Summary Table of Contents
I.
II.
MAIN BODY OF AGREEMENT
ATTACHMENT A – SCOPE OF WORK
III.
ATTACHMENT B – COMPENSATION, PAYMENT AND PERFORMANCE
PROVISIONS
IV.
ATTACHMENT C – PERFORMANCE INCENTIVE MECHANISM
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
ATTACHMENT D – CALCULATION OF TOTAL CAP
ATTACHMENT E – ESTIMATED BUDGET AS OF 3/1/00
ATTACHMENT F – LIST OF KEY PERSONNEL
ATTACHMENT G – SECTIONS A-I OF THE RESPONSE
ATTACHMENT H – THE RFP
ATTACHMENT I – SCOPE OF WORK 2003 – 2006
ATTACHMENT J – COMPENSATION, PAYMENT AND PERFORMANCE
PROVISIONS 2003 – 2006
ATTACHMENT K – PERFORMANCE INCENTIVE MECHANISM 2003 – 2005
XIII.
ATTACHMENT L – CALCULATION OF TOTAL CAP 2000 – 2006
XIV.
ATTACHMENT M – ESTIMATED CONTRACTOR EEC FUNDS 2003 – 2005
XV.
XVI.
ATTACHMENT N – ESTIMATED BUDGET FOR 1/1/2003 THROUGH 12/31/2005
ATTACHMENT O – LIST OF KEY PERSONNEL 2003 – 2005
XVII.
ATTACHMENT P – DISTRIBUTION LIST FOR REPORTS AND OTHER
INFORMATION SHARING DOCUMENTS 2003 – 2005
XVIII.
ATTACHMENT Q – BOARD-APPROVED ANNUAL PLAN FOR YEAR 2002
XIX.
ATTACHMENT R – AMENDED MAIN BODY WHICH INCORPORATES THE
CHANGES FROM AMENDMENT NUMBER ONE TO THE
AGREEMENT
1
Extended Table of Contents
I.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
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18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
MAIN BODY OF AGREEMENT
Parties ......................................................................................................................................1
Definitions ...............................................................................................................................1
Scope of Work ..........................................................................................................................2
Standards of Performance ........................................................................................................2
Compensation ..........................................................................................................................3
Term of Agreement ..................................................................................................................3
Prior Approvals .........................................................................................................................3
Amendment ..............................................................................................................................4
Termination of Agreement .......................................................................................................4
A. Terminations at Will ........................................................................................................4
B. Termination for Cause .....................................................................................................4
C. Termination – Bankruptcy ..............................................................................................4
D. Responsibility of Parties upon Expiration or Termination ...............................................4
Committed Incentive Payments ...............................................................................................5
Notifications ............................................................................................................................5
Reporting Requirements ..........................................................................................................6
Insurance ..................................................................................................................................6
Relationship to Board ..............................................................................................................7
Indemnification ........................................................................................................................7
Assignment or Sublet of Contract ............................................................................................8
Records Available for Audit or Inspection ..............................................................................8
Inspection of Work ...................................................................................................................9
Ownership of Data, Record, and Intellectual Property ............................................................9
A. Data .................................................................................................................................9
B. Work Product ...................................................................................................................9
C. Equipment and Materials Provided by or for Use by State ...........................................10
D. Research Reports and Publications ...............................................................................10
E. Extension to Subcontractor or others ............................................................................11
F. Survival of Paragraph 19 ...............................................................................................11
Permits, Laws, Regulations and Public Ordinances ...............................................................11
Conflict-of-Interest Provisions ..............................................................................................11
Legislative Testimony ...........................................................................................................12
Appearance in Board Proceedings .........................................................................................12
Retail Sales Restrictions ........................................................................................................12
Use of Name ..........................................................................................................................13
Gifts and Gratuities ................................................................................................................13
Fair Employment Practices ....................................................................................................13
Force Majeure ........................................................................................................................14
Severability ............................................................................................................................14
Survival of Requirements ......................................................................................................14
Waiver ....................................................................................................................................14
Applicable Law ......................................................................................................................14
2
33. Entire Agreement and List of Attachments ...................................................................... 14-15
II.
