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We were part of a program like that back when we lived within Austin utilities. The deal for us was you got a free programmable thermostat to replace your crappy old one. Aside from the free hardware and installation, you could then of course program it so it wasn't cooling when people weren't home during business hours, thus saving yourself the money that way rather than getting a specific discount each month.
They were very detailed about when and how they could cut off the A/C--it would never go off completely, the temp would just be set to a max of 82 degrees, for no more than 30 minutes at a time. In the three years we were on it, I only happened to see the under-remote-control display kicked on once, and never actually noticed a temperature difference at any point.
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