Program process

The first step in the residential pilot program process is for the utility to issue an RFP and select a contractor or team of contractors to handle technology installation at customer sites, as well as software setup at the utility site. The contractor or contractors should be competitively selected through an open solicitation process. Once this contractor is selected, the utility and contractor can jointly begin to recruit small commercial customers for program participation.

No application from individual customers should be required for this program, except a signed affidavit from the customer agreeing to have the equipment installed at their site and that they understand the terms and conditions of the pilot program. The contractor should have the authority to interact with the customer to make sure the necessary paperwork and program understanding is accomplished with each and every participating small commercial customer.

The contractor should also coordinate with individual consumers to arrange installation and setup of equipment. The utility may either manage this process or ask that the contractor handle the scheduling and coordination of equipment installations.

Once equipment has been installed at the customer's site, the program can be activated by setting a customer's thermostat to a preset default for a maximum time period to be determined at the outset of the program. Each interruption period will be considered an "event." A maximum number of events during an annual program period should also be determined at the beginning of the program and communicated to the customer. A customer should have the ability to override the thermostat setting at any time during an event. The program operators may also wish to vary the thermostat settings and/or the numbers of hours over which each event occurs to test consumer tolerance and reactions to different operating procedures or schedules.

Customers will receive free equipment and installation at the beginning of program participation. At the end of each year of participation, the utility should pay the applicable program incentive to the customer.

The utility must contract with a third party consultant to conduct both a process evaluation during 2001 and an energy savings and peak demand savings impact study at the end of 2002. Other evaluation schedules will be set by the Commission.

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