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APS Flex Solutions
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Introducing Flex Solutions: A New and Improved Program That Gives You Flexibility and Pays You to Shift Energy Use When It Matters Most
We recognize that your business is unique and that no two businesses are the same. That’s why we now offer options in our Flex Solutions portfolio – an energy conservation program built around you and your operational needs – giving you more flexibility, options and compensation, while helping to support a more resilient energy grid for Arizona.
Flex Solutions is an energy conservation program that pays business customers, like you, for reducing your energy use during periods of high demand on our power system. By lowering your usage, you can save energy on your bill, earn compensation and improve grid reliability for all customers. You have the power to choose how to reduce your energy use in a way that works best for you.
Benefits include:
- More flexibility: You can customize your participation to fit your operational needs with a variety of compensation options and event structures.
- Greater value: Improved compensation means you can earn more by delivering more.
- Smarter integration: Enhanced technology and tools make participation easier and more reliable, backed by clear communication and support.
How Events Work
Flex Solutions was designed with input from APS business customers like you. It gives you more options and control over how you want to participate in the program, helping you balance your operational needs while managing your energy bill and ease stress on the grid when energy use is high among APS customers. You have the option to participate in Program Events, High Priority Events or both.
Program Events Option:
Program Events can take place from June 1 to October 15, Monday through Sunday, only between 5 p.m. to 10 p.m. Here are your options to choose from:
- Number of events: Participate in up to 3*, 6 or 12 events per season. The more events you participate in, the greater your compensation.
- Duration of events: Choose 3 or 5 hours of participation per event
- Event notification timing: Get notified by noon a day ahead or an hour in advance on the day of
High Priority Events Option:
High Priority Events are rarely called and reserved for critical needs only. They can take place any day of the week and year-round. They are compensated differently than Program Events, being paid based on kWh’s reduced.
- Duration of events: Up to five hours
- Event notification timing: Get notified at least 15 minutes prior to the event start time
*The option to participate in three events per season is only available to customers who choose to be notified on the day of the event and can reduce their energy demand by more than 500 kilowatts during the event.
How to Enroll
Whether you're already enrolled in the Peak Solutions program or not, signing up for Flex Solutions is easy. Contact your APS Account Manager or email us at flex@aps.com. We'll help you get started and answer your questions.
How Compensation Works
Energy conservation events will be called during times of high energy use. You can receive compensation of up to $60 per kilowatt saved for choosing to participate. The amount you receive will vary on how many events you choose to participate in, the duration of the events you select and how your energy reductions compare to your commitment. In addition to earning compensation based on your reduction in energy use during each event, you may also see savings on your monthly energy bill. Actual savings will vary depending on your rate plan and how you choose to participate. If your business has critical needs during the event, you’re not required to reduce or shift your energy use.
If you’re current on your bill, you have the option to receive your compensation as a bill credit or an electronic payment. If you’re not current on your bill, it will be applied as a bill credit. Here is the compensation timeframe based on event type:
- Program Events: Program Events are those events called between June 1 and October 15 for which you’ll receive notification based on the way you chose – either the day before, or an hour before. Program Events are planned and can be more frequently expected, because they occur during the hotter months, when the demand for electricity is highest on the grid. You’ll receive compensation for all of these types of events within three billing cycles after the Program Events period ends on October 15.
- High Priority Events: These events will be called rarely, but can occur at any time during the year, likely in response to an unplanned situation. With these events, you’ll receive at least 15 minutes notice. For any High Priority Events called from June 1 to October 15, you’ll receive compensation within three billing cycles after October 15 ends along with your compensation for the Program Events. For events called outside that time period, you’ll receive compensation at the end of the year.
| Capacity Value (kW - season) | |||
|---|---|---|---|
| Event Duration | Events per Season | ||
| Tier 1: Up to 3 Events | Tier 2: Up to 6 Events | Tier 3: Up to 12 Events | |
| Day-Ahead Program Event | |||
| 3 Hours | |||
| 5 Hours | |||
| Day-Of Program Event | |||
| 3 Hours | |||
| 5 Hours | |||
Getting Ready for the Event Season
During the year, we may do the following to make sure you’re ready for events:
- Check your enrollment details
- Conduct Test Events to make sure your system set up and communications are working correctly
Frequently Asked Questions
A Program Event is a planned APS Flex Solutions energy conservation event that occurs during periods of high electricity demand, typically on hot summer afternoons. During these times, we ask participating businesses to temporarily use less electricity for a set number of hours. These events help maintain grid reliability and reduce the need for more expensive power generation. Participants receive advance notice by email, phone or text, usually the day before or day of the event, depending on how they chose to receive notifications. Businesses can lower their electricity use through pre-planned strategies such as adjusting HVAC setpoints, shifting production schedules, dimming lighting or using on-site generation.
To be eligible for the program you:
- Are a small, medium, large or extra-large APS commercial or industrial customer located in APS’s service territory with a greater than 10 kW peak demand.
