oncor - home energy efficiency standard offer program

7/30/2019 Oncor - Home Energy Efficiency Standard Offer Program

1/48

HOME ENERGYEFFICIENCYSTANDARD OFFER PROGRAM

2013 Program Manual and Contract Documents

J anuary 2013


2/48

TABLE OF CONTENTS

1 HEE: PROGRAM DESIGN ...................................................................................................................... 1 1.1 PROGRAM DESCRIPTION ................................................................................................... 1 1.2 PROGRAM PARTICIPANTS ................................................................................................. 3 1.3 PROJECT OPTIONS ............................................................................................................. 4

1.3.1 MAIN PROJECT OPTION ..................................................................................... 5 1.3.2 MULTIFAMILY PROJECT OPTION ...................................................................... 6

1.4 SERVICE PROVIDER, CUSTOMER, MEASURE, AND PROJECT ELIGIBILITY ............... 9 1.4.1 SERVICE PROVIDER ELIGIBILITY...................................................................... 9 1.4.2 HOST CUSTOMER ELIGIBILITY .......................................................................... 9 1.4.3 ENERGY EFFICIENCY MEASURE ELIGIBILITY .............................................. 10

1.4.4 DIAGNOSTIC TESTING ...................................................................................................... 12 1.4.5 CARBON MONOXIDE TEST SPECIFICATIONS ............................................... 13 1.4.6 PROJECT SIZE ................................................................................................... 14

1.5 PROGRAM INCENTIVES AND PAYMENT PROCEDURES .............................................. 14 1.5.1 DEEMED SAVINGS OPTION .............................................................................. 15

1.6 PROGRAM PROCESS AND TIMELINE ............................................................................. 15 1.6.1 PROJECT APPLICATION PROCESS ................................................................ 15 1.6.2 PRODUCTION PERIOD ...................................................................................... 16 1.6.3 ESCROW ............................................................................................................. 16 IN CASES WHERE INSTALLED MEASURES (FOR EXAMPLE: INSULATION) EXCEED

THE MAXIMUM KWH ALLOWED PER PROGRAM YEAR, BASED ON THELOAD FACTOR CAP OF THE PROGRAM, THEN THE EXCESS DOLLARSWILL BE PLACED IN ESCROW AND APPLIED TO FUTURE PRODUCTIONREPORTS UNDER THIS PROGRAM OPTION IN THIS PROGRAM YEAR IFTHE CUMULATIVE KWH IS BELOW THE MAXIMUM KWH ALLOWED ON AN

ANNUAL BASIS. ................................................................................................. 16 1.6.4 AGREEMENT TERMINATIONS ................................................................................. 17

2 HEE: PROJECT APPLICATION ........................................................................................................... 18 2.1 GENERAL PROJECT APPLICATION GUIDELINES ......................................................... 18 2.2 APPLICATION PROCESS: MAIN PROJECT OPTION ...................................................... 19

2.2.1 POTENTIAL SERVICE PROVIDER INFORMATION ......................................... 19 2.2.2 QUALIFICATIONS............................................................................................... 20

2.3 APPLICATION PROCESS: MULTIFAMILY PROJECT OPTION ....................................... 20 2.3.1 POTENTIAL SERVICE PROVIDER INFORMATION ......................................... 22 2.3.2 QUALIFICATIONS............................................................................................... 23 2.3.3 EVIDENCE OF SUFFICIENT CREDIT (DETERMINED IN ONCORS SOLE

DISCRETION). ..................................................................................................... 23 2.3.4 SECURITY DEPOSIT AND MILESTONES ......................................................... 24

2.4 PROJECT APPLICATION SUBMITTAL PROCEDURE ..................................................... 24 2.5 PROJECT APPLICATION REVIEW PROCEDURES ......................................................... 25

2.5.1 PROJECT APPLICATION EVALUATION .......................................................... 25 2.5.2 APPLICATION CONFIDENTIALITY ................................................................... 26 2.5.3 SUBMISSION OF FALSE, MISLEADING, OR INCORRECT INFORMATION .. 26 2.5.4 HEE SOP PARTICIPATION COSTS................................................................... 26 2.5.5 PARTICIPATION RESTRICTIONS AND ADDITIONAL QUALIFICATIONS ..... 26

3 HEE: PRODUCTION PERIOD ............................................................................................................... 29 3.1 PRODUCTION PERIOD ...................................................................................................... 29 3.2 REQUIRED SUBMITTALS .................................................................................................. 29

3.2.1 PROJECT PRODUCTION REPORTS ................................................................ 29 3.2.2 HOST CUSTOMER AGREEMENTS AND CUSTOMER CERTIFICATES ......... 31 3.2.3 PROJECT INVOICES .......................................................................................... 31

3.3 SUBMITTAL REVIEW PROCEDURES ............................................................................... 31


3/48

3.3.1 ADMINISTRATIVE REVIEW ............................................................................... 31 3.3.2 INSTALL ATION INSPECTIONS ......................................................................... 31 3.3.3 INCENTIVE ADJUSTMENTS .............................................................................. 32 3.3.4 DISPUTED PAYMENT PROCEDURE ................................................................ 33 3.3.5 FAILURE RATE ................................................................................................... 33

4 HEE: CONTRACTUAL PROVISIONS ................................................................................................... 34 4.1 COMPLIANCE WITH PROGRAM REQUIREMENTS ......................................................... 34 4.2 REQUIRED PROGRAM DOCUMENTS .............................................................................. 36 4.3 PROJECT IMPLEMENTATION ........................................................................................... 37 4.4 INCENTIVE PAYMENTS ..................................................................................................... 38 4.5 AUDIT AND RECORDS ....................................................................................................... 39 4.7 AMENDMENT ...................................................................................................................... 40

5 HEE PERMITS, LICENSES, AND COMPLIANCE WITH LAW ............................................................ 41

6 HEE: APPENDIX ................................................................................................................................... 44

TECHNICAL RESOURCE MANUAL (TRM)

TRM 3.1.3 HOME ENERGY EFFICIENCY STANDARD OFFER PROGRAM AGREEMENT/ADDENDUM

TRM 3.2.1 MAIN PROJECT OPTION AND MULTIFAMILY PROJECT OPTION INSURANCEREQUIREMENTS

TRM 5.1.2 APPROVED DEEMED SAVINGS MEASURES

TRM 4.2.1 INSTALLATION STANDARDS

TRM 2 GLOSSARY

TRM 3.4.1 CUSTOMER DISCLOSURE FORM

TRM 3.4.2 HOST CUSTOMER AGREEMENT AND CUSTOMER CERTIFICATE (ALLPROJECT OPTIONS)

TRM 3.4.2 HOST CUSTOMER AGREEMENT - APPLIANCE INSTALLATION REPORT

TRM 3.3.1 ACTIONS DOCUMENT FOR SERVICE PROVIDERS PARTICIPATING IN THEHOME ENERGY EFFICIENCY PROGRAM

TRM 4.2.2 INSTALLATION MEASURE GUIDELINES

TRM 4.2.3 APPROVED MEASURES INSTALLATION LIST


4/48

Chapter 1,HEE: Program Design

2013 Home Energy Efficiency Standard Offer Program 1

1 HEE: PROGRAM DESIGN

1.1 PROGRAM DESCRIPTION

Oncor is a regulated electric transmission and distribution service provider thatserves 10 million customers across Texas. Using cutting edge technology, more than3,000 employees work to safely maintain reliable electric delivery service with thelargest distribution and transmission system in Texas; made up of approximately118,000 miles of lines and more than 3 million meters across the state.

But Oncor delivers more than just electricity. Each day, Oncor helps Texans meet thechallenge of rethinking energy use for greater efficiency, cost savings and positiveenvironmental impact. For more than 100 years, weve built a reputation as a companythat cares about our communities, whether it involves supporting the environment,promoting safety or teaching school children about electricity.Oncor is owned by a limited number of investors, including a majority owner, EnergyFuture Holdings Corp. It is managed by a board of directors, which is comprised of amajority of independent directors.

Oncors 2013 Home Energy Efficiency Standard Offer Program (the HEE SOP or, theProgram) was developed by Oncor to provide an incentive to Energy EfficiencyService Providers (Service Provider(s)) to implement electric energy efficiency projectsat residential customer residences served by Oncor. The HEE SOP complies with theStandard Offer Program requirements promulgated by the Public Utility Commission of

Texas (the PUCT or the Commission) in PUCT Substantive Rule 25.181(l). ThisProgram Manual is intended to inform Service Providers of the HEE SOP requirementsand processes. Please see the Glossary in TRM 2 for definitions of capitalized termsused in this Program Manual. However, Service Providers should also review the PUCTrules related to energy efficiency programs (see PUCT Substantive Rule 25.181,available athttp://www.puc.state.tx.us/agency/rulesnlaws/subrules/electric/25.181/25.181ei.aspx ),which apply to each Service Providers participation in the Program. By participating inthe Program, each Service Provider understands and agrees that it will comply withsuch PUCT rules.

