STANDARD OFFER PROGRAM 2012 WORKSHOP RESIDENTIAL & HARD TO REACH

WELCOME & INTRODUCTION  CHARLIE FLYNN ◦ DIRECTOR, ENERGY EFFICIENCY  JARRETT SIMON ◦ MANAGER, PROGRAM IMPLEMENTATION  YOLANDA SLADE/SHEA RICHARDSON ◦ PROGRAM MANAGER, STANDARD OFFER PROGRAMS  ROXANNE MCFARLAND ◦ ADMINISTRATION, RESIDENTIAL STANDARD OFFER PROGRAMS

AGENDA  2011 PROGRAM SUMMARY  2012 PROGRAM OVERVIEW  PROGRAM DESCRIPTIONS ˚ RESIDENTIAL ˚ HARD TO REACH  SUPPLIER DIVERSITY  SOP DATABASE  Q&A  DRAWING  LUNCH

2011 PROGRAM SUMMARY  YTD RESULTS ◦ 6,323 TOTAL INSTALLS ◦ 2,587 TOTAL KW SAVED ◦ 6,242,476 TOTAL KWH SAVED ◦ $2,191,350 INCENTIVE DOLLARS  EOY GOALS ◦ 3500 KW ◦ 7,000,000 KWH ◦ $2,750,000 INCENTIVE

2011 PROGRAM SUMMARY  HTR YTD RESULTS ◦ 1650 CUSTOMERS ◦ 3563 INSTALLS ◦ 1323 KW SAVED ◦ 3,045,244 KWH SAVED ◦ $1,266,539 INCENTIVES  EOY GOALS ◦ 1,790 KW ◦ 4,731,000 KWH ◦ $1,650,000 INCENTIVE  RES YTD RESULTS ◦ 514 CUSTOMERS ◦ 1032 INSTALLS ◦ 392 KW SAVED ◦ 868,025 KWH SAVED ◦ $216,959 INCENTIVES  EOY GOALS ◦ 1,130 KW ◦ 2,826,000 KWH ◦ $600,000 INCENTIVE

2012 OVERVIEW  STANDARD OFFER PROGRAM ˚ FIRST COME / FIRST SERVED  INCENTIVE DOLLARS DIVIDED INTO 3 CATEGORIES  INTERNET APPLICATION ONLY  PARTICIPATION LEVELS ˚ ONE INCENTIVE BUCKET FOR EACH CATEGORY  RES  HTR  ASF

STANDARD OFFER PROGRAM  CNP PROVIDES A SET INCENTIVE PAYMENT TO PROJECT SPONSORS FOR EACH KW AND KWH SAVED ◦ PROJECT SPONSORS AGREE TO DELIVER A STIPULATED AMOUNT OF KW AND KWH SAVINGS ◦ ALL PAYMENTS ARE BASED SOLELY UPON KW AND ANNUAL KWH SAVINGS ◦ EMPHASIS PLACED ON PEAK SUMMER DEMAND SAVINGS ◦ MEASURES MUST EXCEED CURRENT FEDERAL MINIMUM EFFICIENCY STANDARD

PROGRAM ROLES  PROGRAM ADMINISTRATOR  PROJECT SPONSOR  CUSTOMER

PROGRAM ADMINISTRATOR - CENTERPOINT ENERGY  OVERSEE THAT PROGRAMS FOLLOW PUCT RULES  ADJUST PROGRAM BUDGETS AS NEEDED  REVIEW, APPROVE OR REJECT PROGRAM APPLICATIONS  VERIFY AND INSPECT THAT MEASURES MEET INTENDED PURPOSE  ADMINISTER INCENTIVE DOLLARS

PROJECT SPONSOR  IDENTIFY PROJECT OPPORTUNITIES ◦ ACCURATELY IDENTIFIES ENERGY EFFICIENCY MEASURES TO BE INSTALLED ◦ MARKETING  VERIFY CUSTOMER ELIGIBILITY ◦ CUSTOMER IN CNP ELECTRIC SERVICE TERRITORY ◦ HTR CUSTOMERS’ ELIGIBILITY VERIFIED ACCORDING TO PUCT-APPROVED PROCEDURES  INSTALL AND DOCUMENT ENERGY SAVINGS

PROJECT SPONSOR REQUIREMENTS (CONT.)  PROJECT SPONSORS MUST HAVE: ◦ ALL APPROPRIATE LICENSES/CERTIFICATIONS ◦ EVIDENCE OF TECHNICAL AND MANAGERIAL CAPABILITIES AND EXPERIENCE ◦ EVIDENCE OF FINANCIAL CAPABILITY ◦ ADEQUATE INSURANCE ◦ REFERENCES

