Small Commercial & Industrial Energy Solutions Quick Start Program

Program Manual - November 2007

QUICK LINKS

• PROGRAM OVERVIEW
• PROGRAM ELIGIBILITY
• INCENTIVE
• PROJECT REQUIREMENTS
• PARTICIPATION REQUIREMENT
• PROGRAM PROCESS
• PROGRAM ENROLLMENT
• FAQS
• PROGRAM CONTACTS

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PROGRAM OVERVIEW

“Quick Start” PROGRAMS TO REDUCE PEAK DEMAND LOAD

In September 2007, the Arkansas Public Service Commission (APSC) ordered all investor-owned regulated utilities within Arkansas to offer energy-saving programs to their customers. In Docket No 07-085-TF, Order No. 8, the APSC approved the Entergy Arkansas, Inc. energy efficiency programs.

The first three years of the programs are called the “Quick Start” period. During this time, Entergy Arkansas* is offering a variety of programs, which are limited in nature, with the intention of gaining market knowledge and preparing to potentially provide future programs to additional customers. As a result, the programs are limited in scope, the funds available, and the number of customers who may participate.

One of these approved Quick Start programs, the Small Commercial & Industrial Energy Solutions Quick Start Program, is detailed below.

SMALL COMMERCIAL ENERGY SOLUTIONS Quick Start PROGRAM OBJECTIVES

The Small Commercial & Industrial Energy Solutions Program is designed to help small commercial and industrial (C&I) customers understand and make energy efficiency improvements. Customers can call a toll-free number to reach an energy efficiency solutions representative who can direct the customer to the best energy efficiency solution based on the customer’s need.

The energy solutions representative may guide the customer to a list of energy solution tips, to an online tool to help them calculate potential energy savings in their facility, and for those businesses resolved to taking quick action by investing their money in energy efficiency improvements, to a walk-through assessment (Assessment) of their facility.

Customers receiving an Assessment of their facility will have indicated they are ready in the next 45 days to make energy efficiency improvements to their facilities. These improvements include lighting and heating, ventilation and air-conditioning systems. To motivate these customers to act quickly on the Assessment recommendations, the program will provide cash incentives to offset a portion of the upgrades if customers act within the 45-day period after the Assessment occurs.

To further support the customer’s quick response to upgrade opportunities identified in the Assessment, the program will provide a list of partnering contractors who have committed to promote high efficiency standards and can perform the work in the required timeframe. These partnering contractors will coordinate with the program to accept incentive coupons from the customer to offset the total cost of installation.

* Entergy Arkansas, Inc.

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PROGRAM ELIGIBILITY

All Entergy Arkansas non-residential, retail C&I customers with peak electricity demand less than 100 kW are eligible for this program. Customers are defined by a single Tax ID number. Assessments are limited to one per customer due to the limited scope of the program. Customers may only participate in one energy efficiency program offered by Entergy Arkansas. The program may make exceptions to align program objectives with market subscription to the program.

PROGRAM TARGET MARKETS

Although many customers are eligible, to help optimize limited program resources and maximize results, target markets will be selected, and customers in those markets will receive information through direct mail. Target markets will be based on kW reduction opportunity from usage analysis and on information of geographical Transmission and Distribution capacity constraints. The number of target markets selected will vary to manage proper subscription to the program based on the available budget and program objectives.

Non-targeted customers who call into the program will be granted the opportunity to participate in the program but may experience longer lead times for program resource availability.

NOTES

Entergy Arkansas will not directly market any energy efficiency related product or service to its customers. Entergy Arkansas makes no representation of the benefits of any particular technology or energy efficiency measure eligible for incentives under this program. The selection of an energy efficiency measure is at the discretion of the individual customer.

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INCENTIVES

INCENTIVE BASIS

Funding in the form of “dollars-off” coupons will be available to pay for identified and qualifying energy efficiency projects in small commercial and industrial facilities. 

INCENTIVE PRICING

The coupons will be based on identified and eligible energy efficiency measures, and the coupons will provide the equivalent of $115/kW as determined by the “deemed savings” calculations for the identified technology.

HOW ARE INCENTIVES PAID?

