Oncor - Low-Income Weatherization Standard Offer Program

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2013 Low-Income Weatherization Standard Offer Program

LOW-INCOMEWEATHERIZATION

STANDARD OFFER PROGRAM

2013 Program Manual and Contract Documents

J anuary 2013


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TABLE OF CONTENTS

1 LIW: PROGRAM DESIGN ......................................................................................................... 11.1 PROGRAM DESCRIPTION ............................................................................................... 11.2 PROGRAM PARTICIPANTS ............................................................................................. 31.3 PROJ ECT OPTIONS ........................................................................................................ 4

1.3.1 LARGE PROJECT OPTION ................................................................................. 51.3.2 SMALL PROJECT OPTION ................................................................................. 6

1.3.3 MULTIFAMILY PROJECT OPTION ..................................................................... 71.4 SERVICE PROVIDER, CUSTOMER, MEASURE, AND PROJ ECT ELIGIBILITY ............ 9

1.4.1 SERVICE PROVIDER ELIGIBILITY ..................................................................... 91.4.2 HOST CUSTOMER ELIGIBILITY ....................................................................... 101.4.3 ENERGY EFFICIENCY MEASURE ELIGIBILITY .................................................. 121.4.4 DIAGNOSTIC TESTING ......................................................................................... 141.4.5 CARBON MONOXIDE TEST SPECIFICATIONS ................................................. 15

1.5 PROGRAM INCENTIVES AND PAYMENT PROCEDURES .......................................... 161.5.1 PAYMENT PROCEDURE ..................................................................................... 181.5.2 GEOGRAPHIC ADJUSTMENTS ........................................................................ 18

1.6 PROGRAM PROCESS AND TIMELINE ......................................................................... 181.6.1 PROJECT APPLICATION PROCESS ................................................................ 181.6.2 PRODUCTION PERIOD ..................................................................................... 20

AGREEMENT TERMINATIONS ................................................................................................ 201 LIW: PROJECT APPLICATION .............................................................................................. 21

2.1 GENERAL PROJ ECT APPLICATION GUIDELINES ...................................................... 212.2 APPLICATION PROCESS: LARGE PROJ ECT OPTION ............................................... 22

2.2.1 POTENTIAL SERVICE PROVIDER INFORMATION ............................................. 232.2.2 QUALIFICATIONS ................................................................................................. 23

2.3 APPLICATION PROCESS: SMALL PROJ ECT OPTION .................................................. 242.3.1 POTENTIAL SERVICE PROVIDER INFORMATION ......................................... 242.3.2 QUALIFICATIONS .............................................................................................. 25

2.4 APPLICATION PROCESS: MULTIFAMILY PROJ ECT OPTION ..................................... 252.4.1 POTENTIAL SERVICE PROVIDER INFORMATION ......................................... 272.4.3 SECURITY DEPOSIT AND MILESTONES ........................................................ 28

2.5 PROJ ECT APPLICATION SUBMITTAL PROCEDURE .................................................. 28

2.6 PROJ ECT APPLICATION REVIEW PROCEDURES ..................................................... 292.6.1 PROJECT APPLICATION EVALUATION .......................................................... 292.6.2 APPLICATION CONFIDENTIALITY ................................................................... 292.6.3 SUBMISSION OF FALSE, MISLEADING, OR INCORRECT INFORMATION .. 302.6.4 LIW SOP PARTICIPATION COSTS ................................................................... 302.6.5 PARTICIPATION RESTRICTIONS AND ADDITIONAL QUALIFICATIONS ...... 302.6.6 IMPACTS OF PRIOR YEAR SERVICE PROVIDER PERFORMANCE ............. 302.6.7 SUPPLEMENTAL PROGRAM INFORMATION ................................................. 31

3 LIW: PRODUCTION PERIOD .................................................................................................. 333.1 PRODUCTION PERIOD .................................................................................................. 333.2 REQUIRED SUBMITTALS .............................................................................................. 33

3.2.1 PROJECT PRODUCTION REPORTS ............................................................... 333.2.2 HOST CUSTOMER AGREEMENTS AND CUSTOMER CERTIFICATES ........ 35

3.2.3 PROJECT INVOICES ......................................................................................... 353.3 SUBMITTAL REVIEW PROCEDURES ........................................................................... 36

3.3.1 ADMINISTRATIVE REVIEW .............................................................................. 363.3.2 INSTALLATION INSPECTIONS ......................................................................... 363.3.3 INCENTIVE ADJUSTMENTS ............................................................................. 373.3.3.1ADJUSTMENTS DUE TO INSPECTIONS ......................................................... 373.3.4 DISPUTED PAYMENT PROCEDURE ............................................................... 373.3.5 FAILURE RATE .................................................................................................. 37

4 LIW: CONTRACTUAL PROVISIONS ...................................................................................... 394.1 NO ONCOR EMPLOYEE INVOLVEMENT WITH SERVICE PROVIDER ...................... 39


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4.2 COMPLIANCEWITH PROGRAM REQUIREMENTS .................................................... 394.3 REQUIRED PROGRAM DOCUMENTS .......................................................................... 414.4 PROJ ECT IMPLEMENTATION ....................................................................................... 414.5 INCENTIVE PAYMENTS ................................................................................................. 434.6 AUDIT AND RECORDS ................................................................................................... 434.7 INDEMNITY ..................................................................................................................... 444.8 AMENDMENT .................................................................................................................. 44

5 LIW: PERMITS, LICENSES, AND COMPLIANCE WITH LAW .............................................. 45

6 LIW: APPENDIX ....................................................................................................................... 48

TECHNICAL RESOURCE MANUAL (TRM)TRM 3.1 PROGRAM ADDENDUM TO THE AMENDED AND RESTATED TEXAS

ENERGY EFFICIENCY MARKET AGREEMENT

TRM 3.1 SUPPLEMENTAL PROJ ECT INFORMATION

TRM 3.2 SMALL PROJ ECT OPTION INSURANCE REQUIREMENTS

TRM 3.2 LARGE AND MULTIFAMILY PROJ ECT OPTION INSURANCE

REQUIREMENTS

TRM 5.1 APPROVED DEEMED SAVINGS MEASURES

TRM 2 GLOSSARY

TRM 3.1 CUSTOMER DISCLOSURE NOTICE FORM

TRM 3.1 HOST CUSTOMER AGREEMENT AND CERTIFICATE

TRM 3.4 POVERTY INCOME GUIDELINES

TRM 3.4 INCOME ELIGIBILITY CERTIFICATE

TRM 4.2 INSTALLATION MEASURE GUIDELINES

TRM 4.2 APPROVED MEASURES INSTALLATION LIST

TRM 4.2 INSTALLATION STANDARDS

TRM 3.3 ACTIONS DOCUMENT FOR SERVICE PROVIDERS PARTICIPATINGIN THE HOME ENERGY EFFICIENCY AND/OR LOW-INCOMEWEATHERIZATION HOME ENERGY EFFICIENCY PROGRAMS


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Chapter 1, Program Design

2013 Low Income Weatherization Standard Offer Program 1

1 LIW: PROGRAM DESIGN

For definitions of certain undefined capitalized terms used herein, please refer to theGlossary in Technical Resource Manual (TRM) 2.

1.1 PROGRAM DESCRIPTION

Oncor is a regulated electric transmission and distribution service provider thatserves 10 million customers across Texas. Using cutting edge technology, more than3,000 employees work to safely maintain reliable electric delivery service with thelargest distribution and transmission system in Texas, made up of approximately118,000 miles of lines and more than 3 million meters across the state.But Oncor delivers more than just electricity. Each day, Oncor helps Texans meet thechallenge of rethinking energy use for greater efficiency, cost savings, and positiveenvironmental impact. For more than 100 years, weve built a reputation as a companythat cares about our communities, whether it involves supporting the environment,promoting safety or teaching school children about electricity.

Oncor is owned by a limited number of investors, including a majority owner, EnergyFuture Holdings Corp. It is managed by a board of directors, which is comprised of amajority of independent directors.

