Measures - Retrofit, Prescriptive Measures - Retrofit, 

Technical Assistance & Studies, Express Solutions 14 9,765 

Non Metro Prescriptive Measures - Retrofit 1 8,998 

Non Metro 

Custom Measures - Retrofit, Prescriptive Measures - Retrofit, 

Technical Assistance & Studies 3 8,764 

Metro Prescriptive Measures - Retrofit 1 8,125 

Metro Prescriptive Measures - Retrofit 6 7,014 

Metro Prescriptive Measures - Retrofit 1 6,656 

Metro Prescriptive Measures - Retrofit 1 6,299 

Metro Express Solutions 6 5,658 

Division Programs 

# of 

Applications # of Students 

Non Metro 

Custom Measures - Retrofit, Prescriptive Measures - Retrofit, 

Prescriptive Measures - New Construction 4 5,631 

Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 14 5,544 

Metro Prescriptive Measures - Retrofit 1 4,169 

Metro Prescriptive Measures - New Construction 1 3,484 
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Non Metro Express Solutions, Technical Assistance & Studies 4 3,246 

Non Metro 

Express Solutions, Technical Assistance & Studies, Prescriptive 

Measures - Retrofit 15 2,566 

Metro Prescriptive Measures - Retrofit 1 2,546 

Non Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 8 2,306 

Non Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 9 2,242 

Non Metro Prescriptive Measures - Retrofit 6 2,130 

Non Metro Prescriptive Measures - Retrofit 1 1,996 

Non Metro 

Custom Measures - Retrofit, Express Solutions, Prescriptive 

Measures - Retrofit, Technical Assistance & Studies 15 1,993 

Non Metro Prescriptive Measures - Retrofit, Technical Assistance & Studies 2 1,676 

Metro 

Custom Measures - Retrofit, Express Solutions, Prescriptive 

Measures - Retrofit, Technical Assistance & Studies 11 1,466 

Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 3 1,286 

Metro Prescriptive Measures - New Construction 1 1,254 

Metro Custom Measures - Retrofit 1 1,160 

Metro Express Solutions, Prescriptive Measures - Retrofit 2 1,138 

Metro 

Express Solutions, Prescriptive Measures - Retrofit, Technical 

Assistance & Studies 4 1,136 

Metro Prescriptive Measures - Retrofit, Express Solutions 2 940 

Non Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 5 897 

Metro Prescriptive Measures - Retrofit 1 832 

Metro Prescriptive Measures - New Construction 1 705 

Metro Prescriptive Measures - Retrofit, Express Solutions 2 693 

Metro Prescriptive Measures - Retrofit 1 692 

Metro Prescriptive Measures - New Construction 1 647 

Non Metro Prescriptive Measures - Retrofit 1 598 

Metro Express Solutions 1 502 

Non Metro Prescriptive Measures - Retrofit 1 480 

Non Metro Prescriptive Measures - Retrofit, Technical Assistance & Studies 3 469 

Metro 

Custom Measures - Retrofit, Prescriptive Measures - Retrofit, 

Technical Assistance & Studies 9 438 

Metro Custom Measures - Retrofit, Prescriptive Measures - Retrofit 2 413 

Metro Prescriptive Measures - Retrofit 1 407 

Metro Custom Measures - Retrofit 1 345 

Metro Express Solutions 1 300 

Non Metro Prescriptive Measures - Retrofit 2 273 

Metro Prescriptive Measures - Retrofit 1 262 

Metro Express Solutions 1 209 

Metro Prescriptive Measures - Retrofit, Technical Assistance & Studies 3 205 

Division Programs 

# of 

Applications # of Students 

Metro Express Solutions 1 204 

Metro Prescriptive Measures - Retrofit 3 203 

Metro Express Solutions 1 182 

Metro Prescriptive Measures - Retrofit 2 170 

Non Metro Prescriptive Measures - Retrofit 1 166 

Metro Express Solutions 1 137 
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Non Metro Prescriptive Measures - Retrofit 1 136 

Metro Prescriptive Measures - Retrofit 1 130 

Non Metro Prescriptive Measures - Retrofit 1 130 

Non Metro Prescriptive Measures - Retrofit 1 125 

Metro Prescriptive Measures - Retrofit 1 110 

Metro Express Solutions 2 105 

Metro Prescriptive Measures - Retrofit 1 50 

When an incentive application is received from a school district and deemed eligible, funding is first 

allocated from the Schools budget up to a maximum of $100,000. Any additional funding required to 

cover the application is then allocated from the appropriate Large Existing, New Construction or Small 

Business program budget. 

