Large Commercial & Industrial Standard Offer Program

Program Manual - January 2011

QUICK LINKS

• PROGRAM OVERVIEW
• PROGRAM ELIGIBILITY
• INCENTIVES
• PARTICIPATION REQUIREMENTS
• PROJECT REQUIREMENTS
• PROGRAM PROCESS
• PROGRAM ENROLLMENT
• NEXT STEPS
• MEASUREMENT & VERIFICATION
• FAQS
• PROGRAM CONTACTS

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PROGRAM OVERVIEW

LARGE C&I ENERGY STANDARD OFFER PROGRAM OBJECTIVES

The Large Commercial & Industrial (C&I) Energy Standard Offer Program is an energy efficiency program designed for C&I customers with a peak demand of 100 kW or greater. The program seeks to provide financial incentives for the installation of a wide range of measures that reduce peak demand loads in commercial and industrial facilities.

The program does not prescribe technologies or end uses but provides a framework through which customers can receive $230/kW incentives for installing a wide range of measures at customer facilities.

* 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 Standard Offer Program is offered to all Entergy Arkansas retail electric customers whose facility utilizes a peak demand of 100 kW or greater or who has multiple facilities with a combined maximum demand of at least 250 kW.

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 IS THE INCENTIVE PRICING?

The incentives for eligible energy efficiency measures are based on $230/kW for peak demand reductions.

INCENTIVE BASIS

Funding is available to pay incentives for qualifying energy efficiency projects in large commercial or industrial facilities.

Deemed Savings

Incentives are paid on the basis of deemed savings which are standardized savings values, or simple formulas, for a wide range of measures in representative building types.

Measured Savings

If deemed savings have not been established for a particular qualifying energy efficiency measure, then incentives are paid on the basis of verified peak demand savings using the International Performance Measurement and Verification Protocol.

FUNDING LIMITATIONS

To ensure incentives are available for multiple projects, no customer and its affiliates may receive more than 20 percent of Entergy Arkansas' program budget in any funding year. In addition, the program plans to reserve half the incentive funds for industrial customers and half the incentive funds for commercial customers. The program administrator may adjust this program condition, if necessary, to ensure the program meets the objective of fully subscribing the incentive funds.

• 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.
• 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 above limits.

Funds are reserved on a first-come, first-served basis.

HOW INCENTIVES ARE PAID

Deemed Savings - One Payment

A project that utilizes solely deemed savings to calculate peak demand savings will receive an "Installation Payment" representing 100 percent of the total estimated incentive payment after the project is installed, documented, and accepted.

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

Measured Savings - Two Payments

After the project is installed, documented and accepted, the customer will receive an "Installation Payment" representing 40 percent of the total estimated incentive payment.

For measured savings projects, Entergy Arkansas will use the following formula to calculate the amount of the Installation Payment:

Installation Payment = (estimated kW * $/kW incentive) * 40%

After all measurement and verification activities are complete, documented, and accepted, the customer will receive the "Performance Payment" based on verified savings (up to 60 percent of the total estimated incentive payment).

The Performance Payment will be based on the one-year energy savings the customer measures and documents in its Savings Report. The Performance Payment may be up to 60 percent of the total estimated incentive included in the C&I SOP Final Project Application and will be calculated as follows:

Performance Payment = (measured kW saved * $/kW incentive) - Installation Payment

NOTES

Under no circumstances will Entergy Arkansas make a total incentive payment more than 100 percent of the total estimated incentive payment specified in the C&I SOP Agreement. No customer has an unconditional entitlement to the C&I SOP incentive funds. In all cases, payment procedures and amounts specified in the C&I SOP Agreement supersede this and any other documents.

