Energy-Efficient Building

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1 SRP PowerWise Homes Your Partner in Energy-Efficient Building Effective Jan. 1 Dec. 31, 2011 Click a title below to skip to that section of the document. Overview Systems and Testing Homebuilder Benefits Homebuyer Benefits Map of SRP Service Area Marketing Materials Disclosures

2 SRP PowerWise Homes We are excited to introduce SRP PowerWise Homes, our energy-efficient home program. SRP PowerWise Homes partners SRP with homebuilders to support their image as a provider of quality-built housing and to increase the energy efficiency of the homes available to new-home buyers in the SRP service area. This provides the builder with a strong and competitive marketing advantage because energy efficiency is an important feature to the new-home buyer. SRP PowerWise Homes can help improve the quality of living and save money for homeowners. The criteria established by SRP PowerWise Homes reduce energy consumption on a basis of kilowatt-hours per square foot, thereby lowering utility bills. With the support of builders, today s homebuyers are aware of the importance of energy-efficient home construction and understand how certain design features can save them money. The flexibility of the SRP PowerWise Homes program benefits builders and buyers alike. To facilitate builders in customizing their communities to gain competitive advantages, the PowerWise Homes program is fuel neutral and still permits trade-offs between construction features to aid in meeting program requirements. To demonstrate the energy efficiency of the models being offered to buyers, testing and inspections are performed on randomly selected houses during construction and used to complete a Home Energy Rating System (HERS) rating. A HERS rating is based on an evaluation of a house design in comparison with a computer-simulated reference house of identical size and shape. Modeled details are derived from the blueprint specifications. The tests performed identify the volume of air leaking out of or into the house or the air distribution ducts. The Systems and Testing section provides additional details. SRP values the relationships developed with homebuilders throughout the years and will continue to promote energy-efficiency programs through partnerships with them.

3 How to Qualify as an SRP PowerWise Homes Community The SRP PowerWise Homes program s flexibility in design standards and fuel-neutral options allows builders to offer unique products, to adjust to changes in homebuyer tastes and to be responsive to fluctuating market conditions. Program Requirements ½½Home design shall equal 84 or less on the HERS Index. ½½Compliance with the International Residential Code (IRC) as adopted by local municipalities is required. ½½For each model, a complete set of architectural plans and room-by-room load calculations for a code-compliance analysis based on Manual J (8th Edition) are required. ½½Water heaters may consume either natural gas or electricity and need to comply with IRC table N ½½Electric heat pumps must be nominally rated at 14 SEER/8.0 HSPF or better. ½½If an electric air conditioner and a natural-gas furnace are installed, the air conditioner must be nominally rated at 14 SEER or better and the furnace must be manually rated at 80% AFUE or better. ½½Tier 3 plumbing fixtures must have the Environmental Protection Agency (EPA) WaterSense label or exhibit similar flow rates. Toilets must have the EPA WaterSense label or exhibit a flush rate of 1.28 gallons per flush or less. Showerheads must have the EPA WaterSense label or a flow rate of 2 gallons per minute (GPM) or less. Lavatory faucets must have the EPA WaterSense label or a flow rate of 1.5 GPM or less. (Aerators with flow rates of 1.5 GPM or less may be installed on standard lavatory faucets.)

4 ½½During construction, the following inspections and performance tests will be performed by a third party on selected homes: Inspection of duct sealing and leakage Insulation inspection for Grade I installation Window inspection to confirm that the installed product matches specified product (e.g., frame material, number of panes, glass type) Inspection of the building envelope and insulation in accordance with the ENERGY STAR version 2 Thermal Bypass Checklist Test for leakage in the building envelope Confirmation of energy-efficiency ratings on all heating and cooling appliances Confirmation of water-efficient plumbing fixtures (Tier 3 only) Verification of whole-house fresh-air ventilation and pressure balancing of each room (Note: Powder and laundry rooms are exempt from pressure balancing.) Tier Incentives For contracts signed after Jan. 1, 2011, the PowerWise Homes program includes incentives based on the home s rated energy efficiency. Tier Features Incentive 1 HERS Index of $450/home 2 HERS Index of $800/home 3* HERS Index of 70 or less $1,150/home *Additional water-efficiency requirements apply. For the latest incentives, go to srpnet.com/powerwisebuilder.

