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In 2021, these baseline wattage values will decrease further unless existing legislation isoverturned or not enforced. These changes are reflected in the current Lighting SurveyForm (LSF).1Lighting controls in retrofit applications would typically be installed where there is no existingcontrol other than a manual switch (wall or circuit panel). Energy savings are determined by themethods described in the current version of the Texas TRM.HVACEligible HVAC system retrofits include the installation of air-cooled Split System and SinglePackaged Air Conditioning (AC) and Heat Pump (HP) systems. These include: Packaged and Split air conditioners (DX or air-cooled) Packaged and Split heat pumps (air-cooled) System Type Conversions - retrofits involving a change from a chiller-based system to apackaged/split system Packaged terminal air conditioners and heat pumps Computer room air conditioners Room air conditionersEnergy savings for HVAC retrofits are determined using Frontier Energy’ Air ConditioningEvaluator (ACE), which is provided in the Program Downloads section of the program website.Cool RoofsThe installation of an ENERGY STAR roof decreases the roofing heat transfer coefficient andreduces the solar heat transmitted to the building space. During hours when cooling is requiredin the building, this measure decreases the cooling energy use. During hours when heating isrequired in the building, this measure may increase or decrease the heating energy usedepending on the project.Eligible roof retrofits must have a slope of 2:12 or less, and the roof product selected must havean initial solar reflectance of greater than or equal to 65% and must maintain solar reflectance ofgreater than or equal to 50% after three years of installation under normal conditions. Furtherrequirements and savings calculation methods apply, as described in the current version of theTexas TRM.1In the LSF, there are two types of incandescent fixture codes: 1) those that use the EISA reduced wattages, and 2)those that are exempt and use the full wattage. In 2016, the default incandescent fixture codes were the exemptlamps that used the full wattage (I60/1). Users were required to add other characters to get the EISA fixture code(I60/1-A, where the “A” stood for “adjusted”). In 2017, LSF was updated to change the EISA compliant lamp to thedefault I60/1 fixture code. The exempt fixtures now use a different format fixture code (I60S/1). The “S” stands forspecialty, which matches the language from the Residential TRM.2021 Xcel Energy Small Business Market Transformation Programpage 5

Energy savings for cool roofs are determined using Frontier Energy’ Roofing Survey, which isprovided in the Program Downloads section of the program website.Ineligible EquipmentPlug load lighting retrofits are ineligible unless operated in an “always on” configuration.Compact Fluorescent Lamp (CFL) screw-based lamps and hard-wired pin-based fixtures are noteligible in this program.Indemnification of Utility and Program AdministratorNeither the Utility nor Frontier Energy is a manufacturer, supplier or guarantor of eligible energyefficiency measure components, nor a guarantor of Project Sponsors, and neither makes anyrepresentations or warranties of any nature, directly or indirectly, express or implied, as toperformance of the Project Sponsor or of the reliability, performance, durability, condition orquality of the energy efficiency measure components selected, purchased, and installed atcustomer premises.2.e. Installation PracticesCodes/Standards/PermitsAll installations must obtain appropriate local building permits and pass all required localinspections and must be in full compliance with the National Electric Code and all otherapplicable federal, state, and local codes and standards.Manufacturer’s InstructionsAll equipment must be installed and maintained in accordance with manufacturer’s instructions.Best PracticesAll aspects of system design and installation shall conform with industry best practices asregionally appropriate.WarrantiesManufacturer warranties must be provided with all installed equipment.2.f. Free RidershipIncentive eligibility is limited to proposed projects that are wholly contingent upon a commitmentof incentive funding. Projects contracted without the express written assumption of incentivefunding availability are ineligible to receive such funding, as are projects for which constructionhas begun prior to the commitment of incentive funds.3. Incentive Design and Delivery3.a. Total FundingIn Program Year 2021, the total amount of incentive funding available to Project Sponsors isapproximately 250,000.This value may vary depending on the mix of measures that apply and are accepted. Theprogram plan assumes approximately 90% of program funds are allocated to lighting projects.2021 Xcel Energy Small Business Market Transformation Programpage 6