APS paid $5,751,732 in incentives to schools during the Reporting Period, of which $2,911,474 was 

paid from the Schools program budget. The remaining $2,840,258 was paid to schools from the 

Large Existing program and New Construction program budgets (see table below). 

Incentive Status by Fund for Active Applications Incentives Paid 

Schools Budget – Prescriptive, Custom, and Direct Install $2,793,187 

 

Schools Budget – Feasibility, Commissioning Studies, Benchmarking studies $118,287 

Schools Budget – Retro commissioning Studies $0 

Total School Funds $2,911,474 

Schools Funding Summary: Incentives Paid 

Schools – School Funds $2,911,474 

Schools – Large Existing Funds $2,644,217 

Schools – New Construction Funds $196,041 

Schools – Small Business Funds $0 

Total Paid to Schools $5,751,732 

In Decision No. 70637, the Commission ordered APS to continue tracking DSM applications resulting 

from studies for which incentives have been paid, and report the semi-annual and cumulative results 

of its program-to-date tracking efforts. Fifteen study incentives were paid from school funds during 

this Reporting Period; 14 feasibility studies were paid a total of $118,037, and one benchmarking 

study was paid a total of $250.00. Fourteen of these fifteen applications have resulted in energy 

efficiently projects to date. Since program inception 39 studies have been completed at schools; of 

those 39 studies, 35 have resulted in EE projects at schools. 

In Decision No. 73089, the ACC requested the type of measures installed after a study was 

completed. The following measures were installed for studies completed in 2012: chillers, 

economizers, HVAC, HVAC Controls, HVAC Tune Up Qualified Install, interior lighting, programmable 

thermostats and refrigeration. 
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Schools Direct Install 

Direct Install incentives were paid on 58 school projects during this Reporting Period. Of the 58 

projects, 45 were paid from the Schools fund and 13 were paid from Large Existing funds. Direct 

Install activities for this period are described in the Small Business Program report. 

Evaluation and Monitoring Activities and Results

u Conducted ongoing review and analysis of the participation database. 

u Continued to review and update the Non-Residential Measure Analysis Spreadsheets and 

Analytic Database. 

u Evaluated savings impacts of a sample of Custom projects through phone interviews and onsite inspection and metering. 

u Continued on-site metering of School lighting projects to verify operation hours, coincidence 

factors, diversity factors, and installation rates. 

u Reviewed invoices, interviewed program contractors, and conducted internet research to 

update cost estimates for high volume measures including linear fluorescents, occupancy 

sensors, unitary HVAC equipment, and chillers. 

u Conducted process and customer satisfaction surveys of Custom and Schools program 

participants. 

u Assessed attribution of Technical Assistance offerings on projects implemented outside of the 

program through document review and participant interviews. Results will support on-going 

net-to-gross and market effects research.

MER Adjusted Gross kW and kWh Savings 

The following table reflects the total energy and demand saving achievements for schools projects 

completed and paid during this Reporting Period. 

MER Adjusted kW and kWh Gross Savings 

kW Savings1 Annual kWh Savings Lifetime kWh Savings 

Schools – School Funds 3,834.3 24,522,802 340,383,135 

Schools – Large Existing Funds 3,793.7 24,759,118 336,962,176 

Schools – New Construction Funds 195.2 1,260,528 19,086,409 

Schools – Small Business Funds 0.0 0 0 

Total Attributable to Schools 7,823.2 50,542,449 696,431,721 

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

 
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Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Problems Encountered and Proposed Solutions 

No problems to report for this Reporting Period. 

Costs Incurred 

Program costs incurred during this Reporting Period are listed below: 

DSM Program 

Rebates & 

Incentives 

Training & 

Technical 

Assistance 

Program 

Implementation* 

Consumer 

Education 

Program 

Marketing 

Planning 

& Admin. 

Program 

Total Cost 

Schools 2,911,474 56,097 777,335 $1,107 69,114 82,051 3,897,179 

All implementation expenditures are contractor expenses. 

A breakdown of all implementation contractor expenses for this period and program:

DSM Program IC- Implementation IC- Marketing IC- Education IC- Technical Services IC- Total Cost 

Schools 777,335 69,114 1,107 56,097 903,653 

Findings from Research Projects 

There were no findings from any research projects during this Reporting Period. 

