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2014 Hard-to-ReachStandard Offer Program

October 23, 2013

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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

2013

2013 YTD• TCC – 1,830 Customers Served; 4,071 total installations• TNC - 274 Customers Served; 629 total installations• SWEPCO – 1,314 Customers Served; 2,299 total installations

Lower Budgets impact # of Customers Served2013 numbers are from incentive reports processed/paid through the 3rd quarter.

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HTR Successes (continued)TCC: 12 Counties traditionally Underserved experienced

measure installations in 2013 Program goals met after first month of program opening

TNC: YTD savings achieved: 233 kW 704,398

kWh 2013 Program Goal: 240 kW 653,561

kWh SWEPCO: 3 Counties traditionally Underserved experienced

measure installations in 2013

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2014 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

2014 KEY CHANGES Project Sponsors must carry all statutorily required insurance The 2014 HTR SOP shall utilize the deemed savings values contained in

the State of Texas Technical Reference Manual (TRM), unless the PUCT indicates otherwise

Residential dwellings or additions completed after January 1, 2012 do not qualify for the program

Home Energy Rater (HERs) or Building Performance Institute (BPI) individual required to be on staff for any Project Sponsor performing duct efficiency and/or air infiltration measures. HERs or BPI individual required to be listed on Project Sponsor application

Underserved Counties for TNC and SWEPCO have been revised for 2014 A new field to report “# of bedrooms” has been added as a required

field on the customer input form  New document upload feature added to the database

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CONTINUING IN 2014 Blower-door testing shall occur immediately prior to the installation of

any air infiltration measures at every site. Post-installation testing shall occur immediately following the installation of air infiltration measures at every site

Pre- and post-retrofit duct pressurization testing shall be performed at every site by Project Sponsors implementing the duct efficiency measure to verify and record leakage sealed

Work schedules required for Project Sponsors completing duct efficiency and infiltration measures in Single Family projects

Project Sponsors must provide a work schedule for Multi-Family projects seven (7) days prior to measure installation

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

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CONTINUING IN 2014 (continued) CFL measure not eligible in SWEPCO HTR SOP 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 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 and telemarketing, must be approved by AEP

Different incentive rate for historically underserved measures Different incentive rate for projects targeting historically

underserved counties

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HTR SOP INCENTIVE BUDGETS

Budget Limit per PS

TCC $ 953,417 $ 75,000

TNC $ 162,719 $ 50,000

SWEPCO $ 562,360 $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, upload 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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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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Incentive Payment ExampleInstall Measures in Single-Family dwellings resulting in savings

of:

48 kW 120,000 kWh

Standard Single-Family Incentive Rate:

$360/kW $0.11/kWh

Total Incentive Payment: $30,480 (before any limits)

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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 COTTLE DICKENS

FOARD HALL HARDEMAN

KENT KING KNOX

MOTLEY STONEWALL

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Underserved Counties - SWEPCO

CHILDRESS FRANKLIN HOPKINS

RED RIVER SMITH UPSHER

VAN ZANDT WHEELER WOOD

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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 24, 2013

Submit applications December 3, 2013

Implementation begins February 4, 2014

Must have approved application status

Must have 2014 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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2013 Program Issues Inaccurate pre assessments, i.e. incorrect levels of existing

ceiling insulation reported, incorrect heating type reported Failure to perform pre-retrofit installation blower-door and

duct blaster tests Failure to perform post-installation blower-door and duct

blaster tests HCA’s and Installations done prior to application approval Submitting incomplete forms (HCA, income eligibility 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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2013 Program Issues (continued) Door weather-stripping; customer(s) must be able to close

and shut door(s) with minimum effort after installation CFLs installed in non-common areas (e.g, closets, pantries) 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 panels Plumbing penetrations not covered effectively or with

non-rigid material Supply registers not removed to be sealed nor serviced

from attic space Caulking 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: svstrauss@aep.com

TNC – Steve MutisoPhone: 325.674.7287E-mail: smmutiso@aep.com

SWEPCO – Jeff ThigpenPhone: 318.673.3372E-mail: jdthigpen@aep.com

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Comments and Questions……………….