A viral video shared widely on X this week shows a Colorado woman attempting to lower her home’s air conditioner temperature, only to be blocked by a message on her smart thermostat stating she could not do so because the regional energy grid was stressed.
The woman, identified as Kyri Baker, an associate professor of engineering at the University of Colorado Boulder, is enrolled in Xcel Energy’s voluntary AC Rewards program. The incident, which occurred during recent extreme heat, has drawn attention to utility demand-response programs that allow temporary remote adjustments to participating customers’ thermostats in exchange for bill credits.
What Happened in the Video
In the video, Baker’s thermostat displayed a setting of 79 degrees Fahrenheit. When she tried to lower it, the device showed a message: “To conserve energy in your community due to stress on the regional energy grid, you cannot set your temperature to be lower,” along with the note “Cannot be set lower.”
Baker has said she understood the grid-stress reason but expressed frustration over the loss of control, particularly when preparing to put her daughter to bed. She noted the need for easier opt-out options, especially for households with infants, elderly residents, or people with health conditions. Local reporting confirmed the core details of her experience match the video.
The post by @WallStreetApes that amplified the video described the program as one that offers sign-on credits of roughly $50–$150 and noted similar programs operate in multiple states. It suggested the programs begin as optional and could later become mandatory. Official program materials and reporting do not indicate any shift to mandatory participation.
🚨 American went to lower the air conditioner in her home and her Smart AC gave her a warning she was not allowed to lower the temperature
“My own thermostat was 79 — it had a little warning that said, "You are not allowed to lower your thermostat set point because the energy… pic.twitter.com/M8uoVIihTi
— Wall Street Apes (@WallStreetApes) August 12, 2026
How Xcel Energy’s AC Rewards Program Works
Xcel Energy’s AC Rewards is a voluntary opt-in program for residential customers with central air conditioning and a compatible Wi-Fi smart thermostat (such as certain models from Nest, Ecobee, Honeywell, or Emerson). Participants receive a one-time $100 enrollment bill credit and $25 annually for remaining in the program.
In exchange, Xcel may make temporary adjustments to the thermostat’s cooling setpoint—typically raising it by 1 to 4 degrees Fahrenheit—for short periods during peak demand on the hottest summer days. The goal is to reduce overall electricity demand, ease strain on the grid, and help avoid outages or the need to activate more expensive peaker plants.
According to Xcel’s program description, “You’ll have the ability to opt out of control events at any time and receive optional notifications of control events, either from your thermostat, mobile device, or web app. On rare occasions, system emergencies may cause a control event that cannot be overridden.”
Similar voluntary demand-response programs using smart thermostats exist across many states, including California, Arizona, Florida, Illinois, Texas, and others, often through utilities or third-party aggregators. Participation remains optional, with customers able to unenroll.
Historical precedent exists. In 2022, Xcel locked thermostats for approximately 22,000 Colorado AC Rewards participants during an energy emergency caused by high temperatures and a power plant outage. That was described at the time as the first such non-override event in the program’s then-six-year history.
Potential Benefits of Demand-Response Programs
Utilities and energy experts note these programs help manage peak loads that occur when many homes run air conditioning simultaneously during heat waves. Reducing simultaneous demand can lower the risk of rolling blackouts or widespread outages that affect all customers, including those not enrolled. It can also reduce the need to fire up higher-emission or higher-cost backup generators and support grid reliability as more variable renewable energy sources come online.
Participants receive direct financial incentives. Aggregated adjustments across thousands of homes function as a distributed resource that utilities say benefits the broader system.
Concerns Raised About Control and Vulnerable Households
Critics of the programs, including some participants in past events, have expressed concern about temporary loss of control over home temperature settings. Baker stated there should always be an opt-out feature for sensitive situations. In prior lockout events, some customers reported unexpected indoor temperatures in the 80s during hot weather and said they were unaware an emergency could prevent overrides.
Public discussion of the recent video has focused on whether average consumers fully understand the terms when enrolling for the bill credits, and whether temporary restrictions could pose risks for infants, older adults, or those with medical conditions that make higher indoor temperatures hazardous. The programs remain voluntary, and non-participants retain full control of their thermostats.
No current evidence from Xcel or regulatory filings shows these programs shifting from voluntary to mandatory. Enrollment requires affirmative action by the customer, and unenrollment is available.
Broader Context
Demand-response programs using smart devices have expanded as electricity demand grows from heat, electric vehicles, and data centers, while grids incorporate more intermittent generation. Utilities present them as a tool for reliability and cost management. Customer feedback has centered on transparency about override limitations during declared emergencies and clear communication of the trade-offs involved in accepting the financial incentives.
Xcel has not issued a new public statement specifically addressing Baker’s recent experience beyond the general program rules already published on its website.
Provided by Dallas Express