The Oncor 2013 Low-Income Weatherization Standard Offer Program (LIW SOP orthe Program) was developed by Oncor to provide an incentive to Energy EfficiencyService Providers ("Service Providers") to implement electric energy efficiency Projectsfor low-income residential customers served by Oncor. Qualified low-income residentialcustomers are those with annual household incomes at or below 200% above thefederal poverty guidelines (such customers are also referred to as Hard-to-ReachCustomers). The LIW SOP complies with the Low-Income Weatherization Standard

Offer Program promulgated by the Public Utility Commission of Texas (PUCT) inPUCT Substantive Rule 25.181(p). The intent of this LIW SOP Manual (Manual) is toinform Service Providers of LIW SOP requirements and processes. Service Providersshould review the PUCT rules related to energy efficiency programs (see PUCTSubstantive Rule 25.181), which are incorporated by reference herein and apply toeach Service Providers participation in the Program. The PUCT rules are available atthe following link:http://www.puc.state.tx.us/agency/rulesnlaws/subrules/electric/25.181/25.181ei.aspx,which apply to each Service Providers participation in the Program. By participating inthe Program, each Service Provider understands and agrees that it will comply withPUCT Substantive Rule 25.181.

The primary objective of the LIW SOP is to achieve cost-effective reduction in electricdemand during summer peak periods. Additionally, the Program is designed to do thefollowing:

Encourage private sector delivery of energy efficiency products and services.

Achieve customer energy and cost savings.
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Significantly reduce barriers to participation by streamlining Program procedures andmeasurement and verification requirements.

Encourage participation by a wide range of Service Providers.

Oncor is not involved in the sales or installation of energy efficiency services to itscustomers. Through the LIW SOP, Oncor purchases peak demand reductions and

Energy Savings from Service Providers who market, sell, and install Energy EfficiencyMeasures. One of the features of the LIW SOP is that Oncor will rely upon themarketing capabilities of Service Providers to sell Energy Efficiency Measures toOncors Residential Customers. Oncor may generally educate Service Providers andthe public about the LIW SOP but will not market any specific energy efficiency-relatedproduct or service to its customers. Entering into an agreement with Oncor to participateas a Service Provider in the LIW SOP does not constitute Oncors endorsement orapproval of any company, product, or service.

Oncor has designed the LIW SOP to encourage electric energy efficiency improvements(Measures or Energy Efficiecy Measures) that go above and beyond the efficiency

gains typically achieved in energy efficiency Projects. Consequently, energy savingscredits for such Measures will be based only on Energy Savings that exceed currentfederal minimum efficiency standards, if such standards apply. In cases wherestandards do not exist, and on early replacement or retrofit of existing equipment,demand and energy savings credits will be based on efficiency improvements relative totypical efficiencies in like circumstances (subject to other limitations as specified herein).

Service Providers participating in the LW SOP must meet minimum eligibility criteria,comply with all LIW rules and procedures, submit application forms and supplementaldocumentation describing their proposed Multifamily Projects, and execute OncorsAmended and Restated Texas Energy Efficiency Market Agreement (the UmbrellaAgreement) and Program Addendum for the LIW (Program Addendum). Oncor alsorequires that Service Providers complete and maintain the Service Provider Profile inthe Energy Efficiency Program Management (EEPM) Solution. Service Providers mustcomply with state and federal consumer protection requirements.

Entrance into the Umbrella Agreement or Program Addendum (each as defined herein)shall not guarantee any Projects or funds in LIW. Service Providers who are offered anapproved agreement in LIW but have no activity will be removed from the ServiceProviders list. Also, Service Providers that had an approved application in priorProgram Years but had no activity on such applications will not be offered a LIWProgram Addendum in subsequent Program Years.

References to the Technical Resource Manual (TRM) will be made throughout the LIWProgram Manual. The TRM is an extension of the LIW Program Manual and containsProgram documents, guidelines, policies, forms and certificates, installation standards,deemed savings, and Public Utility Commission of Texas petitions.


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1.2 PROGRAM PARTICIPANTS

The LIW SOP involves three types of participants: the 1) Program administrator(Oncor), 2) Service Providers, and 3) energy efficiency customers (Host Customer(s)).

Employees of Texas Transmission and/or Distribution Service Providers (TDSPs), suchas Oncor, and their immediate family members are not eligible to participate as Service

Providers or Subcontractors. Notwithstanding the foregoing, TDSP employees or theirimmediate family members who have previously participated as Service Providers orSubcontractors will be allowed to continue to participate if they are otherwise qualified toparticipate.

Oncors responsibilities include:

Conducting information workshops/training for potential Service Providers.

Reviewing and approving or rejecting LIW SOP Agreements.

Reviewing and approving or rejecting all Project Applications.

Performing certain inspection activities.1

Authorizing and issuing Incentive Payments.

Reporting results.

A Service Providers responsibilities include:

Submitting a complete Project Application and other required supplemental Projectinformation.

Executing a standard LIW SOP Agreement.

Providing a security deposit or proof of nonprofit status, when applicable.

Conducting marketing activities to potential Host Customers.

Complying with customer protection provisions required by PUCT Substantive Rule25.181(u).

Providing Customer Education to each Host Customer describing installed measuresand inspection policy.

Providing Host Customers with a customer disclosure notice form approved byOncor and the PUCT (the approved form is included in TRM 3.1.

Securing Host Customer Agreements (as shown in TRM 3.1 for the Small, Large,and Multifamily Project Option), Customer Certificates from Host Customers (asshown in TRM 3.1 for the Small, Large, and Multifamily Project Options), andIncome Eligibility Certificates (as shown in TRM 3.4).

1Oncor reserves the right to contract with a third party to verify installations in the LIW SOP on its behalf.


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Completing the installation of approved Projects by required deadlines and inaccordance with any mandatory progress milestones and LIW SOP requirements.

Submitting work schedules to Oncor prior to conducting any on-site installation ofEnergy Efficiency Measures, when requested.

Performing all on-site activities according to PUCT-specified regulations andprocedures and Oncor LIW SOP requirements.

Developing and submitting Project documentation in accordance with LIW SOPprocedures and deadlines.

Providing customer service to Host Customers, including the satisfactory resolutionof any Host Customer complaints.

Attending workshops and meetings as may be required by Oncor.

Submitting any additional information when requested for Measure verification.

Oncor views the preparation of the Project documentation as crucial to the success ofthe LIW SOP and will offer periodic workshops to acquaint potential Service Providers

with LIW SOP requirements. The Oncor Energy Efficiency Program Management Website (www.oncoreepm.com) will also provide key information and should be checkedregularly for any LIW SOP updates.

A Host Customers responsibilities include:

Committing to an energy efficiency Project.

Completing the required income eligibility documents provided to them by theService Provider.

Entering into a Host Customer Agreement with the selected Service Provider.

Providing Oncor, and any statewide measurement and verification (M&V)contractor, access to the Project Site both before and after Project completion forinstallation inspection.

1.3 PROJECT OPTIONS

The LIW SOP was developed by Oncor to provide an incentive to suppliers of energyservices to implement electric energy efficiency Projects at the residences of OncorsLow-Income Residential Customers. In an effort to achieve our objectives and reachour savings goal, Oncor has designed a LIW SOP that offers multiple Project Options.This creates a greater opportunity for a variety of Service Providers to participate. This

section describes the Project Options available to potential Service Providers.

There are three Project Options to choose from in the 2013 LIW SOP. A ServiceProvider may choose to participate in the Small Project Option, the Large ProjectOption, or the Multifamily Project Option as described below. Each Project Option willhave a separate budget as well as Project-specific and unique Program requirements.

A Service Provider together with its Affiliate(s) may not receive more than the lesser of(i) the Project Option cap amount for the particular Project Option selected ($553,000


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for the Large Project Option, $600,000 for the Small Project Option, and $200,000 forthe Multifamily Project Option), or (ii) 20% of all available LIW SOP funds in any oneyear. A Service Provider cannot participate in the Large Project Option and the SmallProject Option in the same Program Year. A Small Project Option Service Providercannot participate in the Multifamily Project Option nor can a Small Project OptionService Provider subcontract to a Large Project Option Service Provider or a MultifamilyProject Option Service Provider.

By choosing a Project Option, the Service Provider indicates the size and type of theProject to be implemented. All Projects must comply with state law, including TexasUtilities Code 39.905, and all applicable PUCT rules and regulations, including PUCTSubstantive Rule 25.181.

Due to the requirement that Oncor achieves specified levels of kW savings for this LIWSOP within each budget cycle, Oncor, in its sole discretion, may reallocate LIW SOPfunding during the Program Year in order to achieve its overall energy savings goals.

All first-time Service Providers may only participate in the Small Project Option should

they be offered an approved agreement. A Service Provider must complete one (1)successful year of participation in the Small Project Option prior to making application toparticipate in the Large Project Option.

