1 DATE GOES HERE! B. J. Sprungl

Barbara Sprungl, Manager Sustainability Initiatives

October 28, 2010

Green Electricity Programs

2 DATE GOES HERE! B. J. Sprungl

Established in 1903

107 year steward of the environment

Largest water supplier to Valley

Third largest public power utility in the Nation

930,000 electric customers

Who is SRP?

3 DATE GOES HERE! B. J. Sprungl

SRP Electric Facts

An integrated electric utility, providing generation, transmission and distribution services

Generating mix includes fossil fuels (coal and natural gas), nuclear and renewable energy resources

Renewable energy resources includes solar, wind, landfill gas, biomass, geothermal and hydroelectric generation

2,900 square mile electric service area, spanning three counties

4 DATE GOES HERE! B. J. Sprungl

SRP’s Resource Mix

Coal47%

Natural Gas32%

Nuclear15%

Renewables6%

5 DATE GOES HERE! B. J. Sprungl

SRP Water Facts

SRP administers water rights to a 250,000-acre area that spans 375 square miles

SRP has more than 2.3 million acre-feet of water storage capacity

SRP provides about 850,000 acre-feet of water each year to municipal, industrial, agricultural and residential users

Extensive water delivery network includes 133 miles of main canals, 1,132 miles of laterals & ditches and 255 large capacity wells

6 DATE GOES HERE! B. J. Sprungl

Environmental Challenges Facing SRP

Arizona is a high growth state and will require more electric generating resources with varying environmental impacts

Climate change is the most significant environmental challenge facing us today

Potential greenhouse gas regulations could seriously impact our generation options

Compliance with environmental / greenhouse gas regulations may have a significant cost impact to our customer rates

Arizona is a dry desert climate and water supply issues are critical for the future of our state

7 DATE GOES HERE! B. J. Sprungl

SRP is Addressing These Challenges

Sustainable Portfolio

Renewable Energy Projects

Energy Efficiency Programs

EarthWiseTM Customer Programs

Water Efficiency Programs

8 DATE GOES HERE! B. J. Sprungl

Sustainable Portfolio

9 DATE GOES HERE! B. J. Sprungl

Established by SRP Board

2001 – Allocated $29 million; 4 year renewable program

2004 – Established sustainable portfolio (includes: renewables and energy efficiency measures) with target of 2% of retail sales by 2010

2006 – Adopted new target of 15% of retail sales by 2025

Sustainable Portfolio Overview

10 DATE GOES HERE! B. J. Sprungl

Total 7.48% of Retail Sales

Energy

Efficiency26%

Biomass

4%

Fuel Cell

<0.1%

Hydro

57%

Landfill Gas

1%

Solar

1%

Wind

7%

Misc.

4%

Sustainable Portfolio Mix Fiscal Year 2010

11 DATE GOES HERE! B. J. Sprungl

Renewable Energy Projects

12 DATE GOES HERE! B. J. Sprungl

Hydroelectric Generation

Conversion of energy from flowing or falling water

Current generating capacity: 266 MW

Roosevelt

Horse Mesa

Mormon Flat

C.C. Cragin

13 DATE GOES HERE! B. J. Sprungl

Low-Impact Hydroelectric Generation

Produced using a waterway’s natural drop in elevation

Generating capacity: 5.1 MW

14 DATE GOES HERE! B. J. Sprungl

Geothermal Generation

Energy produced from naturally-occurring geothermal steam

Hudson Ranch, California:

− 50 MW purchase

− 30 year agreement beginning 2012

Lightning Dock, Animas Valley, New Mexico:

