HomeMy WebLinkAbout34-15 RESOLUTIONRESOLUTION NO. 34-15
A RESOLUTION TO APPROVE AN AGREEMENT WITH SOUTHWESTERN
ELECTRIC POWER COMPANY TO PARTICIPATE IN AN ENERGY
EFFICIENCY REBATE PROGRAM IN THE AMOUNT OF $4,967.83, AND
TO APPROVE A BUDGET ADJUSTMENT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves an
agreement with Southwestern Electric Power Company to participate in an energy efficiency
rebate program in the amount of $4,967.83.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a
budget adjustment, a copy of which is attached to this Resolution and made a part hereof.
PASSED and APPROVED this 3rd day of February, 2015.
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ATTEST:
By: "euei" (f iJ:
SONDRA E. SMITH, City Clerk/Treasurer
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City of Fayetteville, Arkansas 1WestMoun72701
FF ayetteville, ARR 72701
d, n 479-575-8323
.r
Text File
File Number: 2015-0015
Agenda Date: 2/3/2015 Version: 1 Status: Passed
In Control: City Council File Type: Resolution
Agenda Number: A. 12
SOUTHWESTERN ELECTRIC POWER COMPANY AGREEMENT:
A RESOLUTION TO APPROVE AN AGREEMENT WITH SOUTHWESTERN ELECTRIC POWER
COMPANY TO PARTICIPATE IN AN ENERGY EFFICIENCY REBATE PROGRAM IN THE
AMOUNT OF $4,967.83, AND TO APPROVE A BUDGET ADJUSTMENT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves an agreement
with Southwestern Electric Power Company to participate in an energy efficiency rebate program in the
amount of $4,967.83.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget
adjustment, a copy of which is attached to this Resolution and made a part hereof.
City of Fayetteville, Arkansas Page 1 Printed on 2/4/2015
City of Fayetteville Staff Review Form
2015-0015
Legistar File ID
2/3/2015
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Peter Nierengarten 1/12/2015 Sustainability & Resilience /
Chief of Staff
Submitted By Submitted Date Division / Department
Action Recommendation:
Staff recommends approval of an agreement with Southwestern Electric Power Company (SWEPCO) for a $4967.83
incentive for the Dickson Street Lighting Retrofit project and approval of a budget adjustment. The project goal is
to replace the existing lighting fixtures and install new lighting fixtures that will save the City of Fayetteville money,
use less energy and light the street better.
Budget Impact:
2100.5315.5405 Lighting Equipment Maintenance
Account Number Fund
Project Number Project Title
Budgeted Item? Yes Current Budget $ 30,000.00
Funds Obligated $ -
Current Balance 0€000.00
Does item have a cost? No Item Cost $ -
Budget Adjustment Attached? Yes Budget Adjustment $ 4,968.00
Remaining Budget $ 34,8 Ott
V20140710
Previous Ordinance or Resolution #
Original Contract Number: Approval Date:
Comments:
CITY OF
7ay%411e
ANSAS
MEETING OF FEBRUARY 3, 2015
TO: Mayor and City Council
CITY COUNCIL AGENDA MEMO
THRU: Terry Gulley, Transportation Service Director
FROM: Peter Nierengarten, Sustainability & Resilience Director
DATE: January 12, 2015
SUBJECT: Dickson Street Lighting Retrofit
RECOMMENDATION:
Staff recommends approval of an agreement with Southwestern Electric Power Company
(SWEPCO) for a $4967.83 incentive for the Dickson Street Lighting Retrofit project and
approval of a budget adjustment. The project goal is to replace the existing Dickson Street
lighting fixtures with new lighting fixtures that will save the City of Fayetteville money, use less
energy and light the street better.
BACKGROUND:
Recently, several business owners and citizens have complained that the existing lighting along
W. Dickson Street does not provide enough light for adequate safety along the street. Currently
there are 70 - 170 watt older light fixtures along W. Dickson Street.
DISCUSSION:
The Transportation Department has identified a 60 watt LED replacement fixture that will
provide more light output at reduced energy cost. SWEPCO will provide an incentive to the city
in the amount of $4967.83 for the replacement of the existing fixtures. Total project cost is
$13,728 ($8760 after the SWEPCO incentive). The estimated electricity savings associated with
the new lighting will be $3725 per year with a 3.5 to 4.0 year project payback.
BUDGET/STAFF IMPACT:
The Transportation Department will purchase and install the new LED lighting. Adequate funds
are available in the Lighting Equipment Maintenance budget. The $4967.83 incentive will be
credited to that same budget.
Attachments:
SWEPCO Commercial & Industrial Energy Efficiency Program Application
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
___ SOUTHWESTERN
COMPANY
A unit ofAmerican Electric Power
Section 1: General Information
Commercial & Industrial Energy Efficiency Program
Final Project Application
Company/Customer Name: ; City of Fayetteville
Contact First Name: Lioneld Last Name: Jordan
City: Fayetteville State: i AR Zip: 72701
Primary Phone: (479) 575-8330 Secondary Phone:
E-mail Address: mayor@fayetteville-ar.gov
Project Site Address: W. Dickson St.
City: Fayettville State: AR Zip: 72701
Project Name: Dickson Street Lighting Retrofit
Project Type: LI New Construction OX Retrofit
Has project changed from flYes EIINo
initial application? If yes, provide details of change:
Required payback period of cJ year
project: y
What are the estimated installation start and completion dates:
Start Date: 1/1/1 5 Completion Date: 2/28/15
Has the Project Sponsor Changed from the Initial Project Application
❑XYes flNo
If yes, Complete the following section:
Project Sponsor Tax ID No. 71-6018462 '' Tax Exempt? (Y/N)
....
Project Sponsor Name: City of Fayetteville
Mailing Address 113 W. Mountain St.
City : Fayetteville State : ,AR
N
Zip: 72701
Page 1 of 20
gridSMART
From Southwestern Electric power Company
ELECTRIC IER
COMPANY
A unit ofAmerican Electric Power
Is the installation being conducted by in-house staff or by a Contractor?
