Residential Energy Solutions Quick Start Program

Program Manual - March 2009

QUICK LINKS

• PROGRAM OVERVIEW
• PROGRAM ELIGIBILITY
• INCENTIVES
• PROJECT REQUIREMENTS
• PARTICIPATION REQUIREMENTS
• 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 Residential and Small Commercial A/C Tune-up Quick Start Program, is detailed below.

RESIDENTIAL AND SMALL COMMERCIAL A/C TUNE-UP Quick Start PROGRAM OBJECTIVES

The Residential and Small Commercial A/C Tune-up Program is designed to increase energy efficiency by overcoming market barriers that prevent residential and small business customers from receiving high-performance A/C and heat pump system tune-ups. Energy savings are achieved by identifying A/C and heat pump system inefficiencies during the tune-up evaluation and correcting the system inefficiencies. The program overcomes market barriers by providing cash incentives to customers to assist paying for system corrections and by providing contractors incentives in the form of training on best practices, discounts on high-quality tools, and cash incentives to conduct the high-performance system tune-ups.

*Entergy Arkansas, Inc.

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PROGRAM ELIGIBILITY

All residential and commercial customers of Entergy Arkansas, Inc. are eligible to receive incentives in this program.

All heating, ventilation, and air conditioning contractors that serve Entergy Arkansas customers with central air conditioning or heat pump systems are eligible to apply to participate in this program. Contractors that wish to participate must enter into a program partnering agreement that specifies the partnering contractor program eligibility and program requirements.

Customers or contractors interested in participating in the program should call the Energy Efficiency Solutions Center at 1-877-212-2420.

NOTES

Entergy Arkansas will not endorse any energy efficiency-related product, service, or contractor to its customers, but will indicate contractors that have gone through the program requirements to conduct program tune-up evaluations that meet program specifications. Entergy Arkansas makes no guarantees 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

Entergy Arkansas customers that receive a high-performance A/C or heat pump system tune-up evaluation are eligible to receive cash discounts, in the form of a service discount coupon, off of the cost of qualifying services that will improve the efficiency of the A/C or heat pump system tested.

Contractors that have signed the program contractor partnering agreement are eligible to receive a high-performance A/C and heat pump system toolkit at a rate discounted from retail prices, training on high-performance A/C and heat pump system best practices and procedures, and cash incentives for having conducted, documented, and improved the efficiency of the customer’s system that they tested.

INCENTIVE PRICING

Customers that have a partnering contractor conduct a program high-performance tune-up evaluation and have eligible system efficiency improvements made by a partnering contractor will receive a $75 discount coupon for the services provided.

Partnering contractors that, after attending the program best practices training, conduct high-performance tune-up evaluations, can also receive a $75 incentive for completing and documenting a tune-up that results in eligible system efficiency improvements. In addition, contractors are offered an opportunity to receive incentives equal to as much as half of the price of the program toolkit by performing a required number of tune-up evaluations within a period of time.

HOW ARE INCENTIVES PAID?

Upon receiving a high-performance system tune-up evaluation from a partnering contractor, the program will provide incentive coupons for eligible energy efficiency improvement opportunities identified during the evaluation. These coupons are treated like cash and can be submitted to partnering contractors to offset a portion of the system efficiency improvement 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

ELIGIBLE MEASURES

The high-performance A/C or heat pump system tune-up evaluation identifies system efficiency improvement opportunities. Measures eligible for discount coupons include improvements needed to bring the airflow and refrigerant charge into compliance with the manufacturer’s specifications for the unit.

Examples of possible eligible system improvements for customer dollars-off coupons include, but are not limited to:

• Clean Blower
• Clean indoor coil
• Install larger or additional return grill
• Install larger or additional return ducts
• Repair kinked or crushed ducts
• Remove excess flex duct length
• Install larger or additional supply ducts and grills
• Install turning vanes to reduce friction
• Install new indoor coil
• Replace transition to coil

Although encouraged, the following measures are not eligible for program incentives:

• Clean outdoor coil
• Change filters
• Change blower speed
• Change refrigerant charge

INELIGIBLE MEASURES

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

• Involve fuel switching;
• Rely on changes in customer behavior;
• Require no investment; and
• Result in negative environmental or health effects

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PARTICIPATION REQUIREMENTS

PROGRAM ADMINISTRATOR

The Program Administrator’s responsibilities include:

• Promoting the program to customers;
• Providing customers and potential partnering contractors information through the Energy Efficiency Solutions Center (1-877-212-2420);
• Recruiting contractor partners and entering into agreements with them to promote and conduct high-performance A/C or heat pump system tune-ups;
• Making tune-up toolkits available to partnering contractors, providing best practices training on how to use the toolkit as well as on how to perform high-performance tune-ups;
• Reimbursing contractor partners that accept the program coupons; and
• Paying incentives to contractors after they have fully conducted program high-performance tune-ups and submitted required program documentation.

