UES Encourages Customers to Invest in

UES Encourages Customers to Invest in 'Green Power' Projects

KINGMAN, Ariz., Aug 18, 2004 (BUSINESS WIRE)

UniSource Energy Services (UES) is offering two new programs that help customers pay for their own solar energy systems and provide an easy way to support the development of community "green power" projects.

UES electric customers who install new grid-connected photovoltaic systems at their homes or offices could be eligible for a new UES SunShare subsidy of up to $4,500 on a typical 1,500-watt system. The incentive was approved Aug. 3 by the Arizona Corporation Commission (ACC).

The ACC also approved the UES GreenWatts program, which provides an affordable way to support projects that reduce our reliance on fossil fuels. Participants can add $2 or more to their electric bills each month to "adopt" GreenWatts, and their money will support efforts to produce community-based power from the sun.

"We hope these new programs encourage our customers to invest in renewable energy," said Dennis Nelson, chief operating officer of UES. "We're building a partnership with our customers to ensure that solar power and other 'green' energy sources play a significant role in Arizona's future."

The UES SunShare program subsidizes the installation of solar power systems linked to UES' local distribution system, or grid. That connection gives customers who select Net Metering a chance to earn credits toward their UES bills by providing their excess solar energy to the local grid.

The SunShare program offers a subsidy of up to $3,000 per kilowatt (kW) of DC capacity. For a system to qualify for that subsidy, UES must receive a completed SunShare agreement by the end of 2004 and the system must be operational within 180 days after receipt of that agreement. The subsidy will be reduced to up to $2,700 per kW in 2005 and up to $2,400 per kW in 2006. This year, a typical 1.5 kW DC home system producing about 2,000 AC kWh annually would be eligible for a subsidy of up to $4,500. The program is limited to subsidizing up to 50 kW of solar capacity per year.

UES GreenWatts participants can sponsor a single GreenWatt by adding $2 to their monthly UES electric bills. Each additional GreenWatt costs $1.50 per month. Proceeds from the GreenWatts program will be used to build new solar power projects in the communities served by UES.

Until UES can establish its own sources of renewable energy, a portion of GreenWatts contributions will be used to purchase green power "credits" from sources including Tucson Electric Power Co. (TEP), UES' sister company.

Those credits, along with the energy generated by new UES solar projects and the subsidized, grid-connected SunShare systems, will help UES comply with the ACC's Environmental Portfolio Standard. That standard encourages utilities to produce an increasing amount of energy from the sun and other renewable sources.

UniSource Energy Services, a subsidiary of UniSource Energy Corp. (NYSE: UNS), provides gas and electric service to more than 206,000 customers across Arizona. For more information about UES, visit uesaz.com. For more information about UniSource Energy, visit unisourceenergy.com.

SOURCE: UniSource Energy Services

UniSource Energy Services Joe Salkowski, 520-884-3625

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