CUSTOMER  CUSTOMER ELIGIBILITY: ◦ RESIDENTIAL  CNP ELECTRIC DISTRIBUTION CUSTOMER  CUSTOMER MAY PURCHASE ELECTRICITY FROM ANY SUPPLIER ◦ MULTI-FAMILY  INDIVIDUALLY METERED UNITS ◦ AFFORDABLE SINGLE FAMILY  TARGET LOW INCOME MARKET  SIGNS ACKNOWLEDGMENT FORM

CUSTOMER ELIGIBILITY HARD-TO-REACH CUSTOMERS ARE DEFINED AS RESIDENTIAL CUSTOMERS WHO HAVE HOUSEHOLD INCOME AT OR BELOW 200% OF FEDERAL POVERTY GUIDELINES.

HARD TO REACH INCOME ELIGIBILITY SIZE OF FAMILYANNUAL INCOME 1$21,780 2$29,420 3$37,060 4$44,700 5$52,340 6$59,980 7$67,620 8$75,260 Each additional person:$7,640 * INCOME GUIDELINES UPDATED EVERY APRIL

2012 RESIDENTIAL  SINGLE-FAMILY / MANUFACTURED HOMES  RETROFIT  NO SHOWERHEADS  NO SOLAR SCREENS  MULTI-FAMILY  RETROFIT  DEEMED SAVINGS  SIMPLIFIED M&V  M&V

2012 HARD-TO-REACH  RETROFIT  SINGLE-FAMILY / MULTI-FAMILY  REQUIRES AN ENVELOPE MEASURE: ˚AIR INFILTRATION ˚CEILING INSULATION ˚WALL INSULATION ˚FLOOR INSULATION ˚DUCT SEALING  DEEMED SAVINGS ONLY  NEW CONSTUCTION ˚ AFFORDABLE SINGLE FAMILY

2012 HARD-TO-REACH (CONT.)  IF HOME QUALIFIES FOR ANY ENVELOPE MEASURE; THE FOLLOWING MEASURES ARE ALLOWED: ◦ SCREW IN CFL’S ◦ SOLAR SCREENS ◦ WINDOW A/C’S ◦ LOW FLOW SHOWERHEADS

HTR COMPREHENSIVENESS  TESTING ◦ PRE & POST TESTING  DUCT EFFICIENCY  AIR INFILTRATION ◦ CARBON MONOXIDE  HOMES WITH COMBUSTION EQUIPMENT EQUIPMENT MUST BE ON AND OPERATIONAL IN ORDER TO COMPLETE ACCEPTABLE CO TEST

AFFORDABLE SINGLE-FAMILY NEW CONSTRUCTION  IN ORDER TO QUALIFY, THE HOME MUST: ◦ BE CONSTRUCTED TO MEET ENERGY STAR® STANDARDS, AS CERTIFIED BY A QUALIFIED HOME ENERGY RATER, AND ◦ TARGET POPULATIONS WITH INCOMES AT OR BELOW HTR INCOME GUIDELINES ◦ INCENTIVES ARE BASED ON PER-HOME KW AND KWH SAVINGS ESTIMATES DERIVED FROM CNP’S ENERGY STAR® NEW HOME PROGRAM

AFFORDABLE SINGLE-FAMILY NEW CONSTRUCTION  IF CONSTRUCTED UNDER THE FOLLOWING: ◦ HABITAT FOR HUMANITY ◦ HOME ◦ CDC ◦ HOUSING TRUST FUNDS (STATE OR LOCAL)

APPLICATION FORMS  THE FOLLOWING INFORMATION MUST BE SUBMITTED AS PART OF THE APPLICATION PROCESS: ◦ PROJECT SPONSOR INFORMATION ◦ PROJECT DESCRIPTION ◦ ESTIMATED IMPACTS ◦ MARKETING PLAN ◦ PROJECT SPONSOR’S QUALIFICATIONS ◦ PROOF OF ADEQUATE INSURANCE ◦ REFERENCES

PROGRAM PROCESS  APPLICATION MADE BY SPONSOR  REVIEW BY CNP  COMPLETE WORK MANAGEMENT SCHEDULE  INSTALLATION OF MEASURES BY SPONSOR  MEASURES INSPECTED BY CNP/DESIGNEE  PAYMENT MADE TO SPONSOR

