1. UniSource Energy Update
Linda Douglas-Worthey
Assistant Director, Conservation and Renewable Programs
Arizona Energy Efficiency Community Outreach
April 16, 2009
Phoenix, AZ

2. UNS Service Territory and Companies
TEP Electric Service Area
Customers – 392,000
Sales – 9,201 GWh
Peak Demand – 2,365 MW
Kingman
Flagstaff
UNS Gas Service Areas
Customers – 145,000
Sales – 109,925,000 therms
UNS Electric Service Area
Tucson
Customers – 93,000
Sales – 1,611 GWh
Peak Demand – 417 MW
Nogales
UNS Gas & Electric Service Area

3. Regulatory - Approved $11.0 Million DSM
Company
Programs
Launched
Net Societal Benefits*
Budget
(annual)
Number of Programs
TEP
2008
$95 Million
$8.2 Million
9 Programs
UNS Electric
$9 Million
$1.7 Million
7 Programs
UNS Gas
$2 Million
$1.0 Million
4 Programs
*Net Societal Benefits for five year program portfolio (2008 – 2012)

4. UNS Environmental Saving (approved 2008-2012)
Factor
Units
Total Savings
CO2
lbs/MWh
3.7 Billion pounds
Water
gals/MWh
624 Million gallons
SO2
3.3 Million pounds
NOx
5.8 Million pounds
These savings are based in large measure on not having to burn coal to produce electricity – that’s what replacing megawatts with negawatts is all about!

5. Approved Programs Programs TEP UNSE UNSG
Cross Segment Programs (Residential and Small Commercial)
Education and Outreach 
Residential Efficiency Programs
Low-Income Weatherization
New Home Construction
Residential HVAC Retrofit
Shade Tree
CFL Buydown
Commercial Efficiency Programs
C&I Existing Facilities
Small Business Program
Efficient Commercial Building Design
TEP and UES proposes to implement its DSM Portfolio, designed to reduce the use of energy by encouraging its customers to implement certain energy-efficiency products, services or practices, and help TEP and UNSE manage peak loads through the implementation of a Direct Load Control (“DLC”) Program. The proposed programs are designed to influence residential and non-residential customers to adopt energy efficiency measures through a combination of rebates, technical assistance and training, and consumer education.

6. Guarantee Home Program (TEP)
Program launched 1998
Based on Integrated Building Science
Quality Assurance Inspections and Testing
5 yr Guarantee for Heating/Cooling Costs and Comfort
Lower electric rate
Rebates paid to builders
50% of the market share in TEP’s service territory

7. Energy Smart Home (UNSE & UNSG)
Programs launched 2008
Market Transformation Program
Based on Integrated Building Science
Quality Assurance Inspections and Testing
Meets 2006 Energy Star Requirements
Rebates paid to Builders

8. Efficient Home Cooling (TEP and UNSE)
Programs Launched 2008
Rebates for installation of high efficiency AC and Heat Pumps with 14+ SEER Ratings
Save up to 20% of your cooling costs
Rebates directly to customers up to $250 per unit
Contractors receive $25/unit for each installation

9. Efficient Home Heating (UNSG)
Rebates for installation of high efficiency furnaces with 90+ AFUE
Save up to $1,960 in heating costs over lifetime of equipment (Flagstaff)
Rebates directly to customers up to $325 per unit
Contractors receive $25/unit for each installation
Program Launched 2008

10. Energy Star Lighting (TEP and UNSE)
Manufacturer Buy-down Program
Retailer passes lower cost to customer
Customer purchases lamps directly from retailer
Wide variety of products available
In-store promotions and training
No coupons to send back
Program Lunch 2008 (TEP)
Program Launch 2008 (UNSE)

11. Shade Trees (TEP and UNSE)
TEP: Trees for Tucson
Trees for Tucson purchases and delivers trees
TEP provides funding to Trees for Tucson
Customer pays $8.00 per tree (total cost to customer)
Each tree will reduce cooling costs by up to $350 over it’s lifetime
Program Launch 2005
UNSE: Trees for You
UNSE provides coupons to customers
Customer purchases trees from retailer
UNSE credits $15.00 per tree to customer bill
Program Launch 2009

12. Commercial Energy Solutions (TEP, UNSE, UNSG)
Rebates to Install high efficiency equipment
Lighting
Refrigeration
Heating and Cooling
Motors
Air Compressors
Water heating and boilers (UNSG only)
Custom Measures
Rebates paid directly to the customer (Large Business Program)
Rebates paid to the contractor (Small Business Program)

13. Low-Income Weatherization TEP, UNSE and UNSG
Improve Energy Performance in Low-Income Homes
Improve Health and Safety in Low-Income Homes
Duct sealing
Replace broken windows
Insulation repair and replacement
HVAC repair and replacement
Combustion safety testing and repair
CFL lighting and refrigerator replacement
NOTE: All programs work with Low-Income agencies approved by the State Energy Office.

14. Education and Outreach TEP and UNSE
General Energy Efficiency Education
Web-based energy analysis
Energy efficiency media campaigns
Educational web-sites
Academic Education
K-12 Energy Education
Children’s Museum Exhibit
Time-of Use Education
Brochures
Web-site
Promotional Ads

15. Future Programs Under Evaluation
Tune-up, early retirement and duct repair
Existing home retro-fit (shade screens, window film, air sealing and insulation)
Refrigerator and Freezer Recycling
Energy Star Appliances
Solar Water Heaters in Low-Income Homes
Net-Zero Energy New Home Program
Direct Load Control

16. Renewable Energy TEP – 2009 REST Budget $30 Million
UNSE – 2009 REST Budget $ 5 Million
Commercial and Residential Rebates
Up-Front Incentive < 20 kW
Performance Based Incentive > 20 kW
Visit tep.com or uesaz.com for details

17. Questions??