Tag Archives: Arizona Public Service

energy.bill

Pinnacle West declares quarterly dividend

Pinnacle West Capital Corporation’s Board of Directors today declared a quarterly dividend of $0.595 per share of common stock, payable on March 2, 2015, to shareholders of record on February 2, 2015.

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of about $14 billion, nearly 6,400 megawatts of generating capacity and about 6,400 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the Company provides retail electricity service to nearly 1.2 million Arizona homes and businesses. For more information about Pinnacle West, visit the Company’s website at pinnaclewest.com.

veterans

Department of Defense honors APS

Employer Support of the Guard and Reserve (ESGR), a Department of Defense office, announced today that Arizona Public Service (APS) of Phoenix, Arizona, is one of 15 recipients of the 2014 Secretary of Defense Employer Support Freedom Award. The Freedom Award is the Department’s highest recognition given to employers for exceptional support of Guard and Reserve employees. This year’s recipients were selected from 2,864 nominations received from Guardsmen and Reservists for going far beyond what the federal law requires to support their military employees.

“I’m honored to announce the recipients of the 2014 Secretary of Defense Employer Support Freedom Award,” said Defense Secretary Chuck Hagel. “Guardsmen and Reservists across the nation rely on strong bonds with their civilian employers. By recognizing these 15 exceptional employers, the Department of Defense celebrates the contributions made by American employers to our Citizen Warriors. I commend these extraordinary employers for their unwavering commitment to service members and their families.”

APS was nominated by Army Reserve Staff Sgt. Michael Rich from the 13th Battalion, Army Reserve Careers Division/Adjutant General. He highlighted the company’s “Troops to Energy Jobs” initiative, which accelerates the hiring of Guardsmen and Reservists and provides support to those employees and their families. APS has created an employee-led group, VETRN (Veteran Engagement Transition Retention Network), that promotes corporate support and recognition for members of the Guard and Reserve. In addition to sponsoring military and veteran organizations, the company also maintains contact with deployed service members, sending care packages overseas and offering assistance to families at home.

The 2014 Freedom Award recipients below will be honored at a ceremony in the Pentagon Sept. 26:

Arizona Public Service
Phoenix, Arizona

AT&T
Dallas, Texas

Capital One
McLean, Virginia

CH2M-WG Idaho
Idaho Falls, Idaho

General Mills, Inc.
Golden Valley, Minnesota

J.G. Management Systems, Inc.
Grand Junction, Colorado

Los Angeles Fire Department
Los Angeles, California

N.H. Department of Environmental Services
Concord, New Hampshire

PNC Bank
Pittsburgh, Pennsylvania

Shofner Vision Center
Nashville, Tennessee

St. Jude Children’s Research Hospital
Memphis, Tennessee

Triumph Pharmaceuticals Inc.
St. Louis, Missouri

UNC Health Care
Chapel Hill, North Carolina

Washoe County School District
Reno, Nevada

Zions Bank
Salt Lake City, Utah

solar

APS Seeks Renewable Energy Projects from Solar

Arizona Public Service Co. announces a Request for Proposal (RFP) from solar developers and installers to construct two 10-megawatt solar photovoltaic facilities – financed by APS through the company’s AZ Sun Program.

The RFP began on June 16, and interested parties are encouraged to participate in a bidder’s webinar on June 23. Additional information about the webinar and the RFP is available online at aps.com/rfp.

Projects must utilize commercially proven technology. When completed in 2015, the new solar facilities – one located on Luke Air Force Base and the other to be built in partnership with the City of Phoenix – will be owned and operated by APS. These facilities will join seven other AZ Sun Projects that are already online or under construction, totaling 170 MW of solar energy for Arizona – enough to power more than 42,000 APS customers.

With the AZ Sun Program, APS is investing in the development of solar photovoltaic power plants across Arizona. The program allows APS to partner with third-party developers and equipment providers to design and construct the facilities, which increase the opportunity for more developers to participate since project financing is provided by APS.

APS, Arizona’s largest and longest-serving electricity utility, serves nearly 1.2 million customers in 11 of the state’s 15 counties. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

Solar Power

Luke AFB Leases Land to APS for Solar Plant

Luke Air Force Base and the state’s largest electric utility provider, Arizona Public Service, have partnered on a new solar power plant to be built on 100 acres of land located on the Base. Construction of the 10-megawatt facility – part of the APS AZ Sun Program – is expected to begin in the fourth quarter of this year.

APS is leasing the land from Luke AFB as part of an energy Enhanced Use Lease. Energy EULs are a partnership between the Air Force and public entities to encourage the development of renewable energy – helping the Air Force to save money while meeting congressionally established Air Force goals. APS will lease the land for 30 years from Luke AFB for $6 million.

Through the APS AZ Sun Program, the utility is investing in photovoltaic power plants across Arizona. The project at Luke AFB will join eight other AZ Sun projects that are already online or in some stage of development, totaling 170 MW of solar energy for Arizona – enough to power more than 42,000 APS customers.

“Our partnership with Luke Air Force Base for this project is great for Arizona,” said Tammy McLeod, APS Vice President of Resource Management. “The solar plant will be highly visible and will set a great example of Arizona’s solar leadership for people from all over the world who live, work and train on Base. Plus, APS is proud to support the Air Force and bring more solar energy to our customers.”

The solar plant will generate enough energy to power 2,500 Arizona homes, and will prevent the emission of 12,000-15,000 tons of greenhouse gases a year, according to Robert Worley, 56th Civil Engineer Squadron installation management flight chief.

“It continues a great partnership that we have with APS,” Worley said.

More than 200 local jobs will be created during the construction of the plant, which is expected to begin in the fourth quarter of this year. The facility will be operational, serving APS customers by summer 2015.

8100WBuckeye Road, WEB

Nuclear response center in Tolleson sells

Commercial Properties, Inc. announced the sale of a 72,570 SF industrial property located at 8100 W. Buckeye Rd. in Tolleson, Ariz.  Andy Jaffe, SIOR of CPI’s Tempe office represented the buyer, Barnhart Crane and Rigging Company, in this transaction.  The masonry building was built in 1998 and is a single tenant building near the corner of 83rd Avenue and Buckeye Road as part of a regional nuclear response center.

Andy Jaffe

Andy Jaffe

This center was established in response to the Fukushima accident in Japan in 2011 where power was lost to effectively cool the reactor.  The Phoenix center will be capable of getting the necessary equipment on-site using air and ground transportation within 24 hours to any site in America.

Randy Edington, executive vice president and chief nuclear officer at Arizona Public Service Company, which operates the Palo Verde nuclear facility commented, “Equipment from the regional response centers will enable all nuclear plant operators to protect their reactors and used fuel storage pools until normal power and cooling systems are restored.  This is an addition to other measures, including built-in safety systems, the use of on-site portable emergency equipment, and portable equipment and materials on hand at all 62 nuclear energy facilities that can be utilized and shared during an emergency.”

Each facility contains five sets of equipment including portable backup generators, pumps, standardized couplings and hoses to be deployed into the field, and will undergo regular testing for operability.

According to Andy Jaffe, SIOR, “Their final decision to occupy was the large amount of land on-site, and overhead doors that aligned for ease of ingress and egress of their equipment.  Also, it was a clear spanned building, which permits movement of their equipment, and proximity to the airport and freeway accessibility were key factors.”

The sale was valued at $3.9 million.

energy supply - AZ Business Magazine May/June 2012

Report Shows Changing Arizona Energy Mix

Arizona Public Service today released its official forecast of how Arizona will meet its growing energy needs over the next 15 years. The report, called an “Integrated Resource Plan,” takes a big-picture look at Arizona’s energy future that helps APS and other stakeholders plan responsibly. The forecast identified three major trends shaping Arizona’s energy future:

* Arizona’s energy mix will be cleaner. The report predicts that energy from renewable sources will double by 2029. The fastest-growing segment within the renewable category is expected to be rooftop solar, which should triple over the same period. Savings from energy efficiency measures, which are intended to reduce customer demand, are also expected to triple by 2029.

* Natural gas will be the new energy source of choice. Because renewable energy can’t supply customers with steady, predictable energy around the clock, Arizona will need more generation from natural gas, which can start and ramp up quickly, and can provide energy reliably day or night. Over the next 15 years, natural gas is projected to surpass coal and nuclear as the largest source of electricity generation for APS customers. APS still will maintain a diverse, balanced resource portfolio to provide customers with affordable electricity, and manage exposure to fuel price volatility.

