A method for effecting cooperation between a modulating air conditioning system and a two-stage thermostat for satisfying an air conditioning load demand in a conditioned space includes: (a) operating the thermostat in a plurality of succeeding operating cycles to issue a first call signal or a second call signal indicating a first or second stage operation by the air conditioning system; the first and second stage operation being effected according to a first operating regimen to satisfy the air conditioning load demand; (b) operating the air conditioning system in response to the first and second call signals; the air conditioning system operating at a first power level when receiving the first call signal and operating at a predetermined second power level when receiving the second call signal; the first power level being established by the air conditioning system according a second operating regimen.