OX In -House Staff ❑Contractor
If a Contractor is used, provide the following information:
Company Name:
Contact First Name: Last Name:
Mailing Address:
City: State: Zip:
Primary Phone: Secondary Phone:
E-mail Address:
•
*Information should match information provided on the W9 form
This section to be completed by a SWEPCO Energy Advisor
Customer Name: City of Fayetteville
Project Name: Dickson Street Lighting
Project ID: CIEEP-16472a
Energy Advisor: Alex Floyd
Incentive and Savings Information*
Measure Description
Estimated Savings
kW kWh
Incentive Rate
$/kW $/kWh
Estimated
Incentive
Lighting
0.00
41,399
$ 220.00
$ 0.12
$ 4,967.83
Total Incentive Reserved
$ 4,967.83
' i ne amount listea as the total incentives neserveu is oaseu on esuinutteu JdVnIys. /1UtUd1 aR.elluve d111UU111, VVIll UU
based on verified savings. The total incentives paid cannot exceed the amount noted in this section.
Page 2 of 20
SMARTS'
From Southwestern Electric Power Cemperry
COhIMNY
A unit ofAmerican Electric Power
Section 2: Customer Agreement
This Commercial and Industrial Energy Efficiency Program Agreement (the "Agreement") is
made and entered into by and between SOUTHWESTERN ELECTRIC POWER COMPANY, a
Delaware corporation (hereinafter "SWEPCO"), and City of Fayetteville
(hereinafter "Project Sponsor"), (SWEPCO and Project Sponsor each hereinafter referred to
"Party" and together as the "Parties").
as a
WHEREAS, SWEPCO has developed a Commercial and Industrial Program (the "CIEEP"),
for its commercial and industrial customer classes; and
WHEREAS, the CIEEP seeks to procure energy savings and peak demand savings through
the installation and operation of energy efficiency measures at the facilities of such customers; and
WHEREAS, Project Sponsor has developed a plan for participation in the CIEEP through a
set of proposed or installed energy efficiency measures and other improvements necessary to
produce energy savings or peak demand savings, or both;
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter
set forth, the adequacy and sufficiency of which are hereby acknowledged, the Parties hereby
agree as follows:
ARTICLE I — DEFINITIONS
Business Day shall mean normal working days (8:00am — 5:00pm), Monday through Friday,
January 1 through December 31, excluding holidays.
1.1 "Contract Documents" shall mean (i) the Project Sponsor's approved Initial Application,
attached hereto and incorporated herein as Exhibit A; (ii) the Project Sponsor's approved
Final Application, attached hereto and incorporated herein as Exhibit B; (iii) the CIEEP
Procedures Manual, attached hereto and incorporated herein as Exhibit C; and (iv) this
Agreement together with any and all other exhibits, addenda, or amendments referenced
herein or made a part hereof in accordance with this Agreement.
1.2 "Customer" shall mean a nonresidential distribution system customer of SWEPCO that
owns or leases facilities at a Project Site and that has entered into a Customer Agreement
with the Project Sponsor for the installation of Measures as a part of the Project. For the
purposes of this Agreement, a "non-residential distribution system customer" shall mean a
non-residential retail customer with a demand that exceeds 50 kW or a group of non-
residential retail customers under common ownership within a service territory in which the
combined demand exceeds 50 kW.
1.3 "Customer Agreement" shall mean the agreement between Customer and the Project
Sponsor that specifies the rights and obligations of each Party with respect to the installation
of the Measures at the Project Site(s) and other related and/or unrelated matters.
Page 3 of 20
gr®dSMART
From Somdwesmm Electric Power Compeoy
Tv!"' SOUTHWESTERN
ELECTRIC WER
COMPANY"
A unit ofAmericaa Electric Power
1.4 "Deemed Energy Savings" shall mean a pre -determined, validated estimate of Energy
Savings attributable to a Measure in a particular type of application that SWEPCO may use
instead of Measured Energy Savings.
1.5 "Deemed Peak Demand Savings" shall mean a pre -determined, validated estimate of Peak
Demand Savings attributable to a Measure in a particular type of application that SWEPCO
may use instead of Measured Peak Demand Savings.
1.6 "Deemed Savings" shall mean the sum of Deemed Energy Savings and Deemed Peak
Demand Savings.
1.7 "Demand Savings" shall mean a quantifiable reduction in the rate at which energy is
delivered to or by a system at a given instance, or average over a designated period, usually
expressed in kilowatts (kW) or megawatts (MW). Demand Savings will be determined by
comparing the efficiency of the installed qualifying energy efficiency equipment to that of
new equipment that meets all applicable minimum efficiency standards —not to that of the
customer's existing equipment. In cases where no standard currently exists, existing
equipment efficiencies will be used. Equipment standard efficiencies are ASHRAE 90.1-
2001, and the SWEPCO Standard Lighting Wattage Table.
1.8 "Energy Savings" shall mean a quantifiable reduction in the Customer's consumption of
energy, or the amount by which the Customer's energy consumption is reduced, as a result
of the installation of qualifying energy -efficient measures. Energy Savings will be
determined by comparing the efficiency of the installed measures to that of new measures
that meets all applicable minimum efficiency standards —not to that of the customer's
existing measures. The exception for using existing efficiencies would be, in cases of
replacing existing working equipment prior to the end of its estimated useful life, (EUL),
Equipment EULs can be found in the Arkansas TRM version 1.0. In cases where no
standard currently exists, existing measure efficiencies will be used. Measure standard
efficiencies are ASHRAE 90.1-2001, and the SWEPCO Standard Lighting Wattage Table.
1.9 "Estimated Energy Savings" shall mean the Energy Savings expected to be derived in a
single Performance Period from Measures to be installed or actually installed at the Project
Site.
