ComEd

Request for Proposals

Third-Party Electric Energy Efficiency Programs

For Ameren Illinois Residential and Small Business

Customers

Illinois Power Agency Electricity Procurement PlanJune 1, 2017 May 31, 2018

Issued by:

Issued:

March 11, 2016

Proposals Due:

April 7, 2016 at 4:00pm (Central Time)

Coordinated by Applied Energy Group, Inc.

211 Broad Street, Suite 206

Reb Bank, NJ 07701

This document and its supporting materials contain Ameren confidential information. The information contained herein remains Ameren property and shall not be distributed without the express written consent of Ameren. It is for proposal use only and is not to be disclosed, reproduced or shared for any other purpose.

Table of Contents1.0 Introduction and Summary31.1Program Proposal41.2Program Term51.3TRC Test51.4Customer Segment61.5Administration of Programs71.6Programs Are Subject to Review, Approval, Contract and Regulation71.7Target Market82.0 Program and Bidding Guidelines92.1Program Parameters92.2Program Evaluation, Accountability and Obligation102.3Marketing122.4 Program Payment and Budget Design122.5 Duplicative or Competing Programs142.6 Program Integration152.7 Program Operations162.8 Policies and Procedures172.9 Exceptions and Disclosures182.10Modification of Request for Proposal182.11RFP and Program Development Estimated Timeline182.12Intent to Bid192.13Bidders Conference Call192.14RFP Questions, Inquiries, Clarifications192.15RFP Due Date192.16Bid Submission Items20Contract Award24Attachment A: Detailed Efficiency Measure Information25Attachment B: Critical Items Certification26Attachment C: General Company Information Form27Attachment D: Financial Data28Attachment E: Services Agreement Terms and Conditions28Attachment F: Information Access and Cyber Security28Attachment G: Diverse Supplier/Subcontractor Utilization28Attachment H: Program Template28Attachment I: Ameren Corporate Branding28Attachment J: 220 ILCS 5/16-111.5B Select Provisions Relating to Electric Energy Efficiency Procurement29Attachment K: References31Attachment L: 2016 AIC Potential Study (DRAFT)31

Request for Proposals

Third-Party Electric Energy Efficiency Programs

Illinois Power Agency Electricity Procurement Plan

June 1, 2017 May 31, 2018

1.0 Introduction and Summary

Ameren Illinois Company (AIC) issues this Request for Proposal (RFP) pursuant to Section 16-111.5B of the Illinois Public Utilities Act, 220 ILCS 5/1-101 et seq. (the Act).[footnoteRef:1] This legislation requires that Illinois electric utilities conduct an annual solicitation process for purposes of requesting proposals from vendors for third-party administered electric energy efficiency programs. The results of the solicitation are included in an assessment provided by the utility to the Illinois Power Agency (IPA) for new or expanded[footnoteRef:2] cost-effective energy efficiency programs. Pursuant to the Act and the Final Orders of the Illinois Commerce Commission (ICC or Commission), this RFP solicits proposals for new or expanded electric portfolio programs that would capture achievable cost-effective electric savings, in accordance with the terms and provisions of the Act and the related findings and orders of the Commission. [1: Parties should reference the most current version of the statute, which may be found at http://ilga.gov/legislation/ilcs/fulltext.asp?DocName=022000050K16-111.5B though pertinent sections for this RFP are included as Attachment J for convenience purposes only. ] [2: For purposes of the solicitation, expanded means programs that are increases of previously approved programs either from prior solicitations or from the other energy efficiency programs administered by the utility pursuant to Section 8-103 of the Act (as described in more detail later in this document).]

Applied Energy Group, Inc. (AEG) is coordinating the RFP process on behalf of AIC. AEG is the main contact for bidders and will be performing analysis on bids submitted for consideration.

The following is a summary of this RFP. Details and instructions related to these items follow this section. Bidders should carefully review these guidelines and seek guidance or clarification, as appropriate.

1. Bidders should propose electric energy efficiency measures and programs that acquire cost-effective achievable efficiency in net kWh savings for all AIC residential customers and for all business customers with a demand of less than 150 kW.

2. The program term to implement programs should be one year, two years or three years, starting on June 1, 2017 and ending no later than May 31 of the concluding year as applicable. For example, the program term for a three year program would commence on June 1, 2017 and end May 31, 2020.

3. AIC will conduct an assessment of the proposals, in part, based on an analysis of cost-effectiveness. Bidders are not expected to perform cost-effectiveness analysis, but must provide the inputs necessary for the analysis to be performed. The program at least must pass the total resource cost (TRC) test with a benefit cost ratio greater than 1.0, as calculated in a manner consistent with the criteria established by Illinois law. AIC may calculate program TRC test values for one, two and three year programs annually.

4. Public sector customers who meet the criteria established in Section 16-111.5B[footnoteRef:3] are eligible for participation in the proposed programs submitted under this RFP. As this customer segment may be served by energy efficiency programs administered by the Department of Commerce & Economic Opportunity (Department of Commerce), the evaluation of any such bids will be coordinated with the Department of Commerce in order to properly screen for duplicative and competing proposals. The definition of duplicative/competing programs and a list of factors considered in the analysis used to identify duplicative and competing programs are discussed in Section 2.5. [3: The Act defines such customers as all retail customers whose electric service has not been declared competitive under Section 16-113 of this Act and who are eligible to purchase power and energy from the utility under fixed price bundled service tariffs, regardless of whether such customers actually do purchase such power and energy from the utility. (220 ILCS 5/16-111.5B (a)(3)(c))]

5. The proposed programs are only for those customers in customer classes whose demand is less than 150 kW and who are classified as Residential or Small Commercial customers or may be served by energy efficiency programs administered by the Department of Commerce.

6. The purpose of this RFP is to procure energy efficiency programs that acquire electric savings in accordance with Section 16-111.5B of the Act. Accordingly, any programs or measures designed to acquire gas savings will not be accepted. However, if an electric program design captures incidental gas savings through multi-fuel measures, it may be considered. Such savings will be considered for purposes of the TRC test.

7. All proposed programs will be subject to review by AIC and the IPA and approval by the Commission through a docketed proceeding, which AIC anticipates will begin in September 2016 and conclude in December 2016. All proposed programs will also be subject to the findings and orders of the Commission, as issued in that docketed proceeding, as well as subsequent contract negotiations with AIC.

Program Proposal

As required by Section 8-103 of the Act, AIC is currently in its eighth program year (PY8) of administering a comprehensive portfolio of energy efficiency programs across all customer classes.[footnoteRef:4] The proposed programs that result from this bidding process will be considered by the IPA for inclusion in its Electricity Procurement Plan pursuant to Section 16-111.5B of the Act. The IPAs Electricity Procurement Plan will be submitted to the Illinois Commerce Commission for approval, and, if approved, will be implemented during program year 10. [4: Background information about the current energy efficiency plan, other programs in Illinois, and related documents can be found in Attachment K.]

The Illinois Stakeholder Advisory Group (SAG) website includes historical information for programs implemented under Sections 8-103 and 16-111.5B of the Act. Information available at the SAG website includes Evaluation Documents, Net-to-Gross Framework, the Technical Reference Manual (TRM) and Quarterly Reports to the SAG. This information can be found at http://www.ilsag.info/home.html.

Program Term

The program term to implement programs should be one year, two years or three years, starting on June 1, 2017 and ending no later than May 31 of the concluding year as applicable. For example, the program term for a three year program would commence on June 1, 2017 and end May 31, 2020.

TRC Test

A minimum requirement for approval is that a program must pass the TRC test with a benefit cost ratio greater than 1.0, as calculated in accordance with the criteria set forth in the Act, any pertinent Commission orders, and as determined by AIC.

Bids must reflect both a total program cost and a $/net kWh. Costs provided in the bid must be all inclusive of total program costs (such as incentives, marketing, customer care, labor including subcontractors, material costs, program management, reporting, etc.). If the program proposed receives revenue from any source, the source and expected amount of revenue should be included in the bid proposal. AIC will perform its own TRC analysis to determine if the bidders program meets cost effectiveness requirements, but such determinations are subject to Illinois Power Agency review and ICC approval.

Bidders are responsible to comply with the applicable provisions of the Act. However, for reference purposes, the current definition of the applicable TRC test (found at 20 ILCS 3855/110) is set forth as follows:

"Total resource cost test" or "TRC test" means a standard that is met if, for an investment in energy efficiency or demandresponse measures, the benefitcost ratio is greater than one. The benefitcost ratio is the ratio of the net present value of the total benefits of the program to the net present value of the total costs as calculated over the lifetime of the measures. A total resource cost test compares the sum of avoided electric utility costs, representing the benefits that accrue to the system and the participant in the delivery of those efficiency measures, as well as other quantifiable societal benefits, including avoided natural gas utility costs, to the sum of all incremental costs of enduse measures that are implemented due to the program (including both utility and participant contributions), plus costs to administer, deliver, and evaluate each demandside program, to quantify the net savings obtained by substituting the demandside program for supply resources. In calculating avoided costs of power and energy that an electric utility would otherwise have had to acquire, reasonable estimates shall be included of financial costs likely to be imposed by future regulations and legislation on emissions of greenhouse gases.

