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AEP Texas Central Company (AEP TCC) Residential Air Conditioning Distributor Market Transformation Pilot - 2013

AEP Texas Central Company (AEP TCC) is implementing a limited-scale Residential Air Conditioning Distributor Pilot in 2013. 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 TCC under this Pilot.

Equipment Eligibility and Reporting Requirements


The following types of residential equipment qualify for incentives when installed in existing homes within the AEP TCC service territory. New construction installations are not eligible.

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 HVAC contractor must run an approved load calculation and retain it on file for three years. The contractor must also provide a valid meter number or ESI ID number as evidence that the home is within AEP TCCs service territory.

Distributor Incentive Awards


Distributors who are selected to participate will be approved for a maximum incentive amount, which will be held in reserve and then paid as qualifying systems are submitted and approved. The distributor must submit systems regularly throughout the year to meet the Programs Performance Milestone dates:

Milestone Date June 17, 2013 July 29, 2013 September 30, 2013 November 18, 2013

Percent of Systems Due 30% 30% 30% 10%

Each Performance Milestone goal will be subject to a use or lose requirement. At the end of each Milestone Period, any unused amounts for that Milestone will be removed from the distributors total funding award. Unused funds will be placed into a first-come, first-served fund which may then be awarded to any distributors who exhaust their initial funding. Distributors are encouraged to exceed the first three Performance Milestone dates by submitting systems as early and regularly as possible. Any amount submitted in excess of a Performance Milestone goal will count toward the next Milestone period.

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Incentive Levels
AEP TCCs incentive levels are based on the climate zone in which the qualifying system is installed. AEP TCCs service area is primarily Climate Zones 3 (South Region) and 4 (Valley Region, which includes Corpus Christi and Laredo). AEP TCC also serves two counties within Climate Zone 2 (Edwards and Real), which will be paid at the same incentive levels as for Climate Zone 3. Please refer to the attached list of counties served by AEP TCC in each climate zone. The entire AEP TCC service area is also shown in the attached map.

Incentive Levels: Climate Zone 3 (South Region) and Climate Zone 2


Residential replacement incentive amounts for central AC units vary, depending on equipment size and SEER rating, as shown in the table below.
AEP Texas Central 2013 AC Distributor Incentives - Climate Zone 3 Residential Replacement AC Systems SEER Range Size (tons) 14.5-14.99 15.0-15.99 16.0-16.99 17.0-17.99 18+ 1.5 $ 145 $ 167 $ 195 $ 249 $ 261 2 $ 192 $ 223 $ 262 $ 332 $ 351 2.5 $ 239 $ 279 $ 328 $ 416 $ 436 3 $ 290 $ 335 $ 394 $ 499 $ 522 3.5 $ 337 $ 390 $ 460 $ 582 $ 611 4 $ 384 $ 446 $ 527 $ 665 $ 697 5 $ 481 $ 557 $ 656 $ 831 $ 872

Residential replacement incentive amounts for heat pump units also vary according to equipment size and SEER rating:
AEP Texas Central 2013 AC Distributor Incentives - Climate Zone 3 Residential Replacement Heat Pump Systems SEER Range Size (tons) 14.5-14.99 15.0-15.99 16.0-16.99 17.0-17.99 18+ 1.5 $ 146 $ 172 $ 202 $ 214 $ 258 2 $ 193 $ 231 $ 268 $ 284 $ 343 2.5 $ 242 $ 286 $ 332 $ 355 $ 432 3 $ 288 $ 344 $ 399 $ 424 $ 517 3.5 $ 338 $ 402 $ 467 $ 497 $ 603 4 $ 384 $ 461 $ 534 $ 566 $ 691 5 $ 481 $ 575 $ 667 $ 711 $ 861

Heat pumps also qualify for an additional incentive amount that is based on unit size and HSPF rating:
AEP Texas Central Company 2013 Residential Air Conditioning Distributor Pilot Page 2

AEP Texas Central 2013 AC Distributor Incentives - Climate Zone 3 Residential Replacement Heat Pump Systems HSPF Range Size (tons) 8.2 - 8.3 8.4 - 8.5 8.6 - 8.7 8.8 - 8.9 9.0+ 1.5 $ 8 $ 10 $ 13 $ 16 $ 18 2 $ 10 $ 14 $ 17 $ 21 $ 24 2.5 $ 13 $ 17 $ 21 $ 26 $ 30 3 $ 15 $ 20 $ 26 $ 31 $ 36 3.5 $ 18 $ 24 $ 30 $ 36 $ 42 4 $ 20 $ 27 $ 34 $ 41 $ 48 5 $ 25 $ 34 $ 43 $ 51 $ 60

Incentive Levels: Climate Zone 4 (Valley Region)


