Vermont-VEIC Contract for EEU
ATTACHMENT A
SCOPE OF WORK
This Attachment provides the scope of work that the Contractor will perform. Contractor shall
perform the following duties and functions established by the Board for the EEU in the manner
described below. Contractor shall be subject to Board oversight and control in the performance
of the duties and functions set forth in this Attachment.
Introduction
The Contractor shall exercise substantial responsibility and initiative to ensure that the
following State energy efficiency policies and objectives are accomplished: (1) achieve the
maximum magnitude of societal net benefits while acquiring comprehensive cost-effective
electric efficiency savings; (2) respond appropriately to markets in order to increase the level
of and comprehensiveness of energy efficiency services to Vermonters; (3) effectively
capture potential “lost opportunity” markets; (4) provide a standard level of service to all
customer classes and geographic regions; and (5) target delivery of additional services to help
minimize the need to upgrade Vermont’s transmission and distribution infrastructure.
The Contractor shall also interact with members of the public and numerous other
organizations including State Agencies, the Vermont electric utilities, the Vermont
Legislature, and national, regional, and local energy efficiency organizations. Nothing in this
contract shall limit the Board’s authority to conduct proceedings under, or to implement, 30
V.S.A. § 209(d), as interpreted by the Board in the 5980 Order and any subsequent orders.
The specific duties to be performed by the Contractor are grouped into two major tasks and
are described in detail in the remaining two sections of this Attachment: (1) Administration,
and (2) Services and Initiatives. This Attachment includes references to specific portions of
the MOU, the 5980 Order, and the RFP, when appropriate.
I. Administration
The Contractor is responsible for the maintenance, ongoing development and monitoring of
its own management and operational systems, including: (1) general project management; (2)
budgeting; (3) financial management; (4) contract management; (5) dispute resolution; and
(6) information technology system management and data collection. The Contractor shall
maintain and enhance as it deems appropriate a management reporting system that enables its
management to ensure proper control over its operational activities and strategic direction
and facilitates the preparation of required reports and evaluation of its performance as the
EEU.
A. Budgeting
The Contractor shall develop, monitor and manage the overall budget for its operation.
The Contractor shall manage the budget for the period of 1/1/2006 through 12/31/2008
(as detailed in Attachment F) as a three-year budget. In order to plan, manage and report
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on progress over the course of the contract, the Contractor will also develop, and may
revise over time, forecasts of costs expected to be incurred in each quarter and each year
of the contract. Such cost forecasts shall not be subject to Board approval and will be
submitted to the Board only to provide the Board with detailed information on the
Contractor’s progress and ongoing expected costs. As part of Contractor’s Annual Plan
pursuant to Paragraph II.B, below, the Contractor shall submit the latest available costs
for the current year and provide an updated forecast of future annual costs for the balance
of the contract. Budget and forecast categories and the detail of breakdown shall be, at a
minimum, the same as those used in the budget set forth in Attachment F.
B. Financial Management
The Contractor shall maintain the necessary budgeting, invoicing, expenditure approval,
payroll, and financial accounting systems to review, approve, and track budgets, invoices
and payments associated with carrying out this Scope of Work. The Contractor shall
maintain financial and accounting records consistent with Paragraph III.C.2 of the RFP
and with Generally Accepted Accounting Principles consistently applied. The Contractor
shall provide information and documentation required for an OMB A-133 audit, which
the Contractor shall have performed on an annual basis.
C. Contract Management
The Contractor shall solicit, hire and/or contract with all necessary staff and
subcontractors to effectively perform the Work. The Contractor shall maintain the
administrative capability to manage these resources, ensure the completion of each task
and sub-task effectively, and ensure that subcontractors are compensated in a timely
manner.
D. Dispute Resolution Process
In conjunction with the Contract Administrator and the Director of the Consumer Affairs
and Public Information Division at the DPS, the Contractor shall maintain protocols for
addressing and resolving complaints concerning performance of its responsibilities from
customers and stakeholders such as electric utilities, subcontractors, and Market Actors.
E. Information Technology, Data Collection, Reporting
The Contractor shall maintain and, as it deems necessary and/or appropriate, enhance an
information management system that meets the specifications, reporting and monitoring
tasks outlined in the RFP, and supports invoices and bids related to Contractor’s
participation as the EEU in the regional capacity market. Information in this system shall
include, but not be limited to, tracking data on customers, Market Actors, service activity,
projects, measures, costs and savings. The system shall continue to have the ability to
produce ad hoc reports for occasional information requests from the Board, the DPS and
the Contract Administrator.
1. Manage Customer-Specific and Competitively-Sensitive Information
The Contractor has developed a Confidential Information Management System that
was approved by the Contract Administrator in December 2004. The purpose of this
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system is to provide appropriate protections in the collection, processing, storage and
retrieval of information that is customer-specific or could otherwise provide an unfair
competitive advantage to an entity delivering services outside of the energy efficiency
services approved by the Board for EEU implementation. The Contractor shall be
responsible for managing this system. When appropriate the Contractor shall be
responsible for providing customer-specific and/or competitively-sensitive
information to its employees, subcontractors, regulators, Vermont electric utilities and
ISO-NE. Any subcontractors given such information shall also protect its
confidentiality and shall agree in their contract(s) with the Contractor (1) to abide by
the guidelines detailed in the Confidential Information Management System
referenced above, and (2) not to provide any confidential information to affiliates not
directly involved with EEU activities. Any substantive changes made to the approved
December 2004 Confidential Information Management System shall be submitted in
writing to the Contract Administrator for approval prior to implementation.