The Program Manager reserves the right to limit funding of non-lighting projects to ensure theprogram achieves contracted energy savings goals.3.b. Incentive LevelsIncentive levels for Program Year 2021 are as follows: Lighting projects: 0.15/kWh savingsHVAC projects: 0.40/kWh savingsCool roof projects: 0.40/kWh savingsThe final incentive for any project will be determined following verification of the installed systemby a program inspector. Systems not meeting all Program requirements are ineligible forincentives.3.c. Incentive AssignmentsThe incentive may be assigned by the Project Sponsor to the Project Sponsor, Customer,equipment supplier, or other third party with a material interest in the project.3.d. First-Come, First-Served PolicyIncentive funding is offered to eligible Project Sponsors and Projects with complete applicationson a first-come, first-served basis, subject to the limits on participation described above.3.e. Incentive Commitment and ExpirationFrom the date of pre-approval, projects must be completed within 90 days or by November 15,whichever comes first. Frontier reserves the right to revoke funding committed to projects thatare not completed prior to the incentive expiration date.3.f. Other Utility ProgramsParticipation in this Program does not affect a Customer’s eligibility to participate in other Utilitysponsored energy efficiency/conservation programs.4. Participation Process4.a. OverviewProject Sponsors interact with the Program primarily via P3 (the Program Portfolio Portal).Frontier Energy has designed P3 to accommodate certain process steps common to mostprojects. This section provides a high level overview of these process steps.Participating in the Xcel Small Commercial Market Transformation Program is comprised ofdistinct stages. Below are the stages to create a Small Commercial project and move it throughthe workflow process:1.2.3.4.5.6.Project Sponsor EnrollmentProject Initiation and SubmittalPre-ApprovalInstallation, Completion and SubmittalFinal Inspections and ApprovalPayment2021 Xcel Energy Small Business Market Transformation Programpage 7

The following sections provide further detail on each process step. Additional detail may befound in the P3 User’s Guide available to Project Sponsors upon enrollment.4.b. Detailed Process Steps1. Project Sponsor EnrollmentProject Sponsors begin the enrollment process by navigating to the P3 URLsps.p3.enertrek.com and clicking the Create Account link. Registration begins by providingbasic information and a password, after which the system generates a verification email which issent to the email address entered by the enrollee. Clicking a link in the verification emailenables the user to log in and create a new market actor profile, which may require uploads ofcertain company information, such as a W9 form, a current certificate of insurance, and/or otherinformation. Once enrolled, these uploaded documents may be downloaded, edited, deleted,and re-uploaded by the Project Sponsor, in order to maintain current documentation of theProject Sponsor’s eligibility to participate.Once the market actor profile is complete, the Project Sponsor must complete an enrollmentapplication for the Xcel Small Commercial Market Transformation Program. When theenrollment application is submitted, the application will be reviewed and the Project Sponsor willbe notified via email upon approval or denial. Once approved, all Project Sponsors must signand submit the Project Sponsor Agreement and other documentation referenced therein beforethey will be able to initiate and submit projects in the system.2. Project Initiation and SubmittalInitiating a project requires the Project Sponsor to select the project type and enter allinformation required to create the project. This typically consists of the following information: Project nameContact name and contact informationEstimated start and completion datesCustomer informationPremise informationMeasure survey formsOther project documentsNotesWhen all required information has been uploaded, the Project Sponsor submits the project forreview.3. Pre-ApprovalOnce an administrator has reviewed the project details, the project will be approved, denied, orsent back for more information. This is also where the Pre-Inspection generally takes place. TheProgram Manager may schedule a Pre-Inspection to verify eligibility of the project, savings andincentive estimates, before approving the project. Once pre-approval is granted, the ProjectSponsor may begin project-related work.4. Installation, Completion and SubmittalThe Project Sponsor begins installation of the contracted energy efficiency measures. Duringthe work completion pending stage, all project-related work is completed and, if necessary, new2021 Xcel Energy Small Business Market Transformation Programpage 8

