Program Process

Participation in the Com Standard Offer Program involves five basic phases:

• Submit an Initial Application (IA) in order for Entergy to screen the project for measure and Project Sponsor eligibility. If the IA is accepted, Entergy reserves funds for the Project Sponsor.
• Prepare and submit a Final Application (FA).
• Enter into a Standard Offer Program Contract with Entergy.
• Install the project and submit an Installation Report (IR) to receive an initial incentive payment (40% Installation Payment).
• Conduct measurement and verification (M&V) activities and submit a Savings Report (SR) in order to receive the final energy and demand savings incentive payment (~60% Performance Payment).

PROGRAM PROCESS DIAGRAM

INITIAL APPLICATION

The first step in the Com SOP process is for the Project Sponsor to submit a completed Initial Application (IA) for its proposed project. The IA includes information about the Project Sponsor, information about the nature of the sites at which the proposed project will be installed, the estimated kW and kWh impacts, and information regarding the proposed measurement and verification approach.

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

• Submittal of Initial Applications will be via a designated web site.
• IA's will be considered on a first-come, first-served basis.
• IA's will be accepted on December 5, 2007 at 10:00 AM CST .

Large Commercial customers may act as their own Project Sponsor. For these projects, the application process is streamlined, with a number of the requirements reduced or eliminated.

• There is no minimum project size; and
• Qualification thresholds for self-sponsoring customers are reduced in several areas.
  

However, the extent to which self-sponsoring customers need to demonstrate that the proposed measures will actually provide the projected kW and kWh energy savings remains the same as for projects proposed by Third-Party Sponsors.

Initial Application Agreement

The IA process requires that the Project Sponsor sign an Initial Application Agreement. The terms of this agreement are standard for all Project Sponsors and are not negotiable. Project Sponsors are urged to review the IA Agreement before submitting a project application.

IA Agreement

Initial Application Review

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

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

Any Project Sponsor submitting an unsuccessful Initial Application may reapply for project funding by submitting another Initial Application. However, the Project Sponsor will lose its original position in the order of submittal for reserving funds.

If Entergy approves the Initial Application, the Project Sponsor will be so notified, in writing.

Non-approval of an Initial Application

Entergy may not approve an Initial Application (IA) if:

• The IA is incomplete;
• The IA is received after all funding has been reserved;
• The Project Sponsor fails to meet program eligibility requirements;
• The Project Sponsor fails to submit the required supporting documentation;
• The Project Sponsor is found to have made material misrepresentations in the IA;
• The Project Sponsor fails to comply with applicable federal, state and local laws and regulations; and
• Changes occur in laws or regulations directly affecting the Com SOP;

FINAL APPLICATION

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

• Detailed information about the host customer site(s);
• The existing and proposed retrofit equipment inventories, including equipment counts, equipment efficiencies, and equipment nameplate data;
• Building occupancy and equipment operating schedules;
• Engineering calculations estimating energy and demand savings based on the efficiency of the proposed equipment compared to that of new, minimum-standard efficiency equipment;
• A proposed project-specific M&V plan describing how the Project Sponsor will measure and verify energy and demand savings, the methods for calculating actual savings, and a schedule for conducting and reporting on M&V activities. In some cases, pre-installation M&V activities may be required to accurately estimate savings; and
• Revised work plan for project design, implementation, operation, and management, including the anticipated project timeline.

To view the forms that comprise the Final Application, click on Next Steps.

Project Sponsor - Customer Agreement

The FA includes, as an attachment, a copy of a Project Sponsor-Customer Agreement. This document must contain language that makes it clear that Entergy is not a party to the contract to install energy efficiency measures at the Customer's site. Project Sponsors are urged to review required customer agreements before submitting a project application.

Customer Agreement.PDF

Final Application Review

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

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

Where FA incentive estimates differ from the incentive funds reserved in the IA, the FA savings and incentive estimates will take precedence over the IA, as the FA should include a more detailed and accurate estimate of demand and energy savings.

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

STANDARD OFFER AGREEMENT

The third step in the Com SOP process is for the Project Sponsor and Entergy to execute a Standard Offer Agreement outlining the terms and conditions for the project.

During the course of this Com SOP, Entergy will not entertain proposed modifications to the Com SOP Agreement. Applicants are urged to review the Com SOP Agreement prior to submitting a project application. The executed Com SOP Agreement must be returned to Entergy within 30 days.

2008 Com SOP Agreement

Baseline Inspection

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

• All baseline equipment is still in place and operational; and
• New equipment installation, or old equipment demolition, has not begun.

IMPLEMENTATION PERIOD

The fourth step in the Com SOP process is for the Project Sponsor to install the energy efficiency measures at the Customer's site. Installation must be completed by November 15th in the current funding year. That is, projects receiving incentives from the 2008 Budget must be installed by October 31, 2008.

Installation Report

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

The demolished and actual installed retrofit equipment inventories, including equipment counts, equipment efficiencies, and equipment nameplate data;

• Updates to building occupancy and equipment operating schedules;
• Updated engineering calculations estimating energy and demand savings based on the efficiency of the actual installed equipment compared to that of new, minimum-standard efficiency equipment; and
• A final project-specific M&V plan describing how the Project Sponsor will measure and verify energy and demand savings, the methods for calculating actual savings, and a schedule for conducting and reporting on M&V activities.

To view the forms that comprise the Installation Report, click on Next Steps.

Post-Installation Inspection

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

• The equipment specified in the Installation Report has been installed; and
• The M&V plan is being followed in accordance with the approved Final Application.

Installation Payment

Along with the Installation Report, Project Sponsors should submit an invoice for the first incentive payment - the Installation Payment. This payment is 40% of the incentive estimate approved in the Installation Report.

Entergy's Installation Report review cycle, including a post-installation site inspection and invoice payment, is 45 days.

PERFORMANCE PERIOD

The fifth and final step in the Com SOP process is called the performance period. During this time, the actual energy and demand savings that result from the energy efficiency project are quantified through measurement and verification (M&V) activities.

Savings Report

The time required to complete M&V activities will range from less than a month, up to 12 months, depending on the approach chosen. Within 30 days of the completion of all M&V activities, the Project Sponsor submits a Savings Report (SR) documenting the project's measured and verified demand and energy savings. To view the forms that comprise the Savings Report, click on Next Steps.

Performance Payment

In conjunction with the SR, the Project Sponsor should submit an invoice for the final incentive payment - the Performance Payment. This payment is based on the project's verified savings minus the amount paid in the Installation Payment.

The total incentive payment (installation payment plus performance payment) cannot exceed the incentive payment listed in the Final Application.

Entergy's Savings Report review cycle, including invoice payment, is 30 days.

OTHER NOTES

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

Entergy will post updates of available funds on its web site.

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