Project Requirements

PROJECTS MUST BE COMPREHENSIVE

To establish a comprehensive approach to energy efficiency in each individual household, Project Sponsors are required to evaluate specific measures for installation, meet minimum criteria, and follow set priorities for financing of measures through the HTR SOP.

There are three categories of measures - Envelope Energy Waste, Interior Usage, and HVAC Efficiency. At least one Envelope Energy Waste measure must be installed in each single-family dwelling unit and multi-family building before subsequent categories can be considered.

Envelope Energy Waste

• Single-family insulation measures (all exterior walls, ceiling, or floor with pier and beam);
• Multi-family insulation measures (all exterior walls, ceiling, or floors with pier and beam);
• Air infiltration control measures (e.g. weatherstripping and caulking); and
• HVAC duct integrity (repairs, replacements, and sealing with mastic or aerosol-based duct sealant).

• Lighting (compact fluorescent lights with a minimum of 3 hour daily usage);
• Water heating (shower heads, aerators, pipe insulation, and water heater jackets); and
• Refrigerator replacement (energy-efficient refrigerator retrofit).

• Room air conditioners (plug-in units allowed);
• Split systems (complete coil and compressor replacement); and
• Packaged unit (installed to manufacturer's specifications).

DIAGNOSTIC TESTING REQUIREMENTS

The HTR SOP requires Project Sponsors to perform carbon monoxide and air infiltration testing to ensure that the health and safety of customers are not jeopardized by any energy efficiency measure installed as part of this program.

Carbon Monoxide Test

Prior to the installation of any air infiltration control, duct sealing, or wall insulation measure, carbon monoxide (CO) testing will be conducted for each residence (single-family and multi-family) with combustion (e.g., natural gas or propane) equipment or appliances.

Project Sponsors must not install any air infiltration control, duct sealing, or wall insulation measure that would result in the ambient air CO level exceeding 9 parts per million at project completion.

Blower Door Test

To evaluate wall insulation, air infiltration control measures, or duct sealing, the Project Sponsor will conduct pre- and post-installation blower door tests for each residence (single-family and multi-family). The purpose of the post-installation test is to verify that the final air exchange rate does not fall below the minimums set forth in the following table:

Minimum Final Air Exchange Rate*

* Measured in cubic feet per minute at 50 Pascal per square foot of conditioned area.

• Well Shielded is defined as urban areas with high buildings or sheltered areas, and building surrounded by trees, bermed earth, or higher terrain.
• Normal is defined as buildings in a residential neighborhood or subdivision setting, with yard space between buildings. 80-90% of houses fall in this category.
• Exposed is defined as buildings in an open setting with few buildings or trees around and buildings on top of a hill or ocean front, exposed to winds.

EFFICIENCY STANDARDS

Entergy has designed the HTR SOP to encourage electric energy efficiency improvements that go above and beyond the efficiency gains typically achieved in retrofit or replacement projects. Consequently, energy and demand savings credit will be based only on reductions that exceed current industry accepted minimum efficiency standards, where applicable.

PROJECT REQUIREMENTS

The minimum project size is 10 kW of deemed or measured peak demand savings. Smaller projects that are similar in nature (type of facility, measures installed, etc.), but do not meet the minimum size requirements may be aggregated by the Project Sponsor to meet the minimum project size requirement.

A maximum of 65% of a project's kW and kWh incentive payments may come from energy-efficient lighting equipment and lighting controls (except day lighting). Separate projects may also be aggregated to ensure that no more than 65% of the total project's capacity and energy savings payments are derived from energy-efficient lighting equipment or lighting controls.

INSTALLATION STANDARDS

No used or reconditioned equipment shall be qualified for incentives. All equipment shall be new.

Project Sponsor much follow all state and local building codes. Project sponsor shall be responsible for licenses, building permits and inspections. Any fees/payments for licenses, building permits, and inspections shall be paid for by the Project Sponsor.

INELIGIBLE MEASURES

• Measures that do not raise efficiency above current standards;
• Measures with an expected life of less than 10 years (except CFL);
• Cogeneration and self-generation projects;
• Load shifting/load management measures;
• Load reductions caused by building vacancies;
• Measures that rely solely on customer behavior or require no capital investment;
• Measures that decrease building plug loads, such as "Green Plugs" or computer inactivity time-out controls;
• Measures for which incentives were received under another Entergy program;
• Repair and maintenance projects;
• Energy-efficient gas measures when replacing non-electric technologies; and
• Measures that result in negative environmental or health effects.

OTHER NOTES

As a general rule, measures involving "plug loads" (equipment or appliances that are plugged into standard electrical outlets) are not permitted. This restriction may be waived by Entergy if the Project Sponsor provides reasonable assurance that the energy and/or demand savings associated with such measures are likely to persist over a 10-year period of time and that quantifiable energy and/or demand reduction meeting the requirements of the PUCT's Energy Efficiency Rule can indeed be achieved through the proposed measure(s).

If the Project Sponsor pursues measures for which deemed savings values have not been approved by the PUCT, then the Project Sponsor must follow the International Performance Measurement and Verification Protocol (IPMVP).

Entergy will be the final authority on whether any particular measure is eligible for incentives.