2015 Contractor Agreement SWEPCO Texas CoolSaver SM Program

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1 OVERVIEW This Agreement is entered into between ( Contractor ) and CoolSaver Program Implementer, CLEAResult ( Program Implementer ). BACKGROUND Southwestern Electric Power Company ( SWEPCO ) created the CoolSaver Program to help residential customers become more energy efficient by performing high performance tune-ups and High Efficiency System Replacements on their air conditioning systems. SWEPCO, the program sponsor, contracted CLEAResult to develop and implement the program. PROGRAM OBJECTIVES High Performance Tune-ups The Program is designed to overcome market barriers that prevent residential customers from receiving high performance A/C and heat pump system tune-ups. Energy savings are captured through identifying A/C and Heat Pump system inefficiencies during the tune-up and correcting these system inefficiencies. The Program overcomes market barriers by providing incentives, paid to contractor, to help customers pay for system corrections and by providing incentives, training on best practices, and discounts on high quality tools for contractors to use in conducting high performance system tune-ups. AC/Heat Pump High Efficiency System Replacement The program provides incentives for contractors to propose and install replacement High Efficiency, (Energy Star) AC/Heat Pump systems, 15 SEER and higher. The Program overcomes market barriers by providing incentives to customers to help pay for High Efficiency Systems. NOTE: The Program Implementer will not directly market any energy efficiency related products or services to Contractor s customers. Entering into an agreement with Program Implementer does not imply Program Implementer s endorsement or approval of any products or services. The Program Implementer makes no representation of the benefits of any particular technology or energy efficiency measure eligible for incentives under this Program. The selection of an energy efficiency measure is at the discretion of the individual customer. PROGRAM OVERVIEW The Program focuses on training participating contractors on industry best practices using the Program toolkit and applying these practices quickly in the marketplace. To motivate the quick adoption of these practices, the Program s focus, requirements, and incentives will be as follows. The Program will conduct field and classroom training sessions for qualified Contractors. Training will consist of: o Learning the procedures, processes, tools, and measurements that the Program requires in order to conduct a High Performance A/C and Heat Pump system tune-up. o Learning how to use the Program toolkit to perform the tune-up measurements. o Learning how to use the measurement data to diagnose system inefficiencies. o Reviewing common system inadequacies and identifying opportunities for corrections and solutions. o Messaging the findings to customers to motivate them to purchase system upgrades that improve system efficiency. o Familiarizing Contractors with the required Program forms, including the toolkit and data submission process and requirements. o Familiarizing Contractors with the required Program procedures and forms to document High Efficiency AC/Heat Pump system replacements. After attending the training, Contractors will perform high performance A/C and/or Heat Pump system tune-ups and System Replacements, as instructed in the training. These can be offered to the Contractor s existing base of service customers who meet the eligibility requirements.

2 The Program Implementer may promote and market the Program to SWEPCO customers and provide a list of qualified Contractors for customers to select from. Contractors will also be authorized to promote the Program through their own marketing efforts. Contractors will be provided access to trainers who will respond to questions and are available to set appointments to meet technicians in the field to assist in clarifying the processes and to review real world findings. Review sessions will be held to discuss and share field lessons learned and to review the Program processes as the need arises. Customers may decide to purchase services recommended by the Contractor to correct the identified system inefficiencies as a result of the system tune-up evaluation at the Contractor s quoted price. The Program will provide to the Contractor an incentive payment of $ for each completed and verified single family home tune-up and $75.00 for each Multi-Family tune-up. Multi-Family is defined as any residence that does not have at least three exterior walls or any residence that is part of a complex that includes residences that do not have at least three exterior walls. Contractor must accurately complete and submit the following information to the Program Implementer within 30 days of completion: o Project data, submitted either via the approved program toolkit or online database o Technician Data Sheet, including customer signature and invoice amount The Program will provide to the Contractor an incentive payment in accordance with schedule A, attached for each replacement of an AC/Heat Pump System with a qualifying High Efficiency System. NOTE: SWEPCO will not reimburse Contractor for any costs it may incur by participating in the CoolSaver Program. Financial incentives described above are paid to Contractor upon verification and approval of completed tune-ups. CONTRACTOR AGREEMENT Through this Agreement, the Program Implementer agrees to: Conduct the items identified in the Program Overview in the best interest of all parties involved in the Program in order to make the Program successful and sustainable. Assist Contractor in procuring the Program toolkit(s). Conduct Program training that will present the Program definition of High Performance A/C Tune-up and requirements for performing qualifying A/C Replacements. Provide on-going Program support to continue contractor and Program development through Administer, calculate, and verify incentives for contractors and customers that fulfill the Program requirements. Through this Agreement, the Contractor agrees to: Perform a best faith effort to participate in the program and to help make it successful and sustainable, including: o Scheduling EPA certified program-trained technicians to work on A/C and Heat Pump systems after the training, and acting to incorporate the program Tune-up requirements on those jobs as soon as possible to help launch the program. o Provide feedback to the program, working to improve the program for all parties involved. o Completing and submitting the required Program documentation to receive the Program incentives and help to demonstrate success. Demonstrate the capability to conduct business successfully by providing ONE of the following: o A satisfactory Dun & Bradstreet Rating. o Specific evidence of business capacity including at least two of the following: A satisfactory banking reference. A minimum of three satisfactory professional/trade references, such as suppliers of materials, tools, credit.

