APS DSM Plan Overview 4/16/15

Examples of APS EE Programs & Measures (partial list) ProgramExample Measures Existing Homes - HVAC $400 incentive for duct test and Repair $245 rebates on new AC units Consumer Products $150 rebate for efficient pool pumps 50% incentive for LED bulbs Home Performance with ENERGY STAR $250 rebate for insulation and air sealing Appliance Recycling $30 rebate to turn in old fridge Also provided: training & technical assistance, consumer education, marketing. Kris Mayes Law Firm 2 All of these are approved by the ACC through the DSM Planning process

DSM Plan Evaluation & Approval Process Programs and measures are reviewed for cost effectiveness by the utility companies before they file their annual DSM implementation plans. ACC Staff review the cost effectiveness of programs and measures and develop a recommendation for Commission consideration. Commissioners review the cost effectiveness of the plan when they vote to approve or deny the Commission Staff’s recommendation. Implemented programs and measures are tracked in the field and adjustments are made to achieve cost effectiveness as needed. Independent third-party evaluators assess the performance of programs and measures in the field. The utilities report the program results on a semi-annual and annual basis. Program results feed into the development of the next plan.

What are the components of a utility DSM Plan? Utility-wide savings goals (must meet EE Standard) Program details (changes, additions, projected savings Program budgets – Rebates & incentives – Training and technical assistance – Consumer education – Program implementation – Program marketing – Planning and administration Cost-benefit analysis Funding mechanism Measurement, evaluation, and research Kris Mayes Law Firm 4

APS’ 2014 DSM Program Results Kris Mayes Law Firm 5

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Where are we now? APS’ 2015 DSM plan has been filed and is being reviewed by ACC for approval. – Opportunity for EFAZ to provide comments. APS has indicated need to significantly ramp up programs in Will file 2016 plan in summer – Opportunity to weigh in now before filing Kris Mayes Law Firm 8

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