PROJECT PROCESS  PROCESS: ◦ SUBMIT SIGNED CONTRACT (IF NECESSARY) ◦ COMPLETE NECESSARY PAPERWORK AND INSURANCE REQUIREMENTS ◦ SET MILESTONE DATES:  25% BY APRIL 5, 2012  50% BY JUNE 5, 2012  75% BY SEPTEMBER 5, 2012

SOP PROGRAM INCENTIVES  ALL INCENTIVES ARE PAID DIRECTLY TO PROJECT SPONSOR, NOT THE CUSTOMER.  PROJECT SPONSOR IS NOT REQUIRED TO PASS ANY INCENTIVE PAYMENT TO CUSTOMER.  PUCT REQUIRES THAT THE HOST CUSTOMER AGREEMENT DISCLOSE THAT INCENTIVES ARE BEING MADE AVAILABLE TO THE PROJECT SPONSOR “THROUGH A RATEPAYER-FUNDED PROGRAM, MANUFACTURERS, OR OTHER ENTITIES.”

PAYMENT PROCEDURES  PROJECT SPONSORS SHOULD SUBMIT INVOICE VIA DATABASE BY LAST DAY OF EACH MONTH ◦ MAILED HARD COPIES SHOULD BE POSTMARKED NO LATER THAN 5 TH OF FOLLOWING MONTH  CNP/DESIGNEE WILL INSPECT A RANDOM SAMPLE OF MEASURE INSTALLATIONS. INCENTIVE PAYMENTS MAY BE ADJUSTED BASED ON INSPECTION RESULTS.  FOR DEEMED SAVINGS OPTION, CNP/DESIGNEE PERFORMS INSPECTIONS, AND PAYS WITHIN 45 DAYS, PROVIDING INVOICE IS COMPLETE AND CORRECT.

2011 CONCERNS 2011 PROGRAM CONCERNS  SPONSOR MUST HAVE CLEARLY MARKED VEHICLES AND EMPLOYEE IDENTIFICATION  INACCURATE PRE ASSESSMENTS, IE ATTIC INSULATION  NO “DO OVERS”, ALL INSPECTION FINDINGS ARE FINAL  HARRISBURG SERVICE CENTER IS DELIVERY SITE FOR SHOWERHEADS  MISSING 5 DAY WINDOW FOR INVOICE CORRECTIONS  CUSTOMERS NOT ALLOWING CNP INSPECTION TEAM ACCESS TO HOME  CASTING CNP IN A NEGATIVE LIGHT

CONTINUING FOR 2012  PROGRAM MANUALS ARE AVAILABLE FOR DOWNLOAD VIA INTERNET  PROGRAM OUTLINE AND PRESENTATION ARE AVAILABLE FOR DOWNLOAD VIA INTERNET  COMPLIANCE MEETING WILL BE HELD DECEMBER 15, 2011  CERTIFIED HERS RATER REQUIRED TO IMPLEMENT DUCT AND AIR INFILTRATION MEASURES

CONTINUING FOR 2012  EXCESS OF 3 FAILURES FOR SAME MEASURE WILL RESULT IN SUSPENSION OF FAILED MEASURE UNTIL FURTHER NOTICE ◦ INCLUDING SUB-CONTRACTORS  INCENTIVE RATE CHANGES ON SELECTED MEASURES  NEW HOMES BUILT 2002 OR LATER ARE NOT ELIGIBLE FOR INCENTIVE  ENERGY STAR HOMES NOT ELIGIBLE FOR ENVELOPE MEASURES

CHANGES FOR 2012  NEW HTR PROGRAM MANAGER: SHEA RICHARDSON  LARGE & SMALL PROJECT DESIGNATIONS WILL BE ELIMINATED  MONTHLY MINIMUM & MAXIMUM INVOICES ◦ HTR - $5,000 ◦ RES – $2,500  MILESTONES WILL BE ASSESSED ON A QUARTERLY BASIS

CHANGES FOR 2012 (CONT.)  NO FUNDING RESERVATION FOR SPONSORS  PROJECT SPONSORS MAY SUBCONTRACT FOR NO MORE THAN 5 COMPANIES  IF YOUR COMPANY HAS A SUBCONTRACTOR, YOU MAY NOT SUBCONTRACT FOR ANY OTHER COMPANY  ALL INSTALLATIONS MUST BE INVOICED NO LATER THAN 30 DAYS AFTER COMPLETION  ALL WORK MUST BE SCHEDULED DURING STANDARD BUSINESS HOURS (M-F 8-5PM) NO WEEKEND WORK

