1 2013 Hard-to-Reach Standard Offer Program October 9, 2012.

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2013 Hard-to-ReachStandard Offer Program

October 9, 2012

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Where in Texas?AEP is offering the Hard-

to-Reach Standard Offer Program (HTR SOP) through its Texas distribution companies which include AEP Texas Central Company (TCC), AEP Texas North Company (TNC) and Southwestern Electric Power Company (SWEPCO)

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HTR Successes

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TCC TNC SWEPCO

2010

2011

2012

2012 YTD• TCC – 1,947 Customers Served; 4,787 total installations• TNC - 365 Customers Served; 800 total installations• SWEPCO – 982 Customers Served; 2,423 total installations

Lower Budgets in 2012 impact # of Customers Served2012 numbers are from incentive reports processed/paid through October 3, 2012.

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HTR Successes (continued)

TCC: 8 Counties traditionally Underserved experienced

measure installations in 2012 HTR Goal met 3 weeks following opening of

Program in 2012TNC: 25% of program savings achieved in traditionally

Underserved Counties in 2012SWEPCO: 6 Counties traditionally Underserved experienced

measure installations in 2012

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2013 HTR SOP Summary Incentives Paid for kW and kWh savings Internet Application and Reporting HCA, Income Eligibility Form and Customer

Education Material Small Projects

No minimum project size Reserve funds for 30 days

Multi-Family Reserve up to $ 25,000 at a time

Single-Family Reserve up to $5,000 at a time

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2013 KEY CHANGES Underserved Counties for TNC and SWEPCO have been

revised, listed in 2013 HTR Manual Underserved Measures have been reinstated for 2013 Deemed Savings have been revised for 2013 Work schedules required for Project Sponsors completing

Duct Efficiency and Infiltration measures in Single Family projects

Incentive Reports may no longer be submitted the 1st 15 days of each month

All installations must be submitted on an Incentive Report within 45 days of the installation

All host customers must be supplied approved customer education material

Changes to the Host Customer Agreement and Acknowledgement Form to include all Pre and Post CFM readings for Duct Efficiency and Air Infiltration measures and “R” Value of Existing Ceiling Insulation.

Residential dwellings or additions built (completed) after January 1, 2011 do not qualify for the Program

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2013 KEY CHANGES (continued) CFL measure not allowed in SWEPCO Hard-to-Reach All ceiling insulation installations must affirm that an insulation

installation certificate was permanently affixed near the attic opening

An updated duct tool spreadsheet has been added to the database

Failure to complete prescriptive requirements will result in a total Measure failure regardless of the CFM reading

Homes cooled with window air conditioning units exclusively must be reported as “gas” heat. Electric space heaters are considered “plug-in” load and do not make the home eligible for electric heating type in this program (Air Infiltration and Ceiling Insulation measures)

The Air Infiltration Deemed Savings were revised January 2012 to include an upper limit of 4 CFM50 per square foot of house floor area pre-retrofit infiltration rate and this limit will be enforced

All use of marketing, including social media, must be approved by AEP

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HTR SOP INCENTIVE BUDGETS

Budget Limit per PS

TCC $ 953,417 $ 75,000

TNC $ 162,719 $ 30,000

SWEPCO $ 715,772 $100,000

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How Do I Participate? Review Program Manual

Review SOP Agreement

Complete and review on-line application

Submit application via internet

If applicable, send testing procedures within 24

hours of submitting application

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What Happens Next? Applications will be reviewed based on receipt

of all required information Once eligibility has been verified and

application pre-approved, enter into a agreement with AEP to install eligible Measures

Refer to Program Manual for additional information

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Project Sponsor Requirements

A Project Sponsor must have: Adequate insurance (mailed or e-mailed directly

to appropriate Program Administrator by insurance agency)

All appropriate licenses References Evidence of technical and managerial capabilities

and experience AEP approved customer education material to be

distributed to all host customers

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Incentive Payments & Example

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Incentive Payment Structure Four levels, to encourage Project Sponsors:

Installing Standard Single-Family dwelling Measures

Installing Standard Multi-Family dwelling Measures Installing historically Underserved Measures Installing Measures in certain historically

