Entergy Arkansas, Inc. 2015 Home Energy Solutions Program Manual

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Entergy Arkansas, Inc. 2015 Home Energy Solutions Program Manual
Entergy Arkansas, Inc.
                      2015 Home Energy Solutions
                                 Program Manual

PREPARED BY:
CLEAResult
1 Allied Dr.
Suite 1600
Little Rock, AR 72202
Contact: Jeremy Townsend
Phone: 501-265-0249
Email: jtownsend@clearesult.com

Revision Date: 1/12/2015
Entergy Arkansas, Inc. 2015 Home Energy Solutions Program Manual
TABLE OF CONTENTS
PROGRAM OVERVIEW ........................................................................................................... 2
   Program Description.......................................................................................................................2
   Program Objectives ........................................................................................................................2
   Program Contact ............................................................................................................................2
   Program Roles & Responsibilities ....................................................................................................2
Program Eligibility ................................................................................................................. 4
   Customer Eligibility ........................................................................................................................4
Program Incentives................................................................................................................ 6
   Tier 1 and Tier 2 Evaluations ...........................................................................................................6
Contractor Installed Measures ............................................................................................. 10
   Non-Cash Benefits ........................................................................................................................ 13
   Incentive Basis ............................................................................................................................. 15
   Project Coupon Requirements ...................................................................................................... 15
   Project Application Process .......................................................................................................... 16
Participation Process ........................................................................................................... 17
Disclaimers .......................................................................................................................... 19
CUSTOMER Frequently Asked Questions (FAQs)................................................................... 20

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Entergy Arkansas, Inc. 2015 Home Energy Solutions Program Manual
PROGRAM OVERVIEW

Program Description
The Entergy Arkansas, Inc. portfolio of Home Energy Efficiency
Programs includes incentives and energy-saving opportunities                Home Energy Solutions Key Concepts
for Entergy Arkansas’ residential customers. The Home Energy
Solutions (HES) Program (Program) offers many opportunities to
participate for owners and renters of homes in Entergy Arkansas’           Market Transformation, Education,
service territory.                                                        Incentives, Energy Savings, Comfort

The Home Energy Solutions Program will help homeowners
achieve electricity savings by consulting with participating Home
Energy Consultants and contractors. Participating Contractors will help residential customers analyze their energy use,
identify energy efficiency improvement projects and install low-cost, energy-saving measures at home. Residential
customers will receive incentives for Home Energy Assessments and eligible energy efficiency measures that are installed
in their home.
Program Objectives
     Achieve cost-effective electricity savings by working with participating Home Energy Consultants and contractors.
     Help Entergy Arkansas homeowners understand how efficiently/inefficiently they are using energy, identify
      opportunities for energy savings specific to their home and prioritize a wide range of energy efficiency measures.
     Educate residential customers on the following elements so they can begin saving energy and money immediately:
            o Home energy efficiency opportunities.
            o Energy and cost-savings measures available for the home.
            o Access to qualified vendors and installers.
            o Incentives to pay for energy efficiency opportunities, purchase and installation.
            o Educate homeowners about professional energy efficiency contractors.
     Necessary training and certification of contractors capable of providing home energy efficiency services in the
      market.
     Development of educational and supporting services for customers and contractors to promote the implementation
      of energy efficiency measures.

Program Contact
         Energy Efficiency Solutions Center (EESC)       1-877-212-2420

Program Roles & Responsibilities
Program Sponsor (Entergy Arkansas, Inc.):
     Provide customer database to verify the eligibility of Program participants.
     Provide the customer incentives for the Program.

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 Oversee CLEAResult.
CLEAResult:
     Plan and design the Program.
     Market the Program to customers and contractors.
     Approve customer eligibility and enrollment.
     Recruit, train and mentor participating contractors.
     Maintain an Energy Efficiency Solutions Center (EESC).
     Process qualifying Program coupons.
     Maintain a database of all necessary Program information.
     Conduct Program quality control and quality assurance activities.
Program Participant (Customer):
     Provide the EESC with the necessary home information (size, age, etc.) and 12 months of utility bill history (if
      needed) to properly assess savings potential.
     Use incentives, rebates and coupons within six months of issue date (if applicable).
     Choose a Participating Contractor from the approved contractor list to install eligible energy efficiency measures in
      the home.
     Allow CLEAResult to access the home to verify installed measures (where applicable).
Participating Contractor (Contractor):
     Respond to customer requests for energy efficiency information and services in a professional and timely manner.
     Perform all energy efficiency work to the required standards of the Program.
Participating Home Energy Consultant:
     Conduct home energy surveys and assessments.
     Perform all energy efficiency work to the required standards of the Program, including direct installation of energy
      efficiency measures.
     Educate customers on energy efficiency upgrades.
     Refer customers to appropriate Entergy Arkansas energy efficiency programs and participating contractors.
     Install eligible energy efficiency measures to the required standards of the Program and submit appropriate
      documentation to CLEAResult with each coupon.

Program Changes
The Home Energy Solutions Program was developed from the success of the 2007 QuickStart Program. The Program has
evolved to include the following changes:
        The $100/$200 incentive bonus for a tier 2 Assessment after two or more measures are installed has been
         removed from the program. The initial $150/$300 based on the square footage of the home will remain.

