Due to the high costs associated with peak demand charges imposed by most electrical companies today, various means of shifting the peak HVAC load have been identified by the industry. This paper discusses the results of a study based upon a building site located in the high desert of the southwestern United States that evaluated ice storage as a mechanism of operating cost reductions. The discussion addresses both the seasonal and the annual cost and energy impacts of an ice storage system when used in place of an air-to-air heat pump system.