Austin Utilities has seen a large response in an incentive program it has been offering since Aug. 1.

Austin Utilities along with Owatonna Public Utilities and Rochester Public Utilities offers cash incentives for utility customers who purchase energy-efficient and water-efficient appliance and equipment.

With an energy-efficient air conditioner, for example, a customer can get $300 from Austin Utilities.

"Rebates are a way for our utility customers to encourage smart energy decisions when it comes time to buy a new appliance," said Carmel Taylor, residential manager for the utility partnership.

The rebates aren't the only benefit of energy-efficient equipment. The energy and water the products save result in lower utility bills.

An energy efficient clothes washer with a Modified Energy Factor of 1.26 saves customers 30 gallons of water per load or 15,000 gallons a year. That washer can earn a $150 rebate from Austin Utilities and will save the customer from $100 to $245 in heating bills.

Incentives are offered on room and central air conditioners, clothes washers, refrigerators and other appliances that meet Minimum Efficiency Requirements, or what is referred to as the Energy Star label.

Funding for the program, called "Conserve and Save," comes from funds required by the state omnibus energy bill, Taylor said. The fund is made up of 1.5 percent of gross electrical operating revenue and .5 percent of gross natural gas operating revenue from each utility company in the state.

The program also helps the utilities companies save money. When customers use less energy, the companies do not have to build more generation facilities, can invest less in new infrastructure and avoid purchasing high-priced power on the open market during peak demand periods, according to the utility partnership.

This helps keep energy costs low for all consumers.

The program also has gotten a boost from local stores. Arens Heating and Cooling, Greenman Heating, Refrigeration and Fireplace Design, Bissen TV and Appliances and Donkers Hometown Appliances have been advertising the Utilities rebates, Taylor said.

Arens Heating and Cooling has promoted the rebates since Aug. 1, said co-owner Penny Arens. Bryant, one of the brands the store sells, also offers rebates on its products.

Arens said customers have been very responsive to the rebates.

"They are willing to take part in the program," Arens said. "They listen to the difference between high-efficiency and low-efficiency equipment. They're inquisitive about what it's going to save them in the long run."

When high-efficiency heating and cooling equipment came out, the store was nervous customers would not want to pay a slightly higher price for them, Arens said. But when customers see how much money they can save on their utility bill, they are more interested, she said.

Dan Bissen, owner of Bissen TV and Appliance, said the cost of energy-efficient appliances depends on the type. Energy efficient washing machines, for example, cost about $500 more than other washers. However, the washers save about $100 a year in utility bills while other washers use more energy

"A lot of people are surprised when they see how much more is saved with energy-efficient appliances," Bissen said.

Other products, such as dishwashers are comparable in price to low-energy efficient dishwashers, he said.

For more information on the "Conserve and Save" program or for applications, visit Austin Utilities or call 433-8886.

Cari Quam can be reached at 434-2235 or by e-mail at :mailto:cari.quam@austindailyherald.com