Residential & Small Commercial

Standard Offer Program2005 Workshop

2

Welcome and Introduction

Program Administrators –

AEP Texas Central Company Russell Bego Pam Osterloh

AEP Texas North Company Rhonda Fahrlender Gary Throckmorton

AEP SWEPCO Lana Deville Tom Patty

3

Program Summary

First Come/First Served Internet Application and Reporting Large Projects

Project size equal or greater than 20 kW Reserves funds for calendar year

Small Projects No minimum project size Reserves funds for 45 days

4

What’s New for 2005? Duct efficiency improvement revision All Project Sponsors required to use HCA

template No multi-family allowed in small projects at

TCC & TNC Changes to application forms On-line site verification ESI ID required at TCC & TNC

5

Duct Efficiency Changes Refer to Deemed Savings for

changes Multi-family

Majority in Conditioned Space now ineligible

Majority Conditioned/Unconditioned Space can’t be determined – now ineligible

6

Program Roles

Program Administrator Project Sponsor Customer

7

Program Administrator – AEP

Administer the program according to rules and template guidelines

Review and approve or reject program applications

Inspect and verify that measures meet intended purpose

Administer incentive dollars Adjust programs as needed

8

Project Sponsor Project opportunities

Identify energy measures to install AEP will not provide marketing assistance or

endorsements Verify customer eligibility

Obtain ESI ID HCA/Customer Acknowledgement

Install and document energy savings

9

Customer To qualify

Must be distribution customer of AEP May purchase power from any supplier Municipals and Co-ops are not Customers

ESI-ID TCC - 100327894…. TNC - 102040497… SWEPCO - 101769896, account number, or meter

number Signs HCA and Customer Acknowledgement

10

Customer Classes Residential Multi-family

Master-metered are commercial Individually-metered are residential (each unit) Common area is small commercial

11

Customer Classes Small Commercial

Customers under common ownership with peak demands less than 100kW and the aggregate demand is less than 250kW

Examples of facilities usually 100kW or less: Most convenience stores Office/retail buildings less than 15,000 sq ft Facilities with less than 50 tons of air conditioning,

with little or no process energy use

12

Two Ways To Participate

Large Projects

Small Projects

13

Small vs. Large ProjectsSmall Projects

Simplified contract Smaller project size No security deposit Max. per request: $5,000 Max. per year:

SWEPCO $20,000 TCC $75,000 TNC $30,000

Large Projects Standard SOP agreement Larger, multi-site projects 5% security deposit Min. project size: 20kW Max. Incentive amount:

SWEPCO $ 43,000 TCC $237,938 TNC $ 66,000

14

Small vs. Large ProjectsSmall Projects

Funds reserved 45 days No milestone schedule M&V Options

Deemed Savings Simplified M&V

Eligible Customers: SF, SmC (multi-family at SWEPCO only)

Large Projects Funds reserved for year Milestone schedule M&V Options

Deemed Savings Simplified M&V Measured Savings

Eligible Customers: SF, MF, SmC

15

Large Projects:Key Program Elements Security Deposit

5% of contracted amount Refunded when 75% of contract achieved from

inspection adjusted approved invoices

Milestone 50% of contract met through approved

invoices by 6/30/05 (for contracts executed prior to 4/1/05)

16

Large Projects: Project Sponsor Incentive Limit

Residential and Small Commercial

SWEPCO - $43,000 TCC - $237,938 TNC - $66,000

17

Small Projects:Key Program Elements

Submit incentive request to reserve funds for 45 days

$5000 maximum per reservation Monthly limit on incentive requests

SWEPCO/TNC $10,000 TCC $15,000

18

Small Projects:Incentive Budget

Release Dates for Funds:

1/10/05 5/1/05 SWEPCO $ 50,000 $ 25,500 TCC $400,000 $400,000 TNC $ 75,000 $ 75,299

19

Small Projects:Incentive Limit

Residential and Small Commercial: Per Project Sponsor

SWEPCO $20,000 TCC $75,000 TNC $30,000

20

How do I participate as a Project Sponsor? Review Program Manual Review SOP Agreement Determine Project Size Determine if you will participate in the

Large Projects or Small Projects component Complete and review on-line application Submit application via internet

21

How do I participate as a Project Sponsor?

