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REQUEST FOR PROPOSAL
2020‐22 Energy Efficiency Program Portfolio
Southwestern Electric Power Company – Arkansas
1. Introduction
Southwestern Electric Power Company (SWEPCO), a subsidiary of American Electric Power,
serves approximately 121,121 customers in Arkansas, 102,292 of which are residential accounts.
SWEPCO is issuing this Request for Proposal (“RFP”) for the selection of an experienced
implementation Contractor. The Contractor shall provide cost‐effective, turnkey services for all
of the following energy efficiency programs and associated pathways in the Arkansas service
territory:
Home Solutions Program Pathways Business/Industrial Program Pathways
Efficient Products (EP) Commercial & Industrial Energy Efficiency
Pathway (CIEEP)
Residential Energy Improvement Pathway
(REIP)
Small Business Pathway (SBP)
Home Performance with ENERGY STAR®
(HPwES)
Income Qualified Weatherization (IQW)
SWEPCO seeks implementation Contractor(s) who will provide leadership and pro‐active
initiatives and strategies leading to successful results within budget. The selected program
implementer must oversee promotion, delivery, incentive processing and quality assurance of
the program. The implementer will also be a participant along with SWEPCO in the statewide
collaborative known as the Parties Working Collaboratively (PWC). Contractors must submit
one proposal for all of the programs listed above for the Arkansas territory.
1.1 Summary of Solicitation
SWEPCO is seeking proposals from qualified firms for the selection of an independent third party program implementation contractor to deliver the programs listed above for program years 2020, 2021 and 2022. SWEPCO intends to use the results of this solicitation to award a three‐year contract to the successful bidder. The bidder shall clearly define all costs separately using the attached budget template for each program as well as any aggregated costs for all programs.
The winning contractor will provide innovative turnkey services and will collaborate with SWEPCO on program design and delivery; planning, developing and implementing marketing and outreach campaigns to encourage customer participation; process incentives (if applicable) and track and report program goals. Additional expectations and requirements are included in the Scope of Work section of this RFP. To be considered, proposals must be complete and include the information described below.
Proposals must not exceed 50 pages including appendices
Additional details regarding this RFP can be found in the table below:
Question & Answer All questions regarding this RFP must be submitted
electronically through Ariba. Questions and
answers will be shared with all bidders. No
contact with SWEPCO or AEP personnel, other
than Procurement, is permitted and may be
grounds for disqualification.
A bidder’s call will be scheduled on the week of
July 8‐12, 2019. Specific time and date TBD.
The question and answer period will end at
4:30PM ET on Wednesday, July 26, 2019.
Due Date for Proposals All proposals must be submitted electronically
through Ariba no later than 12:00PM ET on Friday,
August 2, 2019.
Finalist Interviews Tentatively scheduled for August 19‐23, 2019
Contract Award September 13, 2019
Contract Execution October 18, 2019 (Effective date January 1, 2020)
Proposal Response Format Proposals must not exceed 50 pages including
appendices. Proposals that do not meet this limit
will not be considered.
Cover Letter – Should reference the RFP name,
bidder’s name, address, telephone number and a
single point of contact including email address for
this RFP. Also include the name of proposed
subcontractors. Limited to 1 page.
Executive Summary – Limited to 1 page.
Proposed Scope of Work – Limited to 40 pages
Proposed Schedule – Gantt Chart. Limited to 1
page
Management Plan – Limited to 1 page.
Legal Claims – Limited to 1 page
Budget – please provide in the excel format
included in this RFP and submit as a separate
document.
Appendix – sample marketing plans. Limited to 5
pages.
Note: The aforementioned dates are subject to change due to possible unforeseen circumstances.
SWEPCO is not liable for any costs incurred by any person or firm in responding to this RFP or while
participating in the final interview process.
1.2 Post Proposal Negotiation and Awarding of Contracts
SWEPCO reserves the right to negotiate both price and non‐price factors during any post‐
proposal negotiations with a finalist. SWEPCO has no obligation to enter into an agreement with
any respondent to this RFP and may terminate or modify this RFP at any time without liability or
obligation to any respondent. This RFP shall not be construed as preventing SWEPCO from
entering into any agreement that it deems appropriate at any time before, during or after this
RFP process is complete.
2. Scope of Work
General descriptions for the currently approved SWEPCO Arkansas energy efficiency programs
associated with this RFP are shown in Section 2.1. Your proposal should address, but is not
limited to, the following:
• Describe your overall approach to planning the key implementation steps and goals, from
start‐up and on an annual basis to achieve program success;
• Detail your approach to maintain sufficient staff resources
• Provide the projected participation levels by measure, along with projected number of
participants. Provide projected incentive levels by measure and describe your plan to
maintain cost‐effectiveness at the program and measure level.
• Provide projected energy (kWh) and demand (kW) savings by measure and for each
program.
• Provide your expected net‐to‐gross ratio by measure and for each program.
• Describe your approach to working with SWEPCO’s Arkansas staff and other participating
contractors to implement the approved program designs and define, in broad terms, the
activities that will be taken to achieve the energy (kWh) and demand (kW) savings targeted
for the program. Prepare your proposed implementation timeline and Gantt chart from
initial contract signing to program launch and on‐going delivery. Indicate the most
important milestones, with reference to the various tasks. Emphasize first year activities and
report on your capability and confidence in meeting the target level you feel is achievable.
• Describe the ideal framework for communications, guidance, and decision‐making.
• Describe your strategy to increase persistence of energy savings from your program.
• Discuss your approach to facilitate cross‐promotion among all programs.
• Explain your knowledge of baselines and marketing saturations of proposed measures
within SWEPCO’s Arkansas service territory. Describe your existing knowledge and
experience with the SWEPCO Arkansas market, Technical Reference Manual (TRM) and
regulatory environment and your plan to overcome any regulatory or market challenges as
it relates to increasing baselines and market saturations that lower the potential to capture
savings.