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PROGRAM ELIGIBILITY
Customer Eligibility
To participate in the Program, the customer:
     Must be a residential customer of Entergy Arkansas with a valid account number.
     Must live in a single-family home or a multifamily unit of four units or fewer (renters and owners eligible).
     Must live in a home that is a minimum of one year old.
        Program requires that customers have a central heat and air conditioning (AC) unit installed at the time of the
         work to be eligible for any measures.
Home Energy Consultant (HEC) Eligibility
To participate in the Program as an HEC, a contractor must sign the HEC Agreement, attend all required classroom, on-site
and in-field training, and meet all qualifications and standards for eligibility listed below. HECs may continue as part of
the Program as long as they maintain compliance with all Program requirements, achieve satisfactory customer
satisfaction and meet quality assurance and verification standards.
To remain an eligible participant in the Program, an HEC must complete a minimum of three (3) coupons per quarter. If, at
the end of the quarter, the minimum requirement has not been met, then the company will be removed from the list of
eligible contractors on Entergy Arkansas’ website. If, at the end of two (2) consecutive quarters, the minimum requirement
has not been met, then the company will be removed from the Program.
Follow-up training will be provided as needed to ensure HEC proficiency. Contractors will not be listed as an HEC on the
Program’s website until they demonstrate proficiency in the skills required to be an HEC in the Program. Details on the
training, tools and performance are listed below:
Certification Requirement
     Certification as either a BPI-BA or a RESNET Home Energy Rater is required.
        If an HEC, for any reason, no longer employs an individual with the certification, the contractor has 30 days to
         either:
         o Employ an individual with the proper certifications
         o Have a current employee complete the required course(s) to gain certification
                      If no course is offered within the 30-day grace period, this grace period will be extended to the
                       date of the next available course
Tools
     HECs are required to own, use and maintain the following tools (not all tools are required for every evaluation):
            o Blower door.
            o Duct blaster.
            o Combustion safety test tools.
            o Ladder and assorted hand tools.
            o Energy modeling software, provided by the Program (see HEC Agreement for further details)

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    HECs are required to adhere to the manufacturer’s calibration requirements included with each tool.
Quality Performance
     An HEC, upon request from CLEAResult and at no additional cost to the customer, will be required to make
      reasonable repairs or corrections to work that the HEC has performed that does not meet Program standards. The
      repairs or corrections must be completed within the time frame specified by CLEAResult. HECs that have performed
      work that is not satisfactory must also agree to take steps to ensure future work will comply with Program
      standards.
Participating Contractor Eligibility
Contractors of various trades that meet all Program qualifications and standards (listed below) are eligible to participate in
the Program. Contractors may continue as a part of the Program as long as they maintain compliance with all Program
requirements, achieve satisfactory customer satisfaction and pass quality control inspections and validations.
To remain an eligible participant in the Program, a Participating Contractor must complete a minimum of three (3) coupons
per quarter. If, at the end of the quarter, the minimum requirement has not been met, then the company will be removed
from the list of eligible contractors on Entergy Arkansas’ website. If, at the end of two (2) consecutive quarters, the
minimum requirement has not been met, then the company will be removed from the Program.
To participate, contractors must sign Participating Contractor Agreements and attend all required classroom, on-site and
in-field training to comply with guidelines set forth in this manual. Follow-up training will be provided as needed to
ensure participating contractor proficiency. Contractors will not be listed on the Program’s website as a Participating
Contractor until they demonstrate proficiency in the skills required to be a Participating Contractor in the Program. Details
on Participating Contractor training, tools and performance are listed below:
Certification Requirement
     Understanding of basic building science principles.
     By January 1, 2013, all HVAC, duct sealing, and air sealing contractors will be required to have at least one of these
      certifications: BPI-BA (Building Analyst) or be a RESNET Home Energy Rater. Contractors that install ceiling
      insulation ONLY can substitute the Attic Prep & Air Sealing certification offered by Pulaski Technical College or the
      BPI Building Science Principles Certificate of Knowledge.
        If a Participating Contractor, for any reason, no longer employs an individual with the certification, the contractor
         has 30 days to either:
         o Hire an individual with the proper certifications
         o Have a current employee complete the required course(s) to gain certification
                       If no course is offered within the 30-day grace period, this grace period will be extended to the
                        date of the next available course
Tools
     Participating contractors must own, use and maintain all tools necessary for all energy efficiency measures to be
      installed to manufacturer specifications.
        HECs are required to adhere to the manufacturer’s calibration requirements included with each tool.
Quality Performance
     A participating contractor, upon request from CLEAResult and at no additional cost to the customer, will be required
      to make reasonable repairs or corrections to work that the Contractor has performed that does not meet Program
      standards. The repairs or corrections must to be completed within the time frame specified by CLEAResult.

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Participating Contractors that have performed work that is not satisfactory must also agree to take steps to ensure
       that future work will comply with Program standards.
     Ensure that future work will comply with Program standards.

