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APS adding new clean energy resources to power historic growth in Arizona

Collaboration with diverse stakeholder council to advance 100% carbon-free future

As more people and companies move in record numbers to the state, Arizona Public Service Co. (APS) customers will have cleaner electricity to power their lives and businesses through a new 2022 All Source Request for Proposals (RFP). Since announcing its Clean Energy Commitment in 2020, the utility is adding more than one gigawatt (GW) of clean energy resources to its diverse power supply. While Arizona continues to have hotter summers and rapid population and economic growth, APS is looking ahead at future customer needs and issuing a new RFP developed in partnership with the APS Resource Planning Advisory Council (RPAC).

"Arizona is one of the fastest growing states in the country and the power we provide communities and businesses is the backbone of our state’s prosperity, safety and well-being,” said Justin Joiner, APS Vice President of Resource Management. “There’s a historic population boom happening and it’s our job to plan and invest in an affordable energy future with long-term sustainability and reliability our customers can count on 24/7, 365 days a year."

Formed in 2021, the APS RPAC includes local consumer advocates, university representatives, and environmental and public interest organizations. Originally created to support the utility’s integrated resource planning, this group participated in a transparent and flexible meeting and workshop series to develop the new All Source RFP. This broad market solicitation will help APS exit from coal-fired generation by 2031 and maintain adequate power supply to serve customers.

"To get the right combination of resources, we need collaboration. The stakeholder advisory council shared important, diverse perspectives that we incorporated into the design of our new RFP. Together, we’re finding solutions to the resource complexities unfolding in the West and the driving energy demand on our system,” Joiner described.

2022 All Source RFP:


APS is conducting an All Source RFP to meet the power needs of residential and business customers with affordable, reliable and clean electricity through the 2025-2027 time frame.

"While a traditional RFP spells out the specific resources needed, with an All Source RFP, we will consider any demand-side, electric or energy storage resource. This provides more flexibility and innovation in the options proposed,” Joiner explained.

This RFP is open to all technologies, including supply side and non-supply side resources. Proposed projects must be in service beginning in 2025 through June 2027. APS is seeking approximately 1,000 to 1,500 megawatts (MW) of resources, including up to 600 to 800 MW of renewable resources, which will meaningfully increase the amount of clean energy on the APS electric system.

Closer to a Carbon-Free Future:

The new resources that will come from the 2022 RFP will add to the more than one GW of clean energy secured through an All Source RFP and separate Battery Energy Storage RFP issued in 2020. What does one GW mean for customers? APS estimates that approximately 150,000 homes in its service territory can be powered by this energy. According to the Department of Energy, one GW is also the equivalent power of more than three million solar panels, 110 million LED light bulbs and more than 9,000 electric cars.

APS’s portfolio of new resources will be in service for customers no later than 2024 and will include:

  • 425 MW of solar power nameplate capacity
  • 238 MW of wind power nameplate capacity
  • 635 MW of battery storage nameplate capacity

The entire RFP process is monitored and reviewed by an independent third-party. Information about the 2022 All Source RFP can be found at aps.com/rfp. To learn about the APS RPAC, visit aps.com/resources.

 

close up view of a lineman working on a pole

APS serves more than 1.3 million homes and businesses in 11 of Arizona’s 15 counties, and is a leader in delivering affordable, clean and reliable energy in the Southwest. The company is committed to serving customers with 100% clean power by 2050. As owner and operator of Palo Verde Generating Station, the nation’s largest producer of carbon-free electricity, and with one of the country’s most substantial renewable energy portfolios, APS’s current energy mix is 50% clean. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

Forward-Looking Statements

This news release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. Several factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to:

  • the potential effects of the continued COVID-19 pandemic, including, but not limited to, demand for energy, economic growth, our employees and contractors, vaccine mandates, supply chain, expenses, inflation, capital markets, capital projects, operations and maintenance activities, uncollectable accounts, liquidity, cash flows or other unpredictable events;
  • our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels; and
  • general economic conditions, including inflation rates, monetary fluctuations, and supply chain constraints.

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