* Advanced technology will change the electricity grid. In the next 15 years, APS customers will have more choices about their energy use – smart appliances, plug-in electric vehicles, rooftop solar panels and even the possibility of battery storage. To enable these choices while ensuring safe and reliable electricity, APS is modernizing its electricity grid, making it more dynamic and flexible.

“Arizona’s energy future is bright,” said Tammy McLeod, Vice President of Resource Management for APS. “When we look into the future, we see Arizona’s growing energy needs being met with resources that are increasingly clean, diverse and innovative.”

The report paints an optimistic picture of Arizona’s economic growth. It projects that the state’s energy needs will grow 52 percent in the next 15 years. The requirement for peak demand is predicted to hit nearly 13,000 megawatts by 2029, up 60 percent from today’s peak requirement of 8,124 megawatts. Peak demand measures the amount of electricity being used when energy use is at its highest point.

The projected growth of renewable energy, combined with other actions including the recent closure of three coal-fired units at the APS-operated Four Corners Power Plant, is predicted to make the overall APS energy mix cleaner and more efficient. The report anticipates that in 2029, the APS generation portfolio will produce 14 percent less carbon dioxide and use 24 percent less water per megawatt-hour of electricity generated.

The report also envisions the need for flexible generation and a modern electricity grid. In the past, the electricity grid was like a one-way street. Electricity was generated at large, centralized power plants and delivered to customers at the flip of a switch. Today, power generation is becoming more complex and, in the case of renewable energy, unpredictable and variable based on the weather.

To ensure a steady and reliable energy supply, the report anticipates that utilities like APS will need more generating plants that can respond quickly to changes in customer demand and renewable output. For example, when cloud cover suddenly decreases production from solar sources, APS customers will need smaller, quick-starting generation that can respond within minutes to changing conditions. Power plants fueled with natural gas are better at “ramping,” as it is called, than generating sources such as nuclear and coal.

Along with a more flexible energy mix, Arizona will also need a more flexible, modern electricity grid. APS plans to invest $170 million in modern grid technology over the next five years, in addition to routine grid maintenance and upgrades. This includes installing more than 5,000 advanced devices across the electricity grid that will help APS workers keep it safe and reliable.

APS files its Integrated Resource Plan with the Arizona Corporation Commission every two years, forecasting how it will meet customers’ energy needs over a 15-year planning period.

APS, Arizona’s largest and longest-serving electric utility, serves nearly 1.2 million customers in 11 of the state’s 15 counties. With headquarters in Phoenix, APS is the largest subsidiary of Pinnacle West Capital Corporation (NYSE: PNW).

clear energy systems coming to tempe

Scottsdale Healthcare recognized for energy efficiency

Scottsdale Healthcare’s continuing investment in energy efficiency is paying off, with Arizona Public Service Co. recognizing the local nonprofit hospital system for reduced energy use.

An upgrade to the heating, ventilation and air conditioning systems at the Scottsdale Healthcare Greenbaum Surgery Center last fall resulted in a significant reduction in energy needs and earned a $31,314 rebate from APS, said Dan Evans, facilities manager at Scottsdale Healthcare Osborn Medical Center, where the surgery center is located.

The APS Solutions for Business Program offers rebates based on how much energy may be saved through energy efficient equipment as well as efficiency built into system design, according to Evans.

Scottsdale Healthcare Thompson Peak Hospital also has earned recognition for reducing energy use during peak periods. Scottsdale Healthcare is a longtime participant in this green initiative, said Trevor Swanson, hospital facilities manager.

Scottsdale Healthcare has several other ongoing sustainability programs including:

·         Early adoption of LED lights, which last longer and use less energy.
·         Printing reduction, saving more than 3 million pieces of paper.
·         Recycling of paper, plastic, cardboard, metal, medical sharps and computer parts.
·         On-site document shredding, with more than 290 tons of paper recycled in FY2012.
·         Using electric and/or alternative fuel vehicles.
·         Incentives for staff choosing transportation alternatives: free bus passes, employee van pools, carpool partner-finder program, inter-campus shuttle service, secure lockers for bicycles, compressed work weeks and guaranteed ride home program.

Valley Metro’s Clean Air Campaign named Roman Kludka, a coordinator in Scottsdale Healthcare’s Information Technology department, the 2013 Outstanding Bus Commuter for greater Phoenix. Kludka has logged more than 70,000 miles commuting by bus over 14 years. He’s also covered 14,000 miles walking, for a grand total of 84,000 miles.

energy.bill

APS Completes Purchase at Four Corners Power Plant

Arizona Public Service completed on Monday its purchase of Southern California Edison’s ownership in Units 4 and 5 of the Four Corners Power Plant near Farmington, N.M. As part of its plan – originally announced in November 2010 – APS has permanently closed the plant’s older, less efficient Units 1, 2 and 3, and will install additional emission controls on the remaining cleaner, more efficient units.

“This is a milestone occasion,” said Don Brandt, APS Chairman, President and Chief Executive Officer. “We have completed a transaction that will benefit the environment, allow us to continue to support the economy of the Navajo Nation and surrounding community, and help electric users in the Southwest with an important, low-cost generating resource.”

Reflecting on the significance of the transaction, Brandt added, “It is bittersweet because generations of Four Corners employees have dedicated their careers to running those three units to keep the lights on for our customers.”

With the closing of the APS-owned Units 1, 2 and 3, capacity at Four Corners is reduced from 2,100 megawatts to 1,540 megawatts, enabling the plant to serve half a million homes. Acquiring SCE’s 48 percent interest in the larger Units 4 and 5 will increase APS’s total Four Corners capacity from 791 megawatts to 970 megawatts. APS now owns 63 percent of Units 4 and 5, which constitute the plant moving forward.

Environmental benefits derived from reduced emissions and more efficient fuel use will increase significantly. Emissions of particulates are expected to decline by 43 percent, nitrogen oxides (NOx) by 36 percent, carbon dioxide (CO2) by 30 percent, mercury by 61 percent and sulfur dioxide (SO2)by 24 percent.

On Monday afternoon, Units 1, 2 and 3 – which helped ensure a reliable supply of energy for APS customers since 1963 (Units 1 and 2) and 1964 (Unit 3) – were permanently shut down in a ceremony for plant employees. Closure of the three older units by Jan. 1, 2014, and the installation of selective catalytic reduction equipment on Units 4 and 5 by July 31, 2018, will satisfy Best Available Retrofit Technology (BART) requirements for the plant issued by the U.S. Environmental Protection Agency in August 2012.

Decommissioning work, including complete dismantle and removal of the older units and any associated structures, will begin immediately and is expected to last about three years. Employees with responsibilities operating and maintaining Units 1, 2 and 3 now will focus on decommissioning activities.

The final purchase price for the Southern California Edison share is approximately $182 million, which is substantially less than other generation alternatives.

“Our plan for the plant moving forward saves APS customers nearly a half-billion dollars over other energy sources and maintains a highly reliable, cost-effective source of electricity generation for APS and other users in the Southwest,” said Mark Schiavoni, APS Executive Vice President, Operations. “Along with natural gas, nuclear, renewables and energy efficiency, coal has an important place in our company’s balanced energy portfolio.”

As APS committed when the agreement was announced in 2010, Schiavoni reiterated that no layoffs are planned at the plant, which employs 434 workers (82 percent of whom are Native American). Any required reduction in workforce will come through normal attrition. The Four Corners Power Plant and supporting mining operations create an estimated $225 million annual economic impact on the Navajo and New Mexico economies. During the next 30 years, their operation could generate more than $6.3 billion in economic value for the region, at least 70 percent of which will benefit the Navajo Nation.

Also, APS on Monday filed an application with the Arizona Corporation Commission to recover costs associated with the purchase of SCE’s interest in the plant. The company’s 2012 rate case settlement includes a provision that allows APS to seek rate relief for those expenses prior to its next rate case. The filing amounts to a bill impact of about 2 percent. For a typical APS residential customer, monthly bills would increase from $140.12 to $142.89.

APS, Arizona’s largest and longest-serving electricity utility, serves more than 1.1 million customers in 11 of the state’s 15 counties. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

Joel Hiller

Hiller Elected President of Arizona Citizens for the Arts

Joel Hiller, President of the Yavapai Indian Cultural Center, has been elected president of the Arizona Citizens for the Arts Board of Directors.

