'Cash for Refrigerators' could benefit Amana Whirlpool plant

A $300 million federal stimulus program for the appliance industry late this fall could help Whirlpool Corp.'s Middle Amana plant.

A plan announced by the U.S. Department of Energy this summer aims to stimulate the appliance industry by offering rebates for purchases of Energy Star-rated home appliances and furnaces. Many details will be left up to states.

The program is expected to authorize rebates of $50 to $200 for purchases of high-efficiency household appliances. The energy department expects most of the money to be awarded by the end of November.

The media has already dubbed the program “Cash for Refrigerators.”

One thing the Whirlpool plant in Middle Amana has going for it in such a program is that 90 percent to 95 percent of its refrigerators are Energy Star rated. New energy-efficient refrigerators often use one-half to one-third as much power as refrigerators built before 1990, according to Diane Munns, MidAmerican Energy vice president of regulatory affairs and energy efficiency.

“We believe the appliance rebate program is good for consumers, to help them realize cost savings in the purchase and operating costs of their appliances, while making a positive contribution to the environment by reducing their energy and water consumption,” Whirlpool spokeswoman Jill Saletta said.

Whirlpool Corp., the world's largest appliance maker, has seen a 20 percent drop in sales in the first half of its fiscal year. And the Middle Amana plant, which makes refrigerators, has laid off hundreds of employees.

Saletta declined to forecast the impact of the program on Whirlpool. She said the company's business and the appliance industry “still have a long way to go in terms of recovery.”

Unlike the $3 billion “Cash for Clunkers” program that ended Monday, the appliance program does not require consumers to turn in items being replaced. But many utilities, including MidAmerican Energy, offer appliance recycling programs that could help keep additional money in consumers' pockets.

MidAmerican Energy's appliance recycling program provides rebates of $50 for qualified contractors to dispose of old refrigerators and freezers and $25 for contractors to dispose of window air conditioners. In addition to the removal rebates, MidAmerican offers rebates on the purchase of new energy-efficient appliances.