The primary objective of this HEE SOP is to achieve cost-effective reduction in energyconsumption during peak summer demand. Additionally, the Program is designed to dothe following:

Encourage private sector delivery of energy efficiency products and services. Achieve customer energy and cost savings. Significantly reduce barriers to participation by streamlining program procedures and

measurement and verification requirements. Encourage participation by a wide range of Service Providers.


5/48



Oncor is not involved in the sales or installation of energy efficiency services to itscustomers. Through the HEE SOP, Oncor purchases Peak Demand Savings andEnergy Savings from Service Providers who market, sell, and install Energy EfficiencyMeasures. One of the features of the HEE SOP is that Oncor will rely upon themarketing capabilities of Service Providers to sell Energy Efficiency Measures toOncors Residential Customers. Oncor may generally educate Service Providers andthe public about the HEE SOP but will not market any specific energy efficiency-relatedproduct or service to its customers. Entering into an agreement with Oncor toparticipate as a Service Provider in the HEE SOP does not constitute Oncorsendorsement or approval of any company, product, or service.

Oncor has designed the HEE SOP to encourage electric energy efficiencyimprovements that go above and beyond the efficiency gains typically achieved inenergy efficiency projects. Consequently, energy savings credits for such Measures willbe based only on Energy Savings that exceed current federal minimum efficiencystandards, if such standards apply. In cases where standards do not exist, and on earlyreplacement or retrofit of existing equipment, demand and energy savings credits will bebased on efficiency improvements determined by Oncor to be relative to typicalefficiencies in like circumstances (subject to other limitations as specified herein).

Service Providers participating in the HEE SOP must meet minimum eligibility criteria,comply with all HEE SOP rules and procedures, submit application forms andsupplemental documentation describing their proposed Multifamily Projects, andexecute Oncors Amended and Restated Texas Energy Efficiency Market Agreement(the Umbrella Agreement) and Program Addendum for the HEE SOP (ProgramAddendum). Oncor also requires that Service Providers comply with state and federalconsumer protection requirements.

Entrance into the Umbrella Agreement or Program Addendum (each as defined herein)

shall not guarantee any projects or funds in the HEE SOP. Service Providers who areoffered an approved agreement in the HEE SOP but have no activity can be removedfrom the Service Providers list. Also, Service Providers that had an approvedapplication in prior program years but had no activity on such applications will not beoffered a HEE SOP Program Addendum in subsequent Program Years.

References to the Technical Resource Manual (TRM) will be made throughout the HEEProgram manual. The TRM is an extension of the HEE program manual and containsprogram documents, guidelines, policies, forms and certificates, installation standards,deemed savings and Public Utility Commission of Texas petitions.


6/48



1.2 PROGRAM PARTICIPANTS

The HEE SOP involves three types of participants: the 1) Program administrator(Oncor), 2) Service Providers, and 3) energy efficiency customers (Host Customers).

Employees of Texas Transmission and/or Distribution Service Providers (TDSP)s, suchas Oncor, and their immediate family members are not eligible to participate as ServiceProviders or Subcontractors. Notwithstanding the foregoing, TDSP employees or theirimmediate family members who have previously participated in the HEE SOP asService Providers or Subcontractors will be allowed to continue to participate if they areotherwise qualified to participate.

Oncors responsibilities include:

Conducting workshops for potential Service Providers. Reviewing and approving or rejecting HEE SOP Program Addendums (Program

Addendum) to the Texas Energy Efficiency Market Agreement by and betweeneach Service Provider and Oncor (Umbrella Agreement). Reviewing and approving or rejecting all Project Applications. Performing certain inspection activities. 1 Authorizing and issuing Incentive Payments. Reporting results.

A Service Providers responsibilities include:

Submitting a complete Project Application and other required supplemental P rojectinformation. Executing a standard HEE SOP Program Addendum and Umbrella Agreement. Providing a security deposit or proof of nonprofit status, when applicable and as

required by Oncor. Conducting marketing activities to potential Host Customers. Complying with customer protection provisions required by PUCT Substantive Rule

25.181(s). Providing Residential Customers with a customer disclosure notice form approved

by Oncor and the PUCT (TRM section 3.4.1). Securing Host Customer Agreements and Customer Certificates from Host

Customers (TRM section 3.1.4).

1 Oncor reserves the right to contract with a third party to verify installations in the HEE SOP on its behalf.


7/48



Completing the installation of approved Projects by required deadlines and inaccordance with any mandatory progress milestones and HEE SOP requirements.

Submitting work schedules to Oncor prior to conducting any on-site installation of Energy Efficiency Measures, when requested.

Performing all on-site activities according to PUCT-specified regulations andprocedures and Oncor HEE SOP requirements.

Developing and submitting Project documentation in accordance with HEE SOPprocedures and deadlines.

Providing customer service to Host Customers, including the satisfactory resolutionof any Host Customer complaints.

Attending workshops and meetings as may be required by Oncor. Submitting any additional information when requested for verification of Measures.

Oncor views the preparation of the Project documentation as crucial to the success of the HEE SOP and will offer periodic workshops to acquaint potential Service Providerswith HEE SOP requirements. The Oncor Energy Efficiency Program Management Website ( www.oncoreepm.com ) will also provide key information and should be checkedregularly for any HEE SOP updates.

A Host Customers responsibilities include:

Committing to an energy efficiency Project. Entering into a Host Customer Agreement with the selected Service Provider. Providing Oncor, and any statewide measurement and verification (M&V)

contractor, access to the Project Site both before and after Project completion for

installation inspection.1.3 PROJECT OPTIONS

The HEE SOP was developed by Oncor to provide an incentive to suppliers of energyservices to implement electric energy efficiency Projects at residences of OncorsResidential Customers. In an effort to achieve our objectives and reach our savingsgoal, Oncor has designed a HEE SOP that offers multiple Project Options. This createsa greater opportunity for a variety of Service Providers to participate. This sectiondescribes the Project Options available to potential Service Providers.

There are two Project Options to choose from in the 2013 HEE SOP. A ServiceProvider may choose to participate in the Main Project Option and/or the MultifamilyOption as described below. Each Project Option will have a separate budget as well asProject specific and unique Program requirements.

So that multiple Service Providers will have a chance to participate, no one ServiceProvider together with its Affiliate(s) may receive more than the lesser of the ProjectOption cap amount disclosed below for the particular Project Option selected or fourpercent (4%) of all available HEE SOP funds in any one year. A Main Project OptionService Provider can subcontract to a Multifamily Project Option Service Provider.


8/48



By choosing a Project Option, the Service Provider indicates the size and type of theProject to be implemented. All Projects must comply with state law, including Tex. Util.Code 39.905, and PUCT rules and regulations, including PUCT Substantive Rule25.181.

Due to the requirement that Oncor achieve specified levels of kW savings for this HEESOP within each budget cycle, Oncor, in its sole discretion, may reallocate HEE SOPfunding during the Program Year in order to achieve its overall energy savings goals.

All first-time Service Providers may participate in the Main Project Option should they beapproved; however, a Service Provider must complete one (1) successful year of participation in the HEE Program prior to making application to participate in theMultifamily Project Option.

Oncor reserves the right to waive this requirement on a case-by-case basis.

1.3.1 MAIN PROJECT OPTION

There are no reserved funds or security deposits in the Main Project Option. Once aService Provider has been granted authorization to proceed, it may electronically submitmonthly Production Reports requesting incentive funds for not less than $500 perProduction Report per week and not to exceed $15,000 per Production Report perweek. Total incentive funds that a Service Provider (together with its Affiliates) mayreceive for the 2013 Program Year is the lesser of $600,000 of the Main Project Optionbudget or four percent (6%) of the overall HEE SOP budget. More detailed informationconcerning the submittal of Production Reports can be found in Chapter 3 of thisProgram Manual. Service Providers may continue submitting Production Reports forthis Project Option until November 15, 2013, or until all Project Option budget funds

have been exhausted, whichever occurs first. Hard copies of Production Reports and of Host Customer Agreements and Customer Certificates that accompany Projectsincluded in a Production Report must be submitted to Oncor such that they are receivedwithin five (5) business days following submittal of the electronic version of the relatedProduction Report. The date Oncor receives the signed, hard copy of the ProductionReport will be the effective date of receipt.

Production Reports containing Energy Efficiency Program Management (EEPM) and/orpaperwork errors will have the customer site (ESIID) and all related Measures excludedfrom the Product Report. Approved Service Providers will have the opportunity tocorrect the error(s) and submit the Project(s) on a future Production Report if funding isavailable prior to the Program ending date.

Project Sites that may be included in the Main Project Option are Single-familyDwellings, which are defined as detached single Dwelling Units or attached DwellingUnits not greater than a fourplex (four residential units in one building).