Other Significant Information 

In addition to many of the marketing outreach activities described for the large existing program, 

marketing activities associated with the Schools program centered on five areas of focus: 

1. Trade Ally Development: Trade Ally recruitment and support efforts focused on improving 

program knowledge by providing opportunities for development and training. Outreach efforts 

focused particularly on the state-approved ESCOs that have contracts for all the stimulusfunded projects and other ESCOs, since enabling legislation allows districts to use 

performance contracting many school districts take advantage of this option. 

2. Customer awareness and project generation: During this Reporting Period, twenty-nine 

contacts were made including phone calls, e-mails and meetings with districts to identify 

potential new projects. Staff supported a booth at the AASBO summer conference in Tucson, 

making contacts with school officials as well as contractors

3. Coordination with the Schools Facility Board (“SFB”): Staff attends all SFB meetings to 

stay abreast of school EE projects, both funding and progress. While ARRA funding has been 

fully dispensed, some ARRA dollars were reallocated due to unused funds in certain districts 

or state agencies. In addition, some of the emergency repairs approved by SFB include 

equipment covered by program specifications such as cooling systems. As these are 

approved, Solutions for Business follows up with the districts. 

During this Reporting Period, Solutions for Business staff met with the SFB, continuing the 

momentum behind the Solutions for Business HVAC Tune-up Program. Wilson and Mayer 

School Districts participated, with more slated for 2013. 
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4. Coordination with the APS Schools Key Account Manager. Program staff has coordinated 

with the APS Relationship Managers (“RMs”) who have schools assigned to them, to maximize 

the customer’s time and value during planned meetings. The partnership with the APS’s 

Schools RMs has facilitated troubleshooting of other related customer issues as well as the 

cross-selling of other DSM programs. 

5. Attended conference and meetings of the Arizona Association of School Business 

Officials. Program staff has attended AASBO Bi-monthly meetings where school business 

and finance professionals meet. Latest news on legislative and financial issues pertaining to 

schools is disseminated at these meetings and contacts have been made with school business 

officials. 

 
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PROGRAM: ENERGY INFORMATION SERVICES (“EIS”) PROGRAM

Description 

The EIS Program, which was first made available to APS customers in November 2006, helps large 

customers (>100 kW) save energy by giving them a better understanding and control of their facilities’ 

electric use. EIS provides data not only regarding usage and demand, but also identifies when, 

where and how much power is used in specific areas of each facility. This detailed information allows 

customers to fine-tune equipment use and operations and to document the impact of those changes. 

Participating customers monitor their electric usage through a web-based energy information system 

that allows them to receive historical (up to previous day) 15-minute usage and demand graphics. 

This information can be used to improve or monitor energy usage patterns, reduce energy use, 

reduce demands during on-peak periods and better manage overall energy operations. 

APS is encouraging customers to take advantage of EIS by providing a one-time incentive of up to a 

maximum of $12,000 or 75% of the cost of installing metering and communications equipment 

necessary to participate in the program. 

Program Modifications 

No modifications were made during this Reporting Period. Program modifications for 2013, where 

applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

u Provide monthly energy usage information to participating large Non-Residential customers. 

u Participants identify strategies to lower energy cost by reducing energy usage and demand. 

u Educate EIS program participants about utility rate concepts and how managing or reducing 

their energy consumption through EE measures and operational practices can reduce their 

energy expenses. 

u Teach participants how to download billing history information and create spreadsheets to 

chart and graph their energy use, as well as to identify consumption trends and savings 

opportunities. 

u Educate EIS participants about creating reports for management that justify energy-efficient 

capital expenses intended to produce operations and maintenance savings; and 

u Facilitate analysis of what-if scenarios to help large facility managers assess the benefits of 

capital improvements or operating adjustments to improve EE. 

u Customers ultimately save electric (kWh) energy through simple changes in operations and 

maintenance (low/no cost savings measures). 

Programs or Measures Terminated 

No programs or measures were terminated during this Reporting Period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

 
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Levels of Participation 

No new customers were added to the EIS program during this reporting period. Although no new 

customers or meters were added during the 2012 reporting period, additional customers and meters 

have been added in the first quarter of 2013. A total of 44 customers now participate in EIS, 

representing 190 meters. 