Survey Forms are uploaded to correctly represent the measures that were implemented. Afterconfirmation that Project measures for each premise are completed, and all requireddocumentation has been uploaded, the Project Sponsor submits the work for final approval.5. Final Inspections and ApprovalThe Program Manager may schedule a final inspection to verify project details prior to finalapproval. The Project is then reviewed by the Program Administrator and either approved, sentback for corrections or denied. The Project Sponsor will receive an email indicating the statusand any additional notes if deemed necessary.6. PaymentOnce a project has been approved it will be invoiced by the Program Administrator and paymentmade. Project status will be indicated as Payment Pending (Invoicing) and Paid. Market Actorwill receive email notification once Payment has been made. Payment delivery may require upto 6 weeks from the date marked as Payment Pending.4.c. Differences Between Pre-Applications and Final ApplicationsChanges which decrease the total savings of a project will reduce the incentive amount.Changes which increase the total capacity of a project may increase the incentive amount,subject to availability at the time the Program Manager is notified of the change. ProjectSponsors are encouraged to clearly communicate any such changes in advance with theProgram Manager to determine the effect, if any, on project eligibility and/or the Customerincentive amount.5. Quality Control / Quality AssuranceThe program design employs pre- and post-inspections as well as non-conformance proceduresfor investigating the root causes of any failed inspections. Handled on a one-by-one basis,consequences may include a reduction/refusal of incentive payment. In instances whereincorrect information was deliberately provided by a contractor or distributor, those businessesmay be suspended or expelled from the program.Applicants with projects that are found to be unlikely to produce estimated savings through thepre-inspection process will be notified of the issues regarding their project design ordocumentation and will be allowed to re-submit or amend their application.Applicants with projects that fail the post-installation inspections will be required to correct theproblems identified and either submit evidence of correction or schedule a second inspection, atthe Program Manager’s discretion. Project Sponsors that fail to correct deficiencies in a timelymanner may be removed from the Program and/or be denied an incentive.6. Project Sponsor Performance Standards6.a. Project Sponsor StandingAll Project Sponsors must maintain good standing with the Program. Project Sponsors in goodstanding are defined as those: Who have attended all required Project Sponsor meetings, technical training sessionsand other mandatory events;2021 Xcel Energy Small Business Market Transformation Programpage 9

Whose three most recent installations subject to a Program inspection have passedthose inspections on the first attempt; Who have maintained and documented to the Program Manager proper and currentlicensure, certificates, insurance, and other eligibility requirements; Who have provided all required progress reports in a timely fashion; Who have completed more than 80% of approved projects within the applicableincentive reservation period; and, Who work in good faith with the Program Manager to resolve any Customer disputes orcomplaints and to change business practices as appropriate to reduce the likelihood offuture disputes or complaints.Project Sponsors who are not in good standing may be removed from the Program. They will benotified by the Program Manager of their status and will be required to work with the ProgramManager to develop a plan to correct the problem(s). A lack of progress on this plan may lead todisqualification.6.b. Project Sponsor DisqualificationAll Project Sponsors are required to maintain proper licensure, certificates, insurance, and othereligibility requirements as stated in the online registration system. The Program Manager mayalso determine and maintain metrics of Project Sponsor performance which may be used todisqualify Project Sponsors from participation in the Program. Project Sponsor performancemetrics which indicate potential grounds for disqualification may include, but are not limited to: High rates of Customer complaints handled by Program Management staff; High rates of submitting incomplete or ineligible project applications; Low rates of passing Program inspections; Low rates of completing pre-approved projects within the incentive reservationperiod.6.c. Dispute ResolutionUnresolved disputes hurt the success of the Program. In this respect, the overriding objective ofall the participants in the Program is to achieve 100% Customer satisfaction and to satisfactorilyresolve all disputes at the lowest level possible.Disputes, concerns or complaints arising from Customers should, in general, be addressed atthe lowest level possible. Most of the time, this means the problem should be resolved betweenthe Project Sponsor and Customer.Issues that cannot be addressed by the Project Sponsor and Customer and are brought to theattention of the Program Manager may be addressed by the Program Manager. The ProgramManager’s first level response shall be to document the date and nature of the complaint andthe specific details. This shall include contact information, name, address, phone number and

Frontier Energy works on behalf of the Utility to implement the Program, and is referred to as the Program Manager. For questions regarding Frontier Energy' relationship to the Utility and the Program, please contact: Bryan Whitson, P.E., DSM Product Portfolio Manager, Xcel Energy Bryan.J.Whitson@Xcelenergy.com, (806) 378-2887