APS exploring new tariff for aggregated demand-side resources, issues RFP

Credit: APS

Arizona Public Service Co. (APS) is hoping that tapping into demand-side technologies will help it meet its clean energy goals. To that end, the utility recently issued a Distributed Demand-side Resources (DDSR) Request for Proposals (RFP).

Through the RFP, APS 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.

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.

“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.”

New Tariff

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 portfolio of customer technology programs to provide dependable methods of load reduction. Among these customer resources is APS Cool Rewards, a 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 are here.

APS serves more than 1.3 million homes and businesses in 11 of Arizona’s 15 counties.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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