1.10 "Estimated Peak Demand Savings" shall mean the Peak Demand Savings expected to be
derived in a single Performance Period from Measures to be installed or actually installed at
the Project Site.
1.11 "Estimated Savings" shall mean the sum of Estimated Energy Savings and Estimated Peak
Demand Savings.
1.12 "Measure" shall mean new equipment, material, or systems that (i) when installed and used
at a Project Site, result in a measurable and verifiable reduction in either purchased electric
energy consumption, measured in kilowatt-hours (kWh), or peak demand measured in
Page 4 of 20 gnSMARTS
From Sombwestom Electric Power Company
___ SOUTHWESTERN
ELECTRIC WER
COMPANY
A unit otAmerican Electric Power
kilowatts (kW), or both; (ii) meet the requirements of the Contract Documents; and (iii) in the
determination of SWEPCO, are not ineligible for incentive payments. Measures may include
equipment, material, or systems that are installed as part of new construction.
1.13 "Measured Energy Savings" shall mean the Energy Savings derived during the Performance
Period from the Measures installed at the Project Site as determined in accordance with the
Measurement and Verification Plan found in the Final Application, set forth in Exhibit B, and
as documented in a Savings Report approved by SWEPCO.
1.14 "Measured Peak Demand Savings" shall mean the Peak Demand Savings derived during
the Performance Period from the Measures installed at the Project Site as determined in
accordance with the Measurement and Verification plan found in the Final Application, set
forth in Exhibit B, and as documented in a Savings Report approved by SWEPCO.
1.15 "Measured Savings" shall mean the sum of Measured Energy Savings and Measured Peak
Demand Savings.
1.16 "APSC" shall mean the Arkansas Public Services Commission.
1.17 "Peak Demand" shall mean electrical demand at the time of highest annual demand on the
utility's system, measured in 15 -minute intervals.
1.18 "Peak Demand Savings" shall mean Demand Savings calculated as the maximum, one -hour
average demand reduction that occurs while the system undergoing retrofit is operating at
full load conditions during the peak summer period, defined as weekdays, between the
hours of 1 p.m. and 7 p.m. CDT from May 1 until September 30, excluding federal holidays.
1.19 "Performance Period" shall mean the one (1) year period following approval of the
Installation Report during which measurement and verification activities take place.
1.20 "Project" shall mean the sum of all activities and Measures required to achieve the
Estimated Energy Savings and Estimated Peak Demand Savings necessary to meet the
reserved incentive amount listed in the Project Sponsor's Final Application. New
construction projects are eligible for this CIEEP.
1.21 "Project Site" shall mean the location of a Customer's facilities where approved Measures
will be installed and from which Energy Savings or Peak Demand Savings, or both, will be
obtained.
1.22 "Project Sponsor" shall mean any organization, group, or individual who contracts with
SWEPCO to provide Energy Savings or Peak Demand Savings, or both, under the CIEEP.
1.23 "Prudent Electrical Practices" shall mean those practices, methods, standards and
equipment commonly used in prudent electrical engineering and operations to operate
electrical equipment lawfully and with safety, dependability and efficiency and in accordance
with the National Electrical Safety Code, the National Electrical Code and any other
Page 5 of 20
gridSMART'
From Southwestern Electric Power Company
,r SOUTHWESTERN
ELECTRIC VER
COMPANY
A unit ofAmerlcan Electric Power
applicable federal, state and local codes provided, however, that in the event of a conflict,
the applicable federal, state or local code shall govern.
ARTICLE II— TERM AND TERMINATION
The term of this Agreement shall commence on the date of execution by SWEPCO (the "Effective
Date") and, unless otherwise terminated as set forth herein, shall continue in force and effect until
payment by SWEPCO of the Performance Payment due pursuant to Article 7.4 herein, or until
eighteen (18) months following the Effective Date, whichever occurs first.
ARTICLE III — COMPLIANCE WITH CIEEP PROCEDURES MANUAL
3.1 By executing this Agreement, Project Sponsor acknowledges that it received a copy of the
CIEEP Procedures Manual (Exhibit C) prior to submission of its Initial or Final Application.
Project Sponsor represents and affirms that its participation in the CIEEP has at all times
been in compliance with the procedures and conditions set forth in the CIEEP Procedures
Manual and that any failure to comply therewith may be treated as a breach of this
Agreement notwithstanding the fact that such failure occurred prior to the execution of this
Agreement, Project Sponsor also acknowledges that it meets or exceeds all of the
qualifications required to participate in the CIEEP as described in the CIEEP Procedures
Manual and that failure to meet the qualifications therein may be treated as a breach of this
Agreement.
3.2 Procedures or conditions set forth in the CIEEP Procedures Manual may only be waived or
modified by written agreement of both Parties. Any such agreement shall be attached
hereto and incorporated herein for all purposes.
ARTICLE IV — PROJECT SPONSOR AND CUSTOMER AGREEMENT AND CUSTOMER
CERTIFICATION
4.1 Project Sponsor will be solely responsible for entering into a Project Sponsor and Customer
Agreement with the Customer as appropriate for implementation of the Project. A Customer
acting as. its own Project Sponsor will be required to provide a Customer Agreement. The
Project Sponsor and Customer Agreement must be executed by the Project Sponsor and
the Customer prior to Project Sponsor beginning installation of Measures at the Project Site.
To the extent possible, Project Sponsor and Customer Agreements will be kept confidential.
4.2 Project Sponsor agrees to disclose to Customer any potential adverse environmental or
health effects associated with the Measures to be installed at the Project Site. The Project
Sponsor and Customer Agreement includes the following provisions:
(a) Customer agrees, upon five (5) business days' prior oral notice, to provide SWEPCO
and the independent measurement and verification expert selected by the APSC with
full and complete access to the Project Site for any purpose related to the CIEEP.
Page 6 of 20
rW SMART`
From Southwest®m Electric Power Company
COMPAN
A unit ofAmerican Electric Power
The right of access will be subject to Customer's reasonable access requirements
and, unless otherwise agreed, must occur within the Customer's normal business
hours.