Evaluation and Monitoring Activities and Results 

u Conducted ongoing tracking and review of the EIS program participation data. 

MER Adjusted Gross kW and kWh Savings 

Meters Est. Measure Life 

Years 

kWh Savings per 

Year 

Lifetime kWh 

Savings kW Demand Savings 

0 5 0 0 0 

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Problems Encountered and Proposed Solutions 

No EIS meters were added in 2012. However, there is a strong pipeline of interested customers going 

into 2013. Over the life-time of this program, APS anticipates it to be very cost effective. 

Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

DSM Program Rebates & 

Incentives

Training & 

Technical 

Assistance

Consumer 

Education

Program 

Implement*

Program 

Marketing

Planning & 

Admin.

Program 

Total Cost

Energy Information Services $0 $0 $1,170 $27,997 $0 $1,605 $30,772 *All implementation expenditures are contractor expenses. 

A breakdown of all implementation contractor expenses for this period and program:

DSM Program IC- Implementation IC- Marketing IC- Education IC- Technical 

Services IC- Total Cost 

Energy 

Information 

Services 

$27,997 $0 $0 $0 $27,997 

Findings from Research Projects 

Nothing to report during this Reporting Period. 

Other Significant Information 

Nothing to report during this Reporting Period. 
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PROGRAM: CODES AND STANDARDS SUPPORT 

Description 

The Energy Codes and Appliance Standards (“C&S”) Initiative encourages energy savings by 

supporting the adoption of higher building energy codes and appliance standards in jurisdictions 

throughout the APS service area by working with code officials, building professionals and other 

market actors to develop strategies for achieving code compliance cost effectively. 

C&S can be one of most cost-effective ways of promoting EE. APS believes C&S activities may be 

utilized to deliver low cost energy savings while supporting Arizona building officials, the construction 

community, customers and stakeholders. APS will support C&S activities with a multifaceted 

approach that provides unbiased support, information, resources, and expertise to jurisdictions within 

the APS service area. 

u Residential and Commercial Energy Codes - Activities are intended to support energy code 

adoption committees, building officials, the builder community, and interested stakeholders. 

Targeted activities include providing technical support, research, subject matter expertise, 

resources, and training. Training classes will be customized to jurisdictional needs. 

u Appliance Standards – Activities will target appliance standards with recently updated 

rulemakings and standards where rulemakings are yet to begin. APS will target and quantify 

savings created from recently updated standards where current APS EE programs provided 

incentives for many years creating market readiness for the new standard. To target future 

appliance standard savings, APS will begin participating in DOE rulemaking proceedings for 

appliance standards where rulemakings are expected to begin and will likely make a significant 

impact in Arizona. 

Program Modifications

No modifications were made during this reporting period. Program modifications for 2013, where 

applicable, are included in APS’s 2013 Implementation Plan. 

Program Goals, Objectives and Savings Targets 

The goal of this project was to quantify through MER evaluation energy savings that resulted from 

Title 44 requiring dual speed pumps with new pool pump installations. Project objectives were to 

develop a C&S Support implementation strategy and framework. 

Programs or Measures Terminated 

No programs or measures were terminated during this reporting period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan.

Levels of Participation

Pool pump savings estimates are based on an estimated 3,858 pool pumps affected by the code 

change. 
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Evaluation and Monitoring Activities and Results 

Commission Decision No. 73089, required APS to file a MER Report for Codes and Standards in its 

2012 Annual Progress Report. APS’s Codes and Standards MER report contains confidential 

information and will be submitted once a protective agreement is executed with Commission Staff. 

MER Adjusted Gross kW and kWh Savings

DSM Project Total Annual MWh Savings 

Pool Pump Legislation 2,332 

MER savings are adjusted for line losses (energy 7.0%, demand 11.7%) and a capacity reserve factor of 15%. 

Benefits and Net Benefits/Performance Incentive Calculation

The MER adjusted net benefits and performance incentive are provided in Tables 5 and 6. 

Problems Encountered and Proposed Solutions 

No problems encountered during the reporting period. 

Costs Incurred 

Costs incurred for this program during this Reporting Period are listed below: 

Findings from Research Projects 

Key Assumptions and methodologies for estimating pool pump savings are included in Appendix A.

