Large Commercial & Industrial Energy Solutions Quick Start Program

Program Manual - January 2011

QUICK LINKS

• PROGRAM OVERVIEW
• PROGRAM ELIGIBILITY
• INCENTIVES
• PARTICIPATION REQUIREMENTS
• PROJECT REQUIREMENTS
• PROGRAM PROCESS
• PROGRAM ENROLLMENT
• NEXT STEPS
• FAQS
• PROGRAM CONTACTS
• APPENDIX

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PROGRAM OVERVIEW

LARGE C&I ENERGY SOLUTIONS Quick Start PROGRAM OBJECTIVES

The Large Commercial & Industrial (C&I) Energy Solutions program is designed for commercial and industrial retail electric customers with a peak demand project of 20 kW or greater. The program seeks to help larger customers make the most efficient use of energy by providing them with access to technical knowledge, energy assessments, and financial incentives.

Participating customers become eligible to receive monetary incentives to upgrade equipment that reduces peak demand in their facilities. To identity qualifying upgrades, customers can choose to use their own staff, enlist the services of consulting engineers, choose from a network of energy engineering professionals the program will identify, or use energy assessment professionals provided by the program**. These energy assessment professionals conduct an energy assessment that may examine heating, ventilation, and air conditioning (HVAC) equipment, lighting, and motors. After upgrades are completed and verified, Entergy Arkansas* will provide incentive payments of up to $159/kW.

*Entergy Arkansas, Inc.

** 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.

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PROGRAM ELIGIBILITY

ELIGIBLE CUSTOMERS

The Large C&I Energy Solutions Program is offered to all Entergy Arkansas retail electric customers with a peak demand project of 20 kW or greater.

A customer is defined by a single Tax ID number. Organizations with multiple locations are thereby considered a single customer, regardless of how many Entergy Arkansas account numbers they may have. See “Participation Requirements” for additional information regarding affiliates.

NOTES

Entergy Arkansas will not directly market any energy efficiency-related product or service to its customers. Entering into an agreement with Entergy Arkansas does not imply Entergy Arkansas’ endorsement or approval of any customer’s product or service. 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

WHAT ARE THE INCENTIVES?

The incentives for eligible energy efficiency measures are based on $159/kW for peak demand reductions.

INCENTIVE BASIS

Funding is available to pay incentives for eligible energy efficiency projects in Large Commercial & Industrial facilities. Incentives are paid on kW reductions that are based primarily on the approach in Arkansas Deemed Savings Program Commercial Measures - Final Report on file with the Arkansas Public Service Commission. Deemed savings are the standardized savings values or simple formulas for a range of measures in representative building types. Deemed savings do not require measurement and verification (M&V). As determined with and by the program, customers may submit measures that are not deemed savings measures, and the program will work with the customer to determine an appropriate M&V approach. As long as the approach includes adequate calculations or monitoring to justify savings, the measures may be eligible for incentives under this program.

Can the Incentives Change?

The incentives will not exceed $159/kW.

Customers, at their sole discretion, may indicate in their application they are willing to accept a lower incentive to help install their energy efficiency measure (lower $/kW) than the maximum value ($159/kW). The reason a lower incentive may be important and may be to the customer’s advantage is if more customers apply for incentive funds than are available (oversubscription), the program will approve projects based on the scoring criteria. One of the scoring criteria is to maximize the kW demand savings per incentive payout. Therefore, a lower incentive payout would increase this score.

In order to enhance a customer’s criteria ranking, however, customers may opt to submit applications with a lower incentive amount per kW. This will raise the ranking of their applications and increase the chances of their application being approved.

Funding Limitations

• To ensure incentives are available for multiple projects and customers, no one customer and its affiliates may receive more than 20 percent of Entergy Arkansas’ program budget in any funding year
• Customers are defined by a single Tax ID number. Organizations with multiple locations are thereby considered a single customer, regardless of how many Entergy Arkansas account numbers they may have. See “Participation Requirements” for additional information regarding affiliates.
• Customers may apply for the maximum incentive amount ($159/kW).
• A customer may submit multiple applications and participate in multiple projects as long as the total incentive from all such projects does not exceed the aforementioned limits.