3 Confirmation that the principals in the business have a satisfactory individual credit score with no outstanding liens or judgments. o If Contractor is unable to meet these requirements, they may submit, in writing, a Request for Waiver to Program Implementer. The Request for Waiver must provide a detailed, reasonable and credible explanation of the reasons why Contractor is unable to comply with the terms of the requirement. The Program reserves the right to reject any and all Request for Waivers. Respond to customers referred by the Program and provide services in accordance with the Program s processes and procedures and this Agreement. Contractor recognizes that the customers received from the program constitute a benefit and the Contractor agrees to respond to these customers within two business days. Remain in compliance with the following requirements: o Meet all requirements applicable to their specific trade(s) set by the jurisdiction having authority in the area where work is performed. o Ensure that all personnel who supervise or conduct jobs performed under the Program have the necessary knowledge and skills to meet the requirements of the Program s processes and procedures, whether performed by the Qualified Contractor s own employees or by a subcontractor. o Ensure that all jobs performed under the Program meet all requirements of the Program s processes and procedures. Exhibit fair business practices, including: o Treating Program clients fairly and delivering promised services in a timely and responsible manner. o Properly representing the relationship of the Contractor to the State of Texas, SWEPCO and Program Implementer. This relationship is that the Contractor is an independent, voluntary Contractor in the CoolSaver Program. Contractor shall NOT represent themselves as working for, approved by, or certified by the State of Texas, SWEPCO, or Program Implementer. All marketing mentioning SWEPCO must be submitted to the Program Implementer for approval prior to use. o Maintain any relevant licenses required by federal, state, county or municipal governments or any other agencies with jurisdiction overseeing work performed. o Maintain general liability insurance coverage meeting current Texas statutory requirements and produce proof of current coverage upon request by AEP or the Program Implementer. o Provide all program customers with information materials provided to the Contractor by the Program Implementer. o Provide the customer a written warranty of labor and materials for a minimum of one (1) year from the date the service is performed. Equipment installed shall carry manufacturer s warranty, including optional extended warranty coverage. o Provide its customer complaint resolution process to Program Implementer for review. If a Contractor becomes involved in a dispute with a customer over business practices, the Contractor shall work with Program Implementer to resolve the dispute amicably. If such discussion does not produce an outcome acceptable to the customer and the Contractor, the Contractor shall settle the dispute through the Contractor s customer complaint resolution process provided to the Program Implementer. In any event, Contractor shall hold SWEPCO and Program Implementer harmless from any suit arising from work where the customer was generated by the Program. o Allow random field inspections by the Program Implementer of work that has been performed. Contractor, upon request from Program Implementer, and at no additional cost to the customer, shall make reasonable repairs or corrections to work that Contractor has performed to bring such work up to the standards of the Program s best practices training. Contractor also agrees to take steps to ensure that future work will comply with the Program s processes and procedures. Acknowledge that participation in the Program is a privilege, and the following: o Program Implementer may suspend or terminate Contractor s status in the Program for any reason, including failure to maintain the Program s processes and procedures. In all cases involving a Contractor s status, or denial of coupon redemption, Program Implementer s written decision is final. o Contractor shall not employ as a subcontractor any firm that has been suspended or terminated from this Program or any other SWEPCO sponsored Program without prior written permission from the Program Implementer.

4 o Contractor acknowledges that failure to follow Program requirements and procedures, including processing of required documents, will result in a forfeiture of coupon redemption and possible disciplinary action. o It is further understood that the Contractor can suspend or terminate the agreement at any time. Disclose prior participation in SWEPCO Programs. o Contractor must divulge whether any individual(s) including owners, principals, shareholders, associates and employees affiliated with the Contractor have previously participated in, or are currently participating in an SWEPCO Energy Efficiency program(s); o If so, Contractor must list any and all individuals on the Signature Page of this document. This is an ongoing requirement. As such, the Contractor shall notify Program Implementer immediately of any changes or updates to this information. ACCEPTANCE OF AGREEMENT By endorsing below Contractor accepts this agreement with the CoolSaver Program sponsored by SWEPCO Texas and implemented by CLEAResult. The signatory for this agreement maintains that they have the full authority to commit the Contractor to the terms outlined in this agreement. Contractor Signature: Printed City, State, ZIP: Date:

5 Contractor must divulge below any individual(s), including owners, principals, shareholders, associates, and employees affiliated with the Contractor who previously have participated in, or are currently participating in an SWEPCO energy efficiency program(s). BANK REFERENCES Bank: Bank: TRADE REFERENCES

6 TRADE REFERENCES (continued) Please send signed copies via mail, or scan and , to: CLEAResult Attn: CoolSaver Program Manager 4301 Westbank Dr, Bldg A-Suite 250 Austin, TX Phone:

7 Schedule A HVAC Replacement Incentives Tons 15 SEER 16 SEER 17 SEER 18 SEER 1.5 $60 $120 $160 $ $80 $160 $200 $ $100 $200 $240 $ $120 $240 $280 $ $140 $280 $320 $ $160 $320 $360 $ $200 $400 $440 $750 Early Retirement? Add $25

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