Phoenix, Ariz. – The Arizona Corporation Commission voted to approve a new Bring-Your-Own-Device (BYOD) Pilot program for Arizona Public Service Company (APS) customers who have installed home battery systems.  This program allows participating customers to receive financial compensation for providing energy from their personal battery storage to the electric grid during specified time periods, or “events.”  The customers’ stored energy would be used to help stabilize the grid during peak demand periods when excess power is in limited supply and typically purchased by a utility at a premium. For example, during the summer when electricity usage spikes while Arizonans keep their air conditioners running during extreme weather.

The Pilot Program allows up to 5,000 APS residential customers and their battery storage providers to enable APS to dispatch participating batteries and provide aggregate Demand Response capacity, which would function like a Virtual Power Plant. Customers must agree to participate in up to 60 events per year, each event expected to last one to four hours and will occur between 4:00 P.M. and 10:00 P.M. from May 1 through October 31.

Customers who participate in the BYOD Program will be compensated with an annual $110/kW capacity payment based on the seasonal average capacity of energy exported the electric grid from their battery system. The utility would typically only call an event and utilize the additional generation when market rates would otherwise be much higher than the $110/kW rate, thus saving all ratepayers money.

“I applaud all the parties for working together on the design of this pilot program to test a virtual power plan concept,” said Commissioner Rachel Walden, who sponsored the amendment to approve the pilot program. “This pilot’s design, which uses residential batteries that are called upon during times of high energy demand, ensures we maintain a reliable grid. This program has guardrails to ensure no costs are shifted to non-participants. I’ll be monitoring the annual performance to ensure the program continues to meet its objectives.”

 Chair Kevin Thompson commented during the Open Meeting on the rarity of having the majority of Commissioners, the utility, and stakeholders – to come to the agreement on the concept and implementation of a new program, and that anytime Commissioners have an opportunity to save ratepayers money, they should act.  Given the increasing demand for electricity in Arizona, the Commission recognizes the importance of leveraging existing resources, saving ratepayers money, and supports the advancement of home battery installations.

While ACC Staff originally recommended the BYOD program be rejected and revised over concerns regarding cost shifts to non-participating customers, the Commission voted 4-1, approving the Pilot Program, with Vice Chair Nick Myers opposing.