2017 Residential & Hard-to-Reach Standard Offer Programs Workshop. October 26, 2016

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1 2017 Residential & Hard-to-Reach Standard Offer Programs Workshop October 26, 2016

2 2 2 AEP Contact Information AEP Texas Central Company (TCC) Residential: Jim Fowler jjfowler@aep.com Hard-to-Reach: Vee Strauss svstrauss@aep.com AEP Texas North Company (TNC) Residential: Rhonda Fahrlender rrfahrlender@aep.com Hard-to-Reach: Steve Mutiso smmutiso@aep.com Southwestern Electric Power Company (SWEPCO) Residential & Hard-to-Reach: Debra Miller damiller1@aep.com

3 3 3 Texas Service Territory AEP is offering the Residential and Hard-to-Reach Standard Offer Programs through its Texas distribution companies: AEP Texas Central Company (TCC) AEP Texas North Company (TNC) Southwestern Electric Power Company (SWEPCO)

4 4 4 Overview Primary objectives of the SOPs are to achieve cost-effective reduction in: summer & winter peak demand annual energy consumption The SOPs each provide set incentives to Service Providers (or Project Sponsors) for the installation of qualifying energy efficiency measures The incentives are based on peak demand (kw) and annual energy (kwh) savings The SOPs utilize approved deemed savings values contained in the State of Texas Technical Reference Manual (TRM) to estimate kw and kwh savings impacts

5 5 5 Overview (cont.) AEP Reviews, approves, rejects applications Pre-approves all marketing material, including social media and telemarketing Performs inspections Processes incentive requests based on inspection results Manages programs and incentive dollars Adjusts programs as needed Verifies PUCT compliance

6 6 6 Overview (cont.) Project Sponsor Enters into SOP Agreement Follows program requirements outlined in manual Identifies project opportunities Markets program and negotiates terms with customer Verifies customer eligibility Installs and accurately reports qualifying measures Reviews the TRM for all measure installation requirements

7 Program Budgets Budgets for the 2017 Residential and Hard-to-Reach SOPs are as follows: TCC Residential SOP Large Projects TBD $150,000 TCC Residential SOP Small Projects $1,011,300 $150,000 TCC Hard-to-Reach SOP $953,460 $75,000 TNC Residential SOP $535,050 $75,000 TNC Hard-to-Reach SOP $163,560 $50,000 SWEPCO Residential SOP $845,000 $125,000 SWEPCO Hard-to-Reach SOP $835,000 $100,000

8 8 8 TCC Residential SOP Small Projects No Reservations Multi-Family properties not eligible All applicants start here Large Projects Reserves funds for program year 5% security deposit Milestone schedule (40% of contract met by May 31, 2017; 75% of contract met by August 31, 2017) Program managers have the authority to cancel/delete any measure entered into P3 and not submitted on an invoice within 45 days of installation

9 9 9 TNC Residential and TCC & TNC Hard-to-Reach SOPs No minimum project size Single- & Multi-Family projects are eligible No Reservations Project Sponsors with no experience will start with a cap of no more than $25,000. Additional funds may be allocated per the program administrator s discretion based on an analysis of the project sponsor s performance and available program budget Program managers have the authority to cancel/delete any measure entered into P3 and not submitted on an invoice within 45 days of installation

10 10 10 SWEPCO Residential & Hard-to-Reach SOPs No minimum project size Single- & Multi-Family projects are eligible $25,000 cap on Multi-Family projects No Reservations Project Sponsors with no experience will start with a cap of no more than $25,000. Additional funds may be allocated per the program administrator s discretion based on an analysis of the project sponsor s performance and available program budget. Program managers have the authority to cancel/delete any project entered into P3 and not submitted on an invoice within 45 days

11 11 11 Program Changes in 2017 P3 Platform Database to be utilized by TCC, TNC, and SWEPCO in 2017 Incentive rates will be by measure in Further details to be provided No incentive rates for underserved counties No reservations Annual limit is not a guarantee of funds Air Infiltration, Ceiling Insulation, and retrofit Heat Pump replacing electric resistance units measures will require Pre and Post photos to be uploaded into P3 database All documentation will be uploaded into P3 database

12 12 12 Program Issues & Concerns Air Infiltration measure extremely important not to violate minimum ventilation rule for health & safety reasons Documents must all be uploaded as required before a project may be completed in P3 database The appropriate year and specific program Field Note Forms must be used Accurate reporting of heating type, existing levels of insulation, # of treated areas (returns, vents, plumbing penetrations, light bulbs, etc.) HERs Rater on staff to confirm measure installation quality and functionality to provide energy efficiency without harm to the residential premise (duct efficiency and air infiltration measures)

13 13 13 Program Impacts of TRM in 2017 The TRM 4.0 will have changes to kw and kwh savings for Duct Efficiency, Air Infiltration, and Ceiling Insulation Measures.

14 Registration & Implementation Timeline 1 st Day to begin program registration and submit application November 9, 10:00 a.m. CDT Implementation begins in 2017 Must have approved application status and fully executed agreement Must have 2017 Host Customer Agreement & Acknowledgement (HCA) Forms Residential SOP January 10, 10:00am CST AEP TCC AEP TNC SWEPCO January 10, 10:00am CST January 17, 10:00am CST Hard-to-Reach SOP February 7, 10:00am CST February 7, 10:00am CST February 7, 10:00am CST

15 SWEPCO P3 Application Process Project Sponsors who previously used P3 can apply with their 2016 credentials by clicking on the enrollment link at New Project Sponsors can apply by clicking on the enrollment link. Click Log in on the first page and Create account on the second page to begin the process.