1.3.1 LARGE PROJECT OPTION

There are no reserved funds or security deposits in the Large Project Option. Once aService Provider has been granted authorization from Oncor to proceed with a Project,it may electronically submit monthly Production Reports requesting incentive funds, notto exceed $50,000 per Production Report. The total incentive funds that a ServiceProvider (together with its Affiliates) may receive for the 2013 Program Year is the

lesser of $600,000 or 20% of the LIW SOP budget (the LIW SOP budget for 2013 is$6,365,000). More detailed information concerning the submittal of Production Reportscan be found in Chapter 3 of this Manual. Service Providers may continue submittingmonthly Production Reports for the Large Project Option until November 15, 2013, oruntil all Large Project Option budget funds have been exhausted, whichever occurs first.The Large Project Option budget for 2013 is $2,765,000. Hard copies of ProductionReports and of Host Customer Agreements, Income Eligibility Certificates, andCustomer Certificates that accompany Projects included in a Production Report must bereceived by Oncor within five (5) business days following submittal of the electronicversion of the related Production Report. The date Oncor receives the signed, hardcopy of the Production Report will be considered the effective date of receipt.

Production Reports containing Energy Efficiency Program Management (EEPM)and/or paperwork errors will have the customer site (ESI ID) and all related Measuresexcluded from the Product Report. Approved Service Providers will have the opportunityto correct the error(s) and submit the Project(s) on a future Production Report if fundingis available prior to the Program ending date.

Project Sites that may be included in the Large Project Option are Single-familyDwellings, which are defined as detached single Dwelling Units or attached Dwelling


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Units not greater than a triplex. Service Providers are not eligible to participate in theLarge Project Option and the Small Project Option in the same Program Year.

Large Project Option Service Providers will receive a specified price per kW and kWh ofsavings as described in Section 1.5 titled Program Incentives and Payment Procedures.This standard offer price is the same for all Service Providers in the Large ProjectOption. The terms of the standard offer are outlined in the LIW SOP Agreement for

each Service Provider. A sample of the LIW SOP Agreement for all Project Options canbe found in TRM 3.

The following list summarizes the Large Project Option:

Large Project Option Guidelines

Single-family Residential Dwellings only No budget reservations or security deposits Production Reports/Invoices submitted monthly Funding availability updates are available on the Web site Ineligible to participate in the Small Project Option

Incentive Payments limited to the lesser of $553,000 of the Large Project Optionbudget or 20% cap of the LIW SOP budget (aggregated for Service Provider andits Affiliates)

1.3.2 SMALL PROJECT OPTION

The Service Providers may participate in the Small Project Option and install thespecific types of Energy Efficiency Measures installed at Single-family Dwellings.Attached Dwelling Units larger than a triplex (more than three attached Dwelling Units)do not qualify for this Project Option.

There are no reserve amounts or security deposits in the Small Project Option. Once aService Provider has been granted authorization to proceed, it may submit oneProduction Report per week requesting a minimum of $500 not to exceed a maximum of$5,000 in incentive funds. The Service Provider may not receive more than the lesserof $600,000 or 20% of the LIW SOP budget inclusive of its Affiliates. Service Providersmay continue submitting Production Reports for the Small Project Option untilNovember 15, 2013, or until all budget funds have been exhausted, whichever firstoccurs. Hard copies of Production Reports and all supplemental documentation,including Host Customer Agreements, Income Eligibility Certificates, and CustomerCertificates, must be received within five (5) business days of the electronic submittal.The date Oncor receives the signed, hard copy of the Production Report will be the

effective date of receipt.

Small Project Option Service Providers are not allowed to use Subcontractors norsubcontract to a Large Project Option Service Provider or Multifamily Project OptionService Provider.

Oncor will pay Service Providers a specified price per kW and kWh of savings asdescribed in Section 1.5 titled Program Incentives and Payment Procedures. This


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standard offer price is the same for all Service Providers in this Project Option. Theterms of the standard offer are outlined in the LIW SOP Agreement for each ServiceProvider. Service Providers are not eligible to participate in the Large Project Optionand the Small Project Option in the same Program Year.

The following summarizes the Small Project Option:

Small Project Option Guidelines Simple online LIW SOP Agreement/Application No budget reservations or security deposits Production Reports/Invoices submitted weekly with a minum of $500 and

maximum of $5,000 are eligible One Production Report per week may be submitted Funding availability updates are available on the Web site Ineligible to participate in the Large Project Option

Maximum Invoice: $5,000 per invoice up to the lesser of $600,000 of the Small Project Option

budget or 20% of the LIW SOP budget inclusive of Affiliates

1.3.3 MULTIFAMILY PROJECT OPTION

The Multifamily Option is designed for Service Providers to install specific types ofEnergy Efficiency Measures installed at Multifamily Dwellings. Attached Dwelling Unitslarger than a triplex (more than three attached Dwelling Units) qualify for this ProjectOption.

Potential Service Providers may reserve funds to upgrade a qualifying multifamily sitethrough the Multifamily Project Option. Only Service Providers successfully participatingin the Large Project Option are eligible to participate in the Multifamily Project Option.

Multifamily Dwellings are defined as attached Dwelling Units greater than a triplex. AMultifamily Project Site is defined as one or more Multifamily Dwelling Units located ona single piece of property or adjacent pieces of property, under management by a singleparty. Duplex and triplex units can be considered multifamily if they are located on thesame or adjacent properties. Service Providers will be required to submit one (1)Multifamily Option LIW SOP Application. Once the Multifamily Option Application isapproved the Service Provider must submit one (1) Pre-Initial Application (Pre-IA) perpotential Project Site at a time. A new Multifamily Option LIW SOP Application will notbe required for subsequent Pre-IA requests in this Project Option. The Pre-IA containsall the Project Site details required to perform the required Pre-Inspection. Results fromthe Pre-Inspection will be used by the Program Manager and Service Provider with the

assistance of the Multifamily Helper to determine the dollar value of the MultifamilyProject. Applicants for this Project Option must identify the potential Project Sites intheir Pre-IA, along with the Electric Service Identifiers (ESI IDs) of the property officeof the Project Site. All ESI IDs are required to be checked against the EEPM Duplicatedatabase to determine if the ESI ID is eligible for the Project. There may be caseswhere some ESI IDs are not eligible for the Project within the same multifamily complex.

The Service Provider will create an Initial Application (IA) per Project Site thatrepresents the agreed Multifamily Project Site incentive value as determined by the


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Service Provider, Program Manager, and Multifamily Helper. Creation of an IA does notguarantee the Service Provider any reservation of funding. The Service Provider willhave an opportunity on the submission date to submit each IA in order to reservefunding in the Multifamily Option. Funding Reservation(s) requests may not exceed$110,000 per IA. Budget Reservation requests should be as accurate as possiblewithout the submitted Production Report exceeding each Budget Reservation requestedamount.

A Service Provider may not substitute Project Sites once its Project Application hasbeen submitted. The Production Period for this Project Option is forty-five (45) daysand requires Program Manager preapproval. A Service Provider may ONLY have one(1) active Multifamily Project at any time. Once a Multifamily Project is completed aService Provider can choose to submit another Pre-IA if funding is available, the total ofall Projects is under the funding cap, and there is enough time to complete the Project.

The Production Report(s) must be submitted electronically by the last day of theProduction Period. Once the Production Period for a Project is over, Service Providerswill not have access to input additional data into the Production Report for such Project.

A signed, hard copy of the Production Report for the Project must be received by Oncor,along with the required support documentation, within five (5) business days followingsubmittal of the electronic version of the Production Report. The date Oncor receivesthe signed, hard copy of the Production Report will be the effective date of receipt.

Only completed Production Reports will be accepted. Incomplete documentation mayresult in the entire Production Report being returned without processing to the ServiceProvider. The Service Provider may be required to pick up its Production Report inperson from the Oncor Program Manager. Oncor considers a Production Reportcomplete when all Energy Efficiency Measures that were proposed in the approvedProject Application have been installed and all required support documentation,

including Host Customer Agreements and Customer Certificates, have been submittedby the Service Provider and received by Oncor. All installations proposed in theapproved Project Application for a Project Site must be installed before submitting theProduction Report for such Project Site. Supplemental Production Reports will not beaccepted. However, Oncor will process any Energy Efficiency Measures documentedon incomplete Production Reports that are closed by Oncor on the last day of theProduction Period if Oncor receives the required supporting documentation for suchEnergy Efficiency Measures within five (5) business days after the Production Periodends.

In most cases security deposit is not required for Projects included in an initial Project

Application for the Multifamily Project Option. However, Multifamily Project OptionService Providers will be required to submit a security deposit for Projects proposed insubsequent Project Initial Application IAs if one or more of the following occurs:

(1) Service Provider fails to complete installation of all Energy EfficiencyMeasures proposed to be installed in a prior Project Application by the lastday of the Production Period for that Project.