HOW FUNDING IS RESERVED

Funds are reserved on a first-come, first-served basis per the application deadline. If the program is over-subscribed, scoring criteria will be applied to determine eligible projects for funding.

HOW ARE INCENTIVES PAID?

A project will usually utilize deemed savings; or, where applicable, an appropriate M&V approach as determined and approved by the program, to calculate demand savings and receive an "Installation Payment" representing 100 percent of the total estimated incentive payment after the project is installed, documented and verified.

Incentives are paid by check directly to the Entergy Arkansas retail electric customer after the project is completed and verified. Checks for eligible incentives will be delivered no later than December 31 of the program year.

NOTES

Under no circumstances will Entergy Arkansas make a total incentive payment that is more than 100 percent of the total estimated incentive payment specified in the C&I project worksheets. No customer has an unconditional entitlement to the C&I Large Energy Solutions incentive funds.

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PARTICIPATION REQUIREMENTS

The Large Commercial & Industrial Energy Solutions Program involves a Program Administrator consisting of Entergy Arkansas and its implementing contractor, CLEAResult. The program also involves qualified Entergy Arkansas customers as described in the eligibility section.

PROGRAM ADMINISTRATOR

The program administrator's responsibilities include:

• Providing program outreach and marketing
• Receiving Letters of Intent
• Providing consultative energy solutions to help customers identify eligible upgrade projects and complete them within the program year
• Reviewing and approving or rejecting project applications
• Performing certain inspection activities
• Authorizing and issuing incentive payments

CUSTOMER

To ensure the program incentive budget is allocated to projects likely to finish within the program year, all customers will be required to submit a Letter of Intent to demonstrate a commitment to fulfilling program objectives.

In addition, customers will be required to:

• Identify potential project opportunities
• Develop project documentation in accordance with C&I Large Energy Solutions procedures and deadlines
• Complete the installation of approved projects by
• Comply with mandatory progress milestones
• Submit implementation reports and invoices

Customers are defined by a single Tax ID. Organizations with multiple locations are thereby considered a single customer, regardless of how many Entergy Arkansas account numbers they may have.

AFFILIATE STATUS

In any funding year, no customer and its affiliates may receive more than 20 percent of Entergy Arkansas' C&I program budget. Entergy Arkansas will define an affiliate as follows:

• A person who directly or indirectly owns or holds at least 5 percent of the voting securities of the customer
• A person in a chain of successive ownership of at least 5 percent of the voting securities of the customer
• A corporation that has at least 5 percent of its voting securities owned or controlled, directly or indirectly, by the customer
• A corporation that has at least 5 percent of its voting securities owned or controlled, directly or indirectly, by

1. A person who directly or indirectly owns or controls at least 5 percent of the voting securities of the customer

• A person in a chain or successive ownership of at least 5 percent of the voting securities of the customer
• A person who is an officer or director of the customer or of a corporation in a chain of successive ownership of at least 5 percent of the voting securities of the customer
• A person who actually exercises substantial influence or control over the policies and actions of the customer
• A person over which the customer exercises the control described in subparagraph (F) of the paragraph
• A person who has the power, either directly or indirectly, to direct or cause the direction of the management or policies of the customer, without regard to whether that power is established through ownership or voting of securities or any other direct or indirect means
• Any number of persons related by ownership, marriage or blood relationship, or by action in concert, who exercise substantial influence over the policies and actions of the customer even if no individual person may qualify as an affiliate

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PROJECT REQUIREMENTS

WHAT IS A PROJECT?

A project is defined by a set of proposed demand savings measures included in a single application. Comprehensive projects that include a range of eligible measure types are encouraged.

All projects must meet the following requirements:

Minimum Project Size:

Each project must include a total estimated demand reduction of at least 20 kW during the summer peak period, defined as between 11 a.m. and 9 p.m. Monday through Friday, for the months of May through September, excluding holidays.

Multi-Site:

One project may involve the installation of measures at more than one customer site if the customers and sites are similar. For example, installation of measures at a chain of grocery stores may include more than one location but may constitute a single project. Combining similar measures/sites into a single project reduces administrative costs for performing due-diligence review of applications and pre- and post-construction inspections.

