APS Customers Save $30 Million in First Year of Regional Market Participation

As anticipated, Energy Imbalance Market results in efficiencies and
savings

PHOENIX–(BUSINESS WIRE)–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.

Q4 2016	Q1 2017	Q2 2017	Q3 2017	Total
$5.9	$5.2	$8.3	$11.1	$30.5
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).

Click
here 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).

Contacts

APS
Media Contact:
Anna Stewart, 602-250-2104
Analyst
Contact:
Stefanie Layton, 602-250-4541
Website: aps.com/newsroom