Other Significant Information 

Key Activities/Code Support Events in 2012 included the following education and outreach: 

u Hosted with partners an Energy Code Training Workshop 

u Sponsor of the AZBO Spring Training Institute 

u Co-sponsored a Manual J Training workshop with SRP 

u Provided scholarships for building officials to attend the Codes Training Track of the Energy 

and Environmental Building Alliance 

u Provided technical assistance and support to the City of Yuma 

u Attended jurisdictional meetings throughout the APS service area supporting code update 

activities 

 Incentives Training & 

Technical 

Assistance 

Consumer 

Education 

Program 

Implementation 

Program 

Marketing 

Planning 

& Admin. 

Program 

Total 

Cost 

Codes & 

Standards 

Support 

$0 $0 $0 $70,159 $0 $21,541 $91,700 

DSM Program Implementation 

(Contractor)

Implementation 

(APS) Program Implementation

Codes & Standards Support $0 $70,159 $70,159 
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u Built alliances and collaborations with key industry partners to coordinate energy code and 

appliance standard activities 

Advertising & Marketing Activities 

No advertising or marketing activities were undertaken in this Reporting Period. 

 
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PROGRAM: APS PEAK SOLUTIONS® PROGRAM

Description 

APS Peak Solutions® is a commercial and industrial demand response (“DR”) program for APS's 

Yuma and Phoenix metro customers utilizing direct load control and manual load reduction. 

The program began on June 1, 2010 and is available for the summer months of June through 

September between 12:00 noon and 8:00 p.m. (Sunday - Saturday) daily. Customers have the option 

of being notified either ten minutes or two hours prior to the start of a Peak Solutions® event. Events 

are limited to minimum of one hour and maximum of six hour per day and 80 event-hours during the 

season. The program is required to have one test at the start of the season between June 1 and July 

15 lasting from four to six hours. 

Customers are paid an incentive check at the end of the season for their load reduction amount 

based on $/kW or $/ton of air conditioning. 

Program Modifications 

No program modifications were made during this Reporting Period. Program modifications for 2013, 

where applicable, are included in APS’s 2013 Implementation Plan. 

Levels of Participation 

Approximately 2,900 customers are enrolled in the program. 

MW and MWh Savings Targets 

In 2012, a 63 MW load reduction provided 275,940 MWh of annual savings realized from January 

through December 2012. Load reduction and savings targets are summarized in Table 8 – Demand

Response Program/Initiatives.

Programs or Measures Terminated 

No programs or measures were terminated during this reporting period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Evaluation and Monitoring Activities and Results 

During this reporting period two Peak Solutions® tests were called; one in June and the other in 

August. 

Problems Encountered and Proposed Solutions 

The expected load reduction goal for this program was not met in 2012. APS is currently working 

with the implementation contractor to address and resolve program issues going forward. 

 
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Costs Incurred 

For this Reporting Period Peak Solutions® has spent $2,587,673. 

Market Outreach: 

Customer program enrollment has been accomplished primarily by door-to-door sales by APS’s third 

party vendor, Comverge, Inc. 
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PROGRAM: CRITICAL PEAK PRICING – GENERAL SERVICE AND RESIDENTIAL

Description 

Critical Peak Pricing, or its marketing name of Peak Event Pricing, is a DR program for both APS’s 

business (or General Service) and Residential customers in the Yuma and Phoenix metro areas 

utilizing manual load reduction. 

CPP is a two-year Pilot program which became effective on January 1, 2010 and runs through 

January 1, 2012. On June 24, 2011, APS filed and was granted an extension to extend the 

Residential program for another two years through January 1, 20141

The program provides a price signal to incent customers to reduce their usage during events initiated 

by APS. CPP events will take place during June through September, weekdays between 2 p.m. and 

7 p.m. (Monday through Friday), excluding holidays. Customers will be notified of an event by 

telephone or e-mail by 4:00 p.m. of the day prior to the CPP event. Peak Events are limited to 80 

hours during the season. APS is required to initiate a minimum of six events and a maximum of 18 

events. 

. 

Customers receive a kWh discount incentive off of their existing rate for all of the electricity usage 

during the program months of June through September. 

Program Modifications 

No program modifications for this Reporting Period. Program modifications for 2013, where 

applicable, are included in APS’s 2013 Implementation Plan. 

Levels of Participation 

Approximately 1,066 Residential and one business customers are enrolled in the program. Most 

business customers have found APS Peak Solutions® more financially and operationally beneficial. 

