LED Lighting Program Program Manual. Overview. 1. Eligibility

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1 LED Lighting Program Program Manual Overview The LED Lighting Program was developed by American Electric Power subsidiary (henceforth referred to as AEP ) Southwestern Electric Power Company (henceforth referred to as SWEPCO) to provide incentives for the installation of qualifying LED luminaries that reduce demand and save energy in non-residential facilities. Incentives are paid to the Project Sponsor (which may be either an energy service provider or a self-sponsoring customer) on the basis of deemed savings or verified demand and energy savings at eligible Commercial customers facilities. This program has been developed to comply with the Energy Efficiency Rule implementing Senate Bill 7. Participants in the LED Lighting Program must meet minimum eligibility criteria, comply with all program rules and procedures, submit documentation describing their projects, and enter into a Project Agreement with SWEPCO. This document summarizes eligibility requirements, incentives, the participation process, and other information needed to successfully take part in this program. 1. Eligibility 1.1 Project Sponsors Any entity that installs eligible LED measures at a facility with non-residential electricity distribution service provided by SWEPCO and has a maximum demand of more than 100 kw is eligible to participate in the LED Lighting Program as a Project Sponsor. Other Eligible Project Sponsors may include National or local energy service companies (ESCOs) Local contractors National or local companies that provide energy-related services or products (such as lighting or HVAC equipment) Retail electricity providers Individual customers that install measures in their own facilities. To ensure that the program s incentive budget is allocated to projects that are likely to meet with success, all Project Sponsors will be required to demonstrate a commitment to fulfilling program objectives and competency in completing the proposed project. Project Sponsors will be required to submit the following information as part of the application process: A description of the Project Sponsor firm, including relevant experience, areas of expertise, and references A work plan that covers the design, implementation, operation, and management of the project Proof of applicable insurance, licenses, and permits SWEPCO s LED Lighting Program is implemented by Geavista Group, Inc. as in independent contractor.

2 SWEPCO LED Lighting Program Manual Page 2 To ensure that incentives are available to multiple participants, Project Sponsor may be limited on the total amount of incentives received from the program incentive budget for a given year. An individual Project Sponsor can be a party to multiple applications as long as the total incentive from all such applications does not exceed the maximum limitation. 1.2 Host Customers Any Commercial SWEPCO distribution customer who owns or operates a site with a maximum peak demand of more than 50 kw may host a project developed by a qualified Project Sponsor or choose to sponsor the project independently. The host customer s responsibilities include the following: Committing to an energy efficiency project Entering into an agreement with the selected Project Sponsor (or SWEPCO for independently sponsored projects) Providing reasonable access to project facilities both before and after project completion 1.3 Service Providers One of the primary goals of SWEPCO s LED Lighting Program is to develop a network of service providers within SWEPCO s service area that can provide high quality LED products and installation services. To achieve this goal, the Program will provide training and sales tools to qualifying service providers. All service providers (lighting manufacturers, distributors, installers, and contractors) are encouraged to submit an application to join the Program to gain access to sales tools, deemed savings calculators, and other program benefits. A list of participating service providers will be made accessible to customers interested in pursuing information and quotes for LED products. The Program will enroll two types of service providers: Installation Contractors and Product Suppliers. Installation Contractors: Each project must be installed by a participating Installation Contractor unless the installation is conducted by the host customer s in-house staff. Installation service providers are authorized to install LED lighting for qualifying projects and will be listed as Installation Service Providers on the Program s list of qualifying service providers that is distributed to customers. Product Suppliers: Each Product Supplier applying to join the Program as a participating service provider must manufacturer, distribute, or sell an LED product that meets the Program s LED product eligibility requirements. If a Product Supplier has not previously received incentives for one of their LED products from a utility program in Texas or does not currently have any products listed with the DesignLights TM Consortium, then the Product Supplier may submit documentation for ONE (1) product to be reviewed by the Program to verify that it meets the necessary requirements to receive incentives. See section 1.5 of this Program Manual to view eligibility criteria and required documentation for LED products. In addition, each participating service provider must meet the following criteria: Proof of business in good standing via a state authorized Certificate of Good Standing. ( (this is not required for contractors operating as an independent contractor utilizing a personal social security number).