• Describe your experience working with stakeholder groups whose members have varying
interest related to energy efficiency program implementation, including any experience you
have with, or knowledge of, the Parties Working Collaboratively (PWC) in Arkansas.
• Discuss your previous experience working with EM&V contractors to verify program savings
and report on process and impact results. Discuss how you will coordinate with the EM&V
contractor(s) on an on‐going basis.
2.1 Program Descriptions
The descriptions provided below have been filed with the Arkansas Public Service Commission
and are pending approval. The Income Qualified Weatherization Pathway has received
additional comments by the Attorney General’s Office requesting additional measures and
adjustments to the filed eligibility requirements.
Home Solutions Program
The Home Solutions Program is an overarching program consisting of several pathways for
residential customers to participate in energy efficiency opportunities. These pathways
range from comprehensive opportunities provided at no additional cost to the participant to
products delivered through upstream, pre‐discounted methods, to single measure
incentivized options. The program budget and savings targets will be rolled down to the
various pathways, with the ability to shift between pathways as needed to meet customer
demands and program goals. The annual net savings as proposed to and approved by the
Arkansas Public Service Commission for this program are shown in Table 1.
Table 1
Annual Net Energy Savings (kWh) 13,648,347
Annual Net Demand Savings (kW) 3,114
Efficient Products Pathway (EPP)
The Efficient Products (EP) Pathway is designed to provide incentives for the purchase of eligible products, such as ENERGY STAR® qualified Clothes Washers, Light Emitting Diodes (LEDs), Dehumidifiers, and Smart Thermostats, in addition to Advanced Power Strips (APS). The distribution of the incentive will be issued two ways: as an instant incentive at the point‐of‐sale with participating retailers and via a mail‐in incentive after the purchase. All residential customers receiving electric distribution service from SWEPCO Arkansas are eligible to participate. The incentives levels pending approved to be provided to the customer for eligible products at the point‐of‐sale as an instant rebate or after the purchase as a mail‐in rebate are detailed in Table 2 below. Incentive amounts will vary based on the type of product purchased and may be adjusted depending on market conditions. Additional products will be considered if they are determined to be cost effective.
Table 2
Measure Incentive Level
ENERGY STAR® LEDs Up to $6.00 per bulb
Advanced Power Strips $25.00 per unit
ENERGY STAR® Clothes Washers $75.00 per unit
ENERGY STAR® Dehumidifiers $75.00 per unit
ENERGY STAR® Smart Thermostats $100 per unit
The program’s measurement and verification will use deemed savings based on the most current TRM which includes industry‐accepted best practices, including those outlined in the Uniform Methods Project (UMP). Verification will include post‐document review and validation of project data (i.e., SKU, model number, and installation location). Project data shall be entered and tracked in SWEPCO’s program database. For upstream products, monthly site visits are expected to be conducted at participating retailers to ensure that products and promotional materials are displayed and made accessible. Program Implementation staff will also be expected to perform quality assurance/quality control (QA/QC) checks on sales data provided by retailers.
The annual incentive budget for 2020 – PY 2022 is expected to be approximately $360,000 resulting in approximately 3,237 MWh of net energy savings.
Home Performance with ENERGY STAR® Pathway (HPwES)
Home Performance with ENERGY STAR (HPwES) Program is required to be implemented in partnership with ENERGY STAR® and is designed to offer a comprehensive, inter‐fuel, inter‐utility whole‐house approach to improving the energy efficiency and comfort in existing homes and must be consistent with the Commission approved Consistent Weatherization Approach (CWA). The program should increase awareness of energy efficiency, stimulate ongoing demand for home energy assessments, and lead to more comprehensive home energy efficiency improvements.
The selected program implementer is expected to build upon the current infrastructure of participating contractors. SWEPCO also seeks to provide Weatherization Assistance Program (WAP) approved contractors the opportunity to participate in order that qualifying customers who require additional measures may potentially leverage funds available through the WAP. Participating contractors will conduct a whole‐house energy assessment, including the required safety testing, for eligible residential customers to identify comprehensive energy efficiency improvements. Following the assessment, the customer and participating contractor will determine the eligible cost‐effective measures to be installed. Upon completion of the installation, the participating contractor can apply for incentives from SWEPCO and, where applicable, from the natural gas utility.
The program will provide incentives for eligible measures, including direct install measures which may be installed during the assessment. Incentives may be reserved in advance of installations in order to manage the anticipated high demand for this program.
Program participation is open to SWEPCO’s Arkansas residential customers in severely energy‐inefficient single family, duplex, or mobile homes. An eligible home must be a minimum of 10 years old or have a minimum energy usage cost per square foot of ten cents for electricity based on the customer’s highest bill in the past 12 months. The eligible home must have been occupied for the previous 12 months and not received weatherization services through a utility weatherization program in the past five years including the Arkansas Weatherization Program (AWP).
Participating contractors will be required to execute a participation agreement which will include requirements of appropriate Building Performance Institute (BPI) certification or other equivalent HERS Rater certifications from Residential Energy Services Network (RESNET), in addition to holding the appropriate state licenses and maintaining the minimum level of insurance required by the program. Incentives will be available for eligible cost‐effective measures on a first‐come, first‐served basis and will be paid to participating contractors as further described below.
The eligible core measures and the direct install measures, as set forth in the Commission approved Consistent Weatherization Approach, will be installed by participating contractors at no cost to the customer. The incentive paid by SWEPCO will vary by the type of measure installed and will also be dependent upon participation of the applicable natural gas company. The selected implementation contractor will be expected to develop a good working relationship with the natural gas utilities in order to reduce the impact on customers during the contractor visits and to provide a smooth process for the participating contractors. The range of incentives that are currently approved for the core measures and direct install (DI) measures available through this program are shown in Table 3 below. Existing conditions of the home will determine the measures installed and the incentive amount. The incentive rate may vary depending on market barriers, measure adoption rates, and overall program performance.
