1 2012 Workshop 2012 Residential Standard Offer Program October 19, 2011.

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2012 Workshop2012 Residential Standard Offer

ProgramOctober 19, 2011

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2012 Residential SOP Summary Incentives Paid for kW and kWh savings Internet Application and Reporting Large Projects

Project size equal or greater than $10,000Reserves funds for program year

Small ProjectsNo minimum project sizeReserves funds for 30 daysFirst-time participants start here

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2012 KEY CHANGES

Revised deemed savings valuesDuct efficiency

Work schedules required for duct efficiency and infiltration measures

Installation certificate required for all ceiling insulation installations

First-time applicants must apply in Small Projects

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2012 KEY CHANGES

Must have successfully participated in Small Projects to apply in Large Projects

Invoices may be submitted after the 14th of each month

Residential dwellings completed after January 1, 2010 do not qualify for the program

Re-defined Underserved Counties @ TNC

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Responsibilities of the Program Administrator, Project Sponsor and Customer

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Responsibilities: Program Administrator Administer the program according to

PUCT rules and guidelines Review and approve or reject applications

Process Invoice Reports based on inspection results

Manage programs and incentive dollars

Adjust programs as needed to meet goals

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Responsibilities: Project Sponsor(PS)Identify customers and measures to install Verify customer eligibility - Obtain ESI ID Explain to customer:

Role of PS, AEP and customerProject sponsor & customer negotiate terms HCA – Customer protection, complaint processAEP does not provide endorsementsAEP does not pay for measures

Submit work schedule, if required Install and report measures

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Responsibilities: Customer

Must be a distribution customer of AEPESI ID begins with:

TCC - 100327894…. TNC - 102040497….

May be a customer of any Retail Electric ProviderCustomers of Municipals and Co-ops are not eligible

Project sponsor & customer negotiate terms Signs and dates HCA to authorize work, and

again when work complete verifying measures installed and agreeing to possible inspection

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Eligible Customers and Measures

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Eligible Customer Sites

Residential Only Single-family

Dwellings consisting of two or less units (i.e., a duplex or less)

Multi-family Individually-metered are residential (each

unit) Common areas and master-metered are

considered commercial; not eligible

Residential dwellings completed after January 1, 2010 do not qualify for the program

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Eligible Measure Changes

InsulationInstallation certificate must be

permanently affixed near attic opening Duct efficiency

Additional data entry choices

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Duct Efficiency Tool:New Data Entry Choices

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Duct Efficiency Tool WEATHER LOCATION

ZONE 1 – AMARILLO ZONE 2 – DALLAS ZONE 3 – HOUSTON ZONE 4 – CORPUS CHRISTI

Determined by county; automatically populated when adding site to database

BUILDING TYPE SF – ALL OR PART OF SINGLE-STORY HOME SF – ALL OF A MULTI-STORY HOME SF – UPPER FLOOR(S) OF MULTI-STORY HOME SF – LOWER FLOOR(S) OF MULTI-STORY HOME MF – TOP FLOOR DWELLING MF – LOWER FLOOR DWELLING MF – SINGLE-STORY DWELLING - new MOBILE HOME

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Duct Efficiency Tool (cont.) FOUNDATION TYPE

SLAB CRAWLSPACE/BASEMENT CONDITIONED SPACE

CONDITIONED FLOOR AREA (SQ. FT.) ______ AIR HANDLER LOCATION

ATTIC/GARAGE INTERIOR CLOSET/FURRDOWN CRAWLSPACE/BASEMENT SEMI-CONDITIONED SPACE – new (AH in closet open to unconditioned space)

NUMBER OF REGISTERS _______ SYSTEM COOLING CAPACITY (TONS)

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Duct Efficiency Tool (cont.) LEAKAGE CFM25 PRE-MEASURE _______ LEAKAGE CFM25 POST-MEASURE _______ LEAKAGE TESTING METHOD

TOTAL LEAKAGE

LEAKAGE TO OUTSIDE

DUCT TYPE SHEET METAL DUCTS

FLEX DUCTS OR FIBERBOARD

TYPE OF HEATING GAS

ELECTRIC RESISTANCE

HEAT PUMP

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Small vs. Large Projects

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Small vs. Large ProjectsSmall Projects

Smaller project size No security deposit Funds reserved 30

days Max. PS Incentive:

Per request - $5,000 Per Mth TCC - $25,000 Per Yr TCC - $150,000 Per Mth TNC - $5,000 Per Yr TNC - $20,000

Large Projects Minimum project size

$10,000 5% security deposit Funds reserved to

November 30, 2012 Max. PS Incentive:

TCC $150,000 TNC $ 40,000

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Small vs. Large (cont.)

Small Projects No milestone M&V Options

Deemed Savings

Eligible CustomersSingle-Family

New participants begin here

Large Projects Milestone schedule M&V Options

Deemed SavingsMeasured Savings

Eligible CustomersSingle-FamilyMulti-Family

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Large Projects: Security Deposit

5% of approved amount Cashier’s check, Certified check,

money order, or guaranteed check Refunded when 90% of contract

achieved from inspection adjusted approved invoices

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Large Projects: Milestones

40% of contract met by May 31, 2012

75% of contract met by August 31, 2012

Failure to meet any milestone may result in contract reduction or termination

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Incentive Rates

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Incentive Payments kW kWh

Standard Incentive Rate $242 $0.08

Incentive Rates to encourage project sponsors: Installing certain historically underserved measures Installing measures in certain counties historically

underserved kW kWh

Underserved Measures $269 $0.09Underserved Counties $296 $0.10

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Underserved Measures

TCC – HVAC Measures

TNC – HVAC and Insulation Measures

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Underserved CountiesIncentives paid at underserved counties rate

until budget for underserved counties depleted, then paid at Standard Rate or Underserved Measures Rate