(b) Customer acknowledges that any review, inspection, or acceptance by SWEPCO of
the Project Site or of the design, construction, installation, operation or maintenance
of the Measures is solely for the information of SWEPCO and that, in performing any
such inspection or review or in accepting the Measures, SWEPCO makes no
representation or warranty whatsoever as to the economic or technical feasibility,
capability, safety or reliability of the Measures, their installation by Project Sponsor,
or their compatibility with the Customer's facilities.
(c) Customer acknowledges that Project Sponsor is an independent contractor with
respect to SWEPCO and the CIEEP and that Project Sponsor is not authorized to
make representations or incur obligations on behalf of SWEPCO.
(d) Customer acknowledges that Project Sponsor and Customer are solely responsible
for performance thereunder.
(e) Customer acknowledges that SWEPCO makes no warranty or representation
regarding the qualifications of Project Sponsor, and that the Customer is solely
responsible for the selection of Project Sponsor.
(f) Customer acknowledges that the Customer may file a complaint with the APSC
concerning Project Sponsor, but that SWEPCO will play no role in resolving any
disputes that arise between the Customer and Project Sponsor.
(g) CUSTOME-R---AGREES TO RELEASE SWEPCO AND ANY INDIVIDUAL,
OR0�
PRnfOON, PARTNERSHIP,LIMITED —LIABILITY COMPANY;
L TRUST, OR OTHER BUSINESS ORGANIZATION OF ANY KIND
DIRECTLY OR y INDIRECTLY 1! CONTROLLING, G CONTROLLED BY OR —UNDER
COMMON CONTROL WITH SWEPCO AND ITS AND THEIR RESPECTIVE
SHAREHOLDERS, MEMBERS, PARTNERS, OFFICERS, DIRECTORS,
MANAGERS, TRUSTEES, INCORPORATORS, AGENTS, ATTORNEYS,
CONSULTANTS, REPRESENTATIVES AND EMPLOYEES FROM
SERVANTS,
ANY AND ALL CLAIMS3-DEMANDS, LOSSES, DAMAGES, COSTSAH1=EGAL
'\ I LIABILITY INCLUDING, BUT NOT LIMITED TO 1) INJURY OR DEATH OF
PERSONS, RESOURCES,
3) VIOLATION OF ANY
LOCAL, STATE, OR FEDERAL LAW OR REGULATION INCLUDING, BUT NOT
-rrvn-irsvcyvrrrc'+ � vc'rrsv r
LIMITED ,
ENVIRONMENTAL AND HEALTH AND SAFETY LAWS OR
REGULATIONS, 4) STRICT LIA131LITY IMPOSED BY ANY LAW OR
REGULATION, 6) EQUIPMENT MALFUNCTIONS,
SHORTFALLS ARISING OUT OR 6) ENERGY SAVINGS
RELATED TO, OR IN ANY WAY CONNECTED
WITH PROJECT. THIS PROVISION SHALL NOT APPLY TO CLAIMS,
THE r TZO�'��ir. �..
LOSSES, DAMAGES,
COSTS AND LEGAL LIABILITY TO THE
EXTENT CAUSED BY THE NEGLIGENCE OF SWEPCO IN THE CONDUCT OF
SWEPCO'S O 1 SITE INSPECTION THE PROJECT SITE
c-rrsvi-r. INSPECTION OF THE � c � ,
Page 7 of 20
ridSMART
From Southwestern Electric Pawn, Company
___ SOUTHWESTERN
ELECTRIC POWER
COMPANY
A unit ofAmerican Electric Power
4.3 Project Sponsor must obtain a completed Customer Acknowledgement Form from each
Customer indicating that the Measures contracted for were installed at the Project Site. The
completed Customer Acknowledgement Form should be submitted to SWEPCO with the
Installation Report described in Section 5.3 below. Final payment of incentives will not be
made unless and until a completed Customer Acknowledgement Form or inspection by
SWEPCO has been completed in accordance with the terms of the Contract Documents.
ARTICLE V — PROJECT IMPLEMENTATION
5.1 Project Sponsor agrees on and after the Effective Date to use all reasonable efforts to
implement the Project without undue delay and otherwise in accordance with the terms of
the Contract Documents. To the extent of any conflict between this Agreement and other
Contract Documents, the terms of this Agreement shall prevail.
5.2 Measures shall be designed, constructed and installed in a good and workmanlike manner
only with materials and equipment of appropriate quality, and, in any event, in accordance
with Prudent Electrical Practices. Installation of Measures at all Project Sites shall be
completed and an Installation Report, as defined below, shall be submitted to SWEPCO
within six (6) months of the Effective Date. Project Sponsor may apply, in writing, for an
extension of this time period. The extension may be granted to Project Sponsor for this
Project at SWEPCO's sole discretion. Any extension will be for a period of no more than
three (3) months beyond the initial six (6) month period. If granted, the extension must be
made in writing as an amendment to this Agreement. Such amendment will be attached
hereto and become a part of the Contract Documents. Furthermore, if an extension is
granted, the term of this Agreement will be extended by the length of the extension.
5.3 Within fifteen (15) business days of completing installation of Measures at a Project Site,
Project Sponsor shall so notify SWEPCO by submitting a report for review and approval
documenting the Measures actually installed (the "Installation Report"). The Installation
Report shall be submitted to SWEPCO pursuant to the notice provisions of Section 15.1.
Within thirty (30) business days of receipt of the Installation Report, SWEPCO may complete
an inspection of all or some of the Measure installations at the Project Site. This inspection
shall be used to determine whether the Measures were installed and are capable of
performing their intended function of producing Energy Savings and Peak Demand Savings.