PROGRAM INCENTIVES
Tier 1 and Tier 2 Evaluations
Energy Survey (Tier 1)
HEC completes a walk-through inspection, identifies eligible direct install opportunities, secures customer’s permission to
direct install equipment at time of inspection and produces a written report based on visual inspection.
This option gives the customer as much information as possible without the in-depth diagnostic testing provided by the
Tier 2 Assessment. Customers do not receive coupons for additional measures after completion of the Energy Survey, but
they can contact Participating Contractors to receive them. The HEC can provide customers an option to upgrade to a Tier 2
Assessment, particularly in cases where customers are strong candidates to implement additional energy savings measures
under the Program.
All customers that meet Program eligibility criteria are qualified to receive the Tier 1 Energy Survey.
Energy Assessment (Tier 2)
In addition to all of the components of the Tier 1 Survey, HEC also will perform diagnostic testing and provide calculated
energy savings including investment payback and a list of prioritized recommendations and will generate any eligible
measure coupons.
Measure coupons are a cash incentive to help cover the incremental cost of an energy efficiency upgrade.
Customers have six months from the date the coupon is issued to have the measure installed and redeem their coupon. The
incentive budget for each year under the Program is limited, and rebates and measure coupons will be paid to all eligible
and qualifying coupons until the Program ends or the then current incentive budget is exhausted. Therefore, the
availability to customers of rebates and/or measure coupons cannot be guaranteed.

Tier 2 Assessment Qualification
Take the highest summer electric bill in dollars and divide it by the actual conditioned square footage of the home; this will
determine the cost per square foot. Then, find where the customer is on the Home Efficiency Meter. If the energy costs
are $.10 or more per square foot, the home qualifies for a Tier 2 Assessment.

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7
Home Energy Evaluations Comparison Matrix

                                                                                                              Tier 2
                                             Measure                               Tier 1 Survey           Assessment
                        Direct Install Devices1                                                                  

                        Walk-Through Inspection2                                                                 

                        Blower-Door Test3                                                                         

                        Duct Blaster Test4                                                                        

                        Combustion Safety Education5                                                              

                        Walk-Through Report6                                                                     

                        Tier 2 Report7                                                                            

                        Program Coupons Issued8                                                                   
Notes:
   1. Direct Install Devices: See “Non-Cash Benefits” (next section).
              a. 60 Watt equivalent compact fluorescent light bulbs (Up to 6)
              b. 1.6 gpm low flow showerheads (Up to 1)
              c. 1.5 gpm faucet aerators
              d. Pipe insulation – minimum insulation thickness of ¾ inch; six (6) feet
              e. Water heater wrap
              f. Smart power strips (1)
   2. Walk-Through Inspection: An HEC will conduct a thorough inspection of the home, equipment and appliances, and will interview the
      homeowner to determine lifestyle and other practices as they pertain to home energy use. Using industry standard energy auditing inspection
      practices, the HEC will inspect and record the condition of:
              a. Ceiling, walls, floors, doors, windows, openings, and ventilation
                             i. Ceiling inspection involves gaining access to the attic and determining the type of insulation present, analyzing
                                 issues that will degrade the effective R-value of the insulation, and estimating the existing R-value (see BPI R-value
                                 chart on back of ceiling insulation coupon).
              b. HVAC equipment and systems in order to estimate the efficiency of existing HVAC equipment.
              c. Kitchen and laundry appliances
              d. Lighting
   3. Blower-Door Test: Determine the leakage rate of the home at CFM50 and, where possible, identify the source(s) of the leakage.
   4. Duct Blaster Test: Determine he leakage rate of the duct system at CFM25 and, using a pressure pan, identify the source(s) of the leakage.
   5. Combustion Safety Education: The HEC will discuss combustion safety issues with the homeowner when relevant.
   6. Tier 1 Report: Visual inspections and analysis in addition to providing recommendations and Participating Contractor list. Based on the
      inspections, the HEC may recommend that the customer upgrade to Tier 2 to be eligible for Program coupons and bonuses for implementing
      multiple measures.
   7. Tier 2 Report: Tier 1 Report plus savings potential and coupons issued based on the testing results.
   8. Coupon Issuance: When a customer chooses to have a Tier2 Assessment performed through the Program, the HEC will identify efficiency
      improvement opportunities within the qualifying measures (see the “Program Incentives” section for detailed information on the measures).
      The customer will then be provided a coupon (or coupons) for dollars-off savings on the implementation costs of the identified improvements
      and a list of participating contractors who can offer and accept the incentive coupons. Tier 1 Surveys are not eligible for the issuance of
      coupons beyond the Survey incentive amount.

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Home Energy Survey and Assessment Incentives
This list describes the incentives and rebates that are available to eligible customers in the Program:

                                                              Incentive
Measure           Incentive Details                           Amount                 Measure Description
                                                                                     Walk-through Survey, direct install devices, visual
                                                                                     inspection report (measure coupons may not be
                  Call EESC or contact HEC directly (see      $75 deducted from      generated at this level). This option gives the customer
Tier 1-Survey     website contractor list)                    survey invoice         as much information as possible without the in-depth
                                                                                     diagnostic testing provided by the Tier 2 Assessment.

