Overview

RETRO-FIT PROGRAM TO REDUCE PEAK DEMAND

The Hard-to-Reach Standard Offer Program (HTR SOP) provides incentives for the retrofit installation of a wide range of measures that reduce energy costs, reduce peak demand and save energy in the homes of low-income residential customers. This program complies with the PUCT-approved Hard-to-Reach Program Template that was revised on August 21, 2003.

OBJECTIVES

This program is designed to achieve a high level of energy and demand savings in the low-income residential sector. The program does not prescribe technologies or end uses, but provides a framework through which energy efficiency service providers can evaluate the usefulness of a wide range of measures at low-income customers' homes. The primary objective of this program is to achieve cost-effective reduction in peak summer demand. Additionally, the HTR SOP is designed to:

• Provide meaningful demand and/or energy savings that contribute to the achievement of Entergy's energy efficiency goals and reduce energy costs for the end-use customer;
• Enhance program cost-effectiveness by minimizing lost opportunities for demand and energy savings in individual residences;
• Provide energy efficiency improvements to individual households at no or very low cost; and
• Provide energy efficiency improvements in apartments occupied by Hard-to-Reach customers with contributions from building owners.

ELIGIBLE PROJECT SPONSORS

Any entity meeting the application requirements is eligible to participate in the program as a project sponsor. Eligible project sponsors include:

National or local energy service companies (ESCOs);

• National or local companies that provide energy-related services (e.g., contracting) or products (e.g., lighting, HVAC equipment);
• Not-for-profit housing or social service organizations;
• Retail Electricity Providers (REPs); and
• Retailers that install the particular energy efficiency products sold as part of this program.

Entergy cannot provide incentives directly to residential customers. Entergy will only provide incentives to a qualified project sponsor that provides energy efficiency services.

ELIGIBLE HOST CUSTOMER

A participating low-income residential customer must receive distribution service from Entergy and be located in Texas.

Low-income residential customers are defined as a unique customer class titled "Hard-to-Reach." The Hard-to-Reach (HTR) customer class includes households with income at or below 200% of the federal poverty level. Information from the 2000 U.S. Census shows that more than one-third of the people in Entergy's Texas service area meet this criterion.

Documenting Eligibility of Hard-to-Reach Customers

To document the Hard-to-Reach status of a customer living in a single-family home, the Project Sponsor must have the resident complete and sign the PUCT-approved Customer's Self Certification of Income Eligibility Form.

For multi-family projects, Project Sponsors are eligible to receive the Hard-to-Reach incentive payment if at least 75% of the residents qualify as Hard-to-Reach. To document the Hard-to-Reach status of a multi-family facility, Project Sponsors must complete the PUCT-approved Texas Property Owner Certification of Tenant Income Eligibility Form.

INCENTIVE BASIS

Energy efficiency projects completed in the homes of residential customers who qualify as Hard-to-Reach are eligible for incentives up to 100% of the avoided cost of supplying the home with electricity.

Deemed Savings

Incentives are paid on the basis of deemed or stipulated savings, which are standardized savings values or simple formulas for a wide range of measures in representative building types.

Measured Savings

If deemed savings have not been established for a qualifying energy efficiency measure, then incentives may be paid on the basis of verified peak demand and energy savings using the International Performance Measurement and Verification Protocol.

OTHER NOTES

Entergy will not directly market any energy efficiency-related product or service to its customers. Entering into an agreement with Entergy does not imply Entergy's endorsement or approval of any Project Sponsor's company, product, or service. Entergy makes no representation of the benefits of any particular technology or energy efficiency measure eligible for incentives under this program. The selection of an energy efficiency measure is at the discretion of the individual customers and their energy efficiency service provider.

A Project Sponsor shall not use Entergy's corporate name, trademark, trade name, logo, identify or any affiliation for any reason, including to solicit customers for participation in its project, without Entergy's prior written consent.