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Xcel pushing energy efficiency through rebate program

By Gargi Chakrabarty, Rocky Mountain News (Contact)

Published January 28, 2009 at 12:05 a.m.

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If a cold snap blows out your furnace, replacing it with an energy-efficient one will be a rewarding experience.

Xcel Energy will send you a rebate of $80 to $120, depending on the efficiency of the model.

Other appliances also are eligible for rebates. A gas boiler would get a $120 check, a tank water heater from $40 to $80 and a tankless heater $100.

Xcel even will cover a portion of your cost to blow insulation in your attic or wall for up to $300.

"Clearly we think energy efficiency is the appropriate thing to do," said Xcel spokesman Mark Stutz.

Xcel began the rebates Jan. 1. All told, it plans to spend $63 million this year and $80 million in 2010 to encourage its 1.8 million customers in Colorado to use less gas and electricity.

The programs likely will add $1.64 a month to typical residential bills and $2.83 a month to average small-business bills.

But if you live in the foothills and Intermountain Rural Electric Association is your utility, you won't get a rebate.

IREA doesn't believe in rewarding customers for energy efficiency.

Energy advocates want IREA to follow Xcel's footsteps.

They plan to bring back a bill in the state legislature that would require rural electric co-operatives such as IREA and municipal utilities to implement energy-efficiency programs. A similar bill died last year.

Energy efficiency means lower utility bills. Xcel's programs are expected to save customers $450 million over two years.

Also, lower energy use decreases the need for coal- and gas-fired power plants that emit heat-trapping carbon dioxide, a cause of global warming. Gov. Bill Ritter wants Colorado to cut emissions by 20 percent by 2020.

By 2015, Xcel expects the programs to reduce electricity demand on its system by nearly 700 megawatts. That would delay or preclude the construction of a typical power plant costing $1 billion or more.

"Let's make sure we are moving in the same direction as Xcel is moving, as Gov. Ritter is moving, and achieve the state climate goals," said Pam Kiely, legislative program director of Environment Colorado, which is pushing the bill.

"The best thing to do would be to set goals. Say you need to save this x-percent energy by this x-date and you have the flexibility to do programs to reach the target."

IREA general manager Stanley Lewandowski will oppose the bill.

He says it would put an unnecessary burden on customers, since the rebates would come out of ratepayer pockets.

IREA serves 137 customers in all or parts of 10 counties to the east, west and south of the Denver area and west of Colorado Springs.

"The point is, if some customers want to install an energy-efficient appliance, they are going to save energy and they ought to make the expenditure," Lewandowski said.

"If other customers are not going to get the benefit of lower bills, why should they pay for the rebates? There's no free lunch."

Lewandowski has long been a critic of renewable energy, energy efficiency and global warming.

A RETURN ON YOUR SAVINGS

Beginning Jan. 1, Xcel Energy is giving rebates if you install energy-efficient appliances at homes or small businesses. Some examples of appliances and rebates are:

COOLING

Xcel will continue its evaporative cooling program, paying rebates of $200 or $500 for the installation of qualifying units.

It also will continue its Saver's Switch program in which customers allow Xcel to cycle air-conditioners during peak demand in summer. Bill credits have increased to $40 for all residential customers in Colorado.

HEATING

* Natural gas furnace: $80 to $120

* Natural gas boiler: $120

* Natural gas tank water heater: $40 to $80

* Natural gas tankless water heater: $100

* Insulation: Equal to 20 percent of the total cost of the insulation and installation up to a maximum rebate of $300.

Find a link to download more information at RockyMountainNews.com/extras.

Comments

  • January 28, 2009

    6:12 a.m.

    Suggest removal

    SheikYurBooty writes:

    Stan Lewandowski is a dinosaur. There's something wrong with that guy. If/when a carbon tax or cap & trade happens, his customers are going to get shafted worse than anyone else due to his refusal to get efficient and due to his love of mercury-spewing coal.