                  To qualify for the bonus, the customer      $75 sent to            If as a result of the Tier 1 Survey, the customer installs
                  must:                                       customer after         two or more approved measures within six months of the
Tier 1-Survey          Complete a Survey                     verification of        survey date, they will receive an additional rebate of up
Bonus                  Install two or more measures (duct    installation of 2 or   to $75. It is expected that this bonus will cover most, if
                        or air sealing, ceiling insulation,   more measures.         not all, of the survey cost.
                        A/C or heat pump replacement)
                                                                                     Includes: walk-through inspection, direct install devices,
                                                              ≤750 SQ. ft. $150
                                                                                     diagnostic testing, detailed report featuring visual
                                                              >750 SQ. ft. $300      inspection results, diagnostic testing analysis;
Tier 2-           Call EESC or contact HEC directly (see                             calculation of energy savings including investment
Assessment        website contractor list)                    (deducted from
                                                              assessment             payback, prioritization recommendations, and
                                                              invoice).              generation of eligible measure coupons.

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CONTRACTOR INSTALLED MEASURES
This list describes the measure coupons and rebates that are available to eligible customers in the Program (see Measure
Standards for full description and requirements):

Measure                Measure Coupon Details             Measure Coupon Amount      Measure Description
                                                                                     You need insulation in your home to provide resistance
Ceiling Insulation     In order to determine              Up to $.23/SQ Ft
                                                                                     to heat flow. The more heat flow resistance the
                       eligibility and receive a          deducted from
                                                                                     insulation provides, the lower the heating and cooling
                       coupon (choose one):               Participating
                                                                                     costs.
                                                          Contractor’s invoice.
                            Complete a Tier 2
                             Assessment                                              Heat flows naturally from a warmer to a cooler space. In
                            Contact a Participating                                 the winter, this heat flow moves directly from all heated
                             Contractor directly (see                                living spaces to adjacent unheated attics, garages,
                             website contractor list).                               basements, and even to the outdoors. Heat flow can
                                                                                     also move indirectly through interior ceilings, walls and
                       Incentive value is based on:                                  floors—wherever there is a difference in temperature.
                            Existing R-value                                        During the cooling season, heat flows from the
                            SQ Ft of ceiling insulated                              outdoors to the interior of a house.

                                                                                     To maintain comfort, the heat lost in the winter must be
                                                                                     replaced by the heating system and the heat gained in
                                                                                     the summer must be removed by the cooling system.
                                                                                     Properly insulating the home will decrease this heat
                                                                                     flow by providing an effective resistance to the flow of
                                                                                     heat.

                                                                                     Insulation's resistance to heat flow is measured or rated
                                                                                     in terms of its thermal resistance or R-value.
                                                                                     In Arkansas, the Department of Energy suggests a
                                                                                     ceiling insulation level of R-38.
                                                                                     Air leakage, or infiltration, occurs when outside air
Air Sealing            In order to determine              $.20/CFM50 reduction
                                                                                     enters a house uncontrollably through cracks and
                       eligibility and receive coupon,    deducted from
                                                                                     openings. Proper sealing of such cracks and openings
                       customer must choose one:          Participating
                                                                                     in the home can significantly reduce heating and
                                                          Contractor’s invoice.
                            Complete a Tier 2                                       cooling costs, improve building durability, and create a
                             assessment                                              healthier indoor environment.
                            Contact a participating
                             contractor directly (see                                It is unwise to rely on air leakage for ventilation
                             website contractor list)                                because it can't be controlled. During cold or windy
                                                                                     weather, too much air may enter the house. When it's
                       Incentive value is based on:                                  warmer and less windy, not enough air may enter. Air
                            Difference between Pre-                                 infiltration also can contribute to problems with
                             and Post-blower door                                    moisture control. Moldy and dusty air can enter a leaky
                             @CFM50 whole-house                                      house through such areas as attics or foundations. This
                             leakage rate.                                           air in the house can cause health problems.

                                                                                     The recommended strategy in both new and old homes
                                                                                     is to reduce air leakage as much as possible and to
                                                                                     provide controlled ventilation as needed.

Ceiling Insulation     To qualify for the bonus           Up to $.22/SQ Ft
                                                                                     Insulating the ceiling without air sealing first can
Upgrade Bundling       (complete both):                   in addition to base
                                                                                     degrade the R-value of the insulation. This bonus is
Bonus                                                     incentive rate, deducted
                            Install the ceiling                                     intended to encourage the two measures be installed
                                                          from Participating
                             insulation measure                                      together to capture more savings and increase the
                                                          Contractor’s invoice.
                            Install the air sealing                                 customer benefit.
                             measure