Service Providers participating in the Main Project Option will receive a specified priceper kW and kWh of savings as described in Section 1.5 titled Program Incentives andPayment Procedures. The terms of the standard offer are outlined in the HEE SOP


9/48


10/48



4. Pre-tests on each eligible floorplan should be conducted in order to addmeasures to each valid ESIID for the IA.

The approved Service Provider must create an IA with ALL the Electric Service Identifier(ESIID)s of the property for the Project Site for the project to be considered. Each IAwill be time-stamped and processed in the order submitted by the service provider. Byentering the ESIIDs they will be checked against the EEPM Duplicate database todetermine if the ESIID is eligible for the Project. There may be cases where someESIIDs are not eligible for the Project within the same multifamily complex. Themeasures planned for a project should be entered into each ESIID. EEPM will estimatethe incentives and savings for the project and the estimated funds will be blocked for theproject. Once the funds are blocked a pre-inspection will be performed on the project.Once the pre-inspection is complete the Program Manager will contact the ServiceProvider to discuss the pre-inspection results. If the pre-inspection reflects anydiscrepancies from the original submission the IA will be rejected and sent back to theService Provider to make adjustments. Service Providers can re-submit the IA aftermaking the appropriate adjustments. Once re-submitted the Program Manager willapprove the IA and funds will be reserved if available. If funds are not available to fundthe project the IA will be waitlisted in the order it was received. A hard copy of theMultifamily Addendum representing the kW, kWh and incentive amount will need to besigned by the Service Provider along with a signed copy of the Host CustomerAgreement, which must then be sent to the Program Manager for Oncor approval.Once the hard copy Multifamily Addendum is approved and signed by Oncormanagement the Program Manager will approve the Project in EEPM. Once the projectis approved by the Program Manager the project will move into the IN phase. While theproject is in the IN Open phase, the Service Provider enters all the measure details of the post installed measures [into IN Open Production Report (PR) in EEPM?].Incentives will be based on the recalculated measures the Service Provider enters intothe EEPM database. After all the installed measures are entered the Service Providerwill submit the IN to the Program Manager. The Program Manager will review and, if approved, move the PR into Post Inspection. After the inspector completes the finalinspection the results will be reviewed and approved by the Program Manager. Theapproved incentives will never exceed the approved reserved amount. In the event theincentives are less than the reserved amount for a project the remaining funds will bereleased to fund other projects or HEE Programs.

Funding Reservation(s) requests may not exceed $150,000 per IA and a total of thelesser of $300,000 of the budget of this P roject Option or three percent (3%) of the HEESOP budget. Budget Reservation requests should be as accurate as possible withoutthe submitted Production Report exceeding each Budget Reservation requested

amount.

A Service Provider may not substitute Project Sites once its Project Application hasbeen submitted. The Production Period for this Project Option is forty-five (45) daysand requires Program Manager preapproval. A Service Provider may ONLY have one(1) active Multifamily Project at anytime. Once a Multifamily Project is completed aService Provider can choose to submit another Pre-IA if funding is available, the total of all Projects is under the funding cap and there is enough time to complete the Project.


11/48



The Production Report(s) must be submitted electronically by the last day of theProduction Period. Once the Production Period for a Project is over, Service Providerswill not have access to input additional data into the Production Report for such Project.A signed, hard copy of the Production Report for the Project must be received by Oncor,along with the required support documentation, within five (5) business days followingsubmittal of the electronic version of the Production Report. The date Oncor receivesthe signed, hard copy of the Production Report will be the effective date of receipt.

Only completed Production Reports will be accepted. Incomplete documentation mayresult in the entire Production Report being returned without processing to the ServiceProvider. The Service Provider may be required to pick up its Production Report inperson from the Oncor Program Manager. Oncor considers a Production Reportcomplete when all Energy Efficiency Measures that were proposed in the approvedProject Application have been installed and all required support documentation,including Host Customer Agreements and Customer Certificates, have been submittedby the Service Provider and received by Oncor. All installations proposed in theapproved Project Application for a Project Site must be installed before submitting theProduction Report for such Project Site. Supplemental Production Reports will not beaccepted. However, Oncor will process any Energy Efficiency Measures documentedon incomplete Production Reports that are closed by Oncor on the last day of theProduction Period if Oncor receives the required supporting documentation for suchEnergy Efficiency Measures within five (5) business days after the Production Periodends.

There is no security deposit required for Projects included in an initial ProjectApplication for the Multifamily Project Option.

Oncor will pay Service Providers a specified price per kW and kWh of savings asdescribed in Section 1.5 titled Program Incentives and Payment Procedures. This

standard offer price is the same for all Service Providers in the Multifamily ProjectOption. The terms of the standard offer are outlined in the HEE SOP ProgramAddendum for each Service Provider.

The following chart summarizes the Multifamily Project Option:

Multifamily Project Option Guidelines Multifamily Dwellings only Applications accepted first-come, first-served Funding availability updates are available on the Web site 45-Day Production Period per Project ONLY one Project open at anytime per Service Provider No security deposit required for initial Project, but deposit may be required for

subsequent Projects if Service Provider does not meet certain requirements withprevious Project

Incentive Payments limited to $150,000 per IA and a total of the lesser of $300,000 of the Project Option budget or 3% cap of the HEE SOP budget(aggregated for Service Provider and its Affiliates)


12/48



1.4 SERVICE PROVIDER, CUSTOMER, MEASURE, AND PROJECTELIGIBILITY

1.4.1 SERVICE PROVIDER ELIGIBILITY

Any Service Provider meeting the HEE SOP application requirements that proposes toinstall eligible residential Energy Efficiency Measures at a customer site that receives

residential electricity distribution service from Oncor (including single-family, multifamily,and manufactured home units) is eligible to participate in the HEE SOP as a ServiceProvider. Eligible Service Providers may include: National or local energy service companies Retail electric providers National or local companies that provide energy-related services (e.g., contracting)

or products (e.g., lighting and HVAC equipment)

To ensure that the HEE SOP incentive budget is allocated to Projects that are likely tomeet with success, all Service Providers will be required to demonstrate a commitmentto fulfilling HEE SOP objectives and competency in completing the proposed Project.Service Providers will be required to submit the following information as part of theapplication process:

A description of the Service Provider firm, including relevant experience, areas of expertise, and references.

Photos with name of each employee, manager, owner, or any individual that isassociated with the application. No personal ID such as drivers licenses or SocialSecurity numbers should be sent or included.

List each name of any subcontractor and the company he represents.

Copies of up-to-date training certificates, licenses, or rater certificates should beincluded if applicable.

Evidence of good (as determined in Oncors sole discretion) credit rating. Mostcompanies provide a letter from their financial institution stating the business has anactive business account in good standing and specifying how long the account hasbeen active. (Due to privacy issues non-public financial statements should not besent with your application).

Proof of applicable insurance, licenses, and permits in the Service Providersbusiness name.

1.4.2 HOST CUSTOMER ELIGIBILITY

Residential Customers living in Single-family Dwellings and qualified MultifamilyDwellings that are served by an Oncor-owned meter are eligible to have EnergyEfficiency Measures installed at their homes as part of the HEE SOP. For individually-metered qualified multifamily properties, each Dwelling Unit is considered as a separateresidential account, and the common areas are considered as commercial accounts,depending upon their aggregate demand.


13/48



1.4.3 ENERGY EFFICIENCY MEASURE ELIGIBILITY

Energy Efficiency Measures in residential and qualified multifamily applications thatreduce electric energy consumption and system peak demand at the customer site(s)are eligible for the HEE SOP. Eligible Energy Efficiency Measures do not include repairor maintenance activities or behavioral changes. In addition, all Energy EfficiencyMeasures eligible for HEE SOP incentive funds must exceed applicable current stateand/or federal minimum efficiency standards. A list of minimum installation andefficiency standards is provided in TRM 4.2.1. All energy and peak demand reductionsmust also be measurable and verifiable.

Energy Efficiency Measures in all end-uses (e.g., lighting, cooling, and heating) areeligible for the HEE SOP. If any of the Baseline equipment at a Project Site has beenremoved prior to the execution of the HEE SOP Program Addendum, or if any of theproposed Energy Efficiency Measures have been installed prior to the execution of theHEE SOP Program Addendum, the Project, or the affected portions thereof, will bedisallowed. Oncor will be the final authority on whether any particular Energy EfficiencyMeasure is eligible for incentives.

Any Energy Efficiency Measure approved by the PUCT and included in the PUCTResidential Standard Offer Program template, or any Energy Efficiency Measureassigned a deemed savings value by the PUCT, is eligible under the HEE SOP. Table1.1 provides examples of eligible Energy Efficiency Measures. Table 1.2 provides a listof ineligible Energy Efficiency Measures. Oncor will consider any Energy EfficiencyMeasures that are not listed in Table 1.1 for HEE SOP eligibility on a case-by-casebasis.


