Summer heat often makes air conditioning essential for many homeowners. But according to KARE, some utilities in Minnesota are offering a tradeoff: Let them make brief reductions to your cooling during high-demand periods, and they'll pay you for participating.
What's happening?
KARE reported that utilities across Minnesota are promoting voluntary demand-response programs that cut back air-conditioner use during periods of intense summer heat. Customers get financial incentives, and utilities get some relief on the power grid.
Dan Rasmussen, Xcel Energy's senior marketing manager, told KARE that the company is now giving customers two choices. One of them, Saver Switch, cycles AC units on and off for a few hours during especially hot weather.
"We're turning it off, we're turning it on, but your fan is cycling and still keeping your home cool," Rasmussen explained.
The Saver Switch program can lower bills by roughly $10 a month from June through September, Rasmussen said, for a total of about $40 over the season.
The other option, Xcel's AC Rewards program, offers a one-time $100 bill bonus and then $25 each year after the first. In this program, customers allow Xcel to remotely bump up the thermostat several degrees during times of peak demand. The benefit of this option is that users can revert the AC changes if they get too hot.
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Similar programs are available through other utilities in the state.
How can this help?
For customers, the main benefit is a chance to cut summer electricity expenses without having to forgo air conditioning.
The programs are not all structured the same way. Rasmussen told KARE that Saver Switch can leave a home a few degrees warmer during peak heat. Xcel's AC Rewards program gives customers more flexibility.
"With AC Rewards, you can override that. If you really need that cooling, you can still use your AC and turn up the thermostat," Rasmussen explained.
Utility officials said the programs also help by easing pressure on the grid and helping preserve reliable power for everyone when summer heat drives up electricity demand.
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