13. LETTER DATED MAY 6, 1975, FROM EDWARD F. RAYSINGER, JR., VICE PRESIDENT, C.T.T.C., INC., TO JAMES R. PIPER

Mr. James E. Piper,

Piper Hydro Incorporated

2895 East La Palma,

Anaheim, California 92806

Re: Solar Hydro

May 6, 1975.

Dear Mr. Piper:

This is to advise you that Marco Polo, Ltd., the developers of a proposed 30 story Hotel/Casino project in the Reno, Nevada area will be happy to participate as a part of the solar demonstration project.

We have reviewed your preliminary proposal relating to installation costs and comparative operating expense of your system and other available systems for heating and air-conditioning, and feel that it is superior both in initial costs, operating costs and energy conservation.

Please keep me informed of your progress and I will furnish you with plans as soon as they are complete.

C.T.T.C. Inc.,

c/o Nicholas De Pento (Att.)

1067 Front Street,

San Diego, California 92101.

Respectfully,

Edward F. Raysinge:
Vice President

Jr.

14. LETTER DATED MAY 6, 1975, FROM EDWARD F. RAYSINGER, JR., COMMERCIAL LOAN CONSULTANT, HOLLINGSWORTH & LORD, INC., TO JAMES R. PIPER

I am writing this to advise you that we have had several permanent loan
commitments on your proposed project and regret that the financial
market has been so tight with regard to Interim money.

I am

I am certain that your proposed solar boost hydronic system is one of the
best answers to the energy conservation program and I have made an effort
to recommend it to any developer submitting new projects for loans.
certain we would be under construction on several of these if it were not
for the tight money market.

I personally would be delighted to participate in the conversion of my
personal residence from gas fired forced hot air to a Piper hydronic
system with the solar boost systems, as a part of the solar demonstration
project. As I discussed this with you in December, I believe it would
reduce any gas consumption about 60% and that makes economic sense.

Yours,

EFR:mb

Edward F. Raysinger, Jr.
Commercial Loan Consultant

15. Letter Dated May 5, 1975, From James McKeehan, President, MW Development Corp., to James R. Piper

In answer to your inquiry, I would be very happy to participate in
the solar demonstration program utilizing the Piper Hydro system
in a residential project that I construct.

As you know, I have had extensive experience in construction of several
hundred single family homes and over seven thousand multi-family
units during the past twenty years.

After installing your hydronic system in over 1, 400 of those units, I
am somewhat familiar with its capabilities.

Since the addition of solar energy to this system, it appears to me
that it is the most practical application in conservation that I have

seen.

I am looking forward to hearing from you in the near future.

Sincerely,

Some Michan

James McKeehan
President, M-W

Senator MCINTYRE. There is one question that I would like to have you answer for the record.

Would you explain in detail why you think it is possible to increase so dramatically the number of units to be produced for the same funds as in the national plan? You have gone into that in your statement, but I would like to have it put down in clear black and white for Senator Hathaway and me. There are other questions that we did not read that we really need answers to, so we will submit them to you and give you until June 1 to get your answers in.

And thank you very much for your testimony which was very entertaining, informative, full, and full of your own experiences. And I like the way you put in some of the questions that the people asked you, because that is grist for the mill, too. That is how we find out what is going on, what is bothering you. So this is a helpful statement here and I appreciate your being here very much. Thank you.

Mr. PIPER. And I thank the committee for inviting me. [Testimony resumes at page 131. The exhibits referred to follow:]

16. SENATOR MCINTYRE'S QUESTIONS TO JAMES R. PIPER, WITH MR. PIPER'S ANSWERS INTERSPERSED

Following are the answers to questions posed by the Select Committee on
Small Business:

1.

Describe how front money is used by utilities to push installation of
gas heat/air conditioning in some areas of the country, or electric
heat/air conditioning in others.

Front money has been used mainly to promote electric heating (comfort heating
and service water heating) by electric utilities, or gas air conditioning (comfort
cooling) by gas utilities.

When a builder is about to begin a new project, the utility offers the spiff in
return for a commitment by the builders to use their system. Many times
the money paid is used by the builder to close his "land escrow" which makes
it the most highly leveraged money available.

In the late 1960's, many lenders actually entered this spiff on the cost breakdown as a credit, recognizing it just as they would builder's capital.

2. What regulations would help to stop this type of consumer entrapment?

A federal law prohibiting the payment of cash by any public utility to a builder, developer, or subcontractor would be a good start. This should include advertising "allowances" where they are paid to a builder, and not the medium accepting the advertising.

3.

Tell us about the financing problems that a builder/contractor would have
if he decided to install solar energy in homes.

Because of the adverse publicity surrounding solar systems, much of it promulgated by the government itself, many loan officers are reluctant to believe that proven systems do exist. As a result, the builder is reluctant to propose