1. www.SharylandEfficiency.com Sharyland Utilities’ 2014 Residential and Hard-to-Reach Standard Offer Program Workshop February 2014 Dial In: 877-783-2009 Passcode: 981535

2. www.SharylandEfficiency.com Webinar Instructions You can minimize the Webinar toolbar by selecting the red arrow button You can select the same button to make the toolbar appear again

3. www.SharylandEfficiency.com Webinar Instructions (Cont.) Attendees will be on mute during the call You can ask a question by utilizing the Question Box located on the Webinar toolbar

4. www.SharylandEfficiency.com Workshop Agenda Recap 2013 Challenges in 2013 2014 Program Details Key Program Changes for 2014 EnerTrek Changes for 2014 -10 Minute Break- Question & Answer Session

5. www.SharylandEfficiency.com Program Contacts Frontier Rita Saegert (512)372-8778 x 109 rsaegert@frontierassoc.com Kelly Bradford (512)372-8778 x 111 kbradford@frontierassoc.com Sharyland Bridget Headrick (512)721-2668 bheadrick@sharyland.com Alicia Rigler (512)721-2661 arigler@sharyland.com

6. www.SharylandEfficiency.com Recap 2013

7. www.SharylandEfficiency.com 2013 Program Results Summary ResidentialHard-to-ReachTotal Budget$125,000$100,000 $225,000 # Customers17156 227 # Installs277145 422 kW Savings115.82185.219 201.04 kWh Savings596,034406,925 1,002,959

8. www.SharylandEfficiency.com 2013 Program Challenges Customer Verification Process  Customers must be verified before implementation  Customer look up feature based on:  ESI ID Number – Mission area  Meter Number – Other areas  Input errors with Meter/account numbers Marketing  Residents remain uncertain about our efficiency programs  Customers needing service in underserved Sharyland territories Project Sponsors Missed Milestones (open pot)

9. www.SharylandEfficiency.com 2013 Program Challenges (cont.) Multi-family projects  Pre-inspections are required before approval Project must be submitted for approval in EnerTrek ®  Coordinate with program administrator Host Customer Must Sign All Required Documents  Submit all required documents via the document upload feature in EnerTrek ® Load Factor Cap Confusion  No load factor cap in 2014

10. www.SharylandEfficiency.com 2014 Program Details

11. www.SharylandEfficiency.com 2014 Program Funding ProgramBudget Residential$226,137 Hard-to-Reach$62,885 Total$289,022

12. www.SharylandEfficiency.com 2014 Program Incentive Rates Program$/kW$/kWh Residential – Standard Rates2780.10 Hard-to-Reach – Standard Rates4770.16

13. www.SharylandEfficiency.com Res & HTR Incentives Incentives are on a First Come – First Serve basis, no reservation required. Project Sponsors are limited to 20% of program budget. Incentives are paid directly to Project Sponsor. Project Sponsor is not required to pass any incentive payment to customer. PUCT requires the Project Sponsor to disclose that incentives are available “through a ratepayer funded program, manufacturers, or other entities.”

14. www.SharylandEfficiency.com Important Application Dates All Applications Open: Tuesday, February 4, 2014 @ 10 am Application Submissions: Tuesday, February 11, 2014  Residential Large @ 10 am  Hard-to-Reach Large @ 11 am Implementation Start Date: Tuesday, February 25, 2014 @ 10 am

15. www.SharylandEfficiency.com Project Sponsor Review Criteria Offering a comprehensive set of measures Serving a variety of counties Previous program experience  Inspection Results and Feedback  Customer Complaints  Timeliness in Reporting and Invoicing Installations

16. www.SharylandEfficiency.com Project Sponsor Requirements Insurance  Sharyland must be listed as additional insured  Subcontractors must also provide proof of insurance (no need for Sharyland as additional insured)  Refer to program agreements for details on required coverage All appropriate licenses/permits for DU and IN  HERS, PVT, HPP, or BPI certificate when Blower Door testing and Duct Blaster™ testing is required in 2014 Minimum of three references Technical capabilities and experience List of subcontractors and affiliations

17. www.SharylandEfficiency.com Project Sponsor Responsibilities Identify project opportunities Verify customer eligibility  Must receive Distribution service from Sharyland  Proposed measures cannot have been retrofitted in past 10 years  Homes newer than 5 years old will be reviewed Enter into an agreement with Host Customer and have them sign Host Customer Agreement and Customer Acknowledgement forms.

18. www.SharylandEfficiency.com Project Sponsor Responsibilities (cont.) Verbally inform customers about the inspection process and that they could be selected. HTR Specific Requirements:  Hard-to-Reach customers are defined as those customers with a total household income of less than 200% of current federal poverty guidelines.  HTR customers must fill out Income Eligibility Self Certification Form  HTR have to use the Multi-family Income Eligibility form for apartment complexes and other multi-family dwellings.

19. www.SharylandEfficiency.com EM&V Process PUCT is working with a third party evaluator Evaluator may contact you or your customers Continue to keep all customers forms and agreements for your records Evaluation results can impact future program approval decisions

20. www.SharylandEfficiency.com Key 2014 Changes

21. www.SharylandEfficiency.com Marketing Materials Review All marketing materials must be approved by Sharyland prior to beginning outreach  Submit all marketing materials for review to: rsaegert@frontierassoc.com

22. www.SharylandEfficiency.com Service Territory Maps Map PDFs available for download from program website Updated ZIP code list

23. www.SharylandEfficiency.com 2014 Key Changes Incentives on a First Come – First Serve basis, no reservation required Project Sponsors will be approved in both Res and HTR Leakage-to-Outside testing required for duct CFLs are no longer incentivized

24. www.SharylandEfficiency.com 2014 Key Changes (cont.) Must use standard document templates available at www.SharylandEfficiency.com Standardized Field Data Sheets required for all customers Deemed Savings Changes  Winter Peak kW savings  Technical Reference Manual (TRM)

25. www.SharylandEfficiency.com 2014 Key Changes (cont.) Homes that are built after 2008 will be reviewed Pre-Inspections are required for Multi-family projects No load factor cap will be enforced in 2014 ESI IDs assigned to all SU customers by May 2014

26. www.SharylandEfficiency.com 2014 EnerTrek Changes

27. www.SharylandEfficiency.com Key EnerTrek Changes Number of Bedrooms input required for Single & Multi-family projects Low-flow showerheads and faucet aerators measures added Deemed Savings helper online portal Multi-Family Customers Look Up Function  Must do ESI ID/Meter Number lookup for each MF unit  Submit any inactive ESI IDs to administrator via email Field Data Sheet must be provided before invoicing

28. www.SharylandEfficiency.com Document Upload Feature

29. www.SharylandEfficiency.com Project Sponsor - Application

30. www.SharylandEfficiency.com Project Sponsor – SF Customers

31. www.SharylandEfficiency.com Project Sponsor – MF Template

32. www.SharylandEfficiency.com Res & HTR Resources EnerTrek ® System Login: http://sharyland.tx.ressop.com/Login/Login.aspx Res Programs’ Information: http://www.sharylandefficiency.com/residential/overview.htm Downloads  SOP Agreement  Program Manual  EnerTrek User Guide  Host Customer Agreement  Customer Acknowledgement and Certificate (single and multi-family)  Income Verification Forms (single and multi-family)  Field Data Sheet  All Bills Paid Affidavit  Service Territory

33. www.SharylandEfficiency.com 10 Minute Break Use the webinar toolbar to ask questions.

34. www.SharylandEfficiency.com Question and Answer Session Use the webinar toolbar to ask questions.