BEC Energy Saver Program Manual

Energy Saver Program Overview

The Energy Saver Program is voluntary and open to any BEC member. Members will receive Apolloware, an energy monitoring system to measure the energy efficiency of their home or business. BEC will provide energy efficiency suggestions based on an Apolloware analysis. Energy Improvements installed in any of the three missions must create energy cost savings or energy use savings. BEC covers the upfront cost of the energy improvements. Participating members repay the costs, with low interest rates, through their monthly electric bill.

Apolloware Saver

BEC will install Apolloware at your home or business. Apolloware is an energy-monitoring meter that will allow you to see your energy usage in real time. BEC will provide a report of the analysis and energy efficiency suggestions within 45 days of installation.

BEC will provide the following energy improvement:

• Smart Home Thermostat (ecobee)

This program can save you an estimated 10% per month on your electric bill. Access to the energy monitoring software charge will be assessed monthly on your electric bill.

Program Cost

Energy Saver

Based on your Apolloware analytics, eligible improvements are recommended to improve the energy efficiency of your home or business. Some recommended eligible energy improvements may include:

• Energy Audit (Blower Test included)

• Door Upgrades

• Improved Insulation

• HVAC and Furnace Upgrades

• Window Replacement

• Pool, Spa, and/or Water Well Pump Upgrades

• Fixed Asset Appliance Upgrades (Electric Water Heater and Dishwasher)

Solar Saver

Work with BEC to conduct a site visit, size your system(s), and install the system(s) for the following eligible energy improvements:

• On-Grid Renewable Energy Generation (Solar)

• Distributed Battery Storage

• EV Charging Infrastructure

• EaaS: Battery Storage Program

There is a monthly charge associated with Mission 1 – Apolloware Saver that covers the cost of the Apolloware hardware and access to monitor the energy analytics for 10 years, along with BEC’s Smart Thermostat Program. These Energy efficiency improvement costs are itemized by Mission, which is amortized over a period of up to 10 years and is repaid by the participating member through their monthly electric bill. With the Energy Saver and Solar Saver missions, members pay for the Energy Improvements plus a one-time program fee and a low annual interest rate.

Section 1 — Energy Saver Program

Welcome to the Energy Saver Program. We hope that by engaging and learning with us in the program, you will enjoy a more comfortable home or commercial property and a healthier financial bottom line. This Program Manual summarizes everything you need to know about the program, including what the program is, how you can participate in it, and what you can expect.

Objectives

The Energy Saver Program improves the cooperative’s sustainability through energy improvements, to your home or business by providing energy monitoring and analytics, energy efficiency, on-grid renewable energy generation (through behind-the-meter solar), distributed storage, and EV charging infrastructure.

How It Works

The Energy Saver Program is voluntary and open to any BEC member that wants to participate (called a participating member). Participating members receive energy improvements (EIs) installed in their home or commercial property. These EIs are grouped into three missions and are designed to reduce the amount you pay for energy and/or reduce your energy use.

BEC finances the cost of the EIs and you, as the participating member, pay the costs through your monthly electric bill. BEC calculates this charge, called the Energy Saver Program Charge, and adds it to your monthly electric bill as a separate line item for each completed mission. The adjacent chart shows how the financing works.

Purpose

How Our Program Works

Mission 1 — Apolloware Saver

Contact BEC to sign up for the program. BEC will review your eligibility. To begin Mission 1, eligible members will sign an Energy Saver Purchase Agreement and schedule the Apolloware install along with the installation of the Smart Thermostat (ecobee).

Apolloware is required to participate, and we provide the option to join BEC’s Smart Thermostat Program. Apolloware reveals crucial EIs that can cut energy use, save money, and improve the comfort of the home or commercial property.

Mission 1 Energy Improvements

Apolloware Monitoring and Analysis –

BEC installs the Apolloware energy monitoring meter in the members electrical panel, which requires an internet connection (with the possible addition of ethernet cables and other devices). The member will be responsible for any additional cost and labor required to facilitate communication. The electrical panel must be up to National Electric Code for Mission 1 to be completed.

Apolloware provides participating members with access to real-time energy consumption data. Access your data on your smartphone or online and receive weekly emails containing your energy consumption data. Apolloware measures the main load of the property (e.g., the total energy consumed by the home or commercial property), as well as sub-loads (e.g., the individual circuits for HVAC, electric water heater and more). If there are multiple dwellings on the same electric meter, each dwelling will require Apolloware be installed (fees apply) to qualify for EIs.

