october 19, 2017
aps customers save $30 million in first year of regional market participation
as anticipated, Energy Imbalance Market results in efficiencies and savings
PHOENIX – APS customers benefitted from more than $30 million in savings
in the company’s first year in the western regional Energy Imbalance Market
(EIM). According to a new report released by the California Independent System
Operator, APS saved more than $11 million from July through September 2017,
which puts the first-year savings total at $30.5 million.
First year benefits in millions USD
“Participating in the Energy Imbalance Market has allowed us to garner
efficiencies that weren’t possible a year ago,” said Brad Albert, APS Vice
President of Resource Management. “We’ve lowered production costs and the costs
of integrating renewable resources like solar, and we’ve taken advantage of
negatively priced (surplus) power from other states. Participating in the EIM
is one of the many ways we’re providing customers with a cleaner and smarter
system to meet their changing energy needs.”
The EIM enables energy companies across the western region to buy and
sell energy more efficiently, lowering the cost of keeping the lights on. While
APS’s power plants continue to be the first and primary source of energy to
meet APS customer demand, the difference between the EIM and traditional, less
flexible energy markets is that the EIM automatically finds the most efficient
energy resources available (in increments as small as five minutes) if APS
decides to buy or sell power in the marketplace.
When APS first began participation in the EIM in October 2016, the
company projected annual savings between $7 and $18 million a year for
customers. Through efficient trading operations, APS’s first year reality far
exceeded the initial projection. All savings go back to customers through an
adjustment on their bill called the Power Supply Adjustor (PSA).
to view the EIM’s quarterly benefits assessment reports.
APS serves about 2.7 million people in 11 of Arizona’s 15
counties, and is the Southwest’s foremost producer of clean, safe and reliable
electricity. Using a balanced energy mix that is nearly 50 percent carbon-free,
APS has one of the country’s cleanest energy portfolios, including both Palo
Verde Generating Station and renewable energy. The company is also a proven
leader in introducing technology and services that offer customers choice and
control over their energy consumption. With headquarters in Phoenix, APS
is the principal subsidiary of Pinnacle
West Capital Corp. (NYSE: PNW).