APS Sees Economic Benefits to Customers by Participating in Flexible
Market
Company Website:
http://aps.com
FOLSOM, Calif. & PHOENIX -- (Business Wire)
Arizona Public Service Co. (APS) and the California Independent System
Operator (ISO) announced today they have signed an agreement for the
Phoenix-based utility to begin participation in the Energy Imbalance
Market (EIM) starting in October 2016.
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APS customers could save $7 million to $18 million a year through EIM
participation, according to an assessment
by Energy and Environmental Economics, Inc. With APS’s participation,
current EIM entities will see annual benefits accrue to them from $3
million to $6.5 million in addition to the benefits they already realize.
“We are always looking to reduce costs for our customers and we believe
the Energy Imbalance Market will produce real economic benefits,” stated Tammy
McLeod, Vice President of Resource Management for APS. “Joining a
market that will automatically balance supply and demand for electricity
every five minutes will enable APS to dispatch the least-cost resource
and optimize our ability to generate electricity in the most efficient
manner for our customers.”
APS expects participation in the Energy Imbalance Market will create at
least three benefits:
-
Produce economic savings to APS customers through lower production
costs;
-
Improve visibility and situational awareness for system operations in
the Western Interconnection; and
-
Improve integration of renewable resources
The EIM allows for rebalancing supply and demand in 15-minute blocks
with dispatching every five minutes before the energy is needed, instead
of the traditional and less flexible one hour blocks. The real-time
market finds the most efficient resources to serve the next increment of
load or respond to variable renewable energy production by optimizing
the grid across the entire footprint of the EIM market. Enabling
utilities across the western region to share generation resources
significantly lowers the cost of keeping the lights on.
“We are very pleased to make our state-of-the-art energy optimization
technology available to APS, which has been serving Arizona customers
for 125 years, to reduce costs for their customers.” said ISO President
and CEO Steve Berberich. “The ISO and other EIM participants welcome APS
to this regional approach to sharing resources for the benefit of all
and appreciate the expertise and insights APS will bring to the Energy
Imbalance Market.”
In conjunction with the Phoenix-based utility participating in the
market, an APS representative will join the EIM Transitional Committee,
a group responsible for proposing a long-term EIM governance structure.
Additionally, APS will keep the Arizona Corporation Commission apprised
of its progress in the EIM.
The ISO and PacifiCorp launched the regional EIM on November 1, 2014,
and realized combined benefits of nearly $11 million in the first five
months of operation (click here
to read more). Currently, the EIM automatically dispatches least cost
energy in real time in California, Oregon, Washington, Nevada, Utah,
Idaho and Wyoming. Las Vegas-based NV Energy is scheduled to join EIM
later this year followed in 2016 by Puget Sound Energy of Washington
state. Today’s announcement marks the fourth entity to join the EIM and
extending its reach across eight states.
APS, Arizona’s largest and longest-serving electricity utility, serves
nearly 1.2 million customers in 11 of the state’s 15 counties. With
headquarters in Phoenix, APS is the largest principal subsidiary of Pinnacle
West Capital Corp. (NYSE: PNW)
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Contacts:
Media Contacts:
APS
Anna Haberlein, 602-250-2104
or
CAISO
Steven
Greenlee, 916-608-7170
Oscar Hidalgo, 916-608-5834
or
Analyst
Contact:
APS
Paul Mountain, 602-250-4952
or
Website: aps.com/newsroom
Source: Arizona Public Service Co.
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