MW and MWh Savings Targets 

The program is estimated to provide a 2012 load reduction amount of 0. 6 MW. The 0.6 MW load 

reduction will provide 2,452 MWh of annual savings. Load reduction and savings targets are 

summarized in Table 8 – DR Program/Initiatives: 2012 Load Reduction and Energy Savings: January 

– December, 2012. 

Evaluation and Monitoring Activities and Results 

Sixteen CPP events were called during this Reporting Period, APS is currently evaluating the results 

but expects an average of 560 kW load reduction/customer per event. 

 

Problems Encountered and Proposed Solutions 

No problems are reported for this Reporting Period. 

 

1

 Docket No. E-01345A-11-0250 (June 24, 2011). 
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Costs Incurred 

Program implementation costs are not specifically tracked. 

Market Outreach: 

A residential email campaign was held from March-April with the intent of getting customers to sign 

up for the service plan. 

 
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PROGRAM: TIME OF USE (“TOU”) RATES INCLUDING SUPER PEAK PRICING (“SPP”)

Description 

TOU rates are designed 1) to reflect the time variation in the cost of producing electricity, to more 

accurately match those costs with the service being provided to the customer thereby encouraging 

efficient use of energy, and 2) to encourage customers to reduce consumption during peak hours or 

to shift energy usage to off-peak periods. 

APS currently offers five Residential TOU rates: 

a. Two "Series 1" rates that have on-peak hours from 9:00 a.m. to 9:00 p.m. and have been 

offered since 1982. The Series 1 rates were closed to new customers on January 1, 2010,

b. Two “Series 2” rates that have on-peak hours from 12:00 pm Noon to 7:00 p.m. and have 

been offered since 2006. These rates offer customers 40% fewer on-peak hours, 

c. One Super-Peak Pricing TOU rate that went into effect on January 1, 2010. The SPP 

periods are pre-determined and set forth in the rate schedule rather than communicated to 

the customer on a day-ahead basis as with the CPP. Participating customers will pay 

higher charges during the "Super-Peak" periods, but will pay lower charges during off-peak 

periods. The "Super-Peak" period is 3:00 p.m. to 6:00 p.m., Monday thru Friday during 

June, July, and August (excluding holidays). 

APS is offering two new school rates which contain an additional shoulder time period which may 

benefit customers who can shift loads from on-peak times. 

Rate Modifications 

No modifications have occurred in the rates. 

Levels of Participation 

Approximately 534,000 customers are enrolled in the TOU rates of which 640 are super peak 

customers. As of December 2012, five schools were enrolled in the new school rates. 

MW and MWh Savings Targets 

The program is estimated to provide a 2012 load reduction amount of 117.62

 MW from the Series 1 

and 2 rates and 0.57 MW from the super peak rate. The 118.2 MW total load reduction will provide 

517,585 MWh of annual savings from January through December 2012. Load reduction and savings 

targets are summarized in Table 8 – DR Program/Initiatives: 2012 Load Reduction and Energy 

Savings: January – December 2012. 

Evaluation and Monitoring Activities and Results 

No evaluation of TOU rates have been performed to date other than customer count. 

 

2 The load reduction estimate is for 2011; as the estimate for 2012 was not finalized at the time of filing this report. 
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Problems Encountered and Proposed Solutions 

No problems have been encountered for this Reporting Period. 

Costs Incurred 

For this Reporting Period TOU Rates has spent $10,318. 

Market Outreach: 

The TOU market outreach is outlined below: 

1. Bill Message (April) 

2. Lifestyles Newsletter April, May and October 

3. Rate Brochures 

 
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PROGRAM: HOME ENERGY INFORMATION PILOT

Description 

On March 3, 2011, the Commission approved the Company’s Home Energy Information (“HEI”) Pilot.3

APS’s HEI Pilot is designed to test available home area network technologies and determine 

communication devices, DR strategies, and the mix of “smart” home applications that can be most 

effectively employed in a Residential setting. In addition, the HEI Pilot will assess customer 

acceptance, value, and frequency of usage of in-home energy displays or other communication 

devices designed to assist customers in managing their daily energy usage. 

The Pilot was previously planned to be conducted over the two summer seasons of 2011 and 2012 

allowing the Company time to choose technology vendors, solicit Residential participants, install 

devices and communications systems, and determine measurement and evaluation techniques. APS 

was granted an extension of time to implement the HEI Pilot in Commission Decision No. 73089 (April 

4, 2012) through 2013 with no additional funding. 