  • January 28, 2009

    8:20 a.m.

    Suggest removal

    pak writes:

    Lewandowski is right. Man caused global warming is a hoax. There has been no warming since 1998. There is no science behind the hoax, just flawed computer models that can't even accurately model the 20th century where we have real data. Man caused CO2 is less than 0.04% of world's total GHG's. Why should I subsidize someone else's expenditure on retrofits or expensive installation of expensive, inefficient and intermittent renewables. Renewables work only 25% of the time and have to be backed up by dispatchable, expensive gas plants. The answer is clean, reliable, cheap base load coal plants. China and India get it, they are installing a new coal fired plant every two weeks. Efforts here in the USA will do absolutely nothing to world GHG's and will ruin our economy. Go Stan!

  • January 28, 2009

    9:22 a.m.

    Suggest removal

    YEAHRIGHT writes:

    First of all, IREA is electric only!! Therefore they won't nor can't give a rebate on gas equipment. IF Xcel really cared about their customer's they would offer a time of date or time of use rate so that we could really SAVE!!! Xcel is investor owned and doesn't care about our pockets, and they hype about being green but their customers are forced to foot the bill. IREA isn't a saint either, but at least they are a coop. If their member-owners are unhappy with them they should run for a seat on their board. Besides, IREA buys their wholesale electricity from Xcel...

  • January 28, 2009

    11:57 a.m.

    Suggest removal

    TonyB writes:

    Do the math. $63 million dollars is 800,000 customers getting a, $80 rebate. That's almost 50% of Xcel's customer base. Is that remotely logical? On the other hand, if 10% of Xcel's customers are businesses Xcel will obtain $38 million dollars of revenue from that $1.64 and $2.83 added to everyone's monthly bill for this goofy program. Lewandowski is the only sensible person in this article on our latest Ponzi scheme. Madoff would indeed be proud of Xcel and the PUC.

  • February 2, 2009

    5 p.m.

    Suggest removal

    preineil writes:

    pak-
    If you doubt the science, talk to the scientists instead of doing what the deniers like Rush, Inhoffe, and Mike Rosen do - stand on the outside and take pot shots. This isn't about global warming or renewables, it's about efficiency. Did your dad ever tell you to turn off your lights? If he did, he understood efficiency.

    Anyone that wants to burn coal rather than promote cheap, clean, safe, smart efficiency is more interested in selling electrons than conducting their business in a responsible manner with the co-op members interest at heart. Efficiency is good business practice. Fiduciary responsibility is the issue here.

    TonyB-
    There must be ways to create programs that work. Why don't you talk to the legislators with your ideas. You can't change the fact that the cheapest watt is the watt you don't use and it is much cheaper than burning coal. If the utilities aren't including efficiency and demand side management in their resource planning they are missing a unbeatable opportunity.

    IREA policy is to not subsidize one customer with another which is a false argument. IREA is opposed to subsidies but they have lived off federal subsidies forever. They don't like social programs but they owe their existence to one. Maybe they should give a little back.

  • February 7, 2009

    7:50 a.m.

    Suggest removal

    Stickee writes:

    Coal fired plant, Stan's personal love, have been able to dump its effluent into streams, ground and air from the beginning of time.

    If coal plants were made to pay for its wastes, from its mining to is burning, its resulting energy cost would be more expensive than alternatives... period, game over, subject mute, let's move on!

    Time to end coal fired power plant 'free lunch'. Then Mr. Lewandowski will have to eat his words... or better yet breathe our air.

  • February 13, 2009

    11:14 a.m.

    Suggest removal

    SlouchingTowardBoulder writes:

    Wow. Gargi was that actually a "news" story or an opinion piece? To write "IREA doesn't believe in rewarding customers for energy efficiency." is really over the top and flunks the test of journalistic impartiality.

    Gargi, if and when the News folds you certainly can get a job writing pressers for Western Resources Advocate or some other aligned "green" group.