Hiller will be joined on the executive committee by Vice President: Robert Knight, Tucson Museum of Art; Secretary: Phillip C. Jones, community volunteer and former executive director of the Phoenix Office of Arts and Culture; Treasurer: Dawn Brown, Arizona Business Consulting; Directors at Large: Rick Pfannensteil, Pfocus LLC, and Jeff Rich, Rich-Gillis Law Group.  Also elected to the executive committee were Tom Chapman, retired educator, Advocacy Committee chair; and Lynn Tuttle, Arizona Department of Education, Finance Committee chair.

The following new board members were elected to three-year terms:  Laurie Goldstein, Freescale Semiconductor; Charles Goldstein, Emcare; Anne Kleindienst, Polsinelli P.C.; Bernadette Mills, West Valley Arts Council; Maureen O’Brien, Musical Instrument Museum; Vincent VanVleet, Phoenix Theatre; and Michael Vargas, Arizona Public Service.

Four board members were re-elected to serve another three-year term including Chapman; Jennifer Burns, Public Affairs Consulting; Sen. Steve Farley, Arizona State Senate; and Steve Martin, Childsplay.

For more information about Arizona Citizens for the Arts, visit www.azcitizensforthearts.org.

sales.tax

Arizona Business Community Supports HB2111

The undersigned organizations and businesses want to express their strong support for the passage of HB2111 with the floor amendment that will be offered by Senator Steve Yarbrough. This final amendment represents major concessions to address concerns that have been expressed by the city representatives.

This final amendment reflects the cities’ request for a separate online portal for the collection of sales taxes in the 18 non-program cities. In addition, the amendment reflects the cities’ demand to maintain the authority to audit single-location businesses in their city. Lastly, the amendment removes all of the changes to prime contracting tax except for the trade and service contractors.

While the Yarbrough amendment reflects major concessions to the cities that undermine some of the important reforms recommended by the Transaction Privilege (Sales) Tax Simplification Task Force, we believe this final proposal still reflects historic progress that deserves final passage.

The Senator Yarbrough floor amendment will provide for the following:

* Single Point of Administration – the Department of Revenue (DOR) will become the single point of administration and collection of TPT. However, at the request of the cities, there will be a separate online portal for the 18 non-program cities. Despite this concession, the cities remain opposed because they want to continue to require businesses making paper sales tax remissions to pay the state and city separately. Their proposal provides most small businesses no administrative relief from making multiple payments to multiple jurisdictions each month.

* Single and Uniform Audit – DOR will administer a standardized state audit program where all state and city auditors are trained and certified by DOR. Despite major concessions from the business community to allow cities to continue to audit local businesses, the cities continue to push for further changes that will undermine much needed reforms to standardize state and local audits.

* Trade/Service Contracting Reform – Service contractors working directly for an owner to maintain, repair, and replace existing property would pay tax on materials at retail and not be subject to the Prime Contracting Tax. During Task Force deliberations, the cities repeatedly conceded that this area of the prime contracting tax was problematic and should be changed. However, after almost a year of study and discussion, they have offered a change to the taxation of service contractors that provides no administrative relief and couples that change with a request that the state give the cities $80 million from use tax collections.

Arizona’s chaotic and dysfunctional sales tax system has been the subject of considerable controversy at the Capitol for over 30 years. The creation of the Task Force, as well as the appearance for the first time that the cities recognized the need for reform, gave Arizona businesses great hope that this system would finally be reformed. We strongly encourage state policymakers to pass a sales tax reform bill that is grounded in sound tax policy and focuses on reducing the extraordinary compliance costs on Arizona businesses.

Kevin McCarthy, President, Arizona Tax Research Association
Michelle Lind, Chief Executive Officer, Arizona Association of REALTORS
Bas Aja, Executive Vice President, Arizona Cattlemen’s Association
Glenn Hamer, President & CEO, Arizona Chamber of Commerce
Steve Macias, Chairman, Arizona Manufacturer’s Council
Francis McAllister, Chairman, Arizona Mining Association
Courtney LeVinus, Arizona Multihousing Association
Michelle Allen Ahlmer, Executive Director, Arizona Retailers Association
Steve Chucri, President/CEO, Arizona Restaurant Association
Rick Murray, Chief Executive Officer, Arizona Small Business Association
Steve Zylstra, President & CEO, Arizona Technology Council
Greg Turner, Vice President, Senior Tax Council, Council On State Taxation (COST)
Lisa Rigler, President, Small Business Alliance AZ
Todd Sanders, President & CEO, Greater Phoenix Chamber of Commerce
Tom Franz, President, Greater Phoenix Leadership
Connie Wilhelm, President, Home Builders Association of Central Arizona
Tim Lawless, Chapter President, NAIOP
Farrell Quinlan, Arizona State Director, NFIB
Ronald E. Shoopman, President, Southern Arizona Leadership Council
Scot Mussi, President, The Arizona Free Enterprise Club
Matt Beckler, Vice President, Treasurer & Chief Tax Officer, Apollo Group, Inc.
Steve Barela, State & Local Tax Manager, Arizona Public Service
Steve Trussell, Executive Director, Arizona Rock Products Association
Michael DiMaria, Director of Legislative Affairs, CenturyLink, Inc.
Gayle Shanks, Owner, Changing Hands Bookstore
Michelle Bolton, Director of Public Affairs, Cox Communications
Nikki Daly, Owner, Flair! Salons
David Karsten, President, Karsten’s Ace Hardware
Reuben Minkus, Minkus Advertising Specialties
PetSmart, Inc.
Tina Danloe, General Manager, Pima Ace Hardware
Molly Greene, Senior Government Relations Representative, Salt River Project
Les Orchekowsky, President & Co-Owner, Sierra Ace Hardware, Inc.
Ann Seiden, Administrator/Corporate Public Affairs, Southwest Gas Corporation
Joseph Hughes, Director of Government Affairs, U.S. Airways
Walgreens Co.

Glenn Hamer is president and CEO of the Arizona Chamber of Commerce and Industry. The Arizona Chamber of Commerce and Industry is committed to advancing Arizona’s competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans.

electricity

SRP Offers Free Electrical Safety Workshop

SRP is sponsoring a free Electric Safety Workshop to educate workers on the potential hazards of working near overhead and underground electrical power lines and other utilities. The workshop will focus on tree workers, landscapers and excavators as well as individuals who work around utility lines.

Instruction will be in English and Spanish.

The event will include safety presentations on overhead and underground electrical, gas and other utilities, OSHA regulations, Blue Stake procedures, trenching and shoring demonstrations, and live electrical demonstrations of what can happen when contact is made with power lines. The event will also feature presentations by the Arizona Division of Occupational Safety and Health, Arizona Public Service, Southwest Gas, Cox Communications, Arizona Blue Stake, Arizona Burn Center, Trench Shore Rentals, Asplundh Tree Expert Company and Liberty Wildlife. There will also be safety presentations including a live tree rescue and hazards involving chain saws and aerial lifts.

Participants must be 18 years or older. The workshop includes lunch and a chance to win raffle prizes. Tree workers can receive 4.5 CEUs (A/U/T/M) from the International Society of Arboriculture.

When: 7 a.m. to 1 p.m. on Saturday, February 23. Registration begins at 6 a.m.

Where: SRP’s PERA Club, 1 East Continental Drive in Tempe.

Where: Every year, professional tree trimmers, landscapers and excavators are killed or seriously injured in electrical contact tree-trimming and excavation accidents.  Workers also operate dangerous equipment and are vulnerable to serious injuries when working near overhead and underground electric lines and other utilities.

For more information or to register, call (602) 236-2995 or email electricsafetywksp@srpnet.com.

srp installs solar energy systems

Energy Consortium’s Roadmap puts state of path to build industry

Imagine Arizona as the energy hub of the Southwest — where major regional transmission lines tie into infrastructure in the state and serve a growing regional demand for energy. Arizona would be a place where an increasing percentage of jobs are related to the energy industry, whether in manufacturing, generation, transmission, energy efficiency, service or technology innovation. Many of these jobs would be higher-wage jobs requiring a skilled labor force fed by Arizona’s schools and universities. Arizona could be a hub of energy-sector jobs, with factories making equipment for the industry and power plants shipping electricity to neighboring states via new power lines, all contributing to a better economy.