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(2) Service Providers Budget Reservation balance at the close of theProduction Period for a prior Project exceeds 25% of the BudgetReservation for that Project.

(3) Service Provider fails to provide a minimum of 75% of the peak demand(kW) savings proposed to be achieved in an approved Project Applicationfor a prior Project by the last day of the Production Period for that Project.

If any of these events occur in the present year or past years participation in theMultifamily Option, Oncor will require a security deposit covering all future ProjectApplication Project requests for this Project Option. Security deposits will equal 5% ofthe Budget Reservation request. The deposit must be in the form of a cashiers,guaranteed, or certified check (company and personal checks will not be accepted) or amoney order. The deposit must be received within five (5) business days of receipt ofthe subsequent Project Application.

The security deposit will be returned to the Service Provider after completion andverification of installations accounting for 75% or more of the Service ProvidersProposed Peak Demand Savings during the Production Period. Oncor will liquidate and

retain the Project security deposit if installations accounting for 75% or more of theService Providers validated Proposed Peak Demand Savings are not completed withinthe Production Period.

Oncor will pay Service Providers a specified price per kW and kWh of savings asdescribed in Section 1.5 titled Program Incentives and Payment Procedures. Thisstandard offer price is the same for all Service Providers in the Multifamily ProjectOption.

The following list summarizes the Multifamily Project Option:

Multifamily Project Option Guidelines Multifamily Dwellings only Applications accepted first-come, first-served Funding availability updates are available on the Web site 45-day Production Period per Project ONLY one Project open at any time per Service Provider No security deposit required for initial Project, but deposit may be required for

subsequent Projects if Service Provider does not meet certain requirements withprevious Project

Incentive Payments limited to $110,000 per IA (aggregated for Service Providerand its Affiliates)

Site preapproval required through Pre-IA

1.4 SERVICE PROVIDER, CUSTOMER, MEASURE, AND PROJECTELIGIBILITY

1.4.1 SERVICE PROVIDER ELIGIBILITY

Any Service Provider meeting the LIW SOP application requirements that proposes toinstall eligible residential Energy Efficiency Measures at a customer site that receives


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residential electricity distribution service from Oncor (including single-family, multifamily,and manufactured home units) is eligible to participate in the LIW SOP as a ServiceProvider. Eligible Service Providers may include:

National or local energy service companies

Retail electric providers

Nonprofit organizations or community action agencies

National or local companies that provide energy-related services (e.g., contracting)or products (e.g., lighting and HVAC equipment)

To ensure that the LIW SOP incentive budget is allocated to Projects that are likely tomeet with success, all Service Providers will be required to demonstrate a commitmentto fulfilling Program objectives and competency in completing the proposed Project.Service Providers receiving contract approval in previous years that did not installPUCT-Approved Deemed Savings Measures at Low-Income Customer homes will havetheir LIW SOP Agreement closed for failure to perform. Service Providers who haveparticipated in previous years but choose not to participate for a Program Year will haveto begin in the Small Project Option for a year before participating in the Large ProjectOption. Service Providers will be required to submit the following information as part ofthe application process:

A description of the Service Provider firm, including relevant experience, areas ofexpertise, and references.

Photo(s) with name of each employee, manager, owner, or any individual that isassociated with the application. No personal ID such as drivers licenses, financialstatements, or Social Security numbers should be sent or included.

Copies of up-to-date training certificates, licenses, or rater certificates must be

included if applicable.

Work plan (for the Multifamily Project Option only).

Evidence of satisfactory (as determined in Oncors sole judgment) credit.

Proof of applicable insurance, licenses, and permits in the Service Providersbusiness name.

These requirements are described in further detail in Chapter 2 of this Manual.

1.4.2 HOST CUSTOMER ELIGIBILITY

Oncor Low-Income Residential Customers living in Single-family Dwellings andMultifamily Dwellings are eligible to have Energy Efficiency Measures installed at theirhomes as part of the LIW SOP. For the purposes of this Project, master-meteredmultifamily buildings are considered to be small commercial facilities and are notallowed in the LIW SOP. However, for individually metered multifamily properties, eachdwelling unit is a separate residential account, and it is a requirement to submit the ESIID for that unit.

Host Customers are defined as Oncor residential customers with annual household


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incomes at or below 200% above the federal poverty guidelines and who have properlycompleted Oncors Income Eligibility Certificate.

The U.S. Department of Health and Human Services (DHHS) Poverty Guidelines(poverty guidelines) are updated annually, and the most current income limits should beused when qualifying a Customer for the LIW SOP. The poverty guideline standard isestablished separately for households of different sizes. Service Providers are

responsible to ensure they update their files to reflect the current income guidelines bydownloading these guidelines from the PUCT Web site or the U.S. Department ofHealth and Human Services Web site.

Apartment complexes subsidized by the U.S. Department of Housing and UrbanDevelopment that provide housing for households at or below 80% of householdmedium income, such as Section 8 and Public Housing Authorities.

Households on long waiting lists for weatherization services.

Affordable housing projects.

Other target groups identified by Service Providers.

Target populations identified above whose incomes are verified by an appropriate socialservice agency or organization would require no additional income verification effort.Service Providers interested in serving other target populations would be responsible forconducting verification activities.

The Service Provider is responsible for complying with the income verificationprocedures for individual customers and for multifamily property owners. Oncor hasapproved two forms for this purpose:

Income Eligibility Certificate/Tenant Eligibility Certificate (reference TRM 3.4)These forms outline the various methods in which participants may certify theireligibility. The procedure for verifying eligibility is based on self-certification. TheService Provider will present the form to the Host Customer, and he/she will provide theinformation where required, and sign the form. It is not the Service Providersresponsibility to verify the information provided by the participants.

For Multifamily Projects where apartments are individually metered by Oncor, theproperty manager may provide eligibility information. A multifamily property may onlyqualify those units participating in the following listed programs:

Public Housing Authority

Multifamily Bond Program, with less than 25% of units at market rate

Project-based Section 8 (this does not apply to the Section 8 voucher program)

HOME Rental Housing Development

Housing Trust Fund


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Low-Income Housing Tax Credit Program, with less than 25% of units at marketrate

Affordable Housing Disposition Program

Rural Rental Section 515 Farmers Home Administration (FMHA)

In addition, the entire property would also qualify if the property manager certifies that

75% or more of the households meet the DHHS poverty guidelines. To certify a propertyas eligible under this provision, the property manager must provide household size andincome data for at least 75% of the units.

Service Providers may replace page 2 of the Property Owner Form of Tenant IncomeEligibility with a computer printout, so long as the printout provides all of the requiredinformation.

1.4.3 ENERGY EFFICIENCY MEASURE ELIGIBILITY

Energy Efficiency Measures in low-income residential and multifamily applications that

reduce electric energy consumption and system peak demand at the customer site(s)are eligible for the LIW SOP. Eligible Energy Efficiency Measures do not include repairor maintenance activities or behavioral changes. In addition, all Energy EfficiencyMeasures eligible for LIW SOP incentive funds must exceed applicable current federalminimum efficiency standards. A list of minimum installation and efficiency standards isprovided in TRM 4.2. All energy and peak demand reductions must also be measurableand verifiable. Energy Efficient Measures for all end-uses (e.g., lighting, cooling, andheating) are eligible for the LIW SOP. If any of the proposed Energy EfficiencyMeasures have been installed prior to the execution of the LIW SOP Agreement for thatProduction Period, the Project, or the affected portions thereof, will be disallowed.Oncor will be the final authority on whether any particular Energy Efficiency Measure is

eligible for incentives.

Only Energy Efficiency Measures listed in the approved Deemed Savings List (TRM5.1) are eligible for the LIW SOP. Table 1 provides examples of eligible EnergyEfficiency Measures. Table 2 provides a list of ineligible Energy Efficiency Measures.

Service Providers will be required to evaluate Measures for installation, meet minimumcriteria, and follow the Priority Measures for the Project.

The Priority Measures consist of:

Insulation (ceiling, floor, and walls)

Duct Integrity - is allowed only when approved training documentation has beenprovided

Infiltration Reduction - is allowed only with approved training documentation

One or more of the Priority Measures must be installed before any additionalMeasures are accepted. Each customer site must meet the minimum standards forinstallation, as described in the Installation Measure Guidelines (TRM 4.2).


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Single-family dwelling Insulation Measures (all exterior walls, ceiling, or floorwith pier and beam).