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PARTICIPATION REQUIREMENTS

The Large Commercial & Industrial Standard Offer Program (C&I SOP) 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
• Reviewing and approving or rejecting project applications
• Performing certain inspection activities
• Authorizing and issuing incentive payment

CUSTOMER

A customer:

• Must receive retail electric service from Entergy Arkansas
• Can be multiple-accounts under common ownership with an aggregated load of greater than 250 kW

• Identifying potential project opportunities
• Providing Entergy Arkansas access to project facilities both before and after project completion for inspection of the baseline and post-retrofit condition
• Completing the installation and commissioning of approved projects
• Complying with mandatory progress milestones
• Submitting implementation reports and invoices

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

• 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; or
2. 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 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 exercises common control over the customer , where "exercising common control over the customer" means having 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 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 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 Standard Offer 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 has a measure not specified below or with unusual conditions, the measure does not qualify for deemed savings; the customer may choose to follow the requirements in the “Measurement and Verification” section below.

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 Standard Offer Program to encourage electric energy efficiency projects. Accordingly, demand savings credit will be allowed for new equipment that exceeds a relevant industry minimum efficiency standard, where applicable. The equipment efficiency standards listed below shall be enforced for projects submitted to the Large C&I Standard Offer Program:

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

NOTES

If the customer pursues measures for which deemed savings values have not been approved by the APSC, then the customer generally must follow the International Performance Measurement and Verification Protocol (IPMVP). Entergy Arkansas will be the final authority on whether any particular measure is eligible for incentives.

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PROGRAM PROCESS

Participation in the C&I Standard Offer Program involves five basic phases for projects with measured savings (projects requiring M&V). The five phases include:

1. Submitting an Initial Project Application (IPA) in order for Entergy Arkansas to screen the project for measure and customer eligibility. If the IPA is accepted, Entergy Arkansas reserves funds for the customer
2. Preparing and submitting a Final Project Application (FPA)
3. Entering into a Standard Offer Program Contract with Entergy Arkansas
4. Installing the project and submit an Installation Report (IR) to receive an initial incentive payment (40 percent Installation Payment)
5. Conducting measurement and verification (M&V) activities and submit a Savings Report (SR) in order to receive the final incentive payment (~60 percent Performance Payment)

PROGRAM PROCESS DIAGRAM

INITIAL PROJECT APPLICATION

The first step in the C&I SOP process is for the customer to submit a completed Initial Project Application (IPA) for its proposed project. The IPA includes information about the customer, the schedule for the sites at which the proposed project will be installed, the estimated kW and kWh impacts, and an Initial Project Application Agreement.

Entergy Arkansas will begin accepting IPAs on an announced date and will continue accepting applications until all funds have been reserved or until the end of the program year, whichever is earlier

• Submittal of Initial Project Applications will be via e-mail, followed by a hard copy to the Program Administrator
• IPAs will be considered on a first-come, first-served basis.

The IPA process requires the customer to sign an Initial Project Application Agreement. The terms of this agreement are standard for all customers and are not negotiable. Customers are urged to review the IPA Agreement before submitting a project application. The IPA Agreement is included on the final tab of the IPA.

Initial Project Application Review

Entergy Arkansas will review each Initial Project Application (IPA) for customer and measure eligibility. Entergy Arkansas may request clarification of, or additional information about, any item submitted as part of the IPA.

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

Non-approval of an Initial Project Application

Entergy Arkansas may not approve an Initial Project Application (IPA) if:

• The IPA is incomplete
• The IPA 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 IPA
• The customer fails to comply with applicable federal, state and local laws and regulations
• Changes occur in laws or regulations directly affecting the C&I SOP

FINAL PROJECT APPLICATION

In the second step in the C&I SOP process, customers complete a Final Project Application (FPA). This application describes the proposed measures, project sites, estimated demand savings, and estimated incentive payments based on a detailed engineering study and site audit. This application includes the following information:

• Detailed information about the customer site(s)
• The existing and proposed retrofit equipment inventories, including equipment counts, equipment efficiencies, and equipment nameplate data
• Building occupancy and equipment operating schedule
• Engineering calculations estimating demand savings based on the efficiency of the proposed equipment compared to that of new, minimum-standard efficiency equipment
• For projects with measured (not deemed savings), a proposed project-specific M&V plan describing how the customer will measure and verify demand savings, the methods for calculating actual savings, and a schedule for conducting and reporting on M&V activities. In some cases, pre-installation M&V activities may be required to accurately estimate savings
• Revised work plan for project design, implementation, operation, and management including the anticipated project timeline

The Final Project Application (FPA) process requires the customer to sign an FPA Agreement. The terms of this agreement are standard for all customers and are not negotiable. Customers are urged to review the FPA Agreement before submitting an FPA. The FPA Agreement is included on the final tab of the FPA.