Regardless of whether the Contractor follows its system for managing confidential
information, the Contractor is solely responsible for the intentional or accidental
release of any confidential information. The Contractor agrees to indemnify the
Board and the State for any claims resulting from the release of any confidential
information.
2. Data Collection
The Contractor shall collect and electronically compile data that are: (1) directly
related to its energy service implementation activities; (2) easily obtainable by the
Contractor as part of its routine implementation activities; (3) needed to monitor,
assess, and evaluate its performance, to report on its activities, to improve the design
and delivery of services; and (4) needed to support Contractor’s regional capacity
market activities. Data from distribution utilities, subcontractors and employees shall
be collected and stored electronically in a consistent format in the following
categories:
 Customer/Client Data;
 Customer Usage Data;
 Measures and Services Data;
 Market Actor Data;
 Distribution Utility Account Data; and
 Other Data for Market Assessment and Evaluation Purposes.
The Contractor shall make this information available to the Board, the DPS staff and
any independent evaluation firms under contract to the Board or the DPS, subject to
the confidentiality procedures outlined in Paragraph I.E.1.
The Contractor shall coordinate, manage and secure all such data identified in the
above list that it needs to obtain from the distribution utilities. If a distribution utility
is not responsive to a data request from the Contractor after a reasonable period of
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time, then the Contractor may ask the Contract Administrator to resolve the dispute,
or if unresolved, to bring the dispute to the attention of the Board.
The parties agree that this paragraph is not intended to require the Contractor to
secure data from distribution utilities that fail to respond to such request for data.
3. Distribution Utility Planning and Ratemaking Support Data
The Contractor shall continue to gather particular data elements for use by the
distribution utilities for their own planning and ratemaking purposes as stated
explicitly in the MOU (Paragraphs 8 and 9). The Contractor shall provide this data in
the same format and frequency that it did in Year 2005 (and as detailed in Attachment
H). Any changes to these formats will only be undertaken if such changes are
mutually acceptable to the Contractor and distribution utilities. Consistent with
Paragraph 39 of the MOU, and upon request, the Contractor shall provide distribution
utilities with reasonable estimates of electricity savings resulting from EEU
operations, including information or assumptions the Contractor collects or develops
as a matter of course in its normal business activities. As stated in Paragraph 39 of
the MOU: "The information to be provided under this paragraph shall be limited to
information created or maintained by the EEU in the ordinary course of business.
This paragraph does not create an obligation of the EEU to create information
specifically for a [distribution utility]."
4. Administrative and Financial Data
The Contractor shall keep records of administrative and financial data consistent with
the needs outlined in the RFP and with Generally Accepted Accounting Principles
consistently applied as defined by both the Governmental Accounting Standards
Board and the Financial Accounting Standards Board. This includes systems to track
general project management, invoicing, payroll and subcontractor payments, and to
produce the necessary reports for monitoring these duties. The DPS and the Contract
Administrator shall be provided access to this data as mutually agreed to by the DPS,
the Contractor and the Contract Administrator.
5. Data System Documentation/User's Manual
The Contractor shall maintain, and update as necessary, the documentation of the
Customized Software used for data tracking and reporting. The Contractor shall
provide the Contract Administrator and the DPS with any substantive changes to this
data system documentation.
6. Required Reports
The Contractor shall prepare and submit Monthly, Quarterly and Annual Reports as
described below. The Contractor shall work with the Board, the DPS and Contract
Administrator to identify and assess changes that might better satisfy the needs of the
Board, the Contract Administrator, the Fiscal Agent, the DPS, and the EEU Advisory
Committee (particularly in light of the Targeting Order and the Contractor’s
participation in the regional capacity market), simplify or clarify the presentation of
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information, and/or lower the costs of reporting. Proposed changes shall be submitted
to the Contract Administrator for approval, who shall make a determination about
such changes with advice from the DPS and, as appropriate, other interested parties.
a. Monthly Reports
The Contractor shall prepare and submit Monthly Reports to the Board, the
Contract Administrator, the DPS, and the EEU Advisory Committee. These
reports shall include: (1) actual expenditures for administrative, information
technology and service delivery costs compared to the annual component of the
approved three-year budgets; (2) MWh savings estimated results; and (3)
beginning with the April 2007 monthly report, kW summer and winter savings
estimated results.
Monthly Reports shall be submitted for February, April, May, July, August,
October, November, and December of Years 2006, 2007 and 2008.
b. Quarterly Reports
The Contractor shall prepare and submit Quarterly Reports to the Board, the
Contract Administrator, the DPS, and the EEU Advisory Committee. Quarterly
Reports shall be submitted for the following time periods:
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1/1/2006 through 3/31/2006
4/1/2006 through 6/30/2006
7/1/2006 through 9/31/2006
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1/1/2007 through 3/31/2007
4/1/2007 through 6/30/2007
7/1/2007 through 9/31/2007
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
1/1/2008 through 3/31/2008
4/1/2008 through 6/30/2008
7/1/2008 through 9/31/2008
Given that an Annual Report will be submitted after the end of each calendar year
a Monthly Report will be submitted for the periods ending 12/31/2006,
12/31/2007, and 12/31/2008 in lieu of a Quarterly Report.