You receive a 10-year subscription to the Apolloware energy data service. Your data is kept private and secure and can only be accessed by you or BEC. You are still eligible to participate in other BEC programs, access credits from generating excess solar power

exported to the BEC grid during a peak event and received appliance monitoring for appliance failure and maintenance issues.

Participating members are encouraged to monitor their energy usage through Apolloware and apply energy saving behavior to daily life.

Smart Home Thermostat –

Monitor and schedule your home or commercial property heating and cooling with a smart thermostat provided by BEC to increase energy efficiency.

BEC is offering a residential peak control Smart Thermostat Program to provide qualifying members the opportunity to receive incentives for participating. The Terms and Conditions set the enrollment requirements, program procedures and details related to incentives members may receive. By signing and joining, the member agrees to comply with and be bound by the Terms and Conditions.

For the Apolloware Saver program, you only pay the cost of the Apolloware monitoring. These costs are called the Energy Saver Program Charge. The Energy Saver Program Charge is amortized over a period of up to 10 years and is paid through your monthly electric bill. More information on estimated costs and savings are in Section 3.

Mission 2 — Energy Saver

The Energy Saver Mission consists of weatherization and fixed asset appliance upgrades. BEC recommends which upgrades are ideal for your home or commercial property and you select the improvements you want based on your Apolloware analysis.

BEC provides contact information for approved independent contractors. The member works with the contractor to install the approved energy improvement. Mission 1 must be completed before any payments will be issued to the contractor for Mission 2.

Mission 2 Energy Improvements

The following appliances and EIs may be eligible for this mission and on-bill financing:

1. Energy Audit (Blower Door Test Included)

2. Door upgrades

3. Improved insulation

4. HVAC/furnace upgrades

5. Window replacements

6. Pool/spa/water well pump upgrades

7. Fixed asset appliance upgrades (Electric Water Heater and Dishwasher)

For Mission 2, you pay the cost of the EIs plus a one-time program fee and low annual interest. These costs together are the Energy Saver Program Charge. The Energy Saver Program Charge is amortized over a period of up to 10 years and is paid through your monthly electric bill. More information on estimated costs and savings are in Section 3.

Mission 3 — Solar Saver

Solar Saver consists of a solar system, distributed storage or Battery Storage Program, and electric vehicle (EV) charging infrastructure. After completing the Solar Saver Mission and BEC’s required education on solar, you will work with BEC or an approved third-party installer to conduct a site visit, size the EIs, and install the EIs. Mission 1 must be completed before any payments will be issued to the contractor for Mission 3. A brief description of the EIs are below:

On-Grid Renewable Energy Generation –

BEC installs a rooftop or ground mounted solar PV system. The system is installed behind the meter, allowing you to reduce your energy consumption by producing electricity on-site at your home or commercial property.

Distributed Storage –

BEC or an authorized third-party installer installs a stationary, rechargeable battery for storing the electricity generated from the solar system; allowing the member to utilize time-of-use load shifting, and back-up power. Battery storage cannot exceed 80% of the peak kWh usage within the last 12 months.

Battery Storage Program (Subscription Service) –

With the purchase of a solar system, you can

join the Battery Storage Program subscription for a low monthly rate. This program includes whole-home battery storage to provide backup power during a grid outage.

EV Charging Infrastructure –

BEC or an authorized approved independent contractor installs a charger for residential or commercial members.

For Mission 3, you pay the cost of the EIs plus a one-time program fee and low annual interest. These costs together are the Energy Saver Program Charge. The Energy Saver Program Charge is amortized over a period of up to 10 years and is paid through your monthly electric bill. More information on estimated costs and savings are in Section 3.

In order to sign up, you can fill out the interest form on our website or call Energy Services at 866.226.3372. Participating in the Energy Saver Program does not prevent you from participating in any other BEC programs, rebates or incentives.

Section 2 — Participating Members

The following chart shows the seven steps to reduce your energy costs and/or energy use through the Energy Saver Program.

BEC estimates that most EI installations will occur within sixty (60) days of verifying your eligibility. Estimated time does not include supply and demand restrictions.

Eligibility Criteria

Any homeowner, landlord, or commercial property owner that is a BEC member who meets the following criteria may participate:

• New BEC members who are exempt from paying a consumer deposit when establishing electric service are eligible for the program.

• Twelve consecutive months of electric service with BEC at the service location.

• No more than one late payment on a BEC electric bill within the last 12 months.

