Xcel Energy's Saver's Switch Program Reduces Energy Costs for Customers
Ten percent of Xcel Energy's (Minneapolis, Minnesota, U.S.) 3.2 million electricity customers in Minnesota, Colorado, Texas and other states have signed up to save energy and money during the summer months or when the power system's integrity is at risk.
Approximately 320,000 business and residential customers enrolled in Xcel Energy's Saver's Switch program and in other programs for large commercial and industrial (C&I) customers help reduce electricity demand when temperatures and humidity levels are high, or when electricity reliability is threatened. All together, the programs may reduce electricity demand by a total of 1336 MW, the size of three large power plants and enough to power 1.3 million homes.
In Minnesota and nearby states, about 292,000 residential and business electricity customers are enrolled in Saver's Switch and about 2730 C&I customers are participating in peak- and energy-controlled rate programs. Customers enrolled in the programs receive discounts on their electricity bills while helping Xcel Energy avoid building new power plants or purchasing high-priced electricity from other utilities during peak-use periods.
The Saver's Switch program allows Xcel Energy, by remote control, to cycle central air-conditioner compressor units on and off at 15-minute intervals. The more than 280,000 residential and 12,000 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 about 330 MW.
Saver's Switch has been available in Xcel Energy's Upper Midwest service territory since 1990. Xcel Energy introduced the program to Colorado residential customers in 1999 and businesses in 2001. Participation in Colorado is growing to 25,000 customers this year, up from 10,000 customers in 2001. And the total potential energy savings is increasing to 24 MW from 9 MW.
C&I customers in the Upper Midwest participating in Xcel Energy's peak- and energy-controlled rates 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 525 MW.
Under the C&I 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.
In Texas and New Mexico, 53 C&I customers and several hundred irrigation customers receive reduced rates for providing approximately 277 MW of power for both reliability and peak-reduction purposes. In Colorado, 71 C&I customers receive lower rates for agreeing to reduce demand by 150 MW during periods of severe system constraints.
In the Upper Midwest, an additional 30 MW can be saved through the Peak Day Partners program, under which Xcel Energy pays large retail customers for reducing their electricity use when energy market prices are exceptionally high. Registered customers volunteer to provide energy by reducing their electricity use after reaching a price agreement with Xcel Energy.
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