The 2008 CenterPoint Energy Services "Energy Share" Load Management Standard Offer Program was developed to pay incentives to participating Project Sponsors (customers and/or energy service companies) for curtailment of electric consumption on short notice during peak demand periods. Incentives are based on verified demand savings that occur at CenterPoint Energy distribution or eligible institutional customer's site as a result of an interruption.

The CenterPoint Energy Load Management Standard Offer Program is essentially a "first-come, first-served" program offering significant cash payments to its qualifying commercial, non-profit, and institutional customers. CenterPoint Energy will begin accepting applications (date and time to be announced) for annually-renewable participation that potentially could go on for up to 10 years.

Participation

Participation is a Five-Step Process described in detail in the Program Manual. The five steps are (1) Application, (2) Contracting, (3) Performance (4) Monitoring and Verification, and (5) Payment of Incentives to the Project Sponsor.

Requirements

The Load Management Program is a good-faith agreement between the Project Sponsor (customer or its sponsoring energy services company) and CenterPoint Energy. The Program:

• Requires the participating entities to curtail agreed-upon loads for up to 4 hours, four times per year, plus one hour each year to verify load availability (a total of 17 hours per year, maximum). The contract will automatically renew each year unless terminated by either party (without penalty).
• Is designed to reduce kW use during peak demand periods, defined as 1-7 p.m., weekdays, May through September.
• Is a performance-based program that offers attractive incentive payments to the Project Sponsor (customer, energy services company, etc.) for curtailing electric load on notice
• Provides a valuable assist to load control initiated by ERCOT (Level 3 service interruptions)

Eligible Participants

• Are required to have a normal aggregate peak demand of 750 kW or greater, with each participating site having at least 250 kW normal peak demand and capable of curtailing at least 100 kW.
• Must be equipped with Interval Data Recorder meter.
• Must be a non-residential customer taking service at the distribution level, and/or be a non-profit customer or government entity, including educational institutions.

Custmer Commitments

Participating customers agree to a one-year commitment, but there are no penalties if customers opt out of the program at an earlier time. By its participation, the commercial/institutional customer commits to a maximum of 5 curtailments each year as follows:

• One (1) Scheduled Curtailment of one hour's duration during each year of participation, plus a maximum of four (4) Unscheduled Curtailments of up to four hours each during each year of participation.
• The availability period is limited to May through September, 1-7 p.m. weekdays, each year of the program.

Financial Benefits to Participating Customers

CenterPoint Energy will pay a participating Customer (or the Project Sponsor, if different) up to $40 per kW of verified curtailed load each year of participation. For example, a Project Sponsor which contracts for 1,000 kW and consistently curtails 1,000 kW or more when asked would earn up to $40,000 each year.

For More Information

For answers to specific questions about your facility, contact David Dzierski at 713.207. 3341, or by e-mail at david.dzierski@CenterPointEnergy.com.