Multifamily dwelling Insulation Measures (all exterior walls, ceiling, or floor withpier and beam). If an Insulation Measure is adopted for a particular building, thatMeasure shall be applied to the entire building.

Infiltration Measures (weather-stripping and caulking). Blower door testing isrequired to determine the amount of reduction achieved in each unit.

Single-family dwelling HVAC Duct IntegrityMeasures (repairs, replacements,and joint sealing with mastic). Duct blaster and blower door testing is required todetermine the amount of reduction achieved regarding leakage to the outside foreach unit.

Multifamily HVAC Duct Integrity Measures (repairs, replacements, and jointsealing with mastic). Duct blaster and blower door testing is required todetermine the amount of reduction achieved regarding leakage to the outside foreach unit, and ducts must be preapproved for each Project Site.

All LIW SOPs implemented by transmission and distribution utilities in Texas arerequired to comply with a number of measurement and evaluation requirementsapproved by the PUCT. The objectives of these Program requirements includeensuring that Energy Efficiency Measures installed pursuant to the LIW SOP areinspected and verified.


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Table 1 - Examples of Eligible Energy Efficiency Measures and Projects

Insulation (ceiling, floor, and walls)

Priority Measures consist of:

Duct Integrity is allowed only when approved training documentationhas been provided and must adhere to the deemed savings standards

Infiltration Reduction is allowed only with approved training

documentation

Table 2 - Examples of Ineligible Energy Efficiency

Measures that do not raise efficiency above current standards

Cogeneration and self-generation Projects, except for Renewable Demand SideManagement (DSM) Technologies approved by the PUCT

Load shifting/load management Measures

Load reductions caused by vacancies

Measures that rely solely on changes in customer behavior and require no capitalinvestment

Measures for which incentives were received under another Oncor Program

Repair and maintenance Measures

Energy-efficient gas Measures when replacing nonelectric technologies

Measures that result in negative environmental or health effects

Water-saving devices such as showerheads and faucet aerators

1.4.4 DIAGNOSTIC TESTING

The PUCT requires Service Providers to perform carbon monoxide (CO) and airinfiltration testing in order to ensure that the health and safety of Host Customers is notjeopardized by any Air Infiltration Energy Efficiency Measure installed as part of the LIWSOP. Air Infiltration Reduction Measures should be considered for installation pursuant

to the results of the CO and air infiltration testing.

For residences with combustion equipment (e.g., natural gas or propane), ServiceProviders must not install any Measure or Measures that would result in ambient air COlevels exceeding 9 parts per million (ppm) at Project completion. Service Providers willbe required to measure and record pre- and post-installation CO readings at eachinstallation site.

If the residence meets the LIW SOP CO standard, and the Service Provider proposes


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to install air infiltration Measures, the Service Provider must then conduct a blower doorair infiltration test and record the pre-installation ventilation rate at 50 pascal (Pa), innormal conditions. The minimum pre-installation ventilation rate (at 50 Pa) forhouseholds treated with infiltration Measures shall not be less than the standards setforth in Table 3.

Table 3 - Minimum Final Air Exchange Rate*

Shielding Single-Story Two-Story 3>Stories

Well Shielded 1.18 0.95 0.83

Normal 0.99 0.79 0.69

Exposed 0.89 0.71 0.62

* Measured in cubic feet per minute at 50 pascal per square foot.

Well Shielded is defined as urban areas with high buildings or sheltered areas or

buildings surrounded by trees, bermed earth, or higher terrain.

Normal is defined as buildings in a residential neighborhood or subdivisionsetting, with yard space between buildings (80-90% of houses fall in thiscategory).

Exposed is defined as an open setting with few surroundings, buildings, or trees.

Minimum Final Air Exchange Rates are listed in the air infiltration guidelines found inTRM 4.2. To qualify for an incentive, a minimum air leakage reduction of 10% of thepre-installation reading is required.

CO tests shall be conducted in all instances where combustion (e.g., natural gas orpropane) equipment is present. Blower door tests shall be conducted in all cases whereinfiltration Measures are installed. If the unit fails to meet either the CO or theventilation rate standard, the Service Provider shall not install any Measure that wouldor could reduce air infiltration in the unit. These Measures include but are not limited tocaulking, weather-stripping, and duct sealing/repair.

1.4.5 CARBON MONOXIDE TEST SPECIFICATIONS

Test Equipment

Carbon monoxide testing is to be performed with the Bacharach Monoxor II Sensor or

an equivalent Texas Department of Housing and Community Affairs (TDHCA)-approvedtesting device. CO detectors are not suitable testing devices and are not to be used.Sensing device must have a range from 0-2000 ppm; accuracy +/- 5% of readout; andreadout resolution = 1 ppm adjustable to zero.


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Ambient Air Test

Conduct the CO test at initial assessment. Every housing unit that has combustionequipment shall be tested. If more than 9 ppm CO is detected, air infiltration reductionMeasures shall not be installed until the CO problem has been corrected. HostCustomer should always be informed of the existence of high levels of CO and advisedto take precautions until abatement can be performed. No Energy Efficiency Measure

which could result in a decreased ventilation rate for that housing unit shall be installedif the installation of such Measure would or could result in ambient air CO levelsexceeding 9 ppm within the housing unit.

1.5 PROGRAM INCENTIVES AND PAYMENT PROCEDURES

Oncor will post updates of available funds in each of the Options on its Web site athttps://www.oncoreepm.com. Funds are allocated to Oncor-approved Projects on a first-come, first-served basis until total funds are exhausted. The aggregate amount of fundsavailable for the LIW SOP may be adjusted by Oncor from time to time in its solediscretion.

Note that in all cases, any conflicting payment procedures and amounts specified in theLIW SOP Agreement supersede this and any other documents.

Service Providers will be paid entirely on the basis of the kW and kWh savingscalculated according to the types and quantities of Energy Efficiency Measuresinstalled. The resulting calculation may be further adjusted based on results of Oncorssite inspection results as described elsewhere in this Program Manual and in the LIWSOP Agreement.

The LIW SOP budget will be divided between the Project Options. Funds will bereserved and awarded based on the available amount budgeted for each category.

Oncor reserves the right to adjust the Project Option budget amounts at its discretionthroughout the Program Year. To ensure that incentives are available to multipleService Providers, no Service Provider or its Affiliates can reserve nor receive morethan the lesser of the aggregate total of 20% of the LIW SOP incentive budget or themaximum Project amount for each Project Option as herein set forth in a given year.

Incentive rates for the LIW SOP are shown below and are based on PUCT-approvedavoided cost.
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Table 4 Incentives by Measure

Measure NPV - Incentive

Description EUL $/kW $/kWh

Duct Efficiency 18 $ 254.40 $ 0.1378

Infiltration Reduction 11 $ 386.00 $ 0.1544Ceiling Insulation 25 $ 375.30 $ 0.1751Wall Insulation 25 $ 437.85 $ 0.1751Floor Insulation 25 $ 412.83 $ 0.1751Central AC Retrofit Replacement 15 $ 370.89 $ 0.1902Central HP Retrofit Replacement 15 $ 513.54 $ 0.1902Solar DWH Replacement 15 $ 475.50 $ 0.2092Solar Screens 10 $ 425.39 $ 0.1442Ground Source HP 25 $ 537.93 $ 0.2502

ENERGY STARWindows 25 $ 675.54 $ 0.2252Water Heater replacement - Elec to Elec 13 $ 650.25 $ 0.1907

Water Heater replacement - Elec to Gas 13 $ 650.25 $ 0.0780Water Heater J acket 7 $ 218.80 $ 0.0547Water Heater Pipe 13 $ 216.75 $ 0.0347ENERGY STARDishwasher 11 $ 579.00 $ 0.1698ENERGY STARRefrigerator 14 $ 682.50 $ 0.2002ENERGY STARClothes Washer 11 $ 563.56 $ 0.1544Aerators 10 $ 144.20 $ 0.0072Showerheads 10 $ 144.20 $ 0.0144CFLs 5 $ 45.43 $ 0.0330Window A/C 13 $ 199.41 $ 0.0867Combo - 1

Infiltration Reduction 11 $ 424.60 $ 0.1544Ceiling Insulation 25 $ 475.38 $ 0.1751Combo - 2

Duct Efficiency 18 $ 243.80 $ 0.1484

Infiltration Reduction 11 $ 424.60 $ 0.1544Ceiling Insulation 25 $ 475.38 $ 0.1751CFLs 5 $ 45.43 $ 0.0330Combo - 3

