Project Sponsor Eligibility

Eligible Project Sponsors include:

• National or local energy service companies (ESCOs)
• Retail electricity providers (REPs)
• Individual customers that identify Curtailable Load in their own facilities

To ensure that the SOP incentive budget is allocated to projects that are likely to meet with success, all Project Sponsors will be required to demonstrate a commitment to fulfilling SOP objectives and competency in completing their proposed project. Project Sponsors may be required to submit information concerning their loads, operating characteristics, and experience as part of the application process. The forms and a complete description of the application requirements are found under Step One and Appendix A in the complete program manual.

Project and Site Eligibility

A project site is defined in the SOP as one or more metered locations having a minimum aggregated regular monthly demand of at least 750 kW, with estimated curtailable load (estimated kW demand savings) during the summer peak demand period of at least 100 kW per meter. A single Project site may include multiple buildings served by a single IDR meter, or Project Sponsors may include more than one project site in their applications provided each project site must meet the following requirements:

• Be a distribution level customer of CenterPoint Energy and/or a non-profit, governmental. or educational institution served by CenterPoint Energy.
  
  
• Provide total estimated demand savings of at least 100 kW during the summer peak demand period at each Project Site. For purposes of the Program, the summer peak demand period is defined as the hours between 1 p.m. and 7 p.m. Central Standard Time, on Monday through Friday during the months of May through September, excluding federal holidays.
  
  
• Be served by an Interval Data Recorder (IDR) that is monitored by CenterPoint Energy. If all buildings and meters are tied to one IDR, then they may be combined into a single project site. If the participating customer (Project Sponsor) has multiple meters that are not tied together, then CenterPoint Energy can aggregate them to the benefit of the customer.

Curtailable Load Eligibility

The SOP does not specify limits to the types of eligible Curtailable Load. This permits Project Sponsors flexibility in determining the level and method of curtailing loads. Curtailable loads must meet the following requirements:

• Curtailable Load must produce demand savings (reduction of electrical consumption) as the result of verified savings following a dispatched (noticed) curtailment.
  
  
• Curtailment must begin within one hour of notice, and last for the duration of the curtailment, not to exceed one hour for the Scheduled Curtailment and four hours for each Unscheduled Curtailment, at any time during the summer peak demand period (weekdays, 1-7 p.m., May through September).
  
  
• Project Sponsors must commit to making the Curtailable Load available for each Agreement year.
  
  
• Project Sponsors are solely responsible for assuring that contracts with retail electric providers permit participation.

The following Curtailable Load is excluded from consideration for this SOP:

• Curtailable Load that results in negative environmental or health effects.
  
  
• Curtailable Load that receives an incentive through any other energy efficiency program offered by CenterPoint Energy.
  
  
• Project incentives will be paid only for demand savings directly related to end-use equipment curtailed under the project.

Eligible Curtailable Load to be considered is load listed on the project application that will be available for curtailment. This may be entire building(s) and/or individual end-use equipment that consumes electric energy during the summer peak demand period. CenterPoint Energy will consider any and all Curtailable Load that consumes electrical energy for participation in the SOP.

It is the Customer's (or other Project Sponsor's) responsibility to identify the project and project sites, but CenterPoint Energy will provide advice concerning specific options and load curtailment opportunities upon request, at no direct charge to Proposers.

Standard Offer Program Review and Approval

All Standard Offer Programs are based on the general precept of a first-come, first-served basis, provided, however, that this does not limit the right or ability of CenterPoint Energy to move an application up or down the priority list based on the quality, amount, or type of curtailable load, and other factors such as the perceived likelihood of success or other such reasonable factors as may be applied. CenterPoint Energy will start accepting applications on February 11, 2008. Applications will continue to be accepted for the SOP until all funds have been committed. Projects on the waiting list which are not accepted in that program year, will not be carried over into the next program year, and must be resubmitted by the Project Sponsor.

Schedule and Program Timeline

Based on the anticipated release of final SOP rules by the Public Utility Commission of Texas (PUCT) on or around March 1, 2008, CenterPoint Energy's program timeline follows:

• January 2008: Publication of the Program Manual/Website Announcement
  
  
• February 4-8, 2008: Program Announcement Workshop (TBA)
  
  
• February 11, 2008: CenterPoint Energy Begins Accepting Proposals
  
  
• March 7, 2008: Close of Proposal (Application) Period
  
  
• March 15-April 1: Standard Offer Program Contract Offers Extended
  
  
• May 1-Sept 30, 2008: Standing Ready for Curtailment Notices (Participation Period)
  
  

These timelines and all other elements of the load management program are dependent on PUCT action on the final rules for PUCT Docket 33487. Current information will be posted and updated on the CenterPoint Energy efficiency website. Unless prohibited by PUCT rule, CenterPoint Energy will continue to process Applications and contract offers after May 1, 2008, if necessary in order to meet its stated program goals.