Table 3
Measure SWEPCO only Incentive Level Joint Utility Incentive Level
Comprehensive Assessment
$150‐$350 varies
Ceiling Insulation $0.65‐$0.80/sq‐ft varies
Wall Insulation $1.20/sq‐ft varies
Air Infiltration $0.12/CFM Reduction varies
Duct Sealing $1.25/CFM Reduction varies
Advanced Power Strip (DI)
$30 $30
LEDs (DI) $5‐$8/bulb $5‐$8/bulb
Faucet Aerators (DI) $4/aerator n/a
Low‐Flow Showerheads (DI)
$12/showerhead n/a
Safety Measures varies varies
The HPwES program will be delivered by a network of participating contractors. These contractors will promote the program to customers; conduct energy assessments, help customers identify the most beneficial energy efficiency measures, install measures, and submit required documentation. The selected program implementer will review and approve all applications and support documentation to verify measures meet program eligibility and installation requirements prior to incentive processing. Participating contractors are encouraged to attend and receive additional education on weatherization of homes, both online and in classrooms, to improve their knowledge in proper home weatherization techniques.
The program will use deemed savings and a simple measurement and verification (M&V) process consistent with the approved TRM. Verification will include post‐document review and validation of project data (i.e., pre‐ and post‐test data, insulation level, etc.) as it is submitted through the program database. M&V will also include pre‐ and post‐inspection of on‐site installations on a random sample of projects. The selected program implementer will be required to conduct quality
assurance/quality control (QA/QC) in conjunction with the M&V process. QA/QC inspections will verify that the participating contractor is following the program quality installation standards and meeting customer service requirements. Surveys may be conducted as part the M&V process or on a random sample of completed projects to determine customer satisfaction with the program and participating contractor. The annual incentive budget for PY 2020 – PY 2022 is expected to be approximately $2,192,000 per year and result in approximately 6,487 MWh of net annual energy savings.
Income Qualified Weatherization Pathway (IQWP)
Following the passage of ACT 1102 by the Arkansas Legislature, the PWC worked to develop a pilot weatherization program for income qualified participants. SWEPCO will launch its Income Qualified Weatherization Pilot for residential households that meet the eligibility requirements of the state Low Income Home Energy Assistance Program (LIHEAP). It is important to note that the household must only meet the eligibility requirements of LIHEAP; they do not have to apply for or be accepted for LIHEAP. The Income Qualified Weatherization Pilot will be an additional delivery mechanism for the statewide weatherization collaborative measures. All installed measures will be incentivized at full cost. The final details of this pathway are pending approval, but the basis is that the core weatherization measures, with some variation, will align with the Consistent Weatherization Approach (CWA) as approved in Docket No. 13‐002‐U, Order No. 22 & 23. The analysis of customer information will allow SWEPCO to market the pathway to specific customer segments. The pathway will utilize SWEPCO’s existing stream of qualified contractors and will seek to include Weatherization Assistance Program (WAP) approved contractors. This inclusion is in an effort to allow qualifying customers who require additional measures to potentially leverage funds available through the WAP. Participating contractors will conduct a whole‐house energy assessment, including the required safety testing, for eligible residential customers to identify comprehensive energy efficiency improvements. Following the assessment, the customer and contractor will determine the eligible measures to be installed. Upon completion of the installation, the contractor can apply for incentives from SWEPCO and, where applicable, from the natural gas utility.
The pilot will provide incentives for eligible measures as authorized by the Commission, including direct install measures which may be installed during the assessment. Incentives may be reserved in advance of installations in order to manage the anticipated high demand for this pathway. Table 4 provides a list of the proposed measures available through this pathway and the proposed range of incentives. Existing conditions of the home will determine the measures installed and the incentive amount. The incentive rate may vary depending on market barriers, measure adoption rates, and overall pathway performance.
Table 4
Measure SWEPCO only Incentive Level
Joint Utility Incentive Level
Comprehensive Assessment
$150‐$300 varies
Ceiling Insulation $0.65‐$0.80/sq‐ft varies
Wall Insulation $1.20/sq‐ft varies
Air Infiltration $.12/CFM varies
Reduction
Duct Sealing $1.25/CFM Reduction
varies
Advanced Power Strip (DI) $30 $30
LEDs (DI) $5‐$8/bulb $5‐$8/bulb
Faucet Aerators (DI) $4/aerator n/a
Low‐Flow Showerheads (DI) $12/showerhead n/a
Smart Thermostat* varies varies
Safety Measures varies varies
The delivery, measurement and verification, and quality assurance will be similar to that of the Home Performance with ENERGY STAR processes. The annual incentive budget for PY 2020 – PY 2022 is expected to be approximately $118,625 per year and result in approximately 245 MWh of net annual energy savings.
Residential Energy Improvement Pathway (REIP)
The Residential Energy Improvement Program (REIP) offers first‐come, first‐serve incentives for the eligible measures described in Tables 5 and 6 below. All eligible measures have deemed savings values in the Commission‐approved TRM. The selected implementation contractor and participating contractors will provide customers with assistance in identifying potential measures. Incentives will be split between customers and participating contractors for the installation of eligible measures in qualifying residential facilities. Primary delivery activities include marketing, training of participating contractors, review and approval of customer applications, incentive processing, and quality assurance. Participating contractor requirements will vary based on each eligible measure and will correspond with state licensure guidelines. Participating contractors must sign an agreement and provide evidence of appropriate insurance coverage to participate in the program.
