Arizona Public Service Builds Virtual Power Plant to Maintain Power During Record Heat Wave

In this case study, Arizona Public Service (APS) showcases how its Virtual Power Plant (VPP) programs — anchored by the Cool Rewards thermostat initiative — help maintain grid reliability during extreme summer heat. By aggregating distributed energy resources and incentivizing small thermostat adjustments, APS relieved up to 160 MW of demand in 2024, equivalent to powering 25,000 homes. The utility piloted its first location-based demand response event during a major outage, reducing local demand to aid restoration crews. Additional programs like Energy Saving Days and SmartCharge for EV charging expand customer engagement and grid flexibility. With high customer satisfaction and multiple industry awards, APS demonstrates the potential of VPPs to enhance resilience while empowering customers.


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demand response grid reliability resilience smart thermostat