PRELIMINARY MEASUREMENT AND VERIFICATION (M&V) PLAN

An M&V plan will be developed as a deliverable in the IGA in coordination with SOEP. The ESCO shall complete a "Risk, Responsibility and Performance Matrix" detailing the ESCO's suggested approach and allocation of responsibility for key items related to M&V, including: (1) Financial Matters (Interest rates, Construction costs, Project Savings Verification Methodology, Energy Related Cost Savings;, Delays, Major changes in facility use); (2) Operational Matters (Operating hours, Equipment loads, Weather, User participation); (3) Performance Matters (Equipment performance, Operations, Preventive Maintenance, Equipment Repair and Replacement). The M&V Plan will be further refined as an essential component of the ESPC.