14/48



Table 1.1 Examples of Eligible Energy Efficiency Measures and Projects

Cooling and Ventilation Measures High-efficiency air-conditioning replacements Duct sealing and ceiling, floor, and wall insulation High-efficiency heat pump replacements

Hot Water Energy- and water-efficient clothes washers High-efficiency gas water heaters that replace electric resistance water heaters

Other Measures Solar window film and solar screens Energy-efficient refrigerators Duct efficiency improvement

Renewable Energy Measures (subject to approval by the PUCT)

Space conditioning (heating or cooling) Water heating Photovoltaic or other renewable distributed generation

Structural Measures Insulation: ceiling, wall, and floor ENERGY STAR windows Infiltration control

Table 1.2 Examples of Ineligible Energy Efficiency Measures

Measures that do not raise efficiency above current standards Cogeneration and self-generation Projects, except for Renewable Demand Side

Management (DSM) Technologies approved by the PUCT Load shifting/load management Measures Load reductions caused by vacancies Measures that rely solely on changes in customer behavior and require no capital

investment Measures for which incentives were received under another Oncor Program

Repair and maintenance Measures Energy-efficient gas Measures when replacing nonelectric technologies Measures that result in negative environmental or health effects Water-saving devices such as showerheads and faucet aerators


15/48



Addi tional Energy Efficiency Measures

Service Providers may install any Energy Efficiency Measure for which a deemedsavings value has been provided, including appliances, water heating, lighting, spaceconditioning, and building shell Measures installed in residential or qualified multifamilybuildings. Service Providers may propose other Energy Efficiency Measures, providedthey meet the following requirements:

Measure must be preapproved by Oncor. Measure must produce a measurable and verifiable electric demand reduction

and/or must reduce electricity consumption (an individual Energy Efficiency Measuremay produce only demand or energy reduction, if that Energy Efficiency Measure isincluded in a Project producing both).

Measure must produce savings through an increase in energy efficiency or asubstitution of another energy source for electricity (provided the substitution resultsin overall lower energy costs, lower energy consumption, and the installation of highefficiency equipment).

Renewable energy Measures meeting the requirements of Substantive Rule25.181(c)(28) may qualify for an incentive.

Measure must meet or exceed minimum equipment standards as provided in thisProgram Manual.

Measure must comply with all requirements of Substantive Rule 25.181.

As a general rule, Energy Efficiency Measures involving plug loads (equipment orappliances that are plugged into standard electrical outlets) are not permitted. Oncormay waive this restriction if the Service Provider provides Oncor with reasonableassurance that the Energy and/or Demand Savings associated with such EnergyEfficiency Measures are likely to persist over a verified estimated useful life (EUL) andthat quantifiable energy and/or demand reduction meeting the requirements of theSubstantive Rule 25.181 can indeed be achieved through the proposed EnergyEfficiency Measure(s).

1.4.4 DIAGNOSTIC TESTING

The PUCT requires Service Providers to perform carbon monoxide (CO) and airinfiltration testing in order to ensure that the health and safety of Host Customers is not

jeopardized by any Air Infiltration Energy Efficiency Measure installed as part of theHEE SOP. Air Infiltration Reduction Measures should be considered for installationpursuant to the passing results (as defined in the next paragraph) of the CO and airinfiltration testing.

For residences with combustion equipment (e.g., natural gas or propane), ServiceProviders must not install any Measure or Measures that would result in ambient air COlevels exceeding 9 parts per million (ppm) at Project completion. Service Providers willbe required to measure and record pre- and post-installation CO readings at eachinstallation site.

If the residence meets the HEE SOP CO standard, and the Service Provider proposes


16/48



to install air infiltration Measures, the Service Provider must then conduct a blower doorair infiltration test and record the pre-installation ventilation rate at 50 Pascal (pa), innormal conditions. The minimum pre-installation ventilation rate (at 50 pa) forhouseholds treated with infiltration Measures shall not be less than the standards setforth in Table 1.3.

Table 1.3 - Minimum Final Air Ventil ation Rate*

Shielding Single-Story Two-Story 3>Stories

Well Shielded 1.18 0.95 0.83

Normal 0.99 0.79 0.69

Exposed 0.89 0.71 0.62

* Measured in cubic feet per minute at 50 Pascals per square foot.

Well Shielded is defined as urban areas with high buildings or sheltered areas orbuildings surrounded by trees, bermed earth, or higher terrain

Normal is defined as buildings in a residential neighborhood or subdivisionsetting, with yard space between buildings (80-90% of houses fall in thiscategory)

Exposed is defined as an open setting with few surroundings, buildings, or trees

Minimum Final Air Exchange Rates are listed in the air infiltration guidelines found in TRM 4.2.2. To qualify for an incentive, a minimum air leakage reduction of 10% of thepre-installation reading is required.

CO tests shall be conducted in all instances where combustion (e.g., natural gas orpropane) equipment is present. Blower door tests shall be conducted in all cases whereinfiltration Measures are installed. If the unit fails to meet either the CO or the ventilationrate standard, the Service Provider shall not install any Measure that would or couldreduce air infiltration in the unit. These Measures include but are not limited to caulking,weather-stripping, and duct sealing/repair.

1.4.5 CARBON MONOXIDE TEST SPECIFICATIONS

Test Equipment

Carbon monoxide testing is to be performed with the Bacharach Monoxor II Sensor or

an equivalent Texas Department of Housing and Community Affairs (TDHCA)-approvedtesting device. CO detectors are not suitable testing devices and are not to be used.Sensing device must have a range from 0-2000 ppm; accuracy +/- 5% of readout; andreadout resolution = 1 ppm adjustable to zero.

Am bient Ai r Test

Conduct the CO test at initial assessment. Every housing unit that has combustionequipment shall be tested. If more than 9 ppm CO is detected, air infiltration reductionMeasures shall not be installed until the CO problem has been corrected. Host


17/48



Customer should always be informed of the existence of high levels of CO and advisedto take precautions until abatement can be performed. No Energy Efficiency Measurewhich could result in a decreased ventilation rate for that housing unit shall be installedif the installation of such Measure would or could result in ambient air CO levelsexceeding 9 ppm within the housing unit.

1.4.6 PROJECT SIZE The minimum Project size in the main option is $500 and $1,000 in the multifamilyoption. The maximum Project size is determined by the budget of the applicable ProjectOption, the 9% HEE SOP budget cap, and particular Project Option restrictions.

1.5 PROGRAM INCENTIVES AND PAYMENT PROCEDURES

Funds are available for Oncor-approved Projects on a first-come, first-served basis untilfunds are exhausted. Oncor reserves the right to change the HEE SOP budget, or thebudget for any specific P roject Option, at any time in its sole discretion. Oncor will postupdates of available funds in each of the Options on its Web site athttps://www.oncoreepm.com .

Note that in all cases, any conflicting payment procedures and amounts specified in theUmbrella Agreement or Program Addendum supersede this and any other documents.

Service Providers will be paid entirely on the basis of the kW and kWh (Peak DemandSavings and Energy Savings) savings calculated according to the types and quantitiesof Energy Efficiency Measures installed. The resulting calculation may be furtheradjusted based on results of Oncors site inspection results as described elsewhere inthis Program Manual and in the HEE SOP Program Addendum.

The HEE SOP budget will be divided between the Project Options. Funds will bereserved and awarded based on the available amount budgeted for each category.Oncor reserves the right to adjust the Project Option budget amounts at its discretionthroughout the Program Year. To ensure that incentives are available to multipleService Providers, no Service Provider or its Affiliates can reserve nor receive morethan the lesser of the aggregate total of 9% of the HEE SOP incentive budget or themaximum Project amount for each Project Option (as herein set forth) in a given year.

Incentive rates for the HEE SOP are shown below and are based on PUCT-approvedavoided cost.

Table 1.5 Incentives by MeasureMeasure Descript ion Incentive

EEL $/kW $/kWhDuct Efficiency 18 $ 174.90 0.0424Infiltration Reduction 11 $ 177.66 0.1159Ceiling Insulation 25 $ 187.64 0.0363Wall Insulation 25 $ 312.73 0.1251Floor Insulation 25 $ 312.73 0.1251Combo - 1 (Infiltration and Insulation)


18/48



Infiltration Reduction 11 $ 193.11 0.1545Ceiling Insulation 25 $ 187.64 0.1126Combo - 2 (Duct, Infiltration, Insulation)Duct Efficiency 18 $ 180.19 0.0530Infiltration Reduction 11 $ 200.84 0.1622Ceiling Insulation 25 $ 187.64 0.1251Central A/C Retrofit Replacement 15 $ 332.84 0.4755

Central HP Retrofit Replacement 15 $ 332.84 0.4755Package A/C Replacement 15 $ 332.84 0.1236Package HP Replacement 15 $ 332.84 0.1464Ground Source HP 25 $ 487.87 0.4092ENERGY STARWindows 25 $ 625.47 0.3603Water Heater Replacement (Electric to Electric) 13 $ 346.77 0.5548Water Heater Replacement (Electric to Gas) 13 $ 303.42 0.0009Water Heater J ackets 7 $ 218.76 0.0547Water Heater Pipe Insulation 13 $ 216.73 0.0347ENERGY STARDishwasher 11 $ 270.36 0.5021ENERGY STARRefrigerator 14 $ 409.58 0.4596ENERGY STARClothes Washer 11 $ 347.60 0.5137Solar DWH Replacement 15 $ 475.48 0.2092Solar Window Film 10 $ 288.36 0.0505Solar Screens 10 $ 360.45 0.0894

The HEE SOP offers the Deemed Savings Option. for determining demand andEnergy Savings and Incentive Payments. This Option provides predetermined demandand energy savings amounts for most of the common Energy Efficiency Measures.