Final Project Application Review

As part of the Final Project Application review process, Entergy Arkansas will review the eligibility of the proposed measures, the accuracy of the savings estimates, and the comprehensiveness of the M&V plan. The Final Project Application must be submitted within 45 days of the date of the IPA acceptance for lighting only projects and within 100 days for all other projects in order to hold reserved funding. Failure to submit the FPA within the limit may result in loss of reserved funding

• Customers who do not meet the FPA deadline may re-file an Initial Project Application for the same project, subject to availability of funds or the existence of a project waiting list.
• Entergy Arkansas may request clarification of, or additional information about, any item in the application. Customers will have 10 days to respond to such requests. If the clarification or additional information is not forthcoming, Entergy Arkansas may choose to discontinue its evaluation of the application.

• Where FPA estimates are lower than those approved in the IPA, the reserved incentives will be adjusted down accordingly, and excess incentive funds will be returned to the remaining program incentive budget.
• In some cases, FPA estimates may be higher than approved in the IPA. If all incentive funds have been reserved and projects are on a waiting list, the project will be limited to the funds reserved in the IPA.

Baseline Inspection

Entergy Arkansas will conduct a baseline inspection of the project site after the C&I SOP Agreement is executed. The purpose of the inspection is to verify the baseline conditions documented in the Final Project Application. The baseline inspection requires the presence of at least one customer representative who is familiar with the project and the facility so that all parties can identify any discrepancies simultaneously. The inspection will verify the following information:

• All baseline equipment is still in place and operational

• New equipment installation or old equipment demolition has not begun

STANDARD OFFER AGREEMENT

The third step in the C&I SOP process is for the customer and Entergy Arkansas to execute a Standard Offer Agreement outlining the terms and conditions for the project. During the course of this C&I SOP, Entergy Arkansas will not entertain proposed modifications to the C&I SOP Agreement. Applicants are urged to review the C&I SOP Agreement prior to submitting a Project Application. The executed C&I SOP Agreement must be returned to Entergy Arkansas within 15 days.

VERIFICATION PERIOD

By no later than July 31, 2011, customers must verify, in writing, that they will meet their commitment to complete their projects by the end of the implementation period.

IMPLEMENTATION PERIOD

The fourth step in the C&I SOP process is the Implementation Period during which the customer installs the energy efficiency measures at the customer's site. Installation must be completed by October 31 in the current funding year. That is, projects receiving incentives from the 2011 budget must be installed by October 31, 2011.

Installation Report

Customers must submit an Installation Report (IR) within 30 days of completing installation. The Installation Report updates any information proposed in the Final Project Application that has been finalized after completion of the project. The IR typically includes the following information:

• The demolished and actual installed retrofit equipment inventories including equipment counts, equipment efficiencies, and equipment nameplate data
• Updates to building occupancy and equipment operating schedules
• Updated engineering calculations estimating demand savings based on the efficiency of the actual installed equipment compared to that of new, minimum-standard efficiency equipment
• A final project-specific M&V plan describing how the customer will measure and verify demand savings, the methods for calculating actual savings and a schedule for conducting and reporting on M&V activities

Post-Installation Inspection

Entergy Arkansas will contact the customer to arrange a post-installation inspection of the project site after receipt of a complete Installation Report. The post-installation inspection requires the presence of at least one customer representative who is familiar with the project and the facility. The inspection shall verify that:

• The equipment specified in the Installation Report has been installed
• The M&V plan (if not using deemed savings) is being followed in accordance with the approved Final Project Application

Along with the Installation Report, customers should submit an invoice in order to receive the installation payment. Entergy Arkansas' Installation Report review cycle, including a post-installation site inspection and invoice payment, is 30 days.

