Southwest Energy Efficiency Project

Arizona

Utility Energy Efficiency Programs
Updated: January 2008

Overview

Arizona has seen a high growth rate in population of 3.3% per year on average from 2000 – 2006. During the same time, the average growth rates per year for electricity use and natural gas were 3.3% and 10.6%, respectively.

The state is served by two investor-owned utilities – Arizona Public Service Company (APS) and Tucson Electric Power Company (TEP). APS is the largest electric utility with over 1 million customers in 11 of the 15 counties in the state. TEP serves nearly 375,000 customers in southern Arizona. Thirteen electric cooperatives serve the remaining electric customers in Arizona. Natural gas is provided by Southwest Gas and UniSource Energy Services.

Over the last several years Arizona’s utilities have significantly expanded their energy conservation program offerings. Below is a list of the programs offered by each utility:

Electricity Demand-Side Management
Natural Gas Demand-Side Management
- Southwest Gas

(scroll down to view details)

Electricity Demand-Side Management

Arizona Public Service (APS)

Below is a list of energy efficiency programs currently offered by APS for their residential and business customers:

Energy Efficiency Solutions for Business
This program makes rebates available to commercial, industrial, school, and state government customers for such energy efficiency technologies as lighting and lighting controls and sensors, chillers, air conditioners, programmable thermostats, motors, and commercial refrigeration equipment. For details, click here.
- Prescriptive Incentives are available to business customers for both retrofit and new construction projects. Incentive levels for the qualifying measures vary depending on the technology. For details, click here.
- Custom Incentives are available to large business (>200 kW demand) customers for retrofit and new construction projects that incorporate energy saving measures not included in the list of qualified prescriptive measures. For details, click here.
  
  APS also provides incentives for the partial reimbursement of feasibility studies, design assistance, commissioning, and retro-commissioning services intended to improve the energy efficiency of a new or existing facility. Large business customers are eligible to apply for up to 50 percent of the qualifying study cost.
Energy-Efficient Air Conditioning Rebate Program
APS offers a rebate for its residential customers to upgrade their AC units. To be eligible, AC units must meet both the SEER and EER values. This incentive is only offered for replacement equipment; new construction is not eligible. For details, click here.
ENERGY STAR® Homes
APS has teamed with a number of Arizona homebuilders to create the ENERGY STAR® Homes program. APS collaborates with the homebuilders to ensure that these ENERGY STAR Homes meet or exceed the stringent 2006 EPA ENERGY STAR energy efficiency standards. Energy efficiency features incorporated into these homes include improved insulation, high-efficiency air conditioning systems, highly-efficient lighting fixtures and appliances, and energy-efficient Low-E windows, amongst others. Upon completion, a certified independent contractor tests the homes to ensure they are performing to the ENERGY STAR standard. For details, click here.
Discounts on Energy-Efficient Lighting
While supplies last, APS has partnered with local retailers to offer discounts on compact fluorescent lighting. Participating retailers include Ace, Costco, Home Depot, True Value and Walmart. For a full list of stores and details on the program, click here.

Tucson Electric Power Company (TEP)

Below is a list of energy efficiency programs currently offered by TEP for their residential and business customers:

Time-of-Use Rates (TOU)
With the TOU program, business and residential customers receive a reduced electric rate for shifting their energy use from peak periods (Monday through Friday from 9am – 5pm) to off-peak hours. TEP replaces your conventional meter, free of charge, with a meter that tracks the times of day you use electricity, then calculates the kilowatt-hour rates for those periods. For details for businesses, click here. For details for residential customers, click here.
Low-Income Weatherization Program
The TEP Weatherization program's aim is to reduce low-income customers' energy use, reduce their electric and gas bills and improve their comfort. Program partners include the Tucson Urban League and Pima County, who have been assisting low-income residents in reducing energy use and lowering their utility bills by implementing year-round weatherization measures—at no cost to eligible customers. For details, click here.
Guarantee Home Program
The Guarantee Home program utilizes a systems approach to home construction, addressing the health and safety, comfort, durability, and energy efficiency of new homes using the latest building science information. TEP has developed construction requirements that each home must meet, and all homes are inspected at least three times during construction to verify that these requirements have been met. Homeowners participating in the Guarantee Program automatically receive the lowest electric rate offered by TEP, with the potential for customers to save up to 35% on their electric bill.

TEP guarantees the home's heating and cooling operating costs, plus overall comfort, for up to five years, based on the typical kilowatt hour (kWh) usage for the individual homes. If the annual cost exceeds the pre-determined amount, TEP credits the difference to the homeowner. More than 50 Tucson-area builders participate in the Guarantee Home Program. For details, click here.