These deemed savings values have been approved by the PUCT. For a listing of thesesavings values, refer to TRM 5.1.2. The Deemed Savings Option allows for IncentivePayments that are more predictable and require fewer administrative resources.

In order to promote energy efficiency activities in all areas of the service area, there willbe an additional 15% geographic payment adjustment for all Measures listed in Table1.5, outside the seven-county metroplex area. The metroplex area includes Dallas,

Tarrant, Rockwall, Denton, Collin, J ohnson, and Ellis counties.

1.5.1 DEEMED SAVINGS OPTION

If a Project consists of Energy Efficiency Measures for which Deemed Savings havebeen approved by the PUCT, and the Service Provider wishes to be paid entirely on thebasis of these deemed savings values, then the Service Provider is eligible to receive100% of deemed production savings Incentive Payments within forty-five (45) days afterOncors approval of the Project Production Report, subject to Oncors on-site inspectionresults.

1.6 PROGRAM PROCESS AND TIMELINE

1.6.1 PROJECT APPLICATION PROCESS

Each Service Provider must enter into the Umbrella Agreement and the HEE SOPProgram Addendum with Oncor in order to participate in the Program. The UmbrellaAgreement and Program Addendum are on-going but terminable by Oncor at will, as


19/48



well as for other events of default by Service Provider. This allows Service Providers toavoid resubmitting a new HEE SOP Program Addendum each Program Year ; however,it does require the Service Provider to submit updated documentation for each Program

Year using the HEE SOP online application. It is solely the responsibility of the ServiceProvider to make Oncor aware of changes required to the documentation and to providehard copies of such documentation. Failure to provide documentation may be a breachof the Umbrella Agreement, which can be grounds for termination of the UmbrellaAgreement with the Service Provider.

The Umbrella Agreement and Program Addendum do not in any way guarantee theService Provider funds for any Program Year of the HEE SOP Program Addendum TheUmbrella Agreement and Program Addendum do not in anyway obligate Oncor tocontinue the HEE SOP or approve any HEE SOP Projects.

The first step in the overall application process is to submit an Umbrella Agreementthrough EEPM by using the Web site: https://www.oncoreepm.com Once the UmbrellaAgreement is approved, a Service Provider will have the ability to submit an Applicationfor the HEE Program. A Service Provider is only required to submit an UmbrellaAgreement one time (unless the Service Provider is not party to the most currentversion of the Umbrella Agreement, in which case the Service Provider will need toexecute the most current version). The HEE SOP process is for the Service Provider tosubmit a completed Project Application for its proposed Project Option. The ProjectApplication includes information about the Service Provider and information about thenature of the sites at which the proposed Project will be installed. Submittal of ProjectApplications will be via the designated Web site. Project Applications will be accepteduntil all HEE SOP funding for the 2013 Program Year has been exhausted or Oncordisables the Project Application function as of October 1, 2013. The Multifamily ProjectOption is only available when funds are reserved, and Project Applications will beconsidered on a first-come, first-served basis until funding in the Multifamily Project

Option budget is fully committed. Oncor will post updates of available funds in each of the Project Options on its Website, which may be accessed by clicking on Home EnergyEfficiency SOP Application. Chapter 2 contains a detailed description of the applicationprocess.

Located in TRM 3.1.3 is a copy of the Program Addendum. Oncor will not entertainproposed modifications to this documents unless unique circumstances merit andrequire, at the sole discretion of Oncor, revision. Applicants are urged to review thesedocuments prior to submitting a Project Application.

1.6.2 PRODUCTION PERIOD

During the Project implementation period (the Production Period), the Service Providerwill be performing marketing, sales and installation activities and reporting progress ona regular basis to Oncor. Details about these requirements are included in Chapter 3 of this Program Manual.

1.6.3 ESCROW

IN CASES WHERE INSTALLED MEASURES (FOR EXAMPLE: INSULATION)EXCEED THE MAXIMUM KWH ALLOWED PER PROGRAM YEAR, BASED ON THE


20/48



LOAD FACTOR CAP OF THE PROGRAM, THEN THE EXCESS DOLLARS WILL BEPLACED IN ESCROW AND APPLIED TO FUTURE PRODUCTION REPORTS UNDER

THIS PROGRAM OPTION IN THIS PROGRAM YEAR IF THE CUMULATIVE KWH ISBELOW THE MAXIMUM KWH ALLOWED ON AN ANNUAL BASIS.

1.6.4 AGREEMENT TERMINATIONS

Oncor may terminate any or all HEE SOP Program Addendum or Umbrella Agreementsin whole or in part, at any time, at its sole discretion, by providing written notice of termination to Service Provider. The notice of termination will specify the effective dateof any termination, and that the HEE SOP Program Addendum or Umbrella Agreementis terminated in its entirety. Termination may result from unacceptable performance,either during current or past HEE SOP Programs. Please review the HEE SOP ProgramAddendum and Umbrella Agreement for additional details.

Service Provider will finish any Project already commenced which cannot bediscontinued without breaching the Host Customer Agreement. Oncor will have noobligations with respect to any contractual obligations entered into between HostCustomer and Service Provider after Service Providers receipt of Oncors notice of termination.

In the event a Standard Offer Program is terminated, Oncor's only liability will be to payService Provider the unpaid balance due Service Provider for that portion of the Projectalready commenced and which cannot be discontinued without breaching the HostCustomer Agreement.

If a Service Providers inspection Cumulative Failure Rate (CFR) exceeds 5%, theService Provider will not be allowed to submit any additional sites, and Oncor mayterminate the HEE SOP Program Addendum. Please refer to the Actions Document for

Service Providers (TRM 3.3.1) for a complete list of potential actions related to failurerates.

Oncor may, in its sole discretion, refuse to allow a Service Provider to participate in theHome Energy Efficiency Program for any reason, including based on prior Programparticipation or participation in other programs.


21/48

Chapter 2,HEE: Project Application


2 HEE: PROJECT APPLICATION

2.1 GENERAL PROJECT APPLICATION GUIDELINES

Service Providers must first be accepted into the Energy Efficiency ProgramManagement (EEPM) Solution to be eligible to participate in the Home EnergyEfficiency Standard Offer Program. This includes completing the Umbrella Agreementrequired to register in EEPM which will then allow for Program Application but does notguarantee acceptance into any of the Standard Offer Programs.

Oncor will open the online system for the 2013 HEE SOP on February 18, 2013, at10:00 a.m. CT. The Main Project Option will open on February 18, 2013, for potentialService Providers to submit their Application and end on March 4, 2013, at 5:00 p.m.CT. The Project Application is located online at https://www.oncoreepm.com . EEPM willbegin accepting completed Production Reports for the Main Project Option on February25, 2013, at 10:00 a.m. CT. The Multifamily Project Option will open on April 18, 2013,at 10:00 a.m. CT so that Service Providers can begin filling out and submitting theirApplication and end on August 30, 2013, at 5:00 p.m. CT. EEPM will begin acceptingthe approved Service Providers completed IA for the Multifamily Project Option on April18, 2013 at 10:00 a.m. CT. Oncor will utilize the EEPM servers time stamp todetermine the order of receipt of all P roject Applications. Funds will be reserved in theorder in which Project Applications are received and approved by Oncor.

Applicants to the Main Project Option may only submit one Project Application perService Provider. If Oncor receives multiple Project Applications from the same ServiceProvider, it may deny all such Project Applications.

The application forms will be accessible on the Oncor Website athttps://www.oncoreepm.com , by clicking on 2013 Home Energy Efficiency SOPApplication. All Project Applications must first be completed and submitted online andthen hard copies must be sent to Oncor, as further discussed below.

Dates Associated with the HEE Program

HEE Program Main Option Multifamily Option

Program Application Open Feb 18 April 18

Program Application Close March 4 August 30

Close date for all materials*

March 11 N/A

Submission of Completed ProductionReports Open Feb 25 N/A

Submission of Completed IAs Open N/A April 18

Submission of Completed ProductionReports Close November 15 October 15

* All materials to support the Program Application are due within 5 business days of thesubmitted Program Application.


