Woes for rebate operator

Next up for Helgeson Enterprises: Arizona's appliance-rebate program on Monday.

One-by-one, individual states have been rolling out rebate programs for new energy- or water-saving appliances, paid for by federal stimulus money. Helgeson won the contract to run Arizona's Web site, receive calls and otherwise manage the program.

But Helgeson is coming under increasing criticism for the problems that have cropped up in appliance-rebate programs it handled in Minnesota, Iowa and Texas.

In all three states, the Web sites and phone lines managed by Helgeson crashed or were so crowded that customers couldn't get through. In Minnesota, where Helgeson is based, the Web site and phone lines crashed for the first two hours of the program's existence March 1.

"A couple of minutes after the launch, the Web site went down," said spokeswoman Nicole Garrison-Sprenger of the state's Commerce Department.

In Iowa, the rebate services wobbled under the weight of millions of attempts to get in on the deal.

"The system did go down," said spokesman Don Tormey of the state's Office of Energy Independence. "They adjusted their ability to take phone calls and Web reservations."

And in Texas on Wednesday, public response overwhelmed the Web site and phone lines, forcing the Texas Comptroller's Office to shut down the Web site for two hours. In response, the comptroller sent Helgeson a letter demanding to know the number of calls blocked by busy signals, the periods of time the Web site was down or inaccessible, and other details.

Depending on those responses, the office may demand to pay Helgeson less than its $876,000 contract.

Helgeson blamed the Web problems in Texas and Minnesota in part on efforts to sabotage the service, called "denial of service" attacks.

In all three states, all the rebates were spoken for, and wait lists filled, on the first day, meaning that the ability to access the system right away is key.

A company official did not return calls Friday seeking comment on its plans for Arizona.

However, Arizona Department of Commerce spokesman David Drennon said Helgeson has been addressing problems as they arise.

"When they see problems, they adjust for the next state they're working with," he said.

If Arizona customers see that the rebate program's Web site is down or phone lines are busy, it will probably be because of an overload of responses, and they'll need to try back, Drennon said.

Customers can request rebates by calling 1-877-307-5336 or by getting on the www.Arizona Rebates .com Web site.

What you'll need to do to get an appliance rebate

If you've been waiting to buy that new dishwasher, water heater or clothes washer, Monday is the first day you can register for Arizona's appliance rebates. Here's what you need to know to get your rebate:

Qualifying products

Energy Star-rated clothes washers, dishwashers and water heaters qualify for the rebate. A complete list of Energy Star efficiency requirements, for each product, can be found at www.azcommerce.com/energy/ rebate

How it works

Beginning at 6 a.m. Monday, you can call 1-877-307-5336 or go online to www.arizonarebates.com to reserve your rebate funds.

Once you have reserved your rebate, you can make your qualifying purchase. If you do not get approved for a rebate, you will not get any money back for your purchase.

After you send in the required documents, as specified when you reserve your rebate, you will be mailed a prepaid Visa debit card.

Arizona has been allocated more than $6.2 million for the program as part of the American Recovery and Reinvestment Act, but once that money has been reserved, the Arizona Department of Commerce Energy Office will place people on a waiting list from which they will be notified if there are unclaimed funds.

Where to buy

You can buy a qualifying Energy Star appliance from any Arizona retailer. Online purchases and purchases made before Monday do not qualify.

Who is eligible?

The rebate program is open to anyone with a valid Arizona residential address who replaces an old appliance with a new Energy Star rated appliance. PO boxes are not acceptable without a residential address, and the program does not apply to commercial properties.

Must you turn in your old appliance?

Unlike the recent Cash for Clunkers auto program, you are not required to turn in your old appliance in order to receive the rebate. Participants are only asked to self-certify that they have replaced an old appliance with an Energy Star-rated one.

Rebate values vary

The value of your rebate will depend on the Energy Star efficiency rating of your qualifying purchase.

Clothes washers will be eligible for rebates of $125 or $200, dishwashers will be eligible for either $75 or $125, and water heaters will be eligible to receive $200, $300 or $425.

A complete listing of requirements for each rebate amount can be found at www.azcommerce.com/ Energy/Rebate

Receive multiple rebates

You are not limited to only one rebate - you can register for a single rebate in each of the three item categories.

- Ian Friedman, Arizona Daily Star