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The Department of Energy reports that an average of 30
Duct Sealing            In order to determine             Determined after final
                                                                                   percent of a forced air system’s energy can be lost
                        eligibility and receive coupon,   leakage rate is known;
                                                                                   through leaky ducts. Ducts often run through
                        customer must choose one:         deducted from
                                                                                   unconditioned space. Air that has been heated or
                                                          Participating
                            Complete a Tier 2                                     cooled is lost through holes and leaks in the ductwork,
                                                          Contractor’s invoice.
                             Assessment                                            lowering efficiency and increasing costs.
                            Contact a participating
                             contractor directly (see                              There are also health benefits of duct sealing. Fumes
                             website contractor list)                              from household and garden chemicals, insulation
                                                                                   particles, and dust can enter the duct system,
                        Incentive value is based on:                               aggravating asthma and allergy problems. Sealing
                            Difference between Pre-                               ducts can help improve indoor air quality by reducing
                             and Post-duct                                         the risk of pollutants entering ducts and circulating
                             pressurization test                                   through the home.
                             @CFM25 duct leakage
                             rate
                            Calculated energy
                             savings
                                                                                   Today's best air conditioners use 30–50 percent less
A/C Replacement         In order to determine             Up to $593/unit;
                                                                                   energy to produce the same amount of cooling as air
                        eligibility and receive coupon,   deducted from
                                                                                   conditioners made in the mid-1970s. Even if an air
                        customer must choose one:         Participating
                                                                                   conditioner is only 10 years old, a customer may save
                                                          Contractor’s invoice.
                            Complete a Tier 2                                     20–40 percent on cooling energy costs by replacing it
                             Assessment                                            with a newer, more efficient model.
                            Contact a participating
                             Contractor directly (see                              Proper sizing and installation are key elements in
                             website contractor list)                              determining air conditioner efficiency. Too large a unit
                                                                                   will not adequately remove humidity. Too small a unit
                        Incentive value is based on:                               will not be able to attain a comfortable temperature on
                            Tonnage of replacement                                the hottest days. Improper unit location, lack of
                             appliance                                             insulation, and improper duct installation can greatly
                            SEER of replacement                                   diminish efficiency.
                             appliance
                                                                                   Sometimes a contractor may suggest only replacing the
                                                                                   outdoor condenser with a modern, high-efficiency unit.
                                                                                   It is extremely important that the new condenser is
                                                                                   properly matched to the indoor evaporator coil.
                                                                                   However, considering recent changes in refrigerants
                                                                                   and air conditioning designs, it might be wiser in some
                                                                                   circumstances to replace the entire system.

                                                                                   Central air conditioners are rated according to their
                                                                                   Seasonal Energy Efficiency Ratio (SEER). SEER
                                                                                   indicates the relative amount of energy needed to
                                                                                   provide a specific cooling output. Many older systems
                                                                                   have SEER ratings of 6 or less. The minimum SEER
                                                                                   allowed today for an ENERGY STAR unit is 14.5, but
                                                                                   customers should consider using air conditioning
                                                                                   equipment with higher SEER ratings for greater savings.

A/C Bundle Bonus        To qualify, customer must         2x A/C replacement
                                                                                   See A/C Replacement and Duct Sealing Measures
                        complete both:                    coupon value; deducted
                                                                                   above.
                                                          from the Participating
                            Install the A/C
                                                          Contractor’s invoice.
                             replacement measure
                            Install the duct sealing
                             measure
                                                                                   Because they move heat rather than generate heat, heat
Heat Pump Replacement   In order to determine             Up to $809/unit;
                                                                                   pumps can provide up to 4 times the amount of energy
                        eligibility and receive coupon,   deducted from
                                                                                   they consume. The most common type of heat pump is

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customer must choose one:        Participating             the air-source heat pump, which transfers heat between
                                                           Contractor’s invoice.     the house and outside air. For customers that heat with
                              Complete an assessment
                                                                                     electricity, a heat pump can trim the amount of
                              Contact a participating
                                                                                     electricity used for heating by as much as 30–40
                               contractor directly (see
                                                                                     percent. High-efficiency heat pumps also dehumidify
                               website contractor list)
                                                                                     better than standard heat pumps, resulting in less
                          Incentive value is based on:                               energy usage and more cooling comfort in summer
                                                                                     months. Every residential heat pump sold in this
                              Tonnage of replacement                                country has an Energy Guide Label, which features the
                               appliance                                             heat pump's heating and cooling efficiency
                              SEER of replacement                                   performance rating, comparing it to other available
                               appliance                                             makes and models.

                                                                                     Heating efficiency for air-source electric heat pumps is
                                                                                     indicated by the Heating Season Performance Factor
                                                                                     (HSPF). ENERGY STAR® air-source electric heat pumps
                                                                                     have an HSPF of 8.2 or greater.

                                                                                     Cooling efficiency is indicated by the seasonal energy
                                                                                     efficiency ratio (SEER). Replacing a 1970s vintage
                                                                                     central heat pump (SEER = 6) with a new unit (SEER=12)
                                                                                     will cut air-conditioning costs in half. ENERGY STAR air-
                                                                                     source electric heat pumps have a SEER of 14.5 or
                                                                                     greater.

                                                                                     In warmer climates, SEER is more important than HSPF,
                                                                                     in colder climates, focus on getting the highest HSPF
                                                                                     feasible.

