Get Paid to Lower Your Electric Bill

Many utility companies, like Austin Energy, offer incentives in the form of rebates for customers to adopt energy efficiency improvements. In Idaho, the utility company is taking things one step further by actually paying customers not to use electricity.

Idaho Power, the state’s primary electricity provider, offers residential and agricultural programs that reward its customers for lowering their electricity consumption during peak hours. Electricity is most expensive during peak hours when demand is high and supply is tight as power plants are pushed to their maximum capacity. Many utilities resort to constructing costly “emergency plants” that are only called upon to produce electricity during peak summer hours. Reducing the need for such plants saves utility companies from inefficient spending and from having to raise electricity rates.

For example, Idaho Power’s Peak Rewards program reduces peak electrical load during hot summer afternoons by partnering with agricultural irrigation customers to reduce demand. The greatest demand for electricity occurs at the time when farmers are pumping water to their fields, and customers are using air conditioning to cool their homes and businesses. Some farmers receive a credit of over $700 by limiting their electricity usage.

Additionally, Idaho Power can in essence press a button that causes “smart thermostats” installed on participating air-conditioning units for residential and commercial customers to cycle on and off for intervals as long as 15 minutes. The program lowers usage during peak periods by about 1 percent, and during the summer participants are paid $7 a month.

To help pay for these and other energy-saving measures, Idaho Power charges customers a 4.75 percent “energy efficiency” rider on their electric bills. However, the program has resulted in a decrease in peak power demand by as much as 5.6 percent.

For more information, visit Idaho Power.