ELIGIBLE ENERGY EFFICIENCY UPGRADE PROJECT MEASURES

The energy efficiency upgrade measures outlined below are based on deemed savings and are eligible in the Large C&I Energy Solutions program.

The savings from these measures—based on the “Arkansas Deemed Savings Program Commercial Measures - Final Report”—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.

If a customer in this program has a measure not specified below or with unusual conditions, the measure does not qualify for deemed savings and the Program Administrator will work with the customer to submit the measure with an appropriate measurement and verification (M&V) approach based on the M&V guidelines used in the Large C&I Standard Offer Program.

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 are required to:

• Produce demand savings through an increase in energy efficiency
• Produce a measurable and verifiable electric demand reduction during the peak summer period and must reduce electricity consumption
• Have a useful life of 10 or more years
• Exceed minimum equipment efficiency standards

EFFICIENCY STANDARDS

Entergy Arkansas has designed the Large C&I Energy Solutions Program to encourage electric energy efficiency improvements that go above and beyond the efficiency gains typically achieved in retrofit or replacement projects. Accordingly, demand savings credit will be based only on reductions exceeding 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 measures that:

• 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
• Result in negative environmental or health effects

HOW ARE PROJECT OPPORTUNITIES IDENTIFIED AND DETERMINED?

Upon submission of the Letter of Intent, the Program Administrator will contact the customer to discuss the customer’s project identification needs. From there, the Program Administrator will continue to provide consultative energy solutions guidance or assistance including assessing facilities, assessing and/or benchmarking energy use, and/or evaluating energy reduction opportunities for customers.

The program will offer to conduct building assessments for customers that require it. Customers that accept program-provided assessments will be asked to exert their best efforts to submit and complete viable projects in the program year, by the program deadline. The program is not intended to simply provide assessments and customer education. It is intended to stimulate the installation of improvement projects.

Depending on program subscription, Entergy Arkansas may not be able to provide direct assessment assistance to all customers before the application deadline. Program assessments may be limited to one per customer based on program subscription rates or as determined by the Program Administrator to cost-effectively implement the program while also achieving program objectives.

Customers may also choose from several other options to complete assessments including using previously completed audits, using internal staff, or external consultants.

Energy Performance Benchmarking

As needed, the Program Administrator may encourage commercial customers to benchmark the energy performance of their building(s). Benchmarking the energy performance is done through the use of US EPA’s Portfolio Manager Tool. Information is entered into the tool to determine the energy use of the facility including where the facilities are located geographically, the number of occupants in the building, and some information about certain types of equipment within the facilities. Once this information is completed and submitted as inputs to the tool, the output is a numerical score of one to 100. The higher the benchmark score, the better the energy performance. When appropriate, participants in the program can use benchmarking to determine the magnitude of energy efficiency opportunities in their facilities and prioritize their efforts. Not all customers will benefit from benchmarking, and it is not required.

The program works with individual participants to assess facilities and operations and to identify the areas of need for energy efficiency opportunities. The assessment, regardless of who the assessor is, should list specific opportunities to reduce energy use without sacrificing the quality of the operation. Armed with this information, customers can better determine what improvements to make.

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PROGRAM PROCESS

Participation in the Large C&I Energy Solutions Program involves the following basic phases:

• Submit a Letter of Intent (LOI) indicating the intent to follow the program rules, submit a project application, and complete the projects in that program year by the program deadline as well as recognize the program energy solutions consulting and facility assessment resources available.
• Discuss customer needs with the Program Administrator to determine what, if any, energy solutions assistance is needed to identify energy efficiency projects, submit the project application and complete the project by the program deadline in that program year.
• Submit project application by any applicable program deadlines.
• Be notified by the Program Administrator if your project has been approved.
• Determine if the program has been fully subscribed, if the project is not approved; and, if not, submit project applications by the next applicable program deadline.
• Schedule a pre-inspection with the Program Administrator.
• Complete the submitted project.
• Provide a project completion worksheet
• Schedule a post-inspection of the project.
• Receive payment for eligible incentives no later than December 31 of the year the project is completed and verified.

