 How
can I participate in the C&I Standard Offer Program?
 Eligible
entities can start the participation process by submitting an Initial
Application and a Final Application to AEP Texas Central Company, AEP
SWEPCO, or AEP Texas North Company (depending on the host customer's
location) to reserve funding based on the expected demand and annual
energy savings for a proposed project. For more information about the
C&I Standard Offer Program process, please visit the Participation
Process section of the site or view the program
process diagram. You may also view and download enrollment materials.
Can a project sponsor submit more than one Application?
Yes, a Project Sponsor can submit several applications for different projects, but the combined total incentive request cannot be more than maximum 20% of the total program budget for each project sponsor.
What
is a project?
A
project is the set of proposed or installed energy efficiency measures
or other improvements necessary to produce demand and energy savings
under the program contained in one program application. One project
may contain energy efficiency measures at more than one customer site,
as long as the customers and sites represented in each project are similar.
For example, installation of energy efficiency measures at a chain of
grocery stores would include more than one customer, but could constitute
only one project. If customers or sites are dissimilar, however, a separate
application is necessary for each customer or site.
Does the customer hosting a project have to purchase their energy from AEP Texas Central Company, AEP SWEPCO, or AEP Texas North Company?
No. Any individual electric distribution customer (connected to the AEP Texas Central Company, AEP SWEPCO, or AEP Texas North Company distribution system) can be a host customer.
How
is each project's incentive calculated?
This program pays incentives for both demand and energy savings at standard rates. The rates are $175/kW for peak demand reduction and $0.060/kWh for annual energy savings.
When
are incentive payments made?
A
Project Sponsor's incentive payment is made in two parts. The first
is made upon approval of the Installation Report, at which time 40%
of the expected incentive payment estimated on the Installation Report
for measures requiring M&V and 100% of the incentive payment for deemed
savings measures will be made. The second incentive payment is made
after the Project Sponsor has completed measurement and verification
for the project and AEP has approved the Savings Report. The Measurement
and Verification process may take as little as 90 days or as long as
12 months, depending on the energy efficiency measures involved in the
individual projects. The second payment is for the balance of program
incentives owed to the Project Sponsor, based on the level of demand
and energy savings actually achieved by the project (up to 60% of the
contracted amount).
Regarding
the security deposit, how will AEP handle a change in estimated savings,
either up or down, between the Initial Application and the Final Application?
If
the estimated savings for the Final Application are larger than that
of the Initial Application, an additional security deposit may be
required to reserve the incentive funding. If the estimated savings
for the Final Application is less than the Initial, AEP will hold the
original security deposit, but will base the 75% deposit return threshold
on the lower Final Application estimate.
What
is the minimum project size?
A Project Sponsor must expect to achieve peak demand reductions of at least 10 kW, except for customers that serve as their own project sponsor, in which there is no minimum project size.
How
is " peak demand reduction" defined for this program?
The
peak demand reduction is defined as the maximum, one-hour average, demand
reduction in kW that occurs when the system undergoing retrofit is operating
at peak conditions during the summer period. The summer period is defined
as weekdays, between the hours of 1 p.m. and 7 p.m. from May 1 until
September 30, excluding holidays.
When
can projects be combined or aggregated into a single application?
Different project sites may be combined into one application if they have identical proposed energy efficiency measures, similar functions, and similar operating conditions. For example, several sites of a chain of hardware stores could qualify as one project. The combination of similar project sites can help an application reach the program minimum project size of 10 kW peak period demand reduction. Sites that are dissimilar (installing different energy efficiency measures or having different operating characteristics) may not be combined into a single project. An example of two dissimilar sites would be an office building and a school, even if both sites included the installation of the same measure, such as a chiller.
If
three customers are consolidated on one application and one of them
backs out after the project is started, can the security deposit
be refunded to the Project Sponsor?
In order for the security deposit to be returned, the Project Sponsor must install measures representing 75% of the total incentive payment. In this case, if the two remaining customers can achieve more than their projected savings, enough to compensate for the savings not achieved by the lost customer, the security deposit will be returned. The final incentive payment will be based on the total savings achieved through the two customers.
Should
a Project Sponsor submit a different application for each customer?
Consolidating
different customers into one project has its advantages and its drawbacks.
Be sure and understand both before you consolidate customers.
How
are actual energy savings determined?
The
actual--rather than predicted--demand and energy savings are determined
through measurement and verification (M&V) conducted by the Project
Sponsor. M&V is mainly a form of due-diligence for AEP to ensure that
their incentive funding (collected from electric distribution customers)
has been prudently spent. For the C&I Standard Offer Program, three
levels of M&V rigor are used to estimate the amount of energy savings
achieved by the programs:
- "Deemed savings" uses stipulated savings data for a particular energy
efficiency measure taken from past DSM programs or other industry
data; no short-term testing or long-term metering is required;
- "Simplified M&V" involves short-term testing or simple long-term
metering, but relies chiefly on manufacturer's efficiency data and
pre-set savings calculation formulas to determine savings; and
- "Full M&V" refers to any M&V activities that represent a higher
level of detail than the simple M&V or deemed savings approaches,
including stipulated savings based on short-term information, metered
savings of equipment or systems, whole building billing analysis,
and calibrated computer simulation.
The level of M&V rigor required for a particular project depends on
the type of equipment being installed and its operating characteristics.
For example, all energy savings for lighting occupancy sensors are determined
using deemed savings. More complex project measures require more M&V.
Who
is responsible for measurement and verification (M&V) activities?
The
Project Sponsor must perform any M&V required for a project; this may
involve metering equipment energy consumption, monitoring operating
hours, and other activities. AEP recommends certain M&V methodologies
for many common project measures, but Project Sponsors may need to develop
an original M&V plan for more unique or complex projects. The proposed
M&V plan must be included as part of the Final Application.
How
will the baseline energy consumption be determined?
Pre-installation monitoring may be needed to measure energy savings for some types of energy efficiency measures. In addition, the actual baseline energy consumption will need to be adjusted to reflect the applicable federal or industry efficiency standards (such as ASHRAE 90.1, NEMA, Energy Star) to determine the correct incentive amount. For some types of energy efficiency measures, such as a constant speed chiller replacement, the baseline energy consumption is actually determined by a minimum efficiency standard in conjunction with some post-installation data, so that no pre-installation monitoring is necessary.
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