5 What Is an Energy Rating? Getting information about the relative energy efficiency of washers, dryers, heating systems, computers and cars is easy for a consumer just check the product efficiency label on the product. Ironically, when buying a home, the largest single purchase and by far the biggest source of energy bills for most families, consumers do not have such a reference. A home energy rating, comparable to checking the miles-per-gallon sticker on a new car, fills that need. The home energy rating is a standard measurement of a home s energy efficiency. An energy rating allows a homebuyer to easily compare predicted energy costs for each model being considered. Home energy ratings involve an evaluation of a home s design by a residential energy-efficiency professional a home energy rater. Home energy raters are trained and certified by the National Home Energy Rating System Accreditation Board, an organization governed by guidelines established by the National Association of State Energy Officials and the Mortgage Bankers Association of America. The home energy rater models the home and uses its energy characteristics, such as insulation levels, window efficiency, wall-to-window ratios, the efficiency of the heating and cooling system, the solar orientation of the home and the water-heating system. Diagnostic testing, such as a blower door to test for air and duct leakage, is part of the rating. One of the major differences between a home energy rating and an energy audit or weatherization assessment is that the rating is a recognized tool in the mortgage process. Home energy ratings are valuable to the housing industry and can be used in a variety of ways.

6 What s the HERS? The Home Energy Rating System, or HERS, is a computer-simulation-based method for assessing a home s existing energy efficiency and its potential for improvement. The rating requires a detailed home inspection and testing by a trained rater. Components of the rating system are as follows: ½½HERS rating: This is based on an evaluation of a house design in comparison with a computer-simulated reference house of identical size and shape. Modeled details are derived from blueprint specifications. The tests performed identify the volume of air leaking out of or into the house or the air distribution ducts. ½½Rating index: The data gathered by the home energy rater is entered into a computer program and translated into points. The home receives a point index between 100 and 0, depending on its efficiency. Houses, particularly ones of different sizes or that use a combination of fuels, can have very different energy loads yet still be fully compliant with a standard. That is, houses having the same HERS rating can have widely different utility bills. The rating reflects how close a certain house is to its potential efficiency given its size, shape, fuel mix and other factors. ½½Energy-use and energy-cost predictions: A HERS predicts typical energy use and energy costs for specific end uses, such as heating and hot water, as well as for the whole house. The predicted energy cost is simply the predicted energy use multiplied by the local utility rate. Unlike indexes, which are relative to a reference house, predictions are absolute measures. Absolute measures can be used to compare houses in the same way that miles-per-gallon ratings are used to compare cars. ½½Recommendations: Your SRP account manager can recommend energy-efficient modifications to help you (the builder) meet or exceed the threshold rating (index) to participate in the SRP PowerWise Homes program.

7 Why SRP PowerWise Homes Are Tested House Envelope A house s cooling and heating equipment is only part of the equation. The efficiency of the building envelope (outer walls, floor, ceiling or roof) also requires attention. A house s cooling and heating system subtracts or adds heat, depending on the season, and the house uses (or wastes) it in exact balance. So although increasing the energy efficiency of the cooling and heating equipment is worthwhile, controlling heat gain or loss from a house has a much more significant impact on operating costs. To increase the economy of controlling the temperature within a house, many components come into play. In most houses, air leakage is the biggest robber of cooling and heating dollars. Houses leak air because of the difference between indoor and outdoor air pressure. Imagine a house as a hot-air balloon. The biggest pressure differences occur at the highest and lowest points in a building. Gaps in these areas typically leak more air than gaps in between these two points. Warm air rises and leaks out any unsealed areas at the top of the building. Leaks into the house tend to be at the bottom of the structure, pulling in cool air. A blower door test is used to both find and measure air leakage. The number of air changes per hour (ACH) is a measure of how frequently 100% of the air volume inside the house is replaced in an hour. ACH is measured at a standard pressure differential (pressure inside the house minus pressure outside the house, measured in pascals) and tells us how the house is performing and where any problems might be located. For the PowerWise Homes program, the number of ACH is limited to Another way to look at this is that all the air in the house gets replaced in a little less than three hours.