Quarterly Reports shall include: (1) actual expenditures for administrative,
information technology, and service delivery costs compared to the annual
component of the approved three-year budgets; (2) committed customer incentive
payments as evidenced by a signed incentive contract that specifies that a future
incentive payment will be made to an EEU customer for energy efficiency
measures; (3) report of progress made towards achieving savings targets, and
other agreed-upon indicators of performance; (4) a summary of activity highlights
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for the quarter; and (5) a summary of any significant changes or anticipated
changes in implementation strategies and services.
Quarterly Reports shall also include information (when such information is made
available to the Contractor by EEU customers) on the degree of leveraging
(including customer contributions and grant funds) achieved by the Contractor.
c. Annual Reports
The Contractor shall prepare and submit Annual Reports to the Board, the
Contract Administrator, the DPS, the EEU Advisory Committee, and all Vermont
electric utilities.
The Contractor shall submit an Annual Report for Years 2006, 2007 and 2008.
If the Contractor is not chosen as the entity to continue to operate the EEU after
December 31, 2008 then the process for producing the annual report for Year
2008 and the associated annual savings verification process called for in
Attachment C shall be in accordance with the following schedule:
 The Contractor’s 2008 savings claim shall be submitted by March 2,
2009.
 The Board, the Contract Administrator, and the DPS will complete the
savings verification process by March 31, 2009.
 The 2008 Annual Report that includes any changes made as a result of the
savings verification process shall be submitted by May 1, 2009.
Annual Reports shall include: (1) actual expenditures for administrative,
information technology and service delivery costs compared to the annual
component of the approved three-year budgets; (2) committed customer incentive
payments as evidenced by a signed incentive contract that specifies that a future
incentive payment will be made to an EEU customer for energy efficiency
measures; (3) a summary of progress and highlights for the year, including any
significant changes in strategies or services; (4) report of progress toward
achieving savings targets, and other agreed-upon indicators of performance; and
(5) the annual verified savings data.
Annual Reports shall also include information (when such information is made
available to the Contractor by EEU customers) on the degree of leveraging
(including customer contributions and grant funds) achieved by the Contractor.
In addition to the above, the Contractor shall publish and distribute materials that
summarize annual report results for public distribution. The format of these
materials shall be as mutually agreed-upon by the Contractor, the Board, and the
Contractor Administrator, in consultation with the DPS.
d. Occasional Reports to Vermont Distribution and Transmission Utilities
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The Contractor shall provide information to individual Vermont distribution
utilities for planning and rate regulation purposes consistent with Paragraphs 9
and 39 of the MOU. This information is described in more detail in Paragraph
III.C.6.d of the RFP. The Contractor shall provide these reports in the same
format and frequency as in Year 2005 (and detailed in Attachment H). Any
changes to these formats will only be undertaken if such changes are mutually
acceptable to the Contractor and distribution utilities. The Contractor
understands that this information need not be provided to distribution utilities
more frequently than quarterly. Notwithstanding the previous sentence,
information required for a utility’s calculation of its Account Correcting for
Efficiency need not be provided more frequently than twice per year. As stated in
Paragraph 39 of the MOU: "The information to be provided under this paragraph
shall be limited to information created or maintained by the EEU in the ordinary
course of business. This paragraph does not create an obligation of the EEU to
create information specifically for a [distribution utility]."
The Contractor may also be requested to provide similar information, in the same
format and no more frequently, to individual Vermont transmission utilities.
e. Reporting by Sector
For the purposes of the required reporting as detailed in this section the Business
Sector and the Residential Sector are defined as follows:
Business Sector
Business New Construction
Existing Business
Residential Sector
Retail Efficient Products
Residential New Construction
Existing Homes
Existing Business consists of the following markets:
 Commercial and Industrial Retrofit
 Commercial and Industrial Equipment Replacement
Existing Homes consists of the following markets:
 Residential Retrofit
 Multifamily Retrofit
Residential New Construction consists of the following markets:
 Single Family New Construction
 Multifamily New Construction
f. Customer Credit Reporting
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Notwithstanding the above, Customer Credit costs and benefits may be included
and/or excluded and reported separately in different summary reports, as may be
agreed upon by the Contract Administrator. All reports that include Customer Credit
shall explicitly state so.
7. Information Requests
The Contractor shall respond in a timely and complete manner to any information
requests regarding budgets, expenditures, savings, and activities submitted by the
Board, the Contract Administrator, the Fiscal Agent, the DPS, and to reasonable
requests from the Chairperson of the EEU Advisory Committee.
The Contractor shall also respond in a timely and complete manner to any
information requests submitted by members of the Vermont Legislature or legislative
staff, including providing legislative testimony on EEU-related activities or energy
issues when requested. When providing legislative testimony, the Contractor shall
follow the guidelines contained in Paragraph 23 of the Main Body of this Agreement.
When providing a written response to a legislative inquiry, the Contractor shall
provide the Contract Administrator with a copy of the response.
II.
Services and Initiatives
The Contractor shall manage, oversee, implement, and modify as necessary a range of
energy efficiency service offerings and activities to effectively operate the EEU: (a) as
stated in the 5980 Order, the Budget Order, and the Targeting Order; (b) as detailed in
the MOU; (c) as provided for in the RFP and the Response; and (d) as further specified in
this Agreement, including the specific performance goals specified in Attachment C.
