Overview
The philosophy behind the Program, while new to market transformation programs, is well established in other industries. The heart of the program is rewarding enrolled dealers for an improvement in the sales of qualified motors within Southern California Edison’s service area when compared to the same month of the prior year. So, just doing what a dealer has always done won’t suffice. They must increase their sales to earn any dealer incentives. We found that typically dealers increased their sales of qualifying motors by converting a motor sale from an EPAct motor to a qualifying NEMA premium® motor. That is exactly the kind of behavior that the program sought to, and succeeded in encouraging.   

Implementation
Upon agreeing to participate, Program staff assisted the motor vendor in gathering specific sales data for the previous year.  The data gathering process included identifying by month all the motors that the motor vendor sold the prior year that would have qualified for the program.  This establishes a baseline for that motor vendor and this baseline acted as a quota going forward during the participation period. Generally the enrolling motor vendors were permitted to self report their baseline information to enter the Program and this sales data was verified by the Program. Quotas for the second year of the program were taken directly from the dealers documented sales for the first year of the program.

Once the baseline and quota had been established, incentives were paid to the motor vendor on all motors sold over that quota.  In addition, the Program provided the motor vendor with an administrative fee for tracking the sales of the motors qualifying for the program.  This administrative fee was paid on the number of motors that the motor vendor contributed to the Program up to their quota level.

Summary of Results
The contract to administer the Program for Southern California Edison was signed by Applied Proactive Technologies, Inc. on February 15, 2000.  Within twenty-four days of that signing, a Program Manager and Program Coordinator were in place. Also a fully functional office was established in Long Beach, California, all required dealer enrollment and agreement forms were designed and produced and three major regulatory milestones were accomplished on time. These milestones included mailing program announcements to 62 EASA (Electrical Apparatus Service Association) members in southern California, mailing press releases announcing the Program to 36 industry publications and enrolling our first motor vendor into the program.

The APT SCE Team developed an initiative that came to be known as the “Fall 2000 End User Outreach Initiative”. The concept targeted the small to mid sized end-user as defined by Southern California Edison. The objective of the initiative was to stimulate a specific segment of the motor market for a short period of time. The Program offered end-users rebates at the same dollar level of our dealer incentives. By the end of Initiative on November 30, 2000 we had authorized over $70,000 in rebates and by the December 15, 2000 submission deadline, end-users had submitted claims for $58,161.

The Program’s major milestone for 2000 was to increase the sale of qualifying three phase motors within Southern California Edison’s (SCE) service area by 10%. By December 31, 2000 we had increased sales within SCE’s service area by 212 percent.