ATTACHMENT A – SCOPE OF WORK
1. Introduction ......................................................................................................................... A-1
2. General Administration ...................................................................................................... A-1
A. Management Plan ....................................................................................................... A-1
B. Budgeting ................................................................................................................... A-2
C. Financial Management ............................................................................................... A-2
D. Contract Management ................................................................................................ A-2
E. Dispute Resolution Process ........................................................................................ A-2
F. Information Technology, Data Collection, Reporting ................................................ A-2
(1) Customer-Specific and Competitively Sensitive Information .............................. A-3
(2) Program Data Collection ...................................................................................... A-4
(3) Distribution Utility Planning and Ratemaking Support ....................................... A-4
(4) Administrative and Financial Data ....................................................................... A-4
(5) System Documentation .......................................................................................... A-4
(6) Required Reports ................................................................................................... A-5
(7) Information Requests ............................................................................................ A-6
3. Program Operations and Implementation ........................................................................... A-6
A. Core Programs ............................................................................................................ A-6
(1) Commercial Energy Opportunities ....................................................................... A-7
(2) Dairy Farms .......................................................................................................... A-7
(3) Low-Income Multifamily (REEP) ........................................................................ A-8
(4) Commercial and Industrial Credit ........................................................................ A-8
(5) Residential New Construction .............................................................................. A-8
(6) Efficient Products ................................................................................................. A-8
(7) Low-Income Single Family .................................................................................. A-9
(8) Emerging Markets ................................................................................................ A-9
B. Coordinate with WEC and BED ................................................................................. A-9
C. Manage Subcontractors and Implementers ................................................................ A-9
D. Quality Assurance ...................................................................................................... A-9
E. Coordinate with Other Energy Efficiency Activities ................................................. A-9
F. Coordinate with Distribution Utilities ...................................................................... A-10
G. Program Marketing, Information, and Education .................................................... A-10
H. Develop Independent Funding Sources .................................................................... A-11
4. Program Development, Planning and Budgeting ............................................................. A-11
A. Program and Measure Screening .............................................................................. A-11
B. Market Assessment and Characterization Activities ................................................ A-12
C. Coordinate Data Collection Activities ..................................................................... A-12
D. Support Resource Planning and Evaluation Activities ............................................ A-12
E. Distributed Utility Planning ..................................................................................... A-12
5. Program Transition Responsibilities ................................................................................. A-13
A. Transition During Program Initiation ....................................................................... A-13
B. Transition During Program Termination .................................................................. A-13
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III.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
IV.
ATTACHMENT B – COMPENSATION, PAYMENT AND PERFORMANCE
PROVISIONS
Total Agreement and Annual Compensation ......................................................................B-1
Eligible Costs and Expenses ................................................................................................B-1
Reimbursement for Costs Associated with Distributed Utility Planning ............................B-2
Limitation on Recovery of General Administrative Costs ..................................................B-2
Limitation on Recovery of Information Technology Costs .................................................B-3
Invoice Requirements ..........................................................................................................B-3
Invoice Review and Approval .............................................................................................B-3
Payment of Invoices ............................................................................................................B-4
Performance Incentive Mechanism .....................................................................................B-4
Fund-Shifting Among Core Programs ................................................................................B-4
Annual Request for Reallocation of Funds ..........................................................................B-5
No Employee Benefits for Contractor ................................................................................B-5
Reliance by State on Representations ..................................................................................B-6
Set Off ..................................................................................................................................B-6
Taxes Due the State .............................................................................................................B-6
Suspension of Payment to Contractor .................................................................................B-6
No Resale .............................................................................................................................B-7
ATTACHMENT C – PERFORMANCE INCENTIVE MECHANISM
1. Overview ..............................................................................................................................C-1
2. Performance Awards: Categories ........................................................................................C-1
A. Program Results Indicators .........................................................................................C-1
B. Market Effects Indicators ............................................................................................C-1
C. Activity Milestones .....................................................................................................C-1
3. Performance Awards: Overall Weights ...............................................................................C-2
4. Description of Performance Indicators ................................................................................C-4
A. Cumulative Annual Electricity Savings ......................................................................C-4
(1) Target and Threshold .............................................................................................C-4
(2) Weighting ..............................................................................................................C-4
(3) Performance Award ...............................................................................................C-5
(4) Documentation and Verification ...........................................................................C-5
B. Electricity Savings for Projects under Development ..................................................C-6
(1) Target and Threshold .............................................................................................C-7
(2) Weighting ..............................................................................................................C-7
(3) Performance Award ...............................................................................................C-7
(4) Documentation and Verification ...........................................................................C-8
C. Total Resource Benefits ..............................................................................................C-8
(1) Target and Threshold .............................................................................................C-8
(2) Weighting ..............................................................................................................C-9
(3) Performance Award ...............................................................................................C-9
(4) Documentation and Verification ...........................................................................C-9
D. Other Program Performance Indicators .....................................................................C-10
4
(1) Performance Indicators for the Year 2000 ...........................................................C-10
(2) Performance Indicators for the Years 2001 and 2002 ........................................C-11
E. Table C-4: Performance Award Indicators for the Year 2000 ..................................C-12
F. Table C-6: Performance Award Indicators for the Year 2001 ..................................C-13
G. Table C-7: Performance Award Indicators for the Year 2002 ..................................C-14
V.