Bidders must perform market research and apply their expertise to determine the maximum amount of cost-effective savings they can achieve. Bidders can also refer to the final 2013 AIC Potential Study for additional guidance on market opportunity which can be found at http://www.ilsag.info/potential-studies.html or a draft of the 2016 AIC Potential Study (Attachment L).

Bidders should be aware that AIC will include additional costs to administer the program(s) associated with the following categories: portfolio awareness marketing, portfolio awareness education, evaluation, measurement and verification (EM&V), and general administration.[footnoteRef:5] [5: See Section 7.1.5.2 of the 2016 IPA Procurement Plan for a discussion of administrative costs (http://www.illinois.gov/ipa/Documents/2016-IPA-Procurement-Plan-FINAL.PDF). Note that these prior estimates of administrative costs are not necessarily what costs will be used for the consideration of proposals received through this solicitation. ]

AIC will first perform the TRC calculation at the program level. If a program has a TRC value of greater than 1.0, AIC will then review the measures to determine whether there are any cost ineffective measures planned to be included in the cost effective program. To the extent any cost ineffective measures are determined, AIC will work with the bidder to either remove or minimize the use of these measures.

During the bid review process, AIC will provide feedback to individual bidders on any changes made to the TRC cost-effectiveness inputs and assumptions provided in the original proposal. AIC reserves the right to request additional documentation or evaluations and to make reasonable adjustments to values provided by the bidder. In such cases, AIC will provide the proposed adjustments to the bidder for review.

For multi-year bids, AIC intends to analyze the TRC values at both the annual year and multi-year terms.

Bidders should also be aware that the proposed size for selected programs may be subject to change and, accordingly, bidders should state budget ranges for the program enabling scaling of the budget/program higher or lower. Any changes to net kWh savings and budget shall be subject to mutual agreement by AIC and bidder.

Programs that are approved by the ICC will be evaluated for cost-effectiveness again prior to contracting and implementation.

Customer Segment

The proposed programs should be for those customer segments with demands less than 150 kW currently served by AIC through its approved energy efficiency plan under Section 8-103 of the Act (AIC EE Plan), as well as those AIC customer segments currently served by energy efficiency programs offered by the Department of Commerce through its approved energy efficiency plan under Section 8-103 of the Act (Department of Commerce EE Plan).[footnoteRef:6] A vendor implementing an electric energy efficiency program for the Department of Commerce that believes such program could be expanded in a manner that would satisfy the requirements of this RFP is encouraged to propose such an electric program expansion by bidding into this RFP, subject to this RFP Section 2.5 Duplicative or Competing Programs. The growth in the program would be contracted through AIC and the savings and costs would be tracked separately from the original program with the Department of Commerce. The Department of Commerces grantees/subcontractors that bid electric energy efficiency program expansions into this RFP must demonstrate that adequate tracking mechanisms are in place to separately track expenses and savings for the original Department of Commerce program versus the expanded Section 16-111.5B program. [6: The Department of Commerce provides electric energy efficiency programs for units of local, state, and federal government, municipal corporations, public school districts, community colleges, state universities, and programs targeted at low income households pursuant to the Act or prior Commission orders. Bids that include programs that will be marketed to customer segments currently served by the Department of Commerce should be clearly identified as such in the program marketing strategy.]

Certain AIC customer data will be available to program vendors subject to local, state and federal law, including the orders of the Commission, as well as AICs own policies on electronic data security and interchange. Proof of compliance may be required during the bid analysis.

Administration of Programs

While cost-effective programs must be included by the IPA in its Electricity Procurement Plan for consideration and approval by the Commission, neither the IPA nor the ICC contracts with bidders or administers approved programs. AIC will negotiate contract terms with approved bidders and, subject to agreement, administer any accepted programs through its prime implementer, currently Leidos Engineering LLC.

Programs Are Subject to Review, Approval, Contract and Regulation

By making a submittal, bidder acknowledges its understanding of the process through which energy efficiency programs are included in an IPA Electricity Procurement Plan pursuant to Section 16-111.5B of the Act. The IPA procures electric supply on behalf of AIC customers that are on bundled service. This supply is then delivered by the AIC distribution system. AIC provides a submission of its customers estimated supply needs to the IPA by July 15 of each year (including the results of this RFP as part of an assessment of how to achieve all cost-effective energy efficiency). The IPA develops its draft Electricity Procurement Plan, and after a period of public comment and revision, files that Plan with the Commission for approval. Through a docketed administrative proceeding, that Plan is rejected, approved, or approved as modified by the Commission prior to December 31 of that same year, subject to potential rehearing and appeal. The IPA then prepares a Final Plan to reflect any changes made by the Commission and releases that Final Plan after the new year. The approved Electricity Procurement Plan is then implemented starting June 1 of the new year.

Bidder acknowledges that at the time of the AICs submittal to the IPA by July 15, 2016, AIC will not have an approved AIC EE Plan for the plan period commencing June 1, 2017. Accordingly, AIC reserves the right to develop and propose programs that could be duplicative or competing to bidders programs as part of its AIC EE Plan filing by September 1, 2016 pursuant to Section 8-103 of the Act. Accordingly, acceptance and implementation of those programs will be subject to the Commissions approval, which is expected within five months of the AIC EE Plan filing.

Bidder further acknowledges and agrees that the ultimate approval or rejection of programs is a determination made by the Commission. Per the statue, all bids received are also shared with the IPA. AIC cannot guarantee the outcome of this process or any other future regulatory changes to proposed programs. Bidders submit proposals that may be subject to changes in regulations and laws, including any formal regulatory process. AIC makes no warranties to potential bidders in any way with respect to the proposed programs.

Target Market

Proposed programs should be designed for those customers whose demand is less than 150 kW and who are classified as Residential or Small Commercial customers pursuant to AICs rate tariffs on file with the Commission. Programs will be available to all applicable AIC customers, regardless of how they have elected to receive their electric supply (e.g., default service, hourly pricing, or from an Alternative Retail Electric Supplier, or a municipal aggregation program).

Bidders should describe how their approach to program delivery and implementation of energy efficiency measures will verify that customers receiving the energy efficiency measures are actually AIC electric customers whose demand is less than 150kW. If bidders program delivery and implementation approach cannot verify energy efficiency measures are delivered to AIC electric customers whose demand is less than 150kW, bidders should describe the steps the bidder will take to minimize delivery of energy efficiency measures to non-AIC electric customers.

Proposed individual programs must be designed to serve a distinct target market (i.e., Residential or Small Commercial customers).

For reference purposes, the following sets forth an estimate of the volume and usage of Residential and Small Commercial customers that pertain to the programs for this RFP:

Estimates for June 1, 2016 May 31, 2017

CustomersTotal MWh

Total Electric Residential Retail Service1,062,00011,600,000

Total Electric Small Business Retail Service156,000 5,400,000

2.0 Program and Bidding Guidelines

A bidder may propose more than one program, but each distinct program must be provided as a separate bid.

If an IPA bidder later works under the AIC EE Plan as either a contractor or subcontractor, a clear separation of duties and costs will be required under the AIC contract terms.

2.1Program Parameters

Bidders are encouraged to propose programs with a high level of innovation and creativity in identifying and capturing verifiable and measureable kWh savings in underserved markets and which utilize the latest technology and advancements in energy efficiency. Proposals can be promotional-, technology- or delivery- based solutions provided, however, they are commercially available in the marketplace and are proven resource programs providing reliable and measurable kWh savings. As an example, but without limitation, the following programs/technologies are not eligible under this RFP:

Pre-commercial technologies

Renewable energy

Demonstration projects and limited production technologies

Programs that focus solely on load shifting

Power factor correction

There is no prescribed budget cap for spending across all of the proposed electric programs. The intent of Section 16-111.5B of the Act is for the IPA to procure all qualified and reliable energy efficiency resources that meet the requirements of this RFP. Bidders must perform their own market research and apply their expertise to determine the realistic amount of savings they can achieve, and budget accordingly. However, bidders will likely be competing for similar markets, customers, and/or technologies so competitive pricing and proposing realistic magnitudes of kWh savings will be important selection factors on which qualified bids are accepted.

Additionally, AIC is not accepting any bids for kits at this time because it is expected that any proposed kit programs would serve to duplicate AICs kit programs that are planned for inclusion in the AIC EE Plan to be filed by September 1, 2016. In addition, over the nine years AIC has been running energy efficiency programs, hundreds of thousands of kits have been sent to customers. AIC expects to have sufficient funds in its AIC EE Plan budgets to cover any future kits.

