A electric welding machine having an auxiliary power output, and a method for controlling the auxiliary power output on a welding machine is provided. In one embodiment, the system includes a main transformer having a first secondary winding in circuit communication with a welder power output and a second secondary winding in circuit communication with an auxiliary power supply having an auxiliary power output. The auxiliary power supply includes an input for monitoring the welder power output to determine if the welder power output is on; circuitry for determining whether a surge or spike in demand is present at the auxiliary power output; and circuitry for limiting the available power to the auxiliary power output if certain conditions are satisfied. One method includes monitoring the demand on an auxiliary power output, monitoring a welding power output, determining whether there is a spike in the demand on the auxiliary power output that is above a first limit, and reducing the available power to the auxiliary power output if the spike is above the first limit and the welding power output is energized.