Becoming More Sustainable
The Role of Technology Innovation
“Our future is a shared one with our customers, shareholders, employees and the communities in which we live and do business.”
Jack E. DavisPresident Pinnacle West Capital Corporation
- PNW Corporate Responsibility Report
Pinnacle West Capital Corporation
• Member of Standard and Poor’s 500 Index and traded on the New York Stock Exchange under the symbol PNW
• Phoenix-based company with consolidated assets of about $11 billion and consolidated revenues of $3 billion
• Three principal business segments include regulated electricity, real estate, and energy services marketing and trading
• 7,300 employees
• Ranks number one industry-wide in dividend growth over the last decade
Arizona Public Service Company (APS)
• PNW’s largest subsidiary
• Serves over 1 million customers across Arizona
• 7th Largest service territory with growth 4 times U.S. average
• Owns combined generation capacity in excess of 6,400 megawatts (MW) and operates plants with a combined capacity in excess of 10,000 MW
• Ranked first among investor-owned electric utilities in the West and third among investor-owned utilities in the nation in J.D. Power and Associates' 2005 Electric Utility Residential Customer Satisfaction Study
APS – Part of Arizona for 120 Years
Arizona
• Growth 3 X U.S. Average
• 94 Years Old
• 52 People/Square Mile
APS
• Growth 4 X U.S. Average
• 120 Years Old
• 29 Customers/Square Mile
• 7th Largest Service Territory
Phoenix
APS Retail Service Territory
History of Leadership
• First EHS policy in 1973
• First utility to endorse Ceres Principles in 1994
• Published first EHS report for 1994
• Began incorporating Global Reporting Initiative (GRI) guidelines in 2000
• Published first Corporate Responsibility report in 2004
• Ni-Mo inter-pollutant trade agreement
• 1995 Climate Challenge
• Renewables
• Voluntary emission reductions
• Fossil Creek
Leadership / Innovation
We’re Building An Energy System That Is Newer, Better, Cleaner, and Faster
Diversity is the Key
Coal
Natural Gas
Nuclear
Demand Management
Renewables
Conservation
Renewables And Conservation: A Rapidly Growing Part of our Energy
FutureDiversity is the Key
Coal
Natural Gas
Nuclear
Demand Management
Renewables
Conservation
Energy Saving Tips and Rebates Helps Customers Keep Costs Down
Rebate of
$250 for 14SEER Unit
$400 for 16SEER Unit
Rebate of
$250 for 14SEER Unit
$400 for 16SEER Unit
Rebate of
Residents: $3 per watt
Solar Panels
Rebate of
Residents: $3 per watt
Solar Panels
SponsoredDiscount on
High-efficientLight Bulbs
Our Customers Save Money Everyday with the Nation’s Largest Time-of-Usage (TOU) Rate
ProgramTime-of-Usage Customers
Now New Program
400,000
450,000
Megawatts Avoided
Now New Program
200
225
But APS Faces Challenges Beyond Renewables and Efficiencies by 2025
Renewables
DSM / Conservation
317
1,281257
511
5,506
1,989
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2015 2025
Meg
awat
ts
Still needed
2,563 MW
7,298 MW
TechnologyA part of the solution
• Improved efficiencies
• Reduction of waste & recycling
• Powering our future
Single Axis Trackers
• Horizontal and Tilted Single Axis Trackers
• New “truss” design eliminates need for deep foundation construction
• Simplified mechanical design
• Updating tracking controls and software
• 3rd party interest
HCPV Development
• Boeing Spectrolab “Space” cells
• 38% conversion efficiency
• 1kW prototype running at STAR
• 2nd generation, 3kW unit assembled – waiting to test
Solar + Compressed Air Turbine
• Concept is to compress air separately from solar cycle– Off-peak electric compression– Full turbine output during the day
• SolarCAT development team– APS– Brayton Energy LLC– CEC– SMUD– SDG&E– Nyserda
Figure B. Compressed Air Energy Storage (CAES)
Air storage triples peak power, uses off peak power, andimproves compressor efficiency.