22/48



2.2 APPLICATION PROCESS: MAIN PROJECT OPTION

Applicants for the Main Project Option must submit an electronic Project Application andthen send to Oncor:

An executed (signed and dated) HEE SOP Program Addendum that is downloadedfrom the Application, completed online, and printed from the Program Website. Thisrequirement applies only to new Service Providers who have never participated inthe HEE SOP Program.

The required insurance accord. ALL insurance accords should be emailed [email protected] (Refer to TRM 3.2.1)

Copies of up-to-date training certificates, licenses, or rater certificates, if applicableshould be uploaded into the EEPM application.

Photos with name of each employee, manager, owner, or any individual that isassociated with the Application. No personal ID such as drivers licenses or SocialSecurity numbers should be sent or included.

List each name of any subcontractor and the company they represent.

Evidence of good (as determined in Oncors sole discretion) credit rating. Mostcompanies provide a letter from their financial institution stating the business has anactive business account in good standing and for how long the account has beenactive. (Due to privacy issues non-public financial statements should not be sentwith your application.)

Proof of applicable insurance, licenses, and permits in the Service Providersbusiness name.

The hard copy HEE SOP Program Addendum from first time applicants must bereceived by Oncor within five (5) business days of Internet submittal. If Service Providerhas previously submitted a HEE SOP Program Addendum, that has not beenterminated, Service Provider should not submit another HEE SOP Program Addendum.Oncor will notify applicants of their application status within ten (10) business days of receipt of the hard copy of the complete Application, HEE SOP Program Addendum,and all required supplemental documentation as shown in TRM 3.1.3. attached hereto.If Oncor approves a Project Application, it will execute the HEE SOP ProgramAddendum, if applicable, and return a copy to the Service Provider.

2.2.1 POTENTIAL SERVICE PROVIDER INFORMATION

The information listed below is required of all applicants:

Applicant name (company) Federal tax identification number of applicant Contact name


23/48



Contact title Street address Mailing address Contact phone number Contact fax number Contact e-mail address Name(s) and contact information of parent company (if any) and Affiliates Name(s) and contact information of any proposed Subcontractors Insurance requirements Assumed Name Certificate filed with county Copies of up-to-date training certificates, licenses, or rater certificates should be

included if applicable

Photos with name of each employee, manager, owner, or any individual that isassociated with the Application. No personal ID such as drivers licenses or SocialSecurity numbers should be sent or included.

List each name of any subcontractor and the company they represent.

2.2.2 QUALIFICATIONS

Oncor requires applicants to demonstrate their financial, technical, and managerialqualifications as part of the application process to help ensure that the proposedProjects will be successful in delivering the estimated Energy Savings and that theapplicant is committed to fulfilling Program objectives and is competent to complete theproposed Project. Service Providers must complete the Profile level information inEEPM.

2.3 APPLICATION PROCESS: MULTIFAMILY PROJECT OPTION

Potential Service Providers may reserve funds to upgrade a multifamily site through theMultifamily Project Option. Only Service Providers successfully participating in the HEEProgram for a minimum of one year and cumulative failure rate (CFR) is less than 5percent are eligible to participate in the Multifamily Project Option. Multifamily Dwellingsare defined as attached Dwelling Units greater than a fourplex. A Multifamily ProjectSite is defined as one or more Multifamily Dwelling Units located on a single piece of property or adjacent pieces of property, under management by a single party. Duplexand fourplex units can be considered multifamily if they are located on the same oradjacent properties.

Service Providers will be required to submit one (1) Multifamily Option HEE SOPApplication. The Multifamily Project Option will consist of two phases; the InitialApplication (IA) and Installation Notice (IN).


24/48



Prior to the Service Provider creating the IA the following steps are expected to takeplace:

1. Service Provider contacts potential multifamily owner/property management andvalidates the property is eligible for the Program.

2. Service Provider should validate each property unit (ESIID) is individuallymetered and obtain ESIIDs or meter numbers for entry into the IA.

3. Service Provider should obtain a signed Host Customer Agreement from theproperty owner/manager to supply with IA.

4. Pre-tests on each eligible floorplan should be conducted in order to addmeasures to each valid ESIID for the IA.

The approved Service Provider must create a IA with ALL the Electric Service Identifier(ESI ID)s of the property for the Project Site. Each IA will be time-stamped andprocessed in the order submitted by the service provider. Each ESIID will be checked

against the EEPM Duplicate database to determine if the ESIID is eligible for theProject. There may be cases where some ESIIDs are not eligible for the Project withinthe same multifamily complex. The measures planned for the Project should be enteredfor each ESIID and EEPM will estimate the incentives and savings for the project andthe estimated funds will be blocked for the project. Once the funds are blocked a pre-inspection will be performed on the project. Once the pre-inspection is complete theProgram Manager will contact the Service Provider to discuss the pre-inspection results.If the pre-inspection reflects any discrepancies from the original submission the IA willbe rejected and sent back to the Service Provider to make adjustments. The ServiceProvider can re-submit the IA after making the appropriate adjustments. Once re-submitted the Program Manager will approve IA and funds will be reserved if available.

If funds are not available to fund the project the IA will be waitlisted in the order it wasreceived. A hard copy of the Multifamily Addendum representing the kW, kWh andincentive amount will need to be signed by the Service Provider along with a signedcopy of the Host Customer Agreement, both of which must then be sent to the ProgramManager for Oncor approval. Once the hard copy Multifamily Addendum is approvedand signed by Oncor management the Program Manager will approve the Project inEEPM. Once the project is approved by the Program Manager the project will move intothe IN phase. While the project is in the IN Open phase, the Service Provider enters allthe measure details of the post installed measures. Incentives will be based on therecalculated measures the Service Provider enters into the EEPM database. After allthe installed measures are entered the Service Provider will submit the IN to ProgramManager. The Program Manager will then review and, if approved, move the PR intoPost Inspection. After the inspector completes the final inspection the results will bereviewed and approved by the Program Manager. The approved incentives will neverexceed the approved reserved amount. In the event the incentive are less than thereserved amount the remaining funds will be released to fund other projects or HEEPrograms.

Funding Reservation(s) requests may not exceed $150,000 per IA and a total of thelesser of $300,000 of the budget of this P roject Option or three percent (3%) of the HEESOP budget. Budget Reservation requests should be as accurate as possible without


25/48



the submitted Production Report exceeding each Budget Reservation requestedamount.

A Service Provider may not substitute or revise Project Sites once its Project Applicationhas been submitted. The Production Period for this Project Option is forty-five (45) daysand requires Program Manager preapproval. A Service Provider may ONLY have one(1) active Multifamily Project at any time. Once a Multifamily Project is completed aService Provider can choose to submit another IA for a Multifamily Project if funding isavailable, the total of all Projects is under the Affiliate funding cap (referring to the 4%cap per SP) and there is enough time to complete the Project.

The Production Report(s) must be submitted electronically by the last day of theProduction Period. Once the Production Period for a Project is over, Service Providerswill not have access to input additional data into the Production Report for such Project.A signed, hard copy of the Production Report for the Project must be received by Oncor,along with the required support documentation, within five (5) business days followingsubmittal of the electronic version of the Production Report. The date Oncor receivesthe signed, hard copy of the Production Report will be the effective date of receipt.

Only completed Production Reports will be accepted. Incomplete documentation mayresult in the entire Production Report being returned without processing to the ServiceProvider. The Service Provider may be required to pick up its Production Report inperson from the Oncor Program Manager. Oncor considers a Production Reportcomplete when all Energy Efficiency Measures that were proposed in the approvedProject Application have been installed and all required support documentation,including Host Customer Agreements and Customer Certificates, have been submittedby the Service Provider and received by Oncor. All installations proposed in theapproved Project Application for a Project Site must be installed before submitting theProduction Report for such Project Site. Supplemental Production Reports will not be

accepted. However, Oncor will process any Energy Efficiency Measures documentedon incomplete Production Reports that are closed by Oncor on the last day of theProduction Period if Oncor receives the required supporting documentation for suchEnergy Efficiency Measures within five (5) business days after the Production Periodends.

There is no security deposit required for Projects included in an initial ProjectApplication for the Multifamily Project Option.

Oncor will pay Service Providers a specified price per kW and kWh of savings asdescribed in Section 1.5 titled Program Incentives and Payment Procedures. Thisstandard offer price is the same for all Service Providers in the Multifamily ProjectOption. Incentives will not be paid at the combo levels however the additional 15%geographic payment adjustment will apply for the Multifamily Project Option. The termsof the standard offer are outlined in the HEE SOP Program Addendum for eachService Provider.

