HINO ELECTRIC POWER COMPANY (Certificate # 10060) TERMS OF SERVICE Whole Bunch o Love RESIDENTIAL ELECTRIC SERVICE

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1 HINO ELECTRIC POWER COMPANY (Certificate # 10060) TERMS OF SERVICE Whole Bunch o Love RESIDENTIAL ELECTRIC SERVICE The following Terms of Service (the TOS ) set forth below apply to Customer s purchase of electric services from Hino Electric Power Company ( Hino, also referred to herein as we, our and us ). For purposes of this TOS, the term Customer (also referred to herein as you or your ) shall mean either a Residential Customer or Small Commercial Customer, as applicable. A Residential Customer is the applicant for resitit2ential electric service whose name appears on the LOA forming part of this Agreement, such person s spouse, or an authorized agent thereof (as applicable). A Small Commercial Customer is the applicant for non-residential electric service whose name appears on the LOA forming part of this Agreement or an authorized agent thereof (as applicable), provided (a) the non-residential Customer has a peak demand of less than 50 kilowatts during any twelve (12) month period; and (b) the non-residential Customer s load is not part of an aggregation program with peak demand in excess of 50 kilowatts during any twelve (12) month period. This TOS, together with your Letter of Authorization ( LOA ), your relevant Electricity Facts Label ( EFL ) and the Your Rights as a Customer disclosure document form the entire agreement between you and us (the Agreement ). By accepting electric service from us, you agree to be bound by the terms of this Agreement. For specific information concerning your electric Product (as hereinafter defined), you should refer to the relevant EFL applicable to your Product. All references herein to the Public Utility Commission of Texas ( PUCT ) Substantive Rules Applicable to Electric Service Providers, as amended (the PUCT Rules ) may be accessed by you online at 1. How Do I Contact Hino? Hino Electric Power Company, Certificate No , is a licensed retail electric provider. Any questions regarding this TOS or your service under the Agreement may be directed to us as follows: a. By Phone: Contact one of our customer service representatives by phone at (956) or (956) or Toll Free at HINOPWR (or ). Representatives are available Monday through Friday from 8:00 a.m. 5:00 p.m. Central Standard Time and are glad to answer any questions. b. By You may direct any questions to us by sending an to info@hinoelectric.com. c. By Fax: You may contact us by fax at (956) or (956) d. By Mail: You may send correspondence to us by mail at Hino Electric Power Company, P.O. Box 2307, Harlingen, Texas e. Website: You can visit our website for general provider and Product information at Your contact information is stated in the LOA. It is your responsibility to contact us (as provided above) if any of your contact information changes in order to ensure that you continue to receive invoices and other notices from us that will be provided under the Agreement. 2. How Do I Report an Outage or Other Emergency? To report electric service interruptions, outages or emergencies, please call the applicable phone number for your Transmission and Distribution Service Provider ( TDSP ) specified below. You also may call us 24 hours a day, 7 days a week at Your TDSP maintains responsibility for the reliability of electricity supply, as set forth in the TDSP tariffs approved by the PUCT. The TDSP also is responsible for distribution lines, meters and meter data, and the quality of power entering your Service Address. AEP Texas Central Company ( AEP Central ): AEP Texas North Company ( AEP North ):

2 CenterPoint Energy ( CenterPoint ): (713) or Oncor Electric Delivery Company ( Oncor ): Texas New Mexico Power ( TNMP ): Sharyland Utilities, LP ( Sharyland ): (956) What if I Have a Dispute or Complaint With Hino? If you have any disputes or complaints regarding us or this Agreement, you may contact us by using any of the methods provided above. If you are not satisfied with our response, you may contact the Public Utility Commission of Texas as follows: Public Utility Commission of Texas Customer Protection Division P.O. Box Austin, Texas Phone: (512) Toll-free: Fax: (512) address: customer@puc.state.tx.us Internet website address: TTY: What if I Need a Copy of My Agreement in Spanish? ( Qué hago si necesito una copia de mi Contrato en Español?) You may obtain the documents forming your Agreement with us in Spanish without charge by contacting Hino at Usted puede obtener los documentos de su Contrato en español comunicándose con nosotros al Can I Cancel My Agreement Without Penalty? IF YOU ARE SWITCHING TO HINO FROM ANOTHER RETAIL ELECTRIC PROVIDER, THEN YOU HAVE THE RIGHT TO CANCEL THIS AGREEMENT WITHOUT PENALTY WITHIN THREE (3) FEDERAL BUSINESS DAYS AFTER RECEIVING THESE TERMS OF SERVICE. TO CANCEL, YOU MAY CONTACT US AS FOLLOWS: (1) BY PHONE, MONDAY THROUGH FRIDAY BETWEEN 8:00 A.M. AND 5:00 P.M., AT (956) or (956) OR TOLL FREE AT HINOPWR (OR ); (2) BY FAX AT (956) OR (956) ; OR (3) BY AT info@hinoelectric.com. ANY CANCELLATION REQUEST PROVIDED BY FAX OR MUST INCLUDE THE FOLLOWING INFORMATION: (1) YOUR NAME, ADDRESS AND PHONE NUMBER; (2) YOUR ACCOUNT NUMBER OR ESI ID NUMBER; AND (3) A STATEMENT THAT YOU WISH TO CANCEL THE AGREEMENT. 6. What is the Term of My Agreement? You agree to purchase electric services from us for the ESI ID(s) at the Service Address(es) stated in your LOA during the Term (as hereinafter defined), and we agree to provide such electric services to you. The type of electric service provided to you under this Agreement (either the Variable Price Product or Fixed Rate Product ) (in each case, the Product ) and the applicable term of service (the Term ) each shall be as elected by you in the LOA. The Term of this Agreement shall begin on (i) the date on which your switch to Hino occurs (for a standard switch or self-selected switch, as elected by you in the LOA); or (ii) the date on which your meter is activated (for a new service/move-in, as elected by you in the LOA) (the Effective Date ). 2