GENERATOR OUTPUT200KW ON PEAK
FLOWCONTROL AIR
OUTPUTexit
SOLAR/GASHEAT INPUT
AIR INLETAT NIGHT
MOTOR INPUT130KW OFF PEAK
COMPRESSEDAIR STORAGE
Figure A. Conventional Gas Turbine
Two thirds of the turbine output poweris used for air compression.
AIR INLET
COMPRESSOR
SOLAR/GASHEAT INPUT
GENERATOROUTPUT 84KW
RECUPERATOR
AIR OUTPUT
TURBINE
Standard Turbine – 60% of power is used in compression
Turbine + Storage – Off-peak electric compression & storage
Saguaro Trough• Completed in December 2005• First Trough project in the USA
for over 15 years• First to marry a solar trough solar
field to an Organic Rankine Cycle turbine power block
• 1 MW Capacity
Biomass Pilots
• Biomass–Eagar
• 3MW forest waste• On-line February 2004
–Snowflake• 3MW forest waste• Under construction
Pinal County CAFO Project
• Phase I – manure study• 36 feedlots in Casa Grande,
Florence, Maricopa, Red Rock, Stanfield areas
• 200,000 cattle within a 30 mile radius• 4.6 M Tons of manure annually• 70% pack, 30% slurry• Gasifier and digester technologies• Over 2,000,000 Chickens• Potential for over 30MW of
generation capacity• Phase II – financial study
150 W150 W
Renewable Energy - Electricity Generation
• Biogas– Butterfield landfill
• 70kW microturbine
– 91st Avenue WWTP• Renewable methane
purchase• 10MW generation at
Redhawk
Geothermal Energy
Geothermal Binary Power Plant
• 350ºF brine pumped out of production well
• Boils pentane in a heat exchanger
• Cooled brine re-injected into the earth
• Pentane vapor used to power a turbine/generator
Future Fuels - Demonstrations
• Hydrogen refueling station– 502 Complex– Dispense Hydrogen,
CNG and blends– All major credit cards
accepted
• Hydrogen Power Park– Industrial enclave
powered by Hydrogen
Hydrogasification
• Gasify carbon– Coal– Biomass– Manure
• Synthetic natural gas (un-natural gas?)
• $2.6M grant from DOE
C + 2H2 + H2O CO2 + CH4
Algae
• Use CO2 from Redhawk stack
• Grow algae strains
• Extract the lipid oil from the algae
• Produce bio-diesel, methanol or methane
• In one year a one acre algae farm can produce – 6,000gal biodiesel
– 5,000 gal ethanol
– 80,000 lb high protein animal feed
ALGAE HAS MULTIPLE ENERGY USES
Biodiesel
Ethanol, CH4 and Bioplastics
Animal Feed
Green Power
Biohydrogen
Co-Firing orCo-Firing or
GasificationGasification
DryingDrying
FermentationFermentation
Gasification & Gasification &
ReformingReforming
EsterificationEsterification
Future Fuels - Demonstrations
Sunlight
Flue gasin
Flue gasin
Algaeconsume
CO2 & NOX
Scrubbed flue gas
Algal biofuel out
Education and Outreach – Renewable Energy
• APS’ Road to Renewable Energy Program• R2Re is a compilation of graphic posters,
presentations and interactive worksheets for the classroom
• Primarily focused on AZ school grades 4 - 9 • Available in three different formats:
• CD
• APS website http://www.aps.com/my_community/renewable/energy_1.html.
• Book
Ruins of a civilization which disappeared in the Four Corners area of the USA. Only their empty dwellings tell us they ever
existed.
SUSTAINABILITY SUSTAINABILITY
OUR PATHWAY TO ENERGY SECURITYOUR PATHWAY TO ENERGY SECURITY