8 Air Distribution Ducts Leaks in forced-air duct systems are recognized as a major source of energy waste in both new and existing houses. Studies indicate that duct leakage can account for as much as 25% of total house energy loss and in many cases has a greater impact on energy use than air infiltration through the building shell. Just as important, duct leakage can prevent a heating and cooling system from doing its job properly, resulting in hot or cold rooms and humidity problems. Worse yet, duct leaks can create air-quality problems by pulling pollutants and irritants directly into the house. ½½Leaks in the supply ductwork cause expensive conditioned air to be dumped into the attic, crawl space or garage instead of into the house. ½½Return leaks pull outside air (hot in summer, cold in winter) into the duct system, reducing both efficiency and capacity. ½½Leaks in return ductwork draw air into the house from crawl spaces, garages and attics, bringing with it dust, mold spores, insulation fibers and other contaminants. ½½Household depressurization from duct leaks and imbalanced duct systems can cause spillage of combustion products (from furnaces, water heaters and fireplaces) into the house. A duct leakage performance test ( duct blaster ) involves pressurizing the duct system with a calibrated fan and simultaneously measuring the airflow through the fan and its effect on the pressure within the duct system. The tighter the duct system, the less air you need from the fan to create a change in duct system pressure. Duct leakage measurements are used to diagnose and demonstrate leakage problems, estimate efficiency losses from duct leakage and certify the quality of duct system installation. Fresh-Air Ventilation and Room Pressure Balancing An SRP PowerWise Home can mean a tightly sealed home. In order to ensure room comfort and healthy air quality, fresh-air ventilation would be required to provide outside air to the indoor environment through exhaust, supply or balanced ventilation. Builders would also be required to equip outside air intakes for ventilation with filters and shutoff dampers. Pressure balancing requires that all rooms in the conditioned space of the home not exceed a pressure difference of +/- 3 pascals relative to the central (open) areas of the home when interior doors are closed and the central air handler is operating.

9 Insulation In order to assist in the prevention of air leaks caused by gaps or weak joint seals, insulation must be properly installed. Reducing air leaks into or out of the home and properly installing insulation are key elements to having a high-performance envelope that provides an energy-efficient and comfortable home. Water Conservation SRP PowerWise Homes built to Tier 3 standards will help homebuyers minimize their water use, save money on their water bill and save resources for their community. Water conservation is key to building efficient, more sustainable homes and communities. Reducing water consumption in production homes throughout SRP territory will help preserve the quality of life our residents enjoy. How SRP PowerWise Homes Are Tested Initially, 100% of the houses constructed are inspected and tested until seven consecutively built houses have each successfully met all of the requirements. Once such a group of houses has successfully met all of the requirements, testing and inspections will be performed on one in every seven houses. The house inspected is called a test house. When a test house successfully meets the requirements for the program, each of the houses within its group of seven houses will be treated as also having met all of the requirements. For requirements regarding failed inspections or tests, please review the contract. The following inspections and tests are performed on each test house: ½½Inspection of duct sealing ½½Test for duct leakage, with results expressed in cubic feet per minute of no greater than the equivalent of 6% of conditioned floor space ½½Window inspection to confirm that the installed product matches the specified product (e.g., frame material, number of panes, glass type) ½½Inspection of the building envelope and insulation in accordance with the ENERGY STAR version 2 Thermal Bypass Checklist ½½Test for leakage in the building envelope, with results expressed in natural ACH of 0.35 or less ½½Confirmation of energy-efficiency ratings on all heating and cooling appliances ½½Confirmation of water-efficient plumbing fixtures (Tier 3 only) ½½Verification of whole-house fresh-air ventilation and pressure balancing of each room (Note: Powder and laundry rooms are exempt from pressure balancing.)

10 Framing and insulation specifications are inspected based on the submitted builder plans. Residential Energy Services Network (RESNET) identifies various levels of insulation (below).