Both single‐ and multi‐family dwellings will be eligible to participate in the program through participating contractors. Direct installation of measures may be offered by participating contractors to eligible residential customers at no cost, with the associated incentives paid to the participating contractor. The incentives that are paid directly to customers for the installation of eligible measures may be assigned directly to the participating contractor in order to reduce initial out of pocket expense. Measures may include building envelope improvements such as insulation, air infiltration, duct sealing, and heating and air conditioning (HVAC) equipment. Table 5 provides a sample list of potential measures and potential total measure incentive for illustrative purposes. Direct install measures may include low flow faucet aerators and showerheads, LEDs, and advanced power strips as shown in Table 6. This list is not exhaustive, but includes measures that have proven successful in prior program years. The kWh measure savings will determine the incentive amount, and the incentive rate may vary depending on market barriers, measure adoption rates, and overall program performance.
Table 5
Measure Incentive Level
Air Infiltration $100 ‐ $200
Ceiling Insulation $0.12 ‐ $0.25 per sq‐ft
Duct Sealing $$1.25/CFM Reduction
ENERGY STAR® Windows $30 ‐ $80 per window
HVAC (A/C or Heat Pump) $120 ‐ $2,200
ENERGY STAR® Pool Pumps $250
ENERGY STAR® Smart Thermostats $100
CoolSaverSM HVAC Tune‐Up $100 ‐ $150
Direct Install measures as shown in Table 6 may be provided to participating residential customers at no cost.
Table 6
Low Flow Aerators
Low Flow Showerheads
LEDs
Advanced Power Strips
The selected program implementer will be required to review and approve all applications and support documentation to verify measures meet program eligibility requirements prior to incentive processing. The program will use deemed savings and a simple measurement and verification (M&V) process consistent with the approved TRM. Verification will include post‐document review and validation of project data (i.e., meter number, model number, AHRI number, etc.) as it is submitted through the program database. M&V will also include pre‐ and post‐inspection of on‐site installations on a random sample of projects. Quality assurance/quality control (QA/QC) will be conducted in conjunction with the M&V process. QA/QC inspections will verify that the participating contractor is following the program quality installation standards and meeting customer service requirements. Customer surveys may be held as part the M&V on the random sample of completed projects to determine customer satisfaction with the program and participating contractor. The annual incentive budget for PY 2020 – PY 2022 is expected to be approximately $590,000 per year and result in approximately 3,680 MWh of net annual energy savings.
Business/Industrial Solutions Program
The Business/Industrial Solutions Program is an overarching program consisting of several pathways for commercial and industrial customers to participate in energy efficiency opportunities. These pathways range from assistance with identifying, quantifying and incentivizing comprehensive energy efficiency opportunities to providing energy efficient products delivered through midstream, pre‐discounted prices to qualified customers. The program budget and savings targets will be allocated to the various pathways, with the ability to shift between pathways as needed to meet
customer demands and program goals. The annual net savings as proposed to and approved by the Arkansas Public Service Commission for this program are shown in Table 7.
Table 7
Annual Net Energy Savings (kWh) 20,857,212
Annual Net Demand Savings (kW) 13,040.5
Commercial & Industrial Energy Efficiency Pathway (CIEEP)
The Commercial and Industrial Energy Efficiency Program (CIEEP) is an energy efficiency pathway targeted to Arkansas commercial and industrial customers served by SWEPCO and have not opted to self‐direct. This program is managed by SWEPCO’s Arkansas staff with the assistance from the selected implementation contractor. Both the selected implementation contractor staff as well as SWEPCO’s Arkansas staff will provide assistance to customers with identifying qualifying projects, quantifying energy and demand savings, and completing applications as needed. Monetary incentives will be paid to eligible customers for the installation of a wide range of electric energy measures that save energy in qualifying non‐residential facilities. Participants in the CIEEP must meet minimum eligibility criteria, comply with all program rules and procedures, submit documentation describing their projects, and enter into a program agreement with SWEPCO. Project measures eligible for incentive payments must be cost‐effective and replace existing electric end‐uses of lower efficiencies or exceed minimum efficiency standards for new construction. A program participant must install eligible electric energy efficient measures at a SWEPCO’s Arkansas‐served non‐residential customer facility with a peak demand greater than 100 kW. Eligible participants may include customers and participating contractors such as national or local energy service companies (ESCOs) and national or local companies that provide energy‐related services or products. Participants must provide reasonable access to project facilities both before and after project completion.
The selected implementation contractor staff, SWEPCO’s Arkansas staff, or participating contractors may provide an energy efficiency assessment of a customer’s facility to identify and recommend energy efficiency improvements. SWEPCO, via the selected implementation contractor, will provide monetary incentives to encourage potential participants to implement projects recommended by the program. For illustrative purposes, a sample list of potential measures is provided in Table 8 below. This list is not exhaustive, but includes measures that have proven successful in prior program years. The kWh measure savings will determine the incentive amount. The currently approved incentive is generally $0.14 per kWh; however, the incentive rate may vary depending on market barriers, measure adoption rates, and overall program performance.
Table 8
Measure Name
Air Compressors
HVAC, Chillers
Lighting Controls
Lighting
Motors, VFD (Pumps/Fans)
Plug Loads
Refrigeration
Other
The program will also provide the direct install measures, as shown in Table 9, at no cost to the participating customers:
Table 9
Low Flow Aerators
Pre‐Rinse Spray Valves
Door sweeps/weather‐stripping
These measures may be adjusted as needed throughout the program year depending upon measure cost and associated cost‐effectiveness.
Each project will require a pre‐inspection to verify and record the eligible retrofit measures to be replaced. Post‐inspections will be conducted on all projects requiring measurement and verification and on a sample of projects utilizing deemed savings. These inspections will verify and record that the new energy efficiency measures have been installed and are performing their intended function. The results of both pre‐ and post‐inspections will be entered into the database system.