3 7. How Can I Renew My Service? If your Agreement is for a Term greater than thirty-one (31) days, at least fourteen (14) days prior to the end of your initial Term we will provide you written notice that your Agreement will expire at the end of the Term. At any time prior to the expiration of the Term, you may contact us to renew the Agreement and negotiate a new Term based on then-current Variable Price Products or Fixed Rate Products offered by us. Upon the expiration of the Term, if you have not renewed the Agreement, then you will continue to receive electric service from us under our default renewal product (our then-available Variable Price Product) on a month-to-month basis until either you or we terminate service (as permitted herein). 8. How is My Price Calculated? a. What Charges Are Included In My Service Charge? The EFL for your relevant Product gives examples of the average total monthly price per Kilowatt Hour ( kwh ) of electricity based on different monthly usage levels. The total monthly price per kwh is the Service Charge. The Service Charge includes (i) our energy charge to supply the Product to you; (ii) all recurring TDSP charges for the delivery of electricity (including any demand charges for Small Commercial Customers, as hereinafter described); (iii) all recurring Electric Reliability Council of Texas ( ERCOT ) or Texas Regional Entity ( TRE ) administrative fees charged to us; and (iv) any other recurring third-party fees. If you are a Small Commercial Customer, your Service Charge includes any recurring demand charges assessed by your TDSP. The TDSP calculates your demand charges each month by tracking the flow of electricity to your ESI ID meter over a period of time, usually 15-minute intervals. During the month, the 15-minute interval with the highest electricity demand is recorded and used to calculate a demand charge that is specific to your ESI ID. Your TDSP bills us each month for your demand charges, and in turn, we include these demand charges as part of your Service Charge. b. What Charges Are Not Included in My Service Charge? The Service Charge does not include the following charges, all of which are passed through to you and separately stated on your invoice (as applicable): (i) any state and local sales taxes or assessments (whether charged by municipalities, the PUCT or otherwise); (ii) reimbursement for the state miscellaneous gross receipts tax; (iii) non-recurring charges assessed by the TDSP (e.g., special meter read/test fees, installation and connection fees, disconnection and reconnection fees); and (iv) any non-recurring charges assessed by us. A description of certain non-recurring charges assessed by the TDSP relating to a switch, move-in, disconnection or reconnection that may be passed through to you are set forth in Appendix A. In addition to any non-recurring charges assessed by the TDSP, you may be responsible for the following non-recurring charges assessed by us (as provided under this Agreement): (i) (ii) Insufficient Funds Fee: a $45.00 fee for each returned check and/or electronic payment that was not processed due to insufficient funds (see Section 10(c) herein); Document Processing Fee: a $10.00 fee for (a) each additional copy of any invoice or statement previously sent to you, and (b) each credit reference letter or disconnection notice sent to you; (iii) Early Termination Fee: for Fixed Rate Products, an early termination fee if you cancel this Agreement before the end of the Term (see Section 14 herein); (iv) (v) (vi) Disconnection Fee: a $50.00 fee if your service is suspended or disconnected (see Section 15 herein); Reconnection Fee: a $75.00 fee for reconnection of service at your Service Address(es) following disconnection (see Section 15 herein); Premium Contact Fee: a $10.00 fee to make payments to Hino by telephone with the help of our customer service representatives; (vii) Security Fee: a one time non-refundable fee of $ if you choose not to allow Hino to conduct a credit check and do not meet the requirements pursuant to Sections 12 and 13 herein; 3