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15 Homebuilder Benefits Product Recognition SRP has promoted energy-efficient homes for many years. Consumers want a quality-built house that can keep utility bills low in our desert climate. As a result, an SRP PowerWise Homes endorsement can help boost buyer interest in your subdivision. Incentives SRP understands the costs of building an energy-efficient home. In order to help builders offset these costs, SRP is providing incentives to homebuilders. Ask your account manager about incentive details. Energy Code Compliance Certificates With each SRP PowerWise Homes contract signed, these certificates are provided at no charge. They can be used with the municipality where the subdivision is located. Utility-Cost Analysis Sheets Your sales team can offer prospective homebuyers a brochure that provides customers an accurate estimate of the annual utilities for each floor plan offered in the SRP PowerWise Homes community. The brochures help answer customers questions about heating and cooling costs. Customers who are informed in advance about operating costs are more satisfied with their home and the homebuilder. Objective Testing and Inspections Testing and inspections are an important part of the SRP PowerWise Homes program and are performed at various stages of construction. SRP covers the costs for the testing of a house. Repairs must be made in a timely manner to avoid retesting charges to the builder. Lower Environmental Impact Because SRP PowerWise Homes are so energy efficient, the houses you are building will conserve natural resources for decades to come.

16 Increased Marketing and Visibility ½½Placement of the participating subdivision s name and location on SRP s website (srpnet.com/powerwisehomes) in the section targeted to new-home buyers ½½A link on SRP s website to the page on the builder s website promoting the participating community ½½Exterior signage at the sales office and interior signage within each model ½½Doormats at each model and at sales office ½½Camera-ready SRP PowerWise Homes logos for use in the builder s promotional campaign for the community ½½Point-of-sale materials (brochures, cost-savings estimates, etc.) describing the various aspects of SRP PowerWise energy-efficient homes ½½Promotional items business-card holders, candy jars, brochures, doorbells ½½Educational seminars hosted by SRP to promote the SRP PowerWise Homes program and communicate why the homes are more efficient and how they will reduce homebuyers monthly energy bill ½½Advertising via one or more media channels, such as newsprint, radio or Web

17 Homebuyer Benefits Save your customers money, time and energy when they purchase an SRP PowerWise Home. Utility-Cost Analysis Sheets Prospective homebuyers can review carefully estimated utility costs for the specific floor plan they choose. The estimates are provided by SRP and are based on actual SRP electric rates, local natural-gas rates and local weather data not national averages. Peace of Mind An SRP PowerWise Home features home performance standards that can save homeowners 10% or more on their electricity expenses compared with homes built to the standard reference home of HERS. High Construction Standards SRP conducts inspections of SRP PowerWise Homes in various stages of construction to ensure energy-efficiency standards are being met. Environmentally Supportive Because SRP PowerWise Homes are so energy efficient, many homeowners are pleased to know they are helping to conserve natural resources. Confirmation of Certification and Electric-Panel Sticker All buyers of SRP PowerWise Homes receive a certificate and an electric-panel sticker from SRP documenting that the home plan meets the energy-efficiency standards of the SRP PowerWise Homes program. Added Resale Value When it comes time to resell a house, one proven to be energy efficient is especially attractive to prospective buyers. Industry analysts predict that in the near future more than 2 million homes are expected to receive an energy-efficiency rating similar to the SRP PowerWise Homes program. Improved Indoor Air Quality Reduced leakage in ducts and the building envelope means less unfiltered outside air being filtered back into your home. Improved Water Efficiency (Tier 3 only) Reduced water usage in the home means lower utility bills and less impact on the community s natural resources.