3 SWEPCO LED Lighting Program Manual Page 3 Proof of general liability insurance: o For installation service providers: $300,000 per occurrence (combined for property damage and bodily injury),$600,000 aggregate (total amount the policy will pay for property damage and bodily injury coverage); and $300,000 aggregate for products and completed operations For Product Suppliers: General liability coverage of $500,000 Proof of Workman s Compensation Requirements For service providers providing installation services (not required for Product Suppliers): o Proof of workman s compensation insurance as required by the State of Texas for General Contractors. o Service provider must hold an Electrical Contractor business license through the Texas Department of Licensing and Regulation or a license from the relevant municipal district related to the project site. o Service provider must follow the U.S. Department of Labor s Occupational Safety & Health Administration electrical standards and safety regulations as outlined at Projects A project is defined by the set of LED measures installed at an eligible SWEPCO distribution customer site and the estimated demand and energy savings included in a single application. All projects must meet the following requirements: Each project must include a total estimated summer demand reduction of at least 5 kw OR and estimated annual energy savings of at least 30,000 kwh. This limitation is included to ensure that projects contribute to the program goals to minimize administrative costs. If the customers and sites proposed are all similar, one project may involve the installation of measures at multiple customer sites. For example, installation of LED measures at a chain of grocery stores may include more than one customer, but may constitute a single project. This limitation is included to limit administrative costs for duediligence review of applications and projects. Eligible projects are limited to parking garages, parking lots, outdoor security lighting, and outdoor walkway lighting. All other outdoor lighting applications will be reviewed on a case-by-case basis to determine if they are eligible to receive incentives. 1.5 LED Measures LED fixtures, luminaries, and products will be evaluated on a per project basis and must meet the criteria listed below that is derived from the ENERGY STAR Criteria for Solid State Luminaries or must be a product accepted by the DesignLights TM Consortium. Criteria for LED measures: 1. Color Maintenance: The change of chromaticity over the lifetime of the luminaries shall be within on the CIE 1976 diagram 2. Warranty: A warranty must be provided for products covering the repair or replacement of defective electrical parts for a minimum of 5 years from the date of purchase 3. Product manufacturer must adhere to device manufacturer guidelines, certification programs, and test procedures for thermal management

4 SWEPCO LED Lighting Program Manual Page 4 4. Lumen Maintenance of LED Light Sources (L 70 ): LED luminaries must deliver at least 70% of initial lumens, when installed in-situ, for a minimum of 50,000 hours 5. Power Supply: Must have an operating temperature range of -40 C to 50 C and cannot exceed the power supply manufacturer recommended case temperature of TMP when measured in-situ 6. Power supplies shall comply with IEEE C , Class A operation 7. Output Operating Frequency: 120 Hz 8. Luminaries Efficiency: Minimum of 50 lm/w; fixture must produce a minimum of 1,000 lumens 9. Luminaries must deliver a minimum of 85% of the total lumens within 0-90 zone and cannot emit any light above Manufacturer must be able to submit LM-79 and LM-80 testing documentation conducted by an independent laboratory 11. Luminaries must meet applicable Underwriters Laboratory safety specifications for Luminaries (UL 1598) Products will only be evaluated for approval when submitted in conjunction with a qualifying project application. SWEPCO will not review products that are not submitted as part of a qualifying project or Service Provider Application and will not publish a list of qualifying LED products. LED products that cannot provide sufficient documentation, test data, and other product information requested by SWEPCO and/or program contractors will not qualify to receive incentives from the LED Lighting Program. The following documents are required to review LED products: IESNA LM Photometric Test Report (formatted to LM-63-03) IESNA LM Integrating Sphere Output Report Documentation of Lumen Maintenance: o Option 1: Component Performance LED Package Manufacturer LM-80 Test Report with results showing relative light output over time In situ temperature measurement test (ISTMT) showing measured TMPLED Diagram or photograph of the Temperature Measurement Points for the package, array or module o Option 2: Luminaire Performance IESNA LM Test Report at time = 0 and 6,000 hours respectively For Power Supply: In situ temperature measurement test showing measured TMPPS and a diagram or photograph of the Temperature Measurement Point for the power source Warranty (a written or electronic copy of the complete terms and conditions) A written statement indicating the forward drive current (in milliamps, ma) applied to the LEDs in the luminaire, Product Part Number of the luminaire (including the version or generation if it is not specified in the part number), and a description and the part number of the LED chip(s) inside the luminaire.

