2014 Hard-to-Reach
Standard Offer Program
October 23, 2013
1
Where in Texas?
AEP is offering the Hard-toReach Standard Offer
Program (HTR SOP)
through its Texas
distribution companies
which include AEP Texas
Central Company (TCC),
AEP Texas North
Company (TNC) and
Southwestern Electric
Power Company
(SWEPCO)
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HTR Successes
4500
4000
3500
3000
2010
2011
2012
2013
2500
2000
1500
1000
500
0
TCC
TNC
SWEPCO
2013 YTD
• TCC – 1,830 Customers Served; 4,071 total installations
• TNC - 274 Customers Served; 629 total installations
• SWEPCO – 1,314 Customers Served; 2,299 total installations
Lower Budgets impact # of Customers Served
2013 numbers are from incentive reports processed/paid through the 3rd quarter.
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HTR Successes (continued)
TCC:
 12 Counties traditionally Underserved experienced measure
installations in 2013
 Program goals met after first month of program opening
TNC:
 YTD savings achieved:
233 kW
704,398 kWh
 2013 Program Goal:
240 kW
653,561 kWh
SWEPCO:
 3 Counties traditionally Underserved experienced measure
installations in 2013
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2014 HTR SOP Summary
 Incentives Paid for kW and kWh savings
 Internet Application and Reporting
 HCA, Income Eligibility Form and Customer
Education Material
 Small Projects
 No minimum project size
 Reserve funds for 30 days
 Multi-Family
 Reserve up to $ 25,000 at a time
 Single-Family
 Reserve up to $5,000 at a time
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2014 KEY CHANGES
 Project Sponsors must carry all statutorily required insurance
 The 2014 HTR SOP shall utilize the deemed savings values contained in
the State of Texas Technical Reference Manual (TRM), unless the
PUCT indicates otherwise
 Residential dwellings or additions completed after January 1, 2012 do
not qualify for the program
 Home Energy Rater (HERs) or Building Performance Institute (BPI)
individual required to be on staff for any Project Sponsor performing
duct efficiency and/or air infiltration measures.
HERs or BPI
individual required to be listed on Project Sponsor application
 Underserved Counties for TNC and SWEPCO have been revised for 2014
 A new field to report “# of bedrooms” has been added as a required
field on the customer input form
 New document upload feature added to the database
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CONTINUING IN 2014
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Blower-door testing shall occur immediately prior to the installation of any
air infiltration measures at every site. Post-installation testing shall occur
immediately following the installation of air infiltration measures at every
site
Pre- and post-retrofit duct pressurization testing shall be performed at
every site by Project Sponsors implementing the duct efficiency measure to
verify and record leakage sealed
Work schedules required for Project Sponsors completing duct efficiency
and infiltration measures in Single Family projects
Project Sponsors must provide a work schedule for Multi-Family projects
seven (7) days prior to measure installation
Incentive Reports may no longer be submitted the 1st 15 days of each
month
All installations must be submitted on an Incentive Report within 45 days of
the installation
All host customers must be supplied approved customer education material
Changes to the Host Customer Agreement and Acknowledgement Form to
include all Pre and Post CFM readings for Duct Efficiency and Air Infiltration
measures and “R” Value of Existing Ceiling Insulation
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CONTINUING IN 2014 (continued)
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CFL measure not eligible in SWEPCO HTR SOP
All ceiling insulation installations must affirm that an insulation
installation certificate was permanently affixed near the attic opening
An updated duct tool spreadsheet has been added to the database
Failure to complete prescriptive requirements will result in a total
Measure failure regardless of the CFM reading
Homes cooled with window air conditioning units exclusively must be
reported as “gas” heat. Electric space heaters are considered “plug-in”
load and do not make the home eligible for electric heating type in this
program (Air Infiltration and Ceiling Insulation measures)
The air infiltration Deemed Savings include an upper limit of 4 CFM50 per
square foot of house floor area pre-retrofit infiltration rate and this limit
will be enforced
All use of marketing, including social media and telemarketing, must be
approved by AEP
Different incentive rate for historically underserved measures
Different incentive rate for projects targeting historically underserved
counties
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HTR SOP INCENTIVE BUDGETS
Budget
Limit per PS