The program will provide incentive dollars-off coupons if an Assessment identifies energy efficiency upgrade opportunities. These coupons are treated like cash and can be submitted to participating partnering contractors to offset a portion of the upgrade cost. The contractor then redeems the coupons with the program administrator for reimbursement.

NOTES

Under no circumstances will Entergy Arkansas make a total incentive payment more than 100 percent of the total cost of the energy efficiency project.

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PROJECT REQUIREMENTS

The following measures will be considered eligible and have incentive coupons available where opportunities have been identified and customers are committed to upgrading their facilities.

1. LIGHTING EFFICIENCY

   1.1. Lamp and Ballast Replacements

   1.2. HID Fixture Replacements

   1.3. Hard-Wired CFLs

2. PREMIUM EFFICIENCY MOTORS

3. UNITARY AC AND HP EQUIPMENT

   3.1. Air Conditioners—Air Cooled

   3.2. Air Conditioners—Water and Evaporatively Cooled

   3.3. Heat Pumps—Air Cooled

4. WATER CHILLING EQUIPMENT (CHILLERS)

   4.1. Screw—Air Cooled

   4.2. Reciprocating—Air Cooled

   4.3. Reciprocating—Water Cooled

   4.4. Rotary/Screw/Scroll—Water Cooled

   4.5. Centrifugal—Water Cooled

Measures must also:

• Produce demand savings through an increase in energy efficiency;

• Produce a measurable and verifiable electric peak demand reduction during the peak summer period (defined as between 11 AM and 9 PM, Monday through Friday, for the months of May through September, excluding holidays) and must reduce electricity consumption;

• Have a useful life of at least 10 years; and

• Exceed minimum equipment efficiency standards.

The energy efficiency upgrade measures in the section above are based on deemed savings. Deemed savings measures, which are standardized savings values or simple formulas for a wide range of measures in representative building types, determine the basis for incentive payments. They indicate the amount of kW “credit” an upgrade receives.  The savings from these measures—based on the “Arkansas Deemed Savings Quick Start Program Draft Report - Commercial Measures” - are on file with the Arkansas Public Service Commission.

The deemed savings apply where no unusual conditions exist. For example, chiller loads must not be more than 20 percent process related, and projects must not incorporate significant deviations from typical chiller operation practices (e.g. non-standard chilled water or condenser water set points, ice production during off peak hours, changes in chiller sequencing, etc.). These measures require no short-term testing or long-term metering.

EFFICIENCY STANDARDS

Entergy Arkansas has designed the Small Commercial & Industrial Solutions Program to encourage electric energy efficiency improvements that go above and beyond the efficiency gains typically achieved in energy efficiency projects. Accordingly, peak demand savings credit will be based only on reductions that exceed current industry accepted minimum efficiency standards where applicable. The equipment efficiency standards listed below will be used to determine the baseline efficiency.

INELIGIBLE MEASURES

Excluded from consideration in the program are the following measures which:

• Receive an incentive through any other energy efficiency program offered by Entergy Arkansas;

• Involve fuel switching;

• Involve self-generation or cogeneration;

• Rely on changes in customer behavior;

• Require no investment; and

• Result in negative environmental or health effects.

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PARTICIPATION REQUIREMENTS

The Small Commercial & Industrial Energy Solutions Program involves a Program Administrator consisting of Entergy Arkansas and its implementing contractor, CLEAResult Consulting, Small Commercial and Industrial Entergy Arkansas retail electric customers and partnering contractors.

PROGRAM ADMINISTRATOR

The Program Administrator’s responsibilities include:

• Promoting the program to customers in the selected markets;

• Providing customer assistance through the Energy Efficiency Solutions Center to evaluate the customer’s energy usage opportunities and direct them to the best energy efficiency solution;

• Scheduling Assessments of customer’s facilities for those customers who indicate the willingness to invest in and implement the cost-effective opportunities that may be identified in the Assessment;

• Recruiting partnering contractors and entering into agreements with them to promote high energy efficiency standards and to perform the work within the recommended time frame;

• Providing a list of partnering contractors for the specified measures identified as opportunities in the Assessment*;

• Providing customers with incentive coupons with 45 day expiration dates, treated like cash, to motivate customers to act quickly after the Assessment; and

• Reimbursing partnering contractors accepting the program coupons.