In APS’s 2013 Implementation Plan,4

 APS requested that HEI Pilot Programs A-D be extended for an 

additional year, through the end of 2014. The extension request includes budget changes and was 

made to allow for two full successive summers as part of its MER Study process in order to properly 

evaluate the persistence and validity of the individual technology assessments, as well as the 

associated customer behavior patterns providing the essential and comprehensive information to 

develop a future full-scale program. APS filed a status report with the Commission on the HEI Pilot 

on December 31, 2012.5

APS is deploying the following five technology assessment programs as part of the HEI Pilot: 

A. Critical Peak Pricing with Customer Control Device 

B. In-Home Energy Information Display 

C. Direct Load Control 

D. “Smart” Communication Devices 

E. Pre-Pay Energy Service. 

The data collected and analyzed in the HEI Pilot will allow APS to better design and implement future 

DR, EE, and smart grid applications. 

Program Modifications 

No modifications have been made during this Reporting Period. Program modifications for 2013, 

where applicable, are included in APS’s 2013 Implementation Plan. 

Levels of Participation 

 

3 Decision No. 72214 (March 3, 2011). 4

 Docket No. E-01345A-12-0224. 

5

 Docket No E-01345A-10-0075. 
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For the HEI technology assessment programs A through D, no customer enrollment has occurred to 

date. APS anticipates customer recruitment to begin in the second quarter of 2013. 

For the HEI Pre-pay assessment, APS successfully launched the Pre-Pay Energy Service program in 

July 2012. As of December 2012, 1180 customers are participating in the APS Pre-pay Pilot 

Program. 

MW and MWh Savings Targets 

No load reduction or MWh savings will be considered until data from the Pilot is available. 

Programs or Measures Terminated 

No programs or measures were terminated during this reporting period. Programs or measures 

proposed for termination in 2013, where applicable, are included in APS’s 2013 Implementation Plan. 

Evaluation and Monitoring Activities and Results 

APS has selected Navigant Consulting to conduct the HEI Pilot MER evaluation. The companies are 

working together to set up the Pilot measurement and evaluation parameters. 

Pursuant to Commission Decision No. 73223, APS is monitoring bill estimation for prepay customers 

and will provide those results in a future report. 

Problems Encountered and Proposed Solutions 

APS continues to work with its project partners on software development and system integration 

efforts. Multiple internal and external systems are required to communicate in order to support all five 

Pilot categories and their corresponding technologies. The current schedule has been divided into 

three distinct phases. 

Pre-pay Phase 

u Pre-pay Energy Services 

HEI Phase 1 – Broadband Communications 

u Critical Peak Pricing with Customer Control Devices 

u Direct Load Control 

HEI Phase 2 – AMI Communications 

u In-Home Energy Information Display 

u Direct Load Control 

u Smart Communication devices 

Schedule: 

Pre-pay Phase: Pre-Pay Energy Service program successfully launched in the third quarter 2012. 

HEI technology assessments A through D: 
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u APS conducted extensive laboratory tests first quarter 2012, and made a number of routine 

and typical modifications to the technology to support actual field deployment. 

u Second quarter 2012, APS completed field trials, with pre-Pilot volunteers, to demonstrate field 

performance. This field experience identified a number of deficiencies and interdependencies 

between hardware and software, APS systems, vendor support solutions and system 

upgrades, which were not experienced in prior lab testing. 

u APS and partners launched an intensive study in Q3 2012 to determine the root cause of the 

field difficulties. The investigations concluded that the extent and broad diversity of APS’s 

TOU rate choices created new scenarios that exposed hardware and software limitations. 

u Due to necessary enhancements, in APS’s 2013 Implementation Plan requested Commission 

approval of (i) an additional one-year extension for programs A through D and (ii) an increased 

budget for the Pilot.6 APS remains confident that these programs will continue to provide 

valuable data regarding the complex interaction between technologically advanced systems 

and customer acceptance of these technologies. 

u Phase 1 (Broadband Communications): Design, development and integration discussion were 

completed fourth quarter 2012. Completion of integration will occur Q1 2013, and field testing 

will begin in early Q2 2013. APS will begin customer recruitment in Q2 2013, followed with 

customer deployment. 

u Phase 2 (AMI Communications): Design, development and integration discussion were 

completed fourth quarter 2012. Completion of integration first quarter 2013, and begin fieldtesting in early second quarter 2013, for customer recruitment in second quarter 2013, and 

for customer deployment second quarter 2013. 

