By Erin Mathe and CEN Staff

DENVER - Xcel Energy has unveiled a new program to help homeowners reduce their energy use and lower their energy bills. The Central Air Conditioner Rebate program offers customers one more way to operate as efficiently as possible and save money for years to come.

Qualifying customers who purchase and install a new, eligible central air conditioner or air source heat pump from a registered contractor can receive up to $500 cash back. A list of more than 70 trained and pre-certified contractors is available on the Xcel Energy Web site.

The program is designed to generate maximum energy savings for residential customers by focusing on proper installation practices. Contractors help the homeowner choose the right size unit, install the equipment and check ductwork throughout the home.

“Improper installation can reduce system efficiency by up to 30 percent, meaning higher utility bills and shortened equipment life,” says Jean Hammer, Xcel Energy program manager. “Contractors participating in our program go through training to ensure the system is installed correctly to make the home more energy efficient and more comfortable. They also handle the rebate paperwork so the entire process is easy for the homeowner.”

The installation property must be located in Colorado and receive residential electricity service from Xcel Energy to qualify for the rebate. Rebates are given only to customers whose central air conditioner was installed by a contractor who is a registered participant in Xcel Energy’s program.

This program is the latest of several new residential energy efficiency programs in Colorado. Xcel says that during the next two years, these programs will help it reduce electricity demand on its system by nearly 125 megawatts, which is enough to power 94,000 Colorado homes, and reduce natural gas use by more than 7.2 million therms which would service more than 9,000 typical residential homes in Colorado.

Other residential programs launched this year under the company’s Demand-Side Management (DSM) efforts include offerings for energy efficient heating systems, energy efficient water heaters, and home insulation. The company also is continuing programs on rebates for qualifying evaporative cooling systems and Saver’s Switch.

Xcel Energy will spend $63 million in 2009 and $80 million in 2010 as it seeks to reduce customer demand for electricity and natural gas in Colorado. The programs are expected to save consumers approximately $450 million in 2009-2010. Xcel Energy will file an updated Colorado DSM plan in 2010.

For more information on Xcel Energy’s new and existing residential DSM programs, go to www.xcelenergy.com. Select “Colorado” for the state site you wish to visit, then select “Programs and Resources” on the drop down menu under “Residential.” On the left column, click on the specific program you wish to explore.