ATTACHMENT D – CALCULATION OF TOTAL CAP
VI.
ATTACHMENT E – ESTIMATED BUDGET AS OF 3/1/00
VII.
ATTACHMENT F – LIST OF KEY PERSONNEL
VIII. ATTACHMENT G – SECTIONS A-I OF THE RESPONSE
A. Summary ..................................................................................................................................1
B. Technical Approach .................................................................................................................8
B.1
Overall Strategic Approach and Design ....................................................................8
B.2
Setting and Achieving Program Performance Goals ...............................................15
B.3
Program Administration and Implementation .........................................................24
B.3.b Core Programs – Implementation and Operations
Commercial Energy Opportunities (CEO) Program ....................................26
Dairy Farms Program (Farms) .....................................................................49
Low-Income Multifamily Program (REEP) ................................................61
Customer Credit Program (CC) ...................................................................76
Residential New Construction Program (RNC) ...........................................87
Efficient Products Program (Products) ......................................................106
Low-Income Single-Family Program (LISF) ............................................124
Emerging Markets Initiative ......................................................................137
B.3.d EEU General Administration ................................................................................146
B.4
Ongoing Program Development, Planning and Budgeting ....................................174
B.5
EEU Performance Incentives ................................................................................189
C. Organization and Management Capability ...........................................................................196
D. EEU Budget ..........................................................................................................................250
E. Unique Assets .......................................................................................................................294
F. Marketing and Customer Service ........................................................................................297
G. Overall Approach to Program Transition ............................................................................312
H. Information Technology .......................................................................................................318
I. Managing Customer Specific and Competitively Sensitive Information .............................363
IX.
I.
ATTACHMENT H – THE RFP
Introduction...............................................................................................................................7
A. Purpose of this Request for Proposals ..............................................................................7
B. Overview of Institutional Structure ..................................................................................7
C. Project History/Background .............................................................................................9
D. Mandatory Requirements ...............................................................................................10
5
E. Relationship of the EEU to the Board ............................................................................11
F. Position of the EEU in Future Electricity Sales in Vermont ..........................................11
II. Energy Efficiency Program Descriptions ...............................................................................12
A. Commercial and Industrial market opportunities ..........................................................12
B. Commercial and industrial New Construction ..............................................................12
C. Dairy Farm Program .......................................................................................................13
D. Residential New Construction ........................................................................................13
E. Residential Low-Income ................................................................................................13
F. Efficient Products Program ............................................................................................13
G. Emerging Market Initiatives...........................................................................................13
H. Additional Program Information ....................................................................................14
I. Historical Program Information .....................................................................................14
III. Scope of Services ....................................................................................................................16
A. Mission and Objectives ..................................................................................................16
B. Organization of this Section ...........................................................................................17
C. General Administration ..................................................................................................17
D. Program Operations and Implementation ......................................................................22
E. Program development, planning and budgeting .............................................................25
F. Program Transition Responsibilities ..............................................................................27
IV. Special Project Considerations ...............................................................................................29
A. Contract Administrator and Fiscal Agent.......................................................................29
B. Electric Utility Employee/Subcontractor Transition ......................................................29
C. EEU Use of Subcontractors............................................................................................29
D. Certain Subcontracting Provisions .................................................................................29
E. Account Correcting for Efficiency (ACE) .....................................................................30
F. Distributed Utility Planning ...........................................................................................30
G. Program Budget..............................................................................................................30
H. Contract Terms ...............................................................................................................31
I. Property Owned by the State ..........................................................................................31
V. Response Format and Proposal Requirements .......................................................................32
A. Summary ........................................................................................................................32
B. Technical Approach .......................................................................................................32
C. Organizational and Management Capability .................................................................35
D. EEU Budget ...................................................................................................................37
E. Unique Assets .................................................................................................................39
F. Marketing and Information Strategy ..............................................................................39
G. Approach to Program Transition ....................................................................................39
H. Information Technology Plan.........................................................................................39
I. Managing Customer-Specific and Competitively Sensitive Information ......................40
J. Insurance Certificate ......................................................................................................40
K. Transmittal Letter ...........................................................................................................40
VI. Proposal Evaluation ................................................................................................................41
A. Selection Process ............................................................................................................41
B. Evaluation Criteria .........................................................................................................41
VII. Stipulated Administrative Requirements...............................................................................45
A. Bidder Instructions .........................................................................................................45
6
B. RFP Conditions ..............................................................................................................47
VIII. RFP Library ..........................................................................................................................51
IX. Definition of Terms ................................................................................................................52
X. Appendices .............................................................................................................................53
X.