PROGRAM PROCESS DIAGRAM

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PROGRAM ENROLLMENT

To enroll in the program, the customer must submit a Letter of Intent (LOI). The LOI indicates the customer will follow the program rules, intends to submit a project application and complete the projects by the program deadlines in that program year, and recognizes there are program energy solutions consulting and facility assessment resources available. A sample LOI template is included in the Appendix.

In the LOI, the customer will accept the program rules and commit to exert their best efforts to participate. The letter can be in any format, however, the letter must acknowledge all program conditions provided in the sample template.

LOIs can be submitted to Entergy Arkansas at any time. All LOIs received by January 19, 2011 will have equal access to all program support. After January 19, 2011 Entergy Arkansas will continue accepting LOIs until all funds are reserved or until the end of the program year, whichever is earlier.

• Submittal of an LOI will be via e-mail by the application date, with a hard copy follow up with signature in the mail.

• LOIs will be considered on a first-come, first-served basis for program consultative energy solution resources.

E-mail Address for LOI:
LargeSolutionsEAI@clearesult.com

Mail address for the LOI:

Program Administrator – EAI Quick Start Programs
Large C&I Solutions Program
8500 W. Markham St. Suite 317
Little Rock, AR 72205

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NEXT STEPS

PROGRAM CONTACT FOLLOW-UP TO THE LETTER OF INTENT

Upon submission of the Letter of Intent, the Program Administrator will contact the customer to discuss project identification and energy solution consultation needs as described in detail in the “Project Requirements” section.

IDENTIFY PROJECTS

Once customers identify potential projects, they will be required to complete and submit a Project Application to get pre-approval for the incentive. Entergy Arkansas will provide the application form. Project Application approval is required before a reservation on incentive money is finalized.

The program provides calculation tools and data forms to assist customers in identifying projects. The tools and forms are included below and may be used in determining and creating information for the Project Application:

PROJECT APPLICATIONS

The Program Administrator will begin accepting Project Applications at any time and will continue accepting Project Applications until close of business, 5:00 p.m. central time, on February 28, 2011. After February 28th, Project Applications are accepted on a rolling basis until program incentives are fully subscribed.

Submittal of Project Applications will be via e-mail by 5:00 p.m. central time, with a hard copy follow up with a signature in the mail.

E-mail Address: LargeSolutionsEAI@clearesult.com

• Project applications will be held in queue until 5:00 p.m. central time February 28, 2011.
• The Program Administrator will date-stamp and log all program materials as they are received. Faxed submittals are not acceptable.
• A hard copy of the Project Application and a signed Project Application must be postmarked and sent to the Program Administrator within 10 working days of the e-mail submission, addressed to:

Program Administrator – EAI Quick Start Programs
Large C&I Solutions Program
8500 W. Markham St. Suite 317
Little Rock, AR 72205

• It is the sole responsibility of the customer to ensure the Program Administrator receives applicable program materials at the designated address by the time indicated on the applicable due date. Customers should retain proof of delivery (such as return receipt for certified, registered or overnight mail) for all program materials submitted.

Project Application Review

The Program Administrator will review each Project Application for approval. The Program Administrator may request clarification of, or additional information about, any item submitted as part of the application.

• Customers will have five days to respond to such requests.
• If the clarification or additional information provided is not sufficiently responsive, the Program Administrator may, at his sole discretion, request additional information or discontinue his evaluation of the submittal.

Non-approval of a Project Application (PA)

The Program Administrator may not approve the PA if:

• The PA is incomplete;
• The PA is received after all funding has been reserved;
• The customer fails to meet program eligibility requirements
• The customer fails to submit the required supporting documentation;
• The customer is found to have made material misrepresentations in the PA;
• The customer fails to comply with applicable federal, state and local laws and regulations; and
• Changes occur in laws or regulations directly affecting the Large C&I Energy Solutions Program.

Under-subscription

If the program receives approved Project Applications for program funds where the total incentives requested are less than the funds remaining, then the program is under-subscribed; and all properly completed project applications will receive funding.

Additional application rounds and/or rolling applications will be added if necessary to fulfill the program objectives and utilize the full incentive budget; however, additional rounds are not guaranteed – if round one applications fully subscribe the incentive budget, no more applications will be accepted unless additional incentive funds for customers become available.