AIC is not accepting bids that rely on CFLs to achieve savings, as stakeholders have agreed that the market for CFLs has been transformed.

Also, the purpose of this RFP is to procure energy efficiency programs that acquire electric savings in accordance with Section 16-111.5B of the Act. Accordingly, any programs or measures designed to acquire gas savings will not be accepted.

Consistent with the Act, programs that target fuel switching technologies that reduce the total BTUs of electricity and natural gas needed to meet end-use requirements are eligible under this RFP. These technologies might include combined heat and power (CHP) systems or other systems that reduce electricity requirements by increasing natural gas usage.

Program Types

Proposed programs should be oriented around electric energy savings.

To the extent any bids propose controlling a device within the home or business, the bidder must fully explain the extent of the control and how it will obtain consent from the utility customer prior to implementation.

Energy efficiency programs that have a component of demand response may be considered. While costs associated with demand response will not be funded through this request for proposal, benefits associated with demand response will be considered in the TRC calculation. Any bids that have a demand response component should clearly identify and list separately any costs associated with supporting demand response activities.

2.2Program Evaluation, Accountability and Obligation

Bidders must note the following when developing responses:

Estimated savings must be provided as net savings including net-to-gross (NTG) estimations and measure values.

Each program that is implemented will be subject to evaluation requirements consistent with policies authorized by the ICC.

Bids must include proposed NTG ratios.[footnoteRef:7] [7: See http://www.ilsag.info/ntg_2016.html for a summary of NTG ratios used for Illinois energy efficiency programs.]

AIC will only consider proposals with verifiable and measurable electric energy savings. The TRM provides standardized savings values and algorithms for a wide range of measures. Where proposed measures exist in the TRM, bidders are strongly encouraged to propose bids that apply the most current TRM (i.e., IL-TRM Version 5.0[footnoteRef:8]). Doing so can mitigate evaluation risks that may be associated with unverified algorithms or input values. [8: https://www.icc.illinois.gov/downloads/public/IL-TRM%20Version%205.0%20dated%20February%2011,%202016%20Final%20-%20Compiled%20Volumes%201-4.pdf ]

Bidders are required to provide specific TRM algorithm or alternate algorithm calculations in their bid savings.

For proposed measures that do not exist in the TRM, bidders must provide work papers and/or evaluations that define the algorithms, parameters, and input values that were used to estimate energy savings.

Net savings evaluation will be conducted by an independent evaluator at the close of each program year, although evaluation activities may be ongoing throughout a program year. Process evaluation may also be performed for items such as overall program performance, marketing approach, implementation channels, outreach activities and customer satisfaction.

The bidder will be subject to the requirements of the Illinois Energy Efficiency Policy Manual, the Illinois Technical Resource Manual, and any consensus items from the SAG-led IPA 2016 workshop process which is currently ongoing.

By responding to this RFP, bidders acknowledge that:

a. Bidders will be expected to achieve the savings within the budget as provided in their bid, or revised for submission, for the timeframe proposed. If an ICC order is entered approving that bid in the docketed proceeding, the bidder will be expected to enter into negotiations with AIC and/or its prime implementer to provide the savings within the budget as provided in their bid or as revised for submission. The bidder will be subject to the requirements of the Illinois Energy Efficiency Policy Manual, the Illinois Technical Resource Manual, and any consensus items from the SAG-led IPA 2016 workshop process.

b. Program administration, implementation and assumptions are subject to regulatory changes, including the TRM (which is revised annually and typically in effect by June 1) and annual evaluation results. Bidders acknowledge that their bid assumptions may be revised and that they will confirm their continued intent to proceed with the bid based on the revised savings targets within the original budget submitted to AIC.

c. AIC expects that payment for programs implemented will take the form of pay for performance contracting where vendors will receive a fixed payment amount that will be directly tied to kWh savings achieved, subject to pre-determined hold back, customer make whole and other payment related provisions.

d. All contract terms will be subject to any changes to AICs internal policies and procedures, as well as any changes to values, implementation, administration or Commission rulings arising from AICs regulation by the Commission, or necessitated by a change in law or regulation affecting a program.

Please refer to Section 2.4 for a detailed description of the payment mechanics.

2.3Marketing

The selected bidder will be responsible for program design/redesign, managing, executing, securing, documenting, and reporting energy savings and marketing of the program under the guidance of and in partnership with AIC and its prime implementer. While it may be determined that it is more feasible for all marketing activities to be coordinated by AIC, bidders should assume this responsibility for the purposes of this bid. Final determination will be made during contract negotiations.

Programs should be designed to avoid the potential of double-dipping (applying for multiple incentives or rebates for the same energy efficiency measure) into AICs portfolio. Energy efficiency measures in the AIC or the Department of Commerce portfolios will be considered as long as they are limited to niche market subsectors or customers not being served by the portfolios. Limiting these measures to niche market subsectors or customers will help avoid the potential for double-dipping.

All aspects of program design and implementation, marketing plans, materials, and outreach activities, including all customer-facing aspects of the program, must be reviewed and approved by AIC.

Marketing and Program Design costs should be itemized separately on the bid.

2.4 Program Payment and Budget Design

Program budget limits should be identified within the bid, but shall ultimately be based on the final ICC order for the IPA Electricity Procurement Plan docket. All program budgets shall be designed on a not-to-exceed basis.

All proposed programs are required to be designed as pay-for-performance fixed pricing (PFP) based on net kWh saved. The verified net kWh saved will be determined by an independent evaluator after the end of the program year. Release of holdback and program payment true-up will occur after the evaluation period, which is approximately nine months after the end of the program year.

Pay for Performance Method

AIC expects that payments will have at least the following characteristics:

PFP payments will be made on the basis of a fixed price, per unit of energy savings, i.e., dollars per net kWh savings basis ($/kWh).

PFP payments will be made upon acceptable implementer documentation of measure implementation and savings, subject to a holdback equal to a predetermined percent (e.g., 5%) of the total invoice. PFP payments shall be inclusive of any customer incentives including payments or costs of services provided.

For the PFP payments, the implementer must include all material, labor, sub-contractor, administrative labor (for reporting, etc.), marketing, and all other program costs including costs to support regulatory and evaluation in the proposed $/kWh cost. Any PFP payment amounts must be documented in monthly invoices to AIC, as well as in any other form reasonably requested by AIC, and will only be paid upon approval of the AIC Contract Manager (AIC or its prime implementer). AIC expects that the criteria for Contract Manager approval includes:

The measure mix implemented (on an energy saved basis) being within 20% of the measure mix proposed by bidder and approved by AIC[footnoteRef:9], and [9: The measure mix requirement is intended to encourage implementers to install the complete range of measures proposed with minimal substitution, on an energy saved basis. For the purposes of the holdback each unique measure proposed (e.g., insulation, split-units, motor replacements) is considered a single measure with the exception of lighting (including lighting controls) measures, which can be grouped as a single measure. If the measure mix is not met for an insignificant portion of the measures, the AIC Contract Manager may authorize repayment of the holdback, at his or her sole discretion.]

An independent evaluation indicating achievement of the energy savings goal as ordered by the IPA Electricity Procurement Plan docket and per the contract.

If the evaluation of the savings indicates that the achieved savings (in kWh) are equal to or greater than 100% of the proposed energy savings, the implementer is eligible for 100% of the holdback repayment, assuming the measure mix criteria is met. If the evaluation of the savings indicates that the achieved savings (in kWh) are equal to or greater than 95% (but less than 100%) of the proposed energy savings, the implementer is eligible for 50% of the hold back repayment, assuming the measure mix criteria is met. If the evaluation of the savings indicates that the achieved savings (in kWh) are less than 95% of the proposed energy savings, the implementer is not eligible for hold back repayment.

After the evaluation is complete, if the evaluated verified savings are less than the reported savings, the implementer will be required to reimburse AIC the difference between the evaluated savings and the reported savings. In order to insure that implementer has adequate funds to reimburse AIC, implementer is required to provide AIC a Performance & Payment Surety Bond (in a form and with sureties reasonably acceptable to AIC) equal to 25% of the implementer budget. Capability to obtain a Performance & Payment Surety Bond must be included in the bid response.

Payment of Customer Incentive/Rebates

If customer incentives (rebates) and/or services (e.g., direct install, energy audits) are part of the program design, the implementer will make payment of incentives to the customer or their designee and/or provide such services and report such payments or services on a monthly basis to AIC.

As applicable, bidder will propose a budget and a process for payment of customer incentives/rebates and/or providing of services. If the incentive/rebate amount is not a fixed price per unit (measure or project), describe how the amount is determined for each customer or measure.

Supplier Payments

Except as otherwise set forth herein, all complete and undisputed invoices shall be due and payable within 30 days of receipt by AIC. AIC may withhold payment of any charges if, at AICs sole discretion, documentation or additional support is needed or AIC disputes in good faith the invoice, in whole or in part. AIC may set off amounts supplier owes AIC as credits against charges payable to supplier under the contract.