2.3.1 POTENTIAL SERVICE PROVIDER INFORMATION

The information listed below is required of all applicants:


26/48



A description of the proposed Project to be offered by the applicant, including themarketing approach to be used along with customer service activities to support itscustomers

Applicant name (Company) Federal tax identification number of applicant

Contact name Contact title Contact address Mailing address Contact phone number Contact fax number Contact e-mail address Name(s) and contact information of parent company (if any) and Affiliates (if any) Name(s) and contact information of any proposed Subcontractors Insurance requirements Copies of up-to-date training certificates, licenses, or rater certificates should be

included if applicable

Assumed Name Certificate filed with county

2.3.2 QUALIFICATIONS

Oncor requires applicants to demonstrate their financial, technical, and managerialqualifications as part of the application process to help ensure that the proposedProjects will be successful in delivering the estimated Energy Savings and that theapplicant is committed to fulfilling HEE SOP Program objectives and is competent tocomplete the proposed Project. Service Providers must complete the Profile levelinformation in EEPM.

2.3.3 EVIDENCE OF SUFFICIENT CREDIT (DETERMINED IN ONCORS SOLEDISCRETION).

Estimated Impacts

Applicant must use the Deemed Savings Option and should refer to the ApprovedDeemed Savings Measures (TRM 5.1.2) and/or Incentive calculator (which may bedownloaded at https://www.oncoreepm.com ) to create estimates of average kW andkWh savings per installation site. Energy Efficiency Measure installation and savingsinformation should be provided by customer type (standard residential).


27/48



2.3.4 SECURITY DEPOSIT AND MILESTONES

Applicants requesting funds in the Multifamily Project Option will not be required tosubmit a security deposit provided Projects are completed by the required deadline andresult in similar (as determined by Oncor, in its discretion) Energy and Peak DemandSavings and Incentive Payments as proposed in the Project Application. However, if aService Provider fails to complete a Project by the required deadline or fails to meetproposed savings and incentives in the current year or in any previous Program Year,Oncor will require a security deposit on all future Project Applications submitted underthe Multifamily Project Option, as further discussed in Section 1.3.3 of this ProgramManual.

The estimated kW, kWh, and resulting Incentive Payments will be used to determine thesecurity deposit requirements, if a deposit is required. Project Applications will not beconsidered complete until the applicant has submitted its deposit for 5% of the amountof the total incentive requested for the proposed Project, if a deposit is required.

Service Providers participating in the Multifamily Project Option must complete their

Projects within the forty-five (45) day Production Period from the multifamily projectapproval date or November 30, 2012, whichever is earlier.

2.4 PROJECT APPLICATION SUBMITTAL PROCEDURE

All hard copies of Applications and supplemental documentation, as required by eachProject Option, must be sent by U.S. mail or other mail services and must be addressedto the following (Oncor will not accept faxed or hand-delivered information):

OncorAttn: Carl Brown

1616 Woodall Rodgers Fwy. Ste. 5M-028Dallas, TX 75202Phone: 214-486-3244 or 1-866-728-3674E-mail: [email protected]

Or

Attn: Cary Betts1616 Woodall Rodgers Fwy. Ste. 5M-023Dallas, TX 75202Phone: 214-486-3220 or 1-866-728-3674E-mail:[email protected]

Or

Attn: India McKnight1616 Woodall Rodgers Fwy. Ste. 5M-022Dallas, TX 75202Phone: 214-486-4829 or 1-866-728-3674E-mail: [email protected]


28/48



It is the sole responsibility of the applicant to ensure that Oncor receives all of therequired Project Application materials by close of business on the applicable due date.Applicants should retain proof of delivery for all Program materials submitted.

2.5 PROJECT APPLICATION REVIEW PROCEDURES

2.5.1 PROJECT APPLICATION EVALUATION

Oncor may reject a Project Application for any reason in its sole discretion, and is notrequired to supply any explanation for such rejection. Reasons for rejection mayinclude, but are not limited to, the following:

The Project Application is received after the budget for that Project Option has beenfully committed.

The applicants proposed Production Period cannot reasonably be expected to becompleted by November 15, 2012.

Required submittals are not received by deadlines stated in this Program Manual. The applicant fails to meet HEE SOP eligibility requirements. The applicant is found to have made material misrepresentations in the Project

Application. The applicant fails to comply with applicable federal, state, and local laws and

regulations. Oncor determines, based on information concerning the applicant or its Affiliate(s),

including any prior performance of applicant or its Affiliate(s) concerning EnergyEfficiency Programs, that applicant is unlikely to be able to successfully participate inthe HEE SOP.

It is necessary due to changes that occur in laws or regulations directly affecting theHEE SOP.

Prior year participation in the HEE Program resulted in a Cumulative Failure Rate(CFR) greater than 5%.

Oncor, in its sole judgment, determines that the applicant is incapable of fulfilling theterms and conditions of the HEE SOP, the HEE Program Addendum, or theUmbrella Agreement.

Oncor may request clarification of, or additional information about, any item submitted

as part of the Project Application. Applicants must respond to such requests within thetime period specified by Oncor. If the clarification or additional information provided isnot sufficiently responsive, Oncor may, in its sole discretion, request additionalinformation or discontinue its evaluation of the submittal. Any applicant submitting anunsuccessful Project Application may reapply for Project funding by submitting anotherProject Application. However, the applicant will lose its initial position in the order of submittal for Budget Reservation purposes, if applicable.


29/48



2.5.2 APPLICATION CONFIDENTIALITY

Oncors HEE SOP is subject to oversight by the PUCT, which may request a copy of any HEE SOP materials that Oncor receives. Sensitive information submitted by theService Provider to Oncor, such as financial statements and Project costs, will betreated confidentially to the extent possible. However, Oncor will not be liable to anyService Provider or other party as a result of public disclosure of any informationsubmitted regarding the HEE SOP.

2.5.3 SUBMISSION OF FALSE, MISLEADING, OR INCORRECT INFORMATION

Oncor reserves the right to discontinue its evaluation of all submittals from any ServiceProvider who submits false, misleading, or incorrect information, and Oncor mayterminate the applicant(s) HEE SOP Program Addendum and/or Umbrella Agreement.Oncor also reserves the right to deny any Service provider who submits false,misleading or incorrect information from participating in any energy efficiency programssponsored by Oncor.

2.5.4 HEE SOP PARTICIPATION COSTSOncor will not reimburse any Service Provider for any costs incurred by participating inthe HEE SOP, including costs of preparing the Project Application, reviewing orexecuting the HEE SOP Program Addendum, or preparing and submitting ProductionReports. Training costs are also not reimbursable for any Service Provider and are notpart of Oncors service.

2.5.5 PARTICIPATION RESTRICTIONS AND ADDITIONAL QUALIFICATIONS

Oncor may impose additional restrictions and qualification requirements on ServiceProviders to those set forth in the HEE SOP Program Addendum and UmbrellaAgreement based on prior participation in the HEE SOP or other Oncor-sponsoredenergy efficiency programs.

2.5.6 IMPACTS OF PRIOR YEAR SERVICE PROVIDER PERFORMANCE

Evaluation criteria for Service Providers (SP) from prior years submitting applications toparticipate in Residential Energy Efficiency Programs. This document outlines the actionthat can be taken by the Program Manager (PM) if a SP with Program history issuessubmits an application to participate in a Residential Energy Efficiency Program.

Issue PM Action Taken Comments

Cumulative FailureRate (CFR) is greaterthan 10%

Lockout for the currentProgram year.

Guidelines to ModifyLockout

Due to paperwork 1month lockout

Due to inferior work 3

SP will be informed by PM that due tothe prior year CFR being greater than10% they will not be allowed toparticipate in the current Program year.

SP will be encouraged to develop aPlan of Action that addresses thefailures/issues to present in the next


30/48



month lockout Program year.

SP can apply the next Program yearand will be required to provide thePlan of Action that addresses theprior failures/issues.

Cumulative FailureRate (CFR) is greaterthan 5%

1 month lockout periodfrom SP approval date toparticipate in the currentProgram year

PM has the decision to lockout basedon the cause of the CFR. Paperwork failures can be waived. Failures do to inferior work are not

waived.

Issues found frominternal complianceaudit

SP lockout period variesbased on issuediscovered during audit

3 month lockout period nonretention of paperwork

3 month lockout period noemployee background checks

3 month lockout period otherissues discovered

SP was in Strike 1status at the end of theprior Program year


PM has the decision to lockout basedon the cause of the CFR. Paperwork failures can be waived. Failures from work quality are not

waived. Other issues as outlined in the Strike

3 Policy are not waived.SP was in Strike 2status at the end of theprior Program year


PM has the decision to lockout basedon the cause of the CFR. Paperwork failures can be waived.

Failures from work quality are notwaived. Other issues as outlined in the Strike

3 Policy are not waived.

2.5.7 SUPPLEMENTAL PROGRAM INFORMATION TRAINING CERTIFICATES

Main and Multifamily Option Certified Home Energy Rating System (HERS)and/or BPI Certified individual verifying and signing each HEE SummaryProduction Report. Host Customer Certificate, Installed Measures Report,verified and signed by a Performance Verification Technician-Existing Home(PVT-EH)-certified individual or Home Performance Professional (HPP). PVT-EH Training certification or HPP Training certification is required for at least oneworker performing Duct Improvement and/or Infiltration Reduction Measures atthe job site.

