APS Expands Renewable Energy Programs.

Solar Energy, 'Green Rate' Choices Enable Customers to Help Environment

PHOENIX -- APS customers can help usher in a future where energy from the sun, wind and other renewable sources play an ever-increasing role in lighting and cooling Arizona's homes, schools and businesses.

APS has submitted a plan for meeting the first five years of the recently-enacted Renewable Energy Standard (RES) to the Arizona Corporation Commission (ACC). The standard requires APS to increase its total renewable energy mix to 15 percent by 2025.

Additionally, the Company has expanded its customer-driven renewable programs. APS customers now have four options - soon to be five - that enable them to build a better tomorrow powered by clean, renewable energy. The programs include:

* Financial incentives to add a solar electric system;

* Financial incentives to add a solar water heater;

* A Green Choice program that enables customers to select a percentage of their power that comes from renewable energy (above what APS already must provide);

* A Green Choice program that enables customers to select a set amount of their power that comes from renewable energy (above what APS already must provide); and

* A Total Solar program (coming soon)

"The RES, along with all of our customer-driven programs, allows renewable energy to play an increasing role in finding solutions to Arizona's energy challenges," said Barbara Lockwood, APS' Manager of Renewable Energy. "Increasing renewable energy is very important to the company. We know it is important to customers. It also is important to our regulators, who have shown leadership in this area."

The RES, which was passed in October 2006 requires the state's regulated utilities to obtain 1.75 percent of their total electricity sold from renewable energy sources in 2008 and gradually increase to 15 percent by 2025. It also contains a distributed generation requirement stating that by 2012, 30 percent of the Company's renewable energy must come from sources such as solar electric systems and solar water heaters.

APS' Solar Power Incentive program offers financial incentives to customers who add solar power to their home or business; the program is ACC-approved and funded by APS customers.

While APS is providing renewable energy under the RES, it began offering customers a Green Choice rate in 2007. This program enables customers to determine how much more of their electricity (above the regulated amount) will come from renewable energy sources.

In the Green Choice program, for an additional 1 cent per kilowatt-hour (kWh), customers can elect to purchase renewable energy in specific amounts or as a percentage of their monthly usage. APS will use these funds to pay for energy generated from utility-size renewable projects.

Customers can visit APS.com for more details. A link to information regarding the programs is located in the upper right-hand corner of the home page.

"This will give customers real choice into the amount of renewable energy provided by APS," said Lockwood. "As more customers participate in the Green Choice program, APS will purchase more renewable energy."

Currently, customers who choose the program will receive a mix of wind and geothermal energy. In 2008, the energy mix will also include biomass. All APS customers already receive a portion of their power from wind, geothermal and solar energy.

And soon, customers will have a fifth choice under the APS customer renewable program - a new Total Solar rate program. This program is designed for those who wish to support solar energy, but do not wish to install their own system. Details regarding this program will be announced soon.

How Solar Partners work

APS' Solar Partner Incentive Program offers financial incentives to customers who add photovoltaic solar systems or solar water heaters to their home or business. Incentive amounts vary based on the type of customer (residential or commercial), and whether the customer is hooked up to the power grid or not. Customers receive a savings between $2.00 and $3.00 per installed watt for a photovoltaic system and $0.50 per first year kWh for solar water heaters.

How Green Choice works

Customers have the choice to purchase a specific amount of renewable energy or a percentage of their monthly usage. For example, Customer A selects 200 kWh a month. This means no matter what their monthly usage, 200 kWh (more than the regulated amount) will come from renewable energy. At 1 cent per kWh, Customer A's monthly Green Choice program rate will be an additional $2 every month. Customer B selects the percentage option at 30 percent of their usage. Customer B's Green Choice rate will fluctuate with his monthly energy usage.

APS, Arizona's largest and longest-serving electricity utility, serves more than 1 million customers in 11 of the state's 15 counties. With headquarters in Phoenix, APS is the largest subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).