Arizona Public Service calls for hydro and other renewables

Arizona Public Service Co. is calling for proposals for new sources of renewable energy, including hydropower, that can be delivered to the company’s system.

Responses for near-term sources are due April 9, while responses offering long-term sources are due May 15. Eligible technologies include hydro, solar, wind, hybrid wind and solar, biomass/biogas, landfill gas, fuel cells, and geothermal resources.

To be eligible, hydro plants in existence prior to 1997 must involve new increased capacity of existing facilities, or generation from pre-1997 facilities used to firm or regulate the output of other eligible, intermittent renewable resources.

New hydropower of 10 MW or less installed after Jan. 1, 2006, also is eligible if it meets certain criteria. Eligible projects include: low-head, micro-hydro, run-of-river systems that do not require new damming of stream flow; existing dams that add power generation equipment without new dams, diversion structures, or change in water flow that would adversely affect fish, wildlife, or water quality; or generation using canals or other irrigation systems.

Near-term proposals would include projects beginning in 2007 or 2008, with final delivery not to exceed Dec. 31, 2008. Long-term proposals would cover a period beginning in 2007 and extending through 2011. Minimum terms are for five years, and maximum terms are for 30 years.

Energy from the solicitation will help Arizona Public Service meet a renewables standard set by the Arizona Corporation Commission for investor-owned utilities serving retail customers in Arizona. ACC adopted rules in 2006 to expand the state’s renewable energy standard to 15 percent by 2025. Arizona’s original environmental portfolio standard required regulated utilities to phase in the energy they obtain from renewables beginning at .2 percent in 2001.

Parties interested in the request for proposals are encouraged to attend a bidders’ conference March 14 at utility headquarters in Phoenix. Non-binding notices of intent to bid are due March 21.

APS plans to notify a short-list of bidders offering near-term proposals May 2, and make final selections June 29. It expects to notify a short-list of bidders offering long-term proposals June 11, and make final selections Aug. 15.

Bidder conference information, a notice of intent to bid form, and other RFP documents are on the Internet at www.aps.com/rfp. For information, contact Gordon Samuel, Manager Resource Acquisition, Arizona Public Service Co., 400 N. Fifth St., Mail Station 9674, Phoenix, AZ 85004; Fax: (1) 602-250-2753.

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