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Updated Plan To Reimburse Texas Retail Providers for Provision of Smart Thermostats, In-Home Monitors to Low-Income Customers Would Initially Cap Each REP's Participation; Limit Marketing to Existing Customers

December 1, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

An updated proposal under which Texas retail electric providers would be reimbursed for providing low-income customers with programmable communicating thermostats (PCTs) and in-home displays (IHDs) would initially limit how many customers for which each REP would be reimbursed.

As previously reported, the proposal would address about $19 million in funding to make programmable communicating thermostats (PCTs) and in-home displays (IHDs) available to low-income customers at no cost to the customer.

For providing the low-income customer (using the definition used for the SBF) with an eligible device, a TDU would reimburse a REP for the cost of a device up to a cap of $250, with an additional 25% for administrative costs, for a total reimbursement rate cap of $300 per device. For PCTs only, an additional $125 will be reimbursed to cover the cost of installation

The updated proposal provides that program expenditures will be administered on a "first come, first served" basis, except that, for the first 90 days, a participating REP's reimbursement will be limited to a maximum of the greater of 5% of the fund in each TDU area or a proportion of the fund available up to its residential ESI-ID percentage share of the residential ESI IDs for that TDU area per its last POLR filing pursuant to Project No. 42201, whichever is greater.

Additionally, the updated proposal would require each participating REP to affirm, among other things, that:

• The REP did not require a customer to enter into a contract or subscribe to a specific rate plan as a condition of receiving an in-home device.

• The REP marketed only to existing customers.

• The REP offered and provided devices to qualifying eligible customers in a nondiscriminatory manner

• Each customer to whom the REP provided a device affirmatively consented to receive the device.

• The REP provided full ownership of the device or devices to the customer.

• The REP provided the device or devices to the customer at no cost to the customer.

• If the customer moves out or switches away from the REP after receiving an in-home device through the Plan, the REP will not disable non-REP specific functionality on the device.

• The requested reimbursement amount for any device in the invoice is no more than the amount the REP paid for the device and the total amount of requested reimbursement does not exceed the reimbursement cap of $250 per device plus any additional administrative costs (capped at 25%) for a total reimbursement cap of $300 per device, plus $125 per device for professional installation of each PCT delivered

The updated proposal contemplates that the TDUs will begin administering the program on January 1, 2015.

The amount to be available at each TDU under the program would be:

• Oncor - $10,000,000

• CNP - $7,500,000

• AEP TCC - $800,000

• AEP TNC - $200,000

• TNMP - $125,000.

At least 90% of the program expenditures will be spent to reimburse retail electric providers for costs incurred in providing in-home devices, including the costs of devices, marketing, education, fulfillment, installation costs, technical support, and administration. Up to 10% of the program expenditures will go towards the TDUs' administrative costs for administering the program.

Project 36234

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