TCC
$ 953,417
$ 75,000

TNC
$ 162,719
$ 50,000

SWEPCO
$ 562,360
$100,000
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How Do I Participate?
 Review Program Manual
 Review SOP Agreement
 Complete and review on-line application
 Submit application via internet
 If applicable, upload testing procedures within 24 hours
of submitting application
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What Happens Next?
 Applications will be reviewed based on receipt of
all required information
 Once eligibility has been verified and application
pre-approved, enter into a agreement with AEP to
install eligible Measures
 Refer to Program Manual for additional information
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Project Sponsor Requirements
A Project Sponsor must have:
 Adequate insurance (mailed or e-mailed directly to
appropriate Program Administrator by insurance
agency)
 All appropriate licenses
 References
 Evidence of technical and managerial capabilities and
experience
 AEP approved customer education material to be
distributed to all host customers
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Incentive Payments & Example
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Incentive Payment Structure
 Four levels, to encourage Project Sponsors:
 Installing Standard Single-Family dwelling Measures
 Installing Standard Multi-Family dwelling Measures
 Installing historically Underserved Measures
 Installing
Measures
in
certain
historically
Underserved Counties
kW
kWh
Standard Single-Family
$360
$0.11
Standard Multi-Family
$325
$0.10
Underserved Measures
$400
$0.13
Underserved Counties
$440
$0.15
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Incentive Payment Limits
Load Factor Caps:
For all combined kW and kWh incentive
payments, incentive is limited to:
$920 per kW
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Incentive Payment Example
Install Measures in Single-Family dwellings resulting in savings of:
48 kW
120,000 kWh
Standard Single-Family Incentive Rate:
$360/kW
Total Incentive Payment:
$0.11/kWh
$30,480
(before any limits)
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Underserved Counties - TCC
ATASCOSA
EDWARDS
KINNEY
UVALDE
BEE
FRIO
LA SALLE
VAL VERDE
BROOKS
GOLIAD
LIVE OAK
WHARTON
CALDWELL
GONZALES
MAVERICK
WILSON
COLORADO
GUADALUPE
MCMULLEN
ZAPATA
DE WITT
JACKSON
MEDINA
ZAVALA
DIMMIT
JIM WELLS
REAL
DUVAL
KENEDY
REFUGIO
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Underserved Counties - TNC
BRISCOE
COTTLE
DICKENS
FOARD
HALL
HARDEMAN
KENT
KING
KNOX
MOTLEY
STONEWALL
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Underserved Counties - SWEPCO
CHILDRESS
FRANKLIN
HOPKINS
RED RIVER
SMITH
UPSHER
VAN ZANDT
WHEELER
WOOD
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Application Process
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Create Application
 Register on Program website
 Complete Project Sponsor Details
 Sponsor Profile
 Subcontractor Information
 Project Description
 Qualification Documents
 Insurance Information
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Application Schedule
 1st Day to register
 October 24, 2013
 Submit applications
 December 3, 2013
 Implementation begins
 February 4, 2014
 Must have approved application status
 Must have 2014 HCA’s
 Must have a budget reservation
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Multi-Family Projects
 Site
 Measures
 Work Schedule
 Duct Description
 Individually-metered
 $25,000 Budget Reservation
 Program Administrator can increase reservations for
completion of project per funding availability
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Identify Project Opportunities
 Verify customer eligibility
 Original customer signature and date on
Income Eligibility Form
 Original customer signature and date on Host
Customer Agreement & Acknowledgement
(HCA) form
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Install Measures
 Reserve funds via internet
 Install Measures
 Original customer signature and date HCA
form to verify completion
 If applicable, supply pre and post CFM readings
and “R” Value of Existing Ceiling Insulation on
HCA.
 Provide customer with Approved Educational
Materials
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Reporting
 Monthly reporting via internet
Inaccurate reporting results in failures
 Un-submitted Measure installations over 45
days old will lock out reservations feature
 AEP will process inspection-adjusted Incentive
Reports within 45 days under normal
circumstances
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Installation Inspections
 Random sample of Measure installations
 Verify that number of installed Measures equals
number of reported Measures
 Verify Measure is installed and capable of
performing its intended function (10 yr measure
life expectancy)
 Verify that Measures qualify and that
installation standards were followed
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2013 Program Issues
 Inaccurate pre assessments, i.e. incorrect levels of existing ceiling
insulation reported, incorrect heating type reported
 Failure to perform pre-retrofit installation blower-door and duct
blaster tests
 Failure to perform post-installation blower-door and duct blaster
tests
 HCA’s and Installations done prior to application approval
 Submitting incomplete forms (HCA, income eligibility forms)
 Failure to complete daily work schedule
 Multi-Family/Single-Family reservations (only one open at a time)
 Use of unapproved marketing material. All marketing material
must be approved, including social media
 Failure to report measure installation within 45 days of the
installation date
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2013 Program Issues (continued)
 Door weather-stripping; customer(s) must be able to close and shut
door(s) with minimum effort after installation
 CFLs installed in non-common areas (e.g, closets, pantries)
 Customer educational material not being supplied
 Must inform customer of inspection possibility
 Provide best daytime contact phone #’s
 Measures installed should provide an expected life of at least 10
yrs with the exception of CFLs. The following are deemed
unacceptable
 Taping attic access doors and filter access panels
 Plumbing penetrations not covered effectively or with non-rigid
material
 Supply registers not removed to be sealed nor serviced from
attic space
 Caulking reported but not found in rooms specified (door
frames, baseboards, windows)
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Program Website
Refer to www.aepHTRsop.com for:
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SOP schedule
Latest program announcements
Available funding
FAQ’s
Program Manual
Program contact information
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AEP Contact Information
 TCC – Vee Strauss
Phone: 361.574.2252
E-mail: svstrauss@aep.com
 TNC – Steve Mutiso
Phone: 325.674.7287
E-mail: smmutiso@aep.com
 SWEPCO – Jeff Thigpen
Phone: 318.673.3372
E-mail: jdthigpen@aep.com
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Comments and Questions……………….
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