Hydro eligible for Arizona Public Service call for power

Arizona Public Service seeks proposals for energy generated from small renewable energy projects, including some hydropower. A pre-bid conference is scheduled April 16, with bids due June 4.

APS said it needs new sources of renewable energy that cumulatively can provide 45,000 MWh annually from a diverse mix of renewables technologies. Projects must employ commercially proven technologies and provide at least 1,500 MWh per year. The actual number of projects selected and total energy received will depend on several factors, including cost to customers, the utility said. Projects must enter commercial operation by Dec. 31, 2011.

APS said the request for proposals is expected to help the utility fulfill the regulatory requirements of Arizona’s Renewable Energy Standard. The state’s regulated utilities must provide at least 15 percent of their total electricity from renewable energy sources by 2025.

APS said renewable energy from small generation resources also will help it meet requirements of its Small Generation Pilot Program. APS expects the new RFP will help developers of small projects by streamlining proposal and contract procedures. It encourages developers to include a partnership with municipalities, government, or educational institutions in their project proposals.

Eligible renewables include some hydropower technologies, and biogas, landfill gas, biomass, geothermal, solar, wind, and hybrid wind and solar. To be eligible, hydro facilities that began operation before 1997 must meet at least one of two criteria: new increased capacity from improved technological or operational efficiencies or operational improvements; or generation used to firm or regulate the output of eligible, intermittent renewable resources.

New hydropower facilities installed after Jan. 1, 2006, are eligible if the generator is 10 MW or less and is either: a low-head, micro-hydro run-of-river system that does not require damming of the stream flow; or an existing dam that adds power generation equipment without requiring a new dam, diversion structures, or a change in water flow that would adversely affect fish, wildlife, or water quality; or generation using canals or other irrigation systems.

Hydropower technologies were included among eligible renewables in several previous APS solicitations, including a call for distributed energy resources. (HNN 8/19/08) Distributed energy resources are excluded from the new RFP.

APS, the principal subsidiary of the Pinnacle West Capital Corp., serves about 1.1 million customers in 11 Arizona counties. It is Arizona’s largest electric utility.

APS issued the new RFP March 25. Non-binding notices of intent to bid are due April 30, followed by a June 4 deadline for proposals. A short list of companies is to be notified July 23, the utility said.

Information and RFP documents may be obtained from the Internet at www.aps.com/rfp. For other information, contact Gordon Samuel, Manager of Resource Acquisitions, Arizona Public Service Co., 400 N. Fifth St., Mail Station 9674, Phoenix, AZ 85004; E-mail: renewablerfp@aps.com.

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