− 10 MW purchase currently

− 10 – 15 MW purchase capacity

15 DATE GOES HERE! B. J. Sprungl

Biomass Generation

Electricity generated using wood-waste material and waste recycled paper fibers

10 MW biomass purchase from Snowflake White Mountain Power (20 MW plant)

80% of fuel for plant from forest thinnings

16 DATE GOES HERE! B. J. Sprungl

Wind Generation

Wind turbines transfer wind energy into electricity

63 MW wind purchase from Dry Lake Wind Power Project near Snowflake, Arizona

− First Arizona commercial-scale wind farm

− Meets annual electrical needs of 9,000 Arizona homes

50 MW wind purchase from Pacific Northwest through 2013

17 DATE GOES HERE! B. J. Sprungl

Landfill Gas Generation

Tri-Cities Landfill Energy Facility was built in collaboration with Salt River Pima-Maricopa Indian Community

4 MW generating capacity (produces enough clean energy to power 2,000 homes)

First project of it’s kind in a dry desert climate

Uses methane gas to fuel five internal combustion engines

18 DATE GOES HERE! B. J. Sprungl

Solar Photovoltaic (PV) Generation

Solar PV systems convert sunlight into electricity

1.1 MW generating capacity

Tempe Service Center Agua Fria Generating Station

19 DATE GOES HERE! B. J. Sprungl

City Partnerships

Scottsdale Senior Center Phoenix Pecos Park Community Center

Phoenix Pecos Park & Ride U.S. Bureau of Reclamation

20 DATE GOES HERE! B. J. Sprungl

Concentrating Solar Power (CSP) Generation

Uses mirrors and a tracking system to focus a large amount of sunlight into a small, concentrated beam providing a heat source for a conventional power generation system

1.5 MW generation facility (Maricopa Solar Plant) commenced operation in December 2009

21 DATE GOES HERE! B. J. Sprungl

Energy Efficiency Programs

22 DATE GOES HERE! B. J. Sprungl

Typical Phoenix Home Energy Usage

Water Heating20%

Refrigerator8%

Lighting3%

Air Conditioning

39%

Space Heating9%

Dryer7%

Cooking5%

Miscellaneous9%

23 DATE GOES HERE! B. J. Sprungl

Energy Efficiency Programs

Energy efficiency can help reduce SRP’s load

Way to reduce or delay new generating resources

Each megawatt-hour SRP is not required to generate electricity from fossil fuels results in a reduction in carbon dioxide emissions of about 1,480 pounds

24 DATE GOES HERE! B. J. Sprungl

Residential Energy Efficiency Programs

Appliance Recycling

− $30 rebate to customers for removal and environmentally responsible disposal of older, yet still operating, refrigerators and freezers

− Targets removal of secondary units

SRP Cool Cash

− Rebate for the replacement and purchase of new, energy-efficient heat pumps and package units for their homes

− Rebate amount is dependent on efficiency level of replacement units

25 DATE GOES HERE! B. J. Sprungl

Residential Energy Efficiency Programs

Retail Compact Fluorescent Lamps (CFL) Program

− Provides customers with a discount off the retail price for energy-efficient CFL bulbs

− Currently in place at Costco, Home Depot, Bashas’, Wal-Mart and Sam’s Club

Retail Appliance Rebate

− Promotes purchase of qualifying super-efficient dishwashers and clothes washers

− Rebates are up to $75 depending on unit type

26 DATE GOES HERE! B. J. Sprungl

Residential Energy Efficiency Programs

SRP PowerWiseTM Homes

− Encourages homebuilders to build quality housing and to increase the energy efficiency of homes available to new home buyers

− Builders earn an incentive for each completed house based on its Home Energy Rating System Index Value (up to $580 per home)

27 DATE GOES HERE! B. J. Sprungl

Residential Energy Efficiency Programs

Low-Income Weatherization Assistance Program

− Federal program that was established to help low-income individuals to decrease their home energy costs

− Provides a per-home rebate of $6,000 to complete home performance improvement projects that include various energy- and water-efficiency measures

28 DATE GOES HERE! B. J. Sprungl

Residential Energy Efficiency Programs

Low-Income Education Program

− In-home assessment and tutorial on actions customers can take to reduce energy consumption

− Extended to customers who are not eligible for SRP’s Economic Price Plan discount

