Description of All Measures Recommended in Study by Professional Technical Assistance

Customers are advised to reserve technology incentives funding from the Technical Assessment & Technology Incentive (TA&TI) program for eligible demand response measures.

Eligibility for Technology Incentives: Please review the TA&TI Program Application for Technology Incentive (Form 5) for all applicable rules and requirements for technology incentives. The following is a summary of some of the applicable rules and requirements:

The TA&TI Program offers technology incentives for the purchase and installation of demand response measures that provide dispatchable on peak load reduction at the customer-owned facilities. Eligible customers can receive $250 per kW ($300 for Auto-DR customers) of verified dispatchable on peak load reduction, not to exceed the actual, reasonable cost of the installed measure(s). The dispatchable on peak load reduction is defined as existing load that, upon request, could be temporarily reduced for SCE’s entire on peak period or temporarily shifted from SCE’s on peak period to another time period. Technology incentives are intended for automation and/or technology improvements. SCE will not provide technology incentives for manual improvements to existing equipment or customer behavior changes.

To be eligible for a technology incentive from the TA&TI program, the customer-owned facility (i) must be receiving bundled or direct access electric service from SCE, (ii) must have an interval electric meter, (iii) must be billed on a SCE commercial, industrial, or agricultural electric rate schedule, and (iv) must have purchased and installed a qualifying demand response measure within the previous 18 months from the date the customer submits its application for a TA&TI technology incentive.

To request a technology incentive payment from SCE, customers must install eligible demand response measure(s), and complete and submit the TA&TI Program Application for Technology Incentive (Form 5). All incentive payments are subject to the availability of funds and the measurement and verification of the actual dispatchable on-peak load reduction achieved by the installed demand response measure(s).

Note: When submitting the TA&TI Program Application for Technology Incentive (Form 5). The customer will be required to provide a proof of purchase and installation (including, if applicable, proof of payment of third-party installation), of the qualifying demand response measure within the previous 18 months from the date the customer submits its Application for Technology Incentive by attaching receipts, cancelled checks, credit card statements and other documentary proof to the application. If applicable, for proof of payment of third party installation, SCE requires an itemized invoice from the third-party installation contractor that clearly breaks down each item of labor and material (if any) that was invoiced by the third-party contractor for the installation of the qualifying demand response measure, and proof of payment of the invoiced costs. Any in-house labor costs associated with installation will not be considered as part of the cost of the installed measure(s).Note: To be eligible for an incentive, a customer must own the qualifying demand response measure outright. Lease or financing arrangements do not qualify under the program.

SCE will not reserve funds for the TA&TI program in excess of $250 per kW ($300 for Auto-DR customers) of total projected demand response load reduction.

How to Reserve Technology Incentives Funding:

1. Complete and sign this Reservation Request.
2. Scan and email the completed Reservation Request to the ta&.
3. SCE will confirm the reservation by emailing a confirmation to you at the email address you provide below.
4. Your reservation is not valid until SCE confirms the reservation and emails the confirmation back to you.
5. Customers may request an extension to their reservation by sending an email to ta&. If you have questions about this process please contact the TA&TI helpline at 866-238-3605.

Reservation Request:

I hereby request, on behalf of the SCE Customer listed above, a technology incentive reservation from SCE for the demand response measures listed on page 2 of this Reservation Request. I understand that this reservation will be in effect for the duration approved by SCE commencing from the date I receive written confirmation from SCE of the reservation, which may be different from the reservation I requested. Reservations are in effect for 180 calendar days from the date of confirmation unless a longer duration is requested by the customer and approved by SCE.

SCE may, on a case-by-case basis if warranted, authorize a reservation period in excess of 180 days, but in any event no longer than 540 days. SCE recognizes that some projects may require more than 180 days to complete. For SCE to consider a reservation in excess of 180 days, the customer must demonstrate that its project requires more than 180 days to complete (see below). SCE reserves the right to request customer plans (including project and construction plans) and validate start and end dates for all such projects. In such cases, a reservation period in excess of 180 days may be established at SCE’s sole discretion. SCE does not guarantee that reservations in excess of 180 days will be granted.

Check the box below if you are requesting a reservation in excess of 180 days and provide an explanation of why additional time is needed to complete your project. If you do not check the box, or you do not provide an explanation that in SCE’s judgment warrants additional time, then your reservation request will be considered for no more than 180 days.

 Yes, I am requesting a reservation in excess of 180 days. I require ____ days to complete my project because:

______.

The technology incentive reservation will expire upon the last day of the reservation period unless a completed Application for Technology Incentive is submitted by the customer prior thereto. Extensions to technology incentive reservations may be granted at SCE’s sole discretion and must be requested prior to the expiration of the reservation. Technical incentives are paid on first come, first served basis in accordance with Program rules and requirements while funding lasts.

SCE may request proof of progress towards completing a project for which a reservation was approved at any time during the reservation period. Failure to demonstrate adequate performance towards completion of a project for which a reservation was approved may result in forfeiture of the reservation.

SCE reserves the right to modify or reject any reservation request that, in SCE’s sole judgment, contravenes the requirements of the TA&TI program. I understand and acknowledge that this reservation does not guarantee future payment under the TA&TI program.

Identify all of the Demand Response Measures for which a reservation is being requested:

If an incentive is being requested to enable participation in the Automated Demand Response Program (Auto-DR) please state “Yes” in the “For Auto-DR” column. Be sure to mark “Yes” in the box for the applicable measure.

The “Maximum Funds Available for Reservation” is only an estimate based on the cost of equipment and installation and the potential demand reduction presented by the engineering firm in the technical audit. SCE potentially could pay more or less than the “Maximum Funds Available for Reservation.” Please read the instructions on page 1 of this document for more details.

SCE caps the Technology Incentive on the verified maximum potential peak demand reduction verified during the test by the Program Verification Engineer. The test consists of verifying that demand response equipment installed and is able to reduce the kW stated.

There may be exceptions to this policy. For sites with large seasonal kW variations, the costs will be capped according to the average maximum demand reduction that is identified during the test by the Program Verification Engineer. SCE will address these exceptions on a case by case basis.

It may be possible that not every opportunity to reduce usage during demand response events were identified by the Engineer Firm that performed your Technical Audit. If you believe that there are additional opportunities, please contact your SCE Account Representative.

This Program is effective from March 15, 2006 until December 31, 2008 or until program funding is depleted, which ever comes first. The Program may be modified without prior notice.

Technology Incentive Reservation Request – Form 4 last modified 10/04/2007WGJCVT Page 1 of 5