Underserved budget included as part of the total program budget:

Large Small

TCC $ 650,000 $ 650,000TNC $ 72,000 $ 38,000

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Underserved Counties - TCCATASCOSA EDWARDS KINNEY UVALDE

BEE FRIO LA SALLEVAL

VERDE

BROOKS GOLIAD LIVE OAK WHARTON

CALDWELL GONZALES MAVERICK WILSON

COLORADOGUADALUP

EMCMULLEN ZAPATA

DE WITT JACKSON MEDINA ZAVALA

DIMMIT JIM WELLS REAL

DUVAL KENEDY REFUGIO

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Underserved Counties - TNC

BAYLOR CROCKETT

MENARD STEPHENS

BREWSTER

EDWARDS PECOS STERLING

BROWN GILLESPIE PRESIDIO SUTTON

COKE IRION REAGAN UPTON

COLEMAN JEFF DAVIS

REEVES

CONCHO KIMBLE RUNNELS

CRANE MASON SCHLEICHER

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Incentive Payment Example

Install HVAC measures resulting in savings of:

25 kW 55,000 kWh

Incentive Payment if site is in regular county (different if in underserved county):

$269/kW $0.09/kWh

Total Incentive $ 11,675before any limits

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Incentive Payment Limits

Load Factor Caps:

For all combined kW and kWh incentive payments, incentive is limited to:

$627 per kW at TCC AND TNC

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How Do I Participate as a Project Sponsor?

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Participation Review Program Manual and SOP Agreement Determine Project Size Determine if Large or Small Projects

1st-time participants apply in Small Projects Register on program website Complete and review on-line application

All applications must be complete and ready to submit one day prior to the program submit date.

Submit application via internet Submit testing procedures, if applicable

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Participation (cont.) Applications will be reviewed upon receipt Contracts will be awarded based on project

sponsor qualifications, performance history, etc., to ensure program goals will be achieved with quality installations and timely reporting

Once Application approved, enter into a contract with AEP to install eligible measures

Refer to Program Manual and Program Website for additional information

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Create Application

Complete Project Sponsor Details

Sponsor Profile

Qualification Documents

Insurance Information

Subcontractor Information

Project Description

All fields must be completed on each form

All forms not listed here

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Application Schedule

1st Day to RegisterTCC and TNC – October 20, 2011

Begin applications

Submit applications: Large ProjectsTNC - November 1, 2011 @ 10:00 am CDT

TCC – November 2, 2011 @ 10:00 am CDT

Submit applications: Small ProjectsTCC/TNC – December 1, 2011 @ 10:00am

CST

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Implementation Schedule

Large Projects Implementation pages open January 3, 2012

Small Projects:Reservations open January 17, 2012

Must have Approved Status to make reservation

Open reservation required before begin installations

ALLMust have 2012 HCA’s prior to implementation

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Marketing

AEP will not provide marketing assistance or endorsements

Use of AEP name not allowedException: pre-approved Informational Brochure

Informational BrochureAvailable for download on “Downloads/Tools” on

program website

Any other materials must be pre-approved by program administrator (telemarketing, radio, email, newspaper, flyers, etc.)

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Identify Project Opportunities

PS in Small and Large Projects must:

Verify customer eligibility

Obtain Original Customer signature and date on Host Customer Agreement & Acknowledgement form

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Large Projects Only

Obtain pre-approvals for Multi-Family Projects Site

Measures

Work Schedule

Duct Description

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Install Measures

• Small Projects – Reserve funds via internet • Large Projects – Funds previously reserved

by contract• Submit work schedule for duct efficiency

and infiltration measures• Install measures• Original Customer signature and date

on Host Customer Agreement & Acknowledgement form to verify completion

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Reporting and Invoicing

Add Installations within 45 days of completion Monthly reporting via internet

Submit Invoice Report by the last day of the month, but no earlier than the 15th.

Inaccurate reporting results in failures

AEP will process inspection-adjusted invoice within 45 days in normal circumstances

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Installation Inspections

Random sample of measure installations Verify that number of installed measures

equals number of reported measures Verify measure is installed and capable of

performing its intended function with a 10 year life.

Verify that measures qualify and that installation standards were followed

Verify measures were reported in a timely manner

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Photo Examples of Failed Measures Duct Efficiency, Infiltration, and Insulation

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Duct Efficiency

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Duct Efficiency (cont.)

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Infiltration

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Infiltration (cont.)

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Infiltration (cont.)

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Insulation

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Insulation (cont.)

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2011 Reporting Issues Accurate reporting-measures reported not

found HCA’s and Installations done prior to

application approval or open reservation Home square footage errors (tax records

not always reliable) ALL signatures and dates on HCA’s –

customer, project sponsor, subcontractor (if applicable)

Duplicate measures on invoices (review before submitting)

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2011 Reporting Issues (cont.) Ceiling Insulation – inaccurately

reporting existing R-Value Listing a service area on application

and not servicing that area Silicone sticking A/C supply registers

to ceiling sheetrock and supply boot Inspection scheduling issues Homeowners expecting a “Bill of Sale”

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Program WebsiteRefer to www.aepressop.com for:

News & UpdatesLatest program announcements

FAQ’s Program Manual Program Downloads/Tools Program contact information

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AEP Contact Information

TCC – Jim FowlerPhone: 361.881.5790E-mail: [email protected]

TNC – Rhonda FahrlenderPhone: 325.674.7513E-mail: [email protected]

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Comments and Questions……………….