SMALL COMMERCIAL & INDUSTRIAL CUSTOMER

The customer’s responsibilities include:

• When selected as part of the program’s targeted outreach and upon receiving the targeted mailing, calling the program Energy Efficiency Solutions Center to discuss their energy needs to determine an appropriate energy solution for their situation.

• For those customers who receive energy savings tips and/or recommendations from the Energy Solutions Representative, making a best-effort commitment to take action on the tips and recommendations.

• For those customers receiving Assessments, making a best-effort commitment to implementing cost-effective energy efficiency improvements to their facilities within 45 days of the Assessment.

*Entergy Arkansas, Inc. does not guarantee or make any warranties or representations regarding the services performed by any third parties, including professionals provided by the program. Participating customers have sole responsibility for reviewing and using the results or recommendations of any services performed by such service providers.

PARTNERING CONTRACTORS

The partnering contractors responsibilities include:

• Entering into agreements with the Program Administrator to promote high efficiency standards and to perform the recommended work identified in the Assessment in the required timeframe;

• Accepting as cash the program’s “dollars off” coupons for the face value;

• Following up with the program to redeem the coupons with the Program Administrator to be reimbursed for the coupon dollar value per the program rules;

• For upgrades identified in Assessments for which that contractor wins the work, starting the project within 45 days of the Assessment and completing the upgrade within 120 days; and

• Completing the work by December 31 of that program year.

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PROGRAM PROCESS

The Small Commercial & Industrial Energy Solutions Program is designed to help commercial and industrial customers understand and make energy efficiency improvements. The program process is as follows:

1. Program information is sent to customers in selected target markets.

2. Customers who receive the information and wish to participate in the program call the Energy Efficiency Solutions Center and speak to an Energy Solutions Representative. The conversation will include questions about basic and necessary customer information (e.g., customer name, rate class), information about the customer’s facility and its energy using systems, and the customer’s ability and intent to invest in energy efficiency technologies in the near future.

3. The Energy Solutions Representative evaluates the customer’s situation and directs the customer to the best energy efficiency solution. Solutions include a list of energy tips, an online tool to help them calculate potential energy savings in their facility, and for those businesses resolved to taking quick action by investing their money in energy efficiency improvements, the opportunity for an Assessment of their facility.

4. Customers determined by the Energy Solutions Representative as having energy efficiency upgrade opportunities in their facilities and as indicating a commitment to invest in identified energy efficiency measures will be scheduled for an Assessment of their facility at a date that meets the schedule of the customer and the program.

5. The program is not intended to simply provide an Assessment and customer education; it is intended to stimulate the installation of energy efficiency upgrades. Therefore, customers that accept program-provided Assessments will be asked to exert their best efforts to complete viable projects in the 45 day period after the Assessment. These improvements include lighting and heating, ventilation and air-conditioning systems. To motivate these customers to act quickly on the Assessment recommendations, the program will provide cash incentives in the form of coupons with 45-day expiration dates to offset a portion of the upgrades.

6. To further spur the customer to take quick action on the upgrade opportunities identified in the Assessment, the program will provide a list of partnering contractors who have committed to promote high energy efficiency standards and can perform the work in the required timeframe. These partnering contractors will coordinate with the program to accept incentive coupons from the customer to offset the total cost of installation. Customers should note the incentive coupons cannot be used with contractors who have not partnered with the program.

   For a list of Partnering Contractors, please CLICK HERE

7. After upgrade work has been completed, the Partnering Contractors submit the coupons to the Program Administrator for reimbursement. The contractor will be required to verify the completion of the project.

8. Post upgrade facility inspections will be conducted as needed on a periodic basis to gather a statistically significant sample to confirm program results.

PROGRAM PROCESS DIAGRAM

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PROGRAM ENROLLMENT

There is no formal enrollment process for the Small Commercial & Industrial Solutions Program. 

