Xcel Energy Demand Response Program

Program Overview

The Xcel Energy Demand Management program is designed to reduce peak demand, increase grid reliability, and encourage program participation from commercial and industrial customers across Minnesota. Demand response programs give utilities a flexible tool they can use to navigate an increasingly versatile power market while also providing a financial benefit to customers.

Historically, demand response programs primarily serve large enterprises, leaving small-to-medium businesses underrepresented and underserved.

Xcel Energy saw an opportunity for small-to-medium non-residential participation and designed two demand response offerings to fill that gap. These offerings, known as Peak Partner Rewards and Peak Flex Credit, make demand response more accessible, actionable, and worthwhile for small and medium business customers—without requiring them to navigate complex systems or make large capital investments.

Why It Works: A Dual Approach

What sets this program apart is the combination of Xcel Energy’s innovative program design and Michaels Energy’s hands-on customer engagement approach.

We recognized that traditional communications like email helped increase program awareness, but they rarely translated to action. In-person visits where Michaels Energy’s outreach team could clearly communicate the program and its value to customers started to move the needle on enrollments. When talking with customers face-to-face, we found that our team could:

• Build trust through in-person conversations
• Conduct walkthrough assessments of buildings and equipment
• Deliver realistic, customized curtailment strategies based on actual operations
• Provide actionable insights that no online tool could match

How It Works

Customers who participate receive monthly bill credits in exchange for committing to reduce energy use during demand response events. Participation is built around flexibility and feasibility, with a focus on:

• HVAC, lighting, chillers, and industrial equipment as primary load types
• Smart metering for accurate performance tracking and event measurement
• A simple enrollment process supported by expert guidance

The program also features a tiered structure, offering multiple participation levels that match different comfort zones and operational realities—making it easier for more customers to say yes.

Results & Impact

Even in its early phases, the program has demonstrated that the right mix of design and delivery can unlock major value from overlooked market segments. Key results after the first year of program deployment included:

• 760 total customers engaged
• 176 engineering site visits completed
• 114 proposals delivered
• 62 customer enrollments
• 7.4 MW total load shed capacity committed

Beyond the numbers, the qualitative feedback is just as compelling: customers appreciated the face-to-face attention, the clarity of recommendations, and the fact that someone took the time to understand the needs of their business and offer meaningful solutions.

Closing the Participation Gap

Too often, smaller businesses are told they can’t participate—or worse, left out of the conversation entirely. With the Xcel Energy Demand Management Program, that narrative is changing.

By combining smart program design with high-touch customer engagement tactics and expert engineering support, Michaels Energy is implementing Xcel Energy’s vision: to give every business a chance to contribute to grid reliability, manage their energy use, and get rewarded for it.