Arizona utilities have successfully implemented demand-response programs using smart Thermostats to reduce electricity use during peak hours of Extreme Heat. In July and August, over 100,000 customers collectively reduced their electricity use by 276 megawatts. These programs are cost-effective and environmentally friendly compared to building new power plants. Arizona Public Service (APS) plans to rely heavily on distributed energy and demand response to achieve its clean energy goals. Customers are incentivized with free or discounted smart thermostats and can opt out of participating on certain days without penalty. Clear communication and increased payments have improved customer participation.

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