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Press release from Business Wire

APS Recognized Among Top 10 in North America for Energy Innovation

Thursday, April 26, 2012

APS Recognized Among Top 10 in North America for Energy Innovation11:56 EDT Thursday, April 26, 2012 PHOENIX (Business Wire) -- Arizona Public Service Company has been recognized as one of the top 10 electric utilities in North America for energy innovation according to GreenTech Media and GTM Research, a leading source for clean energy news, analysis and trade events. The award – titled “The Networked Grid: Top Ten Utility Smart Grid Deployments in North America” – was based on nominations from utilities and vendors and judged by GTM Research analysts. “Technology is changing everything, including the electricity grid. Our challenge is to make sure APS is investing in technologies that provide value for our customers, make financial sense and are here for the long run. This award is an indication that we are on the right track,” said APS Director of Energy Innovation Barbara Lockwood. Among its energy innovation projects, APS recently announced the testing of an energy storage system in Flagstaff, Arizona. The system is the size of a shipping container and can generate the equivalent power output of 1,200 hybrid cars. APS is testing several uses in an electrical distribution substation, where it may one day help to dispatch power temporarily during outages. Eventually, the system will support a solar power plant and help to get more renewable energy generation onto the grid. Flagstaff is home to a number of APS energy innovation pilots including the Community Power Project, which is testing the effects of a high concentration of solar energy in a single distribution area. The study will enable APS to optimize the grid for a future where large percentages of customers in a neighborhood could have solar panels. APS also is engaged in a self-healing/self-isolating grid pilot and a distribution fault anticipation pilot in Flagstaff. The latter two technologies help predict and manage system faults, resulting in reduced power outages and quicker repair times. Later this year, a home energy information pilot will test customer benefits of in-home energy displays, programmable thermostats and residential demand response programs. Earlier this year, APS energy innovation programs were ranked fourth nationally by Intelligent Utility magazine and IDC Energy Insights. APS, Arizona's largest and longest-serving electricity utility, serves more than 1.1 million customers in 11 of the state's 15 counties. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW). APSDan Wool,