Other Contract Terms

Once a Final Order in the IPA Electricity Procurement Plan docket has been issued indicating the bid programs have been approved and ordered, contract negotiations will be conducted. These negotiations will relate to the scope of work, specific program design features, program budgets, and schedules and be subject to rulings in the ICC Final Order (or any subsequent rehearing and appeal process) as well as the Illinois Energy Efficiency Policy Manual.

Bidders must have nexus in Illinois as defined by the State of Illinois, be registered with the Illinois Department of Revenue for sales tax and use tax, and accept responsibility for issuing Form 1099 as required by law.

2.5 Duplicative or Competing Programs

When submitting bids to the IPA, AIC will apply a 7 factor test to determine if bid programs are duplicative or competing.

As used in past IPA procurement plans, duplicative is intended to mean a program that overlaps an existing program in a manner in which greater market participation by vendors does not yield sufficient additional value to consumers. Alternatively, there could be energy efficiency offerings that, while overlapping substantively, would actually benefit from multiple channels; those programs are understood to be competing.

The goal is that duplicative programs are to be avoided, but competing programs would be acceptable to the extent that the competition does not render one or both non-cost effective. As referenced above, the following 7 factors will be used to determine whether a program is duplicative or competing:

1. Similarity in product/service offered;

2. Market segment targeted, including geographic, economic, and customer classes targeted;

3. Program delivery approach;

4. Compatibility with other programs (for instance, a program that created an incentive to accelerate the retirement of older inefficient appliances could clash with a different program that tunes-up older appliances ); and

5. Likelihood of program success (a proven provider versus an undercapitalized or understaffed provider).

6. The effect(s) on utility joint program coordination, and

7. Impact on Section 8-103 Plan or Department of Commerce portfolio performance.

The IPA Electricity Procurement Plan docketed proceeding may result in competing programs being approved and/or the definition being amended. AIC will make reasonable estimates in scenario analysis to determine if the programs could be run simultaneously.

AIC/Department of Commerce will review the proposed programs/measures for compatibility with the AIC EE Plan and the Department of Commerce EE Plan.

2.6 Program Integration

As noted above, selected bidders may be required to develop and operate systems that integrate into AIC EE Plan operations. As an example, AIC will have a system to track savings. AIC expects bidders to comply with and provide information to be tracked in that system.

Staff

Staff will be employed by the selected bidder but will perform under the rules and guidance of AIC and/or AICs prime implementer. Selected bidders must provide trained personnel as needed who are able to respond to customer inquiries regarding program services, scheduling issues, warranty issues, and other program-related issues.

Internet capability

Program-specific internet and website program information and participation will be integrated with the current Ameren Illinois Energy Efficiency web platform. Any additional costs anticipated to merge a program to this platform must be part of the bid.

Information Security

Bidders will be required to have in place security protocols and policies that comply with local, state and federal law, including the orders of the Commission, as well as AICs own policies on electronic data security and interchange as it relates to the security of customer information, and the appropriate treatment of customer information.

Bidder requirements pertaining to cyber security are included in Section 2.17 Bid Submission Items and Attachment F.

2.7 Program Operations

Program Operation costs as a category should be itemized separately on the bid and be inclusive of the items in this section in addition to other program operations cost requirements.

During contract negotiations, it may be determined that the following items will be coordinated by AIC or its prime implementer, but bidders should assume this responsibility for the purposes of this bid:

Intake: Selected bidders will develop and implement intake systems and processes to answer questions from prospective customers, screen for program eligibility and target markets.

Quality Assurance and Evaluation Support: Selected bidders will develop and implement a quality assurance protocol to ensure that the program achieves net energy savings. Selected bidders will also provide documentation sufficient for AIC, its prime implementer and an independent evaluator to evaluate the program in terms of safety, customer service, and other performance metrics as determined by these entities.

Access: Selected bidders will assist AICs independent evaluator, including access to program records, access to program employees and subcontractors, and other support. Selected bidders shall accommodate AICs need to audit selected bidder program processes and field activities, including subcontractor activities and will provide any information and assistance upon request.

Program Management Systems and Processes: Selected bidders will develop, document and implement program management systems and processes that support effective program management and delivery. Program management systems may include computer systems, employee procedures, or other systems. AIC will retain all rights to data, results, and any other information collected/developed during the performance of these programs. At a minimum, these systems (documented Processes or Policies) must be capable of supporting the following functions:

Processing customer intake requests and screening customers for program eligibility.

Procuring and managing the qualified subcontractors and trade allies required to implement program and providing sufficient capacity of staff and qualified subcontractors to meet program demand in the geographic regions targeted by the program. All contractors shall have or obtain all required licenses, certifications, permits and insurance for the work proposed.

Scheduling customers, subcontractors, and quality assurance personnel for efficient delivery of program services.

Providing appropriate training to selected bidder staff, subcontractors, and trade allies needed to provide the program services.

Ensuring the safety of bidder staff, subcontractors, trade allies and customers being served.

Providing timely resolution to customer complaints and issues, with documented call center scripting and complaint escalation processes.

Surveying customer satisfaction.

Collecting and storing data on customer energy savings and customer work flow through program implementation steps.

Interfacing with AIC portfolio tracking systems, allowing for secure (possibly weekly) automated data transfers of key program metrics meeting all of AICs data transfer protocols.

Maintaining privacy of customer data. Selected bidder data security processes and systems must meet or exceed AIC security requirements. Selected bidders will at all times be responsible for ensuring their data security processes and systems meet or exceed the requirements set forth by Illinois law.

Tracking information needed to assess key performance indicators used to measure and structure payments for selected bidder performance, including tracking safety, customer satisfaction, participation, energy savings, and other program features.

Participating in routine status conference calls, to be coordinated between AIC, AICs prime implementer and selected bidder, as needed for effective program management.

Providing appropriate management reports.

Developing and maintaining policies and procedures for program implementation.

Reporting: Selected bidders will be required to support AICs independent evaluator and AICs prime implementer in the assessment of the bidders programs by providing access to program records and other support as needed. In addition, selected bidders will provide regular (possibly weekly, monthly, and quarterly) management reports to AIC and its prime implementer through paper and email. These reports may also be given to the independent evaluator, who may contact participating customers (including on-site visits) to evaluate bidder performance and verify installations. Management reports must include, at a minimum, a summary of key activities, accomplishments, program status, budget status and estimated savings. Selected bidders will be required to hold quarterly meetings with AIC or AICs prime implementer, either in person or remotely over phone or web-conference. Selected bidders must also accommodate AICs need to audit bidders program processes and field activities, including subcontractor or trade ally activities.

2.8 Policies and Procedures

As described in previous sections, selected bidders will develop and maintain plans, specifications, policies and/or procedures governing the program operations.

A program implementation plan must be prepared for each program and provided to AIC by April 1 prior to June 1 implementation for each program year. At least 60 days prior to program launch, selected bidders will provide draft copies of appropriate materials for review and approval by AIC.

2.9 Exceptions and Disclosures

Bidders also need to provide a list of any potential conflicts and a disclosure of any professional relationships they have with AIC, any of its entities, implementers and contractors currently engaged by AIC. The presence of such relationships is not necessarily disqualifying, however.

The cost of RFP preparation and any on-going expenses incurred during the process leading up to implementation will be the sole responsibility of the bidder.

2.10Modification of Request for Proposal

After the assessment and analyses of proposals submitted in response to this RFP is completed, AIC reserves the right to modify the requirements and terms of this RFP.

AIC may, at its sole discretion, request additional information or resubmission of some or all items from some or all of the initial bidders.

2.11RFP and Program Development Estimated Timeline

RFP Call for Proposals

Start Date

End Date (close of business)

RFP Release Date

March 11, 2016

March 11, 2016

Pre-Bid Bidders Conference Call

March 18, 2016

March 18, 2016

Bidder Questions Deadline

March 23, 2016

March 23, 2016

Intent to Bid Due Required

March 23, 2016

March 23, 2016

Responses to Questions Issued

March 30, 2016

March 30, 2016

Bidder Proposal(s) Submission Due

April 7, 2016

April 7, 2016

Proposal Review and Bid Discussions

April 7, 2016

December 31, 2016

Program Development and Roll Out

Start Date

End Date

Notification of Bid Selection(s)*

January 15, 2017

January 15, 2017

Program start date

June 1, 2017

*Subject to ICC final order for the IPA 2017 Electricity Procurement Plan

2.12Intent to Bid

Potential bidders are required to submit a notification of intent to submit a proposal in response to this RFP.Notification of your intent to bid must be received by Andrew Cottrell at acottrell@appliedenergygroup.com no later than 5:00 PM Eastern Time, 4:00 PM Central Time on March 23, 2016. Complete and also provide Attachment C General Company Information Form with your intent to bid notice.

Bidders are responsible for confirming their intent to bid was received if they so choose.