PERFORMANCE PERIOD

The fifth and final step in the C&I SOP process for projects with measured savings is called the performance period. (A project that only utilizes deemed savings to calculate demand savings will receive an "Installation Payment" that represents 100 percent of the total estimated incentive payment after the project is installed, documented, and accepted). During the performance period, the actual demand savings resulting from the energy efficiency project are quantified through measurement and verification (M&V) activities.

Savings Report

The time required to complete M&V activities will range from less than a month up to 12 months, depending on the approach chosen. Within 30 days of the completion of all M&V activities, the customer submits a Savings Report (SR) documenting the project's measured and verified demand savings.

Performance Payment

In conjunction with the SR, the customer should submit an invoice for the final incentive payment - the Performance Payment. This payment is based on the project's verified savings minus the amount paid in the Installation Payment. The total incentive payment (installation payment plus performance payment) cannot exceed the incentive payment listed in the Final Project Application. Entergy Arkansas' Savings Report review cycle, including invoice payment, is 30 days.

NOTES

If any of the baseline equipment at a project site has been removed prior to the execution of the C&I SOP Agreement, or if any of the proposed energy-efficient measures have been installed prior to the execution of the C&I SOP Agreement, the project or the affected portions thereof will be disallowed.

Entergy Arkansas will not reimburse any customer for any costs incurred by participating in the C&I SOP including costs of preparing the Initial Project Application and/or Final Project Application, reviewing or executing the C&I SOP Agreement, or preparing and submitting Installation or Savings Reports.

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PROGRAM ENROLLMENT

All submissions for Entergy Arkansas' Large Commercial and Industrial Standard Offer Program (C&I SOP) must be completed and submitted via e-mail no earlier than 12:00 p.m. NOON, central time, on Monday, January 31, 2011. Entergy Arkansas will date-stamp and log all program materials as they are received. Faxed submittals are not acceptable.  Submissions received prior to 12:00 p.m. NOON, central time, on Monday, January 31, 2011 will not be eligible for the program.

After January 31, 2011, program funds are available on a first-come, first-served basis until all funds are reserved per the program rules.

CLICK HERE to download an Initial Project Application.

E-mail Address to submit the Initial Project Application on or after 12:00 Noon, central time, 1/31/11 is:

LargeSOPEAI@clearesult.com

A hard copy of the Initial Project Application with the signed Initial Project Application Agreement must be received by Entergy Arkansas within 10 working days of the e-mail submission, addressed to:

Program Administrator – EAI Quick Start Programs

Large C&I SOP
8500 Markham St. Suite 303
North Little Rock, AR 72205

Checklist (IPA Checklist)

A short list of all the items required in an Initial Project Application along with instructions for sending. Use this form as a cover sheet for the Initial Project Application.

Project Profile (IPA.1, IPA.2)

Project-wide information including a project summary and project savings estimates. This profile consists of multiple Excel® worksheets and all worksheets are required in the Initial Project Application.

IPA Agreement

A list of terms and conditions required as part of the Initial Project Application.

It is the sole responsibility of the customer to ensure that Entergy Arkansas receives applicable program materials at the designated address by close of business 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.

APPLICATION CONFIDENTIALITY

Entergy Arkansas' C&I SOP is subject to oversight by the Arkansas Public Service Commission, which may request a copy of any C&I SOP materials that 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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NEXT STEPS

After the customer's Initial Project Application has been approved, the customer moves on to the next steps; which include:

• Final Project Application
• C&I SOP Agreement
• Installation Report
• Savings Report

FINAL PROJECT APPLICATION
The Final Project Application is comprised of Microsoft® Excel® worksheets. Completion instructions are included on the forms. Please submit your Final Project Application in both electronic and hard copy formats.

