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Arizona

Utility Energy Efficiency Programs
Updated: September 2011

Overview

Arizona has seen a high growth rate in population of 3.3% per year on average from 2000-2006. Arizona utilities forecast that electricity demand will grow about 3.5% per year, compared to 2% for the nation on average. Peak demand for electricity doubled in fifteen years between 1990 and 2005, from 8,000 MW to 16,000 MW.

Peak demand for electricity is forecasted to double over the next twenty years, 2006-2025, from 16,000 MW to 32,000 MW. This increase requires an additional 16,000 MW of resources, equivalent to about 32 large power plants.

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 1.1 million customers in 11 of the 15 counties in the state. TEP serves nearly 400,000 customers in southern Arizona. Salt River Project (SRP) is a private corporation serving about 950,000 customers in the metro Phoenix and nearby areas. 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:

(scroll down to view details)


Electricity Demand-Side Management

Arizona Public Service (APS)

Complete and current descriptions of all APS energy saving programs can be accessed through the “APS Green Choice” web page.

Energy Efficiency Solutions for Business Program
APS offers a variety of incentives, training, and energy information services to business customers to improve energy efficiency.

  • Prescriptive, custom and energy study incentives are available to business customers for both retrofit and new construction projects. Incentive levels for specific qualifying measures vary depending on business size and the technology. 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.

  • APS offers Energy Information Services (EIS) for medium to large business customers. With a meter upgrade, EIS creates a detailed, easy to read load profile of actual energy consumption that can be compared against a backdrop of relevant variables.

Residential Energy Saving Rebates & Programs
APS offers a variety of incentives and programs to help their residential customers save energy, including:

  • Energy-Efficient Air Conditioning Rebate Program
    APS offers an air conditioning rebate for residential customers to upgrade their AC units. To be eligible, AC units must meet both the SEER and EER values. This incentive is offered only for replacement equipment; new construction is not eligible.

  • ENERGY STAR® Homes
    APS has teamed with a number of Arizona homebuilders to create the APS ENERGY STAR Homes program. APS collaborates with the homebuilders to ensure that these ENERGY STAR Homes meet or exceed the ENERGY STAR 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.

  • Discounts on Energy-Efficient Lighting
    While supplies last, APS partners with local retailers to promote and offer discounts on compact fluorescent lighting.

  • Refrigerator Recycle Program
    APS will pick up an old refrigerator or freezer and recycle it, providing the consumer with a $30 rebate.

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Tucson Electric Power Company (TEP)

TEP offers a variety of energy efficiency and conservation programs for business and residential customers, including:

  • Time-of-Use Rates (TOU) or PowerShift
    Available to both business and residential customers, the TOU program offers customers a reduced electric rate for shifting their energy use from peak periods (Monday through Friday from 9am - 5pm) to off-peak hours.

  • 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 comfort.

  • Guarantee Home Program
    TEP's 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. 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.

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Salt River Project (SRP)

SRP’s Business efficiency programs include rebates for:

  • Lighting, HVAC, motors and refrigeration equipment

  • Custom energy efficiency projects

  • New-construction design assistance

  • Retrocommissioning of existing major mechanical and electrical systems

  • Small business lighting audit

SRP’s Residential efficiency programs include:

  • Appliance Recycling
    SRP provides free pickup and a $30 check for recycling extra fridges and freezers. Nearly 95% of the unit's materials are recycled.

  • Home Energy Manager
    This online tool provides customers with personalized recommendations for saving energy and reducing utility costs.

  • PowerWise Homes Program
    SRP's  PowerWise program provides participating homebuilders significant market exposure; increases consumer awareness of energy-efficient homebuilding techniques, materials, and appliances; and spurs demand for energy-efficient homes.

  • Compact fluorescent light bulbs (CFLs) Discount
    The CFL program offers discounts on light bulbs at participating stores in its service area.

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Dixie-Escalante Rural Electric Cooperative

This cooperative offers rebates for efficient electric heat pumps, electric water heaters, or dual fuel heating and cooling to replace less efficient equipment or in new home construction. Service rebates are also available.

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Navopache Electric Cooperative

NEC offers Time-of-Use rates to members 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.

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Sulphur Springs Valley Electric Cooperative (SSVEC)

SSVEC offers a residential rebate program for homes that switch to a 14 SEER or higher electric or dual fuel heat pump.

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Natural Gas Demand-Side Management

Southwest Gas

Southwest Gas offers a variety of energy efficiency programs in Arizona, including:

  • Low-Income Energy Conservation Program
  • Smarter Greener Better Homes Program
  • Residential High-Efficiency Equipment Rebate Program
  • Combined Heat and Power Program
  • Commercial High-Efficiency Equipment Rebate Program
  • Large Commercial Energy-Efficient Boiler Program

For information on Southwest Gas DSM programs, visit: www.swgas.com/efficiency/az/.

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