Residential replacement incentive amounts for central AC units vary, depending on equipment size and SEER rating, as shown in the table below.
AEP Texas Central 2013 AC Distributor Incentives - Climate Zone 4 Residential Replacement AC Systems SEER Range Size (tons) 14.5-14.99 15.0-15.99 16.0-16.99 17.0-17.99 18+ 1.5 $ 159 $ 183 $ 218 $ 277 $ 290 2 $ 210 $ 247 $ 290 $ 368 $ 385 2.5 $ 261 $ 309 $ 359 $ 459 $ 482 3 $ 316 $ 370 $ 431 $ 551 $ 577 3.5 $ 368 $ 431 $ 503 $ 642 $ 674 4 $ 420 $ 492 $ 576 $ 733 $ 769 5 $ 526 $ 618 $ 721 $ 920 $ 961

Residential replacement incentive amounts for heat pump units also vary according to equipment size and SEER rating:
AEP Texas Central 2013 AC Distributor Incentives - Climate Zone 4 Residential Replacement Heat Pump Systems SEER Range Size (tons) 14.5-14.99 15.0-15.99 16.0-16.99 17.0-17.99 18+ 1.5 $ 159 $ 188 $ 222 $ 236 $ 288 2 $ 210 $ 252 $ 296 $ 316 $ 381 2.5 $ 264 $ 315 $ 370 $ 395 $ 478 3 $ 314 $ 379 $ 444 $ 472 $ 571 3.5 $ 368 $ 439 $ 515 $ 551 $ 668 4 $ 419 $ 504 $ 589 $ 631 $ 761 5 $ 524 $ 631 $ 736 $ 787 $ 951 .

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

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AEP Texas Central 2013 AC Distributor Incentives - Climate Zone 4 Residential Replacement Heat Pump Systems HSPF Range Size (tons) 8.2 - 8.3 8.4 - 8.5 8.6 - 8.7 8.8 - 8.9 9.0+ 1.5 $ 6 $ 8 $ 10 $ 12 $ 14 2 $ 8 $ 10 $ 13 $ 16 $ 18 2.5 $ 10 $ 13 $ 16 $ 20 $ 23 3 $ 12 $ 16 $ 20 $ 24 $ 27 3.5 $ 14 $ 18 $ 23 $ 28 $ 32 4 $ 15 $ 21 $ 26 $ 31 $ 37 5 $ 19 $ 26 $ 33 $ 39 $ 46

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 TCC 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 TCC online reporting system. Submit hard copies of all claim forms 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: Run an approved load calculation and retain it on file for three years. Submit a completed Incentive Claim Form and AHRI certificate to the distributor. Contractors must submit claims to the distributor in a timely manner so that the distributor can meet the 30-day reporting requirement.

AEP TCC will also implement a Small Commercial Air Conditioning Distributor Pilot in 2013. Please refer to the Small Commercial Pilot Overview for additional information on the incentives and requirements to participate in the small commercial market. For additional information, please contact Richard Necaise, ICF International at 469-467-4405 or richard.necaise@icfi.com.

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AEP Texas Central Company (AEP TCC): Counties Served


Counties Served All Zones, Listed Alphabetically County Zone Aransas 4 Atascosa 3 Bee 3 Brooks 4 Caldwell* 3 Calhoun 4 Cameron 4 Colorado* 3 DeWitt* 3 Dimmit 3 Duval 4 Edwards 2 Frio 3 Goliad 3 Gonzales* 3 Guadalupe* 3 Hidalgo 4 Jackson 3 Jim Hogg 3 Jim Wells 4 Karnes 3 Kenedy 4 Kinney 3 Kleberg 4 La Salle 3 Live Oak 3 Matagorda 3 Maverick 3 Medina* 3 McMullen* 3 Nueces 4 Real 2 Refugio 4 San Patricio 4 Starr 4 Uvalde 3 Val Verde 3 Victoria 3 Webb 4 Wharton* 3 Willacy 4 Wilson* 3 Zavala 3 Zapata 4

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All Climate Zone 2 & 3 Counties Served Listed by Zone Alphabetically County Zone Edwards 2 Real 2 Atascosa 3 Bee 3 Caldwell* 3 Colorado* 3 DeWitt* 3 Dimmit 3 Frio 3 Goliad 3 Gonzales* 3 Guadalupe* 3 Jackson 3 Jim Hogg 3 Karnes 3 Kinney 3 La Salle 3 Live Oak 3 Matagorda 3 Maverick 3 McMullen* 3 Medina* 3 Uvalde 3 Val Verde 3 Victoria 3 Wharton* 3 Wilson* 3 Zavala 3

All Climate Zone 4 Counties Served Listed Alphabetically County Zone Aransas 4 Brooks 4 Calhoun 4 Cameron 4 Duval 4 Hidalgo 4 Jim Wells 4 Kenedy 4 Kleberg 4 Nueces 4 Refugio 4 San Patricio 4 Starr 4 Webb 4 Willacy 4 Zapata 4

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Map of AEP Texas Central Company (AEP TCC) Service Area

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