The selected implementation contractor staff and SWEPCO will work with Participants to develop measurement and verification plans for projects where deemed savings are not applicable. Measurement and verification plans shall be consistent with the International Performance Measurement and Verification Protocol (IPMVP). The participant and program staff will work collaboratively to collect the data necessary to verify the energy (kWh) and peak demand (kW) savings of a project and ensure that all projects meet the required criteria and that electric energy and demand savings are properly calculated using the most recent Commission‐approved Technical Reference Manual (TRM). Project documentation will be reviewed by implementation or SWEPCO staffs that are independent of the project manager. Surveys may be conducted as part the M&V process or on a random sample of completed projects to determine customer satisfaction with the program and Participating Contractor. The annual CIEEP incentive budget for PY 2020 – PY 2022 is expected to be approximately $2,257,850 per year and result in approximately 14,730 MWh of gross annual energy savings.
Small Business Pathway (SBP)
SWEPCO’s Small Business Pathway (SBP) promotes the installation of energy‐efficient technologies in small businesses that may be underserved by traditional incentive programs that generally target large businesses. The SBP will target all eligible non‐residential customers within its service territory with 100 kW or less in maximum billing demand. The SBP is designed to overcome barriers unique to
small commercial customers that prevent them from participating in core energy‐efficiency programs proven successful for larger commercial and industrial (C&I) customers. These barriers include:
Minimal technical knowledge amongst small commercial customers Customer concern about equipment or contractor performance Owner/tenant challenges Lack of capital, expertise, and staff Information or search costs
To address these barriers, the Small Business Pathway offers a turnkey approach that includes site‐specific energy analysis, financial incentives, installation, marketing, and energy education. It maximizes implementation of cost‐effective, high‐efficiency lighting measures, while also addressing some HVAC, refrigeration, and customized measures. Incentives are designed to achieve high participation levels and low per‐unit marketing costs. Incentives typically cover about 70% or more of the project cost and are set to maintain a short payback period, while also minimizing the customer co‐pay. Minimizing customer payments is particularly important as low levels directly influence customer participation in this hard‐to‐reach market segment. However, to maintain program cost‐effectiveness, the incentive levels are capped at approximately 90% of the total project cost. The measure kWh savings will determine the incentive amount, which will be paid directly to the contractor after the customer has authorized acceptance of the installation and any required post‐inspection is completed. Table 10 provides a sample list of measures for illustrative purposes. This list is not exhaustive, but includes measures that have proven successful in prior program years. The measure kWh savings will determine the incentive amount. The currently approved incentive is generally $0.16 per kWh; however, the incentive rate may vary depending on market barriers, measure adoption rates, and overall program performance.
Table 10
Measure Name
Lighting
Lighting Controls
Anti‐sweat Heater Controls
Strip Curtains
Walk‐in Cooler EC Motor
Other Refrigeration
Customer
The selected implementation contractor will use participating contractors as the primary
marketing agents in order to bring the pathway directly to the market it serves. This practice
leverages the participating contractors existing expertise to identify and promote the services
they already provide within the market. Materials will be developed by the implementation
contractor for use by the participating contractors along with a customer‐facing marketing
campaign. This latter campaign may include the use of mediums, such as direct email, direct
mail, bill inserts, and print ads. The selected implementation contractor will train contractors on
both program rules and any tools necessary to enter, track, and receive notifications and
approval for their projects. The implementation contractor will review all project applications,
approve the project for measure installations, perform all necessary pre‐ and post‐inspections,
and work with the participating contractors and customers to ensure efficient program
implementation. Surveys may be conducted as part of the M&V process or on the random
sample of completed projects to determine customer satisfaction with the pathway and
Participating Contractor. The annual SBP incentive budget for PY 2020 – PY 2022 is expected to
be approximately $984,000 per year and result in approximately 5,969 MWh of net annual
energy savings.
2.2 Task 1 Program Implementation Planning
The selected implementation contractor shall complete the activities listed below in order to
prepare to launch the portfolio of programs detailed above and ensure successful
implementation and delivery.
Kick‐off Meeting: The implementation contractor will initiate and prepare a kick‐off meeting to
be conducted with SWEPCO’s Arkansas staff no later than January 15, 2020. This meeting
should include a review of the program designs, verify that the outreach tactics proposed in this
scope of work align with SWEPCO’s goals and objectives, review the roles and responsibilities of
SWEPCO staff and implementation contractor staff and provide a detailed implementation plan
for program administration with specific timelines for deliverables.
Program Design: The implementation contractor will work with SWEPCO to complete any
necessary program design revisions and program manuals. Program manuals will serve as the
internal guide that outline customer and contractor eligibility requirements, eligible measures
and incentive structures, program workflow processes, forecasted energy and peak demand
savings, and Measurement & Verification processes. Manuals will also contain program
applications, forms, and tools that will support implementation. Applications and forms will be
made available as interactive PDFs, Excel®tools, or online forms to expedite enrollment and
processing and to ensure ease of completion. Potential program materials and tools should
include contractor participation agreements and customer agreements & incentive applications
and may include standardized energy assessment tools and reports, payback calculators,
installation notice, and M&V form(s) and reports.
Program Implementation Planning: The selected implementation contractor will develop
detailed implementation plans for the administration of the portfolio of programs detailed
above. Implementation plans will provide detailed work plans, timelines, and milestones to
achieve critical objectives and deliverables. The selected implementation contractor will submit
the implementation plans to SWEPCO for review upon request.
2.3 Task 2 Program Delivery
Customer Call Center: The implementation contractor will maintain a toll free telephone
number and email account that is specifically for SWEPCO as part of the marketing plan.
Implementation staff will receive all day‐to‐day program calls and emails. This process will allow
for inquiring customers to receive immediate answers to their program inquiries, including
speaking with on‐site implementation staff that are well versed in SWEPCO’s Arkansas energy
efficiency programs.
