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2014 Workshop2014 Residential Standard Offer

ProgramOctober 23, 2013

Agenda

• Key Changes for 2014• Overview of RSOP• RSOP – TCC

• Large Projects• Small Projects

• RSOP – TNC• Single Program

• Summary

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KEY CHANGES for 2014

Sites Residential dwellings, or additions, completed after

January 1, 2012 do not qualify

TNC now a single program Re-defined Underserved Counties @ TNC Incentive Rates @ TNC 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 database

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Continuing in 2014

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

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

All use of marketing, including social media, telemarketing, etc., must be approved by AEP prior to use

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RSOP Overview

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2014 Residential SOP Overview Program adheres to PUCT rules and guidelines Internet application and reporting Incentives paid for kW and kWh savings AEP

reviews, approves, rejects applicationspre-approves all marketing material, including social media

and telemarketingprocesses Incentive Requests based on inspection resultsmanages programs and incentive dollars

adjusts programs as needed to meet goals

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2014 Residential SOP Overview

Project SponsorEnters into SOP AgreementFollows program requirements outlined in manual Identifies project opportunitiesMarkets program and negotiates terms with customerVerifies customer eligibility – ESI IDExplains to customer:

Role of PS, AEP and customerHCA – Customer protection, complaint processAEP does not provide endorsementsAEP does not pay for measures, material or labor

Installs and reports qualifying measures

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Eligible Customers and Measures

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Eligible Customers

Customer must be an AEP distribution customer ESI ID begins with:

TCC - 100327894…. TNC - 102040497….

May be a customer of any Retail Electric Provider

Customers of Municipals and Co-ops are not eligible

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

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Eligible Measures

High-efficiency A/C and heat pump retrofits Insulation Infiltration control (includes an upper limit

on the pre-retrofit CFM reading of 4 CFM per square foot of conditioned space)

Duct sealing Refer to Program manual for other

measures

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Eligible Measures

• All measures shall meet criteria defined in program manual and installation standards described in deemed savings appendix

• Excellent workmanship is expectedProper materials, applications

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Required Forms

Host Customer Agreement and Acknowledgement

Customer authorizes work Customer verifies work complete Customer acknowledges AEP may inspect work Requires Pre/Post CFM readings for DT and IN Requires existing R-value for CI

Work schedule required: Multi-family projects Duct efficiency Infiltration

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Reporting

Homes cooled with window a/c only are considered “gas” for heat type (electric space heaters are plug loads)

Measures must be reported within 45 days

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Marketing

All marketing material, including social media, telemarketing, Craigslist, etc., must be approved by the appropriate program manager prior to use.

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TCC - Small vs. Large Projects

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TCC

Large ProjectsProject 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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TCC - Small vs. Large Projects

Small Projects Smaller project size No security deposit Funds reserved 30

days Max. PS Incentive:

Per request - $5,000 Per Month - $25,000 Per Year - $150,000

Large Projects Minimum project size

$10,000 5% security deposit Funds reserved to

November 30, 2014 Max. PS Incentive:

$150,000

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TCC - 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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TCC - 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 incentive reports

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TCC - Large Projects: Milestones 40% of contract met by May 31, 2014

75% of contract met by August 31, 2014

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

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TCC - Incentive Payments

kW kWh

Standard Incentive Rate $242$0.08

Underserved Counties $296$0.10

Load Factor Cap: For all combined kW and kWh incentive payments, incentive is limited to $627 per kW at TCC

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TCC - Underserved Counties

Incentives paid at underserved counties rate until budget for underserved counties depleted, then paid at Standard Rate

Underserved budget included as part of the total program budget:

Large Projects $ 650,000Small Projects $ 650,000

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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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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):

$242/kW $0.08/kWh

Total Incentive $ 10,450before any limits

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TNC

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TNC - Incentive Payments

kW kWh

Standard Incentive Rate $254$0.084

Underserved Counties $296 $0.10

Load Factor Cap: For all combined kW and kWh incentive payments, incentive is limited to $658 per kW at TNC

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TNC - Underserved Counties

Incentives paid at underserved counties rate until budget for underserved counties depleted, then paid at Standard Rate

Underserved budget included as part of the total program budget: $63,000

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Underserved Counties - TNC

BRISCOE KENT

COTTLE KING

DICKENS KNOX

FOARD MOTLEY

HALL STONEWALL

HARDEMAN

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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 TCC - Determine if Large or Small Projects

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

All applications must be complete and ready to submit by the program submit date

Submit application via internet Upload 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

Provide proof of statutorily-required insurance Once Application pre-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

Update and/or Complete Project Sponsor

Details

Sponsor Profile

Qualification Documents

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 24, 2013 @ 10:00 am

CDT

Begin applications

Submit applications:TNC: November 5, 2013 @ 10:00 am CST

TCC Large: November 6, 2013 @ 10:00 am CST

TCC Small: December 3, 2013 @ 10:00am CST

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Implementation Schedule

January 7, 2014TNC Reservations open @ 10:00 AM CST

TCC Large Projects Implementation pages open @ 10:00 AM CST

January 21, 2014TCC Small Projects Reservations open @ 10:00

AM CST

Implementation Schedule

ALLMust have 2014 HCA’s prior to implementation

Must have Approved status to make reservation

Open reservation required before installations begin

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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, social media, etc.)

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Identify Project Opportunities

Project Sponsor must:

Verify customer eligibility

Obtain Original Customer signature and date on Host Customer Agreement & Acknowledgement form authorizing work to be performed

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Multi-family Projects

Obtain pre-approvals for Multi-Family Projects Site

Measures

Work Schedule

Duct Description

TNC – must submit MF template to reserve MF funds

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Install Measures• Reserve funds via internet

TCC Small ProjectsTNC

• Large Projects (TCC)– 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 Incentive 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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2013 Reporting Issues

Work schedules not kept current Installations added but not reported

within 45 days of installation

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Common 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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Common Reporting Issues (cont.) Ceiling Insulation – inaccurately reporting

existing R-Value; # bags reported should match CI tag

Listing a service area on application and not servicing that area

Listing a measure on application and not providing that service

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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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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Program Website

Refer to www.aepressop.com for: News & Updates

Latest 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: jjfowler@aep.com

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

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Comments and Questions……………….