Costs Incurred 

As of December 2012, HEI Pilot has spent $922,986 of the $2,835,000 non capital-related budget, 

and $354,424 of the $698,837 capital-related carrying costs. 

Market Outreach: 

In 2011, APS completed all Pre-Pay stakeholders’ collaborative workshops, three additional 

collaborative meetings along with, conducting four customer focus groups to gather customer 

feedback relating to marketing and customer educational messages for the Pre-Pay Pilot program.

 

6 See APS’s 2013 Demand Side Management Implementation Plan Supplement, filed on December 13, 2012. 
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AMERICAN RECOVERY AND REINVESTMENT ACT 

APS partnered with City of Phoenix on Energize Phoenix. This project is targeted to energy-efficient 

retrofits with Residential and Non-Residential customers. The City of Phoenix is leveraging the 

incentives with the APS Home Performance Program and Solutions for Business program. At the 

end of this Reporting Period, the boundaries of Energize Phoenix were expanded, increasing both the 

businesses and residences eligible for the program. 

To date, over 343 businesses have benefited through the Energize Phoenix program. 
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FINANCING PROGRAMS 

NON-RESIDENTIAL ENERGY EFFICIENCY FINANCING 

On January 26, 2010, the Commission issued Decision No. 71460, which approved the NonResidential Customer Repayment Financing option. The option was approved for schools, 

municipalities and small businesses. Decision No. 72088 expanded eligibility for the financing 

program to include all Non-Residential customers. 

APS has partnered with National Bank of Arizona (“NBAZ”) to offer this financing option. The 

Financing option was launched in May of 2010. More than half of the program trade allies have 

participated in financing training. The program developed educational materials for bankers, 

customers and trade allies to facilitate the process. Program staff meet regularly with NBAZ staff to 

discuss promotional opportunities. 

 

Category 

Number of 

Loans 

Total Loan 

Value 

Amount in 

Default 

Large Existing 5 $133,328 0 

Small 3 $ 1,180 0 

Schools 0 $0 0 

Total 8 $134,508 0 

RESIDENTIAL ENERGY EFFICIENCY FINANCING 

On September 1, 2010, the Commission issued Decision No. 71866, which approved the Residential 

Energy Efficiency Financing (“REEF”) Program. Through this program, APS customers who 

participate in the Home Performance with ENERGY STAR® can gain access to financing for energy 

efficient home improvements. 

Launched in February 2011, APS partnered with NBAZ to deliver the REEF program throughout the 

APS territory. 

During this Reporting Period, APS introduced a promotional rate of 1.99% for the month of August. 

Under the promotional rate, APS experienced a steep increase in customer participation, equating to 

30 new loans. 

One customer defaulted in 2012 and APS will continue to monitor defaults closely. 

Category Number of Loans Total Loan Value

Loans issued 

Jan - Dec. 31, 2012 95 $588,529.36 

Jobs in default 1 $2,154 

Jobs 

deemed unrecoverable 0 0 
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PORTFOLIO PLANNING: DSM MEASUREMENT, EVALUATION AND RESEARCH

Description 

On April 12, 2006 in Decision No. 68648, the ACC approved funding for MER activities to assist in 

verifying the impact and cost effectiveness of APS’s DSM programs. As required per Decision No. 

68648, APS filed MER program plans for Staff’s review on August 16, 2007, with the exception of the 

EIS MER research plan that was filed on June 24, 2008. 

Navigant Consulting provides MER Services for APS’s DSM programs. These Measurement and 

Evaluation activities include, but are not limited to: 

u Performing process evaluation research to indicate how well programs are working to achieve 

their objectives; 

u Performing impact evaluation research to verify that energy-efficient measures are installed as 

expected; measuring savings on installed projects to monitor the actual program savings that 

are achieved; and conducting research activities to refine savings and cost benefit models and 

identify additional opportunities for EE; 

u Performing and tracking savings measurements to monitor the actual program savings that are 

achieved; and 

u Researching additional opportunities for EE. 

The approach for measurement and evaluation of the DSM programs is to integrate data collection 

and tracking activities directly into the program implementation process. 

Program Modifications

No Program modifications were made during this reporting period. Program modifications for 2013, 

where applicable, are included in APS’s 2013 Implementation Plan. 
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