CLICK HERE to download a Final Project Application

A hard copy of the Final Project Application with the signed Final Project Application Agreement must be received by Entergy Arkansas within 10 working days of the e-mail submission, addressed to:

Program Administrator – EAI Quick Start Programs
Large C&I SOP
8500 W. Markham St. Suite 303
Little Rock, AR 72205

Checklist (FPA Checklist)

The FPA Checklist is a short list of all the items required in a Final Project Application along with instructions for sending. Use this form as a cover sheet for the Final Project Application.

Project Profile (FPA.1, FPA.2, FPA.3)

The Project Profile should contain project-wide information including a project summary, project savings amounts and calculations, and a measurement and verification plan. This profile consists of multiple Excel® worksheets; and all worksheets are required in a Final Project Application in addition to any applicable attachments.

Site-Profiles (FPA.4)

The Site-Profile is a single Excel® worksheet containing customer and site information.

FPA Agreement

The FPA Agreement is a list of terms and conditions required as part of the Final Project Application.

Calculation Tools and Data Forms (FPA.5, FPA.6, FPA.7, FPA.8, FPA.9)

Tools for Project Measures with Deemed Savings:

The calculator for Deemed Savings is included in the application forms.

C&I SOP AGREEMENT

The standard contract is executed following Entergy Arkansas' approval of the customer's Final Project Application. The terms and conditions are the same for every customer. Entergy Arkansas will not entertain any proposed modifications to the C&I SOP Agreement.

Click here to download the C&I SOP Agreement. The Entergy Arkansas C&I SOP Program Administrator will originate the C&I SOP Agreement with specific incentive and kW amounts expected from the project. Customers must return the signed agreement within 15 days to:

Program Administrator
Large C&I SOP
8500 W. Markham St. Suite 303
Little Rock, AR 72205

INSTALLATION REPORT

Within 30 days of the completion of installation of a project's energy efficiency measures, the customer must submit an Installation Report, which documents the measures that have actually been installed and which describes any changes to the project since the approval of the Final Project Application. The form of the Installation Report is similar to that of the Final Project Application but is intended to reflect actual measure installations and not anticipated ones. Not all of the Microsoft® Excel® worksheets that make up the Installation Report are required. Please read the descriptions and notes to learn which ones are mandatory and which are not. Further, customers need only fill in those sections of the forms that contain project and site information that differ from what was submitted on those same sections in the Final Project Application. Please also note that signatures and attachments are required in the Installation Report. Customers provide these with the hard copy submittal. Please submit your Installation Report in both electronic and hard copy formats.

CLICK HERE to download the Installation Report

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

LargeSOPEAI@clearesult.com

Send a complete hard copy along with supplemental materials and signatures, to:

Program Administrator
Large C&I SOP
8500 W. Markham St. Suite 303
Little Rock, AR 72205

Checklist (IR Checklist)

The IR Checklist is a short list of all the items required in an Installation Report along with instructions for sending. Use this form, which is a single Excel® worksheet, as a cover sheet for the Installation Report.

Project Profile (IR.1, IR.2, IR.3)

The Project Profile contains project-wide information that includes a project summary, project savings amounts, and calculations and a measurement and verification plan. These are multiple Excel® worksheets; all worksheets are required in an Installation Report in addition to any applicable attachments.

Site-Profiles (IR.4, IR.5)

Site-Profiles contain site-specific customer and site information. Note a customer-signed installation affidavit is required as an attachment to this section.

Equipment Surveys

Updated equipment survey forms must be completed if the actual equipment installed differs from the equipment listed in the approved Final Project Application. Use the equipment survey forms in the Final Project Application and, if this information has not changed, the customer should refer to the Final Project Application.

SAVINGS REPORT

The Savings Report documents the results of a project's measurement and verification activities and, once approved by Entergy Arkansas, forms the basis for the customer's final incentive payment. A customer's Savings Report is due within 30 days following the close of its project's Performance Period. THE SAVINGS REPORT ONLY APPLIES TO M&V PROJECTS

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MEASUREMENT & VERIFICATION

The purpose of measurement and verification (M&V) is to establish the potential of a project's measures to lower peak demand and to determine the actual savings produced by those measures.

