Residential Compact Fluorescent Lighting (CFL) Quick Start Program

Program Manual - November 2007

QUICK LINKS

• PROGRAM OVERVIEW
• PROGRAM ELIGIBILITY
• INCENTIVES
• PROGRAM PROCESS
• PROGRAM ENROLLMENT
• FAQS
• PROGRAM CONTACTS

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PROGRAM OVERVIEW

“Quick Start” PROGRAMS TO REDUCE PEAK DEMAND

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 Compact Fluorescent Lighting (CFL) Program, is detailed below.

COMPACT FLUORESCENT LIGHTING (CFL) Quick Start PROGRAM OBJECTIVES

The Residential Compact Fluorescent Lighting Quick Start Program is designed to educate and influence Entergy Arkansas residential customers to purchase and use ENERGY STAR-qualified CFLs in their homes. Over the course of the Quick Start period, December 2007 – December 2009, the program plans for all Entergy Arkansas customers to receive a coupon** to be used to discount the price of ENERGY STAR-rated CFLs when purchased at participating retailers. The key program objectives are to:

• Motivate retailers and dealers to promote the energy savings and cost savings benefits of CFLs; and

• Motivate residential consumers to purchase and install CFL bulbs by educating them about CFL benefits and advantages over incandescent lighting and by providing incentives to consumers to “buy-down” the cost of CFLs.

*Entergy Arkansas, Inc.

**Througout the content of this material, coupon refers in general to “printed discount incentive”

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PROGRAM ELIGIBILITY

ENTERGY ARKANSAS CUSTOMERS

Program participation is restricted to residential electric service customers of Entergy Arkansas.

RETAILERS

Any retailer who sells ENERGY STAR-rated CFLs is eligible to participate in the Program.

NOTES

Entergy Arkansas will not directly market any energy efficiency related product or service to its customers. Entergy Arkansas makes no representation of the benefits of any particular technology or energy efficiency measure eligible for incentives under this program. The selection of an energy efficiency measure is at the discretion of the individual customer.

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INCENTIVES

The program incentive consists of:

• one coupon for $3.00 off a three or four pack of ENERGY-STAR-rated CFL bulbs, and

• one coupon for $4.00 off a five or greater pack of ENERGY-STAR-rated CFL bulbs.

Under this program, EAI plans to send each Entergy Arkansas residential customer one coupon for a three or four pack and one coupon for a five or greater pack between December 2007 and December 2009. Coupons are planned to be delivered as a tear-off to an informational utility bill-stuffer. Coupons will be redeemed at the register of participating retailers.

Entergy Arkansas may re-approach and give additional coupon incentives to customers who already received coupons to meet the program objectives, if necessary. In addition, Entergy Arkansas may change its approach to market how it provides the incentives based on how the market reacts early in the program.

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PROGRAM PROCESS

The Residential Compact Fluorescent Lighting Quick Start Program is designed to educate and influence Entergy Arkansas residential customers to purchase and use ENERGY STAR-qualified CFLs in their homes. The program process is as follows:

1. The Program Administrator recruits retailer partners to join the Program.

2. Retailer partners agree to join the program, signing an agreement with the Program Administrator to help promote CFL bulbs and to assist in measuring the success of CFL sales.

3. The Program Administrator works with the retailer partners in hosting in-store displays and provides support in hosting special events to promote CFLs.

4. The Program Administrator develops and distributes outreach processes by which incentives are to be used at retail partner stores to reduce the price of CFL bulbs. The Program Administrator also arranges for program promotion.

5. Customers use coupons to purchase three or four and five or greater packs of CFLs from participating retailers.

6. Retailers accept the coupons and grant the discounts at the register.

7. Retailers submit reimbursement for the coupons on a monthly basis to the Program Administrator.

8. The Program Administrator provides reimbursement for the coupons to the Retailer.

9. The coupons will have a toll free number on it for customer inquiries.

PROGRAM PROCESS DIAGRAM

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PROGRAM ENROLLMENT

There is no formal enrollment process for residential Entergy Arkansas customers in the CFL Program.

To become a program partner, retailers sign an agreement with the Program Administrator. The agreement details the assistance the program provides to the retailer in terms of marketing, communications and promotional support, sales tools, sales training, and incentive processing and reimbursement. By signing the agreement, the retailer partner commits to promote the program, help host in-store events, accept the coupons, grant the discount at point-of-sale, and provide product sales data corresponding with the CFL coupon.

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FAQs

1. What is the Program Timetable?

   To start the program quickly, Entergy Arkansas has partnered with the retailer Wal-Mart and manufacturer GE to provide dollar-off coupons. Entergy Arkansas is including CFL coupon bill stuffers to a limited population as part of a fall 2007 quick-to-market approach.

   From January – April 2008, which is the heart of the lighting season, Entergy Arkansas plans to send coupons to approximately half of its residential customer base for use with various retailers. In 2009, the program plans to send the coupons to the remaining residential customers.

2. Why not send coupons to all customers at once?

   In September 2007, the Arkansas Public Service Commission ordered all regulated utilities within Arkansas to offer energy saving programs to their customers. The first three years of the program are called the “Quick Start” period. The short lead time and limited nature of funds of the program do not allow for an entire market approach in one effort. Moreover, the program will need time to recruit the necessary retailer partners.

3. What regions in the territory will receive the coupons in 2008 versus 2009?

   The rate by which Arkansas consumers redeem the coupons will be monitored in each of the promotion areas. To keep program participation in balance with the program funds, markets may be added or postponed based on the response by Arkansas consumers. In general, half of residential customers will receive coupons in 2008 with the remaining residential customers receiving the coupons in 2009.

4. Who are the program retail partners?

   To start the initiative, Entergy Arkansas has partnered with manufacturer GE and retailer Wal-Mart to launch the fall 2007 effort. For the winter 2008 effort, the program will add on additional retail partners, both national and regional, and independent retailers to increase the breadth and depth of CFL promotion.

5. What else does the program include?

   In addition to coupon incentives to buy CFL products, the program will sponsor in-store promotional events and retailer staff training so retail customers are getting further education about the benefits of the CFL technology.

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PROGRAM CONTACTS

Entergy Arkansas Program Manager

Richard Smith
Entergy Arkansas

Program Implementation Contractor

CLEAResult Consulting
ProgramAdminEAI@clearesult.com