RESIDENTIAL COMMERCIAL CUSTOMER

The customer’s responsibilities include:

• Calling the program Energy Efficiency Solutions Center to identify or confirm that a contractor is a partnering contractor in the program;
• Identify and select a contractor from the list of partnering contractors that they would like to have conduct the high-performance tune-up evaluation*;
• For customers that have opportunities for A/C or heat pump system energy efficiency improvements, decide to have the work performed. Customers choosing to have work performed for measures eligible in the program will receive a $75 discount coupon from the program; and
• Confirm that work was performed and if agreeable, be available for the program to potentially perform a quality assurance check on the work performed.

*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 PARTNERS

The contractor PARTNERS responsibilities include:

• Entering into agreements with the Program Administrator to conduct program quality high-performance A/C and heat pump system tune-ups;
• Obtaining the required program toolkit;
• Attending the program toolkit and best practices high-performance tune-up training;
• Conducting high-performance A/C or heat pump system tune-up evaluations, identifying system inefficiencies, and discussing system improvements with customers;
• Where eligible, providing the customers with the program discount coupons;
• Recording the list of required program tune-up evaluation measurements and submitting them to the program;
• For customers that have system improvement work performed, submitting the post improvement tune-up measurements via the required program process; and,
• Following up with the program to redeem the coupons, along with the required information, to the Program Administrator to be reimbursed for the coupon dollar value.

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PROGRAM PROCESS

The Residential & Small Commercial A/C Tune-up Program is designed to increase energy efficiency by overcoming market barriers that prevent residential and small business customers from receiving high-performance A/C and heat pump system tune-up evaluations and making identified system efficiency improvements. The program process is as follows:

1. Contractor signs the program partnering agreement and fulfills the necessary requirements to become a program partner, including obtaining the required program toolkit and attending the best practices training
2. Partnering contractor offers / customer requests a high-performance system tune-up evaluation;
3. Partnering contractor conducts high-performance system tune-up evaluation with program toolkit and records required system measurements;
4. If tune-up evaluation identifies system inefficiencies, educates customer of system inefficiencies and recommended improvements. For eligible improvement measures, offers customer the program incentive dollars-off coupon;
5. Customer makes decision to have system efficiency improvement work performed by a partnering contractor;
6. Partnering contractor performs improvement work, makes post improvement tune-ups measurements, adjusts refrigerant charge as appropriate, and accepts program discount coupon;
7. Partnering contractor submits the tune-up evaluation and the post tune-up measurements and the customer discount coupon;
8. Upon receiving the required program information from the contractor, the Program Administrator reimburses the partnering contractor for the customer discount coupon and also pays the partnering contractor its program incentive; and
9. Post system improvement inspections will be conducted as needed on a periodic basis to gather a statistically significant sample to confirm program results and customer satisfaction.

PROGRAM PROCESS DIAGRAM

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PROGRAM ENROLLMENT

There is no formal enrollment process for Entergy Arkansas customers in the Residential & Small Commercial A/C Tune-up Program. Customers may find program partnering contractors who will perform the work below:

Customer questions about the program may be answered by calling the Energy Efficiency Solutions Center at 1-877-212-2420 and by speaking to the Residential Energy Efficiency Program Manager.

Contractors may become program partners by following the program requirements as outlined in the partnering agreement.

Interested contractors may receive a partnering agreement by calling the Energy Efficiency Solutions Center at 1-877-212-2420 and speaking to the Residential Energy Efficiency Program Manager.

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PROGRAM CONTACTS

Entergy Arkansas Program Manager

Richard Smith
Entergy Arkansas

Program Implementation Contractor

CLEAResult Consulting
ProgramAdminEAI@clearesult.com