Participation Requirements

The Residential Standard Offer Program (Res SOP) involves three types of participants: the program administrator (Entergy), Project Sponsors, and Host Customers.

PROGRAM ADMINISTRATOR

As program administrator, Entergy's responsibilities include:

PROJECT SPONSOR

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

• Energy service companies (ESCOs), including unregulated utility subsidiaries;
• Local contractors; Regional and Local contractors
• Not-for-profit housing or social service organizations;
• National or local companies that provide energy-related products (e.g., lighting or HVAC); and
• Retailers are eligible if they install the particular energy-efficient 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 Res SOP procedures and deadlines;
• Completing the installation and commissioning of approved projects;
• Complying with mandatory progress milestones;
• For Measured Savings projects, developing plans for the M&V of energy savings at participating customer sites;
• For Measured Savings projects, 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

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 withwhom 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

The small commercial or residential customer receiving energy efficiency services in their homes or business is called the Host Customer. To participate in this program, the Host Customer must receive service from Entergy's distribution utility in Texas.

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.

All existing single-account small commercial customers with a peak demand less than or equal to 100 kW at the project site are eligible for the Res SOP.

Existing multiple-account small commercial customers are eligible to participate in this program if their peak-load at the project site is similarly less than or equal to 100kW and all sites under common ownership have an aggregated peak that is lest than 250kW. Host Customers not meeting the size limitation of the Res/Com SOP may be eligible to participate in the Large Commercial / Industrial SOP.

EXISTING SINGLE-FAMILY RESIDENTIAL

All existing single-family and mobile homes are eligible for this program.

EXISTING MULTI-FAMILY RESIDENTIAL

Existing multi-family residential homes are eligible for this program, subject to the following restrictions:

• For individually-metered properties, each dwelling unit is considered a separate residential account, and the common areas are considered either small or large commercial accounts, depending on their aggregate demand.
• Master-metered buildings are considered to be small commercial facilities, provided the peak demand at the project site is less than 100kW and the aggregated peak demand for all sites under common ownership is less than 250kW. If the aggregate demand is greater than 250kW, then the project would likely qualify under Entergy program for large commercial and industrial customers.

Project Sponsors must have Entergy's approval to proceed with the installation of measures at multi-family properties.

Project Sponsors must have Entergy's approval to proceed with the installation of lighting measures at small commercial sites.

NEW CONSTRUCTION OF "AFFORDABLE HOUSING"

Projects targeting populations with incomes at or below 80% of the statewide or local median family income are eligible to participate in the affordable housing new construction component of the Res/Com SOP. Single-family homes constructed under the following programs are categorically eligible:

• Habitat for Humanity;
• HOME;
• CDBG; or
• Housing Trust Funds (state or local).

Additional housing projects may be eligible if it can be demonstrated that they target low-income homebuyers.