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AEP Texas North Company (AEP TNC) Residential Air Conditioning Distributor Market Transformation Pilot - 2014 AEP Texas North Company (AEP TNC) 2014 Residential Air Conditioning Distributor Pilot Page 1 AEP Texas North (AEP TNC) is implementing a limited-scale Residential Air Conditioning Distributor Pilot in 2014. The goal of this Pilot is to promote the sale and installation of higher efficiency residential HVAC equipment for increased energy efficiency. To achieve this goal, the Pilot pays incentives and provides other types of support directly to participating HVAC distributors. HVAC contractors and/or end users are not eligible to receive incentives directly from AEP TNC under this Pilot. The A/C Distributor Pilot Market Transformation Program (ACD MTP) targets a select number of air conditioning distributors in one or more cities served by TNC. Incentives are paid to the distributor for the installation of high efficiency A/C equipment up to 5 tons in cooling capacity. Equipment Eligibility and Reporting Requirements The following types of residential equipment qualify for incentives when installed in either new or existing homes within the AEP TNC service territory. A/C systems: ENERGY STAR ® qualified, minimum 14.5 SEER/12 EER, 1.5 to 5 tons Heat pump systems: ENERGY STAR qualified, minimum 14.5 SEER/12 EER/8.2 HSPF, 1.5 to 5 tons All systems must be AHRI-matched, as evidenced by the appropriate AHRI rating sheet, to be submitted by the distributor. The Installing Air Conditioning Contractor must complete an ACCA-compliant load calculation (Manual J or equivalent) and maintain it on file for a minimum of three years. The contractor must also provide a valid meter number or ESI ID number as evidence that the home is within AEP TNC’s service territory. Distributor Incentive Awards Distributors who are selected to participate have access to incentives on a “first-come, first- served” basis until program funding is exhausted. Distributors are encouraged to submit systems as early and regularly as possible. All qualifying systems must be submitted to The Program by November 20, 2014. Incentive Levels: Residential Replacement Residential replacement incentive amounts for central AC and heat pump units vary, depending on equipment size and SEER rating, as shown in the table below:

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Page 1: AEP Texas North Company (AEP TNC) Residential Air ... Texas North Company (AEP TNC) Residential Air Conditioning Distributor Market Transformation Pilot - 2014 AEP Texas North Company

AEP Texas North Company (AEP TNC) Residential Air Conditioning Distributor

Market Transformation Pilot - 2014

AEP Texas North Company (AEP TNC) 2014 Residential Air Conditioning Distributor Pilot Page 1

AEP Texas North (AEP TNC) is implementing a limited-scale Residential Air Conditioning Distributor Pilot in 2014. The goal of this Pilot is to promote the sale and installation of higher efficiency residential HVAC equipment for increased energy efficiency. To achieve this goal, the Pilot pays incentives and provides other types of support directly to participating HVAC distributors. HVAC contractors and/or end users are not eligible to receive incentives directly from AEP TNC under this Pilot. The A/C Distributor Pilot Market Transformation Program (ACD MTP) targets a select number of air conditioning distributors in one or more cities served by TNC. Incentives are paid to the distributor for the installation of high efficiency A/C equipment up to 5 tons in cooling capacity.

Equipment Eligibility and Reporting Requirements

The following types of residential equipment qualify for incentives when installed in either new or existing homes within the AEP TNC service territory.

• A/C systems: ENERGY STAR® qualified, minimum 14.5 SEER/12 EER, 1.5 to 5 tons

• Heat pump systems: ENERGY STAR qualified, minimum 14.5 SEER/12 EER/8.2 HSPF, 1.5 to 5 tons

All systems must be AHRI-matched, as evidenced by the appropriate AHRI rating sheet, to be submitted by the distributor. The Installing Air Conditioning Contractor must complete an ACCA-compliant load calculation (Manual J or equivalent) and maintain it on file for a minimum of three years. The contractor must also provide a valid meter number or ESI ID number as evidence that the home is within AEP TNC’s service territory.

Distributor Incentive Awards

Distributors who are selected to participate have access to incentives on a “first-come, first-served” basis until program funding is exhausted. Distributors are encouraged to submit systems as early and regularly as possible. All qualifying systems must be submitted to The Program by November 20, 2014.

Incentive Levels: Residential Replacement

Residential replacement incentive amounts for central AC and heat pump units vary, depending on equipment size and SEER rating, as shown in the table below:

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AEP Texas North Company (AEP TNC) 2014 Residential Air Conditioning Distributor Pilot Page 2

Heat pumps also qualify for an additional incentive amount that is based on unit size and HSPF rating:

Incentive Levels: Residential New Construction

Residential new construction incentive amounts for central AC and heat pump units vary, depending on equipment size and SEER rating, as shown in the table below.

Heat pumps also qualify for an additional incentive amount that is based on unit size and HSPF rating:

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AEP Texas North Company (AEP TNC) 2014 Residential Air Conditioning Distributor Pilot Page 3

Distributor Requirements

All participating distributors must meet the following requirements:

• Develop an information packet for your contractors listing your own eligibility requirements, incentive amounts, procedures and contact person(s). It is also beneficial to provide your contractors with a list of your qualifying AHRI-matched systems, along with the AHRI reference number.

• Host one recruitment meeting for your contractors, which will be presented by AEP TNC representatives. This meeting will include an overview of the Pilot as well as a short sales training presentation to help dealers upsell higher-efficiency systems.

• Collect the required data from your contractors and enter this data into the AEP TNC online reporting system.

• Submit hard copies of all claim forms and invoices completed by contractors, along with a copy of the AHRI reference sheet for each system submitted.

• Submit claims regularly in order to meet the Performance Milestones.

Contractor Requirements

The distributor must also require contractors to adhere to the following:

• The Installing Air Conditioning Contractor must complete an ACCA-compliant load calculation (Manual J or equivalent) and maintain it on file for a minimum of three years.

• Submit the completed Incentive Claim Form and invoice to the distributor, along with the appropriate AHRI certificate.

• Contractors must submit claims to the distributor in a timely manner so that the distributor can meet the 30-day reporting requirement.

For additional information, please contact Steve Ellison, ICF International at 469-467-4403 or [email protected].

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AEP Texas North Company (AEP TNC) 2014 Residential Air Conditioning Distributor Pilot Page 4

AEP Texas North Company (AEP TNC): Counties Served

Counties Served – All Zones Listed Alphabetically

County Zone County Zone

Baylor 2 Jones 2

Brewster 2 Kent 1

Briscoe 1 Kimble 2

Brown 2 King 1

Callahan 2 Knox 1

Childress 1 Mason 2

Coke 2 McCullough 2

Coleman 2 Menard 2

Concho 2 Motley 1

Cottle 1 Nolan 2

Crane 2 Pecos 2

Crockett 2 Presidio 2

Dickens 1 Reagan 2

Eastland 2 Reeves 2

Edwards 2 Runnels 2

Fisher 2 Schleicher 2

Foard 1 Shackelford 2

Gillespie 2 Stephens 2

Hall 1 Sterling 2

Hardeman 1 Stonewall 1

Haskell 2 Sutton 2

Irion 2 Taylor 2

Jeff Davis 2 Throckmorton 2

Tom Green 2

Upton 2

Wheeler 1

Wilbarger 1

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AEP Texas North Company (AEP TNC) 2014 Residential Air Conditioning Distributor Pilot Page 5

Map of AEP Texas North Company (AEP TNC) Service Area