Arizona Public Service wants to boost customer storage incentive funding 50%

Dive Brief:

Arizona Public Service's slate of efficiency and demand-side management programs for 2018 includes expanding the utility's Demand Response, Energy Storage and Load Management program by boosting funding from $4 million to $6 million and broadening the pool of eligible participants.
APS wants to expand the program to include commercial and industrial customers and would grow the program's focus to include an examination of pumped water storage and opportunities to save both energy and water in utility water delivery systems.
The utility this month filed demand management programs that include incentives for smart thermostats, electric vehicle charging infrastructure, electric school buses and charging infrastructure, water heater timers, and other resources.

Dive Insight:

APS' proposal to expand the Demand Response, Energy Storage and Load Management (DRESLM) program includes a boost in funding, reduced installation costs for devices at customers homes and additional savings on thermostats.

"The initiative is designed to facilitate demand response, peak demand management and load shifting technologies," APS explained in its application. The thermostats will come preconfigured to automatically respond to the utility's rate plans, including preset pre-cooling parameters prior to peak demand periods and temperature drift during peak periods to reduce demand.

APS said it intends to purchase a supply of smart thermostats that include energy efficiency savings functionality and the ability to control the thermostat remotely through a cell phone app. The devices will also be capable of utility communications for use in future demand response events. Thermostats will be provided free for participating customers who meet program requirements.

For customers who do not wish to install themselves, APS will offer a reduced installation cost through participating contractors, targeting about $100/thermostat.

The DRESLM program is targeting 13.25 MW of peak load reduction, according to the utility's application. Among the other programs APS proposed is a "reverse demand response" pilot that aims to address negative pricing in the middle of the day.

The utility wants to shift non-residential load to times when renewable energy abundant, and aims to reduce the need to curtail solar during periods of negative pricing. To be eligible, dispatchable customer load must have a demand of at least 30 kW.