• No more than one returned check in the last 12 months.

• No history of service disconnection for non-payment within the last 12 months.

• Member must have an internet connection (modem) located in the home/business for the Apolloware installation.

No credit score or annual income is required since the Energy Saver Program Charge is tied to the meter and not the member.

Landlords are eligible for all mission as long as the BEC service location is in their name while they owe an Energy Saver Program Charge.

Commercial members must meet same criteria as residential members plus have 24 months of electric billing history with BEC at the service location.

There are different ways to sign up. Fill out the interest form on our website or call Energy Services at 866.226.3372.

Each additional loan to the member is subject for a current eligibility criteria review.

Section 3 — Energy Saver Program Charges

The Program Charge

BEC calculates your Energy Saver Program Charge based on the missions you complete, the EI costs, and applicable program charges. Each completed Energy Saver Program Mission charge is billed and paid through your monthly electric bill as a separate line item.

A sample monthly electric bill below is shown with the Energy Saver Program Charge circled.

The Energy Saver Program Charge is calculated using the following formula:

Energy Saver Program Charge = Cost of EI(s) + Applicable Program Charge(s) + Annual Interest / 120 months. 123

Apolloware Saver Cost

The following example shows the estimated costs and savings for completing Mission 1 of the Energy Saver Program.

Participating members can anticipate an estimated monthly savings of 10%.

Minimum

Prior to installation, BEC verifies that all EIs provide either energy cost or energy use savings, meaning all EIs must reduce your kilowatt-hour energy consumption or your electric bill (annually or over the life of the improvement). The estimated energy and/or cost savings are estimated by the Apolloware platform. BEC then verifies the energy and/or cost savings by measuring the home or commercial property energy consumption before and after the EIs are installed.

Program Charge

Mission

are expected to produce energy cost savings. Certain Mission 2 EIs will more likely produce energy use savings rather than energy cost savings due to the monthly loan charges. For Mission 3 on-grid renewable energy generation, BEC uses the member’s last twelve months consumption usage to determine whether the energy savings are sufficient to cover the installation costs. All calculations are completed before installation. These calculations are not intended as a guarantee of the energy savings on the electric bill.

Members energy usage habits can help reflect the savings incurred. The program charges are outlined in the chart above.

Estimated savings are calculated using the following formula:

Once EIs are installed for any of the three missions, BEC takes steps to add the Energy Saver Program charges to your monthly electric bill. Participating members will see the Energy Saver Program charges on the first billing cycle after each installation is completed.

1

2

Member initiates Apolloware Saver Mission install.

3

BEC calculates the Energy Saver Program Charge and the date when charges begin.

4

BEC bills the participating member.

Member initiates Energy Saver Mission installs. (Optional)

BEC adds Energy Saver Mission charges to member’s bill.

Member initiates Solar Saver Mission installs. (Optional)

BEC adds Solar Saver Mission charges to the member’s bill.

Section 4 — Project Installation

Overview

To verify installation, BEC completes and maintains the following list of forms:

• Mission 1 Recommended Energy Improvements Report

• Mission 2 Member Completion Form

• Mission 3 Member Completion Form

Each form summarizes which EIs were installed in the home or commercial property and is signed by you, and/or System Owner (if applicable), certifying that all work is compliant with the sales contract, applicable codes, and ordinances, and all permit requirements.

BEC Energy Services Department

BEC installs Apolloware and provides the Els. BEC may oversee subcontractors who specialize in Mission 1. BEC or its subcontractor must have the following qualifications to perform installations:

• Proficient in the knowledge and skills of building energy efficiency

• Current and in good standing with BEC as a reputable contractor.

• Subcontractors will add BEC as an additional insured on their Certificate of Insurance (COI).

Safety Protocols

BEC and subcontractors shall maintain proper safety and hygiene protocols during all project installations. All EI installations occur inside and outside the home or commercial property.

To mitigate any coronavirus 19 (COVID-19) risks, BEC and subcontractors are following Centers for Disease Control and Prevention guidelines.

Independent Contractor

Independent contractors must have the following qualifications to perform installations:

• Proficient in the knowledge and skills of building energy efficiency

• Maintains adequate capacity and resources to engage borrowers.

• Current and in good standing with BEC as a reputable contractor.

• Subcontractors will add BEC as an additional insured on their Certificate of Insurance (COI).