To participate in the program, target market customers will call the Energy Efficiency Solutions Center at 1-877-212-2420 and speak to an Energy Solutions Representative. The Energy Solutions Representative assesses the customer’s situation and directs the customer to the best energy efficiency solution. Solutions include a list of energy tips, an online tool to help them calculate potential energy savings in their facility, and for those businesses resolved to taking quick action by investing their money in energy efficiency improvements, the opportunity for an Assessment of their facility.

Non-target market customers who call into the program may be granted the opportunity to participate in the program but may experience longer lead times for program resource availability.

Should the program become oversubscribed, customers who requested facility Assessments in 2008 and do not receive one will be the first to be scheduled for Assessments in the 2009 program year. Customers in target markets receive preference over customers outside the target markets. Targeted customers will receive preference for program funds should program funds reach their budgeted maximum.

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1. Who is eligible for the program?
   The Small C&I Energy Solutions Quick Start Program is offered to all Entergy Arkansas non-residential, retail C&I customers with peak electricity demand less than 100 kW. Customers are defined by a single Tax ID number. Assessments are limited to one per customer due to the limited scope of the program. Customers may only participate in one energy efficiency program offered by Entergy Arkansas.

   To help optimize program resources and results, target Entergy Arkansas markets will be selected and customers in those markets will receive direct mail outreach. Customers not eligible for the program’s resources will be directed to another program that may fit their customer class.

   Customers not in the targeted markets who call into the program will be granted the opportunity to participate but may experience longer lead times for program resource availability. Targeted customers will receive preference for program funds should program funds reach their budgeted maximum.

2. How does the program work?
   Per the information sent to the customers in the selected target markets, customers call in to the Energy Efficiency Solutions Center and speak to an Energy Solutions Representative who, through conversation and questions about the businesses’ facilities and operations, can assess and direct the customer to the best energy efficiency solution based on the their need.

   The Energy Solutions Representative may guide the customer to energy solution tips, to an online tool to help them calculate potential energy savings in their facility, and for those businesses resolved to taking quick action by investing their money in energy efficiency improvements, to the opportunity for an Assessment of their facility.

3. Which customers receive Assessments?
   Customers that receive an Assessment of their facility have indicated they are ready to make energy efficiency improvements to their facilities within 45 days after the Assessment. These improvements include lighting and heating, ventilation and air-conditioning systems. To motivate these customers to act quickly on the Assessment recommendations, the program will provide cash incentives to offset a portion of the upgrades if customers act within the 45-day period after the Assessment and complete upgrades within 120 days.

   To further support the customer’s quick response to upgrade opportunities identified in the Assessment, the program will provide a list of partnering contractors who have committed to promote high energy efficiency standards and can perform the work in the required timeframe. These partnering contractors will coordinate with the program to accept incentive coupons from the customer to offset a portion of the installation cost.

4. What does the program cost?
   The participants (customers and the partnering contractors) pay nothing for the program support. Entergy Arkansas provides all of the support for the program, and the only financial investment any participant makes are for the energy efficiency measures they have installed in their own facilities. The Small Commercial Energy Solutions program administrator, CLEAResult Consulting, does not have a financial interest in any of the energy efficiency implementation services offered to the customers in the program.

5. Who decides what energy efficiency technologies to install and who installs them?
   The customers are the sole determinant for what energy efficiency measures they decide to implement and how they are implemented. For energy efficiency upgrades, the program does not provide any installation of energy efficiency measures. The program encourages the use of industry program Partnering Contractors who have agreed to the program conditions and to accept the program coupons, but it does not require that customers do so. Customers should note the incentive coupons cannot be used with contractors who have not partnered with the program.

6. How does a lighting, HVAC or high efficiency motor contractor become a partner?
   Contractors who would like to become a program partnering contractors may call the Energy Efficiency Solutions Hotline at 1-877-212-2420.

7. What are the incentives?
   The incentives for eligible energy efficiency measures are based on $115/kW for demand reductions. The kW reductions are based on “deemed savings” that have been submitted to the Arkansas Public Service Commission.

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Entergy Arkansas Program Manager

Richard Smith
Entergy Arkansas

Program Implementation Contractor

CLEAResult Consulting
ProgramAdminEAI@clearesult.com