CenterPoint Energy will perform the Verification Process after any month during which a curtailment (scheduled or unscheduled) occurs. Demand savings and incentive payment amounts will be based on actual, verified Curtailable Load curtailments.

Following the billing period(s) during which a curtailment has occurred, the IDR data will be accessed by the Load Management program manager to verify actual kW demand savings. The file will be provided by the CenterPoint Energy billing department in a text format showing the month, day, time, and consumption (in kWh) for each of the 96, 15-minute demand intervals for the following days:

• The day of the curtailment, and
• The four previous business days.

Adding four consecutive 15-minute intervals provides the kW demand for that hour. Multiplying any interval by 4 provides the kW demand rate for that interval. The billing department will also provide a 12-month billing history for each ESI ID listed as project sites. This serves as a control number to assure the meter is the correct one.

1. CenterPoint Energy will review the file for the appropriate project using the customer ESI ID.
   
   
2. CenterPoint Energy will establish the baseline for each curtailment by taking the load recorded for the one-hour period that begins two hours before the start of the curtailment, and averaging the demand from that one-hour period with the demand that occurred in the same one-hour period during the four preceding peak demand days. The demand average for that one-hour period over the five peak demand days (business days) shall set the baseline for each curtailment.
   
   As an example, if a curtailment occurred on Friday, July 18, 2008, from 4:00 to 5:00 p.m., the baseline would have been based on IDR data between 2:00 p.m. and 3:00 p.m. (1415, 1430, 1445, and 1500 hours) on that day, combined with the same time period from the previous four business days (Monday, July 14 through Thursday, July 17). These five days of one-hour intervals will be averaged to establish the baseline.
   
   
3. The highest four consecutive demand intervals recorded during each curtailment will be subtracted from the baseline demand to determine the verified demand savings for that curtailment.
   
   
4. If more than one unscheduled curtailment occurs during the Contract year, the demand savings used to calculate the Performance Period Payment will be the average verified demand savings of all of the curtailments during the summer peak demand period.
   
   
5. In the event no unscheduled curtailments occur, the demand savings used to calculate the Performance Period Payment will be either the verified demand savings from the last scheduled curtailment, or the demand savings estimated in the Project Sponsor's Application, whichever is lower.
   
   

The following IDR excerpt demonstrates how the data will appear in the calculation. Keep in mind that raw data is typically presented in kilowatt-hours (kWh). A kW is determined for the 15-minute interval by multiplying the kWh x 4, or by adding four consecutive intervals:

For the day of curtailment only, the Demand Savings would thus be 1652 kW Baseline average kW - 532 kW Curtailment period average = 1120 kW Demand Savings (rounded).

This baseline process is applied to the same hour during the four previous peak demand days, and these days will be averaged to set the baseline, as shown below. The highest four (4) consecutive intervals during curtailment ("Curtailment kW") are summed and subtracted from this Baseline Average to determine the Verified Demand Savings kW. When completed, these calculations form the basis for the Incentive Payments discussed in Step Five following.