29 DATE GOES HERE! B. J. Sprungl

Residential Energy Efficiency Programs

SRP PowerWiseTM Home Checkup Pilot Program

− Will provide up to 100 residential customers with $250 toward the evaluation of their homes for energy- saving opportunities

− Regular cost for assessment is $500 for homes with up to two air conditioning units

30 DATE GOES HERE! B. J. Sprungl

Residential Energy Efficiency Programs

SRP M-Power®

− Prepay program that uses an in-home display monitor, smart card and payment kiosk network to help customers manage their electricity consumption

− On average, customers reduce their annual energy consumption by up to 12%

31 DATE GOES HERE! B. J. Sprungl

Commercial Energy Efficiency Programs

SRP PowerWiseTM Standard Business Solutions

− Provides rebates for the purchase of industry-proven, high-efficiency equipment

− Available for qualifying lighting, HVAC package units and chillers, premium-efficiency motors and variable frequency drives, compressed-air components and select refrigeration measures

32 DATE GOES HERE! B. J. Sprungl

Commercial Energy Efficiency Programs

SRP PowerWiseTM Custom Business Solutions

− Provides an incentive for cost-effective energy-efficient projects not addressed by the standard program

− Examples include energy-management control systems, process equipment improvement and energy-efficient air distribution systems

33 DATE GOES HERE! B. J. Sprungl

Commercial Energy Efficiency Programs

SRP PowerWiseTM Large Business Solutions

− Applies to cost-effective energy-efficiency projects not addressed by the standard program

− Offers eligible customers technical service support to identify and quantify energy-savings opportunities

34 DATE GOES HERE! B. J. Sprungl

Commercial Energy Efficiency Programs

SRP PowerWiseTM Compressed Air Solutions

− Provides technical support and rebates to identify and implement energy-conservation practices in existing large compressed-air systems ( 100 horsepower)

− Two rebate stages – assessment and equipment

35 DATE GOES HERE! B. J. Sprungl

Commercial Energy Efficiency Programs

SRP PowerWiseTM New Construction Program

− Assists architects, engineering professionals and building owners optimize energy and demand savings while reducing costs

− Incentives include free SRP consulting and monetary incentives up to $12,000 based on the facility’s size

36 DATE GOES HERE! B. J. Sprungl

Commercial Energy Efficiency Programs

SRP PowerWiseTM Retro-Commissioning Solutions

− Participants must demonstrate a commitment to spend at least $10,000 to implement demand and energy saving measures with a simple payback no more than 2 years

− Rebates capped at $50,000 per project and up to $100,000 per customer

37 DATE GOES HERE! B. J. Sprungl

Commercial Energy Efficiency Programs

Sustainable Green Building Pilot Program

− Promotes sustainable and renewable technologies, showcases energy efficiency designs and buildings, and highlights water-efficiency projects

− Program provides technical assistance and financial assistance to the developer, owner and design team

38 DATE GOES HERE! B. J. Sprungl

Commercial Energy Efficiency Programs

SPATIA® Energy Information Services (EIS)

− Provides valuable, near-real-time energy usage information

− Allows customers to better understand energy usage patterns so that they can manage consumption

39 DATE GOES HERE! B. J. Sprungl

EarthWiseTM Customer Programs

40 DATE GOES HERE! B. J. Sprungl

Residential Solar Energy Program

Solar electric

– $2.15 per watt, 5 kW or less

– Interconnection required

– Incentive provided to customer in exchange for green tags / credits

– 1,835 systems installed

– 678 systems pending

– 13.4 MW installed and pending

Solar water heating

– $0.50 per kWh energy savings rating

– 2,746 systems installed

– 479 systems pending

41 DATE GOES HERE! B. J. Sprungl

Commercial Solar Energy Program

Incentives paid to customers based on actual energy generation ($ / kWh) versus one-time payment

