Input on "Peak Power Savers" program from electric company?

[gabe]

I'm wondering if there are any HVAC guys out there who can shed some light on this for me.

Basically, my electric company wants to give me a $25 check AND save me money this summer by installing a device that will make the compressor on my air conditioner run at 50% during certain peak times. I'm wondering if there are any cons, asides from my house being a bit warmer while I'm at work.

Here's the full writeup:

Receive $25 and reduced electricity
rates for the entire summer by
joining Peak Power Savers!


At Consumers Energy we are always looking for new and better ways to serve our customers. That’s why we are asking West Michigan customers to take part in an important new program, Peak Power Savers. This program aims to reduce electricity costs by reducing the overall demand on the electric grid during peak periods.

What is peak demand and why is it important?

Periods of peak demand typically occur during the summer when people use more electricity than usual largely due to air conditioning. It is during these periods that electricity costs the most to generate and deliver. If we are able to reduce air conditioner usage during peak demand periods, we can reduce overall power costs.

Here’s how Peak Power Savers works.

A technician will install a small device near your outdoor central air conditioner (you don’t even need to be home). During a limited number of peak demand periods in the summer, we will activate the device to adjust your air conditioner’s compressor to run at approximately 50 percent capacity. During these ”cycling events,” your fan will circulate air in your home. The temperature in your home likely will increase by 1 to 3 degrees temporarily and then return to normal. Cycling events can occur from June through September, only on non-holiday weekdays, between the hours of 2 p.m. and 6 p.m.

Receive $25 and reduced electricity rates for the entire summer.

Join Peak Power Savers today and we will mail you a check for $25. Plus you will enjoy reduced electricity rates from May through September. Your participation in all elements of this program is completely voluntary. You may decline to participate in a particular cycling event, or de-enroll at any time if you are not completely satisfied. With Peak Power Savers you are in control.

I'm also mildly curious as to how this thing works. I can't imagine them having the infrastructure to communicate with the device. Does it simply activate when the outdoor temperature reaches a certain point?

Any insight would be greatly appreciated.

[Ex-Cyber]

I can't imagine them having the infrastructure to communicate with the device.

They probably have some form of low/medium-bandwidth powerline networking. This also allows things like automatic meter reading and thus on/off-peak rates (since they can e.g. poll the meter once an hour instead of sending someone around to read it).

[JusteZero]

Aside from big brother telling you what temperature your house is and monitoring your electricity usage, its a pretty good deal right. You save a couple bucks, besides unless martial law breaks out, why would such monitoring matter in the grand scheme of things? Harmless.

Or is it?

[Ed Oscuro]

Heh, Google finds exactly two references to this phrase.

http://peakpowersavers.com/

Upon reading this, my first thoughts were wrong. I don't know how they will interface with the AC, but apparently there's different command and control lines between the temperature control and the fan.

About how they communicate with the device: They could have some kind of normal internet or phone line receiver, or possibly they could pulse electricity or even send data through the electricity (remember Internet through AC?)

Interestingly they say you can decline to participate in any particular cycling event. I wonder if there's any user controls on this thing, or a website you can log into, etc.