A. Markets, Services and Initiatives
In the Targeting Order, the Board established two primary functions for the use of EEU
Funds. The first function is to continue to provide services and initiatives throughout
Vermont that address the “Core Program” markets set forth in the MOU. In fulfilling this
function, Contractor shall continue to provide services consistent with the minimum
performance standards in Paragraph IV.A of Attachment C to all customer classes and
geographic regions. The second function is, as explained further below, to target some
peak capacity reductions across the state (initially), and ultimately energy and capacity
reductions in selected geographic areas.
1. Core Services
The MOU set forth seven “Core Programs” to be implemented by the EEU:
 Commercial and Industrial Market Opportunities;
 Commercial and Industrial New Construction;
 Dairy Farm Program;
 Residential New Construction;
 Residential Low-Income;
 Efficient Products Program; and
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
Emerging Market Initiatives.
Throughout the term of this Agreement, the Contractor will implement energy efficiency
services and activities that address all of these “Core Program” markets. Future changes
to the Contractor’s organization of markets for service delivery purposes will not affect
the requirement that the Contractor continue to serve the above “Core Program” markets.
At the start of this Agreement the Contractor will address all the above “Core Program”
markets with the following market services and initiatives, as further delineated in
Sections B.3 through B.4 of the Response:
Core Markets
1.
Business New Construction
2.
Existing Businesses
3.
Customer Credit
4.
Residential New Construction
5.
Existing Homes
6.
Retail Efficient Products
Market Initiatives
1.
Colleges and Universities
2.
Dairy Farms
3.
Industrial
4.
K-12 Schools
5.
Services to Low-Income Vermonters
6.
Multifamily Housing
7.
Ski Areas
8.
State Buildings
9.
Water and Wastewater Treatment Facilities
Cross-Sector Activities
1.
Better Buildings by Design Conference
2.
Community-Based Energy Projects
3.
Coordination with Other Energy Efficiency Activities
4.
Distributed Utility Services
5.
Energy Code Activities
6.
Leveraging Additional Funding
The above Market Initiatives and Cross-Sector Activities are subsets of the Core
Markets listed above.
As part of these services and initiatives, the Contractor will implement certain major
innovations identified in the Response, specifically including:
 Community-Based Energy Projects – an initiative to build awareness, leverage
community interests and resources, increase first-time participation and build energy
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
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efficiency infrastructure.
Colleges and Universities – increased partnership with Vermont higher education
institutions further addressing their facilities and academic programs, as well as
cooperative research and service learning opportunities.
Industrial – an increased focus on securing potential energy savings associated with
industrial process equipment which will also strengthen businesses and improve job
security.
Facility Operational Efficiency – an initiative to increase facility operational
efficiency through commissioning and improving building operational practices,
including the use of operational efficiency performance contractors.
Advanced Lighting and Daylighting – an increased effort to work with design
professionals, contractors and end users to make greater use of advanced lighting
design and technology.
This portfolio of services and initiatives, as described further in the Response, is deemed
to adequately address all of the “Core Program” market requirements of the MOU.
The Contractor will continue to make enhancements to market strategies, offerings and
initiatives based on new information, new opportunities, and the lessons of experience.
The Contractor shall inform the Contract Administrator and the DPS of any substantive
changes to services and initiatives, including a description of the change and the proposed
effective date of the change.
2. Targeting
The Budget Order increased the 2006, 2007, and 2008 budgets for the EEU program.
As shown on Attachment E, a portion of these higher annual budgets have been
added to Contractor EEU Funds. Consistent with the Targeting Order, Contractor
shall endeavor to use these additional Contractor EEU Funds to target resource
acquisition activities as discussed in more detail below. Any additional Contractor
EEU Funds not used for these targeted activities shall only be used to perform other
tasks set forth in the Work. It is expected that the Contractor’s activities related to
targeting will include planning for the delivery of targeted services.
Pursuant to the Targeting Order, Contractor shall initially target increased acquisition
of cost-effective peak-capacity savings wherever possible throughout the state. In
pursuing these measures, Contractor shall take into account only whether a particular
resource is cost-effective and not the location or type of customer.
Contractor shall continue to target peak-capacity savings statewide until it is able to
begin delivering services focused on acquiring capacity and energy savings in the four
geographic areas identified by the Board in the Geographic Targeting Order. While
Contractor shall make all reasonable efforts to begin delivering services targeted in
the specific geographic areas as soon as possible, it is likely that there will be a
transition period during which Contractor is planning for the delivery of
geographically-targeted services and continuing to deliver increased services aimed at
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acquiring cost-effective peak-capacity savings throughout the state.
It is expected that Contractor’s geographically-targeted activities may include
expansions of, or enhancements to, services and initiatives offered statewide, as
well as new services and initiatives offered only in the designated areas. It is
anticipated that the enhanced or additional services offered by Contractor may
differ among areas.
Successful implementation of geographic targeting will require increased
coordination between Contractor and affected utilities. Consistent with the
Geographic Targeting Order, Contractor shall provide an estimate of the amount
of energy efficiency savings that can be achieved in each geographic area that the
affected utilities can use in their planning efforts. In addition, Contractor shall
work with the electric utilities and the DPS to ensure the collection of appropriate
information necessary to adequately evaluate the geographic targeting efforts.
On or before February 15, 2007, Contractor shall file with the Board a proposed
protocol for: (1) determining the cost-effectiveness of the geographically-targeted
energy-efficiency measures; and (2) evaluating whether the targeted measures have
effectively deferred transmission and distribution upgrades.
B. Annual Plan
The Contractor shall prepare and submit a combined Annual Plan for Years 2007 and
2008 by June 1, 2007; and an Annual Plan for Year 2009 by November 1, 2008.