Entergy Arkansas has designed the Large C&I Standard Offer Program to encourage electric energy efficiency projects. Accordingly, demand savings credit will be allowed for new equipment that exceeds a relevant industry minimum efficiency standard, where applicable. The equipment efficiency standards listed below shall be enforced for projects submitted to the Large C&I Standard Offer Program:

In the Large Commercial & Industrial Standard Offer Program (C&I SOP), customers are responsible for planning and conducting any M&V activities necessary for their projects. Entergy Arkansas offers three M&V approaches for customers to use when developing their M&V activities:

• Deemed Savings
• Simplified M&V
• Full M&V

The deemed savings approach can be applied specifically to the measures shown in the section below as long as 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.). A customer may choose to use the deemed savings approach if applicable. No short-term testing or long-term metering is required.

A customer may also choose to use site-specific data and either the simplified or full M&V approach, as applicable, depending on the variability of the building loads. The guidelines for simplified and full approaches adhere to the standards of the 1997 International Performance Measurement and Verification Protocol (IPMVP). Customers may also recommend an M&V approach not covered in these guidelines; however, any alternate approach must be approved by Entergy Arkansas and adhere to IPMVP standards. For projects using the simplified or full approach, customers are required to submit, as part of the Final Project Application, an M&V plan that describes the specific activities.

The IPMVP web site is www.ipmvp.org .

DEEMED SAVINGS APPROACH MEASURES

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

SIMPLIFIED M&V

The simplified M&V approach uses stipulated values for data such as operating hours and equipment efficiencies, thereby reducing the need for certain types of field monitoring. They have been developed for common measures, which must meet certain criteria for the simplified approach to be applicable.

Full M&V

The Full M&V approach uses a higher level of rigor than the simplified M&V approach; it involves the application of end-use metering, billing regression analysis, or computer simulation. Customers must use a full M&V approach for measures that do not meet the criteria for a simplified M&V approach. Entergy Arkansas has developed general guidelines for the full M&V approaches, and customers will need to adapt them to their specific projects.

To view the Simplified and the Full M&V guidelines, click here.

Site Inspections

Over the course of a project, Entergy Arkansas conducts two site inspections. A baseline inspection is performed before the Standard Offer Program Contract is executed, and a post-installation inspection is performed following the customer's submission of the Installation Report.

Baseline Inspection

Entergy Arkansas will contact the customer and complete the pre-inspection within 10 days of the execution of the Standard Offer Program Contract. The purpose of this inspection is to verify the following:

• The accuracy of the equipment survey

• Lighting: total error of installed demand in the sample taken must be within ± 5 percent of the total demand submitted

• Other measures: accuracy of equipment quantity and nameplate information

• The M&V plan (if applicable) is appropriate for the measure and the necessary M&V activities are being performed

• All existing equipment listed in the Final Project Application is still in place and operational

• New equipment installation or preparation for installation has not begun

Post-installation Inspection

This inspection, conducted by Entergy Arkansas within 30 days of its receipt of a complete Installation Report, verifies the following:

• The equipment specified in the standard offer program contract has been installed and is operating as described in the approved Final Project Application

• Lighting: total error of the installed demand of the sample must be within ± 5 percent of the total demand submitted

• Other measures: accuracy of the equipment quantity and nameplate information is verified

• The M&V plan (if applicable) is being followed in accordance with the approved Final Project Application

For both inspections, the presence of at least one representative of the customer familiar with the project and with the facility is required. When electrical measurements are necessary, the representative is required to perform any necessary disruptions in equipment operation, the opening of any electrical connection boxes or the connection of current and power transducers.

If an inspection cannot be completed in a timely manner because the representative is unfamiliar with the facility or project, the project will fail the inspection. A project has two chances to pass each inspection type; after failing two inspections, the customer must pay the cost incurred by Entergy Arkansas for performing additional inspections of that type.