Approval of the Installation Report shall be granted if SWEPCO reasonably determines that
the Measures at the Project Site have been installed, tested and inspected to the extent
required by SWEPCO and found to be capable of providing Energy Savings and Peak
Demand Savings in material compliance with the Contract Documents. If Measures are
rejected, SWEPCO will set forth the written reasons for such rejection and Project Sponsor
may attempt to remedy the deficiencies and resubmit its Installation Report. If any Measure
is rejected a second time, SWEPCO will consider it a material breach of this Agreement and
will not pay any incentive for such Measure. The Estimated Savings attributable to the
Measures documented in the approved Installation Report will be used for purposes of
calculating the Installation Payment in Section 7.3.
Page 8 of 20
gridSMART
From Southwestern Electric Power Company
__ SOUTHWESTERN
ELECTRIC WER
A unit of American Electric Power
5.4 Project Sponsor acknowledges that any review, inspection, or acceptance by SWEPCO of
any Project Site or of the design, construction, installation, operation and maintenance of the
Measures is solely for the information of SWEPCO. In performing any such inspection or
review or in accepting the Measures, SWEPCO makes no representation or warranty
whatsoever as to the economic or technical feasibility, capability, safety or reliability of the
Measures, their installation by Project Sponsor or their compatibility with the Customer's
facilities.
5.5 Within thirty (30) business days of the conclusion of the Performance Period, Project
Sponsor shall submit a report to SWEPCO documenting the Measured Energy Savings and
Measured Peak Demand Savings for the Performance Period (the "Savings Report"). If the
Savings Report is deficient, SWEPCO will provide, in writing, notice of the deficiency, and
Project Sponsor shall revise and resubmit the Savings Report until it is approved by
SWEPCO. Any necessary revisions shall be performed in the time -period specified by
SWEPCO in the notice of deficiency.
ARTICLE VI — MEASUREMENT AND VERIFICATION
Project Sponsor shall document the measurement and verification of the Energy Savings or Peak
Demand Savings, or both, that result from the Measures installed as a part of the Project as set
forth in the Measurement and Verification Plan found in the Final Application, which is attached
hereto as Exhibit B. The measurement and verification activities shall be performed by Project
Sponsor.
ARTICLE VII — INCENTIVE PAYMENTS
7.1 SWEPCO agrees to make incentive payments to Project Sponsor based upon the sum of
the documented Deemed Savings and Measured Savings derived from the Project. The
total incentive payments due to Project Sponsor will be calculated by multiplying the
Deemed Savings and Measured Savings by the applicable "Incentive Rate" specified in
Section 7.2.
7.2 The Incentive Rate applicable to each type of measure is set forth in Table 1:
Measure Name
Incentive ($/kW)
Incentive ($/kWh)
Air Compressors
$ 194.50
1 $ 0.0750 ..__.._..__
Chillers
$ 288.60
$ 0.0888
Freezer Glass Door 0 <V < 15
$50/unit
Freezer Glass Door 15 < V < 30
$75/unit
Freezer Glass Door 30 <V < 50
$100/unit
Freezer Glass Door V = 50
$125/unit
Geothermal
$ 321.10
$ 0.0988
HVAC (DX, split, packaged)
$ 244.92
$ 0.0754
Lighting Controls
$20/unit
Page 9 of 20
r� SMART
From Sombwestora Electric Power Compaq
___ SOUTHWESTERN
• ELECTRIC POWER
COMMNY
A unit 0(American Electric Power
Lighting Screw -In CFL (11 W to 40W)
$2/unit
Lighting Screw -In CFL (41 W to 200W)
$4/unit
Lighting Linear Fluorescent Fixtures
$ 175.00
$ 0.0650
Lighting Modular Fluorescent Fixtures
$ 175.00
$ 0.0650
LED Fixture Lighting
$ 220.00
$ 0.1200
LED Recessed Down Light Fixture*
$20.00/unit
LED 5W to 25W Screw -In Replacement*
$10.00/unit
LED 1W to 4W Screw -In Replacement*
$5.00/unit
LED Exit Signs
$10.00/unit
Motors, VFD (Pumps/Fans)
$ 244.92
$ 0.0754
Refrigerator Glass Door 0 < V < 15
$50/unit
Refrigerator Glass Door 15 <V < 30
$75/unit
Refrigerator Glass Door 30 <V < 50
$100/unit
Refrigerator Glass Door V = 50
$125/unit
Solar PV
$ 450.00
$ 0.3500
Solar Water Heating
$ 244.92
$ 0.0754
Wind Generation
$ 179.00
$ 0.0501
Anti -Sweat Heater Controls — Medium
Temperature Application
$29.50 / controlled linear foot
Anti -Sweat Heater Controls — Low
Temperature Application
$68.501 controlled linear foot
Demand Control Ventilation — commercial
hoods
j $ 0.00
$0.13
PC Power Management Software
$0.00
$0.10
Other
Case By Case Basis
* Must be DesignLights Consortium or ENERGY STAR(S) approved
Table 1 2014 CIEEP Incentive Rates
7.3 Upon completion of Measure installation and approval of the Installation Report, Project
Sponsor shall submit an invoice for review and approval to SWEPCO for the first installment
of the incentive payment (the "Installation Payment"). SWEPCO will make the Installation
Payment within thirty (30) business days of its approval of the invoice. The Installation
Payment will be one hundred percent (100%) of the incentive payment due for Deemed
Savings plus forty percent (40%) of the total incentive payment due based upon the
Estimated Savings set forth in an approved Installation Report. Individual Measures will be
eligible for incentive payments based on either a Deemed Savings basis or an
Estimated/Measured Savings basis, but not both. The amount of the Installation Payment
will be calculated using the following formula:
IP = DIP + EIP
DIP = [(DES x MI) + (DDS x MI)]
Page 10 of 20
ridSMART
From Southwestern Electric Power Company
SOUTHWESTERN
ELECTRJC ER
A unit of American Electric Power
ARTICLE VIII— AUDIT AND RECORDS
8.1 Project Sponsor or its assignee shall keep and maintain accurate and detailed records and
documentation relating to the Project and its associated Energy Savings and Peak Demand
Savings under this Agreement for a period of not less than three (3) years beyond the
termination of this Agreement. During the retention period, such records shall be made
available, upon reasonable notice, for inspection during normal business hours by SWEPCO
or any governmental agency having jurisdiction over the CIEEP or any portion of the Project.