However, the Contractor shall not be required to prepare an Annual Plan for Year 2009 if
the Contract is not renewed as provided for in Paragraph 6 of the Main Body of the
Contract.
In these Plans, the Contractor shall summarize market intervention strategies, service
offerings, markets initiatives and other planned implementation activities for the year or
years covered by the Plan. These components shall be presented as part of an integrated
market strategy for each of the two primary market sectors: Business and Residential.
These plans shall be developed in consultation with the DPS and the EEU Advisory
Committee. In developing these Annual Plans, the Contractor shall also make full use of
the following information:
 Reports from the EEU market assessment and evaluation activities undertaken by
the DPS;
 The Contractor’s formal Quality Assurance system (including participant
satisfaction/feedback records);
 Feedback from subcontractors;
 Ongoing, informal feedback from individual participants;
 Ongoing solicited and unsolicited input from business, professional and trade
associations, trade allies, and other groups with which the Contractor interacts
over the year; and
 The Contractor’s knowledge of regional and national information regarding
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energy efficiency technologies and opportunities, program experience and
evaluation results.
On or before February 15, 2007, Contractor shall file a status report on the
development of its Annual Plan for Years 2007 and 2008. This status report shall
briefly describe: (1) the planning activities Contractor has undertaken and intends to
undertake to develop the Annual Plan for Years 2007 and 2008; (2) any operational
issues Contractor is addressing as part of this planning process; and (3) the service
delivery or other preparatory activities that have been implemented or will be
implemented prior to the completion of the Annual Plan for Years 2007 and 2008.
Any major changes to be made between Annual Plan filings shall be included as part of
Quarterly Reports to the Board specified in Paragraph I.E.6.b of this Attachment.
C. Coordinate EEU Service Delivery with BED
The Contractor shall make every reasonable effort to coordinate EEU statewide energy
efficiency services and initiatives with BED’s self-administration of core market services
within BED service territory, consistent with the Board’s August 1, 2002 “Decision in re:
Report of the Department of Public Service to the Board on Vermont’s Energy Efficiency
Utility” (pp. 5-7); the Board’s Orders in Docket 5980; and the MOU. The Contractor
shall work to develop an annual coordination agreement with BED, to be submitted to the
Contract Administrator no later than January 31 of each contract year. The Contractor
shall also attempt to negotiate a cost-sharing agreement with BED which recognizes (1)
that parallel or overlapping efforts may be more efficiently and economically performed
by either BED or the Contractor on behalf of both entities, and (2) that many services and
activities that the Contractor necessarily provides on a statewide basis fulfill or reduce
certain of BED’s obligations related to delivery of EEU services in BED’s service
territory. This cost-sharing agreement between the Contractor and BED shall provide a
mechanism for fair exchange of compensation for EEU services between the two entities.
Any disputes between the Contractor and BED regarding the coordination efforts or
compensation detailed above shall be mediated by the Contract Administrator. If the
Contract Administrator cannot settle such a dispute, then the dispute shall be submitted to
the Board for a final and binding decision.
D. Manage EEU Staff and Subcontractors
The Contractor shall solicit, select, hire and oversee employees and subcontractors to
perform the Work, and develop methods for managing their performance and
compensation. The Contractor shall strive to bring in industry-specific and technologyspecific specialized expertise on an as-needed basis to provide the appropriate level of
energy efficiency technical assistance to EEU business customers. The Contractor shall
review, approve if appropriate, and pay subcontractor and EEU expenses in a timely
manner.
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E. Quality Assurance
The Contractor shall maintain quality assurance standards and procedures, to be set forth
by the Contractor in a written Quality Assurance Plan, copies of which shall be provided
to the Board, the Contract Administrator and the DPS. The Contractor shall ensure that
both direct employees and subcontractors apply the quality assurance standards and
methods set forth in the Quality Assurance Plan. Any substantive changes to the Quality
Assurance Plan shall be provided to the Board, the Contract Administrator and the DPS.
The Quality Assurance Plan shall include the dates for submission of Quality Assurance
Reports.
F. Coordinate With Other Energy Efficiency Activities
The Contractor shall coordinate its EEU activities with those of state, regional and
national energy efficiency efforts, including (1) the U.S. Department of Energy/
Environmental Protection Agency Energy Star Program; (2) Northeast Energy Efficiency
Partnerships; (3) the Vermont Weatherization Assistance Program; (4) the School Energy
Management Program of the Vermont Superintendents' Association; and (5) the Act 250
process (10 V.S.A. §§ 6081-6092). Other state, regional or national initiatives or
organizations may emerge in the future; the Contractor shall be expected to evaluate the
potential benefits of those efforts and coordinate with and participate in them in a manner
that is consistent with the EEU’s mission and the State’s policy objectives for energy
efficiency.
G. Technical Assistance and Educational Support for Energy Code Activities
The Contractor shall provide technical support and training regarding the Residential
Building Energy Standards (RBES), as defined in 21 V.S.A. § 266, and the Commercial
Building Energy Standards (CBES), as defined in 21 V.S.A. § 268. Any support activities
that are funded by Contractor EEU Funds shall be described in the Annual Plan. The
anticipated support includes, but is not limited to:

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
Direct technical assistance, including a telephone “hot line”;
Development, production and delivery of educational materials; and
Development and delivery of workshops and professional training.
The Contractor shall provide technical support, but shall not be responsible for RBES or
CBES activities that require the development of new provisions for the energy code,
legislative advocacy regarding adoption of new or updated energy codes, or the
evaluation of energy code activities.
