APS RFP Seeks Innovative Demand-side Resources to Accelerate Carbon-free Commitment

Energy-saving products move APS customer experience closer to 100% clean

With more energy-saving technology available than ever before, Arizona Public Service Co. (APS) is poised to add new smart customer products to its already comprehensive customer energy efficiency and demand-side management program portfolio. APS’s newly issued Distributed Demand-side Resources (DDSR) Request for Proposals (RFP) is seeking aggregated clean energy resources that will create more residential and business customer opportunities to manage energy costs, incentivize energy use when solar resources are abundant, conserve energy when demand is high and maintain grid reliability.

“We’re passionate about delivering a high-quality customer experience and incorporating smart conservation strategies that conveniently fit customer needs,” said Daniel Haughton, APS director of Customer to Grid Solutions. “Our team is focused on increasing access to customer-sited demand-side products, planning for their seamless integration into our grid and adding resources that will help power APS toward reaching a 100% carbon-free energy mix by 2050.”

APS is seeking proposals for products that aggregate distributed technologies to provide systemwide capacity resources from 5-40 megawatts and locational resources of 1-5 megawatts. This RFP is open to all eligible distributed demand-side technologies, including both dispatchable and non-dispatchable resources, which can include products such as energy storage, smart thermostats, managed electric vehicle charging stations and connected water heater and pool pump controls. Proposed projects must begin service no earlier than June 1, 2022, and no later than June 1, 2024. APS will allow projects to be phased in during that period as long as they achieve full capacity by the latter date.

This RFP was developed with input from stakeholders to support the future development of a DDSR Aggregation Tariff, which was proposed in a recent Arizona Corporation Commission decision. The RFP will help APS gain market information on DDSR technologies and the value streams they can bring to customers and the grid, including reliability, cost savings, locational value and grid support.

APS has already successfully integrated new and emerging energy efficiency and demand-side management products into its wide-ranging portfolio of customer technology programs to provide dependable methods of load reduction. Among these customer resources is APS Cool Rewards, a nationally recognized voluntary energy conservation program that provides residential customers a way to manage energy use on hot summer days. APS Cool Rewards, now with more than 44,000 enrolled thermostats, and APS Marketplace, a one-stop online shop for competitively priced smart home products, are part of the utility’s signature programs recognized with the ENERGY STAR Partner of the Year Award by the Environmental Protection Agency (EPA) for delivering innovation in technology, customer service and energy efficiency.

The entire RFP process is monitored and reviewed by a third-party independent monitor. Important information regarding respondent registration and proposal requirements for the RFP can be found at aps.com/rfp.

APS serves more than 1.3 million homes and businesses in 11 of Arizona’s 15 counties, and is a leader in delivering affordable, clean and reliable energy in the Southwest. The company is committed to serving customers with 100% clean power by 2050. As owner and operator of Palo Verde Generating Station, the nation’s largest producer of carbon-free electricity, and with one of the country’s most substantial renewable energy portfolios, APS’s current energy mix is 50% clean. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

This press release contains forward-looking statements based on current expectations. These forward-looking statements are identified by words such as “estimates,” “expects” and similar words. Because actual results may differ materially from expectations, we caution you not to place undue reliance on these statements. A number of factors could cause future results to differ materially from outcomes currently expected or sought by us. A discussion of some of these risks and uncertainties is contained in our Annual Report on Form 10-K and is available on our website at pinnaclewest.com, which you should review carefully before placing any reliance on our forward-looking statements or disclosures. We assume no obligation to update any forward-looking statements, except as may be required by applicable law.

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