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Xcel Energy customers help reduce peak electricity demand

Nearly 298,000 enrollees make 900 megawatts of energy savings possible

MINNEAPOLIS - Nearly 298,000 Xcel Energy customers in the Upper Midwest have signed up to save energy and money on the hottest, stickiest days of the summer.

Customers enrolled in Xcel Energy’s Saver’s Switch and in Electric Reduction Savings programs help reduce electricity demand when temperatures and humidity levels are high. All together, the programs could reduce electricity demand by more than 900 megawatts, more than the combined capacity of the Allen S. King plant in Oak Park Heights (529 megawatts) and the Riverside plant in Minneapolis (374 megawatts).

In Minnesota and nearby states – where Xcel Energy provides electricity to about 1.5 million households and businesses – approximately 295,000 residential and commercial electricity customers are enrolled in Saver’s Switch and about 2,680 commercial and industrial customers are participating in Electric Reduction Savings programs.

Customers enrolled in the programs receive discounts on their electricity bills while helping Xcel Energy delay building new power plants or avoid purchasing high-priced electricity from other utilities during peak-use periods.

“Program participants deserve credit for helping keep rates lower for everyone and helping preserve the environment,” said Deb Sundin, director of business product marketing and Conservation Improvement Program/demand-side management for Xcel Energy. “The programs also help us avoid energy shortages during peak-use periods, and during periods of hot, humid weather, they reduce stress on distribution equipment, which can cause power outages.”

The Saver’s Switch program allows Xcel Energy by remote control to cycle central air-conditioner compressor units on and off at brief intervals. The approximately 280,000 residential and 15,000 business customers enrolled in the program in the Upper Midwest receive a discount on the electric energy charges on their electricity bills from June through September. Their participation will allow Xcel Energy to reduce electricity demand by approximately 365 megawatts, if needed.

Saver’s Switch has been available in Xcel Energy’s Upper Midwest service territory since 1990.

Commercial and industrial customers participating in Xcel Energy’s Electric Reduction Savings programs receive year-round discounts on their electricity bills. Their participation can help Xcel Energy reduce electricity demand in Minnesota and neighboring states this summer by about 530 megawatts.

Under the commercial/industrial programs, businesses, schools, government agencies and other large electricity users commit to reduce electricity use to a contracted level of their own choosing during peak-use periods. Program participants reduce their electricity use by shutting off lights, air conditioning or manufacturing processes. Some participants use backup generators. Under their agreements with Xcel Energy, participants who don’t reduce electricity use at Xcel Energy’s request pay a penalty.

“Generally, activation of the Saver’s Switch and Electric Reduction Savings programs occurs on very hot, humid summer days -- especially consecutive days,” Sundin said. “We expect to activate the programs when the temperature is more than 90 degrees. The programs also could be activated in emergencies when the integrity of the electricity system is in danger.”

An additional 50 megawatts could be saved this summer through a program for Xcel Energy’s larger customers. The Peak Day Partners program allows Xcel Energy to pay large retail customers for reducing their electricity use or for using their own generators when energy market prices are exceptionally high. Registered customers may volunteer to provide energy by reducing their electricity use after reaching a price agreement with Xcel Energy.

Xcel Energy’s Saver’s Switch Program At-A-Glance

• In Xcel Energy’s service territory in the Upper Midwest, approximately 280,000 residential and 15,000 business customers are enrolled, for a potential electricity demand reduction of approximately 365 megawatts.
• Saver’s Switch allows Xcel Energy by remote control to cycle central air-conditioner compressor units on and off at brief intervals.
• Generally, activation occurs on hot, humid summer days -- especially consecutive days.
• Cycling generally occurs between late morning and early evening.
• The program is activated about 10 to 15 days in a typical summer, usually not on weekends or holidays. However, in extreme heat, Saver’s Switch may be used for longer time periods and on weekends and holidays.
• Only customers with central air conditioning are eligible. Those customers also may enroll their electric water heaters.
• Residential customers in Minnesota, North Dakota and South Dakota who enroll their central air conditioners receive 15 percent discounts on their electric energy charges from June through September. In Wisconsin, participants receive $6 off their bills in each of the same four months. Customers who also enroll their electric water heaters receive a small additional discount on their electricity bill every month of the year. Business customers receive a discount based on the amount of air conditioning tonnage they enroll in Saver’s Switch.
• To enroll, residential customers should call Xcel Energy’s 24-hour customer service line at 1-800-895-4999. Business customers can enroll by calling Xcel Energy’s business line at 1-800-481-4700.
• For daily updates on Saver’s Switch control period times, call Xcel Energy’s Saver’s Switch hotline at 1-800-835-6776.