H. Coordinate With Vermont Distribution and Transmission Utilities
The Contractor shall coordinate on energy efficiency programs implemented by Vermont
distribution and transmission utilities on their own behalf (e.g., voluntary system-wide
programs provided by a distribution utility in its own service territory, a geographicallytargeted effort under the Distributed Utility Planning framework, or such other framework
as the Board may determine is necessary to ensure least-cost planning objectives are
carried out.) The Contractor shall also coordinate with Vermont distribution and
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transmission utilities to determine whether power quality and power factor may be
affected in situations in which the application of programs or program technologies might
have a significant material impact on the integrity of a distribution or transmission
utility’s transmission and distribution system or a customer's facility. If problems are
identified, the Contractor shall cooperate with the affected distribution or transmission
utility and/or customer to resolve the problem.
I. Working With and Through Vermont Product and Service Providers
To both achieve resource acquisition and accomplish the Board's market transformation
goals, the Contractor shall work with and through Vermont providers of efficiencyrelated products and services, including design professionals (architects, engineers and
designers), energy service providers, contractors, retailers, distributors, suppliers and
manufacturers. The Contractor shall strive to affect critical decision points in the supply
chain that impact energy efficiency decisions in the marketplace by providing targeted,
strategic support to these Market Actors, including, but not limited to:

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Training and education to build efficiency-related skills and knowledge;
Project-specific technical assistance;
Provision of software, design guides, manuals and other technical resources;
Promotion to consumers of the products and services offered by these
providers; and
Financial incentives to these providers to overcome specific market barriers.
In carrying out this work the Contractor shall seek to expand the availability of energy
efficiency products and services available from Vermont providers and seek to increase
the standard-practice levels of efficiency in these products and services. In providing
EEU services, the Contractor shall not use its own employees to provide any design or
engineering services that are required to be provided by licensed professional architects
and engineers, and shall not provide certifications of designs or engineering that assume
professional liability.
J. Installation of Energy Efficiency Measures
The Contractor shall promote, utilize and support the development of the broad network
of Vermont businesses to provide for the installation of energy efficiency measures. The
Contractor will rely on this network of building, electrical, mechanical, HVAC, and other
contractors to provide and install energy efficiency measures. The Contractor’s
employees shall only engage in the direct provision of efficiency measures to EEU
customers under certain circumstances, as described further below, and only with prior
approval from the Contract Administrator.
The circumstances where it may be appropriate for the Contractor’s employees to directly
provide or install efficiency measures are limited situations where relying on other
providers would not be feasible or as cost-effective. This can occur when other providers
do not or can not provide certain services or where there are critical cost savings by
providing direct installation of certain measures through concurrent delivery with other
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program services provided by the Contractor. For example, the Contractor’s employees
during the term of the prior EEU contract directly installed screw-in compact fluorescent
bulbs and other low-cost measures in both single family homes and multifamily
buildings. Such minor measure installations would not have been cost-effective to
deliver as a stand-alone service by an independent business, but were cost-effective when
installed by the Contractor’s employees while they were already on-site performing other
EEU-related services (e.g. inspections, customer service, etc.). Such direct installation of
energy efficiency measures by the Contractor’s employees shall not exceed, without prior
Board approval, 5% of its total energy efficiency incentive budget.
For the purposes of this clause, all EEU subcontractors, such as the Vermont low-income
weatherization agencies that are providing EEU services (including installation of
measures) to low income households under subcontract with the Contractor, shall be
considered to be independent businesses, not subject to the limitations on the Contractor
contained in this clause.
K. Consumer Marketing, Public Information, and Education
As detailed in Section F of the Response, the Contractor shall implement marketing,
public education and consumer information activities as part of a strategy to (1) promote
customer participation in and market awareness of EEU services, (2) increase consumer
awareness and understanding of the benefits of energy efficiency, (3) increase consumer
demand for energy efficient products and services, and (4) affect consumer decisionmaking in consumer-driven energy efficiency choices. At a minimum, the Contractor
will provide: (1) a toll-free number as described in 30 V.S.A. § 209(d)(3); (2) a web page
describing services available to customers; (3) effective customer response and referral
procedures; and (4) a system for tracking, addressing and resolving customer complaints
promptly.
The Contractor shall also develop and implement energy education and technical training
services and initiatives, including cooperative activities with Vermont educational
institutions, vocational training, and continuing education.
L. Develop Independent Funding Sources
The Contractor shall, to the best of its ability, facilitate the development of, and/or
develop, independent energy efficiency funding mechanisms that leverage non-EEU
funds (such as grant and Federal funds). The Contractor shall develop and implement
mechanisms to help overcome lack of customer access to financing for efficiency
investments so that customer contributions to measure costs can be maximized consistent
with the Board’s principles of sound program design.
M. Cost-Effectiveness Screening
When assessing the cost-effectiveness of efficiency measures, the Contractor shall utilize
the Societal Test as described by the Board in its April 16, 1990 Order in Docket No.
5270. The Contractor shall use statewide cost-effectiveness screening tools provided by
the DPS in its planning and implementation activities. The Contractor shall use the
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externality values approved by the Board (currently 0.7 cents/kwh). The Board approved
revised avoided cost projections on November 21, 2006. The Contractor will begin using
these new avoided costs by July 1, 2007, but may request an extension to this deadline if
unforeseen circumstances arise.