CHANGES FOR 2012 (CONT.)  DUCT EFFICIENCY TESTING METHOD MUST BE STATED IN PROJECT APPLICATION  REFER TO INSTALLATION STANDARDS FOR DUCT EFFICIENCY TESTING METHOD (SEE APPENDIX B)  INCENTIVE RATE CHANGES (CFL/DUCT EFFICIENCY)  CFL MAXIMUM OF 15 PER HOME

RES INCENTIVE RATES Residential Standard Offer RatesDemand (kW)Energy (kW) Standard (all other measures) $265$0.091 Ceiling Insulation$500$0.20 Compact Fluorescent Lamps $135$0.05 Central AC and HP Replacements $477$0.16 Window AC Replacement Only $494$0.33 Window AC Replacement + Duct Sealing $477$0.284

HTR INCENTIVE RATES Hard-to-Reach Incentive RatesDemand (kW)Energy (kWh) Standard (all other measures)$477$0.16 Ceiling Insulation$519$0.35 Duct Sealing$395$0.14 Compact Fluorescent Lamps$240$0.08 Central AC and HP Replacements $519$0.35 Window AC Replacement Only $519$0.35 Window AC Replacement + Duct Sealing $500$0.300 Affordable Single Family Construction $500$0.20

PROGRAM REMINDERS  FOR ALL INVOICE DISCREPANCIES, PROJECT SPONSOR SHALL HAVE 5 BUSINESS DAYS TO SUBMIT CORRECTION ˚ FAILURE TO DO SO, WILL RESULT IN EXCLUSION OF THAT CUSTOMER  HARD COPIES OF THE INVOICE MUST BE POSTMARKED OR DELIVERED TO CNP OFFICE NO LATER THAN THE 5 TH OF THE INVOICE MONTH  SUBMIT INVOICE REPORT PAGE FROM DATABASE WITH INVOICE ˚ CUSTOMERS SHOULD BE PLACED IN ORDER AS THEY APPEAR ON INVOICE PAGE

PROGRAM REMINDERS (CONT.)  MANDATORY DATABASE SCHEDULING  HOMES WITH WINDOW UNITS ARE NOT ELIGIBLE FOR DUCT EFFICIENCY, UNLESS REPLACED WITH ENERGY STAR UNIT  MUST PERFORM “WHOLE HOUSE” APPROACH; IE ALL STORIES

PROGRAM REMINDERS (CONT.)  FURNACE MUST BE ON & OPERATIONAL TO CONDUCT PROPER CO TEST  INFORM CUSTOMER THAT CNP MAY DO FIELD INSPECTION, IF CNP CANNOT GAIN ACCESS, IT BECOMES THE PROJECT SPONSORS RESPONSIBILTY TO GET PERMISSION, IF NOT, THAT HOME WILL BE COUNTED AS AN INSPECTION FAILURE  FILL-INS ARE ONLY ELIGIBLE ON DAYS WHEN WORK IS PREVIOUSLY SCHEDULED, CANNOT INCLUDE A FILL-IN ON A NON WORK DAY

PROGRAM WEBSITES  PROGRAM WEB SITE HAS: ◦ PROGRAM ANNOUNCEMENTS ◦ PROGRAM MANUALS FOR DOWNLOAD ◦ HELPER APPLICATIONS ◦ FAQS ◦ INFORMATION ON AVAILABLE FUNDING ◦ PROGRAM CONTACTS AND LINKS 

2012 PROGRAM BUDGETS  RES ˚RETROFITS  $500,000  HTR ˚RETROFITS  $1,700,000 ˚AFFORDABLE SINGLE FAMILY  $50,000

2011PROGRAM TIMELINE  JUNE 5 TH, 50% MILESTONE ◦ 80% SPONSORS MET/EXCEED GOAL  SEPTEMBER 5 TH, 80% MILESTONE ◦ 90% SPONSORS MET/EXCEED GOAL  NOVEMBER 18, 2011 ◦ LAST WORK DAY  NOVEMBER 30, 2011 ◦ FINAL INVOICE DUE TO CNP OFFICES

2012 PROGRAM TIMELINE  2012 HTR APPLICATIONS ˚OPEN NOV. 10TH, SUBMIT NOV AM, CST AFFORDABLE SINGLE FAMILY, 2PM 11/18  2012 RES APPLICATIONS ˚OPEN NOV. 10TH, SUBMIT NOV. 17 2PM, CST  COMPLIANCE WORKSHOP ˚ DEC. 15, 2011  JANUARY 2, 2012 ˚FIRST WORK DAY FOR 2012 SPONSORS