Applications will be reviewed on a first-come, first-served basis

Once eligibility has been verified and application approved, enter into a contract with AEP to deliver demand and energy savings

Refer to Program Manual for additional information

22

Project Sponsor Requirements

Project Sponsors must have: Adequate insurance All appropriate licenses References Evidence of technical and managerial

capabilities and experience Evidence of financial capability

23

Incentive Payments Fixed, or “standard” price paid for

a kW and kWh of demand and energy reduction

All payments are based solely on pre-determined annual kW and kWh savings

24

Incentive Payments Incentive Payments

Climate Zone 2 HVAC: 3 ton, 13 SEER = approx. $281

Ceiling Insulation: 1500 square feet, heat pump, Base of R-6 = approx. $278

Duct Efficiency: 1500 square feet, HVAC w/heat pump, = approx. $402

25

Incentive Payment Limits

Lighting (65%) Maximum of 65% of a project’s kW and

kWh incentive payments may come from lighting

Load Factor Caps Combined kW and kWh incentive

payment may not be more than $611 per kW at TNC and SWEPCO, $570 at TCC

www.aepressop.com

27

Application Forms

The following information must be submitted as part of the application process: Project Sponsor Information Project Description Estimated Impacts Marketing Plan Project Sponsor’s Qualifications

28

Changes to Application Pages

Initial application will require submittal of any subcontractors for measures being installed

System locked until launch time Must select measures you intend to install

and provide proof of your experience or your subcontractor’s in installing those measures

Application

Application

Application

Application

33

Large Project Application Guidelines

All applications will be taken over the Internet Only one username logged on at the time of

submittal Applications must be completed prior to midnight

the day before the application date at each company

At 10:00 AM on each application day the system will be available and submit buttons will appear

34

Large Project Submittal Be sure all check boxes show complete prior to

12:00am CST before application date Access login page up to 10 minutes before 10:00

am CST When the server passes 10:00, hit F5 to refresh

screen to make the “Submit Login” button become active

Type in username and password, click on the “Submit Login” button

35

Small Project Application Process

All applications will be taken over the Internet

Project Sponsors submit qualifications and other data anytime beginning January 3

After approval, access will be granted to allow incentive reservations

36

I’ve been awarded a contract, now what do I

do?

37

Obtain Pre-approvals MF projects

Site Measures Work Schedule Duct Description

38

Identify Project Opportunities AEP will not provide marketing assistance

or endorsements Use of AEP name not allowed Project Sponsor Listing available at

aepefficiency.com Verify customer eligibility Customer signature on Host Customer

Agreement

39

Install Measures

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

by contract Install measures Customer signature on Customer

Acknowledgement

40

Reporting and Invoicing

Monthly reporting via internet Enter installations before end of month Close-out by 10th of following month Inaccurate reporting results in failures

AEP will process inspection-adjusted invoice within 45 days

41

Installation Inspections

Random sample of measure installations Verify that reported measures are still in

place Verify if measure is installed properly and

capable of performing its intended function Verify that measures qualify and that

installation standards were followed

42

Program Websitewww.aepressop.com

Refer to website for: SOP schedule Latest program announcements Available funding FAQ’s Program Manual Downloadable forms, helper application Program contact information

43

Application Dates & Times for Large Projects

SWEPCONovember 9, 2004 at 10:00 am CST

TNCNovember 10, 2004 at 10:00 am CST

TCCNovember 11, 2004 at 10:00 am CST

44

Application Dates and Times for Small Projects

January 3, 2005 Application available on the web site

January 10, 2005 at 10am CST

45

Contact Information SWEPCO – Lana Deville

Phone: 318.673.3514 E-mail: lldeville@aep.com

TCC – Pam Osterloh Phone: 361.881.5730 E-mail: pdosterloh@aep.com

TNC – Rhonda Fahrlender Phone: 325.674.7513 E-mail: rrfahrlender@aep.com