That is the essence of the Arizona Energy Consortium’s Energy Roadmap, which the group hopes with be a catalyst for the state’s energy industry in the same way Arizona’s Bioscience Roadmap helped the state increase bioscience jobs by 41 percent and helped increase the number of bioscience establishments by 27 percent during its 10-year plan.

“It was important to create this document to give the energy industry a unified voice and direction,” said said Michelle De Blasi, co-chair of the AEC and a shareholder at Greenberg Traurig. “The energy industry is going to be here forever. We are always going to need energy. So the Roadmap was designed to make the industry better for everyone — consumers, developers, legislators. So it was critical that we get it right.”

This is the vision the Roadmap hopes to realize over the next decade: Arizona is the energy hub of the Southwest, with a diverse energy mix supporting reliable transmission, a strong base of manufacturing facilities, increased numbers of higher wage jobs, and world-class research institutions, resulting in increased economic development for the state and region.

Once that vision is realized, De Blasi said the state can expect to reap these benefits:
• Enhanced job creation and higher-wage jobs within Arizona
• Increased state economic revenue
• Enhanced energy export potential
• Heightened energy self-sufficiency and national and state security
• Increased transmission reliability
• Continued low cost energy

“This Roadmap is going to help Arizona be looked at differently from outside its borders,” said Chris Davey, co-chair with De Blasi of the AEC and president of EnviroMission, which is developing a solar tower in Western Arizona. “The Roadmap will create a sense of certainty, which appeals to the finance community. So when they are looking to invest, that certainty creates a more attractive environment for developers and investors.”

Davey and De Blasi said they will be rolling out the Roadmap this year, presenting it to groups throughout the state. For more information on the Roadmap, visit aztechcouncil.org.

ROADMAP CONTRIBUTORS

Arizona Commerce Authority
Arizona Governor’s Office of Energy Policy
Arizona Public Service
Bridge Strategy Group
Brownstein Hyatt Farber Schreck
City of Mesa, the Office of the Mayor
Cleantech Open
Dircks
DIRTT
DMB Associates
Energy Services Coalition
EnviroMission
Faithful+Gould
Greater Phoenix Economic Council
Greenberg Traurig
The Green Chamber – Greater Phoenix
Golder Associates
Hensel Phelps
Ikoloji
Institute for Tribal Environmental Professionals
J.D. Porter & Associates
Kolbe Connect
Matthew McDonnell
Ormond Group, LLC
RG Schmelzer, Inc.
Salt River Project
Stream Energy
Tucson Electric Power
Valley Forward
Valley Partnership

7 Marketing Tips & Strategies, Entourage Marketing

R&R Partners adds new clients, staff

R&R Partners is leaping into 2013 adding new clients and staff as the agency gets comfortable in its new central Phoenix office space. Just recently, R&R took on Arizona Public Service (APS), IO, the datacenter company, and the Health & Wealth Raffle benefiting Barrow Neurological Institute and St. Joseph’s Hospital.

R&R now occupies the entire 29th floor at 101 N. First Avenue giving agency staff added room for growth. With an expanded client roster and new space have also come multiple new hires with plans to add more creative and account services staff.

New staff members include the following:

Ken Pham, Copywriter
A native of Arizona and a Sun Devil graduate, Ken Pham has worked across a vast range of clients with different desires and budgets. Pham’s ability to bring big ideas have earned him significant industry Emmy and Addy awards. He has developed and built brands for local, regional and national accounts such as NextCare Urgent Care, Phiten U.S.A., McDonald’s, Massage Envy, Peter Piper Pizza, Paradise Bakery & Cafe, Bashas’ and The Phoenix Zoo.
At R&R Partners, he exercises his talents on accounts such as APS, IO Data Centers, Health & Wealth Raffle benefiting Barrow Neurological Institute and St. Joseph’s Hospital, Valley Metro, The Residences at the Ritz Carlton Dove Mountain and Cox Business Services.

Ashley George, Senior Art Director
Ashley George brings a wealth of agency experience to R&R – having worked with top agencies before including High Wide & Handsome in Los Angeles and Young & Rubicam in San Francisco. Her talent has helped shape top brands such as Arbor Mist, Dell, Sunkist, Chevron, and Texaco. At R&R Partners, she works on APS, IO, St. Joseph’s Health & Wealth Raffle and Cox Communications.

Sarah Leidy, Assistant Media Buyer
Sarah Leidy hails from the East Coast where she helped launch an interactive Olympic summer campaign during her time at Neo@Ogilvy in New York City.  At R&R, she assists with negotiations and purchasing of advertising space across all media for R&R clients including St. Joseph’s Health & Wealth Raffle, Valley Metro, the Las Vegas Convention and Visitors Authority, and The Residences at the Ritz-Carlton, Dove Mountain.

Beau Cowan, Web Developer
Beau Cowan joined R&R from Yandy.com and was hired to support R&R’s work on the agency’s Boeing International account. His work includes designing and developing new Boeing sites as well as maintaining them for consistency over time.

Matt Porembski, Designer
Matt Porembski developed his talent on interdisciplinary teams at Intel and Motorola.  He also worked as an in-house designer for a Phoenix based law firm. As a part of R&R Partners’ digital team, he creates design options for many of R&R’s web clients.

Stuart Luther, Government and Public Affairs Associate
Stuart Luther began fine-tuning his public affairs expertise while he was a student assistant for the U.S Global Change Research Program in Washington, D.C. and strengthened his research abilities as an intern for the appropriations committee for the Arizona House of Representatives. Blending the two skills together made him perfect for the R&R Partner’s Government and Public Affairs Associate position, where he dives into research to help position R&R’s clients in the public affairs sphere.

Ivanna Garcia, Agency Coordinator
Ivanna Garcia brings a diverse journalism, public relations and community relations background to R&R with experience ranging from work at a boutique advertising agency, work with the U.S. Attorney’s Office and work with another national public relations/advertising firm.  At R&R, Garcia works on public relations for the Health & Wealth Raffle, Valley Metro, and Cox Communications accounts.

7 Marketing Tips & Strategies, Entourage Marketing

R&R Partners adds new clients, staff

R&R Partners is leaping into 2013 adding new clients and staff as the agency gets comfortable in its new central Phoenix office space. Just recently, R&R took on Arizona Public Service (APS), IO, the datacenter company, and the Health & Wealth Raffle benefiting Barrow Neurological Institute and St. Joseph’s Hospital.

R&R now occupies the entire 29th floor at 101 N. First Avenue giving agency staff added room for growth. With an expanded client roster and new space have also come multiple new hires with plans to add more creative and account services staff.

New staff members include the following:

Ken Pham, Copywriter
A native of Arizona and a Sun Devil graduate, Ken Pham has worked across a vast range of clients with different desires and budgets. Pham’s ability to bring big ideas have earned him significant industry Emmy and Addy awards. He has developed and built brands for local, regional and national accounts such as NextCare Urgent Care, Phiten U.S.A., McDonald’s, Massage Envy, Peter Piper Pizza, Paradise Bakery & Cafe, Bashas’ and The Phoenix Zoo.
At R&R Partners, he exercises his talents on accounts such as APS, IO Data Centers, Health & Wealth Raffle benefiting Barrow Neurological Institute and St. Joseph’s Hospital, Valley Metro, The Residences at the Ritz Carlton Dove Mountain and Cox Business Services.

Ashley George, Senior Art Director
Ashley George brings a wealth of agency experience to R&R – having worked with top agencies before including High Wide & Handsome in Los Angeles and Young & Rubicam in San Francisco. Her talent has helped shape top brands such as Arbor Mist, Dell, Sunkist, Chevron, and Texaco. At R&R Partners, she works on APS, IO, St. Joseph’s Health & Wealth Raffle and Cox Communications.

Sarah Leidy, Assistant Media Buyer
Sarah Leidy hails from the East Coast where she helped launch an interactive Olympic summer campaign during her time at Neo@Ogilvy in New York City.  At R&R, she assists with negotiations and purchasing of advertising space across all media for R&R clients including St. Joseph’s Health & Wealth Raffle, Valley Metro, the Las Vegas Convention and Visitors Authority, and The Residences at the Ritz-Carlton, Dove Mountain.

Beau Cowan, Web Developer
Beau Cowan joined R&R from Yandy.com and was hired to support R&R’s work on the agency’s Boeing International account. His work includes designing and developing new Boeing sites as well as maintaining them for consistency over time.