5 SWEPCO LED Lighting Program Manual Page 5 The Program will not evaluate products that are not part of an active project or Service Provider Application and the Program will not publish a list of qualifying products. 2. Incentives Each year, throughout the course of the Program, SWEPCO will determine the total incentive funds available. The incentive prices and payments are summarized below. 2.1 July 2010 July 2011 Incentive Rates The LED Lighting Program provides standard incentive prices for demand and energy savings of $235.00/kW for peak demand reduction and $0.15/kWh for energy saved. Demand savings are the resulting demand reduction during the summer peak period (June 1 st through September 30 th, 1 PM to 7 PM, excluding Federal holidays). Energy savings are defined as energy savings over the course of one 12-month period. Savings will be "deemed" that is, stipulated through standardized savings values or formulas using approved savings calculations. 2.2 Incentive Limitations To ensure that incentives are available for multiple projects, the Project Sponsor may not reserve nor receive more than the defined project sponsor maximum in a given budget year. SWEPCO reserves the right to waive this limitation pursuant to PUC Substantive Rule (i)(3). 2.3 Payments SWEPCO will pay Project Sponsors one installment after the project has completed, passed a post-installation inspection, and been approved by SWEPCO. Incentives will be calculated using the formula, stipulated hours, and peak coincidence factors below. Payment = (deemed peak demand kw savings * $235.00) + (deemed annual kwh savings * $0.15) Area Type Stipulated Run Peak Coincidence Factor Hours (Annually) Parking lots & other outdoor 3,996 0 (not operational during peak hours) lighting Parking garage lighting 7,884 1 (operational 100% during peak hours) Under no circumstances will SWEPCO make a total incentive payment that is more than 100% of the total estimated incentive payment specified in the Project Application. If, however, the final project deemed savings indicate that the measured savings are less than the estimated savings, the total incentive payment may be less than the payment estimated in the application. 3. Project Assistance SWEPCO has contracted with Geavista Group, Inc. ( Program Implementer ) to perform implementation services for the LED Lighting Program. LED lighting is one of the newest and most energy-efficient lighting technologies. To assist customers with identifying areas for LED installations and evaluating LED products, the Program will provide the following services at no cost to eligible SWEPCO customers:

6 SWEPCO LED Lighting Program Manual Page 6 Assistance with identifying opportunities for LED lighting Assistance with calculating the estimated peak demand savings, annual energy savings, and potential project incentives Provide a customizable Request for Bid template that outlines the required LED product specifications A list of participating service providers to customers interested in LED lighting Assistance with evaluating bid submissions, calculating payback terms, and reviewing LED products to ensure that they meet the Program s specified criteria 4. Participation Process The LED Lighting Program is designed to assist customers and service providers with implementing LED lighting projects. A customer may enter the Program by either utilizing a participating service provider or contacting the Program Implementer ( PI ) for assistance with indentifying an LED project and/or service provider. The following steps outline the Program process: 1. SWEPCO has contracted with Geavista Group, Inc., the Program Implementer (PI) to assist customers identify areas for LED installations and evaluate LED products. In addition, Geavista Group (the PI) can provide the following: a. Assistance with calculating the estimated peak demand savings, annual energy savings, and potential incentives b. A customizable Request for Bid template that outlines the required LED product specifications c. Assistance evaluating bid submissions, calculating financial impacts, and reviewing LED products to verify they meet the Program s specified criteria. 2. Customer selects the LED product and determines who will serve as the Project Sponsor. 3. The PI, or a participating service provider if selected by the customer, will complete a Pre-Installation Inventory that provides information about the existing lighting and outlines the retrofit or new construction project. 4. The Project Sponsor completes the Project Application and submits the Project Application to the PI along with the all the required LED product documentation for review. 5. The PI reviews the application and product information and completes the application by adding the anticipated peak demand savings, energy savings, and incentives. 6. The PI sends the completed application to the Project Sponsor and the Project Sponsor signs the Project Agreement and submits it to the PI. 7. The PI conducts a pre-installation inspection and sends the Project Sponsor a Notice to Proceed with Installation. Note, if installation has begun prior to the pre-installation inspection, the fixtures that have already been retrofit will be deducted from the final savings calculations and the incentive amount will be reduced accordingly.

7 SWEPCO LED Lighting Program Manual Page 7 8. The project is installed by a participating installation service provider or customer s inhouse staff. The Project Sponsor and customer complete the Installation Report and Customer Acknowledgement Form and submit them to the PI. 9. The PI conducts a post-installation inspection to verify that all measures were installed and are operating properly. 10. The PI completes the Measurement and Verification Report and submits it to SWEPCO. SWEPCO processes the incentive check to the Project Sponsor. 4.1 Project Application Process Project Sponsors may begin the application process online at All forms relating to the project life cycle are contained in the Project Packet. The Project Packet shall contain the following information: Pre-Installation Inventory worksheet detailing all of the existing lighting and estimated kw and kwh savings. Project Application, which includes: o Identification of the Project Sponsor. o Identification of the host SWEPCO customer site(s) including the ESI ID number(s). o Description of the proposed set of energy-efficiency measures and associated incentives requested. Executed Project Agreement. Installation Report Customer Acknowledgment Form Applications will be reviewed by the Program Implementer on a first-come, first-served basis until all incentive funding has been committed. The Project Sponsor will complete the Pre- Installation Inventory and the Project Application and submit it to the PI. The PI will review the information and complete the application by filling in the estimated kw and kwh savings and the incentive amount. After review of the application, the Program Implementer will send the application to the Project Sponsor and the Project Sponsor will sign the Project Agreement and send it back to the PI (see section 4.2). After executing the Project Agreement, the PI will coordinate with the Project Sponsor to collect all the required test documentation about the LED product(s) to be used at the project site. After the project and LED product(s) are approved, the Program Implementer will contact the Project Sponsor to arrange for a pre-installation inspection of the site. 4.2 Project Agreement As part of the project application, the Project Sponsor shall execute a Project Agreement and the Program Implementer must receive this executed Agreement as part of the application packet. The terms of the contract will be standard for all Project Sponsors, and will include the measures to be installed, estimates of demand and energy savings, a maximum incentive payment associated with the project, and the approved M&V approach. All projects must complete within 4 months of application approval or the project is subject to cancellation and

