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GPS Generation Partners

Questions & Answers

(For External Distribution)

What is Green Power Switch

(GPS) Generation Partners?

GPS Generation Partners is a program that provides technical support and incentives for the installation of renewable generation facilities. GPS Generation Partners was startedas a pilot in 2003 as a result of requests from end-use customers for “net-metering”standards in the TVA service territory. Net-metering enables customers to use their owngeneration to offset their consumption over a billing period by allowing their electricmeters to turn backwards when they generate electricity in excess of their demand

Thisoffset means that customers receive retail prices for the excess electricity they generat

Because of TVA’s current power contracts with its local power companies, net-meteringis not an option in the TVA service territory. TVA created GPS Generation Partners as a“dual-metering” option, an alternative to net-metering. With the GPS GenerationPartners program, there are two meters and TVA purchases 100% of the green energyoutput and then uses solar, wind, low impact hydropower, and biomass as a GreenPower Switch

resource.Green Power Switch is an energy option that allows local power companies throughoutthe Tennessee Valley to provide their customers the choice to buy electricity producedby renewable resources. TVA owned generation in the Green Power Switch

Programincludes solar, wind, and methane gas from waste water treatment. Seewww.greenpowerswitch.comfor more information on Green Power Switch

®.

What are the benefits for the participants of GPS Generation Partners?

Program participants support the environment by helping keep the Tennessee Valleyclean and green. For example, a 3 kilowatt (kW) system's annual benefits are equal toplanting an acre of trees or taking a car off the road for 4 months. In addition, solar systems help improve air quality by reducing emissions of fine particulate matter,nitrogen oxide, and sulfur dioxide. They also benefit by defraying the costs of their renewable system installation and lowering their monthly energy bills through therevenue they receive from the sale of the green power. TVA likes to call GPSGeneration Partners a Win-Win-Win for the end-use customer, the power company, andTVA.

How does the program work?

Below an overview of how the program works:

•

An eligible, renewable generation system is installed by a residential,commercial, or industrial power customer served by a participating local power company of TVA power.

•

TVA will purchase

100%

of the green energy output at a premium of $0.12

centsper kilowatt-hour (kWh) for solar and $0.03 for all other renewable generationsources above the retail rate plus any fuel cost adjustments. All new participantswill qualify for an additional $1000.00 incentive to help offset start-up costs.

•

Payment is issued in the form of a credit on the participant’s monthly power billby the local power company, who will meter both the power use of the home or business as well as the output of the renewable generation system.

•

The power company will provide monthly statements showing energy used andany applicable credit due. The power bill will be reconciled monthly with theseenergy credits. If the system produces more than the home or businessconsumes, a check will be issued monthly or annually, at the discretion of thelocal power company.

•

All equipment must be in compliance with environmental regulations and nationalstandards, certified by a licensed electrician, and meet all applicable codes.

•

The customer is guaranteed payments for 10 years from the start of theagreement with the local power company.Customers should contact their local power company to apply for participation in theprogram prior to purchasing a renewable generation system.

What renewable resources and technologies are eligible for the program?

Projects that generate electricity from technologies using any one of the followingsources are eligible for the program: solar, wind, low impact hydropower, and biomass.Biomass includes all solid, liquid, and gaseous forms of the following fuels:

•

All woody waste

•

All agricultural crops or waste

•

All animal or other organic waste

•

All energy crops

•

Landfill gas and wastewater

methane

Go to theRenewable Energy Resourcespage to learn more about each technology.

What size renewable systems are eligible for the GPS Generation Partnersprogram?

To maintain consistency among TVA offerings and to provide consumers with a standardoffer, the minimum size for all eligible generation systems is 500 watts and the maximumsize is 999 kilowatts. Systems 1 MW or larger will be negotiated on a case-by-casebasis.

Where can customers buy these systems? Is there a list of qualified vendors?

TVA does not recommend or require specific contractors and installers. However, we dorecommend researching contractors to ensure quality work. System sizing tips, costestimations, supplier/installer information, and related information can be researched atthe following Websites:North American Board of Certified Energy PractitionersNABCEP is a volunteer board working to develop national voluntary standards andcertifications for renewable energy professionals, beginning with solar electric installers.Look for the listings of these certified installers under the Resources link on the Website.American Solar Energy Society Center for Renewable Energy and Sustainable Technology- Click on Solar Consumer Energy Council of America, Distributed Energy Forum U.S. Department of Energy, Energy Efficiency and Renewable Energy U.S. Department of Energy, Energy Efficiency and Renewable Energy Solar Technology

Division Florida Solar Energy Center - click on Photovoltaics and/or Solar EnergyTennessee Solar Energy Association National Association of State Energy Officials North Carolina Solar Center National Renewable Energy Laboratory Solar Electric Power AssociationLow Impact Hydropower InstituteBiomass MagazineSolar Energy Industries Association (202-682-0556)

Note: The listings provided here are for informational purposes only. The listing of any group or organization is not to beconsidered as an endorsement by TVA. TVA assumes no responsibility for actions taken by the mentioned groups or organizations.

Be sure to call your local power company prior to purchasing and installing renewablegeneration.

How safe are these systems?

All interconnection and safety equipment must be tested by a Nationally RecognizedTesting Laboratory for continuous interactive operation with an electric distributionsystem in compliance with IEEE 1547 (Standard for Interconnecting DistributedResources with Electric Power Systems), IEEE 1547.1 (Standard Conformance TestProcedures for Equipment Interconnecting Distributed Resources with Electric Power Systems), and UL 1741 (Inverters, Converters, and Controllers for use in IndependentPower Systems). In addition, all systems must be manufactured and installed incompliance with the National Electric Code (NEC). Systems must be permitted andcertified by a licensed electrician along with passing all applicable code inspections.Having your system meet these national standards means that your system is very safe.In addition to these national standards, GPS Generation Partners requires an outsidelockable disconnect device that provides additional security and peace of mind in theevent of a power outage. The lockable disconnect device must be accessible bypersonnel from the local power company, who have the ability and authority to lock outthe power from the grid via the disconnect device. For more information about safety,see the following sites:

•

National Fire Protection Association

•

Underwriters Laboratories

•

Institute of Electrical and Electronics Engineers

•

Solar Electric Power Association

Do all power companies participate in the Generation Partners program?

Participation in the program is entirely at the discretion of the power company. Go to theParticipating Power Companiespage for more information. If your local power companyisn’t currently a participant in the program, let them know you are interested in installingrenewable generation at your home or business.