The notification should include the number of proposals a bidder intends to submit. Those who submit intent will be provided a list of intended bidders and responses to submitted questions.

2.13Bidders Conference Call

Bidders are encouraged, although not required, to participate in a bidders conference call. There is no registration required to participate in the conference call. The conference call will provide interested firms with an opportunity to seek clarification on the requirements of this RFP. Following are the schedule and instructions for the conference call:

Date: Friday, March 18, 2016

Time: 3:30 pm (Eastern Time), 2:30 pm (Central Time)

Call-In Number: (302) 202-1110

Passcode: 438814

2.14RFP Questions, Inquiries, Clarifications

Questions, inquiries and clarifications regarding this RFP must be received by Andrew Cottrell at acottrell@appliedenergygroup.com no later than 5:00 PM Eastern Time, 4:00 PM Central Time on March 23, 2016. Outside of the bidders conference call, all questions, inquiries and clarifications will be handled by email only and responses distributed to those who submitted intent by March 30, 2016.

2.15RFP Due Date

All proposals must be received by Andrew Cottrell at acottrell@appliedenergygroup.com no later than 12:00 PM Eastern Time, 11:00 AM Central Time on April 7, 2016. Bidders are responsible for confirming their proposals were received if they so choose.

Bidders must copy Tina Grebner at tgrebner@ameren.com when submitting bids to Andrew Cottrell.

Proposals must also be received in hard copy format (2 copies in 3-ring binders, excluding Attachment A) no later than 12:00 PM Eastern Time, 11:00 AM Central Time on April 7, 2016 by:

Tina Grebner

Ameren Illinois

300 Liberty Street

Peoria Illinois 61602

AIC has not committed to any course of action as a result of the issuance of this RFP and/or its receipt of proposal from any bidder response to it. Further, AIC reserves the right to amend or alter this RFP, as appropriate, as well as reject as non-responsive any proposals that do not contain the information requested in this RFP, reject late proposals, and negotiate with one or more suppliers. AIC is not liable for any bidder costs, including but not limited to any incurred by any person or firm responding to this RFP or participating in any phase of this RFP, and regardless of whether such bidder costs are incurred by modifications to this RFP or other delays.

2.16Bid Submission Items

Proposals must include a proposal cover, a cover or transmittal letter, and a table of contents consisting of the items listed below in the order shown. Bidders must address each item. If an item does not apply, the bidder must provide an explanation. Bidders should provide sufficient detail to address each item clearly and briefly, but should avoid excessive or elaborate submittals. Pages must be numbered and dated.

Executive Summary

Program Description and Schedule addressing at least the following:

The description should summarize the market or market segment being served, an overall program description including the electric efficiency measures that will be implemented, and how the program will be marketed and delivered.

Bidders should describe how their approach to program delivery and implementation of energy efficiency measures will verify that customers receiving the energy efficiency measures are actually AIC electric customers whose demand is less than 150kW. If bidders program delivery and implementation approach cannot verify energy efficiency measures are delivered to AIC electric customers whose demand is less than 150kW, bidders should describe the steps the bidder will take to minimize delivery of energy efficiency measures to non-AIC electric customers.

To the extent any bids propose controlling a device within the home or business, the bidder must fully explain the extent of the control and how it will obtain consent from the utility customer prior to implementation.

To the extent any bids have a demand response component, the bidder should clearly identify and list separately any costs associated with supporting demand response activities.

When identifying the market segment, indicate if the segment includes eligible customer segments served by the Department of Commerce.

The proposed schedule should address program planning, launch and operations, focusing on the time required from contract award to full operation. The schedule should be in bar chart or tabular form with key milestone dates shown.

The schedule should also address the steps required for program shutdown.

Marketing Strategy

The marketing strategy should define the target market and how the bidder intends to reach the market as well as the program delivery approach, including any reliance on or leveraging any AIC administrative or marketing assistance. The bidder should address key messaging and the value proposition that will be used to attract participants.

Summary of Qualifications and Experience, including but not limited to:

Proven ability to accurately plan as well as manage, design and implement proposed initiatives efficiently and effectively.

If the program being bid has been implemented in the past three years, include the following information:

Program name and location where the program was implemented

Entity for whom the program was implemented

Budgeted dollars, budgeted savings, actual dollars, and achieved savings

A copy of the evaluation results if the program was evaluated

Staffing (including subcontractors)

Bidders should provide a table or organization chart with the key positions and individuals within the bidders and subcontractors organizations responsible for designing, implementing and marketing the proposed program.

Resumes of Key Program Leads (optional)

Professional relationships and potential conflicts

Budget

Bidders must provide a budget in the format provided in the table below. Budget items are defined as follows, and bidder should clearly explain what is included in each item:

Program Administration includes the bidders on-going administrative costs to support program operations. These may include tracking, reporting, subcontractor administration, call center and customer support operations, etc.

Program Marketing includes advertising, customer outreach and education, development and production of marketing materials, website and content development, media purchases (if any), and related expenses.

Program Delivery includes the costs of application intake, pre-qualification, incentive processing, technical support, and other costs related to applicant project support.

Incentives are payments made to reduce the participants costs of energy efficiency measures. Incentives are not intended to eliminate participants costs for purchasing and installing measures. If measures are provided at no cost to the participant, those costs should be provided separately as the Costs of Direct Delivery (see below).

Costs of Direct Delivery apply to certain programs where the full cost of measures, including installation, is provided at no charge to the customer. Many residential and business direct install programs provide some measures at no charge to the customer.

Budget Item

Year 10

Year 11

(if applicable)

Year 12

(if applicable)

Total

Program Administration

Program Marketing

Program Delivery

Incentives

Costs of Direct Delivery

Total

Detailed Efficiency Measure Information

Each proposed program measure must be provided with the information required in Attachment A, which includes examples for illustrative purposes. Bidders must provide this information as an Excel file, with the bidder, proposed program and Attachment A identified in the file name. There is no limit on the number of measures that may be submitted as part of a program. For multi-year programs, please specify measures and participation for each year.

For measures that are covered by the TRM, bidders are strongly encouraged to propose bids that apply the most current TRM and are responsible for ensuring that proposed measure values comply with TRM calculation methodologies and/or deemed savings values.

Bidders must provide estimated annual participation or number of efficiency units deployed, and estimated NTG ratios. The TRM does not provide participation or NTG ratios.

Where proposed measures exist in the TRM, bidders are required to include the specific TRM algorithm calculations, with all inputs and assumptions, in the spreadsheet.

For proposed measures that do not exist in the TRM, bidders are required to provide work papers and/or evaluations that define the alternate algorithms, parameters, and input values that were used to estimate energy savings.

AIC reserves the right to evaluate and adjust bidders proposed measure information as it deems necessary.

Disclosures (as needed)

Completed Critical Items Certification (Attachment B)

Failure to properly complete and include certification may subject the bid to disqualification

Completed General Company Information Form (Attachment C)

Completed Financial Data Template (Attachment D)

Bidder must provide this information as an Excel file, with the bidder, proposed program and Attachment D identified in the file name.

Exceptions to the Services Agreement Terms and Conditions (redline) (Attachment E)

Bidder must track changes and provide a Word file, with the bidder, proposed program and Attachment E identified in the file name.

Exceptions to the Cyber Security Terms and Conditions (redline) and completed Supplier Risk Assessment Screening Questionnaire (Attachment F)

For the Terms and Conditions, bidder must track changes and provide a Word file, with the bidder, proposed program and Attachment F-TC identified in the file name.

For the Questionnaire, bidder must provide as a PDF, with the bidder, proposed program and Attachment F-Q identified in the file name.

Completed Diversity Business Plan and 2nd Tier Reporting Worksheet (Attachment G)

Bidder must provide Excel files, with the bidder, proposed program and Attachment G-Plan or Attachment G-WS identified in the file name.

Completed Program Template (Attachment H)

Bidder must complete a program template of the proposed program in the format provided.

Bidder must provide this information in an Excel file, with the bidder, proposed program and Attachment H identified in the file name.

Contract Award

Following the review of all qualified proposals and as directed by the ICC, AIC will notify each bidder regarding the desire to conduct (or not conduct) further negotiations and/or discussions regarding proposed programs. Acceptance of any proposal is contingent upon ICC approval, pertinent ICC Orders and the execution of a subsequently negotiated, written contract. For avoidance of doubt, this RFP creates no contractual relationship between AIC and bidder and implementation of any program approved by the ICC will be subject to AIC and bidder coming to agreement with respect to all contract terms and all attachments thereto.

Attachment A: Detailed Efficiency Measure Information

Attachment B: Critical Items Certification

Company Name: _________________________________________________________

Proposed Program Name: __________________________________________________

I hereby certify that the following statements are true and acknowledge that failure to properly complete certification of any statement may subject the bid to disqualification:

I have read the Ameren Services Agreement Terms and Conditions (RFP Attachment E) and provided exceptions as required by the RFP. I understand that exceptions may cause the bid to be disqualified.