ATTACHMENT I – SCOPE OF WORK 2003 - 2006
I.
General Administration ......................................................................................................... I-1
A. Budgeting ...................................................................................................................... I-2
B. Financial Management .................................................................................................. I-2
C. Contract Management ................................................................................................... I-2
D. Dispute Resolution Process ........................................................................................... I-2
E. Information Technology, Data Collection, Reporting................................................... I-3
1. Manage Customer-Specific and Competitively-Sensitive Information ................... I-3
2. Data Collection ......................................................................................................... I-3
3. Distribution Utility Planning and Ratemaking Support Data................................... I-4
4. Administrative and Financial Data ........................................................................... I-4
5. Data System Documentation/User’s Manual ........................................................... I-4
6. Required Reports ...................................................................................................... I-5
7. Information Requests ............................................................................................... I-7
II. Services and Initiatives .......................................................................................................... I-7
A. Markets, Services and Initiatives .................................................................................. I-7
B. Annual Plan ................................................................................................................. I-10
C. Coordinate EEU Service Delivery with BED ............................................................. I-10
D. Coordinate Delivery of the EEU’s Residential New Construction Services with
WEC in WEC’s Service Territory................................................................................ I-11
E. Manage Subcontractors and Implementers ................................................................. I-11
F. Quality Assurance ....................................................................................................... I-12
G. Coordinate With Other Energy Efficiency Activities ................................................. I-12
H. Technical Assistance and Educational Support for Energy Code Activities .............. I-12
I. Coordinate with Distribution Utilities ......................................................................... I-12
J. Marketing, Public Information, and Education ........................................................... I-13
K. Develop Independent Funding Sources....................................................................... I-13
L. Cost-Effectiveness Screening ...................................................................................... I-13
M. Support for Resource Planning, Market Assessment and Evaluation Activities ........ I-14
N. Distributed Utility Planning ........................................................................................ I-14
O. Limitations on Performance Contracting and Loan Guarantees ................................. I-14
P. Transition .................................................................................................................... I-15
XI.
1.
2.
3.
4.
ATTACHMENT J – COMPENSATION, PAYMENT AND PERFORMANCE
PROVISIONS 2003 - 2006
Total Compensation ...............................................................................................................J-1
Eligible Costs and Expenses ..................................................................................................J-1
Reimbursement for Costs Associated with Distributed Utility Planning .............................. J-2
Limitation on Recovery of General Administrative Costs ....................................................J-2
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5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Limitation on Recovery of Information Technology Costs ...................................................J-3
Invoice Requirements ............................................................................................................J-3
Invoice Review and Approval ............................................................................................... J-3
Payment of Invoices ..............................................................................................................J-4
Performance Incentive Mechanism .......................................................................................J-4
Fund-Shifting Between the Business Sector and the Residential Sector ............................... J-4
Annual Request for Carryover of Funds ................................................................................J-5
No Employee Benefits for Contractor ..................................................................................J-5
Reliance by State on Representations ....................................................................................J-6
Set Off ....................................................................................................................................J-6
Taxes Due to the State ...........................................................................................................J-6
Suspension of Payment to Contractor ...................................................................................J-6
No Resale ............................................................................................................................... J-6
Inadequate Appropriations.....................................................................................................J-6
XII.
ATTACHMENT K – PERFORMANCE INCENTIVE MECHANISM 2003 – 2005
I.
II.
III.
IV.
V.
Overview.............................................................................................................................. K-1
Performance Awards: Categories ....................................................................................... K-1
Performance Awards: Overall Weights .............................................................................. K-1
Performance Awards: Minimum Performance Requirements ............................................ K-2
Description of Performance Indicators ................................................................................ K-4
A. Cumulative Annual Electricity Savings ...................................................................... K-4
1. Target and Threshold ............................................................................................. K-4
2. Weighting ............................................................................................................... K-5
3. Performance Award ................................................................................................ K-5
4. Documentation and Verification ............................................................................ K-5
B. Electricity Savings for Projects Under Development ................................................. K-6
1. Target and Threshold ............................................................................................. K-6
2. Weighting ............................................................................................................... K-7
3. Performance Award ................................................................................................ K-7
4. Documentation and Verification ............................................................................ K-7
C. Total Resource Benefits .............................................................................................. K-8
1. Target and Threshold ............................................................................................. K-8
2. Weighting ............................................................................................................... K-9
3. Performance Award ................................................................................................ K-9
4. Documentation and Verification ............................................................................ K-9
D. Summer Peak kW Demand Savings .......................................................................... K-10
1. Target and Threshold ........................................................................................... K-10
2. Weighting ............................................................................................................. K-10
3. Performance Award .............................................................................................. K-10
4. Documentation and Verification .......................................................................... K-11
E. Performance Indicators for Residential and Business Markets ................................. K-12
F. Table K-2: 2003-2005 Performance Award Indicators ............................................ K-14
G. Table K-3: Scaling Thresholds and Examples for Achievement Between
Thresholds ................................................................................................................. K-15
8
H. Table K-4: Minimum Performance Requirements ................................................... K-16
XIII. ATTACHMENT L – CALCULATION OF TOTAL CAP 2000 – 2006
XIV. ATTACHMENT M – ESTIMATED CONTRACTOR EEC FUNDS 2003 – 2005
XV.