Heat Pump Bundle Bonus    To qualify, customer must
                                                                                     See heat pump replacement and duct ceiling measures
                          complete both:                   2x HP replacement
                                                                                     above.
                                                           coupon value; deducted
                              Install the heat pump
                                                           from the Participating
                               replacement measure
                                                           Contractor’s invoice.
                              Install the duct sealing
                               measure

Replacement Air Handler   To determine eligibility and     $150/unit deducted from
                                                                                     Electronically Commutated Motors (ECMs) offer several
with ECM                  receive coupon, customer         contractor’s invoice
                                                                                     advantages over the typical single stage (speed)
                          must choose one:
                                                                                     motors that are installed in HVAC systems today.
                              Complete a Tier 2
                                                                                         More energy efficient
                               assessment
                                                                                         Variable speeds
                              Contact a participating
                                                                                         Quieter
                               contractor directly (see
                               website contractor list)
                          Incentive value based on:
                              The savings between a
                               comparable non-ECM
                               equipped system and
                               that of the replacement
                               system with an ECM.
                              Rebate only available
                               when ECM is installed
                               with a full system
                               replacement, retrofits of
                               the fan only are not
                               eligible.

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Customer Savings Bonus    To qualify for the bonus,       $200 rebate sent to
                                                                                  The Customer Savings Bonus 1 further rewards
1                         customer must complete all:     customer upon measure
                                                                                  customers that have had a Tier 2 Assessment completed
                                                          verification.
                              Complete a Tier 2                                  and implemented enough of the recommended
                               assessment                                         measures to achieve significant energy savings.
                              Complete 4 measures
                               including the evaluation                           Note: If the total amount the customer spends does not
                                                                                  exceed the total amount of the incentives received,
                                                                                  then any eligible savings bonus will be paid to the
                                                                                  primary installing contactor. Please see the Section
                                                                                  titled “Incentive Payment Process” for more details.

Customer Savings Bonus    To qualify for the bonus,       $400 rebate sent to
                                                                                  Customer Savings Bonus 2 further rewards customers
2                         customer must complete all:     customer upon measure
                                                                                  that have had a Tier 2 Assessment completed and
                                                          verification.
                              Complete a Tier 2                                  implemented enough of the recommended measures to
                               assessment                                         achieve significant energy savings.
                              Complete at least 5
                               measures including the                             Note: If the total amount the customer spends does not
                               evaluation                                         exceed the total amount of the incentives received,
                                                                                  then any eligible savings bonus will be paid to the
                                                                                  primary installing contactor. Please see the Section
                                                                                  titled “Incentive Payment Process” for more details.

Non-Cash Benefits
During both the Survey and Assessment, the HEC will install energy-saving devices where appropriate and with customer
permission. These devices, valued at up to $125, will instantly save energy and money if properly installed and used and
will be installed for free.
All evaluation customers are eligible for these devices:
      Compact Fluorescent Light Bulbs (CFLs), 60 Watt equivalent (up to six).
      Smart Power Strip (one).
Evaluation customers with electric hot water heaters are eligible for these devices:
      Faucet aerators.
      Low-flow showerhead (one).
      Water heater wrap.
      Water heater pipe insulation.
*Note: Actual items installed may differ from the images below

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Compact Fluorescent Light Bulbs (CFLs)
                                   A qualified Compact Fluorescent Light bulb (CFL) will save about $30 over its lifetime and
                                   will normally pay for itself in about six months.
                                   CFLs produce light differently than incandescent bulbs. In an incandescent, an electric
                                   current runs through a wire filament and heats the filament until it starts to glow. In a
                                   CFL, an electric current is driven through a tube containing gas. This generates invisible
                                   ultraviolet light that excites a fluorescent coating (called phosphor) on the inside of the
                                   tube, which then emits visible light. CFLs use about 75 percent less energy than
                                   incandescent bulbs. A CFL ballast helps "kick start" the CFL and then regulates the current
                                   once the electricity starts flowing.
                                   Older CFLs used large and heavy magnetic ballasts that sometimes caused a buzzing
                                   noise. Most CFLs now use electronic ballasts, which do not buzz or hum.
                                   CFLs contain extremely low levels of toxic substances and must be disposed of in a
                                   responsible manner. Most big box home improvement stores, and some other merchants,
                                   offer this disposal service free of charge.

Low-Flow Showerheads

                                   In an average home, the shower accounts for about 22 percent of total water use. For
                                   maximum water efficiency, a showerhead with a flow rate of less than 2.5 GPM should be
                                   used.
                                   Before 1992, showerheads had flow rates of as high as 5.5 GPM. Therefore fixtures that
                                   pre-date 1992 use much more hot water than more modern models.

Aerators

                                   Similar to the savings you get with low-flow showerheads; low-flow aerators reduce the
                                   amount of water used in older faucets.

Pipe Insulation

                                   Pipe insulation retains heat in pipes. The first six feet of pipe coming out of a hot water
                                   heater allow heat to escape. Insulating this critical section will help save heat and energy
                                   used by the hot water heater.

Electric Water Heater Wrap

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With any water heating system that requires a storage tank, some of the heated water will
                                         be unused. And this unused water will eventually require reheating for future use. This
                                         costly energy waste is referred to as standby heat loss, and it can account for up to 20
                                         percent of your total water heating costs.

                                         The majority of heat loss occurs through the steel walls of the tank as well as the hot
                                         water pipes. With systems that use storage tanks, avoiding or eliminating all standby
                                         heat loss is all but impossible. However, the additional insulation provided from a hot
                                         water heater blanket can significantly reduce standby heat loss.

                                         If adding a wrap conflicts with the manufacturer’s warranty the HEC will not
                                         be permitted to install it.

