Small Commercial & Industrial Energy Solutions Quick Start Program
Program Manual - November 2007
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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 contractor
allies who have committed to promote high efficiency standards and can perform
the work in the required timeframe. These contractor allies 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 contractor allies 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.
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LIGHTING EFFICIENCY
1.1. Lamp and Ballast Replacements
1.2. HID Fixture Replacements
1.3. Hard-Wired CFLs
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PREMIUM EFFICIENCY MOTORS
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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
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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:
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Produce demand savings through an increase in energy efficiency;
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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;
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Have a useful life of at least 10 years; and
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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.
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Equipment Type
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Applicable Baseline
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Cooling Equipment
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ASHRAE 90.1 1989 (baseline for savings)
ASHRAE 90.1 1999 (minimum
installed)
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Lighting Standard
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Lighting Wattage Table Overview
(based on 1992 EPACT)
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Motors
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ASHRAE 90.1-1995m
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INELIGIBLE MEASURES
Excluded from consideration in the program are the following measures which:
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Receive an incentive through any other energy efficiency program offered by
Entergy Arkansas;
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Involve fuel switching;
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Involve self-generation or cogeneration;
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Rely on changes in customer behavior;
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Require no investment; and
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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 Program Contractor Allies.
PROGRAM ADMINISTRATOR
The Program Administrator’s responsibilities include:
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Promoting the program to customers in the selected markets;
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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;
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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;
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Recruiting contractor allies and entering into agreements with them to promote
high energy efficiency standards and to perform the work within the
recommended time frame;
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Providing a list of contractor allies for the specified measures identified as
opportunities in the Assessment*;
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Providing customers with incentive coupons with 45 day expiration dates,
treated like cash, to motivate customers to act quickly after the Assessment;
and
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Reimbursing contractor allies accepting the program coupons.
SMALL COMMERCIAL & INDUSTRIAL CUSTOMER
The customer’s responsibilities include:
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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.
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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.
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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.
CONTRACTOR ALLIES
The contractor Allies responsibilities include:
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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;
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Accepting as cash the program’s “dollars off” coupons for the face value;
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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;
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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
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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:
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Program information is sent to customers in selected target markets.
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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.
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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.
-
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.
-
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.
-
To further spur the customer to take quick action on the upgrade opportunities
identified in the Assessment, the program will provide a list of contractor
allies who have committed to promote high energy efficiency standards and can
perform the work in the required timeframe. These contractor allies 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 allied with the program.
-
After upgrade work has been completed, the contractor allies submit the
coupons to the Program Administrator for reimbursement. The contractor will be
required to verify the completion of the project.
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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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FAQs
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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.
-
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.
-
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 contractor
allies who have committed to promote high energy efficiency standards and can
perform the work in the required timeframe. These contractor allies will
coordinate with the program to accept incentive coupons from the customer to
offset a portion of the installation cost.
-
What does the program cost?
The participants (customers and the
contractor allies) 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.
-
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
contractor allies 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
allied with the program.
-
How does a lighting, HVAC or high efficiency motor contractor become an
ally?
Contractors who would like to become a program contractor ally
may call the Energy Efficiency Solutions Hotline at 1-877-212-2420.
-
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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PROGRAM CONTACTS
Entergy Arkansas Program Manager
Richard Smith
Entergy Arkansas
Program Implementation Contractor
CLEAResult Consulting
ProgramAdminEAI@clearesult.com
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