I have read the Ameren Cyber Security Terms and Conditions (RFP Attachment F) and provided exceptions as required by the RFP. I understand that exceptions may cause the bid to be disqualified.

I agree to comply with the Ameren Corporate Diversity planning and reporting requirements including but not limited to RFP Attachment G.

I agree to comply with the Ameren Corporate Branding requirements including but not limited to RFP Attachment I.

My company has nexus in Illinois as defined by the State of Illinois.

My company is registered with the Illinois Department of Revenue for sales tax and use tax.

My company will accept responsibility for issuing Form 1099 as required by law.

I certify that my company is capable of attaining and providing a Performance & Payment Surety Bond equal to 25% of the program budget.

The proposed program is not designed to provide gas savings.

The proposed program is absent of CFL measures and does not involve kits.

I understand that an incomplete and/or unresponsive bid may result in disqualification.

_______________________________________________________

Signature and TitleDate

Attachment C: General Company Information Form

Company Information

Company Name:

Street Address:

City:

State:

Telephone:

Website:

Bidder office location for this project:

Contact Information

Primary Contact Name:

Primary Contact Title/Position:

Primary Telephone:

Primary Email:

Primary Address:

Alternate Contact Information

Alternate Contact Name:

Alternate Contact Title/Position:

Alternate Contact Telephone:

Alternate Contact Email:

Alternate Contact Address:

Attachment D: Financial Data

Attachment E: Services Agreement Terms and Conditions

Attachment F: Information Access and Cyber Security

Attachment G: Diverse Supplier/Subcontractor Utilization

Ameren believes in providing equal access and opportunity to all qualified suppliers, including diverse suppliers. Our commitment to Supplier Diversity reflects our belief that diverse supplier partnerships are vital to the economic success of our region. We believe providing diverse-owned businesses an opportunity to compete in the performance of goods and services for Ameren are a critical component of our companys business strategy.

Attachment H: Program Template

Attachment I: Ameren Corporate Branding

Any co-branding efforts by contracted program implementers must be reviewed and receive approval by Ameren Communication & Brand Management prior to publication or circulation.

Attachment J: 220 ILCS 5/16-111.5B Select Provisions Relating to Electric Energy Efficiency Procurement[footnoteRef:10] [10: These provisions are provided for convenience. Bidders are responsible for referencing and complying with all applicable laws.]

(220 ILCS 5/16-111.5B)

Sec. 16-111.5B Provisions relating to energy efficiency procurement

(a) Beginning in 2012, procurement plans prepared pursuant to Section 16-111.5 of this Act shall be subject to the following additional requirements:

(1) The analysis included pursuant to paragraph (2) of subsection (b) of Section 16-111.5 shall also include the impact of energy efficiency building codes or appliance standards, both current and projected.

(2) The procurement plan components described in subsection (b) of Section 16-111.5 shall also include an assessment of opportunities to expand the programs promoting energy efficiency measures that have been offered under plans approved pursuant to Section 8-103 of this Act or to implement additional cost-effective energy efficiency programs or measures.

(3) In addition to the information provided pursuant to paragraph (1) of subsection (d) of Section 16-111.5 of this Act, each Illinois utility procuring power pursuant to that Section shall annually provide to the Illinois Power Agency by July 15 of each year, or such other date as may be required by the Commission or Agency, an assessment of cost-effective energy efficiency programs or measures that could be included in the procurement plan. The assessment shall include the following:

(A) A comprehensive energy efficiency potential study for the utility's service territory that was completed within the past 3 years.

(B) Beginning in 2014, the most recent analysis submitted pursuant to Section 8-103A of this Act and approved by the Commission under subsection (f) of Section 8-103 of this Act.

(C) Identification of new or expanded cost-effective energy efficiency programs or measures that are incremental to those included in energy efficiency and demand-response plans approved by the Commission pursuant to Section 8-103 of this Act and that would be offered to all retail customers whose electric service has not been declared competitive under Section 16-113 of this Act and who are eligible to purchase power and energy from the utility under fixed-price bundled service tariffs, regardless of whether such customers actually do purchase such power and energy from the utility.

(D) Analysis showing that the new or expanded cost-effective energy efficiency programs or measures would lead to a reduction in the overall cost of electric service.

(E) Analysis of how the cost of procuring additional cost-effective energy efficiency measures compares over the life of the measures to the prevailing cost of comparable supply.

(F) An energy savings goal, expressed in megawatt-hours, for the year in which the measures will be implemented.

(G) For each expanded or new program, the estimated amount that the program may reduce the agency's need to procure supply.

In preparing such assessments, a utility shall conduct an annual solicitation process for purposes of requesting proposals from third-party vendors, the results of which shall be provided to the Agency as part of the assessment, including documentation of all bids received. The utility shall develop requests for proposals consistent with the manner in which it develops requests for proposals under plans approved pursuant to Section 8-103 of this Act, which considers input from the Agency and interested stakeholders.

(4) The Illinois Power Agency shall include in the procurement plan prepared pursuant to paragraph (2) of subsection (d) of Section 16-111.5 of this Act energy efficiency programs and measures it determines are cost-effective and the associated annual energy savings goal included in the annual solicitation process and assessment submitted pursuant to paragraph (3) of this subsection (a).

(5) Pursuant to paragraph (4) of subsection (d) of Section 16-111.5 of this Act, the Commission shall also approve the energy efficiency programs and measures included in the procurement plan, including the annual energy savings goal, if the Commission determines they fully capture the potential for all achievable cost-effective savings, to the extent practicable, and otherwise satisfy the requirements of Section 8-103 of this Act.

In the event the Commission approves the procurement of additional energy efficiency, it shall reduce the amount of power to be procured under the procurement plan to reflect the additional energy efficiency and shall direct the utility to undertake the procurement of such energy efficiency, which shall not be subject to the requirements of subsection (e) of Section 16-111.5 of this Act. The utility shall consider input from the Agency and interested stakeholders on the procurement and administration process.

(6) An electric utility shall recover its costs incurred under this Section related to the implementation of energy efficiency programs and measures approved by the Commission in its order approving the procurement plan under Section 16-111.5 of this Act, including, but not limited to, all costs associated with complying with this Section and all start-up and administrative costs and the costs for any evaluation, measurement, and verification of the measures, from all retail customers whose electric service has not been declared competitive under Section 16-113 of this Act and who are eligible to purchase power and energy from the utility under fixed-price bundled service tariffs, regardless of whether such customers actually do purchase such power and energy from the utility through the automatic adjustment clause tariff established pursuant to Section 8-103 of this Act, provided, however, that the limitations described in subsection (d) of that Section shall not apply to the costs incurred pursuant to this Section or Section 16-111.7 of this Act.

(b) For purposes of this Section, the term "energy efficiency" shall have the meaning set forth in Section 1-10 of the Illinois Power Agency Act, and the term "cost-effective" shall have the meaning set forth in subsection (a) of Section 8-103 of this Act.

(Source: P.A. 97-616, eff. 10-26-11; 97-824, eff. 7-18-12.)

Attachment K: References

Evaluation Documents, Net-to-Gross Framework, TRM and Quarterly Reports:

http://www.ilsag.info/home.html

Illinois Energy Efficiency Policy Manual Version 1.0 approved in ICC Docket 15-0487 on 12/16/15. Link to the Final Order approving:

https://www.icc.illinois.gov/docket/files.aspx?no=15-0487&docId=237567

2013 AIC Potential Study:

http://www.ilsag.info/potential-studies.html

AIC Electric and Gas Energy Efficiency and Demand Response Plan 3 for 2014-2017

(Exhibit 6.1):

http://www.icc.illinois.gov/docket/files.aspx?no=13-0498&docId=205737

Department of Commerce Plan 3 for 2014-2017:

http://www.icc.illinois.gov/docket/files.aspx?no=13-0499&docId=210173

Attachment L: 2016 AIC Potential Study (DRAFT)

(Provided under separate cover)

