STANDARD OFFER PROGRAM 2012 WORKSHOP

1. STANDARD OFFER PROGRAM 2012 WORKSHOP RESIDENTIAL & HARD TO REACH

2. 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

3. AGENDA • 2011 PROGRAM SUMMARY • 2012 Program Overview • PROGRAM DESCRIPTIONS • RESIDENTIAL • HARD TO REACH • Supplier diversity • SOP DATABASE • Q&A • DRAWING • LUNCH

4. 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

5. 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

6. 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

7. 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

8. PROGRAM ROLES • PROGRAM ADMINISTRATOR • PROJECT SPONSOR • CUSTOMER

9. 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

10. 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

11. 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

12. 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

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

14. HARD TO REACH INCOME ELIGIBILITY *INCOME GUIDELINES UPDATED EVERY APRIL

15. 2012 RESIDENTIAL • SINGLE-FAMILY / MANUFACTURED HOMES • RETROFIT • NO SHOWERHEADS • NO SOLAR SCREENS • MULTI-FAMILY • RETROFIT • DEEMED SAVINGS • SIMPLIFIED M&V • M&V

16. 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

17. 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

18. 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

19. 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

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

21. 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

22. 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

23. 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

24. 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.”

25. PAYMENT PROCEDURES • PROJECT SPONSORS SHOULD SUBMIT INVOICE VIA DATABASE BY LAST DAY OF EACH MONTH • MAILED HARD COPIES SHOULD BE POSTMARKED NO LATER THAN 5TH 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.

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. RES Incentive Rates

33. HTR Incentive Rates

34. 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 5TH OF THE INVOICE MONTH • SUBMIT INVOICE REPORT PAGE FROM DATABASE WITH INVOICE • CUSTOMERS SHOULD BE PLACED IN ORDER AS THEY APPEAR ON INVOICE PAGE

35. 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

36. 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

37. PROGRAM WEBSITES • PROGRAM WEB SITE HAS: • PROGRAM ANNOUNCEMENTS • PROGRAM MANUALS FOR DOWNLOAD • HELPER APPLICATIONS • FAQS • INFORMATION ON AVAILABLE FUNDING • PROGRAM CONTACTS AND LINKS • www.centerpointefficiency.com

38. 2012 PROGRAM BUDGETS • RES • Retrofits • $500,000 • HTR • Retrofits • $1,700,000 • Affordable Single Family • $50,000

39. 2011PROGRAM TIMELINE • JUNE 5TH, 50% MILESTONE • 80% SPONSORS MET/EXCEED GOAL • SEPTEMBER 5TH, 80% MILESTONE • 90% SPONSORS MET/EXCEED GOAL • NOVEMBER 18, 2011 • LAST WORK DAY • NOVEMBER 30, 2011 • FINAL INVOICE DUE TO CNP OFFICES

40. 2012 PROGRAM TIMELINE • 2012 HTR APPLICATIONS • OPEN NOV. 10TH, SUBMIT NOV. 17TH @ 10AM, CST • AFFORDABLE SINGLE FAMILY, SUBMIT @ 2PM 11/18 • 2012 RES APPLICATIONS • OPEN NOV. 10TH, SUBMIT NOV. 17TH @ 2PM, CST • COMPLIANCE WORKSHOP • DEC. 15, 2011 • JANUARY 2, 2012 • FIRST WORK DAY FOR 2012 SPONSORS

41. 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

42. SUPPLIER DIVERSITY

43. 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.

44. SUPPLIER DIVERSITY CENTERPOINT ENERGY JEWEL SMITH, MANAGER OF SUPPLIER DIVERSITY (713)207- 6951; JEWEL.SMITH@CENTERPOINTENERGY.COM STEVE DUKES, SUPPLIER DIVERSITY COORDINATOR (713)207- 3388; STEVE.DUKES@CENTERPOINTENERGY.COM HOUSTON MINORITY BUSINESS COUNCIL CONSTANCE JONES (713)271–7805; WWW.HMBC.ORG WOMEN’S BUSINESS ENTERPRISE ALLIANCE SUSAN REPKA (713)681–9232; SREPKA@WBEA-TEXAS.ORG

45. 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

46. NEW Vendors • Supplier Registration • www.centerpointenergy.com/about/contact/suppliers • Vendor Registration • IRS Form w-9 (Employer Identification NO.) • Electronic Funds Transfer Authorization • EID and EFT Information is verified by A.P.

47. DATABASE UPDATES MONITORED BY: FRONTIER ASSOCIATES

48. Register as a New User

49. Registration Form

50. Application Landing Page