**BEC reserves the right to remove independent contractors from the approved contractor list for any reason.

Section 5 — Terms and Conditions

Rural Utilities Service / Rural Energy Savings Program

BEC offers the Energy Saver Program thanks to the Rural Utilities Service (RUS) and its Rural Energy Savings Program (RESP). RUS and the RESP program support the expansion and modernization of America’s rural electric infrastructure.

RUS awarded BEC a RESP loan to provide low-cost funding to support demand-side management, energy efficiency, energy conservation, on-grid renewable energy generation, and distributed storage.

Program Charge

Participating members pay the Energy Saver Program Charge along with other Electric Service Charges on their monthly electric bill. Each completed Energy Saver Program Mission Charge appears as a separate line item on the bill.

Financing Terms

The following are the terms, guidelines, and collection standards for the Energy Saver Program.

Terms

• Term of all Energy Saver Program Charges is 10 years or less.

• Residential and commercial members are eligible.

• No early payment penalty for Energy Saver Program Charges that are paid in full before the 10 years. For additional payments or early pay off towards your Mission(s), please contact Bandera Electric.

• A low annual interest rate is applied per loan to Energy Saver Program Charges

Charges

BEC assesses a one-time program charge of the EI cost for Mission 2 and Mission 3 per loan, to cover the cost of administering the Energy Saver Program.

Guidelines

Monthly payments towards the member’s account will prioritize as follows: Energy Saver Program Charge(s), Electric Service Charges and Fiber Service Charges.

If a member’s payment does not cover the cost of the total billed amount, the amount collected will be applied first to the principal.

In the case of non-payment, BEC has the authority to disconnect the member’s service for non-payment under current rules in the BEC tariff.

Promise to Pay

Member promises to repay BEC the Energy Saver Program Charge in equal monthly installments as outlined on the signed Mission On-Bill Obligation documentation. The first Monthly Payment of Member’s On-Bill Obligation will appear within thirty (30) days from the completion date of the EI on the Member’s BEC utility bill.

Down Payment

If the independent contractor requires a down payment, BEC will request approval from the member prior to sending. If the member authorizes the down payment and cancels prior to completion, any monies paid in advance plus $250 would need to be repaid back to BEC within 30 days. Any monies remaining unpaid after 30 days will be added to the member’s next monthly electric bill.

Partial Payments

If Member is unable to make a full payment of the Energy Saver Program Charge in any given month, payment arrangements may be made at BEC’s sole discretion. Partial payments will be treated as late payments and will be assessed late payment charges under the BEC Tariff and the initiation of the BEC’s collection processes and potential disconnection of electrical service in accordance with section III of the BEC tariff.

Pre-Payment

If you wish to pre-pay your Energy Saver Program Charge, please contact BEC, so the payment can be applied directly to the Energy Saver Program Account and not your Electric or Fiber/ Telephone Account.

If the Energy Saver Program Charge is paid in full prior to the original contracted months, the homeowner will still have access to the program for a total of 120 from the original start of the program.

Overpayment

Overpayment occurs when the participating member pays a sum greater than the Energy Saver Program Charge, the Electric Service Charge, and any other past due charges. In the event of overpayment, the overpayment shall show as a credit on the participating member’s account.

When the next monthly electric bill is issued, the credit shall be applied first to the Energy Saver Program Charge and then to the Electric Service Charges. If the member wants to make an extra payment towards their loan, they will need to contact BEC for specific instructions.

Transferability of Energy Saver Program Charges

The Energy Saver Program Charge may remain with the meter or be paid off before the property is sold.

The Member shares the BEC Seller’s Disclosure Form with the prospective purchaser explaining the Energy Saver Program Charge.

The purchaser becomes a Member and execute the Seller’s Disclosure Agreement indicating the purchasing Member’s agreement to continue paying the Energy Saver Program Charge or have it paid off before closing.

In the event the property and Energy Saver Program Charge is transferred to the new owner, this Agreement shall be terminated. BEC will recover the cost of the EIs by resuming the monthly payment with the new member until the end of the Energy Saver Program charge is satisfied.

The terms of the Tariff for Electric Service section 309 apply to service at that meter until the Energy Saver Program Charge is recovered.

Since the Energy Saver Program Charge is assigned to the meter, any succeeding member that receives service at a location where EIs were installed under the Energy Saver Program must continue paying the Energy Saver Program Charge from the point at which they have established service with the Cooperative.

End of Energy Saver Program Charge

The Energy Saver Program Charge ends A) at the end of the contracted months when the total amount of the Energy Saver Program Charge has been billed, B) all loans are paid off prior to the contracted months billed, or C) when service is disconnected/transferred, and remaining balance is paid in full.

