Kevin Thompson, Chair | Arizona Corporation Commission
Kevin Thompson, Chair | Arizona Corporation Commission
The Arizona Corporation Commission has approved a new Bring-Your-Own-Device (BYOD) Pilot Program for Arizona Public Service Company (APS) customers who have home battery systems. This initiative allows participants to receive financial compensation for supplying energy from their personal battery storage to the electric grid during specific periods, known as "events." The stored energy will help stabilize the grid during peak demand times, such as in summer when electricity usage surges due to air conditioning.
The pilot program accommodates up to 5,000 APS residential customers and their battery storage providers. It enables APS to dispatch these batteries, creating a Virtual Power Plant that provides aggregate Demand Response capacity. Participants must agree to engage in up to 60 events annually, each lasting one to four hours between 4:00 P.M. and 10:00 P.M., from May 1 through October 31.
Participants in the BYOD Program will receive an annual $110/kW capacity payment based on the seasonal average capacity of energy exported from their battery system. The utility would typically call an event only when market rates exceed the $110/kW rate, thus saving money for all ratepayers.
Commissioner Rachel Walden expressed support for the collaborative design of this pilot program, stating, “I applaud all the parties for working together on the design of this pilot program to test a virtual power plan concept.” She emphasized that it maintains grid reliability without shifting costs to non-participants and committed to monitoring its performance.
Chair Kevin Thompson highlighted the rarity of consensus among Commissioners, utilities, and stakeholders on new programs' concepts and implementations. He noted that saving ratepayers money is crucial amid rising electricity demand in Arizona.
Despite initial recommendations by ACC Staff against the BYOD program due to concerns about cost shifts to non-participating customers, the Commission voted 4-1 in favor of approving it. Vice Chair Nick Myers was the sole dissenter.
Alerts Sign-up