The Contractor shall keep current documentation on all measure and program
assumptions. Changes to existing measure characterizations and program assumptions,
and all assumptions for new measures and programs, shall be coordinated with the DPS.
All changes shall be documented in the Technical Reference Manual, including the basis
for the new assumption. The Contractor shall provide annually the Technical Reference
Manual to the Board, DPS and the Contract Administrator. The Contractor shall provide
on an ongoing basis any substantive changes in the TRM to the Board, DPS and the
Contract Administrator.
N. Support for Resource Planning, Market Assessment and Evaluation Activities
The Contractor has primary responsibility, unless otherwise directed by the Board, for
determining whether and to what extent it will collect, compile, and assess information
on: (1) the characteristics and current status of markets targeted by current strategies and
markets that are potential targets for new strategies and service offerings; and (2) new
technologies and market intervention strategies. This information may include changes or
expected changes in these markets, opportunities for emerging energy efficiency
technologies and practices, and the status and progress of EEU-funded programs in
capturing the potential for cost-effective energy savings. The Contractor’s
responsibilities with respect to collecting information related to market transformation
effects shall be limited to data about its efforts (e.g., the Contractor will collect
information about its installations, but is not responsible, for example, for collecting
information about awareness of new energy efficient technologies among Vermont
residents).
The Contractor shall provide data and information collected under this Paragraph and
Paragraph I.E.2 of this Attachment to support the DPS’s demand-side management
resource planning and evaluation activities, in particular: (1) the DPS’s obligation to
conduct EEU program evaluation (MOU, Paragraph 11); (2) the DPS’s evaluation of the
Contractor’s performance, market conditions, and available demand-side management
potential; and (3) any additional measurement and verification activities as required for
participation in the regional capacity market. In addition, the Contractor shall be
available for consultation with the DPS regarding the development of the DPS’s Twenty
Year Electric Plan, pursuant to 30 V.S.A. § 202. The Contractor shall also cooperate to
the best of its ability and within its budget constraints in the identification and
prioritization of information needs, the exchange of information, and the timing of Work
products with the Board, the Contract Administrator, and DPS staff as necessary to
effectuate strategic planning, multi-year program planning and budgeting, market
assessment, and program evaluation.
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O. Applied Research, Development and Demonstration
Contractor may, at its own discretion and in coordination with the DPS, conduct such
applied research, development and demonstration efforts as it deems appropriate to
improve its performance and effectiveness in attaining the Board’s objectives for the
EEU, in the current and/or subsequent contract periods.
P. Vermont Distribution Utility Planning
Vermont electric distribution utilities may request the services of the EEU in certain cases
for implementation of their obligations for energy efficiency services, including particular
strategic retrofit programs (See Paragraph III.D.16 of the RFP). In the event of such a
request the Contractor would be required to enter a bid, and, if selected, act as a
contractor directly to the electric utility to deliver electric efficiency services provided
such efforts will not substantially detract from Contractor’s ability to deliver its core
services pursuant to this Agreement. In accordance with Paragraphs 38, 40, and 41 of the
MOU, the Contractor will receive compensation directly from the requesting utility for
the development of its proposal to perform these services, and separate compensation
from utilities for any services so provided under the terms of such contracts.
Any disputes between the Contractor and any distribution utility regarding distributed
utility planning as detailed in this paragraph shall be mediated by the Contract
Administrator. If the Contract Administrator cannot settle such a dispute, then the
dispute shall be submitted to the Board for a final and binding decision.
Q. Limitations on Performance Contracting and Loan Guarantees
If the Contractor or any of its subcontractors advises a customer to use performance
contracting and the Contractor or its subcontractor desires to bid for that contract, the
Contractor or its subcontractor shall notify the Contract Administrator in advance of
submitting a bid. The Contract Administrator may contact the customer and/or use other
mechanisms to ensure that the Contractor’s role as the EEU or its subcontractor’s
relationship with the EEU does not give either of them an unfair advantage in the bidding
process.
The Contractor may not itself guarantee, nor pledge any EEU funds to guarantee, any
loans obtained by customers to finance energy efficiency projects that are part of the
Work without the prior approval of the Board. The Contractor may work to identify
other organizations or agencies that are willing to guarantee such loans.
R. Participation in Board Proceedings Implementing any Changes to the EEU Program
Contractor shall provide reasonable support and input to the Board in Board proceedings
implementing any changes to the EEU program. This support and input may include, but
is not necessarily limited to, providing written comments on the effects of issues and
options under consideration on the EEU’s operations, providing data from the EEU’s IT
system, developing analytical tools based on Contractor’s experience delivering energy
efficiency services, and responding to filings made by other participants in the
proceedings.
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If the Board would like Contractor to provide a significant amount of support, the Board
will discuss with Contractor the effects of such a request on Contractor’s ability to
perform its other duties under this Agreement. The result of such discussions shall be
memorialized in writing.
S. Participation in Working Group Regarding EEC Exemption Mechanism
Contractor shall participate in the Working Group regarding the EEC exemption
mechanism that was established by the Board in the EEC Exemption Mechanism Order.
Once the Board has resolved the technical implementation issues that are identified in the
EEC Exemption Mechanism Order, Contractor shall perform the tasks related to the
implementation of that mechanism that are assigned to it by the Board.
