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More clean energy for APS customers: what to know and why it matters

2023 market solicitation, renewable resources to power homes and businesses

Arizona Public Service (APS) is bolstering its diverse power supply while maintaining the reliable service customers depend on to keep their air conditioning running on hot summer days and lights on year-round. In its 2023 All-Source Request for Proposal (RFP), APS is asking developers to submit project proposals for flexible and innovative energy resources that will fuel increasing power needs as more people and businesses move to Arizona.

This 2023 RFP comes on the heels of freshly inked agreements for new clean energy resources purchased through a 2022 All-Source RFP. Projects secured through the 2022 RFP will start to launch next year, as customers are expected to benefit from more than 1,050 megawatts (MW) of solar and wind power combined. In total, that’s enough energy to serve about 157,500 Arizona homes. New energy storage with a capacity to store more than 1,430 MW of power from the sun will also serve communities even after sunset.

“Our customers depend on us for top-quality service and we’re powering our state’s growth with our 2023 RFP and new clean energy projects coming online soon to continue to keep homes cool and electricity flowing to customers,” said Justin Joiner, APS Vice President of Resource Management.

With the 2023 All-Source RFP now open, it’s important for customers to know APS is:

 

  • Addressing customer needs: APS plans to add approximately 1,000 MW to serve customers with even more around-the-clock power. This is enough electricity for about 150,000 Arizona homes.
  • Adding more clean power: At least 700 MW will be earmarked for renewable energy projects, helping to advance our commitment to serve customers with 100% clean, carbon-free electricity by 2050 and growing a resource portfolio that is already 51% decarbonized.
  • Maintaining reliable energy: APS customers benefit from smart energy investments. This solicitation advances clean energy, while keeping customers safe with reliable power. Developers can bid their unique energy projects or submit proposals to additional categories in the RFP to maximize existing power plant output. These include proposals like adding energy storage to APS’s Agave Solar Plant, developing renewable energy on the Navajo Nation or optimizing existing gas facilities as we transition to a cleaner energy supply.
  • Serving customers: Our resource planners make sure we have the best combination of technologies for customers. All technologies are on the table and will be evaluated to support a diverse and affordable energy mix for Arizona. Project proposals may span from solar, wind and battery energy storage to natural gas resources that can transition to clean hydrogen fuel in the future to other resources that can ramp up quickly during triple-digit temperatures.
  • Transparent and fair: This RFP is focused on projects that will be ready to serve customers as soon as 2026. Each project will be reviewed against a transparent and fair benchmark to ensure customer value. A third-party independent monitor will oversee this process. This RFP was developed in collaboration with the APS Resource Planning Advisory Council (RPAC) through an open stakeholder process.

To learn more about the 2023 All-Source RFP, deadlines and instructions to apply, visit aps.com/rfp.

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 51% 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 current economic environment and its effects, such as lower economic growth, a tight labor market, inflation, supply chain delays, increased expenses, volatile capital markets, or other unpredictable effects;
  • the ability of APS to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels;
  • the ability of APS to achieve its clean energy goals (including a goal by 2050 of 100% clean, carbon-free electricity); and
  • general economic conditions, including inflation rates, monetary fluctuations, and supply chain constraints.

aerial view of a large solar plant

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