Program Process

OVERVIEW

Participation in the Residential Standard Offer Program (Res SOP) involves these basic phases:

• Project Application -- Submit a Project Application to reserve incentive funding. Entergy must receive a signed Res SOP Agreement within 7 days of submitting an application.
• Project Application Review -- Entergy will review the Project Application for both participant and measure eligibility. Entergy will investigate the Project Sponsor affiliate status and will review the Project Sponsor insurance certificate and customer forms.
• Implementation Period -- Begin installation work. Submit periodic installation reports. Entergy reviews reports, including post-installation inspections at a sample of Host Customer project sites. Large Projects need complete 40% by June 30, 2009.
• Performance Period -- If required, conduct measurement and verification (M&V) activities and submit a Savings Report in order to receive the final energy and demand savings incentive payment.

PROGRAM PROCESS DIAGRAM

PROJECT APPLICATION

The first step in the Res SOP process is for the Project Sponsor to submit a completed Project Application for its proposed project. The Project Application includes information about the Project Sponsor, the nature of the sites at which the proposed project will be installed, the estimated kW and kWh impacts and the proposed measurement and verification approach.

Entergy will begin accepting applications on an announced date and will continue accepting applications until all funds have been reserved or until the end of the program year, whichever is earlier.

Standard Offer Agreement

Within 7 days of the on-line submittal, the Project Sponsor sends a signed copy of the Res SOP Agreement to Entergy.

During the course of this Res SOP, Entergy will not entertain proposed modifications to the Res SOP Agreement. Applicants are urged to review the Res SOP Agreement prior to submitting a Project Application.

A copy of the Res SOP Agreement is available in the Resources section.

PROJECT APPLICATION REVIEW

Entergy will review each Project Application for project sponsor and measure eligibility.

Entergy may request clarification of, or additional information about, any item submitted as part of the Project Application.

• Project Sponsors will have five days to respond to such requests.
• If the clarification or additional information provided is not sufficiently responsive, Entergy may, at its sole discretion, request additional information, or discontinue its evaluation of the submittal.

Any Project Sponsor submitting an unsuccessful Project Application may reapply for project funding by submitting another Project Application. However, the Project Sponsor will lose its initial position in the order of submittal for Budget Reservation purposes.

Affiliate Review

Entergy requires all Project Sponsors who receive funding to sign a declaration stating the existence or non-existence of affiliate relationships.

Approval of a Project Application

If Entergy approves the Project Application and there are no affiliate issues, Entergy will countersign the Res SOP agreement and return a copy to the Project Sponsor.

Non-Approval of a Project Application

Entergy may not approve a Project Application (PA) if:

• The PA is incomplete or inaccurate;
• The PA is received after all funding has been reserved;
• The Project Sponsor fails to meet program eligibility requirements;
• The Project Sponsor fails to submit the signed Res SOP within 7 days;
• The Project Sponsor is found to have made material misrepresentations in the PA;
• The Project Sponsor fails to comply with applicable federal, state and local laws and regulations;
• Changes occur in laws or regulations directly affecting the Res SOP; and
• The Project Sponsor is determined to be an affiliate of another approved Project Sponsor who has already reserved maximum funding.

DOCUMENT REVIEW

Insurance Certificate

After the Project Sponsor's project application has been approved and Entergy has countersigned the Res SOP Agreement, the project Sponsor must send Entergy a copy of its insurance certificate that names Entergy as an additional insured and includes a waiver of subrogation.

Project Sponsors should send their insurance certificate to the Program Manager.

Customer Documents

If the Project Sponsor chooses to use customer agreement forms other than those provided by Entergy, then Entergy must review and approve these forms for required customer protection language.

Project Sponsors should send their forms to the Program Manager.

NOTICE TO PROCEED

After Entergy has received, reviewed and approved the Project Sponsors insurance certificate and customer agreement forms, if any, then Entergy will send the Project Sponsor written notification to proceed with the installation of energy efficiency measures at Host Customer sites.

Installations completed before Entergy provides official notice to proceed may not be eligible for incentives.

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

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

Implementation Period

In the Implementation Period, the Project Sponsor performs marketing and implementation activities, and reports progress to Entergy on a regular basis.

Due to the requirement that Entergy achieve specified levels of kW savings for this program, it is important that specific milestones for measure implementation goals be established and reached. The goal of the reporting requirements is to allow Entergy to monitor each Project Sponsor's progress in a timely manner, and to allow Entergy to reallocate program funding, if necessary, in order to achieve its overall energy savings goals.

• Implementation reports must be completed and submitted electronically on official Project Implementation Report (PIRs) forms.
• Copies of the Customer Acknowledgements should be sent to Entergy by mail, fax or electronically to the Program Manager.

Implementation Penalty

Measure installations resulting in at least 40% of the Project Sponsor's total estimated incentive payments must be completed by the half-way point between the contract date and December 31st. For example, if Entergy executes a Res SOP Agreement on January 10th, then the mid-year milestone date would be July 7th.

• For Project Sponsors who fail to meet the milestone, but who have achieved a substantial percentage of their milestone goal, Entergy may withdraw reserved incentive funding according to the percentage below the 40% milestone. For example, if a Project Sponsor has achieved 30% of the goal by the milestone date, 10% of reserved incentive funding may be withdrawn.
• In the event the Project Sponsor has achieved little or no progress toward achieving the goal after six months, Entergy reserves the right to withdraw the Project Sponsor's entire reserved incentive funding.

PERFORMANCE PERIOD

Deemed Savings - One Incentive Payment

If the project consists of energy efficiency measures for which deemed savings have been approved by the PUCT and the Project Sponsor wishes to be paid entirely on the basis of these deemed savings values, then the Project Sponsor is eligible to receive 100% of incentive payments within 45 days after submitting a project implementation report and customer acknowledgements, subject to Entergy's on-site inspection results, lighting cap, and load factor cap.

Measured Savings - Two Incentive Payments

If the project consists of measures for which M&V is required, Project Sponsor will receive an initial payment that represents 40% of the total estimated incentive payment within 45 days after submitting a monthly implementation report and documents, subject to Entergy's post-installation inspection results.

Project Sponsor will receive a second and final payment that represents ~60% of the total estimated incentive payment within 30 days of submitting a measurement and verification report, subject to Entergy's review.

OTHER NOTES

Entergy will not reimburse any Project Sponsor for any costs incurred by participating in the Res/Com SOP, including costs of preparing the Project Application, reviewing or executing the Res/Com SOP Agreement, or preparing and submitting implementation or performance reports.