18 SRP PowerWise Homes does your homework for you. Energy efficiency should be on the mind of every person looking to purchase a new home, but what do you look for? Some items seem obvious, however most are not, especially when many of the components that affect a home s energy efficiency are hidden. With SRP PowerWise Homes, you can be sure your home will be comfortable and will save you money. Another step in purchasing a new home is figuring out how much your utility costs will be. It s almost impossible for the average homebuyer to calculate this accurately, but SRP PowerWise Homes uses the nationally accepted Home Energy Rating System (HERS) to estimate bills. A HERS calculation thoroughly evaluates all the energy efficient details that go into a home. After the rating is completed, this information is combined with the most current SRP rates and price plans (plus any applicable gas rates) to give you the most accurate estimate possible. PowerWise Homes estimates are calculated using some of the following information: n Construction details specific to each home - A home is not just square footage. Is it two-story or single level? Are the ceilings vaulted or flat? SRP PowerWise Homes takes into account as many construction specifics as possible. n The exact amount of glass per plan - Almost half of the heat that enters a home here in the Valley of the Sun is through the glass, so it is very important to know the exact ratio of glass in relation to the size of the home in order to produce an accurate estimate. Our SRP Home Energy Raters have worked with your homebuilder to get exact measurements and specifications for each window. n Equipment specifications - Understanding that there are many different types of windows, water heaters, air conditioners, etc., SRP PowerWise Homes uses specific manufacturer s information to assure your utility cost estimates are even more accurate. n Weather data specific to Valley of the Sun - Phoenix and the surrounding area is not a national average when it comes to weather. Our average temperatures are much warmer than most of the country, while our humidity levels are typically lower. We even understand that our ground water temperatures are warmer than other places. n The little things - When estimating your bill, SRP PowerWise Homes also takes into account items like covered patios and insulated entry doors. If you re in the market for a new home, take a look inside this simple guide. See for yourself why SRP PowerWise Homes are the best energy value in the Valley. ESTIMATED ENERGY COSTS

19 Homes The best value in household energy efficiency is available through SRP and American Family Homes. ANNUAL ENERGY COSTS Home Design Home Design Home Design Home Design Home Design Bella Americana Washington Jefferson Lincoln Franklin Roosevelt by American Family Homes 2,077 sq. ft. 2,495 sq. ft. 3,283 sq. ft. 3,297 sq. ft. 3,505 sq. ft. HEATING $ 174 $ 192 $ 220 $ 195 $ 231 COOLING $ 502 $ 601 $ 758 $ 783 $ 922 WATER HEATING $ 200 $ 225 $ 273 $ 249 $ 249 LIGHTING AND APPLIANCE $ 709 $ 806 $ 991 $ 995 $ 1,044 SERVICE CHARGE $ 272 $ 272 $ 272 $ 272 $ 272 ANNUAL TOTAL* $ 1,859 $ 2,096 $ 2,516 $ 2,495 $ 2,718 Monthly Average $ 155 $ 175 $ 210 $ 208 $ 227 Monthly Summer Average $ 173 $ 198 $ 241 $ 243 $ 267 Monthly Winter Average $ 131 $ 144 $ 169 $ 162 $ 173 Energy-Saving Features Blown ceiling insulation R-30 Vinyl dual-pane low-e windows Blown wall insulation R-19 Quality construction standards High-efficiency 14 SEER air conditioning Fresh air ventilation Assumptions Temperature settings: 78 summer, 70 winter * Your actual energy costs may be higher or lower than those illustrated, depending on individual lifestyle, number of people living in the house and SRP s fuel cost adjustment factor. SRP reviews this adjustment factor every six months, with any changes made effective May 1 and/or Nov. 1. X /01/2010

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21 WEBSITE FOR CUSTOMERS srpnet.com/powerwisehomes

22 WEBSITE FOR BUILDERS srpnet.com/powerwisebuilder

23 SRP POWERWISE HOMES CERTIFICATE Certificate #12345 Joe Sample 123 Main Street Anytown, AZ Builder: ABC Homes Congratulations, your new home is SRP PowerWise Homes certified! The SRP PowerWise Homes program is a partnership between SRP and your builder to provide you a quality-built, energy-efficient home. Enjoy your new energy-efficient SRP PowerWise Home

24 SES sticker 5 3.5

25 WEB BANNERS SAVE UP TO $550 A YEAR WITH A POWERWISE HOME TṂ NOW MORE ENERGY-EFFICIENT THAN ENERGY STAR QUALIFIED HOMES. To find an energy-efficient home, click here. SAVE UP TO $550 A YEAR WITH A POWERWISE HOME TṂ NOW MORE ENERGY-EFFICIENT THAN ENERGY STAR QUALIFIED HOMES. To find an energy-efficient home, click here.