Internal Company Engagement: In conjunction with program launch, the implementation
contractor will be available to deliver training sessions with SWEPCO’s Arkansas internal
departments that serve as primary communication channels for customers (e.g., call center,
payment centers, account managers). The training will provide an overview of the programs in
order to ensure customers receive a consistent message at every point of contact and have a
pleasant experience.
Infrastructure Development: A vibrant infrastructure of participating contractors, trade allies,
and organizations to promote the availability of SWEPCO’s incentives and deliver high‐quality
energy efficiency services is critical. The implementation contractor will complete the following
activities to support the development of an infrastructure of participating contractors to support
the programs.
Recruitment: The implementation contractor will collaborate with SWEPCO to identify
participating contractor requirements and recruit contractors to participate in SWEPCO’s
Arkansas energy efficiency programs. It is expected that the implementation contractor will
accomplish this through a series of email and fax blasts, direct outreach phone calls, and
individual meetings with contractors and organizations to discuss the programs and
opportunities to advance their goals. Recruitment efforts will be conducted as needed to
establish the infrastructure necessary to achieve the annual program goals.
Program Informational Meetings: During the first quarter of 2020, program informational
meetings (kick‐off meetings) will be held for existing participating contractors, potential new
contractors and SWEPCO’s Arkansas account managers and customer service account
representatives to learn about SWEPCO’s Arkansas program offerings. The meetings should be
delivered in the northern and southern portions of SWEPCO’s Arkansas territory. The meetings
should outline program requirements, the customer participation pathways, and emphasize the
importance of delivering customer‐friendly (non‐technical) energy efficiency education to
customers. SWEPCO’s strong focus on safety should be stressed during every contact with
participating contractors as should the expectation of always providing exceptional customer
service. Each contractor and organization will receive a program information packet during the
informational meetings.
Technical Trainings: The implementation contractor should identify potential gaps and deliver
trainings necessary to establish a market of qualified participating contractors that can support
both the commercial and residential programs. Some potential examples of technical trainings
include residential thermal diagnostics, commercial lighting, compressed air, and refrigeration
systems. The implementation contractor should demonstrate the ability to provide accredited
training providers to deliver the trainings as needed.
Direct Outreach & Account Management: The implementation contractor dedicated staff will
conduct direct outreach to customers and support participating contractors by becoming their
program representative and providing mentoring and training support. Implementation staff will
be assigned to either the residential or commercial market sectors. Within each sector,
implementation staff will be assigned to specific programs and contractors or “accounts” for
whom they will provide support through all aspects of program participation. The expected
responsibilities of energy advisors by market sector are described below.
Quality Assurance / Quality Control: The implementation contractor will develop customized
quality assurance and quality control (QA/QC) processes that will be used to closely monitor
each program’s performance, facilitate continuous improvements, and to ensure customer
satisfaction. QA/QC audits will be performed and reported monthly. If discrepancies and/or
failures are identified, the issues will be documented and addressed through a formalized
corrective action plan. If a deficiency is not resolved within the agreed upon time frame, the
implementation contractor will provide SWEPCO with a suggested course of action.
Measurement & Verification: The selected implementation contractor will work with SWEPCO
to finalize a list of eligible, cost‐effective measures for each of the energy efficiency programs.
The types of measures installed will determine the Measurement and Verification (M&V)
requirements according to the International Performance Measurement & Verification Protocol
(IPMVP) and the statewide EM&V protocol approved by the Arkansas Public Service
Commission. The M&V process for measures with deemed savings will include pre‐ and post‐
installation inspections with pictures and information from nameplate data when available and
will verify installed measures and kW and kWh savings per project. Industrial and commercial
projects that require complex M&V will include an M&V Plan that will be approved by SWEPCO
prior to project implementation and completion. The implementation contractor will collaborate
with both SWEPCO’s independent EM&V contractor(s) as well as the Independent EM&V
Monitor (IEM). Key deliverables of the M&V protocol will be included in the program manual,
deemed savings calculators, and M&V Results & Reports.
2.4 Task 3 Marketing
The implementation contractor’s approach to marketing SWEPCO’s Arkansas energy efficiency
programs should incorporate at least the three following strategies: (1) unifying the programs
under a single umbrella campaign and a call to action; (2) promoting the availability of energy
efficiency incentives and services rather than individual energy efficiency programs; and (3)
leveraging a franchise model to empower participating contractors and program implementer(s)
to actively promote program incentives and their services directly to customers.
Market Research & Messaging: The implementation contractor will conduct a literature review
of previously developed SWEPCO energy efficiency program literature to ensure our continued
understanding of SWEPCO’s market and customer attitudes toward energy efficiency initiatives.
The literature review will help define the key audiences and develop the final marketing plan.
Integrated Marketing Plan: The implementation contractor will work closely with SWEPCO to
develop and implement an integrated marketing plan for the portfolio of energy efficiency
programs. The marketing plan will outline the umbrella campaign framework, primary
messaging, customer experience management plan, and key tactics to increase general
awareness of SWEPCO’s Arkansas energy efficiency offerings while supporting direct outreach
activities conducted to increase program participation.
Marketing Materials & Templates: The implementation contractor will develop marketing
materials and templates based on the integrated marketing plan and umbrella campaign’s brand
guidelines. The marketing templates will be provided to participating contractors to ensure
consistent messaging when communicating to program participants. All materials will be
presented to SWEPCO for review and approval prior to production.
Customer Call Center: The implementation contractor will maintain a toll free telephone
number and email account that is specifically for SWEPCO as part of the marketing plan.
Implementation staff will receive all day‐to‐day program calls and emails. This process will allow
for inquiring customers to receive immediate answers to their program inquiries, including
speaking with on‐site implementation staff that is well versed in SWEPCO’s Arkansas energy
efficiency programs.
