William L. Richter - Page 2

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                                  FINDINGS OF FACT                                    
               The parties have stipulated some of the facts.  The                    
          stipulation of facts is incorporated by this reference.                     
          Petitioner resided in Kaneohe, Hawaii, at the time the petition             
          was filed.                                                                  
          Solar Water Heating System                                                  
               In or about 1994, petitioner investigated new water heating            
          systems in conjunction with remodeling his home.  As part of his            
          investigation, petitioner authorized Joseph Miskowiec, a salesman           
          for Mercury Solar, an organization engaged in the sale of solar             
          energy heating systems, to conduct an energy audit of                       
          petitioner’s home.  The purpose of the energy audit was to                  
          ascertain the amount of energy used in petitioner’s home, thereby           
          enabling Mr. Miskowiec to analyze whether petitioner should                 
          install a solar water heating system in his home.  Mr. Miskowiec            
          determined that petitioner’s hot water needs could be served by a           
          solar water heating system that would reduce petitioner’s total             
          monthly utility costs.  Mr. Miskowiec ultimately recommended that           
          petitioner install a solar water heating system consisting of a             
          50-gallon storage tank, a 4- by 10-foot solar collector, a                  
          heater, a pump, plumbing, controls, and sensors (collectively,              
          the heating system).                                                        
               As part of his presentation to petitioner, Mr. Miskowiec               
          offered petitioner two options-–the option to purchase the                  

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