T. Participation in Regional Capacity Market Activities
Contractor shall participate in regional capacity market activities consistent with the
FCM Order. These activities shall include submitting claims for energy efficiency
savings that result from Contractor’s performance of the Work and receiving payments
resulting from those claims, consistent with Paragraph 3 of Attachment B. These
activities may also include submitting bids to provide capacity resources in the FCM,
once the mechanism for accepting such bids has been adopted by ISO-NE.
In addition, Contractor shall become a member of NEPOOL and participate in the
negotiations of the final rules for the FCM. As part of participating in NEPOOL and ISONE, Contractor shall support the State of Vermont's efforts to secure resource parity for
demand resources in regional electricity markets. Contractor shall coordinate its
activities in NEPOOL with designated Board and DPS staff. Contractor shall ensure that
the positions it takes as a NEPOOL member are consistent with those advocated by the
Board.
U. Transition
If the EEU's role is terminated or transferred to another entity on any future date, the
Contractor shall use best efforts to cooperate in all reasonable ways with, and assist, any
such transition process so as to best effectuate the purposes of 30 V.S.A. § 209 and the
5980 Order. This obligation shall include, without limitation, the sharing and transfer of
data, and the transfer, via licensing agreement, of Customized Software (see Paragraphs 9
and 20 of the Main Body of this Agreement). This obligation shall not include serving as
the EEU after December 31, 2008.
Contractor shall also assist the new entity with any transition issues associated with the
EEU’s role in the regional forward capacity market.
As requested by the Board, the Contractor shall provide any information collected in its
ordinary course of business for the Board’s use in developing future request for proposals
for EEU services or for use in determining the amount of the EEC.
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V. Work to be Performed After December 31, 2008
The only Work that the Contractor will perform after December 31, 2008 will be:
 The production of the monthly report for December 2008 (as described in
Paragraph I.E.6.a, above);
 The production of the 2008 savings claim (as described in Paragraph V.A.1 of
Attachment C);
 The 2008 savings verification (as described in Paragraph V.A.1 of Attachment C);
 The production of the 2008 Annual Report (as described in Paragraph I.E.6.c,
above); and
 Transition assistance if the Contractor is not chosen to continue to operate the
EEU after December 31, 2008 (as described in Paragraph II.U, above).
W. Twenty-Year Efficiency Estimate per Docket 7081
Consistent with the Board’s June 20, 2007, Order in Docket 7081 approving a
Memorandum of Understanding, the Contractor shall perform a 20-year estimate of
demand-side management savings to be provided by services and initiatives to be
delivered under the EEU structure, excluding any services and initiatives that may be
provided pursuant to Paragraph P, above (“Forecast 20”). The research, analysis,
projections, analysis tools, and a report documenting assumptions will constitute the first
Forecast 20 and the foundation for each one thereafter.
1. Objectives
The Contractor shall develop the Forecast 20 and deliverables in a manner that will
provide:
 Usability by the Vermont System Planning Committee and others for transmission
and distribution planning;
 Engineering- (not statistically-) based forecast;
 Demand-side management expenditures and benefits for each of the agreed-upon
load zones and for each customer class within each of the load zones;
 Clear and detailed descriptions of the assumptions and factors used in establishing
the baselines for each demand-side management program, decay rates of demandside management, free rider effects and spillover effects;
 Judgment-based confidence levels of the forecast and their interrelationship with key
uncertainties. This may include:
o Baseline efficiency trends;
o Large individual customer accounts within the zone;
o Weather-related factors;
o General economic conditions;
o Changes in the housing market; and
o Extent to which the “supply curve” for energy efficiency in Vermont is
expected to be upward sloping;
 Transparency and documentation of all assumptions and algorithms for external
review;
 Replicability of results by the Contractor and the ability to replicate results for the
benefit of future forecasts;
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Iteration – the ability to easily change assumptions to develop new forecasts;
Best practice that incorporates the lessons learned in Vermont and nationally
regarding energy efficiency;
Public review – the ability of the Forecast 20 to be reviewed by public parties; and
Quality assurance – reliable product without omissions or errors.
2. Deliverables
The Contractor will provide the following deliverables for the Forecast 20:
 Report that summarizes and details the 20-year estimates of demand-side
management savings for Vermont;
 Description of project research methodology and of all deliverables for
interested parties before research begins;
 Complete set of electronic workpapers (values only) that document all inputs
to the forecast; if the forecast were relevant to the issues in a contested case,
the forecast model would only be available with appropriate confidentiality
protections;
 Presentation in workshop format for all interested parties of the first draft for
the Forecast 20; and
 Final version of the Forecast 20 report and supporting workpapers.
3. Research Assumptions to be Provided by Others
The Board will provide the following guidance to Contractor prior to the start of
research for the project:
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Budget assumptions for the analysis period; and
Overarching Board policy objectives to be achieved by demand-side management
during the forecast period (i.e. class or geographic equity, geographic targeting
etc).
The Board understands that Contractor must receive the following information from
Vermont electric distribution utilities, the Vermont Electric Power Company and/or
the Vermont System Planning Committee prior to the start of research for the project:
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Load forecasts for all agreed-upon load zones;
Written representations and documentation of the extent to which demand-side
management has already been incorporated into existing load forecasts;
Coding for each utility premise to indicate the load zone in which the premise
resides; and
Prioritized targets (MW) for demand savings by load zone for geographic
targeting during the forecast period.
4. Duration of Work
The Contractor will commence work on the Forecast 20 immediately. The
Contractor will provide final deliverables for the Forecast 20 within eight months of
the project start, unless the workplan is modified by mutual consent of the Contractor
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and the Board.
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