Duct Efficiency 18 $ 243.80 $ 0.1484

Infiltration Reduction 11 $ 424.60 $ 0.1544Ceiling Insulation 25 $ 475.38 $ 0.1751CFLs 5 $ 45.43 $ 0.0330

Water Heater J acket 7 $ 218.80 $ 0.0547Water Heater Pipe 13 $ 346.80 $ 0.0867Aerators 10 $ 201.88 $ 0.0072Showerheads 10 $ 201.88 $ 0.0144Combo - 4

Duct Efficiency 18 $ 243.80 $ 0.1484

Infiltration Reduction 11 $ 424.60 $ 0.1544Ceiling Insulation 25 $ 475.38 $ 0.1751Combo - 5


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Duct Efficiency 18 $ 243.80 $ 0.1484

Infiltration Reduction 11 $ 424.60 $ 0.1544

Ceiling Insulation 25 $ 475.38 $ 0.1751

CFLs 5 $ 45.43 $ 0.0330Combo - 6

Duct Efficiency 18 $ 243.80 $ 0.1484

Infiltration Reduction 11 $ 424.60 $ 0.1544

Ceiling Insulation 25 $ 475.38 $ 0.1751CFLs 5 $ 45.43 $ 0.0330

Water Heater J acket 7 $ 218.80 $ 0.0547

Water Heater Pipe 13 $ 346.80 $ 0.0867

Aerators 10 $ 201.88 $ 0.0072

Showerheads 10 $ 201.88 $ 0.0144

The LIW SOP offers one option for determining Demand and Energy Savings andIncentive Payments. This option is referred to as the Deemed Savings Option. Itprovides predetermined demand and energy savings amounts for the Energy EfficiencyMeasures. These deemed savings values have been approved by the PUCT. (For a

listing of these savings values, refer to TRM 5.1). This option allows for IncentivePayments that are more predictable and require fewer administrative resources.

1.5.1 PAYMENT PROCEDURE

Service Provider incentives will be either via electronic transfer or mailed directly to themailing addresses provided by the Service Provider in the online Application. It is theresponsibility of the Service Provider to update mailing address, e-mail address, andtelephone numbers as needed. Available options for payment are:

US Mail

Oncor Electronic Funds Transfer and Authorization Agreement this form isdownloadable from our Program Resource Web site.

1.5.2 GEOGRAPHIC ADJUSTMENTS

In order to promote energy efficiency activities in all areas of the service area there willbe an additional 15% geographic payment adjustment for all Measures listed in Table 4,outside the seven-county DFW metroplex area. The metroplex area includes Dallas,Tarrant, Rockwall, Denton, Collin, J ohnson, and Ellis counties. The 15% geographicpayment adjustment will not be paid to Multifamily Project Options.

1.6 PROGRAM PROCESS AND TIMELINE

1.6.1 PROJECT APPLICATION PROCESS

Each Service Provider must enter into the Umbrella Agreement and the LIW SOPProgram Addendum with Oncor in order to participate in the Program. The UmbrellaAgreement and Program Addendum are on-going but terminable by Oncor at will, as


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well as for certain other events of default by Service Provider. This allows ServiceProviders to avoid resubmitting a new LIW SOP Program application each ProgramYear. It does require the Service Provider to submit updated documentation for eachProgram Year using the LIW SOP online application. The Umbrella Agreement andProgram Addendum are terminable by Oncor at will, as well as for other events ofdefault by Service Provider. Service Provider is required to enroll and be accepted byOncor each Program Year. It is solely the responsibility of the Service Provider to makeOncor aware of changes required to the documentation and to provide hard copies ofsuch documentation. Failure to provide documentation may be a breach of the LIWSOP Agreement which can be grounds for termination of the LIW SOP Agreement withthe Service Provider.

The Umbrella Agreement and Program Addendum do not in any way guaranteethe Service Provider funds, approval of Projects, or participation for any ProgramYear of the LIW SOP.

Oncor will not consider proposed modifications to the Umbrella Agreement and ProgramAddendum unless unique circumstances merit and warrant, at the sole discretion of

Oncor, revision.

The first step in the overall process is to execute an Umbrella Agreement throughEEPM by using the Web site: https://www.oncoreepm.com. Once the UmbrellaAgreement is approved, a Service Provider will have the ability to submit an Applicationfor the LIW SOP. The LIW SOP process is for the Service Provider to submit acompleted Project Application for its proposed Program Option. The Project Applicationincludes information about the Service Provider and information about the nature of thesites at which the proposed Project will be installed. Submittal of Project Applicationswill be via the EEPM Web site. Project Applications will be accepted until all LIW SOPfunding for the 2013 Program Year has been exhausted or Oncor disables the Project

Application function. The Multifamily Project Option is only available when funds arereserved, and Project Applications will be considered on a first-come, first-served basisuntil funding in the Multifamily Project Option budget is fully committed. Oncor will postupdates of available funds in each of the Project Options on its Web site, which may beaccessed by clicking on Low-Income Weatherization SOP Application. Chapter 2contains a detailed description of the application process.

In the Technical Resource Manual (TRM 3.1) there is a sample of the ProgramAddendum. Applicants are urged to review the Program Addendum prior to submittinga Project Application.
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1.6.2 PRODUCTION PERIOD

During the Project implementation period (the Production Period), the Service Providerwill be performing marketing, sales, and installation activities and reporting progress ona regular basis to Oncor. Details about these requirements are included in Chapter 3 ofthis Program Manual.

AGREEMENT TERMINATIONS

Oncor may terminate any or all Umbrella Agreements and Program Addendums, inwhole or in part, at any time, at its sole discretion, by providing written notice oftermination to a Service Provider. The notice of termination will specify the effectivedate of any termination, and that the Umbrella Agreement and/or Program Addendum isterminated in its entirety. Termination may result from unacceptable performance, eitherduring current or past LIW SOP Programs. Please review the Umbrella Agreement andProgram Addendum for additional details.

In the event Oncor elects to terminate an Umbrella Agreement or Program Addendum,

the applicable Service Provider will finish any Project already commenced which cannotbe discontinued without breaching the Host Customer Agreement. Oncor will have noobligations with respect to any contractual obligations entered into between HostCustomer and Service Provider after Service Providers receipt of Oncors notice oftermination.

In the event a Standard Offer Program is terminated, Oncor's only liability will be to payService Provider the unpaid balance due Service Provider for that portion of the Projectalready commenced and which cannot be discontinued without breaching the HostCustomer Agreement.

If Service Provider inspection Cumulative Failure Rate exceeds 5%, the ServiceProvider will not be allowed to submit any additional sites, and Oncor may, in itssole discretion, terminate the LIW SOP Program Addendum. Please refer to the

Actions Document for Service Providers (TRM 3.3) for a complete list of potentialactions related failure rates.

Oncor may, in its sole discretion, refuse a Service Provider an agreement in the Low-Income Weatherization Program for any reason, including based on prior Programparticipation or participation in other Oncor-sponsored energy efficiency programs.


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Chapter 2, Project Application


1 LIW: PROJECT APPLICATION

2.1 GENERAL PROJECT APPLICATION GUIDELINES

Service Providers must first be accepted into the Energy Efficiency Program

Management (EEPM) to be eligible to participate in the Low-Income WeatherizationStandard Offer Program. This will include completing the Umbrella Agreement requiredto register in EEPM, which will then allow completion of a Project Application but doesnot guarantee acceptance into any of the Standard Offer Programs.

Oncors online system (https://www.oncoreepm.com) will open and begin acceptingcompleted applications for the following options:

Large Project Option open June 03, 2013; close J une 17, 2013

Small Project Option open J une 17, 2013; close J uly 1, 2013

Multifamily Project Option open J uly 01, 2013; close J uly 19, 2013. TheMultifamily Project Option will begin accepting completed Pre-IA(s) on J uly 01,2013. Oncor will utilize the EEPM servers time stamp to determine the order ofreceipt of all Applications.

Applicants to the Multifamily Project Option may only submit one Project Application foreach proposed Project (i.e., applicants may not attempt to submit multiple ProjectApplications for the same proposed Project). If Oncor receives multiple ProjectApplications for the same proposed Project, it may deny all such Project Applications.Applicants to the Small Project Option and Large Project Option may only submit one

Project Application per Service Provider. If Oncor receives multiple Project Applicationsfrom the same Service Provider, it may deny all such Project Applications.

