Contract - Guaranteed Energy Savings Proj No 124-015 - Veregy

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27 "Financing Document" refers to that document executed between CUSTOMER and a third-party financing entity providing for payments from CUSTOMER third-party financing entity. "Final Project Acceptance" refers to CUSTOMER acceptance of the installation of the ECMs as described in Attachment A. "First Guarantee Year" is defined as the period beginning on the first (1st) day of the month following the date of Final Acceptance of the Work installed and ending on the day prior to the first (1st) anniversary thereof. "Guarantee Period" is defined as the period beginning on the first (1st) day of the First Guarantee Year and ending on the last day of the final Guarantee Year. "Guarantee Year" is defined as the First Guarantee Year and each of the successive twelve (12) month periods commencing on the anniversary of the commencement of the First Guarantee Year throughout the Term of this Agreement. "Guaranteed Savings" is defined as the amount of Energy Savings, resulting Avoided Energy Costs as determined using the rates as identified in Attachment E, Avoided Operational Costs, and Avoided Future Costs necessary to pay for the cost of the Work incurred by CUSTOMER in each Guarantee Year (as identified in Section 3.1 hereof). "I.P.M.V.P." International Performance Measurement and Verification Protocol (2022 or later version) provides an overview of current best practice techniques available for measurement and verification of performance Agreements. This document is the basis for the F.E.M.P. protocol and is fully consistent with it. The techniques are classified as Option A, Option B, Option C, and Option D. "Measurement and Verification Plan" (M&V Plan) is defined as the plan providing details on how the Guaranteed Energy Savings will be verified. "Operational Costs" shall include the cost of operating and maintaining the Facilities, such as, but not limited to, the cost of inside and outside labor to repair and maintain the ECMs, the cost of custodial supplies, the cost of replacement parts, the cost of deferred maintenance, the cost of lamp and ballast disposal, and the cost of new capital equipment. "Option A" Retrofit Isolation with Key Parameter(s) Measurement is a verification approach used for ECMs in which energy use or demand of the equipment can be isolated from that of the remainder of the Facility. Key parameters impacting the Energy Savings are measured pre- and post-installation, while some parameters may be estimated. This is the most cost- effective method for verification of savings. Option A involves: Identifying key parameters to be measured; and Parameters that are not impacted by the ECM have been determined and; Operational Verification, which includes confirming: The equipment and/or systems that were to be installed under this Agreement have been installed; and The installed equipment is operating and functioning in accordance with the specifications in the Agreement The installed equipment components or systems continue, during the term of the Agreement, to meet the specifications of the Agreement and are maintained by CUSTOMER or VEREGY as required per the Agreement. "Option B" Retrofit Isolation with All Parameter Measurement is a verification approach used for ECMs in which energy use or demand of the equipment can be isolated from that of the remainder of the Facility, and the ECM has variable loads and operating hours. All parameters impacting the Energy Savings are measured pre- and post-installation. Option B involves: Identifying all parameters associated with the Energy Savings; and Operational Verification, as outlined under Option A. "Option C" Whole Facility is a verification approach where Energy Savings are determined by measuring post-retrofit energy use at the whole Facility or sub-Facility level and comparing it to the measured baseline energy use. This is typically done through utility billing data. This verification approach is more often used when the ECM affects many systems within a Facility. Adjustments are made to the Baseline Energy Use to reflect operational or external changes from the Baseline Period to the Guarantee Year. Operational Verification is performed as identified under Option A.