Internal Company Engagement: In conjunction with program launch, the implementation
contractor will be available to deliver training sessions with SWEPCO’s Arkansas internal
departments that serve as primary communication channels for customers (e.g., call center,
payment centers, account managers). The training will provide an overview of the programs in
order to ensure customers receive a consistent message at every point of contact and have a
pleasant experience.
Infrastructure Development: A vibrant infrastructure of participating contractors, trade allies,
and organizations to promote the availability of SWEPCO’s incentives and deliver high‐quality
energy efficiency services is critical. The implementation contractor will complete the following
activities to support the development of an infrastructure of participating contractors to support
the programs.
Recruitment: The implementation contractor will collaborate with SWEPCO to identify
participating contractor requirements and recruit contractors to participate in SWEPCO’s
Arkansas energy efficiency programs. It is expected that the implementation contractor will
accomplish this through a series of email, direct outreach phone calls, and individual meetings
with contractors and organizations to discuss the programs and opportunities to advance their
goals. Recruitment efforts will be conducted as needed to establish the infrastructure necessary
to achieve the annual program goals.
Program Informational Meetings: During the first quarter of 2020, program informational
meetings (kick‐off meetings) will be held for existing participating contractors, potential new
contractors and SWEPCO’s Arkansas account managers and customer service account
representatives to learn about SWEPCO’s Arkansas program offerings. The meetings should be
delivered in the northern and southern portions of SWEPCO’s Arkansas territory. The meetings
should outline program requirements, the customer participation pathways, and emphasize the
importance of delivering customer‐friendly (non‐technical) energy efficiency education to
customers. Each contractor and organization will receive a program information packet during
the informational meetings.
Technical Trainings: The implementation contractor should identify potential gaps and deliver
trainings necessary to establish a market of qualified participating contractors that can support
both the commercial and residential programs. Some potential examples of technical trainings
include residential thermal diagnostics, commercial lighting, compressed air, and refrigeration
systems. The implementation contractor should demonstrate the ability to provide accredited
training providers to deliver the trainings as needed.
Direct Outreach & Account Management: The implementation contractor dedicated staff will
conduct direct outreach to customers and support participating contractors by becoming their
program representative and providing mentoring and training support. Implementation staff will
be assigned to either the residential or commercial market sectors. Within each sector,
implementation staff will be assigned to specific programs or pathways for which they will
provide support through all aspects of program participation. The expected responsibilities of
energy advisors by market sector are described below.
Marketing Assessment & Results: The implementation contractor will perform regular
assessments of Key Performance Indicators (KPIs) to ensure that the marketing plan meets
expectations and delivers results. KPIs will include advertising reach, volume of phone calls
received by the call center, web site statistics, email inquiries, and number of leads generated by
each tactic that convert to active projects. The findings will be reported to SWEPCO and used to
adjust the marketing strategy and/or program design.
2.5 Task 4 Incentive Processing and Data Tracking
Incentive Fulfillment
The selected implementation contractor will be required to implement a comprehensive
incentive fulfillment process that includes delivering customer incentive payments, managing
IRS 1099 reporting requirements, and conducting due diligence on checks outstanding after 30
days. The implementation contractor will be required to create an incentive payment report
every two weeks with an invoice by program to SWEPCO. This report will be based on projects
that were completed and approved for payment. Upon final approval and funding by SWEPCO of
a designated bank account, incentive payments will be processed using either Automated
Clearing House (ACH) ACH direct deposit, or printed and mailed directly to recipients within 48
hours. All mailed incentive checks will be in a SWEPCO approved envelope and accompanied by
a branded and personalized letter from SWEPCO. The incentive process should consist of at least
the following five key stages:
• Implementation contractor conducts the necessary M&V, QA/QC, and approves projects for
payment;
• SWEPCO approves incentive payment report every two weeks (electronically or via a
hardcopy authorization form);
• SWEPCO electronically funds a designated escrow bank account established by the
implementation contractor specifically for SWEPCO’s Arkansas energy efficiency programs;
• The incentive payment report is sent to implementation contractor’s banking vendor that
processes incentive payments either through ACH direct deposit, or prints and mails checks
directly to customers within approximately 48 hours; and
• Implementation contractor monitors the bank account and conducts monthly reconciliation
and follow up for 30 day+ outstanding checks.
The implementation contractor will process incentive payments for all programs listed in section
1.1 above.
Data Tracking and Database Management: The implementation contractor will use energyOrbit
to track and report progress of SWEPCO’s Arkansas energy efficiency programs. The system will
serve as the primary administration database for SWEPCO’s programs by providing the
functionality listed below:
• Conducting measure and customer verification;
• Tracking customer participation, installation of measures at customer sites, incentive
payments, and demand and energy savings;
• Managing the incentive approval and payment process;
• Providing a dashboard view of program, implementer, and service provider performance;
and
• Generating reports necessary to monitor program status and meet regulatory reporting
requirements.
The implementation contractor will be responsible for submitting project data directly into
energyOrbit. During program and portfolio setup, the implementation contractor will complete
the following actions:
• Configure SWEPCO’s Arkansas programs in energyOrbit by defining program details such as
budgets, kW and kWh goals, eligible measures, measure specifications, and incentive
structures;
• Provide training and support to SWEPCO’s Arkansas personnel that will use the system; and
• Conduct ongoing maintenance and management of the system, including updates related to
changes to the Arkansas TRM.
Reporting
The selected implementation contractor will work closely with SWEPCO to develop customized
reports that provide the details necessary to evaluate performance against goals, identify trends
that can influence strategy, and pinpoint opportunities for continuous improvements. The
implementation contractor will deliver the reports to SWEPCO during monthly program
meetings. SWEPCO will also have real‐time access to reports and dashboards through
energyOrbit. The implementation contractor should provide the following reports:
• Monthly Status Report: A PowerPoint presentation that provides a summary of the portfolio
of energy efficiency programs and administrative tasks, budget and savings forecasts,
QA/QC issues, status of corrective actions, and status towards performance metrics.