The application forms will be accessible on the Oncor Web site athttps://www.oncoreepm.com, by clicking on 2013 Low-Income Weatherization SOPApplication. All Project Applications must first be completed and submitted online, andthen hard copies must be sent to Oncor, as further discussed below.
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Dates Assoc iated with the LIW Program

LIW Program Large Option Small Option MultifamilyOption

Application & ProjectOpen Date &Time

June 3, 201310:00 AM

June 17, 201310:00 AM

July 1, 201310:00 AM

Application Close Date & Time June 17, 20132:00 PM July 1, 20132:00 PM July 19, 20132:00 PM

Submission of Completed ProductionReports Open

J une 17, 2013 J une 24, 2013 J uly 8, 2013

Submission of Completed ProductionReports Close

November 15,2013

November 15,2013

November 15,2013

2.2 APPLICATION PROCESS: LARGE PROJECT OPTION

Applicants for this Project Option must submit an electronic Project Application and thensend to Oncor:

A hard copy of the Project Application

An executed (signed and dated) LIW SOP Agreement that is downloaded from theApplication, completed online, and printed from the LIW SOP Web site Thisrequirement applies only to new Service Providers who have never participated inthe LIW SOP Program.

The required insurance accord

Copies of up-to-date training certificates, licenses, or rater certificates should beincluded if applicable

Photos with name of each employee, manager, owner, or any individual that isassociated with the application. No personal ID such as drivers licenses, financialstatements, or Social Security numbers should be sent or included.

Evidence of good (as determined in Oncors sole discretion) credit rating. Mostcompanies provide a letter from their financial institution stating the business has anactive business account in good standing and for how long the account has beenactive. (Due to privacy issues non-public financial statements should not be sent

with your application.) Proof of applicable insurance, licenses, and permits in the Service Providers

business name

The hard copy of the application, LIW SOP Agreement, and documents as described,must be received by Oncor within five (5) business days of Internet submittal. Hardcopies of electronic Application received after five (5) business days will not beprocessed, and the Service Provider will not be allowed to submit another Application in


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the Program Year. If Service Provider has previously submitted a LIW SOP Agreementthat has not been terminated, Service Provider should not submit another LIW SOPAgreement. Oncor will notify applicants of their application status within ten (10)business days of receipt of the hard copy of the complete Application, LIW SOPAgreement, and all required supplemental documentation as shown in TRM 3.1. IfOncor approves a Project Application, it will execute the LIW SOP Agreement.

2.2.1 POTENTIAL SERVICE PROVIDER INFORMATION

The information listed below is required of all applicants:

Applicant name (Company)

Federal tax identification number of applicant

Contact name

Contact title

Street address

Mailing address

Contact phone number

Contact fax number

Contact e-mail address

Name(s) and contact information of parent company (if any) and Affiliates

Name(s) and contact information of any proposed Subcontractors

Insurance requirements Assumed Name Certificate filed with county


Photos with name of each employee, manager, owner, or any individual that isassociated with the Application. No personal ID such as drivers licenses, financialstatements, or Social Security numbers should be sent or included.

2.2.2 QUALIFICATIONS

Oncor requires applicants to demonstrate their financial, technical, and managerialqualifications as part of the application process to help ensure that the proposedProjects will be successful in delivering the estimated Energy Savings and that theapplicant is committed to fulfilling Program objectives and is competent to complete theproposed Project. Service Providers must complete the entire Service Profile level inEEPM.


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2.3 APPLICATION PROCESS: SMALL PROJECT OPTION

The Small Project Option is a simplified version of the Large Project Option. ThisProject Option is ideal for those interested in participating on a smaller scale, regardlessof company size. The Small Project Option limits the minimum payment to $500 andmaximum payment amount to $5,000 per Production Report with only one ProductionReport submitted per week.

Applicants for this Project Option will submit an electronic Project Application and thencomplete the entire Service Profile level in EEPM.

If Service Provider has previously submitted a LIW SOP Agreement that has not beenterminated, Service provider should not submit another LIW SOP Agreement. Oncorwill notify applicants of their application status within ten (10) business days of receipt ofthe hard copy of the complete Application, LIW SOP Agreement, and all requiredsupplemental documentation as shown in TRM 3.1. If Oncor approves a ProjectApplication, it will execute the LIW SOP Agreement, if applicable,


and return it toService Provider. Hard copies of electronic Applications received after five (5) business

days will not be processed, and the Service Provider will not be allowed to submitanother Application in the Program Year.




Contact name

Contact title

Street address

Mailing address


Contact fax number


Name(s) and contact information of parent company (if any) and Affiliates


Insurance requirements

Assumed Name Certificate filed with county


Photos with name of each employee, manager, owner, or any individual that isassociated with the Application. No personal ID such as drivers licenses, financialstatements, or Social Security numbers should be sent or included.


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2.3.2 QUALIFICATIONS

Oncor requires applicants to demonstrate their financial, technical, and managerialqualifications as part of the application process to help ensure that the proposedProjects will be successful in delivering the estimated Energy Savings and that theapplicant is committed to fulfilling Program objectives and is competent to complete the

proposed Project. Service Providers must complete the entire Service Profile level inEEPM.

2.4 APPLICATION PROCESS: MULTIFAMILY PROJECT OPTION

Potential Service Providers may reserve funds to upgrade a multifamily site through theMultifamily Project Option. Only Service Providers successfully participating in the HEEProgram for a minimum of one year and cumulative failure rate (CFR) is less than 5percent are eligible to participate in the Multifamily Project Option. Multifamily Dwellingsare defined as attached Dwelling Units greater than a fourplex. A Multifamily ProjectSite is defined as one or more Multifamily Dwelling Units located on a single piece of

property or adjacent pieces of property, under management by a single party. Duplexand fourplex units can be considered multifamily if they are located on the same oradjacent properties.

Service Providers will be required to submit one (1) Multifamily Option LIW SOPApplication. The Multifamily Project Option will consist of two phases; the InitialApplication (IA) and Installation Notice (IN).

Prior to the Service Provider creating the IA the following steps are expected to takeplace:

1. Service Provider contacts potential multifamily owner/property management andvalidates the property is eligible for the Program.

2. Service Provider should validate each property unit (ESI ID) is individuallymetered and obtain ESI IDs or meter numbers for entry into the IA.

3. Service Provider should obtain a signed Host Customer Agreement from theproperty owner/manager to supply with IA.

4. Pre-tests on each eligible floorplan should be conducted in order to addmeasures to each valid ESI ID for the IA.

The approved Service Provider must create a IA with ALL the Electric Service Identifier(ESI ID)s of the property for the Project Site. Each IA will be time-stamped andprocessed in the order submitted by the service provider. Each ESI ID will be checkedagainst the EEPM Duplicate database to determine if the ESI ID is eligible for theProject. There may be cases where some ESIIDs are not eligible for the Project withinthe same multifamily complex. The measures planned for the Project should be enteredfor each ESI ID and EEPM will estimate the incentives and savings for the project andthe estimated funds will be blocked for the project. Once the funds are blocked a pre-


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inspection will be performed on the project. Once the pre-inspection is complete theProgram Manager will contact the Service Provider to discuss the pre-inspection results.If the pre-inspection reflects any discrepancies from the original submission the IA willbe rejected and sent back to the Service Provider to make adjustments. The ServiceProvider can re-submit the IA after making the appropriate adjustments. Once re-submitted the Program Manager will approve IA and funds will be reserved if available.If funds are not available to fund the project the IA will be waitlisted in the order it wasreceived. A hard copy of the Multifamily Addendum representing the kW, kWh andincentive amount will need to be signed by the Service Provider along with a signedcopy of the Host Customer Agreement, both of which must then be sent to the ProgramManager for Oncor approval. Once the hard copy Multifamily Addendum is approvedand signed by Oncor management the Program Manager will approve the Project inEEPM. Once the project is approved by the Program Manager the project will move intothe IN phase. While the project is in the IN Open phase, the Service Provider enters allthe measure details of the post installed measures. Incentives will be based on therecalculated measures the Service Provider enters into the EEPM database. After allthe installed measures are entered the Service Provider will submit the IN to ProgramManager. The Program Manager will then review and, if approved, move the PR into

Post Inspection. After the inspector completes the final inspection the results will bereviewed and approved by the Program Manager. The approved incentives will neverexceed the approved reserved amount. In the event the incentive are less than thereserved amount the remaining funds will be released to fund other projects or LIWPrograms.

Funding Reservation(s) requests may not exceed $110,000 per IA and a total of thelesser of $220,000 of the budget of this Project Option or (3.4%) of the LIW SOPbudget. Budget Reservation requests should be as accurate as possible without thesubmitted Production Report exceeding each Budget Reservation requested amount.