ATTACHMENT N – ESTIMATED BUDGET FOR 1/1/2003 THROUGH
12/31/2005
XVI. ATTACHMENT O – LIST OF KEY PERSONNEL 2003 – 2005
XVII. ATTACHMENT P – DISTRIBUTION LIST FOR REPORTS AND OTHER
INFORMATION SHARING DOCUMENTS 2003 – 2005
XVIII. ATTACHMENT Q – BOARD-APPROVED ANNUAL PLAN FOR YEAR 2002
1.
2.
3.
Introduction and Summary .......................................................................................................4
Changes to Existing Core Programs .........................................................................................7
A. Commercial Energy Opportunities Program ....................................................................7
B. Commercial & Industrial Emerging Markets Program ....................................................9
C. Dairy Farms Program .....................................................................................................15
D. Efficient Products Program ............................................................................................16
E. Residential Energy Efficiency Program .........................................................................17
F. Low Income Single Family Program .............................................................................18
G. Residential Emerging Markets Program ........................................................................19
H. Residential New Construction Program .........................................................................20
Budget and Goal Modifications ...........................................................................................24
XIV. ATTACHMENT R – AMENDED MAIN BODY WHICH INCORPORATES THE
CHANGES FROM AMENDMENT NUMBER ONE TO THE
AGREEMENT
1.
2.
3.
4.
5.
6.
7.
8.
9.
Parties ...................................................................................................................................R-1
Definitions ............................................................................................................................R-1
Scope of Work.......................................................................................................................R-3
Standards of Performance .....................................................................................................R-3
Compensation .......................................................................................................................R-4
Term of Agreement ...............................................................................................................R-4
Prior Approvals .....................................................................................................................R-5
Amendment...........................................................................................................................R-5
Termination of Agreement ....................................................................................................R-5
A. Termination at Will ......................................................................................................R-5
B. Termination for Cause ..................................................................................................R-6
C. Termination – Bankruptcy ...........................................................................................R-6
D. Responsibilities of Parties Upon Expiration or Termination of Agreement .................R-6
10. Committed Incentive Payments ............................................................................................R-8
11. Notifications Required Under this Agreement ......................................................................R-8
9
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
Reporting Requirements .......................................................................................................R-8
Insurance ...............................................................................................................................R-9
Independent Contractor-Relationship to Board .................................................................R-10
Indemnification ...................................................................................................................R-10
Assignment of Sublet of Contract.......................................................................................R-11
Records Available for Audit and Inspection ......................................................................R-11
Inspection of Work by Board ..............................................................................................R-12
Ownership of Data, Records and Intellectual Property ......................................................R-12
A. Data ............................................................................................................................R-12
B. Work Product ..............................................................................................................R-12
C. Equipment and Materials Provided by or for Use by State ........................................R-13
D. Research Reports or Similar Publications ..................................................................R-13
E. Extension to Subcontractor(s) and Others ..................................................................R-14
F. Paragraph 19 Survives Expiration or Termination of This Agreement ......................R-14
Permits, Laws, Regulations and Public Ordinances ...........................................................R-14
Conflict-of-Interest Provision .............................................................................................R-14
Legislative Testimony ........................................................................................................R-15
Appearance in Board Proceedings......................................................................................R-15
Retail Sales Restriction .......................................................................................................R-15
Use of EEU’s Name............................................................................................................R-16
No Gifts or Gratuities .........................................................................................................R-16
Fair Employment Practices and American Disabilities Act ...............................................R-17
Force Majeure .....................................................................................................................R-17
Severability .........................................................................................................................R-17
Survival of Requirements ...................................................................................................R-17
Waiver.................................................................................................................................R-17
Applicable Law ...................................................................................................................R-17
Entire Agreement ................................................................................................................R-17
10