Matt Porembski, Designer
Matt Porembski developed his talent on interdisciplinary teams at Intel and Motorola.  He also worked as an in-house designer for a Phoenix based law firm. As a part of R&R Partners’ digital team, he creates design options for many of R&R’s web clients.

Stuart Luther, Government and Public Affairs Associate
Stuart Luther began fine-tuning his public affairs expertise while he was a student assistant for the U.S Global Change Research Program in Washington, D.C. and strengthened his research abilities as an intern for the appropriations committee for the Arizona House of Representatives. Blending the two skills together made him perfect for the R&R Partner’s Government and Public Affairs Associate position, where he dives into research to help position R&R’s clients in the public affairs sphere.

Ivanna Garcia, Agency Coordinator
Ivanna Garcia brings a diverse journalism, public relations and community relations background to R&R with experience ranging from work at a boutique advertising agency, work with the U.S. Attorney’s Office and work with another national public relations/advertising firm.  At R&R, Garcia works on public relations for the Health & Wealth Raffle, Valley Metro, and Cox Communications accounts.

minorities

Summit spotlights impact of minority-owned companies

Fifteen corporations and nonprofits that do tens of millions in contracts with minority-owned companies in Arizona, and the release of a detailed new, post-recession survey of minority-owned business will be among the highlights of the 2012 Minority Business Enterprise Summit in downtown Phoenix Friday.

The 2012 Minority Business Enterprise Summit was organized by the Arizona Hispanic Chamber of Commerce and Phoenix MBDA Business Center . The event takes place Nov. 16, 2012, 10 a.m.-1 p.m., at Renaissance Hotel Downtown, 50 East Adams Street in Phoenix.

“The summit speaks to the growing influence of minority-owned businesses in Arizona and the historic demographic shift that’s helping reshape the economy of our state and our nation,” said Gonzalo de la Melena, president and CEO of the Arizona Hispanic Chamber of Commerce, which operates the federally-funded Phoenix MBDA Business Center.

MBE summit highlights include:

* The release of the 2012 Minority Business Enterprise Report (the first-of-its-kind since 2007) regarding the state of minority-owned businesses in Arizona.
* Inaugural inductions into the Arizona Million Dollar Circle of Excellence: Leading the Way in Supplier Diversity recognizing corporations and non-profits that do at least $1 million in business with minority- and women-owned companies in Arizona.
* The annual presentation of the Minority Enterprise Development Awards.

The 2012 MBE Report will be released during a Friday morning presentation starting at 10 a.m. The report was conducted by Westgroup Research and designed to serve as a resource for businesses, organizations, educators, government agencies and individuals who want to help Arizona MBEs succeed.

The report’s findings include:
* About 78% of the MBEs in Arizona have less than 10 employees.
* Nearly one-quarter of MBEs did not feel they were treated with respect when applying for a loan.
* Among survey participants, the median gross revenue in 2011 was $215,000 with a median staff size of four employees.
* Minority business owners are optimistic about the future — 63% feel their financial situation will improve in the next 12 months.

During the Summit’s Friday luncheon, 15 companies and governmental organizations will be inducted in the Arizona Million Dollar Circle of Excellence. AZHCC President De la Melena said the this initiative breaks new ground by recognizing major corporations and governmental entities that directly spend at least $1 million purchasing goods or services from minority-owned and women-owned businesses in Arizona. Several of the companies individually spend tens of millions annually contracting with minority- and women-owned firms. The project also is intended to promote and share best practices regarding supply-chain diversity, said de la Melena.

The AZ Million Dollar Circle of Excellence is co-chaired by Donald E. Brandt, Chairman & Chief Executive Officer of Arizona Public Service, and Lorena Valencia, President/CEO, Reliance Wire & Cable and a member of the Arizona Hispanic Chamber of Commerce board of directors. Arizona Public Service is a major purchaser of good and services from minority- and women-owned companies and the presenting sponsor for the summit and the 2012 MBE Report.

“Our state is rapidly becoming a national leader for diverse business supplier programs,” said APS’s Brandt, whose company has spent about $1.5 billion with women- and minority-owned businesses since 1992. “All of Arizona benefits from the jobs that are created and the resulting competition that leads to better goods and services. For our state to achieve its full economic potential, Arizona businesses must continue to seek out qualified diverse suppliers, hire them and put them in a position to succeed.”

De la Melena added, “The induction of the inaugural members of Arizona Million Dollar Circle of Excellence is our way of recognizing companies that are doing the right thing by ensuring they have diverse supply chain.”

The MBE Summit luncheon will also honor the winners of the annual Minority Enterprise Development Week Awards which recognize the achievements of minority-owned companies in the Southwest.

MINORITY CONSTRUCTION FIRM OF THE YEAR, Fortis Networks, Inc., Reyna & Clarence McAllister

MINORITY TECHNOLOGY FIRM OF THE YEAR, 360 Vantage, Mario Martinez

MINORITY FIRM OF THE YEAR, Technology Integration Group, Ying McGuire

ACCESS TO CAPITAL AWARD, Prestamos CDFI LLC

electricity

SRP, APS Sending Crews to New York

Salt River Project and Arizona Public Service are sending a combined 21 line crews and support staff to New York to assist the Long Island Power Authority (LIPA) in restoring power in the aftermath of Hurricane Sandy.

SRP is sending 62 employees (including 11 four-person line crews and 12 substation electricians) equipped with line trucks, hole diggers and wire pulling equipment. APS, meanwhile, will send 36 employees (including 10 three-person line crews) equipped with bucket trucks and boom trucks. The two organizations’ contingent also includes crew support and safety personnel.

The trucks – and a limited number of personnel from the two utilities – are scheduled to depart Friday sometime after 6 a.m. via military air transport from the Arizona Air National Guard, located at 3200 E. Old Tower Road Phoenix, AZ 85034. The remaining SRP and APS employees are scheduled to depart from Williams Gateway Airport in Mesa at approximately noon Friday.

Millions of East Coast residents have been without power since the storm hit on Monday.  LIPA alone reported more than 1 million customers without power at the height of the storm.  Many customers are expected to be without electricity for as long as 10 days and perhaps longer.

“Utilities in the United States have a long history of working together when needed,” said Vince Featherly, SRP’s senior director of Distribution Design, Construction & Maintenance.  “We realize how difficult the situation is there for the utilities and their customers, and we’re happy to help in any way we can.”

“A safe, reliable supply of electricity is vital to any community, and we are prepared to help Long Island customers get back to their regular lifestyle,” said Daniel Froetscher, APS Vice President of Energy Delivery. “Our thoughts are with those whose lives have been impacted by Hurricane Sandy.”

It is anticipated that crews will stay in the area for as long as two weeks, the two utilities said.

SRP is the largest provider of power to the greater Phoenix area, serving more than 950,000 electric customers.

APS, Arizona’s largest and longest-serving electricity utility, serves more than 1.1 million customers in 11 of the state’s 15 counties. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp.

Arizona Public Service

Arizona Public Service Co. Seeks Renewable Energy Projects

Arizona Public Service Co. announces a Request for Proposal (RFP) from solar developers and installers to construct a 14-megawatt solar photovoltaic facility – financed by APS through the company’s AZ Sun Program.

The RFP will commence on March 15. Interested parties are encouraged to participate in a bidder’s webinar on March 22. Additional information about the webinar and the RFP is available online.

Projects must employ commercially proven technology. When completed in 2013, the new solar facility, part of the AZ Sun Program, will be owned and operated by Arizona Public Service and is expected to provide electricity to more than 3,500 Arizona homes.

With AZ Sun, APS is investing in the development of 200 MW of solar photovoltaic power plants across Arizona. APS is partnering with third-party developers and equipment providers to design and construct the facilities, increasing the opportunity for more developers to participate since project financing is provided by APS.

The AZ Sun Program was approved by the Arizona Corporation Commission in 2010, and expanded to include another 100 MW in January 2012. The five-year program is expected to have at least eight solar facilities online by 2015 and create more than 2,400 Arizona construction jobs.

APS, Arizona’s largest and longest-serving electricity utility, serves more than 1.1 million customers in 11 of the state’s 15 counties. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

Centennial Series - AZ Business Magazine January/February 2012

Centennial Series: Arizona’s History Impacts The Way We Live Our Lives

100 Years of Change: From ‘Sesame Street’ to scientific breakthroughs, Arizona’s history impacts the way we live our lives

During Arizona’s first century, every elementary school student in the state learned about the five Cs that drove Arizona’s economy — copper, cotton, cattle, citrus and climate.