Underserved Counties kW kWh

Standard Single-Family $360 $0.11Standard Multi-Family $325 $0.10Underserved Measures $400 $0.13Underserved Counties $440 $0.15

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Underserved Counties - TCC

ATASCOSA EDWARDS KINNEY UVALDE

BEE FRIO LA SALLE VAL VERDE

BROOKS GOLIAD LIVE OAK WHARTON

CALDWELL GONZALES MAVERICK WILSON

COLORADO GUADALUPE

MCMULLEN ZAPATA

DE WITT JACKSON MEDINA ZAVALA

DIMMIT JIM WELLS REAL

DUVAL KENEDY REFUGIO

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Underserved Counties - TNC

BRISCOE FOARD KNOX

CALLAHAN HALL MOTLEY

CHILDRESS HARDEMAN NOLAN

COTTLE HASKELL SHACKELFORD

DICKENS JONES STONEWALL

EASTLAND KENT THROCKMORTON

FISHER KING WILBARGER

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Underserved Counties - SWEPCO

CHILDRESS DONLEY FRANKLIN

HOPKINS RED RIVER SHELBY

SMITH VAN ZANDT WHEELER

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Incentive Payment Example

Install Measures resulting in savings of:

30 kW 75,000 kWh

Incentive Payment:

$360/kW $0.11/kWh

Total Incentive: $19,050 (before any limits)

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Incentive Payment Limits

Load Factor Caps:

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

$920 per kW

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Application Process

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Create Application

Register on Program website

Complete Project Sponsor Details

Sponsor Profile

Subcontractor Information

Project Description

Qualification Documents

Insurance Information

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Application Schedule

1st Day to register October 18, 2012

Submit applications December 4, 2012

Implementation begins February 5, 2013

Must have approved application status

Must have 2013 HCA’s

Must have a budget reservation

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Multi-Family Projects Site

Measures

Work Schedule

Duct Description

Individually-metered

$25,000 Budget ReservationProgram Administrator can increase

reservations for completion of project per funding availability

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Identify Project Opportunities Verify customer eligibility Original customer signature and date

on Income Eligibility Form Original customer signature and date

on Host Customer Agreement & Acknowledgement (HCA) form

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Install Measures Reserve funds via internet Install Measures Original customer signature and date

HCA form to verify completion If applicable, supply pre and post CFM

readings and “R” Value of Existing Ceiling Insulation on HCA.

Provide customer with Approved Educational Materials

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Reporting Monthly reporting via internet

Inaccurate reporting results in failures Un-submitted Measure installations over

45 days old will lock out reservations feature

AEP will process inspection-adjusted Incentive Reports within 45 days under 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 (10 yr measure life expectancy)

Verify that Measures qualify and that installation standards were followed

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2012 Program Issues Inaccurate pre assessments, i.e. incorrect levels

of existing ceiling insulation reported HCA’s and Installations done prior to application

approval Submitting incomplete HCA forms Failure to complete daily work schedule Multi-Family/Single-Family reservations (only one

open at a time) Use of unapproved marketing material. All

marketing material must be approved, including social media

Failure to report measure installation within 45 days of the installation date

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2012 Program Issues (continued) Customer educational material not being

supplied Must inform customer of inspection possibility

Provide best daytime contact phone #’s Measures installed should provide an expected

life of at least 10 yrs with the exception of CFLs. The following are deemed unacceptable Taping attic access doors and filter access panelsPlumbing penetrations not covered effectively or

with non-rigid materialSupply registers not removed to be sealed nor

serviced from attic spaceCaulking reported but not found in rooms

specified (door frames, baseboards, windows)

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Program Website

Refer to www.aepHTRsop.com for: SOP schedule Latest program announcements Available funding FAQ’s Program Manual Program contact information

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AEP Contact Information TCC – Vee Strauss

Phone: 361.574.2252E-mail: [email protected]

TNC – Steve MutisoPhone: 325.674.7287E-mail: [email protected]

SWEPCO – Jeff ThigpenPhone: 318.673.3372E-mail: [email protected]

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Comments and Questions……………….