• Program Scorecards: Summary of performance metrics for each program and status towards
critical milestones for each program annual targets.
• Forecast Report: A report that provides a forecast of the projects expected to be completed
for the year for each program. Projects should be reported on at the following stages: (1)
projects completed; (2) projects active and to be completed before end of year; and (3)
projects in the pipeline. The forecast will be adjusted based on the probability of projects
completing in time to be counted towards annual participation and energy savings goals.
• Budget Status Report: A report of the year‐to‐date expenditures compared to the annual
budget and year‐end spend forecast. The report will include implementation and incentive
budget tracking and forecasting.
• Ad Hoc Reports: From time‐to‐time, the Implementation Contractor will be asked generate
and provide SWEPCO with reports upon request.
A log of trainings attended by Implementation Contractor staff and trainings and outreach
events held by Implementation Contractor staff for SWEPCO should be provided to SWEPCO on
a monthly basis. The cost of the trainings attended by the Implementation Contractor staff
should be included in the log. For all events held on behalf of SWEPCO’s Arkansas programs, the
location, the program(s) involved, the audience, and the number of attendees should be
included for each event.
2.6 Regulatory Support
Annual Report: The implementation contractor will be required to assist SWEPCO with the
preparation of the Annual Report which must be filed by May 1st of each year in accordance of
the approved Rules for Conservation & Energy Efficiency Programs. Specifically, the
implementation contractor will assist SWEPCO with the development of program summaries for
each of the programs the implementation contractor is responsible for implementing. These
summaries include year‐end achievements, type and quantity of measures installed, on‐peak
demand and energy savings, program expenses incurred by category (Program Design, Program
Marketing & Delivery, Incentives, EM&V, and Administration). The implementation contractor
will also be required to provide SWEPCO with all marketing/promotional pieces used in the
respective program year for inclusion in the Annual Report.
Savings Tracking for Lost Contributions to Fixed Costs (LCFC): The implementation contractor
will be required to assist SWEPCO with the tracking of measure, program, and portfolio level
energy savings for prior and current program years including measure estimated useful lives,
prior year partial year and full year true‐ups of projected net energy savings versus evaluated
net energy savings as well as partial year net energy saving projections for future years. This
multi‐year savings data will be utilized by SWEPCO to support its calculation of LCFC for inclusion
in its updated EE Rider which must be filed concurrent to its Annual Report on May 1st of each
year.
Measure, Program, and Portfolio Level Cost Effectiveness Evaluation: It is expected that the
selected implementation contractor will periodically provide proposals for the inclusion of
innovative new cost effective measures for each program, as applicable. These new measures
may become eligible due to changes in the TRM, baseline changes due to new codes and
standards, market conditions, etc. The implementation contractor may be called upon to
perform cost effectiveness sensitivity analysis on such measures, including the impact the new
measure may have on the cost effectiveness of a program. If the inclusion of a new cost
effective measure requires regulatory filing in order to gain Commission approval for the
inclusion of such measure, the implementation contractor may be called upon to act as witness
on the behalf of SWEPCO. The selected implementation contractor will also be expected to
develop "white papers" for new measures based on industry and trends and ongoing M&V
efforts.
Stakeholder Activities with the Parties Working Collaboratively (PWC): It is expected that the
selected implementation contractor will be an active participant with PWC. Activities include
but are not limited to the ongoing quantification of non‐energy benefits and their application in
cost effectiveness screening, maintaining the appropriate level of program comprehensiveness,
including any recommended changes to the TRM such as measure level savings adjustments, the
addition of futures measures, and any policy changes related to free ridership.
3. Conflict of Interest Disclosure
Bidders will describe any potential conflicts of interest.
4. Qualifications and Experience
4.1 Program‐Specific Qualifications and Experience
Vendor will describe their previous experience implementing similar programs.
4.2 Qualifications and Experience of Key Personnel
Vendor will identify key personnel and provide their bios.
4.3 Client References
Vendor will provide contact information of at least two (2) utilities that vendor has implemented
similar programs for.
5. Pay‐for‐Performance
SWEPCO will require pay‐for‐performance terms and holdbacks based on actual energy savings,
which will be included in the selected bidder’s contract. This is for informational purposes and
does not require bidders to include pay‐for‐performance terms and holdbacks in your
responses, as they will be negotiated after bidder selection.
6. Budget
Bidders will include all costs associated with the work and, if requested, fill out budget matrix
provided by the OpCo. If desired, vendor can offer alternative compensation structures.
SWEPCO’s program budget includes funds for program Planning & Design, Marketing &
Delivery, Customer & Contractor Incentives, EM&V, Regulatory, and Administration as defined
by the most currently approved Standard Annual Reporting Guidelines (SARP). The selected
implementation contractor will be required to track and invoice SWEPCO according to these cost
categories. Customer & Contractor Incentives should be invoiced two times each month and
will be paid net‐0 by SWEPCO. Implementation contractor Planning & Design, Marketing &
Delivery, Regulatory, and Administration costs should be billed once per month and will be
paid net‐45 days by SWEPCO. The selected implementation contractor should inform SWEPCO
on any implementation invoices (Planning & Design, Marketing & Delivery, Regulatory, and
Administration) that are projected to exceed $25,000 so that those estimated liabilities can be
booked in the month they are incurred. The EM&V cost category is only utilized to capture costs
from EM&V contractors and the Independent EM&V Monitor (IEM). All QA/QC and custom
M&V activities performed by the selected implementation contractor should be billed to
Marketing & Delivery. The selected implementation contractor will be required to use
SWEPCO’s Arkansas energy efficiency database, energyOrbit, for reporting all energy (kWh),
demand (kW), and associated project level data.