There is a chance that if you ask Arizona elementary school students what C words drive the state’s economy now, their best answers might be casinos or Cardinals, whose University of Phoenix Stadium has been filled with fans, and hosted both a Super Bowl and a BCS championship game since it opened in 2006.

A lot has changed since copper and cotton drove the state, but that doesn’t lessen the impact Arizona’s first 100 years had on the way we live our lives today.

Here are a baker’s dozen events, people or projects from Arizona’s history, its first 100 years, that shaped the state or helped the state make history:

Gaming

In 1988, the U.S. Congress passed the Indian Gaming Regulatory Act (IGRA) in response to the proliferation of gambling halls on Indian reservations. IGRA recognized gaming as a way to promote tribal economic development, self-sufficiency, and strong tribal government.

By the end of 1994, 10 casinos were in operation in Arizona. Currently, 15 tribes operate 22 casinos in the state, creating a huge boost for Arizona tourism and the economy.

To put it into perspective, a study commissioned by the Ak-Chin Indian Community in 2011 showed that Harrah’s Ak-Chin Casino Resort alone accounts for 1,094 jobs, $36,713,700 in payroll, and a total economic impact on the community of $205,322,355. And those numbers represent figures before the resort added a 152-room hotel tower in July 2011.

Air travel

In 1935, the City of Phoenix bought Sky Harbor International Airport for $100,000. In 2010, the airport served 38.55 million passengers, making it the ninth busiest in the U.S. in terms of passengers and one of the top 15 busiest airports in the world, with a $90 million daily economic impact. The airport handles about 1,252 aircraft daily that arrive and depart, along with 103,630 passengers daily, and more than 675 tons of cargo handled.

“As much as anywhere in the U.S., Phoenix is a creature of good air connections,” says Grady Gammage Jr., an expert on Arizona’s history. “There is no good rail service (in Arizona). There are no real transportation corridors. Sky Harbor has had a huge impact.”

Road travel

Another transportation milestone occurred in 1985 when the Maricopa Association of Governments approved a $6.5 billion regional freeway plan for Phoenix and voters approved a 20-year, one-half cent sales tax to fund it. By 2008, the Arizona Department of Transportation had completed the construction and Phoenix boasted 137 miles of loop freeways that link the metro area.

The loop freeways have had a significant impact on shaping Phoenix and, ultimately, Arizona, says Dennis Smith, MAG executive director.

“The loop freeways resulted in a distribution of job centers around the Valley,” Smith says. “That allows every part of the Valley to achieve its dream and have employment closer to where the homes are. That distributes the wealth throughout the Valley.”

Smith says the freeways also extended the Valley’s reach to Yavapai, Pinal and Pima counties, creating a megapolitan area known as the Sun Corridor.

Master-planned neighborhoods

Arizona is home to countless master-planned residential communities, but the first one — Maryvale — opened in 1955 in West Phoenix as the post-war years exerted their influence. Its developer, John F. Long, wanted to plan and build a community where young people could buy an affordable home, raise a family and work, all in the same area. He named the development after his wife, Mary, and its influence is felt to this day.

“Because Maryvale was a master-planned community and because John did affordable housing, the master plan included a lot of parks, school sites and shopping areas,” says Jim Miller, director of real estate for John F. Long Properties. “It really was where people could live and work. If you lived in Maryvale, you weren’t more than three-quarters of a mile from a park or school. That forced a lot of other builders to adopt the same type of philosophy.”

The first homes sold for as little as $7,400, with a $52-a-month mortgage. The first week the models went on the market, 24,000 people stopped by to take a look.

Retirement communities

A year before Maryvale opened, Ben Schleifer introduced a different lifestyle to an older demographic. In 1954, Schleifer opened Youngtown in West Phoenix, the first age-restricted retirement community in the nation, according to research by Melanie Sturgeon, director of the state’s History and Archives Division. No one younger than 50 could live there. By 1963, Youngtown had 1,700 residents and Arizona was on its way to becoming a retirement mecca.

But it was builder Del E. Webb and his construction companies that firmly established the concept of active, age-restricted adult retirement in Arizona with the opening of Sun City on Jan. 1, 1960, next to Youngtown and along Grand Avenue. According to Sturgeon’s research and a magazine observing Sun City’s 50th anniversary, about 100,000 people showed up the first three days to see the golf course, recreation center, swimming pool, shopping center and five model homes. Traffic was backed up for miles. The first homes sold for between $8,500 and $11,750. Sun City had 7,500 residents by 1964 and 42,000 by 1977, the same year Webb decided the community was big enough and he began construction on Sun City West.

Law

Ernesto Arturo Miranda was a Phoenix laborer whose conviction on kidnapping, rape, and armed robbery charges based on his confession under police interrogation resulted in the landmark 1966 U.S. Supreme Court case (Miranda v. Arizona), which ruled that criminal suspects must be informed of their right against self-incrimination and their right to consult with an attorney prior to questioning by police. This warning is known as a Miranda warning.

After the Supreme Court decision set aside Miranda’s initial conviction, the state of Arizona retried him. At the second trial, with his confession excluded from evidence, he was again convicted, and he spent 11 years in prison.

Healthcare

The first successful surgery and use of an artificial heart as a bridge to a human heart transplant was conducted at the University Medical Center in Tucson by Dr. Jack Copeland in 1985. His patient lived nine days using the Jarvik 7 Total Artificial Heart before he received a donor heart.

It also put the spotlight on Arizona as a place where cutting-edge research and healthcare was taking place.

Copeland made several other contributions to the artificial heart program, including advancing surgical techniques, patient care protocols and anticoagulation. He also performed the state’s first heart-lung transplant and the first U.S. implant of a pediatric ventricular assist device. In 2010, Copeland moved to a facility in San Diego, where he continues to make an impact on health care.

Entertainment

Joan Ganz Cooney, who received her B.A. degree in education from the University of Arizona in 1951, was part of a team who captured the hearts and imaginations of children around the world with the development of Sesame Workshop, creators of the popular “Sesame Street.” Now in its 42nd season, the children’s television show uses puppets, cartoons and live actors to teach literacy, math fundamentals and behavior skills. Today, Cooney serves as a member of Sesame Workshop’s executive committee. In 2007, she was honored by Sesame Workshop with the creation of The Joan Ganz Cooney Center, which aims to advance children’s literacy skills and foster innovation in children’s learning through digital media.

Military bases

Williams Air Force Base in Mesa, which broke ground for its Advanced Flying School on July 16, 1941, allowed more than 26,500 men and women to earn their wings. It was active as a training base for both the U.S. Army Air Forces, as well as the U.S. Air Force from 1941 until its closure in 1993.

It also opened the door for other military training bases in Arizona, including Luke Air Force Base; which employs more than 8,000 personnel and covers 4,200 acres and is home to the largest fighter wing in the world, the 56th Fighter Wing; Davis-Monthan Air Force Base in Tucson, home to the A-10 Thunderbolt II, which was used in combat for the first time during the Gulf War in 1991, destroying more than 900 Iraqi tanks, 2,000 military vehicles, and 1,200 artillery pieces; and Yuma Marine Corps Air Station, which specializes in air-to-ground aviation training for U.S. and NATO forces. In 1990, almost every Marine that participated in Operations Desert Shield and Desert Storm trained at Yuma.

Solar power

Solar power has the potential to make Arizona “the Persian Gulf of solar energy,” former Gov. Janet Napolitano once said. But despite the overabundance of sunshine, the industry didn’t take root in the state until the end of the last century.

The first commercial solar power plant in the state came in 1997 when Arizona Public Service (APS) built a 95-kilowatt, single-axis tracking photovoltaic plant in Flagstaff. In 1999, the City of Scottsdale covered an 8,500-square-feet parking lot with photovoltaic panels, to both provide shaded parking and generate 93 kilowatts of solar power.

Arizona installed more than 55 megawatts of solar power in 2010, doubling its 2009 total of 21 megawatts, ranking it behind California (259 megawatts), New Jersey (137 megawatts), Florida (110 megawatts), and Nevada (61 megawatts).

Water

Construction of the Central Arizona Project — which delivers water to areas where 80 percent of Arizonans reside — began in 1973 at Lake Havasu. Twenty years and $4 billion later, it was completed south of Tucson. The CAP delivers an average 1.5 million acre-feet of water annually to municipal, agricultural and Native American users in Maricopa, Pima and Pinal counties.