Over-subscription

If the program receives approved Project Applications for program funds where the total incentives requested are greater than the funds remaining in the program, then the program is over-subscribed and scoring criteria will be applied to the projects to determine which projects receive incentive funds.

Project Applications will be scored to determine which applications will be approved and which will be denied. The scoring criteria described below will be applied to rank the projects. Approvals will be awarded for the highest-ranking projects down to the lower ranking projects until the incentive budget is exhausted. In this case, no additional rounds of applications will be announced. All applicants will be notified of the approval or denial. Any customer submitting an unsuccessful Project Application may wish to reapply for project funding if funds become available or in the next program year.

Scoring Criteria Process

In the event of over-subscription as described above, all applications will be scored and then ranked using the following criteria:

1. Certainty that project will be completed before October 31, current program year
2. Degree to which the project peak demand savings can be verified
3. Requested incentive value ($/kW) if different from the maximum value ($159/kW)
4. Variability and predictability of kW savings
5. Permanence and life cycle of the installations
6. Expected date of project completion
7. Amount of energy load reduction (kW)
8. Inclusion of any energy education for employees or the community
9. Likelihood of this project resulting in similar project

After all applications are scored and ranked, if the two lowest ranked projects matching the available incentive funds receive the same score, the project with the earliest application date will be approved (i.e., application date is a tie-breaker). 

PRE-INSPECTION OF PROJECTS

After the customer submits the Project Application but before the customer begins any installation work, the Program Administrator will conduct a site pre-inspection.

PROJECT COMPLETION DATE

Project Applications are approved under the condition that project installations will be completed by October 31 in the program year of the submitted project application. Project installations not completed by October 31 of the program year of the submitted Project Application risk forfeiting, at the sole discretion of the Program Administrator, the incentive funds that have been reserved for that project.

VERIFICATION NOTICE

By no later than July 31 of the program year, customers with approved Project Applications must verify, in writing to the Program Administrator, that they will complete their project installations by October 31 in the current funding year. Customers that fail to meet this notice requirement risk forfeiting, at the sole discretion of the Program Administrator, the incentive funds that have been reserved for that project.

PROJECT COMPLETION NOTICE

After the work on the approved project is complete, customers will send a Project Completion Notice that will include a worksheet from the Project Application with any updates from the work proposed in the Project Application to the work performed.

• Electronic copies of the Excel® worksheets may be e-mailed to:

LargeSolutionsEAI@clearesult.com

• A complete hard copy, along with supplemental materials and signatures, should be sent to the following address:

Program Administrator – EAI Quick Start Programs
Large C&I Solutions Program
8500 W. Markham St. Suite 317
Little Rock, AR 72205

POST-INSPECTION OF PROJECTS

After the Project Completion Notice is submitted, the Program Administrator will conduct a site post-inspection. A post-inspection is necessary for the customer to be eligible to receive incentive funds from the program.

APPLICATION CONFIDENTIALITY

Entergy Arkansas’ Large C&I Energy Solutions Program is subject to oversight by the Arkansas Public Service Commission, which may request a copy of any Large C&I Energy Solutions materials Entergy Arkansas receives. Sensitive company and project information submitted by the customer to Entergy Arkansas, such as financial statements and project costs, will be treated confidentially to the fullest extent possible and will not be provided directly to outside parties other than the APSC. Entergy Arkansas will have no liability to any customer or other party as a result of public disclosure of any submittals.

FALSE, MISLEADING OR INCORRECT INFORMATION

Entergy Arkansas reserves the right to discontinue its evaluation of all submittals from any customer who submits false, misleading, or incorrect information. If an evaluation is discontinued under these circumstances, Entergy Arkansas will return all of the customer's submittals.