16 16 16 Program Websites The websites will contain Program Manuals, Required Forms and Updates, and P3 Registration and Login TCC & TNC Program Website SWEPCO Program Website

17 Comments and Questions Following is a presentation on How to Make an Application in P3

18 Program Guidelines and References Summary purposes only! (Details need to be obtained from the SOP Manuals)

19 19 19 Am I Eligible to Participate? Any entity meeting the SOPs application requirements that installs eligible residential energy efficiency measures at a customer site with residential electricity distribution service from TCC, TNC or SWEPCO is eligible to apply for participation in the SOPs Eligible Project Sponsors may include: Energy service companies Retail electric providers National or local companies that provide energy-related products (e.g., insulation or HVAC) Product retailers, if they install the particular energy-efficient products sold as part of the SOPs

20 20 20 Project Sponsor Requirements At a minimum, a Project Sponsor must have the following requirements to apply for participation in the SOPs: Valid insurance ( ed directly to appropriate Program Administrator by insurance agency) All appropriate licenses or certifications Home Energy Raters (HERs) or Building Performance Institute (BPI) individual required to be on staff for any Project Sponsors(s) performing Duct Efficiency and/or Air Infiltration measures References Evidence of technical and managerial capabilities and experience Current year calibration of equipment certificates and serial numbers if performing Duct Efficiency and/or Air Infiltration measures

21 21 21 How Do I Participate? Review applicable SOP Manuals Review each SOP Agreement Complete and submit on-line registration & application. If applicable, upload testing procedures at time of registration Applications will be reviewed upon receipt of all required application documents 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

22 22 22 How Do I Participate? (cont.) Proof of statutorily-required insurance submitted by insurance agency Once application is approved, enter into a contract with AEP to install eligible measures Refer to Program Manuals and Program Websites for additional information Refer to the latest Technical Reference Manual (TRM) for measure installation standards (Eligibility and High-Efficiency Condition) and savings calculation detail

23 23 23 Customer Eligibility Residential distribution customers of TCC, TNC and SWEPCO are eligible to have measures installed at their homes as part of the SOPs Eligible customers shall be identified by the Electric Service Identifier (ESI ID) numbers on their electric bill: TCC customer ESI ID s begin with TNC customer ESI ID s begin with SWEPCO customer ESI ID s begin with

24 24 24 Customer Eligibility (cont.) Hard-to-Reach customers are defined as residential customers who have household income at or below 200% of federal poverty guidelines Size of Family Unit Annual Income 1 $23,760 2 $32,040 3 $40,320 4 $48,600 5 $56,880 6 $65,160 7 $73,460 8 $81,780 Each Additional Person Add $8,320 *Income ceilings are for February 1, 2016 January 31, 2017 Income guidelines are updated every January and posted on the PUCT website

25 25 25 Eligible Properties Eligible residential properties include: Single-Family properties Defined as residential dwellings consisting of two or less units (i.e., a duplex or less) Mobile Home properties Defined as manufactured homes Multi-Family properties - Defined as residential buildings containing three or more dwelling units. These include - Individually metered Multi-Family properties Individually metered townhomes Residential dwellings or additions completed before January 1, 2015 are eligible for the SOPs

26 26 26 Marketing AEP will not provide marketing assistance or endorsements Approved Project Sponsors: are encouraged to use the one-page brochure provided by AEP and available on the program websites are required to submit all other marketing material, including social media and telemarketing, for pre-approval to AEP prior to use shall NOT represent themselves as employees of AEP while conducting marketing activities must comply with all the requirements of the National Do Not Call Registry and the Texas No Call lists

27 27 27 Identify Project Opportunities Verify customer eligibility Original customer signature and date on all required forms Regularly check program fund availability on P3 Database Install eligible measures Original customer signature and date on all required forms to verify completion If applicable, supply pre and post CFM readings and R Value of Existing Ceiling Insulation on HCA HCA must be signed by Project Sponsor and Subcontractor (if applicable) Submit all projects within 45 days of installation on P3 Database

28 28 28 Required Forms Host Customer Agreement and Acknowledgement Customer authorizes work and verifies work completion Customer acknowledges AEP may inspect installations Requires Pre/Post CFM readings for DT and IN Requires existing R-value for CI Field Notes Form to be used by crews/installers in the field to capture all relevant measure installation data that is used to calculate savings Income Eligibility Verification Forms for Single-Family and Multi-Family properties (Hard-to-Reach only) Customer Education Materials (Hard-to-Reach only)

29 29 29 Measure Installations Install approved measures to program requirements. Measures must be installed properly and should be capable of performing their intended function. Please review the TRM for all measure requirements Duct Efficiency and Air Infiltration measures include prescriptive requirements (where applicable) that must be treated as a part of the respective measures. Failure to complete prescriptive requirements will result in total measure failure Leakage-to-Outside testing required for duct efficiency measure 10 year period between measure installations per property

30 30 30 Reporting Requirements Inaccurate reporting results in failures All measure installations must be submitted within 45 days AEP will process incentive payments on inspection-adjusted batched reports within 45 days of project completion under normal circumstances Upload all necessary documentation prior to completing a project. Your incentive payment is expressly and specifically conditioned upon receipt of all necessary documentation

31 31 31 Installation Inspections Random sample of Measure installations Verify that number of installed Measures equals number of reported Measures Verify that measure detail reported accurately in the database and on the Field Notes Form Verify Measure is installed and capable of performing its intended function Verify that Measures qualify and that installation standards were followed

32 32 32 Inspection Adjustments All installations will be evaluated on a measure-by-measure basis to calculate an adjustment factor (AF) for the savings and incentive payment The calculated AF will then be applied to all the un-inspected sites AF = Incentive total for measures that pass inspection Incentive total for all measures tagged for inspection

33 Conclusion Thank you for your attendance!

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