“Without the CAP, we wouldn’t have the population we have today,” says Pam Pickard, president of the CAP board of directors. “We wouldn’t have our economic base. We wouldn’t have the industry we have.”

But the CAP wouldn’t have been possible without another milestone that occurred nearly 60 years earlier — Hoover Dam and its reservoir, Lake Mead, 30 miles southeast of Las Vegas. Hoover Dam, constructed between 1933 and 1936, tamed the Colorado, which Marshall Trimble, Arizona’s official state historian, says was even more erratic than the Salt River. The dam created reliable water supplies for Arizona’s Colorado River Valley and, eventually, Central and Southern Arizona via the CAP.

Sports

On April 24, 2000 Arizona Gov. Jane Dee Hull signed a bill that created the Arizona Tourism and Sports Authority (initially known as the TSA). Later, it was renamed to the Arizona Sports and Tourism Authority.

The Arizona Sports and Tourism Authority was instrumental in the constructions of University of Phoenix Stadium, home of the Arizona Cardinals and an anchor of Glendale’s sports complex. The development of the stadium, also home to the Fiesta Bowl, marked a shift in the economic landscape of the West Valley and Arizona sports. The Stadium has already hosted one Super Bowl and will host a second in 2015.

The Arizona Sports and Tourism Authority has also been instrumental in Cactus League projects — including Surprise Stadium, Phoenix Municipal Stadium, Tempe Diablo Stadium, Scottsdale Stadium, Goodyear (Cleveland Indians and Cincinnati Reds) and in Glendale (Los Angeles Dodgers and Chicago White Sox.) The economic impact of Cactus League baseball is estimated at $350 million a year.

“There’s no doubt about it, sports is an integral part of any destination tourism package,” says Lorraine Pino, tourism manager at the Glendale Convention and Visitors Bureau. “Our tourism literally exploded over the past few years.”

Isabelle Novak, Noelle Coyle and Tom Ellis contributed to this story.

Arizona Business Magazine January/February 2012


Solar Panels - AZRE Magazine July/August 2011

Solar Panels And Installations Make Good Financial Sense

Figuring out the bottom line return on investment figures for installing solar panels on commercial buildings is a bit like hitting a moving target. Incentives from utilities are apt to change and sow uncertainty in the market, thus access to capital can be iffy in these challenging economic times.

But some business owners who have installed systems in the past year agree: The right incentive package from Arizona Public Service or Salt River Project, combined with federal and state tax incentives, makes solar a good financial — as well as environmental — bet.

Here is a snapshot of two businesses that managed to put the right ingredients together.

Cowley Companies and APS

Cowley Companies, a Phoenix real estate investment firm, placed one of the largest commercial rooftop solar arrays in the country on one of its warehouses near 25th Avenue and Buckeye Road.

The project cost $11.5M and includes 7,872 panels, which generate about 2.4 megawatts of power. According to CEO Mike Cowley, the solar array is producing half of the electricity needed in the 850,000 SF building, which includes tenants with industrial refrigeration requirements. His annual bill had been running about $1M.

Cowley says he had to sign a non-disclosure agreement with APS and cannot reveal what the utility company is paying him per kilowatt hour, but the agreement obligates APS to pay incentives until 60% of the project costs — the amount he borrowed to finance the project — is paid off. The incentive payments cover the loan payments. Cowley estimates that will take about 12 years.

He’ll recoup 30% of the cost through a federal tax credit. Additionally, tenants now reimburse him for power used. With that mix of incentives and payments, he calculated his self-financed portion of the project, about 10%, will be paid off in about six years.

With a 25-year warranty on the panels, the decision to erect the array made good financial sense, Cowley says.

In 2009, APS established a reverse-auction system that requires commercial entities to bid for an incentive package. Spokesman Steven Gotfried says APS scores each application and awards the bid to those who produce the most electricity for the lowest incentives.

APS’ calculator takes into account the system size, the amount of energy it is expected to produce, the incentive requested and years of payment. The lower the score, the smaller the incentive per kilowatt hour requested. Incentives are then awarded starting with the lowest score. This continues until all the funds are allotted. It’s a competitive, market-driven process designed to lower incentives.

Lower incentives, Cowley says, would have made his deal less feasible.

“People are not going to get excited about a 20-year payback,” he says. Businesses may even “be waiting for SRP and APS to bring the rate back up to where solar makes sense again.”

Gotfried says APS is trying to find the right balance between offering too few and too many incentives, with a finite pool or resources.

“The goal at the end of the day is to drive down the cost of solar,” he says. “The incentives weren’t meant to go on forever, they were meant to get things started.”

The price of solar panels has dropped 50% in the past three years, says Lee Feliciano, president of the Arizona Solar Energy Industries Association and a solar developer with CarbonFree Technology.

There may come a time, he says, when the industry no longer offers incentives for the panels, but that day is not yet on the horizon.

“The incentives are there to position the industry,” Feliciano says. “A lot of the biggest industries in the country would not be here without incentives.”

Even with incentive amounts dropping, installing solar panels on a commercial building can still be a good deal, says Gary Held, sales and marketing manager with Harmon Solar, which worked on the Av-Air project.

With incentive rates running around 10 cents to 12 cents per kilowatt hour, someone with access to capital can have a system paid off in about eight years. With a 20-year production-based incentive, that still makes financial sense, he says.

An owner who leases a system can see the end of lease payments in about 12 years and have eight years of incentives.

“We shout from the rooftops: If you are a commercial business owner with cash or access to capital with good credit, putting solar on your rooftop is a sound investment,” Held says.

Av-Air and SRP

“I am extremely satisfied with the way it is turning out for us,” says Bob Ellis, president of Reason’s Aviation, the parent company of Av-Air, a Chandler-based company that offers aftermarket parts and services to the airline industry.

Harmon Solar of Phoenix installed a 151,800-watt photovoltaic system made up of 550 solar panels on Av-Air’s rooftop, which is equivalent to about 20 residential-sized systems.

Ellis says the total cost of the project was $808,000. About 30% of the cost was covered by a federal grant and $25,000 will come back to him as a state tax credit, which is available to companies whose solar systems are operational this year.

The solar array covers 100% of his energy needs and SRP, he says, is paying him an incentive of 21.4 cents per kilowatt hour for 10 years, which comes out to $6,000 a month. Add that to the approximate $4,000 a month his tenants pay him for solar generated electricity and the fact that he’s no longer paying an electric bill, and the decision to go solar was “a no-brainer.” Ellis says it will take him about four years to pay back his $560,000 in up-front, out-of-pocket expenses.

The only downside to the process occurred when none of the four or five banks he does business with would lend him money for the out-of-pocket expenses, saying they were too unfamiliar with the incentive process.

Ellis also concedes it may be difficult for companies today to replicate Av-Air’s circumstances because SRP’s incentives are much less generous than they were in 2009.

“It was a really good deal and I got in on it just at the right time,” he says.

Both SRP and APS have production based incentive (PBI) programs for medium- and large-sized commercial customers. PBIs pay a customer over time based on the amount of energy produced, as opposed to the up-front incentives given to homeowners or small-business owners.

SRP now offers a PBI of 12 cents per kilowatt hour for 20 years for the first two megawatts of power applied for, but lowers the funding to 11 cents and then 10 cents respectively for each successive two megawatts. Its annual pool is for six megawatts.

Lori Singleton, SRP manager for sustainable initiatives and technology, says the utility simply has a finite set of resources and is trying not to over-subsidize an emerging industry.

“As the cost of solar decreases and demand increases, we have restructured our solar incentives to reflect that,” Singleton says. “It has been our intent from the beginning to reduce the rates as prices come down, so one day the industry can stand on its own without incentives.”

Reducing incentives also allows SRP to provide them to more customers, she says.

For more information about solar panels and incentive programs, visit srpnet.com or aps.com.

AZRE Magazine July/August 2011

Hoover Dam Construction, 1933-1936 - AZ Business Magazine May/June 2011

Building Achievements Turned Arizona From Frontier Outpost To Thriving Haven

In 1912, when it became the nation’s 48th state, Arizona was a challenging place to live. It was sparsely populated with small communities scattered hither and yon. Travel between towns was grueling. The lower desert was unbearably hot in the summer, and water was scarce and unreliable.