A CERTIFIED HOME ENERGY RATING SYSTEM (HERS)-AND/OR BPI-CERTIFIED INDIVIDUAL WILL BE REQUIRED TO BE ON STAFF AND LISTEDON THE EMPLOYEE TAB FOR EACH SERVICE PROVIDER. A CERTIFIED


31/48



HOME ENERGY RATING SYSTEM (HERS) - AND/OR BPI-CERTIFIEDINDIVIDUAL CAN ONLY PROVIDE HIS SERVICES TO A MAXIMUM OF TWO(2) SERVICE PROVIDERS. REFER TO THE HERS, BPI, PVT AND HPPDOCUMENT FOR DETAILS OF THIS REQUIREMENT.

PHOTOS WITH NAME OF EACH EMPLOYEE, MANAGER, OWNER, OR ANYINDIVIDUAL THAT IS ASSOCIATED WITH THE APPLICATION. NOPERSONAL ID SUCH AS DRIVERS LICENSES OR SOCIAL SECURITYNUMBERS SHOULD BE SENT OR INCLUDED. YOU ARE REQUIRED TODISCLOSE ALL THE PROGRAMS THE EMPLOYEE IS WORKING.

COMPLETED CUSTOMER SERVICE VERIFICATION FORM MUST BEPROVIDED FOR ALL SERVICE PROVIDERS AND EMPLOYEES.

SERVICE PROVIDER/COMPANY OWNER/CREW LEADER/COMPANYMANAGER WILL NEED TO SUCESSFULLY COMPLETE THE REQUIREDCUSTOMER SERVICE TRAINING CONDUCTED BY ONCOR AND SIGN ADOCUMENT STATING HE WILL TRAIN ALL CUSTOMER-FACINGEMPLOYEES, SUBCONTRACTORS, AND ANY INDIVDUAL PROVIDINGSERVICES RELATED TO THE HEE SOP.


32/48

Chapter 3,HEE: Production Period


3 HEE: PRODUCTION PERIOD

3.1 PRODUCTION PERIOD

The Production Period is the time period during which Energy Efficiency Measures maybe installed. During the Production Period, the Service Provider will be performingmarketing, sales, and installation activities and reporting progress on a regular basis toOncor.

3.2 REQUIRED SUBMITTALS

3.2.1 PROJECT PRODUCTION REPORTS

The primary reporting instrument during the Production Period is the Production Report,which will also serve as an invoice. Production Reports must be completedelectronically on official Oncor Production Report forms (Host Customer Agreement[HCA] and Customer Certificate [CC]), which will be forwarded to the Service Provideronce its Project Application has been approved. Examples of the Host CustomerAgreement and Customer Certificate will be available for review on the Oncor HEE SOPWebsite for active Service Providers. Original hard copies of Production Reports mustthen be signed and mailed to Oncor, accompanied by the original signed copies of theHost Customer Agreements, Customer Certificates, and other required supportdocumentation.

The Main Project Option Production Reports may be provided to Oncor on a weeklybasis. Only one Production Report may be closed per calendar week and hard copiesof the Production Report and accompanying documents must be received within five (5)business days of the electronic submittal.

The calendar week for the Production Report begins at 12:01 a.m. CT each Mondaymorning and ends at 11:59 p.m. CT each Sunday night.

Each Production Report submitted in the Main Project Option will require a signaturefrom a qualified Home Energy Rater (HERs) rater or Building Performance Institute(BPI) Certified individual on the Production Report Summary page validating theMeasures contained on that Production Report. The final Production Report must beelectronically submitted by November 30, 2013 (note only one per week).

Oncor will not make any Incentive Payments for any Deemed Savings not included in aProduction Report electronically submitted on or before November 15, 2012. In noevent shall any individual Production Report request incentives in an amount less than$500 or more than $15,000 per week nor shall a Service Provider receive HEE SOPfees in any Program Year of more than the lesser of $600,000 or seven percent (9%) of the overall HEE SOP budget inclusive of its Affiliates (the cap within each ProjectOption is no more than 6% of the overall HEE SOP budget). Work submitted forIncentive Payment must be completed only during the Program Production Period.


33/48



Multifamily Project Option Production Reports can be electronically submitted uponcompletion of installation of Energy Efficiency Measures for each Project Site or mustbe electronically submitted to Oncor no later than the last day of the Production Period.Hard copies of Production Reports and required accompanying documents must bereceived by Oncor within five (5) business days of electronic submittals.

All Production Reports must be date-stamped by Oncor by the due date. All documents,including Production Reports, Host Customer Agreements, and Customer Certificates,must be sent via U.S. mail or other overnight mail services HAND- DELIVERED, E-MAILED, OR FAXED DOCUMENTS WILL NOT BE ACCEPTED.

Production Reports shall include the following information:

Host Customer type(s) (residential or multifamily)

Host Customer name(s) and address(es)

Service address(es)

Oncor meter number and Host Customer ESI ID (account) number Host Customer telephone number(s) (home or work) and best time to call

List of installed Measures

kWh savings, kW savings, and incentive amounts by Measure type

A summary of all Measures installed. This summary shall be Measure-specificand provide subtotals of Measure installations, kW and kWh savings, and totalincentive amounts by each customer type (residential and multifamily). Incentiverequests will be calculated according to functions embedded in the officialreporting database and may not be modified by Service Providers.

For each installation, the Service Provider will enter the data listed above. Once all of the data has been input and reviewed, the Service Provider will click the menu button toelectronically submit this data to Oncor and then must send Oncor an original, signedhard copy of the report. Production Reports are generated from the installation datainputs. No additional data inputs are required to generate these reports.

Original signed hard copies of Production Reports must be accompanied by:

Original Host Customer Agreement(s) and Customer Certificate(s) submitted inthe order that they appear in the Production Report.

Only one entry will be allowed when entering customer information and measure dataon the Open Production Report.

The Exclude button will no longer exist on the Open Production Report for theservice provider to exclude the customer.

Should changes be required the service provider will be required to contact the EEPMHelp Desk (via email or phone) and submit a ticket requesting approval for therequested changes.

Service providers will be required to provide the reason(s) for the request.


34/48



Service providers making request(s) that are received before 2:00 p.m. will receive anapproval/denied email or return phone call same day (Mon.-Fri.). Requests receivedafter 2:00 p.m. will receive email/phone call next business day.

Any requests received on Sat. or Sun. will be processed next business day.

3.2.2 HOST CUSTOMER AGREEMENTS AND CUSTOMER CERTIFICATES

Original copies of Host Customer Agreements (which may not be altered accept forbeing incorporated on Service Provider letterhead with preapproval) and CustomerCertificates (which may not be altered) shall be mailed with each Production Report.Among other things, the Host Customer Agreement provides Oncor with permission toinspect installations, which may be required before Incentive Payments are approved.Customer Certificates verify the installation of Energy Efficiency Measures. Copies of the completed Host Customer Agreement and Customer Certificate shall be left with theHost Customer.

3.2.3 PROJECT INVOICES

The Production Report will serve as the Service Providers invoice for IncentivePayments. Oncor may, at its sole discretion, adjust Incentive Payments based onfindings from site inspections.

3.3 SUBMITTAL REVIEW PROCEDURES

3.3.1 ADMINISTRATIVE REVIEW

Once the Production Report and accompanying documentation is submitted to Oncor, itwill be reviewed for accuracy. If, in Oncors sole discretion, the Service Provider has notprovided sufficient information on which Oncor can make a reasonable determination of Service Providers entitlement to such incentives, Oncor may reject payment for thedeficiencies in question or the entire Production Report.

3.3.2 INSTALLATION INSPECTIONS

During the review process, Oncor or its designated agent will perform inspections of arandom sample of a statistically representative number of P roject Sites to determine if Energy Efficiency Measures have been installed properly and are capable of performingtheir intended functions. Should Oncor not be able to contact a Host Customer afterrepeated attempts, the Service Provider will be contacted and required to schedule theinspection at a time that is convenient to Oncor and the Host Customer. The ServiceProvider may be required to be on-site during the inspection. Service Providers mustmake every effort to obtain a working phone number for each site. Should a contactnumber not be available, then the Service Provider must enter the Service Providersnumber as the Host Customers number and will be required to schedule the inspectionappointment for a time that is convenient for the Host Customer and Oncor. All EnergyEfficiency Measures installed in the HEE SOP must conform to or exceed the standardslisted in TRM 4.2.1. If Energy Efficiency Measures installed do not meet thesestandards, they will not be eligible for incentives. Service Providers will not be allowedto correct installation of Energy Efficiency Measures for the purpose of receivingI