Smart Power Strip

                                         Reduce plug-load energy use by replacing standard power strips with smart strips. A
                                         smart strip has the ability to disconnect specific switched outlets automatically by
                                         monitoring the power draw of a control load plugged into the same strip. All appliances
                                         plugged into the switched outlets can be turned off when the power draw of the control
                                         load is reduced below a certain adjustable threshold. By turning off such appliances
                                         completely, the standby plug- loads of all controlled devices can be eliminated, resulting
                                         in energy savings.

Incentive Basis
Arkansas Deemed Savings are used to determine energy savings for the Program. Deemed savings are standardized
savings values or simple formulas for a range of measures in representative building types. This approach is suitable for a
variety of projects where energy savings may be estimated to a reasonable degree of accuracy without additional
Measurement and Verification (M&V). Variables such as operating hours and energy consumption of existing equipment
are assumed in these cases according to previously gathered field data.

Project Coupon Requirements
The Participating Contractor is responsible for meeting all of the submission requirements for an eligible coupon/rebate to
be processed and paid.
        A coupon is deemed eligible if it is:
         o Complete, containing all indicated signatures and other necessary information.
         o Legible.
         o Submitted prior to its expiration date.
         o Submitted with a verified Entergy Arkansas account number.
         o Submitted with all necessary accompanying documents.

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Project Coupon Process
Upon receipt of a signed coupon, the Program Implementer will review the coupon for completeness and eligibility, and
then process the coupon for distribution to the Participating Contractor. If oversubscription to the program should occur,
Contractors will be placed on a waiting list in the order that the project coupons were received.
Contractors on the waiting list may be able to reserve incentive funding for the current program year if projects are
cancelled and funds become available. Otherwise, they may be eligible to reserve funding through the next program year.
Cash incentives are subject to availability and incentives are offered on a first come, first served basis with no guarantee of
availability to all customers. Coupons for incentives must be sent within 60 days of the measure completion date.
Incentive Payment Process
Contractor Overview
Incentives are paid to the Contractor and represented as a discount on the final invoice presented to customers.
The Program Implementer requires that coupons are submitted within 60 days of work completion. The Program
Implementer will make all possible efforts to reimburse the contractor as soon as the completed coupon is received.
If coupons are received after 60 days, service providers are required to contact the Program Implementer to request a
waiver due to their late submission. Program Management will make the final decision whether to accept or deny late
submissions.
Contractors are encouraged to submit their coupons as soon as possible to shorten processing time and to be sensitive of
funding forecasting which may determine the availability of program incentive funds.
The Program Implementer will make all possible communication to service providers if incentive amounts change or if the
program is ending before the official ending date. Notice will be given at least 10 days before any changes are made.
Coupons and Rebates
Participating contractors are responsible for meeting all of the submission requirements for an eligible coupon/rebate to
be processed and paid.
     A coupon is deemed eligible if it is:
            o Complete, containing all indicated signatures and other necessary information.
            o Legible.
            o Submitted prior to its expiration date and within 60 days of work completion.
            o Submitted with a verified Entergy Arkansas account number.
            o Submitted with all necessary accompanying documents.
     A rebate is deemed eligible if it is determined by CLEAResult that all qualifications have been met for a specific
      bonus.
     The total of the incentives paid to the customer cannot exceed the overall amount of the measure(s) paid by the
      customer.
            o If the total amount the customer spends does not exceed the total amount of the incentives received, then
              any eligible savings bonus will be paid to the primary installing contactor.

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 CLEAResult will make every effort to pay qualified coupons to the contractor within 30 days of submittal, assuming
      the submission requirements are found to have been met (as detailed above).
     CLEAResult will make every effort to pay qualified rebates and bonuses (to contractor or customer) within 60 days
      of submittal or eligibility.

Limits on Participation
Once the budget for a Program year is expended, a waiting list will be established for Program participation in the
following Program year. At present, it is anticipated that there will be no waiting list for 2015 or beyond, because the
Program is scheduled to terminate at the end of 2014.

PARTICIPATION PROCESS
Overall Program Process
Customers can receive information regarding the Program three different ways:
    1.   Call the Energy Efficiency Solutions Center (EESC),
    2. Visit Entergy’s website, or
    3. Talk with their local Participating Contractor who can identify opportunities for energy efficiency upgrades in the
       home and issue coupons.

