Residential/Hard To Reach/AC & HP Overview

RETRO-FIT PROGRAM TO REDUCE PEAK DEMAND

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

For 2011, Entergy is offering the following Standard Offer Programs:

Residential SOP (Res SOP) for Residential homes

Hard To Read (HTR SOP) for Low Income Residential homes

AC/HP Program for Residential homes

A copy of both Residential and Hard To Reach templates are available in the Resources section.

OBJECTIVES

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

• Encourage private sector delivery of energy efficiency products and services;

• Achieve customer energy and cost savings;

• Significantly reduce barriers to participation by streamlining program procedures and measurement and verification (M&V) requirements;

• Encourage participation by a wide range of Project Sponsors; and

• Produce demand, energy and bill savings in single-family "affordable housing" projects and multi-family projects.

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);

• Retail Electricity Providers (REPs); and

• Retailers that install the particular energy efficiency products sold as part of this prograam.

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 customer must receive distribution and transmission service from Entergy and be located in Texas.

INCENTIVE BASIS

Deemed Savings

Incentives are paid on the basis of deemed 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.

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