Collection Standards

In the event of member default, any payment by the member goes first to the Energy Saver Program Charge then to the Electric Service Charges.

Delinquency

Member is responsible for paying its bills from BEC on time and in full, which include Electric/Fiber Service Charges and the Energy Saver Program Charge. Non-payment of the bill may result in the assessment of late payment charges under the BEC Tariff and the initiation of the BEC’s collection processes and potential disconnection of electrical service in accordance with the BEC Tariff.

The process for re-establishment of service after disconnection shall be consistent with BEC’s existing electric utility practices.

Returned Payments

BEC may require payment of a Returned Check Charge for any check returned from Member’s financial institution unpaid. The Returned Check Charge will also apply to any forms of payment that are subsequently dishonored in accordance with the BEC Tariff.

Landlords

Landlords are eligible for the Energy Saver Program. The Landlord must be a member and the BEC service location must be in the name of the Landlord throughout the entirety of the Energy Saver Program Charge. Landlords are not eligible to transfer the service location to a tenant during the obligation period of the Energy Saver Program Charge.

If the service location is sold to a new homeowner, the member must follow the same procedure of the Transferability of Energy Saver Program Charges.

Property Vacancy

Property vacancy occurs when electric service to the premise is terminated or suspended. In the event of property vacancy, no utility bill is being generated, and therefore no Energy Saver Program Charge can appear on a utility bill. The Energy Saver Program Charge resumes once the property is occupied and electric service is resumed.

Insurance, Warranty and Quality Control

Insurance

Insurance shall be maintained by BEC, subcontractors and any independent contractors. Participating members are advised to include the on-grid renewable energy system (the solar/battery storage system) in their homeowners or property insurance.

Warranty

Apolloware shall be maintained and serviced when and if needed by BEC.

The smart thermostat by ecobee is covered by the manufacturer’s warranty.

All Mission 2 and Mission 3 EIs (e.g., efficiency measures, appliance upgrades, distributed storage, on-grid renewable energy generation, and EV charging infrastructure) are covered by the manufacturers, subcontractor and independent contractors’ warranties.

Section 6 — Glossary of Terms and Acronyms

Apolloware – Apolloware, BEC’s cloud-based distributed energy resource management system provides real-time energy consumption and solar generation information. Apolloware data is owned by BEC. BEC never discloses Apolloware data.

BEC – Bandera Electric Cooperative, Inc.

Blower Door Test – a test to determine the amount of air leakage in the home.

Energy Audit – an analysis of the member’s current energy usage or energy costs, with the goal of identifying energy efficiency opportunities. The activity results in an objective, standards-based technical report containing the following:

• Recommended energy efficiency measures to reduce member’s energy costs or energy consumption (all measures shall have a payback period of ten or less years).

• Analysis of the estimated benefits and costs associated with each recommendation.

The energy audit shall meet professional and industry standards and shall correspond to the complexity of the project. The energy audit shall be performed by a qualified individual with credentials and expertise as directed by the RUS Rural Energy Savings Program.

Energy Efficiency – using less energy to perform the same task.

Energy Efficiency Measures – cost-effective, commercially-available technologies to increase energy efficiency, including on-grid renewable energy generation or distributed storage.

Energy Improvements (Els) – any energy efficiency measure eligible to be installed and financed by the Energy Saver Program. A list of eligible EIs is included in this program manual (Section 1).

Electric/Fiber Service Charges – all charges on the monthly electric bill that are not related to the Energy Saver Program.

Energy Saver Program Manual –the Program Manual may be amended from time to time and governs the Energy Saver Program, its processes, program design, and operation.

HVAC – heating, ventilation, and air conditioning.

Participating Member – the BEC member who is enrolled in the Energy Saver Program.

Photovoltaic – Photovoltaic, abbreviated “PV,” is the production of electricity with a surface exposed to light, commonly known as solar energy.

Rural Energy Savings Program – the loan program provided by the Rural Utilities Service for the specific purpose of improving rural America through energy efficiency and conservation.

Rural Utilities Service – Rural Utilities Service or RUS is the federal agency that falls under the United States Department of Agriculture. RUS’ mission and focus is the betterment of rural America through water, electric, and telecommunications programs.

Smart Thermostat – an ecobee HVAC thermostat.

Time-Based Usage – a metering method of measuring a member’s energy consumption and charging them a specified rate based on what time of day the energy is consumed.