M&V Plan Requirements

The M&V plan describes the potential for the project to achieve peak demand savings and describes the specific activities the customer intends to perform to determine those savings. In general, a project-specific M&V plan should:*

• Describe the project site and the project including information on how the project reduces peak demand and what key variables affect the realization of savings

• Describe the M&V approach to be used

• Indicate who will conduct the M&V activities and prepare the M&V analyses and documentation

• Define the details of how calculations will be made and indicate how collected survey and metering/monitoring data will be used listing all analysis tools, such as DOE-2 computer simulations, and showing all equations

• Specify what metering equipment will be used, who will provide the equipment, and its accuracy and calibration procedures including

• A metering schedule describing metering duration, when it will occur, and how data from the metering will be validated and reported.

• Data formats: electronic, formatted data read directly from a meter or data logger is recommended for any short- or long-term metering

• Define what key assumptions will be made about significant variables or unknowns and describe any stipulations that will be made and the source of data for the stipulations

• Define how any baseline adjustments will be made

• Describe any sampling that will be used, why it is included, sample sizes, documentation on how sample sizes were selected, and information on how random sample points will be selected

• Indicate how quality assurance will be maintained and replication confirmed

• Work with Entergy Arkansas to develop an M&V plan that is appropriate for all projects

*1997 International Performance Measurement and Verification Protocol (IPMVP).

When preparing the Final Project Application, a customer is required to document each fixture or piece of equipment that is part of a retrofit. Equipment with similar functional uses may be grouped together for M&V purposes. Once the equipment has been grouped, a sample of each group's equipment may be monitored and the results may be used to estimate the operating hours for all fixtures or equipment within that group.

The table below shows how large the sample size must be to provide a reliable estimate for varying sizes of groups. The initial sample sizes represent 80 percent confidence/20 percent precision and have a coefficient of variation of 0.5; the suggested sample sizes have been increased by 10 percent to compensate for equipment failure or loss.

The customer may propose an alternative approach to determining sampling sizes, but it must be approved by Entergy Arkansas and be based on sound statistical principles.

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FAQs

1. What is the Large C&I Standard Offer Program?
   The program is an Entergy Arkansas energy efficiency program designed to provide incentives for the installation of a wide range of measures that reduce peak demand loads in commercial and industrial facilities.

2. Who is eligible for the Large C&I Standard Offer Program?
   The Large C&I Standard Offer Program is offered to all Entergy Arkansas (Entergy Arkansas) retail electric customers that have a peak demand 100 kW or greater or at multiple facilities with a combined maximum peak demand of at least 250 kW. 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 participate in the program?
   Participating customers submit an Initial Project Application to reserve incentive funds. Upon approval of the Initial Project Application, a Final Project Application is submitted, and if approved, customers enter into an agreement to complete the energy efficiency projects. Projects go through a pre- and post-installation inspection process that approves the energy efficiency work and allows for incentive payments

4. What is the maximum amount of incentive funding one customer can reserve?
   No customer may reserve more than 20 percent of the total SOP Program funding.

5. What are the next steps after the Initial Project Application?
   After the customer's Initial Project Application has been approved, the customer moves on to the next steps.
   

   • Final Project Application
   • C&I SOP Agreement
   • Installation Report
   • Savings Report

6. What is a project?
   A project is the set of proposed or installed energy efficiency measures or other improvements necessary to produce energy savings under the program contained in one program application. One project may contain energy efficiency measures at more than one customer site, as long as the customers and sites represented in each project are similar. For example, installation of energy efficiency measures at a chain of grocery stores would include more than one customer but could constitute only one project. If customers or sites are dissimilar, however, a separate application is necessary for each customer or site.

7. How does Entergy Arkansas decide which projects to fund?
   Entergy Arkansas reviews the Initial Project Applications for customer and measure eligibility. Funds are reserved on a first-come, first-served basis until they are fully allocated

8. What is the Incentive? How os each project's Incentive calculated?
   The incentive is $230/kW. Example: A project that reduces summertime peak demand by 50 kW. The incentive for this project would be 50 kW x $230 = $11,500.