8.2 Project Sponsor understands that the APSC may request or require an audit of the matters
addressed in this Agreement or commence an investigation or other regulatory proceeding.
Project Sponsor agrees to cooperate with any such process and make available detailed
records and documentation relating to the Project, upon reasonable notice by SWEPCO or
any governmental agency having jurisdiction over the CIEEP.
ARTICLE IX — INSURANCE
Project Sponsor represents and agrees that it and its subcontractors will carry all statutorily required
insurance for the protection of its employees and that each of its subcontractors will carry such
insurance for the protection of their respective employees.
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10.2 The representations, warranties, covenants, indemnities, and other obligations or
protections provided by Project Sponsor pursuant to this Article X shall not be limited by
time and shall survive the completion of the Project or any other completion, expiration or
termination of this Agreement.
ARTICLE XI — PERMITS, LICENSES AND COMPLIANCE WITH LAWS
11.1 Project Sponsor represents and warrants that prior to beginning installation of Measures,
Project Sponsor will, at its own cost and expense, obtain all permits and other authorizations
from governmental authorities as then may be required to install, construct, operate and
maintain the Measures in question and to perform its obligations hereunder. During the
term hereof, Project Sponsor will, at its own cost and expense, obtain all such additional
Page 12 of 20
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From Southweatem Electric Power Company
i #SOUTHWESTERN
COMPANY
A unit olAmerican Electric Power
EIP = 0.40 x [(EES x MI) + (EDS x MI)]
Where:
IP is the total Incentive Payment
DIP is the portion of the incentive payment attributable to Savings
EIP is the portion of the incentive payment attributable to Estimated Savings
DES is the amount of Deemed Energy Savings;
DDS is the amount of Deemed Peak Demand Savings;
EES is the amount of Estimated Energy Savings; and
EDS is the amount of Estimated Peak Demand Savings.
MI is the measure Incentive Rate
7.4 At the conclusion of the Performance Period and upon SWEPCO's approval of the Savings
Report, Project Sponsor shall submit an invoice for review and approval to SWEPCO for the
second installment of the incentive payment (the "Performance Payment"). Subject to the
limitation in Section 7.1, the Performance Payment will be the remaining amount of the total
incentive payment due based upon the Measured Savings. The amount of the Performance
Payment shall be calculated using the following formula:
Performance Payment = [(MES x MI) + (MDS x MI)] - EIP
Where:
MES is the amount of Measured Energy Savings (not including DES);
MDS is the amount of Measured Peak Demand Savings (not including DDS); and
EIP is the portion of the Installation Payment attributable to Estimated Savings as calculated
and paid pursuant to Section 7.3; and
MI is the measure Incentive Rate.
SWEPCO will make the Performance Payment within thirty (30) business days of its
approval of the invoice. In the event that the above formula results in a negative
Performance Payment, then Project Sponsor will refund that amount to SWEPCO within
thirty (30) business days of receipt of notification of SWEPCO's approval of the invoice.
7.5 In the event that the final kW and kWh savings or the number of units installed results in an
incentive payment higher than the reserved amount, SWEPCO will only pay up to 110% of
the reserved amount on the Final Application.
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From Souffiwe tum Electric Power Compeer
TT4 SOUTHWESTERN
COMPANT
A unit ofAmerican Electric Power
governmental permits, licenses, and other authorizations when required with respect to any
of the Measures under this Agreement. If requested by SWEPCO, Project Sponsor shall
furnish to SWEPCO copies of each such permit, license or other approval promptly following
receipt thereof. Project Sponsor shall maintain in full force and effect all such governmental
permits, licenses and other authorizations as may be necessary for the construction,
operation or maintenance of the Measures in accordance herewith. Failure to maintain
licenses, permits and other authorizations required to perform the work detailed in this
Agreement constitutes a material breach of Project Sponsor's obligations under this
Agreement.
11.2 Project Sponsor shall be responsible for all royalties, fees, or claims for any licensed,
copyrighted or similarly protected intellectual property, device, process or procedure used
installed, or provided by it. Project Sponsor shall defend any suit that may be brought
against SWEPCO and shall hold SWEPCO and any individual, corporation, partnership,
limited liability company, association, trust, or other business organization of any kind
directly or indirectly controlling, controlled by, or under common control with SWEPCO and
its and their respective shareholders, members, partners, officers, directors, managers,
trustees, incorporators, agents, attorneys, consultants, servants, representatives, and
employees harmless from any liability or infringement of any such intellectual property used
by Project Sponsor in the implementation of the Project.
11.3 All work performed by Project Sponsor in connection with the implementation of the Project
and all Measures installed or maintained by Project Sponsor shall conform to all applicable
laws, statutes, ordinances, rules, regulations, and decrees of any governmental or
administrative body having jurisdiction over the CIEEP or any portion of the Project,
including without limitation, the Occupational Safety and Health Administration (OSHA)
regulations, the National Electric Safety Code (NESC), the National Electric Code (NEC)
and Sections 11-5-301 through 11-5-309 of the Arkansas Code Annotated. Handling of
hazardous waste must be in compliance with all applicable federal, state and local laws,
rules and regulations.