A Service Provider may not substitute or revise Project Sites once its Project Applicationhas been submitted. The Production Period for this Project Option is forty-five (45) daysand requires Program Manager preapproval. A Service Provider may ONLY have one(1) active Multifamily Project at any time. Once a Multifamily Project is completed aService Provider can choose to submit another IA for a Multifamily Project if funding isavailable, the total of all Projects is under the Affiliate funding cap (referring to the 4%cap per SP) and there is enough time to complete the Project.

The Production Report(s) must be submitted electronically by the last day of theProduction Period. Once the Production Period for a Project is over, Service Providerswill not have access to input additional data into the Production Report for such Project.

A signed, hard copy of the Production Report for the Project must be received by Oncor,along with the required support documentation, within five (5) business days followingsubmittal of the electronic version of the Production Report. The date Oncor receivesthe signed, hard copy of the Production Report will be the effective date of receipt.

Only completed Production Reports will be accepted. Incomplete documentation mayresult in the entire Production Report being returned without processing to the ServiceProvider. The Service Provider may be required to pick up its Production Report inperson from the Oncor Program Manager. Oncor considers a Production Report


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complete when all Energy Efficiency Measures that were proposed in the approvedProject Application have been installed and all required support documentation,including Host Customer Agreements and Customer Certificates, have been submittedby the Service Provider and received by Oncor. All installations proposed in theapproved Project Application for a Project Site must be installed before submitting theProduction Report for such Project Site. Supplemental Production Reports will not beaccepted. However, Oncor will process any Energy Efficiency Measures documentedon incomplete Production Reports that are closed by Oncor on the last day of theProduction Period if Oncor receives the required supporting documentation for suchEnergy Efficiency Measures within five (5) business days after the Production Periodends.

There is no security deposit required for Projects included in an initial ProjectApplication for the Multifamily Project Option.

Oncor will pay Service Providers a specified price per kW and kWh of savings asdescribed in Section 1.5 titled Program Incentives and Payment Procedures. Thisstandard offer price is the same for all Service Providers in the Multifamily Project

Option.



A description of the proposed Project to be offered by the applicant, including themarketing approach to be used along with customer service activities to support itscustomers



Contact name

Contact title

Contact address

Mailing address


Contact fax number


Name(s) and contact information of parent company (if any) and Affiliates (if any)


Insurance requirements


Assumed Name Certificate filed with county


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2.4.3 SECURITY DEPOSIT AND MILESTONES

Applicants requesting funds in the Multifamily Project Option will not be required tosubmit a security deposit provided Projects are completed by the required deadline andresult in similar Energy and Peak Demand Savings and Incentive Payments asproposed in the Project Application. However, if a Service Provider fails to complete a

Project by the required deadline or fails to meet proposed savings and incentives in thecurrent year or in any previous Program Year, Oncor will require a security deposit onall future Project Applications submitted under the Multifamily Project Option, as furtherdiscussed in Article 1.3.3 of this Program Manual.

The estimated kW, kWh, and resulting Incentive Payments will be used to determine thesecurity deposit requirements, if a deposit is required. Project Applications will not beconsidered complete until the applicant has submitted its deposit for 5% of the amountof the total incentive requested for the proposed Project, if a deposit is required.

Service Providers participating in the Multifamily Project Option must complete their

Project within the forty-five(45)-day Production Period or November 15, 2013, whicheveris earlier.

2.5 PROJECT APPLICATION SUBMITTAL PROCEDURE

All hard copies of Applications and supplemental documentation, as required by eachProject Option, must be sent by US mail or other mail services and must be addressedto the following (Oncor will not accept faxed or hand-delivered information):

OncorAttn: Genny J ones-Fant

1616 Woodall Rodgers Fwy. 5M-026Dallas, TX 75202Phone: 214-486-3238 or 1-866-258-1874Email: [email protected]

OR

OncorAttn: India McKnight1616 Woodall Rodgers Fwy. 5M-022Dallas, TX 75202Phone: 214-486-4829 or 1-866-258-1874

Email: [email protected]

It is the sole responsibility of the applicant to ensure that Oncor receives all of therequired Project Application materials by close of business on the applicable due date.Applicants should retain proof of delivery for all Program materials submitted.


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2.6 PROJECT APPLICATION REVIEW PROCEDURES

2.6.1 PROJECT APPLICATION EVALUATION

Oncor may reject a Project Application for any reason in its sole discretion, including if:

The Project Application is received after the budget for that Project Option has been

fully committed.

The applicants proposed Production Period cannot reasonably be expected to becompleted by November 15, 2013.

Required submittals are not received by deadlines stated in this Program Manual.

The applicant fails to meet LIW SOP eligibility requirements.

The applicant is found to have made material misrepresentations in the ProjectApplication.

The applicant fails to comply with applicable federal, state, and local laws andregulations.

Oncor determines, based on information concerning the applicant or its Affiliate(s),including any prior performance of applicant or its Affiliate(s) concerning EnergyEfficiency Programs, that applicant is unlikely to be able to successfully participate inthe LIW SOP.

It is necessary due to changes that occur in laws or regulations directly affecting theLIW SOP.

Prior year participation in the LIW Program resulted in a Cumulative Failure Rategreater than 5%.

Oncor, in its sole judgment, determines that the applicant is incapable of fulfilling theterms and conditions of the LIW SOP Agreement.

Oncor may request clarification of, or additional information about, any item submittedas part of the Project Application. Applicants must respond to such requests within thetime period specified by Oncor. If the clarification or additional information provided isnot sufficiently responsive, Oncor may, at its sole discretion, request additionalinformation or discontinue its evaluation of the submittal. Any applicant submitting anunsuccessful Project Application may reapply for Project funding by submitting anotherProject Application. However, the applicant will lose its initial position in the order ofsubmittal for Budget Reservation purposes, if applicable.

2.6.2 APPLICATION CONFIDENTIALITY

Oncors LIW SOP is subject to oversight by the PUCT, which may request a copy of anyLIW SOP materials that Oncor sends or receives. Sensitive information submitted bythe Service Provider to Oncor, such as financial statements and Project costs, will betreated confidentially to the extent possible. However, Oncor will not be liable to anyService Provider or other party as a result of public disclosure of any informationsubmitted to Oncor pursuant to the LIW SOP.


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2.6.3 SUBMISSION OF FALSE, MISLEADING, OR INCORRECT INFORMATION

Oncor reserves the right to discontinue its evaluation of all submittals from any ServiceProvider who submits false, misleading, or incorrect information, and Oncor mayterminate the applicants LIW SOP Program Addendum and/or Umbrella Agreement.Oncor also reserves the right to deny any Service Provider who submits false,misleading, or incorrect information from participating in any energy efficiency programs

sponsored by Oncor.

2.6.4 LIW SOP PARTICIPATION COSTS

Oncor will not reimburse any Service Provider for any costs incurred by participating inthe LIW SOP, including costs of preparing the Project Application, reviewing orexecuting the LIW SOP Agreement, or preparing and submitting Production Reports.Training costs are also not reimbursable for any Service Provider and are not part ofOncors service.

2.6.5 PARTICIPATION RESTRICTIONS AND ADDITIONAL QUALIFICATIONS

Oncor may impose additional restrictions and qualification requirements on ServiceProviders to those set forth in the LIW SOP Program Addendum and UmbrellaAgreement based on prior participation in the LIW SOP or other Oncor-sponsoredenergy efficiency programs.

2.6.6 IMPACTS OF PRIOR YEAR SERVICE PROVIDER PERFORMANCE

Evaluation criteria for Service Providers (SP) from prior years submitting applications toparticipate in Residential Energy Efficiency Programs. This document outlines the actionthat can be taken by the Program Manager (PM) if a SP with Program history issuessubmits an application to participate in a Residential Energy Efficiency Program.

Issue PM Action Taken Comments

Cumulative FailureRate (CFR) is greaterthan 10%

Lockout for the currentProgram year.

Guidelines to ModifyLockout

Due to paperwork 1month lockout

Due to inferior work 3month lockout

SP will be informed by PM that due tothe prior year CFR being greater than10% they will not be allowed toparticipate in the current Program year.

SP will be encouraged to develop aPlan of Action that addresses thefailures/issues to present in the next

Program year.

SP can apply the next Program yearand will be required to provide thePlan of Action that addresses theprior failures/issues.

Cumulative FailureRate (CFR) is greater

1 month lockout periodfrom SP approval date to

PM has the decision to lockout based


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than 5% participate in the currentProgram year

on the cause of the CFR.

Paperwork failures can be waived.

Failures do to inferior