Power Infrastructure TITLE. David Bentler, Manager, APS Economic Development

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1 Power Infrastructure TITLE David Bentler, Manager, APS Economic Development 2018

2 Arizona Public Service (APS) 11 counties 34,646 square mile service area 1.2 million customers 425 substations 28,979 distribution line miles 5,958 transmission line miles 64 generation units

3 It s a complicated world out there! It s a complicated world out there!

4 It s a complicated world out there! Utility business is complicated

5 Power Capacity FONT STYLE- ARIAL Generation: How Electricity is Made Nuclear Coal-fired Wind Hydroelectric Gas combined-cycle Solar

6 FONT STYLE- ARIAL Receiving Station 230/69kV Generating Station Step-up Transformer Transmission 230kV Subtransmission 69kV Distribution Building 277/480V Industrial./Commercial 12kV Distribution Substation 69/12kv System Operations

7 Power Capacity Overhead FONT Electric STYLE- Distribution ARIAL System Overhead Transformer Primary Distribution Feeders Secondary Distribution Lines CATV Telephone

8 Power Conversion Key Terminology Substation: An electric power facility that serves as a control and transfer point in an electric transmission system, and where the voltage of electricity is reduced before distribution to customers/end users Transformer: A device used to change voltage to a higher or lower level Demand (kw): The total amount of electricity being used by customers at a given time Energy (kwh usage): A amount of electrical energy used by the customer Kilowatt-hour (kwh): Energy consumed in 1 hour

9 Power Conversion Key Terminology Transmission system: A system of wires or electric cables used to carry electric energy at high voltages between two points - usually a generating station and a receiving station (major substation) Distribution system: One or more circuits of a distribution system operating at relatively low voltage as compared with transmission lines. The distribution system "steps down" power from higher-voltage transmission lines to a level that can be used in homes and businesses

10 Power Conversion Key Terminology Load Factor: The ratio of actual usage to maximum potential usage, based on peak demand Power Factor: The ratio of resistive power to apparent power (PF = kw/kva)

11 Power Characters Federal FONT Regulation STYLE- of the ARIAL Industry Federal Regulators The FERC The Federal Energy Regulatory Commission (FERC) is the federal agency that regulates electricity transmission and wholesale electricity sales in interstate commerce. FERC implements the laws of Congress through orders and rulemakings on electricity policy. Visit for detailed information on FERC

12 Power Characters FONT STYLE- ARIAL State Regulation of Industry Arizona Corporation Commission was established by Article 15 of the Arizona Constitution Currently five members / staggered four-year terms Arizona is one of 13 states with elected commissioners. The Arizona constitution explicitly calls for an elected commission, as opposed to a governor-appointed commission, which is the standard in most states The Arizona Corporation Commission has jurisdiction over the quality of service and rates charged by public service utilities

13 Power Characters FONT STYLE- ARIAL Differences in Public and Private Power Community Owned (SRP) Local Control: Communityowned utilities are governed by locally elected boards or commissions. Boards are elected by constituents to set rates and policies. Investor Owned (APS) Shareholder and PUC Control: Investor-owned utilities are governed by private boards of directors. State utility commissions (PUCs) set their rates. Directors are elected by the shareholders.

14 The Three Things You Need to Know About Power as an Economic Development Professional Electricity is Your Friend! Power Lines are Beautiful! Utilities are Your Friends!

15 This might be taking it too far

16 Utilities are your friends

17 Utilities are your friends

18 I need service at 277/480 with a dual feed for a 1500 kw load with an automatic transfer switch using the existing 3000 MVA transformer.

19 Power Conversion Information Needed for Assessment/Rate Estimate Basic Information Needed: Site location (address, intersection or map) Peak demand in kilowatts (kw or MW) Energy consumption in kwh per month/year Load factor Hours of operation/days per week Needed supply & delivery voltages at site(s) Actual electric bill if it exists

20 Power Conversion Why Bring the Utility in on the Projects? To Manage Customer & Community Expectations: Review by engineers and planners Determine best way to serve the customer Determine if impending change will affect service to other customers Helps the customer understand potential charges and timelines.

21 Power Infrastructure Closing Thoughts Prospect requirements are changing and are becoming more sophisticated When planning and working with prospects, involve your utility early in the process

22 It s a complicated world out there! Use your utility partners!

23 APS Economic Development Mike Martin David Bentler Kelly Patton Mackenzie Fitz-Gerald

24 SRP Economic Development Gretchen Kitchel Caryn Gose Karla Moran

25 Tucson Electric Power Larry Lucero Art McDonald

26 Final Quiz What are the Three Things an Economic Developer Needs to Know About Electricity? Electricity is Your Friend! Power Lines are Beautiful! Utilities are Your Friends!

27 Thank you! David Bentler Manager, Economic Development, APS

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