Incentives

FUNDING

Funding is available for 2011 Entergy Residential SOP, Hard to Reach SOP and AC/HP Programs as per the guidelines below:

A Project Sponsor may submit 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 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. The sponsors will be approved on the basis of past performance and/or a first-come, first-served basis.

INCENTIVE PRICING

Standard incentive prices are offered for demand savings and energy savings. For this Standard Offer Program, the incentive prices may not exceed 50% of the avoided cost of supplying electricity.

HOW ARE INCENTIVES PAID?

Deemed Savings - One Payment

Most projects use the Deemed Savings method. 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

If a project needs to use the Measured Savings method, then this is the process for payment of incentives. 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).

For measured savings projects, Entergy will use the following formula to calculate the amount of the Implementation Payment:

Implementation Payment = [((estimated kW) * ($/kW incentive)) + ((estimated kWh) * ($/kWh incentive))] * 40%

The second payment (the "Performance Payment") will be based on the one-year energy savings that the Project Sponsor measures and documents in its M&V Report. The Performance Payment may be up to 60% of the total estimated incentive included in the Res SOP Agreement, and will be calculated as follows:

Performance Payment = [((measured kW saved) * ($/kW incentive)) + ((measured kWh saved) * ($/kWh incentive))] - Implementation 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 SOP Contract 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 SOP Contract 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.