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AEP Texas North Company (AEP TNC) Residential Air Conditioning Distributor Market Transformation Pilot - 2013

AEP Texas North (AEP TNC) 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 TNC under this Pilot.

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 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 TNCs 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 in order 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: Residential Replacement


Residential replacement incentive amounts for central AC units vary, depending on equipment size and SEER rating, as shown in the table below
AEP Texas North 2013 AC Distributor Incentives Residential Replacement AC Systems SEER Range Size (tons) 14.5-14.99 15.0-15.99 16.0-16.99 17.0-17.99 1.5 $ 133 $ 157 $ 188 $ 228 2 $ 178 $ 206 $ 247 $ 306 2.5 $ 223 $ 258 $ 309 $ 380 3 $ 268 $ 310 $ 372 $ 458 3.5 $ 311 $ 362 $ 434 $ 533 4 $ 356 $ 415 $ 497 $ 611 5 $ 446 $ 516 $ 620 $ 764

$ $ $ $ $ $ $

18+ 237 317 394 475 555 631 791

Residential replacement incentive amounts for heat pump units also vary according to equipment size and SEER rating:
AEP Texas North 2013 AC Distributor Incentives 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 1.5 $ 139 $ 163 $ 185 $ 194 2 $ 183 $ 215 $ 248 $ 258 2.5 $ 231 $ 270 $ 310 $ 322 3 $ 274 $ 322 $ 373 $ 390 3.5 $ 321 $ 377 $ 436 $ 454 4 $ 366 $ 429 $ 499 $ 518 5 $ 458 $ 540 $ 621 $ 648

$ $ $ $ $ $ $

18+ 236 315 395 471 551 631 786

. Heat pumps also qualify for an additional incentive amount that is based on unit size and HSPF rating:
AEP Texas North 2013 AC Distributor Incentives 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 $ 13 $ 18 $ 22 $ 27 $ 31 2 $ 18 $ 24 $ 30 $ 36 $ 42 2.5 $ 22 $ 30 $ 37 $ 45 $ 52 3 $ 26 $ 36 $ 45 $ 54 $ 63 3.5 $ 31 $ 42 $ 52 $ 63 $ 73 4 $ 35 $ 48 $ 60 $ 72 $ 84 5 $ 44 $ 59 $ 75 $ 90 $ 105

Incentive Levels: Residential New Construction


AEP Texas North Company (AEP TNC) 2013 Residential Air Conditioning Distributor Pilot Page 2

Residential new construction incentive amounts for central AC units vary, depending on equipment size and SEER rating, as shown in the table below.
AEP Texas North 2013 AC Distributor Incentives Residential New Construction AC Systems SEER Range Size (tons) 14.5-14.99 15.0-15.99 16.0-16.99 17.0-17.99 1.5 $ 95 $ 117 $ 148 $ 191 2 $ 127 $ 154 $ 196 $ 254 2.5 $ 159 $ 194 $ 246 $ 317 3 $ 188 $ 231 $ 293 $ 379 3.5 $ 220 $ 271 $ 343 $ 442 4 $ 253 $ 308 $ 391 $ 504 5 $ 315 $ 385 $ 489 $ 633

$ $ $ $ $ $ $

18+ 197 262 330 395 459 528 657

Residential new construction incentive amounts for heat pump units also vary according to equipment size and SEER rating:
AEP Texas North 2013 AC Distributor Incentives Residential New Construction Heat Pump Systems SEER Range Size (tons) 14.5-14.99 15.0-15.99 16.0-16.99 17.0-17.99 1.5 $ 100 $ 123 $ 149 $ 154 2 $ 131 $ 163 $ 197 $ 207 2.5 $ 164 $ 203 $ 247 $ 259 3 $ 196 $ 247 $ 295 $ 311 3.5 $ 231 $ 286 $ 346 $ 364 4 $ 264 $ 327 $ 393 $ 413 5 $ 328 $ 410 $ 491 $ 518

$ $ $ $ $ $ $

18+ 196 264 328 395 460 525 657

Heat pumps also qualify for an additional incentive amount that is based on unit size and HSPF rating:
AEP Texas North 2013 AC Distributor Incentives Residential New Construction 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 $ 13 $ 18 $ 22 $ 27 $ 31 2 $ 18 $ 24 $ 30 $ 36 $ 42 2.5 $ 22 $ 30 $ 37 $ 45 $ 52 3 $ 26 $ 36 $ 45 $ 54 $ 63 3.5 $ 31 $ 42 $ 52 $ 63 $ 73 4 $ 35 $ 48 $ 60 $ 72 $ 84 5 $ 44 $ 59 $ 75 $ 90 $ 105

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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 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 the completed Incentive Claim Form 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 Richard Necaise, ICF International at 469-467-4405 or richard.necaise@icfi.com.

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AEP Texas North Company (AEP TNC): Counties Served


Counties Served All Zones Listed Alphabetically Zone County 2 Jones 2 Kent 1 Kimble 2 King 2 Knox 1 Mason 2 McCullough 2 Menard 2 Motley 1 Nolan 2 Pecos 2 Presidio 1 Reagan 2 Reeves 2 Runnels 2 Schleicher 1 Shackelford 2 Stephens 1 Sterling 1 Stonewall 2 Sutton 2 Taylor 2 Throckmorton Tom Green Upton Wheeler Wilbarger

County Baylor Brewster Briscoe Brown Callahan Childress Coke Coleman Concho Cottle Crane Crockett Dickens Eastland Edwards Fisher Foard Gillespie Hall Hardeman Haskell Irion Jeff Davis

Zone 2 1 2 1 1 2 2 2 1 2 2 2 2 2 2 2 2 2 2 1 2 2 2 2 2 1 1

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

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