Participation Requirements

The Hard-to-Reach Standard Offer Program (HTR SOP) involves three types of participants: the program administrator (Entergy), Project Sponsors, and Host Customers.

PROGRAM ADMINISTRATOR

As program administrator, Entergy's responsibilities include:

• Conducting workshops for potential project sponsors;
• Reviewing and approving or rejecting Project Applications;
• Approving plans for the M&V of energy savings at participating customer sites if a measured savings approach is adopted;
• Performing certain inspection activities; and
• Authorizing and issuing incentive payments.

PROJECT SPONSOR

A Project Sponsor is any organization, group, or individual who contracts with Entergy to provide energy savings under the HTR SOP. The following types of organizations are eligible to participate as Project Sponsors:

• 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 requires Project Sponsors to demonstrate their financial, technical, experiential, and managerial qualifications as part of the application process to help ensure that the proposed projects will be successful in delivering the estimated energy savings. Entergy also requires Project Sponsors and their subcontractors to carry all statutorily required insurance.

A Project Sponsor's responsibilities include:

• Identifying potential project opportunities;
• Developing project documentation in accordance with HTR SOP procedures and deadlines;
• Verifying the income eligibility of Hard-to-Reach customers according to procedures established by the Public Utility Commission of Texas (PUCT);
• Enter into an agreement with the Host Customer that describes the work to be done and the price to be paid. The agreement also includes consumer protection provisions and a provision to allow Entergy to inspect the installations in the customer's home.
• Completing the installation and commissioning of approved projects;
• Complying with mandatory progress milestones;
• For Measured Savings projects, developing and performing M&V activities; and
• Submitting periodic project implementation reports (PIR).

Supplier Diversity

Entergy has a distinctive and proud history of supporting the economic development of every segment of the business community, including women, minority and disabled veteran-owned business enterprises (MWBE).

Woman-Owned - A business that is at least 51% owned by female U.S. citizens who control and operate the business. "Control" in this context means exercising the power to make policy decisions. "Operate" in this context means being actively involved in the day-to-day management.

Minority-Owned - A business enterprise that is at least 51% owned, controlled, and operated by individuals of African American, Hispanic, Native American, or Asian-Pacific decent. The business owner must be a U.S. citizen.

Disabled Veteran-Owned - A business enterprise that is at least 51% owned, controlled, and operated by disabled veterans.

Entergy is committed to pursuing business relationships with such enterprises through all aspects of purchasing and contracting, including energy efficiency programs to comply with SB7.

Identification as a MWBE or the use of MWBE subcontractors/suppliers is not a requirement for participation in Entergy's energy efficiency programs. Project funding is awarded on a first come, first served basis.

Affiliate Status

In any funding year, no Project Sponsor and its affiliates may receive more than 10% of Entergy's HTR SOP program budget, excluding a set-aside for small contractor projects.

Entergy will utilize the definition of "affiliate" provided by the PUCT for determining Project Sponsor's affiliate status.

25.181 (c) (1) Affiliate:

1. A person who directly or indirectly owns or holds at least 5.0% of the voting securities of an energy efficiency service provider;
2. A person in a chain of successive ownership of at least 5.0% of the voting securities of an energy efficiency service provider;
3. A corporation that has at least 5.0% of its voting securities owned or controlled, directly or indirectly, by an energy efficiency service provider;
4. A corporation that has at least 5.0% of its voting securities owned or controlled, directly or indirectly, by:
   i. a person who directly or indirectly owns or controls at least 5.0% of the voting securities of an energy efficiency service provider; or
   ii. a person in a chain or successive ownership of at least 5.0% of the voting securities of an energy efficiency service provider; or
5. A person who is an officer or director of an energy efficiency service provider or of a corporation in a chain of successive ownership of at least 5.0% of the voting securities of an energy efficiency service provider;
6. A person who actually exercises substantial influence or control over the policies and actions of an energy efficiency service provider;
7. A person over which the energy efficiency service provider exercises the control described in subparagraph (F) of the paragraph;
8. A person who exercises common control over an energy efficiency service provider, where "exercising common control over an energy efficiency service provider" means having the power, either directly or indirectly, to direct or cause the direction of the management or policies of an energy efficiency service provider, without regard to whether that power is established through ownership or voting of securities or any other direct or indirect means; or
9. A person who, together with one or more persons with whom the person is related by ownership, marriage or blood relationship, or by action in concert, actually exercises substantial influence over the policies and actions of an energy efficiency service provider even though neither person may qualify as an affiliate individually.

HOST CUSTOMER

Low-income residential customers living in single-family housing units are eligible to have energy efficiency measures installed in their home.

For individually-metered multi-family properties, each dwelling unit is considered as a separate residential account, and the common areas are considered as either small or large commercial accounts, depending upon their aggregate demand.

Master-metered multi-family buildings are considered to be small commercial facilities, provided the aggregate demand of all such facilities owned by the customer is less than 100 kW. If the facilities' aggregate demand is greater than 100 kW, then the project would likely qualify under Entergy's SOP for large commercial and industrial customers.

A host customer's responsibilities include:

• Committing to an energy-efficiency project;
• Entering into an agreement with the selected Project Sponsor; and
• Providing Entergy, and any statewide M&V contractor, access to project facilities both before and after project completion for installation inspection.