New AG-1 Electricity Program To Be Available for Large Businesses in Arizona

Good news! On May 15, the Arizona Corporation Commission voted to approve Arizona Public Service Company’s (APS) rate case settlement, which included Experimental Rate Schedule AG-1. This means that commercial, industrial, and public sector customers with at least 10 MW and up to 200 MW of peak load within the APS service territory can now experience a number of significant benefits, including price stability and the possibility of cost savings by contracting with a third-party Generation Service Provider, such as Constellation, for up to four years.

The way it works is fairly simple. The Generation Service Provider (GSP) will negotiate with the customer or business to provide electricity meeting the customer’s requirements. The electricity will be delivered to APS pursuant to a separate wholesale power contract that the GSP will execute with APS. APS will continue to deliver energy and bill businesses (or customers) for the electricity supply provided by the GSP and transmission and distribution services provided by APS.

For more details about AG-1, along with a resource document that outlines the program’s parameters as well as frequently asked questions, please visit our page about Arizona Energy Choice here: http://www.constellation.com/business-energy/pages/arizona-energy-choice.aspx

The program’s final details and guidelines are still under development. Constellation expects to be able to begin serving customers under AG-1 in Q4 2012. Businesses that are located in Arizona that are interested in learning more about Experimental Rate Schedule AG-1, including benefits and customer qualifications for participation, please contact us at CNESalesAZ@constellation.com or 1-866-237-8693.