ARTICLE XII — DEFAULT AND REMEDIES
12.1 Each of the following events will be deemed to be an Event of Default hereunder:
(a) failure of Project Sponsor to perform its responsibilities in a timely manner or
implement the Project in compliance with the CIEEP Procedures Manual and other
Contract Documents;
(b) failure of Project Sponsor to provide SWEPCO and/or its contractors with sufficient
access to the Project Sites for the purposes of conducting inspections, observations,
or measurement and verification activities;
(c) failure of Project Sponsor to obtain or maintain any necessary permits, licenses or
insurance required pursuant to the Contract Documents;
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From Sootffiweuem Electric Power Compenv
4 SOUTHWESTERN
ELECTRIC POWER
A unit ofAmerican Electric Power
(d) Project Sponsor's assignment or subcontracting of all or part of the duties required
under the Contract Documents without the prior written consent of SWEPCO;
(e) Project Sponsor's submission to SWEPCO of any false, misleading or inaccurate
information or documentation with respect to implementation of the Project or Project
Sponsor's performance hereunder, when Project Sponsor knew or reasonably
should have known that such information was false, misleading or inaccurate; or
(f) failure of either Party in a material fashion to perform or observe any of the material
terms, conditions or provisions of this Agreement not otherwise described in this
Section 12.1, which failure materially adversely affects the other Party and continues
after notice and a thirty (30) day period to cure, or, if such failure cannot reasonably
be cured within thirty (30) days, after notice and such period to cure in excess of
thirty (30) days as may be reasonably required (provided that the non -performing
Party commences action to cure within an initial period of thirty (30) days after notice
and thereafter pursues such cure with reasonable diligence).
12.2 If an Event of Default occurs, the non -defaulting Party shall be entitled to exercise any and
all remedies provided for by this Agreement, by law or in equity, including, but not limited to,
the right to immediately terminate this Agreement upon written notice to the other Party.
Termination shall be effective upon the receipt of properly served notice. Termination of this
Agreement will not relieve the defaulting Party of any obligations accruing prior to the event
of termination.
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From Soutwestom Electric Power Company
A unit ofAmerican Electric Power
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ARTICLE XIV — INDEPENDENT CONTRACTOR
Project Sponsor will act as and be deemed to be an independent contractor, and nothing in this
Agreement shall be construed to create the relationship of employer and employee, master and
servant, principal and agent or joint venturers. Project Sponsor will be solely responsible for and
have the sole right to control and directly supervise the method, manner and details of the Project
providing it is in accordance with the Contract Documents, SWEPCO shall have no responsibility
with respect to withholding, deductions or payment of any federal or state tax on behalf of Project
Sponsor or any of Project Sponsor's employees. Project Sponsor agrees to pay and comply with
and hold SWEPCO harmless from and against the payment of all contributions, taxes and
premiums which may be payable by Project Sponsor under federal, state or local laws arising out of
the performance of this Agreement and all other taxes of whatever nature levied or assessed
against Project Sponsor arising out of this Agreement, including any interest or penalties, and
Project Sponsor hereby waives any and all claims for additional compensation because of any
increase in the aforementioned taxes.
ARTICLE XV — NOTICES
15.1 All notices from one Party to the other will be deemed to have been delivered if hand
delivered or sent by United States mail to the following addresses:
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Ram Sou&wuu m Electric Power Compeer
SOUTHWESTERN
COMPANY
A unit of American Electric Power
Southwestern Electric Power Company Project Sponsor
Name: Gregory Perkins
Name: City of Fayetteville
Address: 101 W. Township
Address: 113 W. Mountain St.
Fayetteville, AR
Fayetteville, AR 72701
Phone: (479) 973-2435
Phone: (479) 575-8330
E-mail: gaperkins@aep.com
E-mail: mayor@fayettevilie-ar.gov
15.2 Either Party may change its address by written notice to the other in accordance with this
Article XV.
ARTICLE XVI — AMENDMENT
No amendment or modification of this Agreement shall be binding on either Party unless it is in
writing and signed by both Parties. Amendments to this Agreement will be attached hereto and
made a part hereof for all purposes.
ARTICLE XVII — ARKANSAS FREEDOM OF INFORMATION ACT
17.1 SWEPCO agrees and understands that this Agreement and documents submitted to the
City pursuant hereto are subject to the Arkansas Freedom of Information Act. If a Freedom
of Information Act request is presented to the City of Fayetteville requesting such
documents, SWEPCO will do everything possible to provide the documents in a prompt and
timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19-
101 et seq.). Only legally authorized photocopying costs pursuant to the FOIA may be
assessed for this compliance.
ARTICLE XVIII — FORCE MAJEURE
18.1 The term "Force Majeure" as used herein means causes beyond the reasonable control of
and without the fault or negligence of the Party claiming Force Majeure, including, but not
limited to, acts of God, labor disputes, flood, earthquake, storm, fire, lightning, epidemic,
war, riot, civil disturbance, sabotage, change in laws or applicable regulations subsequent to
the date hereof and action or inaction by any federal, state or local legislative, executive,
administrative or judicial agency or body, which, in any of the foregoing cases, by exercise
of due foresight such Party could not reasonably have been expected to avoid, and which,
by the exercise of due diligence, it is unable to overcome.
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From Southwestem Electric Power Compeuy
___ SOUTHWESTERN
ELECTRIC POWER
COMPANY
A unit ofAmerican Electric Power
18.2 The term "Force Majeure" shall not include any of the following:
(a) Any removal, reduction, curtailment or interruption of operation of any or all
Measures whether in whole, or in part, which removal, reduction, curtailment or
interruption is caused by or arises from the action or inaction of the Customer or any
third party, including without limitation, any vendor or supplier to Project Sponsor or
SWEPCO, unless, and then only to the extent that, any such action or inaction was
beyond the reasonable control of, and occurred without the fault or negligence of
such third party, and such third party, by exercise of due foresight, could not
reasonably have been expected to avoid such action or inaction;
(b) Any outage, whether or not due to the fault or negligence of SWEPCO or Project
Sponsor, of the Measures or SWEPCO's system attributable to a defect or
inadequacy in the manufacture, design or installation of the Measures that prevents,
curtails, interrupts or reduces the ability of the Measures to provide Peak Demand
Savings and/or Energy Savings; or
(c) Any reduction in Measured Peak Demand Savings and/or Measured Energy Savings
caused by or resulting from a Customer's termination or reduction of electrical
distribution service received from SWEPCO and the substitution therefor of electric
service from any other source.