8 SWEPCO LED Lighting Program Manual Page 8 incentive funds will be released back into the Program. If, at any time, there is a delay in the project installation, it is the responsibility of the Project Sponsor to notify the Program Implementer and request an extension. 4.3 Pre-Installation Inspection After receiving the application, the Program Implementer will conduct a pre-installation inspection of the project site or plans to verify the baseline conditions documented in the application and the feasibility of installing the proposed LED measures. The Program Implementer will contact the Project Sponsor and complete the inspection within thirty business days of the receipt of an approved application. The pre-installation inspection requires the presence of at least one representative of the Project Sponsor familiar with the project and the facility so that any discrepancies can be identified simultaneously by all parties. The inspection will verify the following information: The accuracy of the lighting inventory. For most projects the accuracy of the existing lighting quantity, type, and wattage information is verified. The requirement for acceptance is that the total fixture count and lighting wattage must be within 5% of the total submitted on the lighting inventory form. All existing lighting listed in the lighting inventory is still in place and operational. New equipment installation, or preparation for installation, has not begun. When electrical measurements are necessary, the representative(s) is required to perform any necessary disruptions in equipment operation, the opening of any electrical connection boxes, or the connection of current and power transducers. If the preinstallation inspection cannot be completed in a timely manner because the representative(s) is unfamiliar with the facility or project, the project site will fail the inspection. If a project site fails two inspections, SWEPCO, will either, reject the project, release the reserved incentive funds, or conduct additional inspections at the Project Sponsor s expense. If the proposed equipment has been installed before the pre-installation inspection and the baseline conditions cannot be verified, SWEPCO may reject the application and release the reserved incentive funds. 4.4 Measurement and Verification (M&V) Prior to the total incentive payment being issued, the potential for the project measures to save demand and energy must be verified and the actual savings estimated. These activities will utilize the deemed savings method approved by the Public Utility Commission of Texas or M&V may be conducted in accordance with the approved M&V plan developed for the project and submitted with the application. Project Sponsors are responsible for developing their own M&V plans conducting all M&V activities for the project if the project is not utilizing deemed savings. Project-specific M&V procedures may be classified according to two distinct approaches that represent increasing levels of detail and rigor. Deemed savings: Savings values are stipulated based on engineering calculations using typical equipment characteristics and operating schedules developed for particular

9 SWEPCO LED Lighting Program Manual Page 9 applications, without on-site testing or metering. This approach can be used only for measures for which savings are relatively certain, such as lighting efficiency and controls. Simple M&V: Savings values are based on engineering calculations using typical equipment characteristics and operating schedules developed for particular applications, with some short-term testing or simple long-term metering. 4.5 Measurement and Verification Report After all M&V activities are complete, the Program Implementer will complete a Measurement and Verification Report, documenting the projects measured demand and energy savings. An approved Measurement and Verification Report will serve as the invoice for the incentive payment. This payment is based on the project s verified savings. The total incentive payment cannot exceed the incentive payment stated in the Project Agreement. A typical review cycle for the Measurement and Verification Reports is 30 business days. 5. Correspondence All applications and supporting documentation will be completed and submitted to the Program Implementer listed below. Geavista Group Attn: Amanda Townsend, SWEPCO LED Lighting Program 4925 Greenville Ave., Suite 450 Dallas, TX Phone: (214) astownsend@geavistagroup.com 6. Confidentiality The LED Lighting Program is subject to oversight by the Public Utility Commission of Texas (PUCT), which may request a copy of any program materials received by SWEPCO and/or Geavista Group. Sensitive company and project information, such as financial statements, should be identified as confidential when submitted to the Program. These materials will be treated confidentially, and will not be provided directly to outside parties other than the PUCT and Geavista Group. SWEPCO will have no liability to any Project Sponsor or other party as a result of public disclosure of any submittals. 7. Participation Costs SWEPCO will not reimburse any Project Sponsor for any costs incurred by participating in the LED Lighting Program, including costs of preparing the application or reviewing the Project Agreement.

10 SWEPCO LED Lighting Program Manual Page Submission of False Information SWEPCO reserves the right to discontinue its evaluation of all submittals from any Project Sponsor who, in the sole judgment of SWEPCO, submits false, misleading, or incorrect information. 9. Web Site The LED Lighting Program Web site at will serve as the primary source for all updated program information and materials. The Web site will include the following: Information that describes the program design and requirements Contact information to receive more information about the Program Downloadable guidelines, applications, and submittal forms Attachments: Attachment 1: Project Packet Attachment 2: Service Provider Application