Solar electric

– $2.00 per watt up-front incentive up to 30 kW

– $0.147 per kWh for 20 years up to 300 kW

– 97 systems installed / 64 systems pending

– 13.2 MW installed and pending

Solar water heating

– $0.50 per kWh up-front incentive up to $100,000

– $0.08 per kWh incentive for 20 years over $100,000

– 21 systems installed / 33 systems pending

Solar pool heating

– $0.25 per kWh up-front incentive up to $100,000

– 19 systems installed / 7 systems pending

42 DATE GOES HERE! B. J. Sprungl

EarthWise Energy™ allows customers to fund solar energy projects in the community

− $3 per month

− 4,978 residential customers

− 81 business customers

New projects:

– Liberty Wildlife

– Sunshine Acres Children’s Home

EarthWiseTM Energy

Desert Botanical Gardens

The Phoenix Zoo

Nina Mason Pulliam Rio Salado Audubon Education Center

43 DATE GOES HERE! B. J. Sprungl

Trees for Change

Trees for Change allows customers to fund tree planting projects in Arizona forests

$3, $6, $9 or more per customer per month with SRP providing matching funds up to $160,000 with 100% of the funds going towards planting

2,026 residential and commercial customers

82,000 ponderosa pine seedlings planted on 510 acres near Overgaard and Lakeside, areas destroyed in 2002 Rodeo-Chediski Fire

202,000 ponderosa pine seedlings planted on 774 acres through Fire Restoration Project, North Kaibab Ranger District, Kaibab NF, areas destroyed in 2006 Warm Fire

A mature ponderosa pine tree can capture up to 26.5 lbs of CO2

annually Source: American Public Power Company (APPA) Tree Calculator

44 DATE GOES HERE! B. J. Sprungl

Solar for Schools

Grant program provides for the installation and maintenance of solar PV systems on Arizona schools

12 Valley schools and 2 schools in Northern Arizona have been awarded 10 kW systems

Projects to be completed by the end of 2010

Will allow students to monitor energy output and use data for “real-world” math learning and application while reducing school’s electricity consumption

45 DATE GOES HERE! B. J. Sprungl

Powering Our Future

Renewable energy curriculum with teacher training

Targets specific grade ranges:

– Upper Elementary (eJourney) Grades 4 - 5

Computer based learning experience

Different types of renewable energy throughout history

– Middle School Grades 6 – 8

Over 20 lessons

Basic understandings of energy

– High School Grades 9 - 12

Focus on photovoltaic solar energy

Hands-on activities

http://poweringourfuture.com/

46 DATE GOES HERE! B. J. Sprungl

EarthWise Renewable Energy Credit (REC) Program

Provides businesses with the ability to offset their power usage with a renewable energy resource

$9.30 / MWh premium, in addition to regular monthly electricity charge

15,000 RECs purchased for the next five years (Hopkins Ridge Wind Facility in Dayton, Washington)

Program is Green-e Energy Certified

Apollo Group (University of Phoenix) purchased 46,500 RECs, offsetting 100% of Phoenix campus electricity usage and 27% of national electricity usage

Other customers include:

− Desert Botanical Garden

− Chandler-Gilbert Community College

− 365 Main (Sony Pictures)

− Metal Magic

− Schnepf Farms

47 DATE GOES HERE! B. J. Sprungl

Water Efficiency Programs

48 DATE GOES HERE! B. J. Sprungl

A. Water Supply

(pumping / conveyance)

B. Water Treatment

(WTPs)

C. Water Distribution

(booster pumps, etc.)

D. End Use (home)

F. Wastewater Treatment

(WWTPs)

Effluent

Discharge / Reuse

Phoenix Residential Water Use Cycle

E. Wastewater Collection

(lift stations, etc.)