Page of 31

AIC IPA 2016 RFP

Measure Level Information Template_2-24-16.xlsx

Measure Level DeteailsDetailed Efficiency Measure InformationProposed MeasureBaseline Measure for ComparisonIllinois TRM Reference and Input AssumptionsTRM Measure CodeEstimated Annual Participation/UnitsIncremental Cost per UnitIncentive per UnitDelivery CostsDirect Delivery of Free MeasuresGross Annual kWh Savings per MeasureGross kW Demand Savings per MeasureGross Annual Therm Savings per MeasureTotal Annual Gross kWh SavingsTotal kW Demand SavingsTotal Annual Gross Therm SavingsEstimated Useful Life (years)Estimated NTG RatioNTG Ratio Reference / JustificationShowerhead 1.75 gpm - Electric DHW2.5+ gpm showerhead5.4.5; 1.75 gpm showeheadRS-HWE-LFSH-V03-140601300$10.00$10.00257.8830.0237477,3657.12100.76Faucet Aerator, kitchen or bath - Electric DHW2.75+ kitchen aerator, 2.25+ bath aerator5.4.4; 2.0 gpm kitchen aerator, 1.5 gpm bath aeratorRS-HWE-LFFA-V04-150601375$3.00$3.0068.6270.0290325,73510.8990.76ASHP 8.5+ HSPF 16.0+ SEER - Single FamilyElectric resistance heat w/ >10 SEER central AC, forced air distribution system5.3.1; 8.5 HSPF, 16.5 SEER; Springfield location; 30 kBTU/hr; serves 100% of the heating and cooling loads per Manual JRS-HVC-ASHP-V04-150601180$5,000.00$4,500.0010,794.6120.992321,943,030178.62181.02

NotesExisting HVAC systemHeating systems must be electric resistance heat and AC to qualify; central AC must be >10 SEER; homes w/ no central AC must be using window units sufficient to cool the entire home.ASHP equipment sizingProgram design requires Manual J sizing to serve minimum 100% of heating and cooling loads.HVAC equipment sizingProgram design requires Manual J sizing to serve minimum 90% of heating load and 100% of cooling load for ductless HP. Incremental costs - direct install measuresIncremental costs assumed to be equal to Direct Delivery CostIncremental costs - HVAC measuresIncremental costs based on actual market pricing for specified equipment.DefinitionsProposed MeasureDescribe the proposed high efficiency measureBaseline Measure for ComparisonDescribe the measure against which the high efficiency mesure will be compared for impacts (kWh, kW and therm savings) and incremental costsIllinois TRM ReferenceReference section of the Illinois TRM for measures covered by the TRM. Also indicate key input assumptions here or on a separate sheet.TRM Measure CodeInclude the unique measure code from the Illinois TRM. Code Structure = Market + End-use Category + Measure + Version # + Effective Date . For example, the commercial boiler measure is coded: CI-HVC-BLR_-V01-120601Estiamted Annual Participation or UnitsThe number of expected measures to be installed or deployed during a program yearIncremental Cost per UnitThe DIFFERENCE in cost between the Proposed Measure and Baseline Measure. This MUST comply with the Illinois TRM for measures included in the TRM.Incentive per UnitThe proposed incentive level for each participant or unit.Delivery and Marketing CostsThe cost of the implementer's services including administration, application processing, QA/QC, and other costs necessary to operate the programDirect Delivery of Free MeasuresIn some cases, measures may be provided free of charge to the participant. Examples include direct install measures and energy kits. In these cases, the cost of the measures should be included here rather than in Delivery and Marketing Costs.Gross Savings per Measure (kWh, kW, therms)Savings per measure excluding the effects of free ridership and spillover. Impacts must be calculated in accordance with the Illinois TRM when covered by the TRM.For measures NOT covered by the TRM, provide all input assumptions and calculations showing how impacts were derived.Total Annual Savings (kWh, kW, therems)Gross savings multiplied by participation or units.Estimated Useful LifeThe expected measure life from the Illinois TRM (where applicable) or from other sourcesEstimated NTG ratioThe estimated Net-to-Gross ratio for the proposed measures, including free-ridership and spillover.NTG Ratio Reference / JustificationFor program exansions, reference the program evaluation the NTG was derived. For new programs, describe justification for chosen NTG value.

TRM CalculationsALL ELECTRIC HOMES

SHOWERHEAD - DIRECT INSTALL5.4.5RS-HWE-LFSH-V03-140601EFFICIENT1.75 gpm showerheadBASELINE2.5+ gpm showerheadMEASURE LIFE10MEASURE COST$10Actual billedCOINCIDENCE FACTOR2.78%kWh = %ElectricDHW * (((GPM_base * L_base) - (GPM_low * L_low)) * Household * SPCD * 365.25 / SPH) * EPG_electric * ISR%ElectricDHW100%GPM_base2.67Gallons per minuteL_base7.80Length of showerGPM_low1.75Gallons per minuteL_low7.80Length of showerHousehold2.56SFSPCD0.60Showers per capita per daySPH1.79SFEPG_electric0.117kWh/galISR0.98In-Service Rate, Direct Install, SFkWh257.883SFkW = kWh/Hours x CFHours302kW0.02374SFFAUCET AERATOR - DIRECT INSTALL5.4.4RS-HWE-LFFA-V04-150601EFFICIENT2.2 gpm kitchen aeratorBASELINE2.75+ gpm kitchen aeratorEFFICIENT1.5 gpm bath aeratorBASELINE2.25+ gpm bath aeratorMEASURE LIFE9MEASURE COST$3Actual billedCOINCIDENCE FACTOR2.2%kWh = %ElectricDHW * (((GPM_base * L_base) - (GPM_low * L_low)) * Household * 365.25 * DF / FPH) * EPG_electric * ISR%ElectricDHW100%GPM_base1.39Gallons per minuteL_base9.00Length of faucet use, SFGPM_low0.94Gallons per minuteL_low9.00Length of faucet use, SFHousehold2.56SFDF0.795FPH3.83SFEPG_electric0.0919kWh/galISR0.950In-Service Rate, Direct Install, SFkWh68.627SFkW = kWh/Hours x CFHours52SFkW0.02903SFASHP - Single Family5.3.1RS-HVC-ASHP-V04-150601MEASURE LIFE18Existing equipment assumed to last 18 years if not replacedMEASURE COST$5,000Based on PY7COINCIDENCE FACTOR72.0%coolingkWh = ((FLH[cool] * Capacity_cooling * (1/SEER[base] - 1/SEER[ee]))/1000) + ((FLH[heat] * Capacity_heating * (1/HSPF[base] - 1/HSPF[ee]))/1000)FLH[cool]730Springfield, SFFLH[heat]1,754Springfield, SFCapacity_cooling30,000BTUh, PY7 average, based on improved building envelopeCapacity_heating30,000BTUh, PY7 average, based on improved building envelopekW = ((Capacity_cooling * (1/EER[base] - 1/EER[ee]))/1000) * CFEER = (-0.02 * SEER^2) + (1.12 * SEER)

MEASURESEER[base]
Wade Morehead: Wade Morehead:TRMSEER[ee]
Wade Morehead: Wade Morehead:AverageHSPF[base]
Wade Morehead: Wade Morehead:TRM, resistanceHSPF[ee]
Wade Morehead: Wade Morehead:AveragekWhEER[base]EER[ee]kWER ASHP 16.0+ SEERReplace Resistance w/ Central AC8.6016.53.419.0010,7958.1513.040.992

Financial Data

Template.xlsx

Financial Data

Event Title: Supplier Name:

INSTRUCTIONS: Supplier to fill out ALL sections in YELLOW for previous three years

Company NameBALANCE SHEETCashAccounts ReceivableInventoryCurrent AssetsFixed AssetsGoodwillTotal AssetsCurrent Long Term DebtAccounts PayableCurrent LiabilitiesLong Term DebtTotal LiabilitiesRetained EarningsNet WorthSales on CreditTotal Stockholders Equity# of common shares outstandingShort-term investmentsPrevious Year 1 (Last Full Calander Year)00Previous Year 2 00Previous Year 30in thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsCompany NameCASH FLOW STATEMENTCash from OperationsNet increase (decrease) in CashEnding CashDepreciation ChargeCapital ExpenditureTaxes0Previous Year 1 (Last Full Calander Year)0Previous Year 2 0Previous Year 3in thousandsin thousandsin thousandsin thousandsin thousandsin thousandsCompany NameINCOME STATEMENTTotal SalesCost of Goods SoldOperating Income or (Loss)SG&AEarnings Before Interest and TaxesInterest ExpenseIncome Before TaxesNet Income0Previous Year 1 (Last Full Calander Year)0Previous Year 2 0Previous Year 3in thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousandsin thousands

Financial Data

Services Conditions of

Contract.docx

SERVICES CONDITIONS OF CONTRACT

ARTICLE 1: DEFINITIONS

1.1 "Acceptance Criteria" shall mean with respect to a Deliverable, a statement defining the criteria for acceptance of that Deliverable.

1.2 "Confidential Information" means any and all data, documentation, methods, processes, materials, and all other information relating to the past, present, and future business of either Party. Confidential Information also includes all information owned by customers, suppliers, or other third parties to whom such Party owes an obligation of confidentiality. Confidential Information does not include any information which (i) is already known to the receiving Party at the time it is disclosed to the receiving Party, provided that such prior knowledge can be substantiated by written records and documents or (ii) is or has become generally known to the public through no wrongful act of the receiving Party, or (iii) is obtained by the receiving Party from a third party who has the right, to the best of the receiving Party's knowledge, to disclose the information, or (iv) is or has been approved for release by a written authorization by the disclosing Party, or (v) is independently developed by the receiving Party without use directly or indirectly of the Confidential Information received from the disclosing Party provided that such independent development can be substantiated by written records and documents.