9. When are Incentive payments made?
   A project that only utilizes deemed savings to calculate peak demand savings will receive an "Installation Payment" that represents 100 percent of the total estimated incentive payment after the project is installed, documented and accepted. For projects using measured savings (with M&V), a customer's incentive payment is made in two parts. The first is within 45 days of Entergy Arkansas' receipt of the Installation Report (IR) and a successful post-installation inspection. At this time, 40 percent of the expected incentive payment estimated on the IR is paid. The second incentive payment is made after measurement and verification (M&V) activities are complete, including submission of a Savings Report (SR). The M&V process may take as little as 90 days or as long as 12 months, depending on the energy efficiency measures involved in the individual projects. The second payment is for the balance of program incentives owed to the customer, based on the level of energy savings actually achieved by the project (up to 60 percent of the contracted amount).

10. What is the minimum amount of demand a project must save?
    Each project must be expected to save at least 20 kW on-peak from May through September, 11 a.m. to 9 p.m., weekdays, excluding holidays

11. When can projects be combined or aggregated into a single application?
    Different project sites may be combined into one Initial Project Application (IPA) if the sites have identical proposed energy efficiency measures, similar functions and similar operating conditions. For example, several sites of a chain of hardware stores could qualify as one project. Dissimilar sites (i.e., those that receive different energy efficiency measures or have different operating characteristics) may not be combined into a single project.

12. What types of energy efficiency measures are eligible for incentives?
    The program is designed to allow a wide range of energy efficiency measures and technologies to receive funding after proper measure and verification. Certain types of measures are excluded from receiving funding under this program

13. How are actual energy savings determined?
    Actual energy savings are determined through measurement and verification (M&V). For the C&I Program, three levels of M&V rigor are used to estimate the amount of energy savings achieved by the programs:

    • The Deemed Savings approach uses stipulated savings data for a particular energy efficiency measure taken from past DSM programs or other industry data; no short-term testing or long-term metering is required.
    • Simple M&V involves short-term testing or simple long-term metering but relies chiefly on manufacturer's efficiency data and pre-set savings calculation formulas to determine savings; and
    • Full M&V refers to any M&V activities that represent a higher level of detail than the simple M&V or deemed savings approaches, including stipulated savings based on short-term information, metered savings of equipment or systems, whole building billing analysis and calibrated computer simulation.
    • The level of M&V rigor required for a particular project depends on the type of equipment being installed and its operating characteristics. For example, all energy savings for lighting lamp and ballast replacements can be determined using deemed savings. More complex project measures require more M&V.

14. Who is responsible for measurement and verification (M&V) activities?
    The customer must perform any M&V required for a project; this may involve metering equipment energy consumption, monitoring operating hours and other activities. Customers may need to develop an original M&V plan for unique or complex projects. The proposed M&V plan must be included as part of the Final Project Application (FPA). Entergy Arkansas will hire a third-party M&V contractor to facilitate and assist customers in the design and execution of M&V plans.

15. How is the baseline energy consumption determined?
    Pre-installation monitoring may be needed to measure energy savings for some types of energy efficiency measures. In addition, the actual baseline energy consumption will need to be adjusted to reflect the applicable federal or industry efficiency standards (such as ASHRAE 90.1, NEMA, ENERGY STAR®, etc.) to determine the correct incentive amount. For some types of energy efficiency measures, such as a constant speed chiller replacement, the baseline energy consumption is actually determined by a minimum efficiency standard in conjunction with some post-installation data so that no pre-installation monitoring is necessary.

16. When can a proposed project be installed?
    A project cannot be installed until the baseline equipment can be verified by Entergy Arkansas; any necessary pre-installation monitoring is completed, and a Standard Offer Program Contract between Entergy Arkansas and the customer has been executed.

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PROGRAM CONTACTS

Entergy Arkansas Program Manager

Richard Smith
Entergy Arkansas

Program Implementation Contractor

CLEAResult Consulting
ProgramAdminEAI@clearesult.com