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18
DISCLAIMERS
Entergy Arkansas, Inc. and/or CLEAResult
The selection of a Participating Contractor to perform work is the sole decision of the property owner, customer, and/or
authorized lessee/occupant. Inclusion of a contractor in the Participating Contractor list for the Program does not
constitute an endorsement by Entergy Arkansas, Inc., or CLEAResult of any product, individual, or company. Work
performed by participating contractors is not guaranteed or subject to any representation or warranty, either expressed or
implied or otherwise, by either Entergy Arkansas, Inc. or CLEAResult. Neither Entergy Arkansas, Inc. nor CLEAResult makes
any guarantee or any other representation or warranty, expressed or implied or otherwise, as to the quality, cost, or
effectiveness of any product(s) provided or work(s) performed by any Participating Contractor or by any such
Participating Contractor’s employees, subcontractors or suppliers.
Energy efficiency gains are subject to a number of variable conditions and circumstances. While it is not the intent of the
Program to achieve energy efficiencies, Entergy Arkansas, Inc. nor CLEAResult guarantees or warrants that any specific
energy efficiency gains will be achieved for a particular customer under the Program.
Participating Contractors
Each Participating Contractor shall, to the fullest extent allowed by applicable law, indemnify, protect and hold harmless
CLEAResult, Entergy Arkansas, Inc., their affiliates, their contractors and each of their officers, directors, control persons,
employees, agents and representatives (all of the foregoing being herein referred to, individually and collectively, as the
“Indemnities”) from and against any and all losses, damages, claims, liabilities, costs and expenses (including attorney’s
fees) that may be imposed on, incurred by, or asserted against the Indemnities or any of them by any party or parties
(including, without limitation, a governmental entity), caused by, arising from, relating to or in connection with, in whole
or in part, directly or indirectly: (a) such Participating Contractor’s breach of any provision of this Agreement (b) such
Participating Contractor’s act or omission that results directly or indirectly in any property damage, personal injury or
death in connection with the performance of any work by such Participating Contractor, (c) any violation of law by such
Participating Contractor or (d) the treatment, storage, disposal, handling, transportation, release, spillage or leakage by
such Participating Contractor of any hazardous substance in any form. THIS INDEMNITY SHALL APPLY EVEN IN THE EVENT OF
THE CONCURRENT NEGLIGENCE, ACTIVE OR PASSIVE, OF ANY OR ALL INDEMNITEES. Indemnities, respectively, at their option
exercisable by written notice to such Participating Contractor, may require such Participating Contractor to defend any or
all suits or claims concerning the foregoing.

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CUSTOMER FREQUENTLY ASKED QUESTIONS (FAQS)
Q. Why Do I Need an Energy Evaluation (Survey or Assessment)?
A. There is a long list of potential benefits including:
         Saving money on your energy bills.
         Increasing your comfort.
         Identifying which program measures will benefit your home the most.
         Increasing your home’s resale value.
         Improving your home’s marketability.
         Uncovering hidden problems.
         Improving the environment.
         Taking advantage of available incentives.
         Receiving a return on energy efficiency investments.
Q. Why is a Tier 2 Assessment Better than a Tier 1 Survey?
A. Tier 2 includes diagnostic testing and modeling of issues specific to your home as well as providing measure coupons.
With this information, more accurate savings calculations and recommendations for improvements can be made, and your
HEC can determine the correct order in which to install the measures. A Tier 1 Survey can only provide information based on
a visual inspection, and coupons cannot be generated. You also will not be eligible to receive savings bonuses for installed
measures.
Q. Why Must I Call the EESC First? Can’t I Just Call my Contractor?
A. You may go directly through your contractor provided they are on our list of participating contractors. If your contractor
is not on the list, encourage them to call us to discuss how they may become a Participating Contractor.
If you choose to go directly through your contractor, you will miss out on getting a Survey or Assessment and the
associated rebates as well as the direct install devices that go with them.
Q. What Can I Do to Prepare for my Survey or Assessment?
A. Make a list of any existing problems such as condensation and uncomfortable or drafty rooms. Have copies or a
summary of the home's yearly energy bills. (You can call Entergy Arkansas at 1-800-ENTERGY (368-3749) or sign in to
MyAccount on Entergy Arkansas’ website to request these documents.) HECs use this information to establish what to look
for during the evaluation. The HEC first examines the outside of the home to determine the size of the house and its
features (e.g., wall area, number and size of windows). The HEC will then analyze the residents' behavior:
         Is anyone home during working hours?
         What is the average thermostat setting for summer and winter?
         How many occupants are in the home?
         Is every room in use?
         Do any occupants have allergy problems?
         Are there any moisture or mold problems in the home?

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Your answers may help uncover some simple ways to reduce your household's energy consumption. Walk through your
home with the HECs as they work, and ask questions.
Q. Who is Eligible for the Program?
A. The Home Energy Solutions Program is offered to all qualifying Entergy Arkansas residential customers, assuming they
meet the following requirements:
    1.   They are a residential customer of Entergy Arkansas with a valid account number,
    2. They live in a single-family home or a multifamily unit of four units or fewer (renters and owners eligible),
    3. They live in a home that is a minimum of one year old (Home Energy Consultant [HEC] Eligibility), and
    4. Program requires that customers have central heat and air conditioning (AC) to be eligible for any measures
Q. What Does the Program Cost?
A. The participants (customers and participating contractors) pay nothing for the Program support. Entergy Arkansas
provides all Program support, and the financial investment(s) any participant makes are for the Survey or Assessment and
for energy efficiency measures (other than those provided free of charge) installed in their own homes.
Q. Who Decides What Energy efficiency Technologies to Install and Who Installs Them?
A. The customers are the sole determinant for what energy efficiency measures they decide to implement and how they are
implemented. Customers should note the incentive coupons cannot be used with contractors who are not participants with
the program.
Q. How can a Contractor Become a Program Participant?
A. Contractors who would like to become participating contractors may call the Program at 501-265-0249.

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