1.3"Contract" means, collectively, the Contract or Purchase Order to which this Attachment is attached or incorporated and all of the Contract Documents.

1.4 "Contract Documents" means the Contract, including all Attachments, forms, schedules and/or addenda attached thereto, issued pursuant to, or incorporated therein, all plans, drawings and Specifications issued by Ameren or by Contractor and approved by Ameren, these Services Conditions of Contract, the Supplemental General Conditions of Contract (if applicable) and all other documents identified in the Contract or Ameren's Purchase Order as included in the Contract Documents. The terms, conditions and provisions of the Contract Documents constitute the Contract

1.5"Deliverable" or Service(s) shall mean a tangible work product to be developed for and delivered to Ameren, as set forth in a Scope of Work. By way of example, a "Deliverable" may consist of a plan, a report, software or a design.

1.6Effective Date means the date of issuance of the Purchase Order unless an alternate Effective Date is specified in the Contract Documents.

1.7"Enforceable Intellectual Property Right" shall mean a copyright, patent or trademark enforceable under the laws of the United States of America or any state within the United States of America.

1.8Non-Public Market Information means information related to the electric energy and power business including, but not limited to, information regarding sales, cost of production, generator outages, generator heat rates, unconsummated transactions, or historical generator volumes.

1.9"Project" shall mean the Services to be rendered to Ameren, and the related Deliverables, as set forth in an individual Scope of Work.

2.0"Scope of Work" shall mean an attachment to this Contract, substantially in the form of Exhibit A hereof, that states, with respect to a specific Project, one or more of the following elements: the scope of the Project: Deliverables, responsibilities of Ameren, responsibilities of Supplier, the acceptance criteria applicable to Deliverables, and the fees and payment schedule pertinent to the Project. This Contract shall incorporate each Scope of Work that is executed by both Supplier and Ameren. In the event of a conflict between a signed Scope of Work and the provisions of this Contract, the Scope of Work shall take precedence as to the Project described therein.

ARTICLE 2: SERVICES

Supplier shall render the Services and deliver the Deliverables set forth in a Scope of Work to Ameren, and Ameren shall perform its responsibilities set forth in the same Scope of Work. Supplier shall use commercially reasonable efforts to complete work in accordance with the agreed milestones and dates set forth in the Scope of Work. Ameren will issue a purchase order with a Project number assigned. Supplier shall provide the point of contact information, name, address, and e-mail address of the individual who should receive the purchase order to ensure receipt. In the event the purchase order and/or the Scope of Work conflict with the provisions contained in this Contract, except to the extent agreed between the parties in writing, the provisions of the Scope of Work shall prevail over this Contract, which shall prevail over the purchase order.

Supplier shall access Ameren's internal networks and information in accordance with the instructions contained in Exhibit C, Network Access.

ARTICLE 3: FEES AND EXPENSES

3.1 The fees due Supplier in connection with a Project, inclusive of taxes, shall be set forth in the Scope of Work.

Payment for all work performed by Supplier in connection with a Project shall be made by Ameren to Supplier in accordance with the payment schedule and procedures in the Scope of Work. Supplier shall issue invoices to Ameren in accordance with the instructions contained in Exhibit B, Ameren Supplier Billing Instructions.

Ameren shall make final payment to Supplier after final acceptance of Services and Deliverables by Ameren, provided that there shall have been presented to Ameren and in form satisfactory to Ameren, waivers of lien for any Services performed or materials furnished, or receipts for said Services or materials, signed by the party who has or shall have a lien or claim for lien therefor. Ameren shall have the right to withhold from any payment (including the final payment) an amount sufficient to cover the costs of Services performed or materials furnished for which Ameren shall not have received waiver of lien or receipts; and Ameren shall have the right to withhold such amounts until said waivers of lien or receipts are presented to Ameren.

Supplier's correspondence, records, vouchers and books of account, insofar as they pertain to costs made for Ameren's account under this Contract, will be open at all reasonable times to Ameren's inspection and audit.

All invoices shall be due and payable within thirty (30) days of receipt by Ameren. Ameren may withhold payment of any charges that it disputes in good faith, and may set-off amounts Supplier owes Ameren as credits against charges payable to Supplier under this Contract.

Ameren may also withhold payment from the Supplier for the following reasons: (i) breach by Supplier of any of its obligations under this Contract, including the costs to Ameren of remedying the breach (whether by repairing or re-ordering any materials or re-performing any Services or otherwise) and all other costs directly attributable to other Services that are required to be performed in connection with remedying such breach (ii) a claim made, asserted or filed against Ameren or reasonable evidence indicating such a claim may be asserted which is subject to indemnification pursuant to this Contract; (iii) lien claims made, asserted or filed regarding the Project; (iv) the failure of Supplier to properly make payments to Supplier's subcontractors; (v) improper, erroneous, or incomplete payment documentation, including improper or insufficient lien waiver forms; and (vi) damage to any other work on the Project caused by Supplier or Supplier's subcontractors.

Payments withheld shall be in an amount sufficient, in Ameren's reasonable opinion, (i) to satisfy, discharge and/or defend against any claims or lien claims threatened or brought against the Project or judgment that may be recovered thereon, and/or (ii) to make good any non-payment, damage, failure or default. If the amount withheld is insufficient, Supplier shall be liable for the difference and pay the same to Ameren.

If the Services or Deliverables are of a type for which, in Ameren's reasonable opinion, a mechanics lien may be placed upon Ameren's property, Supplier will provide to Ameren, with each invoice submitted, affidavits of payment and partial and final waivers of lien for Supplier and its subcontractors in form and substance prescribed by Ameren. Ameren may to withhold from any payment (including the final payment) an amount sufficient to cover the costs of Services performed or materials furnished for which Ameren has not received waivers of lien or receipts; and Ameren has the right to withhold such amounts until said waivers of lien or receipts are presented to Ameren. In addition, Supplier shall defend and indemnify Ameren against all liens, claims and lawsuits of subcontractors or suppliers of Supplier of every tier for nonpayment of Services or Deliverables to the extent payment for such Services or Deliverables has been made to Supplier by Ameren.

Ameren shall make final payment to Supplier after Ameren's final acceptance of Deliverables by Ameren, provided that, if applicable, Supplier has presented to Ameren and in form satisfactory to Ameren, waivers of lien for any Services performed or materials furnished, or receipts for said Services or materials, signed by the party who has or shall have a lien or claim for lien therefor. Acceptance by Supplier of final payment under a Scope of Work shall constitute a waiver of all claims for payment of the Supplier's compensation against Ameren under such Scope of Work.

3.2.Audit

A.Right to audit. Supplier shall maintain during performance of the Services, and retain not less than four years after their completion, complete and accurate records of all of Supplier's costs which are chargeable to Ameren under this contract; and Ameren has the right, during normal working hours, to inspect, reproduce, and audit those records by authorized representatives of its own or a third party selected by Ameren. Compensation paid on a lump-sum basis shall not be auditable by Ameren. The records to be maintained and retained by Supplier must provide sufficient detail for such charges and shall include (without limitation):

-Payroll records (hours, employee name, employee classification, multiplier breakdown etc.) that account for total time worked under such contract

- Canceled payroll checks or signed receipts for cash payroll

- Invoices (including all back-up details) for purchases, receiving and issuing documents, and all inventory records for Supplier's stock or capital items

- Paid invoices and canceled checks for purchased materials, subcontractor and third-party charges

- Records relating to air freight and ground transportation, including but not limited to handling, hauling, and disposing of materials/equipment

- Accurate, auditable records of gifts, entertainment, and gratuities to individual Ameren personnel

In addition, Supplier shall assist Ameren with respect to ensuring that all subcontractors adhere to and comply with the same requirements herein.

B.Methodology

Both parties understand that to preserve the integrity of the relationship and to provide a reasonable level of quality assurance with respect to contract compliance, it is necessary to periodically conduct a detailed audit in accordance with the defined parameters stated herein.

1.Electronic Data File. In conducting the audit, Ameren requires that Supplier provide electronic data files containing all required information for all Ameren invoice activity for the entire audit period. The data files shall be in a file format compatible with industry accepted financial software applications (MS Excel, Access), and contain data elements of all items invoiced by the Supplier. A listing of the minimum data field requirements is included below.

2.Statistical Sampling. As it is not administratively feasible for either party to conduct an audit of the entire population of invoices, both parties agree that statistical sampling and extrapolation techniques premised upon proven scientific principles and analyses shall be used. Accordingly, both parties shall comply with the language as stated below.

C.Reimbursement

As part of the review process, both parties understand and agree that should errors occur, payment shall be made in accordance with the following terms. For all errors found in Ameren's favor, such errors shall be offset by the errors in favor of Supplier. More specifically, if the total aggregate errors found demonstrate underpayments