- Use APS owned 15-minute interval meters. Other types of meters or communication methods may be allowed. Please contact us at flex@aps.com if you have questions about whether your equipment is eligible.
- Are a customer who is current on their energy account at the time of enrollment and contributes to the demand side management adjustment charge or any related cost recovery.
- Do not participate in another APS demand response program or are on a special rate schedule or tariff where you are receiving an incentive or unique rate.
- Do not participate in High Load Factor (XHLF) where you’re receiving a special generation price, a generation capacity discount or any other economic discount.
- Are not on a rate schedule or tariff where the generation component is provided by a third-party provider.
Your facility is eligible if you:
- Use distributed generation or backup generators to participate in the program. You are responsible for following all federal, state, county, and city environmental rules, permits, and maintenance requirements for your equipment. This includes meeting any emission standards tied to your operating permits. We may ask you to provide information about your generators, including:
- Manufacturer, make, and model
- Serial number
- Manufacture and installation dates
- Emission certification
- Copies of all required permits or proof of compliance, including interconnection requirements
- Have solar panels or energy storage, you must have a separate advanced metering infrastructure (AMI) meter. This meter measures the energy your facility normally uses after accounting for solar or storage, so we can calculate how much energy you save during an event.
You are not eligible to participate in this program if your proposed energy reductions could affect the health or safety of others.
Master-metered properties are eligible. We’ll work with you to identify which specific meters on the property should be measured for participation.
No special equipment is required to participate in the program. Most customers participate by reducing energy use from HVAC systems, lighting or production equipment during events.
If you’re current on your bill, you have the option to receive your compensation as a bill credit or an electronic payment. If you’re not current on your bill, it will be applied only as a bill credit.
- Program Events: Program Events are those events called between June 1 and October 15 for which you’ll receive notification based on the way you chose – either the day before, or an hour before. Program Events are planned and can be more frequently expected, because they occur during the hotter months, when the demand for electricity is highest on the grid. You’ll receive compensation for all of these types of events within three billing cycles after the Program Events period ends on October 15.
- High Priority Events: These events will be called rarely, but can occur at any time during the year, likely in response to an unplanned situation. With these events, you’ll receive at least 15 minutes notice. For any High Priority Events called from June 1 to October 15, you’ll receive compensation within three billing cycles after October 15 ends along with your compensation for the Program Events. For events called outside that time period, you’ll receive compensation at the end of the year.
Please consult a tax advisor regarding any possible tax liability resulting from compensation you receive by participating in this program. Payments of $600 or more may result in the issuance of a Form 1099, if required under the current Internal Revenue Code.
We may conduct test events to make sure your system set up and communications are working correctly. These events are not paid, but they help ensure your energy reduction estimates are accurate . If your performance during a test differs from your application, adjustments will be made to match your test results.
- Number of events: We may call one test event each year or when there’s a change to your enrollment
- Duration of events: Up to five hours
- Event scheduling: We’ll schedule the test at a time that works best for your business
- Event notification timing: You decide how much notice you need
You always have the option to participate or opt out. There is no penalty if you decide to skip an event. The more electricity you reduce and the more events you participate in, the more you can earn. Payment is based on your total average season performance and the energy reduction amount you commit to. Working with your APS representative can help you pick the number of events that make the most sense for you.
There is no penalty for failing to achieve your energy reduction goal. However, if you reduce less than 100% of your goal, your payment will be lowered accordingly. The more energy you plan to reduce and the more accurately you can do it, the more you can earn. Choosing a realistic reduction goal can make it easier for you to achieve it and maximize your earnings. Your APS representative can help you determine the right energy reduction goal for your facility.
APS representatives can help you identify which equipment to control and the best ways to reduce energy use at your facility to meet your business needs. This could include temperature adjustments, HVAC equipment cycling or other HVAC adjustments, lighting shutoffs, dimming or other adjustments, pump control, industrial process adjustments or other strategies.
Within a few days of enrolling, you’ll have access to a personal dashboard that shows your program enrollment details, a map of all your enrolled accounts, any current and/or upcoming events, the estimated amount of money earned to date and the total impact from all enrollments.
- Automatic Renewal & Cancellation
Your spot in the program will renew automatically each year unless either of us decides to end it. If either party wants to cancel, we’ll need to provide at least 30 days written notice. - Program Updates
We may update the program terms during contract renewal, including potentially pricing, which may impact your participation. If that happens, we’ll let you know in writing at least 30 days before the new event season, or contract renewal, starts. - Enrollment Changes
Either of us can make changes to your enrollment at any time, and in some cases, we may make updates without notice. Any changes you make at least 48 hours before 9:00 a.m. on the day of a Program Event will go into effect. - Termination for Non-Compliance
Your participation in the program may be terminated if you fail to comply with its terms and do not correct the issue within 30 days of receiving written notice.
You can unenroll at any time by contacting your APS account manager or emailing flex@aps.com.