2012 PROGRAM TIMELINE (CONT.)  APRIL 5, 2012 ◦ 25% MILESTONE  JUNE 5, 2012 ◦ 50% MILESTONE  SEPTEMBER 5, 2012 ◦ 75% MILESTONE  NOVEMBER 16, 2012 ◦ LAST WORK DAY  NOVEMBER 30, 2011 ◦ FINAL INVOICE DUE TO CNP OFFICE

SUPPLIER DIVERSITY SUPPLIER DIVERSITY

SUPPLIER DIVERSITY POLICY STATEMENT  CENTERPOINT ENERGY, INC. RECOGNIZES THE IMPORTANCE OF MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES (MWBE) TO THE ECONOMIES OF THE NATION, THE STATE, AND THE COMMUNITIES IT SERVES, AS WELL AS THE CORPORATION ITSELF.  THEREFORE, WE ARE COMMITTED TO PURSUING BUSINESS RELATIONSHIPS WITH SUCH ENTERPRISES AND USING INNOVATIVE APPROACHES DESIGNED TO CONTINUALLY IMPROVE BUSINESS OPPORTUNITIES.

SUPPLIER DIVERSITY SUPPLIER DIVERSITY CENTERPOINT ENERGY JEWEL SMITH, MANAGER OF SUPPLIER DIVERSITY (713) ; STEVE DUKES, SUPPLIER DIVERSITY COORDINATOR (713) ; HOUSTON MINORITY BUSINESS COUNCIL CONSTANCE JONES (713)271–7805; WOMEN’S BUSINESS ENTERPRISE ALLIANCE SUSAN REPKA (713)681–9232;

CONTRACTING PROCESS  SUPPLIER REGISTRATION - NEW VENDORS  PROGRAM APPLICATION & APPROVAL  INTERNAL REQUISITION SUBMITTED & APPROVED  SUPPLIER & VENDOR NUMBER VERIFIED  CREATE CONTRACT DOCUMENTS  STANDARD TERMS AND CONDITIONS  CONTRACT EXECUTION  PROJECT COMPLETION/VERIFICATION  INVOICE & PAYMENT

NEW VENDORS  SUPPLIER REGISTRATION ◦ CONTACT/SUPPLIERS CONTACT/SUPPLIERS  VENDOR REGISTRATION ◦ IRS FORM W-9 (EMPLOYER IDENTIFICATION NO.) ◦ ELECTRONIC FUNDS TRANSFER AUTHORIZATION ◦ EID AND EFT INFORMATION IS VERIFIED BY A.P.

DATABASE UPDATES MONITORED BY: FRONTIER ASSOCIATES

REGISTER AS A NEW USER

REGISTRATION FORM

APPLICATION LANDING PAGE

SUBMIT AN APPLICATION  ALL APPLICATIONS SHOULD BE COMPLETE AND ACCURATE AND READY TO BE SUBMITTED ONE DAY PRIOR TO THE PROGRAM SUBMIT DATE.  YOUR APPLICATION WILL BE AVAILABLE FOR EDITING UP UNTIL THE TIME THE APPLICATION CAN BE SUBMITTED.

SUBMIT AN APPLICATION On the designated submit day, the “Submit” button for that program will become active after refreshing the screen at the program submit time.

RANDOM 4-DIGIT NUMBER 1. Enter the random 4-digit number as displayed on the screen in the box provided. 2. Click on the “Submit Application” button. This submits the application.

2012 DATABASE NAVIGATION Navigation Menu

NEW FEATURES IN 2012  DOCUMENT UPLOAD FEATURE  CEILING INSULATION R-VALUE CALCULATOR  MILESTONE REMINDERS

DOCUMENT UPLOAD FEATURE - UPLOAD SPONSOR DOCUMENTS

DOCUMENT UPLOAD FEATURE –SPONSOR DOCUMENTS

DOCUMENT UPLOAD FEATURE – UPLOAD CUSTOMER DOCUMENTS

DOCUMENT UPLOAD FEATURE

CEILING INSULATION R- VALUE CALCULATOR

2012 DUCT EFFICIENCY TOOL CHANGES  NEW BUILDING TYPE ◦ “MULTI-FAMILY, SINGLE STORY” OPTION  NEW AIR HANDLER LOCATION ◦ SEMI-CONDITIONED SPACE

ENERTREK CONTACTS LANI CLARK KYLE CAFFEY

QUESTIONS?

DOOR PRIZES

CONTACT INFORMATION  YOLANDA SLADE o PHONE: o –  SHEA RICHARDSON o PHONE: o –  ROXANNE MCFARLAND o PHONE: o –  WEBSITE: o