26 PRINT AD SAVES YOU UP TO $550 A YEAR. NOW MORE ENERGY-EFFICIENT THAN ENERGY STAR QUALIFIED HOMES. HOME TESTED AND INSPECTED FOR INSULATION, DUCT AND HOME AIR LEAKAGE. PARTNERSHIP WITH LEADING VALLEY BUILDERS. AN EASY WAY TO FIND IT ALL. TO FIND AN ENERGY- EFFICIENT HOME, THERE S ONLY ONE THING TO CHECK. Look for the SRP PowerWise Homes seal. It s your assurance that you re buying a home that was specifically designed to save energy and money in our desert climate. We ve thought of everything, so all you have to look for is the PowerWise Homes seal. To learn more, visit srpnet.com/powerwisehomes.

27 BILLBOARD SAVE UP TO $550 A YEAR. Ask your builder about SRP PowerWise Homes.

28 NEW-CUSTOMER BROCHURE srpnet.com January 2011 Powerwise HoMes BeTTer BY DesiGN SRP POWERWISE HOmES POWERWISE BuIldIng locations measuring EnERgy EffIcIEncy PROgRam EnSuRES QualIty PagE 2 PagES 4 5 PagE 6 PagE 7

29 two-sided model-home signage PARTNERSHIP WITH LEADING VALLEY BUILDERS. Contrasting color area could contain additional copy.

30 Counter sign 98% OVERALL SATISFACTION RATING

31 Counter sign TESTED AND INSPECTED BY A THIRD PARTY

32 Thermostat SIGN ENERGY-EFFICIENT HEATING AND COOLING EQUIPMENT

33 WINDOW CLING HOME SEALED TO REDUCE ENERGY LOSS

34 Powerwise Homes Seal Standards Font: Trebuchet Color: Blue Pantone 301 C Green Pantone 377 C Black & White: Black 100%, can be reversed to 100% white for placement on dark backgrounds. Sizes: For readability, 11/ 16 inch (diameter) is the minimum size of the logo. The logo can be enlarged to various sizes to adapt to different media placements. For all logos 11/ 16 to 1 inch, use the logo on the far right, with the different TM. Background: Should be a solid color that has a high contrast to the color(s) in the logo. Spacing: There should always be 1/ 4 inch of space around all sides of the logo. Contact: SRP Advertising, (602) / 4 inch 1 inch For all sizes under 1 inch, resize the logo to the right with 11/ 16 inch MINIMUM SIZE Anytime the logo is under 1 inch, use this logo, which has a 1 3/ 4 inch 1 inch For all sizes under 1 inch, resize the logo to the right with 11/ 16 inch MINIMUM SIZE Anytime the logo is under 1 inch, use this logo, which has a

35 Disclosures Financial Disclosure Standard Statement In compliance with the administrative standards created by our accrediting organization, RESNET, we are required to notify homebuilders participating in the SRP PowerWise Homes program of any potential conflicts of interest SRP may have in the testing and rating of a participating subdivision. This includes any instance in which SRP may have features installed that will then be part of a rated house design, when SRP has a financial interest in the sale of the home, or when additional consulting or training services have been provided by SRP. Although RESNET does not prohibit accredited rating providers from offering these activities, it does require that they provide full disclosure to the homebuilder prior to a participating subdivision being certified through RESNET. If you are provided a disclosure, you are required to make this available to any homeowner in that community upon the homeowner s request. As SRP s program is targeted to production homebuilders, each having its own resources for procuring materials and skilled labor to implement any improvement recommended, neither SRP s rater nor its contractor will actively seek an opportunity to bid on energy improvements so recommended. If such an opportunity were to be offered, neither SRP s rater nor its contractor would be permitted to submit such a bid. Complaint Process Homebuilders participating in SRP s PowerWise Homes program can initiate complaints by a call, fax or either to the assigned account representative or to the commercial call center. Information that will need to be provided includes the community or subdivision name, lot number or address, and account number if available. The situation will be investigated by an assigned staff member who will identify the cause and source of the complaint and resolve the situation accordingly. SRP s contractor will be brought in as necessary to assist with analysis or resolution of the problem. If the builder is not satisfied with the offered resolution, the situation can be appealed to SRP s ombudsman for review.

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