Arizona would have had a dim future if it hadn’t engineered a reliable water supply, says Marshall Trimble, Arizona’s official state historian. In 1902, when President Theodore Roosevelt signed the National Reclamation Act, Phoenix was an agricultural community that suffered through wild swings between drought and a flooding Salt River, Trimble says. Farmers and ranchers banded together as the Salt River Valley Water Users’ Association to lobby for federal funding for the legislation’s first water reclamation project — construction of Roosevelt Dam northeast of Phoenix to tame the Salt and store water in Roosevelt Lake for future use.

This was the beginning of what would become Salt River Project (SRP), one of Arizona’s major utilities, and Trimble pegs the dedication of Roosevelt Dam in 1911 as the first step toward a modern Arizona. Today, SRP operates seven dams on the Salt and Verde rivers and delivers more than 1 million acre feet of water annually to Central Arizona.

But as Phoenix became increasingly urbanized, SRP’s 13,000-square-mile watershed couldn’t keep up with demand, and Arizona’s most populated areas were drawing more water out of the ground than was being replenished. As early as 1946, Arizonans began to hear about the need for delivery of Colorado River water to the Phoenix and Tucson population centers via a 336-mile canal called the Central Arizona Project. Construction of the CAP began in 1973 at Lake Havasu, and 20 years and $4 billion later, it was completed south of Tucson. The CAP delivers an average 1.5 million acre-feet of water annually to municipal, agricultural and Native American users in Maricopa, Pima and Pinal counties, where 80 percent of Arizonans live today.

“Without the CAP, we wouldn’t have the population we have today,” says Pam Pickard, president of the CAP board of directors. “We wouldn’t have our economic base. We wouldn’t have the industry we have.”

But the CAP wouldn’t have been possible without another milestone that occurred nearly 60 years earlier — Hoover Dam and its reservoir, Lake Mead, 30 miles southeast of Las Vegas. Hoover Dam, constructed between 1933 and 1936, tamed the Colorado, which Trimble says was even more erratic than the Salt. The dam created reliable water supplies for Arizona’s Colorado River Valley and, eventually, Central and Southern Arizona via the CAP.

Electricity

Electrical power generation in Arizona significantly preceded statehood and provided the “juice” for future development. Another major utility, Arizona Public Service (APS), traces its roots to 1886 in Phoenix. Electricity also came to Tucson in the 1880s, but the forerunner of today’s Tucson Electric Power (TEP) didn’t come about until 1892. SRP began delivering power to an expanding customer base in the 1920s, and created the Salt River Project Agricultural Improvement and Power District in 1937 to operate the utility’s power generation and distribution system.

Statistics from these utilities bear witness to Arizona’s escalating hunger for electricity. TEP had 300 customers in 1903. That grew to 16,000 in 1932; 112,600 in 1970; and more than 400,000 today. TEP generating capacity jumped from 648,000 kilowatts in 1970 to 2,229 megawatts today.

Mergers led to the creation of APS in 1952. At that time, APS served 114,000 power customers with a 324-megawatt capacity. Today, APS serves 1.1 million customers in 11 of the state’s 15 counties with a 6,293-megawatt capability. APS also helped bring nuclear power generation to Arizona. APS operates and owns 29.1 percent of the Palo Verde Nuclear Generating Station located about 50 miles west of Phoenix. The largest nuclear power plant in the U.S., Palo Verde’s three units are capable of producing nearly 4,000 megawatts of electricity.

SRP’s electricity customer base grew to 7,684 in 1940; 169,773 in 1970; and 942,024 by the end of 2010. Another measuring rod — peak power demand — reached an all-time high at SRP in 2006 at 6,590 megawatts.

War, Manufacturing and Refrigeration

According to Trimble, the real turning point for Arizona industry came about in less than a decade during the mid-20th century. After America’s entry into World War II in December 1941, Luke Air Force Base in Glendale and Williams Air Force Base in Mesa became major training facilities for war pilots. Manufacturing for the war also contributed to Arizona’s economy, which continued to grow, Trimble says.

Then two critical milestones occurred closely together, say Trimble and another close observer of Arizona’s history, Grady Gammage Jr.

“There was a lot of home construction in Arizona after the war,” Trimble says. “GIs were moving here to start a new life. Many of them had trained in Arizona and liked the weather.”

Except perhaps for those summer temperatures, and they became less of a problem when affordable air conditioning became available in 1950, Trimble says.

Trimble points to 1950 as the year Arizona moved from a pioneer outpost to a modern state, thanks to refrigeration and a growing population that embraced it. Gammage, who is author of “Phoenix in Perspective: Reflections On Developing the Desert,” says window refrigeration units first appeared in Arizona in 1948. Two years later, Arizona led the nation in the number of window air conditioning units sold. By 1960, there was more central air conditioning in Arizona homes than window units, Gammage says.

“Refrigeration did a couple of things,” Gammage notes. “First, it was one of the critical building blocks that allowed people to move here. Second, it transformed Arizonans’ lifestyles.”

Master-Planned Communities

Arizona is home to countless master-planned residential communities, but the first one — Maryvale — opened in 1955 in West Phoenix as the post-war years exerted their influence. Its developer, John F. Long, wanted to plan and build a community where young people could buy an affordable home, raise a family and work, all in the same area. He named the development after his wife, Mary, and its influence is felt to this day.

Maryvale Billboard, Arizona Business Magazine May/June 2011

Photo: John F. Long Properties

“Because Maryvale was a master-planned community and because John did affordable housing, the master plan included a lot of parks, school sites and shopping areas,” says Jim Miller, director of real estate for John F. Long Properties. “It really was where people could live and work. If you lived in Maryvale, you weren’t more than three-quarters of a mile from a park or school. That forced a lot of other builders to adopt the same type of philosophy.”

The first homes sold for as little as $7,400, with a $52-a-month mortgage. The first week the models went on the market, 24,000 people stopped by to take a look. Long built 24,000 homes in Maryvale and by the mid-1990s, he and other developers had mostly finished the community.

Retirement Communities

A year before Maryvale opened, Ben Schleifer introduced a different lifestyle to an older demographic. In 1954, Schleifer opened Youngtown in West Phoenix, the first age-restricted retirement community in the nation, according to research by Melanie Sturgeon, director of the state’s History and Archives Division. No one younger than 50 could live there. By 1963, Youngtown had 1,700 residents and Arizona was on its way to becoming a retirement mecca.

But it was builder Del E. Webb and his construction companies that firmly established the concept of active, age-restricted adult retirement in Arizona with the opening of Sun City on Jan. 1, 1960, next to Youngtown and along Grand Avenue. According to Sturgeon’s research and a magazine observing Sun City’s 50th anniversary, about 100,000 people showed up the first three days to see the golf course, recreation center, swimming pool, shopping center and five model homes. Traffic was backed up for miles. The first homes sold for between $8,500 and $11,750. Sun City had 7,500 residents by 1964 and 42,000 by 1977, the same year Webb decided the community was big enough and he began construction on Sun City West.
Today, Arizona boasts many retirement communities.

Transportation

Two milestones that occurred decades apart cemented Phoenix’s future as Arizona’s population and economic hub.
In 1935, the city bought Sky Harbor International Airport for $100,000. Today, that investment is responsible for a $90 million daily economic impact. Sky Harbor also helped Central Arizona thrive.

Construction Interstate 17, Arizona Business Magazine May/June 2011

Photo: Arizona Department of Transportation

“As much as anywhere in the U.S., Phoenix is a creature of good air connections,” Gammage says. “There is no good rail service (in Arizona). There are no real transportation corridors. Sky Harbor has had a huge impact.”

The other milestone occurred 50 years later when the Maricopa Association of Governments approved a $6.5 billion regional freeway plan for Phoenix and voters approved a 20-year, one-half cent sales tax to fund it. By 2008, the Arizona Department of Transportation had completed the construction and Phoenix boasted 137 miles of loop freeways that linked the metro area.
The loop freeways have had a significant impact on shaping Phoenix and, ultimately, Arizona, says Dennis Smith, MAG executive director.

“The loop freeways resulted in a distribution of job centers around the Valley,” Smith says. “That allows every part of the Valley to achieve its dream and have employment closer to where the homes are. That distributes the wealth throughout the Valley.”

Smith says the freeways also extended the Valley’s reach to Yavapai, Pinal and Pima counties, creating a megapolitan area known as the Sun Corridor.

 

Arizona Business Magazine May/June 2011