Incentives
FUNDING
Funding is available to pay incentives for qualifying energy efficiency
projects in Large Commercial facilities.
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Funding for 2008
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Large Commercial
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$425,350
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FUNDING LIMITATIONS
To ensure that incentives are available for multiple projects, no project
sponsor and its affiliates may receive more than 20% of Entergy's program
budget in any funding year.
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Maximum Incentive to
Project Sponsor
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2008
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Large Commercial
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$85,070
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Project Sponsors may apply for the maximum incentive amount.
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A Project Sponsor 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.
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These limits may be waived if Entergy requests and is granted a waiver from
the PUCT. Such a waiver would be requested if Entergy determines that this
limit would prevent it from achieving its energy efficiency goal.
HOW FUNDING IS RESERVED
Funds are reserved on a first-come, first-served basis.
INCENTIVE PRICING
Standard incentive prices are offered for demand savings and/or energy
savings. The incentive prices may not exceed 35% of the avoided costs of
supplying electricity.
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Incentive Payment
per kW
Reduction
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Incentive Payment
per annual kWh Save
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Large Commercial
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$174
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$0.059
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INCENTIVE PRICING LIMITATIONS
Load Factor Cap
For projects implemented under this Large Commercial Standard Offer Program
(Com SOP), there is a limit on the ratio of kWh payment to kW payment. This is
to limit incentives for projects that produce relatively little of their
energy savings during Entergy's peak summer demand period.
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Maximum Payment per kW reduction
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Large Commercial
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$435
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Example 1 A commercial HVAC project saved 25 kW of summer peak demand and
50,000 annual kWh. The unadjusted incentive payment for this project would be:
((25 x $174) + (50,000 x $0.059) = $7,300 The maximum allowable incentive for
this project is 25 kW multiplied by $435, or $10,875. This project would not
be subject to the load factor cap.
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Example 2 A commercial customer's variable-speed motor retrofit saves 20 kW of
summer peak demand and 90,000 annual kWh. The unadjusted incentive payment for
this project would be: (20 x $174) + (90,000 x $0.059) = $8,790. The maximum
allowable incentive for this project is 20 kW multiplied by $435, or
$8,700. This project would be subject to the load factor cap.
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Lighting Cap
If the fraction of a project sponsor's kW or kWh savings derived from lighting
measures exceeds 65% of the total savings, the incentive amounts paid to the
project sponsor for the lighting measures shall be reduced by an adjustment
factor. The application of these adjustment factors to kW and kWh payments
ensures that the lighting measure incentives paid shall not exceed 65% of the
total incentive payable if the project had consisted entirely of non-lighting
measures.
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Example 3 A project at a commercial office building is projected to result in
15 kW of lighting savings and 4 kW of HVAC savings. In addition to the demand
savings, the lighting measures will provide 60,000 kWh of annual energy
savings, and the HVAC measures will provide 8,000 kWh of annual energy
savings. Percentage of kW savings from lighting = 15/19 = 78.9%. This project
is subject to the lighting cap. Adjusted kW = (19 x 0.65) + 4 = 16.35 kW
Adjusted kWh = (68,000 x 0.65) + 8,000 = 52,200 kWh The Lighting Cap adjusted
incentive payment for this project would be: (16.35 x $174) + (52,200 x
$0.059) = $5,924.70 The maximum allowable incentive for this project is 16.35
kW multiplied by $435, or $7,112.25. This project would not be subject to the
load factor cap.
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HOW ARE INCENTIVES PAID?
Deemed Savings - One Payment
A project that only utilizes deemed savings to calculate demand and energy
savings will receive an "Installation Payment" that represents 100% of the
total estimated incentive payment after the project is installed, documented,
and accepted.
Measured Savings - Two Payments
After the project is installed, documented, and accepted, the project sponsor
will receive an "Installation Payment" that represents 40% of the total
estimated incentive payment.
For measured savings projects, Entergy will use the following formula to
calculate the amount of the initial payment:
Installation Payment = [((estimated kW) * ($/kW incentive)) +((estimated kWh)
* ($/kWh incentive))] * 40%
After all measurement and verification activities are complete, documented,
and accepted, the project sponsor will receive the "Performance Payment" based
on verified savings (up to 60% of the total estimated incentive payment).
The second payment (the "Performance Payment") will be based on the one-year
energy savings that the Project Sponsor measures and documents in its Savings
Report. The Performance Payment may be up to 60% of the total estimated
incentive included in the Com SOP Agreement, and will be calculated as follows:
Performance Payment = [((measured kW saved) * ($/kW incentive)) + ((measured
kWh saved) * ($/kWh incentive))]- Installation Payment
OTHER NOTES
Under no circumstances will Entergy make a total incentive payment (i.e., the
sum of the Installation Payment and the Performance Payment) that is more than
100% of the total estimated incentive payment specified in the Com SOP
Agreement. If the Savings Report indicates that the measured savings are less
than the estimated savings, then the total incentive payment will be less than
the payment estimated in the Agreement. If the above formula results in a
negative amount, the Project Sponsor must refund that amount to Entergy within
30 days of the submittal of the Savings Report.
No Project Sponsor has an unconditional entitlement to the Com SOP incentive
funds.
In all cases, payment procedures and amounts specified in the Com SOP
Agreement supercede this and any other documents.
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