Phoenix Arizona

City to introduce demand side management programs as part of Integrated by quotes
January 21, 2007, 7:50 pm
Filed under: City of Mesa, Mesa

City to introduce demand side management programs as part of Integrated
Resources Plan

The Mesa City Council has adopted an energy resources plan that will
include incentives for residents and businesses who save electricity.

The “Integrated Resources Plan (IRP),” approved by the council on Monday,
still must be submitted to the Western Area Power Administration (Western)
this month. The plan includes “demand-side management (DSM)” alternatives
as well as “supply side” resource options.

Under the Energy Policy Act of 1992, the City must develop a plan as part
of long-term power supply agreements that allow Mesa to receive low-cost
federal hydropower from Western. Additionally, the plan is necessitated by
the fact that one of the City’s long-term power supply contracts, held with
Arizona Electric Power Cooperative, expires in December 2008 and the best
possible resource or combination of resources must be identified to replace
this supply. The plan will cover the 10-year planning period from 2007 to

The DSM programs are alternatives to supply side resources for meeting
customer demand. The goal is to minimize the costs of purchasing electric
generating capacity and energy resources by reducing customers’ peak demand
and energy requirements.

The residential program will involve some combination of incentives
relative to compact florescent lights, high efficiency appliances, window
treatments, high efficiency air conditioning, programmable or communicating
thermostats, heating, ventilation and air conditioning (HVAC) repair and
diagnostics, quality installation and Direct Load Control air conditioning.
The commercial program will include most of the same components as the
residential program, but would potentially entail a greater variety of
lighting improvement incentives, HVAC improvements, high efficiency office
equipment, refrigeration improvement incentives, and time differentiated

The Utilities Department will strive to combine programs (e.g. high
efficiency air conditioning replacements with direct load control) to
maximize peak demand reductions and minimize administrative costs.

“Embracing a comprehensive DSM program is a new venture for the Utilities
Department, and ultimately, the success of this program is tied to our
customers taking advantage of the opportunities presented,” said Frank
McRae, resources division director. “Many of the programs will involve a
rebate for improvements that the customer will arrange for and implement,
so we will be looking to them to take an active role in managing how they
consume energy at home and in their businesses.”

To address the supply side resource requirements, the Utilities Department
will soon issue a request for proposals to acquire electric resources to
replace the expiring Arizona Power Cooperative contract. The Utilities
Department has utilized this practice in the past to acquire new or
replacement resources from the competitive regional electric energy
markets. The Department currently plans to ask for 15-35 Megawatts of
contract demand and associated energy. The actual amount of capacity sought
and acquired will depend on whether market conditions result in the ability
to lower overall energy supply costs and whether the electric generator
sets the City currently owns are retained or sold.

For more information on the City of Mesa Utilities Department or to review
a copy of the Integrated Resources Plan, visit the City’s Web site at

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