18.3 The Parties shall be excused from performing their respective obligations under this
Agreement and shall not be liable in damages or otherwise if, and to the extent that, they
are unable to so perform or are prevented from performing by an event of Force Majeure,
provided that:
(a) The non -performing Party, as promptly as practicable after the occurrence of the
Force Majeure, but in no event later than fourteen (14) days thereafter, gives the
other Party written notice describing the particulars of the occurrence;
(b) The suspension of performance is of no greater scope and of no longer duration than
is reasonably required by the Force Majeure;
(c) The non -performing Party uses its best efforts to remedy its inability to perform; and
(d) As soon as the non -performing Party is able to resume performance of its obligations
excused as a result of the occurrence, it shall give prompt written notification thereof
to the other Party.
ARTICLE XIX — NONDISCLOSURE
19.1 If either Party hereto provides confidential information to the other in writing and identified as
such, the receiving Party shall protect the confidential information from disclosure to third
parties. Neither Party shall be required to hold confidential any information which (i)
• becomes publicly available other than through the recipient; (ii) is required to be disclosed
by a governmental or judicial order, rule or regulation; (iii) is independently developed by the
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From Southwestern Electric Power Compeay
___ SOUTHWESTERN
COMPAN
A unit of American Electric Power
receiving Party as evidenced by written records; or (iv) becomes available to the receiving
Party without restriction from a third party. These obligations shall survive expiration or
termination of this Agreement.
19.2 Should any person or entity seek to legally compel a receiving Party (by oral questions,
interrogations, requests for information or documents, subpoena, civil investigative
demands, regulation, statute or otherwise) to disclose any confidential information, the
receiving Party will provide the disclosing Party prompt written notice so that the disclosing
Party may seek a protective order or other appropriate remedy (including participating in any
proceeding to which the receiving Party is a party, which receiving Party will use its
reasonable business and legal efforts to permit). If, in the absence of a protective order, the
receiving Party is, in the opinion of its legal counsel, compelled to disclose the confidential
information, the receiving Party may disclose only such of the confidential information to the
person or entity compelling disclosure as is required by applicable law, order, regulation or
rule.
ARTICLE XX — MISCELLANEOUS
20.1 Project Sponsor will not assign, transfer or otherwise dispose of any of its obligations or
duties without the prior written approval of SWEPCO. No assignment of this Agreement shall
relieve Project Sponsor of any of its obligations under this Agreement. When duly assigned
in accordance with the foregoing, this Agreement shall be binding upon and shall inure to
the benefit of the assignee. Any assignment or transfer made without the express written
approval of SWEPCO will be null and void. No part of the work contemplated under this
Agreement may be performed by subcontractors without the prior written approval of
SWEPCO.
20.2 The rights and remedies provided by this. Agreement are cumulative and the use of any one
right or remedy by either Party shall not preclude or waive its right to use any or all other
remedies. Said rights and remedies are given in addition to any other rights the Parties may
have by law, statute, ordinance or otherwise. No waiver by the Parties hereto of any default
or breach of any term, condition or covenant of this Agreement shall be deemed to be a
waiver of any other breach of the same or any other term, condition or covenant contained
herein.
20.3 The Contract Documents constitute the entire Agreement between the Parties with respect
to the subject matter hereof and there are no ' express or implied warranties or
representations upon which any party may rely beyond those set forth therein. The
execution of this Agreement supersedes all previous agreements, discussions,
communications and correspondence with respect to such subject matter.
20.4 In the event any provision of this Agreement is held to be void, unlawful, or otherwise
unenforceable, that provision will be severed from the remainder of the Agreement and
replaced automatically by a provision containing terms as nearly like the void, unlawful, or
unenforceable provision as possible; and the Agreement, as so modified, will continue to be
in full force and effect.
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From Soaffiwortorn Electric Power Company
___ SOUTHWESTERN
COMPANY
A unit ofAmerican Electric Power
20.5 This Agreement will be governed by, construed and enforced in accordance with the laws of
the State of Arkansas excluding any conflict or choice of law rules that direct the application
of the laws of another jurisdiction, irrespective of the place of execution or of the order in
which the signature of the Parties hereto are affixed or of the place or places of
performance. Except for matters and disputes with respect to which the APSC is the sole
proper venue for dispute resolution pursuant to applicable law or this Agreement, the Parties
agree that the proper venue and jurisdiction for any cause of action relating to the
Agreement will be in Washington County, Arkansas and the Parties hereto submit to the
exclusive jurisdiction of the federal and state courts located in such county with respect to
such matters and disputes.
20.6 The duties, obligations, and liabilities of the Parties hereto are intended to be several and
not joint or collective. Nothing contained in this Agreement shall ever be construed to create
an association, trust, partnership or joint venture or impose a trust or partnership duty,
obligation, or liability on or with regard to either Party. Each Party shall be liable individually
and severally for its own obligations under this Agreement.
20.7 Project Sponsor shall not use SWEPCO's corporate name, trademark, trade name, logo,
identity or any affiliation for any reason, including soliciting customers for participation in its
project, without SWEPCO's prior written consent.
20.8 The Parties expressly agree that time is of the essence for all portions of this Agreement. In
no event shall the arbitration of any controversy or the settlement thereof delay the
performance of this Agreement.
20.9 The descriptive headings of the various sections of this Agreement have been inserted for
convenience of reference only and shall in no way define, modify, or restrict any of the terms
and provisions thereof.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by
their duly authorized representatives.
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From Southwestern Electric Power Compen.
___ SOUTHWESTERN
ELECTRiC ER
COMMNY
A unit ofAmerican Electric Power
Southwestern Electric Power Company
Name: Phillip Watkins
Signature: 2✓
Title: Manager, Consumer Programs
Date: /—
Page 20 of 20
Project Sponsor
Signature:
Title:
Date:
[CIIEP Final Project Application 20140616.docx]
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From Southwestern Electric Power Company