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FAQs

1. What is the Large C&I Energy Solutions Program?
   The program is an Entergy Arkansas energy efficiency program designed to assist larger customers by providing them with access to technical knowledge, energy assessments, and financial incentives to improve the efficiency of their buildings.
2. Who is eligible for the Large C&I Energy Solutions Program?
   The Large C&I Energy Solutions Program is offered to all Entergy Arkansas retail electric customers with a peak demand project of 20 kW or greater.A customer is defined by a single Tax ID number. Organizations with multiple locations are thereby considered a single customer, regardless of how many Entergy Arkansas account numbers they may have.
3. How does a customer enroll to participate in the program?
   When an eligible customer decides to participate in the program, they will send a Letter of Intent (LOI) to the program. In the LOI, the customer notifies the program of its intention to participate as well as its understanding of the rules, benefits and requirements of the program. A sample LOI will be provided which customers may replicate if they choose.
4. What are the next steps after enrollment in the program?
   After submitting the Letter of Intent, the steps to completion include:

• Program Administrator and Customer discuss customer needs to determine what, if any, energy solutions assistance is needed to identify energy efficiency projects, submit the project application, and complete the project by the program deadline in that program year.
• Customers submit project applications by the application deadline
• Program Administrator notifies Customers whether or not their project has been approved
• If the customer’s project is not approved, and if the program has not been fully subscribed, the Customer may re-submit a project application for review and consideration.
• The Program Administrator will schedule and conduct a pre-inspection the project
• Customers complete the submitted project.
• Customers submit a Project Completion Notice.
• The Program Administrator will schedule and conduct a post-inspection of the project.
• Customers receive payment for eligible incentive no later than December 31 of the year the project is completed and verified.

5. What is an energy assessment?
   An energy assessment is an evaluation of technologies affecting the energy performance of a facility and/or operation. An assessment identifies energy efficiency projects for which the customer may submit an application to the program. The purpose of the program is to help and encourage customers to reduce energy use by making changes in their facilities, not simply to provide assessment and customer education. Customers may also choose from several other options to complete assessments including using previously completed audits, internal staff, or external consultants.
6. Which customers receive technical assistance and assessments?
   All program-eligible customers may receive assistance until program funds are committed. If program subscription for program support exceeds the program’s capacity and funding, customers will be encouraged to request assistance in the next program year. The marketing and outreach will be limited to avoid customer over-subscription to the services offered and stay within program-approved budgets.
7. What does the program cost?
   Customers pay nothing for the program services. Entergy Arkansas provides all the support and incentives for the program. The financial investment any customer makes is for the energy efficiency measures they install in their own facilities.
8. Who decides what energy efficiency technologies to install and who installs them?
   The participants decide what energy efficiency measures to implement and how they are implemented. The program offers only improved access to assistance for evaluating their facilities, operations, and cash incentives. For energy efficiency upgrades, the program does not provide any installation of energy efficiency measures.
9. What are the incentives?
   The default incentives for eligible energy efficiency measures are based on $159/kW for demand reductions. The kW reductions are based on “deemed savings” that have been submitted to the Arkansas Public Service Commission.
10. How are incentives paid?
    Eligible incentives are paid by check directly to the customer after the project is completed and verified (inspected if necessary) no later than December 31 of the year the project is completed and verified.

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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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APPENDIX

SAMPLE Letter of Intent [USE ORGANIZATION LETTERHEAD]

To: Program Administrator – Entergy Arkansas Large C&I Solutions Program

From: [NAME] [CUSTOMER] [ADDRESS]
Date: [INSERT DATE]

Subject: Letter of Intent to participate in the Entergy Arkansas Large Commercial and Industrial Energy Solutions Program

This Letter of Intent is to declare that [CUSTOMER NAME] (Customer) will participate in the Entergy Arkansas’s Large Commercial and Industrial Energy Solutions Program, and the undersigned has operational and financial authority to commit [CUSTOMER NAME] to this participation.

We have reviewed the program manual, and accept its benefits and requirements, including items summarized below:

1. This letter is the sole required communication between [CUSTOMER NAME] and Entergy Arkansas to be included in the program.
2. This is a voluntary program, and we are not required to take any specific action; however, by signing this Letter of Intent, we state our intention to work with the Program to quickly identify and improve the energy efficiency of our facilities and operations. Towards that end, we have completed the Letter of Intent Worksheet to help plan our participation.
3. We will perform energy assessments of our facilities, by a qualified person and at our discretion, to identify opportunities to improve the energy efficiency and performance of our buildings or operations and thereby reduce energy use. We may use any means we choose to conduct assessments and understand the program can provide assistance at our request. – Entergy Arkansas does not endorse or require the use of any specific assessment provider and is not responsible for the quality of such. We may also use assessments that were completed prior to the date of this letter.
4. If we determine from our assessments to proceed with the installation of energy improvement measures, we may apply for cash incentives from the program. We understand we must apply for the incentive and receive approval from the program before we install the measures in order to receive the incentives. Failure to receive project approval will disqualify us from receiving the incentives for that project. We may complete the project without any communication or approval from the program if we do not want to receive the incentives.
5. Project LOIs and Applications must be received by the program by the deadline date to be eligible for potential incentives.
6. For the facilities and projects applied for in this Program, we will submit these projects for other energy efficiency programs offered by {UTILITY} within the same calendar year.
7. We understand the assistance and incentive funds for this program are not limitless, and availability of assistance and incentives is provided to Entergy Arkansas Large Commercial and Industrial Customers only, and are provided on a first-come-first-serve basis for qualifying customers and projects per the program rules. We further agree that if the program is oversubscribed before the deadline, applications will be approved based on the date of receipt and the information provided in the application. We understand and agree decisions regarding approval of incentives are determined solely by the Large Commercial and Industrial Energy Solutions Program and are final.
8. We understand that the intent of the program is to complete energy efficiency projects, and understand that the program has a project status update requirement and a project installation deadline. After receiving project incentive approval and reserved funding for our project, we understand that if we do not meet the requirements, then, at the sole discretion of the program administrator, there is the risk that the incentives reserved for our project can be reallocated to other projects that will be completed. We understand that the program will work with us to overcome barriers to complete approved projects, as it is the program’s intent for customers to complete energy efficiency projects.
9. After approval and pre-inspection, we may proceed to install the efficiency measures utilizing any means or provider we choose. We understand and agree (UTILITY) and its implementation contractor, CLEAResult Consulting, Inc., will not sell, provide or warrant any materials or installations services for the project.
10. After installation is complete, a post-construction inspection or other verifying information is required, and we will cooperate with the program administrator to provide for this.
11. Following project completion and verification, the program will issue a check to us for the cash incentive. The amount of the incentive is determined by the verified, qualifying measures completed, the resulting energy savings offered by the program.
12. We may terminate this Letter of Intent at any time without penalty.

We agree to exert our best efforts to utilize the benefits of the Large Commercial and Industrial Energy Solutions Program and to coordinate as needed with the program administrator. Following this signature is our completed Worksheet that indicates our next steps towards participation.

Sincerely,

Authorized signature required.

LARGE C&I SOLUTIONS LETTER of INTENT PROGRAM WORKSHEET

______ EE project(s) are identified, have funding approved/secured, and am ready to submit an application

Project type: [_____Lighting] [ _____HVAC] [____ Other - Explain__________________________}

____ I request Program Assistance Reviewing my Project for additional savings / efficiencies

______ EE project(s) are identified for this year, but do not have funding secured

% probability for Funding this year_________ Likely Date for Funding Approval_________

______ Have funding approved and secured, but request assistance identifying/Reviewing EE project(s)

Facilities most concerned about/most likely opportunities_______________________________

______ Do not have projects or funding secured yet this year, but with program assistance, intend on

Performing EE project(s) this year.

______ Do not have projects or funding secured yet this year, but with program assistance, intend to get

Budget allocated next year to perform projects.

We have specific EE Project Rate of Return / Simple Payback criteria ___________

We are open to projects that demonstrate savings and other benefits (comfort, operational efficiency, etc.)____

General Comments:

_________________________________________________________________________

CUSTOMER PLANNING WORKSHEET

1. Get understanding /commitment from person within Organization w/ Operational and Financial Authority
2. Perform Assessment - Identify Opportunities
3. Secure funding
4. Compare opportunities against best energy efficiency practices for optimal savings
5. Understand cost effective options
6. Use program support to identifying funding resources / additional opportunities.
7. Apply for funding resources
8. Create Project Timeline for late summer / early fall completion or earlier – Conduct tight Project Management
   1. Get RFP together for multiple bids on projects
   2. Review bids / select Vendor
   3. Order Materials / Supplies – manage delivery process
   4. Have program conduct pre-inspection before work starts
   5. Collect and organize all project receipts/costs
   6. Have project Incentives.

* Entergy Arkansas, Inc.

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