Salt River Project (SRP)

Certified Homes Program
Salt River Project’s (SRP) Certified Homes program recognizes energy-efficient subdivisions in metropolitan Phoenix that meet specific electrical energy efficiency requirements. All of the homes are required to have high-efficiency electric heat pumps and annual energy consumption must not exceed a maximum standard (based on kWh/square foot) as determined by SRP’s Cost Analysis Program. Certification is determined by a point system of component trade-offs. For details, click here.
PowerWise Homes Program
Launched in June 2005, SRP’s PowerWise Homes™ program works to provide participating homebuilders significant market exposure; heighten consumer awareness of energy-efficient homebuilding techniques, materials, and appliances; and spur demand for energy-efficient homes. Homes built under SRP PowerWise Homes requirements will be 35% more efficient than the federally recognized 1995 Council of American Building Officials Model Energy Code, and use an average of 5,900 fewer kilowatts per year compared to homes built to current municipal building codes. For details, click here.
Lighting Solutions
Through its Lighting Solutions program, SRP provides its commercial consumers with a free on-site analysis of their lighting system, which includes recommendations and associated costs for making lighting improvements. Businesses also can work with SRP contractors for the purchase and installation of energy-efficient fixtures, ballasts, lamp fixtures, lamps and controls. SRP offers customers a one-year guarantee on parts and labor. For details, click here.
PowerWise Cool Cash Rebate Program
Current SRP residential electric customers who replace an existing central heat pump or central air conditioner with a new high-efficiency central heat pump or central air conditioner are eligible for a rebate. Rebates are determined by the type and efficiency of the system installed. Qualifying systems must be installed by a licensed contractor by April 30, 2008. For details, click here.
Cools Roof Incentive Program
SRP is offering an incentive of $0.05 per sq. ft. of cool roof installed, up to a maximum payment of $5,000 per project. A cool roof system utilizes specially manufactured, light-colored materials to reflect the sun's rays, resulting in roof surface temperature staying within a few degrees of ambient air temperature. A cool roof can maintain its temperature within about 10 degrees of ambient temperature while a standard, darker roof can be as much as 70 degrees hotter. For details, click here.
Retrocommissioning Incentive Program
SRP is offering this program to assist their commercial customers with reducing energy usage and enhancing their operational efficiency. SRP is offering an incentive to cover 50% (maximum of $15,000) of the cost of an initial retrocommissioning plan for qualified customers. Retrocommissioning (RCx) is a systematic method of identifying operational and performance improvements in HVAC and control systems that optimizes existing systems, rather than relying on major equipment replacement. This is accomplished by uncovering problems, defects, and deficiencies within existing systems and working with retrocommissioning firms and contractors to bring the systems back to their initial design intent and up to optimal performance. For details, click here.

Dixie-Escalante Rural Electric Cooperative

This cooperative is offering rebates for electric heat pump, electric water heater, or duel fuel heating and cooling to replace less efficient equipment or in new home construction. Service rebates are also available. For details, click here.

Navopache Electric Cooperative

This cooperative is offering Time-of-Use Rates to its member willing to change their lifestyle by using much of their electricity during off-peak times. Members receive a discounted rate during off-peak hours to encourage them to use their electricity then. A service charge is applied. For details, click here.

Sulphur Springs Valley Electric Cooperative (SSVEC)

SSVEC is offering a residential rebate program for homes that switch to a 14 SEER or higher electric or dual fuel heat pump. For details, click here.

Trico Electric Cooperative

Trico's Time-of-Program (TOU) allows participating customers to save as much as 5 cents per kilowatt hour over the standard rate Customers use less energy during peak hours and shifting their energy usage to off-peak hours. For details, click here.

Natural Gas Demand-Side Management

Southwest Gas

Commercial & Industrial Services
Southwest's Industrial Gas Engineers can perform a variety of equipment- and site specific evaluations to maximize a customer's energy efficiency decisions and improvements. These activities include analysis of existing energy bills, analysis of electric and gas rate schedules, and simple payback and life-cycle equipment comparisons for a variety of applications. For details on commercial program, click here. For details on industrial program, click here.
Arizona Low-Income Energy Conservation Program
Southwest Gas Conservation Program can assist you with money-saving home improvements to increase the energy efficiency of your home. Energy-saving measures are available to income-qualified customers, at no cost. Examples of energy-saving measures are caulking, insulation, weather-stripping, ductwork repairs and windows. In order to participate in this program, a customer must meet the income qualifications set forth by the U.S. Department of Health and Human Services. For details, click here.

© 2002-2008 Southwest Energy Efficiency Project
2260 Baseline Rd. Suite 212, Boulder, CO 80302
(303) 447-0078 fax: (303) 786-8054 info@swenergy.org

Last Updated: 01/28/2008