49 DATE GOES HERE! B. J. Sprungl

Water heating in the home

80.6%

Wastewater collection & treatment

2.0%

Water supply12.1%

Water treatment0.7%

Water distribution

4.6%

Over 80% of the electricity use and carbon emissions

for the entire residential (potable) water use cycle

can be attributed to water heating in the home

Electricity Embedded in the Water Use Cycle

50 DATE GOES HERE! B. J. Sprungl

Monthly water use of ~10,000 gallons translates to:

− About 300 kWh embedded electricity

− About 430 pounds of CO2

300 kWh is the equivalent of leaving four 100-watt light bulbs burning non-stop all month long!

What this Means…for a Home

51 DATE GOES HERE! B. J. Sprungl

Paradigm Shift

This is a water-saving device!

This is an energy-saving device!

52 DATE GOES HERE! B. J. Sprungl

DesertWise Living

About 30% of total water use occurs inside the home

Toilets are the biggest water user (nearly 30%)

− Switch to high-efficiency toilets that use 1.3 gallons per flush

− Saves about 15,000 to 20,000 gallons per year for a family of four

Water- and energy-efficiency front-loading clothes washers use 35-50% less water and about 50% less energy than conventional models

Fixing leaky faucets can save 140 gallons of water per week

Replace shower heads with low-flow shower heads to likely save about three gallons for every minute you shower

Look for EPA’s WaterSense labels when purchasing new sink fixtures as these fixtures reduce a sink’s water flow by 30% or more without sacrificing performance

53 DATE GOES HERE! B. J. Sprungl

DesertWise Landscaping

About 70% of total water use occurs outside the home

Consider desert landscaping and plants that use less water

Install a smart irrigation controller which save about 25% of the water used outdoors by automatically linking the watering schedule to actual weather conditions or moisture at the root level

Use a liquid pool cover or install a pool cover to reduce evaporation

Use rain gutters to channel rainwater toward the landscape

54 DATE GOES HERE! B. J. Sprungl

You Can Take Action

55 DATE GOES HERE! B. J. Sprungl

Cooling is the Key

Heating / cooling is about half the average annual residential bill

It is the most variable part of the bill

It gives us the most potential for savings

56 DATE GOES HERE! B. J. Sprungl

Efficient Air Conditioning

How much can high efficiency air conditioning save?

New electric heat pumps and air conditioning units are about 40 to 50% more efficient than units installed 15 years ago

Replacing a 7 SEER unit with a 16 SEER unit can reduce the cooling portion of your electric bill up to 50%

57 DATE GOES HERE! B. J. Sprungl

Duct Test and Repair

Why is it important?

On average, 15% of cooling is leaked through ducts

58 DATE GOES HERE! B. J. Sprungl

You Can Take Action

Buy energy efficient appliances with EPA Energy Star ratings

Use low-energy compact fluorescent light bulbs (CFLs)

Caulk and weather strip all windows and doors, and insulate your walls and attics to make your home more energy efficient

Plant shade trees or use screens to shade windows on the outside of your home, and keep drapes and shutters closed during hot summer days

Install low-flow showerheads, desert landscaping and low-water use plants to reduce your water usage

59 DATE GOES HERE! B. J. Sprungl

Carpool or take public transit to save gas and reduce auto emissions

Consider the purchase of a hybrid, or low fuel use vehicle

Use recycled paper to conserve our forest resources

Inflate your car tires properly – it gives you higher gas mileage

Pay bills online and save paper, postage and transit costs

Shut off your computer and other appliances when not in use to save electricity

You Can Take Action

60 DATE GOES HERE! B. J. Sprungl

SRP and the utility industry, face many challenges related to growth, climate change and balancing costs for our customers as we strive to provide a sustainable energy supply

SRP has a long and rich history of contributing to the development of the greater Phoenix area through careful management of precious natural resources

Providing a sustainable energy source for the Valley is critical

SRP is committed to incorporating renewables, energy efficiency and water efficiency into our resource mix at the lowest cost to our customers

In Conclusion

61 DATE GOES HERE! B. J. Sprungl

twitter.com/srpconnect

facebook.com/srpconnect

youtube.com/srpconnect

Connect with SRP

srpnet.com/environment/sustainability