Incentives

Funds are available for Small Projects.

FUNDING

Funding is available for two projects types: Large Hard-to-Reach SOP projects that have a 10 kW minimum project size; and Small Projects that have no minimum project size.

FUNDING LIMITATIONS

To ensure that incentives are available for multiple projects, no project sponsor and its affiliates may receive more than 15% of Entergy's program budget in any funding year, less the small project set-aside.

• 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.

• 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 these limits prevent it from achieving its energy efficiency goal.

HOW FUNDING IS RESERVED

Funds are reserved for qualified project sponsors with approved applications on a first-come, first-served basis.

INCENTIVE PRICING

Standard incentive prices are offered for demand savings and energy savings. For the Hard-to-Reach customer class, incentive payments may not exceed 100% of avoided costs.

INCENTIVE PRICING LIMITATIONS

Load Factor Cap

For projects implemented under this Hard-to-Reach Standard Offer Program (HTR 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.

Maximum Payment
per kW reduction

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.

HOW ARE INCENTIVES PAID?

Deemed Savings - One Payment

A project that only utilizes deemed savings to calculate demand and energy savings will receive an "Implementation 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 "Implementation Payment" that represents 40% of the total estimated incentive payment. 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).

OTHER NOTES

Under no circumstances will Entergy make a total incentive payment (i.e., the sum of the Implementation Payment and the Performance Payment) that is more than 100% of the total estimated incentive payment specified in the HTR SOP Agreement. If the final M&V 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 receipt of an invoice from Entergy.

No Project Sponsor has unconditional entitlement to the HTR SOP incentive funds.

In all cases, payment procedures and amounts specified in the HTR SOP Agreement supercede this and any other documents.