4 (viii) (ix) (x) Convenience Fee: a $5.00 fee for each payment made to Hino by credit card or debit card online ( when Customer is not using Hino s Auto-Pay Program; Agent Assistance Fee: a $5.00 fee for all calls to our customer service number where the Customer is connected to a customer service representative, unless (i) you are calling to rescind your service with us pursuant to Section 5 herein, or (ii) you are calling to make a payment by telephone with the help of a customer service representative, in which case the Premium Contact Fee will apply); or Minimum Usage Charge: a $14.95 fee for any service period where usage is less than 1,000 kwh. 9. Can My Price Change during the Agreement? a. Variable Price Product: For a Variable Price Product, your Service Charge may fluctuate on a month-tomonth basis and is subject to change in our sole discretion based on the fluctuation of wholesale market prices of electricity. If you are enrolled in Hino s Variable Price Product plan, you may monitor the rates for the Variable Price Product and view the historical prices of such Product by visiting or calling us at (956) or Toll Free at (or ). b. Fixed Rate Product: For a Fixed Rate Product, your Service Charge shall remain fixed throughout the Term of your Agreement and can only be changed in order to reflect (i) changes to TDSP charges (including demand charges for Small Commercial Customers, as applicable); (ii) changes to ERCOT or TRE administrative fees charged to loads; or (iii) changes resulting from federal, state or local laws that impose new or modified fees or costs on us that are beyond our control. 10. What Do I Need to Know About My Bills and Payments? a. Monthly Invoices: Each month during the Term of your Agreement we will provide you with an invoice detailing the following fees, costs and/or charges that have accrued during your most recent service period of approximately thirty (30) days: i. All charges that are included in your Service Charge, as described in Section 8(a) herein; and ii. All applicable charges that are not included in your Service Charge, as described in Section 8(b) herein (e.g., taxes, reimbursements for the state miscellaneous gross receipts tax, and other nonrecurring charges assessed by the TDSP and/or us). You agree to pay all such amounts stated on your bill. Payment of the invoiced amount is due upon your receipt of the invoice and will be considered past due if not received by us within sixteen (16) days following the date the invoice was issued (unless such date is not a business day, in which case payment shall be due on the next business day) (the Payment Date ). The amount of your monthly invoice will be based on your actual electricity usage, as determined by the TDSP meter read cycle for the ESI ID at your Service Address. However, you acknowledge that our ability to bill you based on actual usage is dependent on the TDSP furnishing us with your actual usage information for the relevant service period. In the absence of such information from the TDSP, we will bill you based on estimated usage and your invoice shall state that our calculations are based on estimates. Once we receive actual meter readings from the TDSP, we will adjust your account accordingly and state such adjustments in a subsequent invoice. b. Auto-Pay Program: By entering into this Agreement, you agree to pay all invoiced amounts owed to Hino on or before the Payment Date by participating in Hino s automatic payment plan using a bank draft, a credit card or a debit card, you agree to receive all bills by electronic mail at the address you provided in your application and have chosen to not receive paper bills (the Auto-Pay Program ). By participating in Hino s Auto-Pay Program, you authorize Hino to make debits, credits, withdrawals, and/or other financial transactions (each a Transaction ) on or against the form of payment ( Payment Account ) indicated at the time of your enrollment for electric service or Auto-Pay Program enrollment. Hino will make Transactions as it deems necessary and consistent with the financial requirements of your electricity account(s) with Hino. 4

5 You will continue to receive a paper and/or electronic copy of your monthly invoice, but your enrollment in Hino s Auto-Pay Program preauthorizes Hino to schedule or initiate the payment of your invoice in connection with your electricity account(s). Auto-Pay Program payments will be scheduled, initiated, and/or processed against your Payment Account on the business day prior to the Payment Date (the Processing Date ). Even if you participate in the Auto-Pay Program, you may choose to pay invoiced amounts earlier than the Processing Date by using one of the alternative methods listed in Section 10(c), but such payment may be subject to Hino s Premium Contact Fee, Convenience Fee and/or other fees described in Section 8(b) depending on your method of payment. You may cancel your participation in the Auto-Pay Program at any time without penalty, but making payments by other methods may subject you to fees and/or penalties as provided elsewhere herein. Hino may cancel this Auto-Pay Program at any time that Hino, in its sole, exclusive, and unfettered discretion, deems necessary. c. Other Payment Methods, Late Payments and Other Penalties: If you choose to pay your invoice by any method other than through the Auto-Pay Program or to receive paper bills instead of electronic bills, you agree to pay all invoiced amounts to us on or before the Payment Date by (i) cash, (ii) check, (iii) money order, or (iv) by credit/debit/atm card. Payments may be made in person at Hino s office, or you may use your credit/debit/atm card to pay online at 24 hours a day, 7 days a week. If you pay online, you may be subject to a Convenience Fee (see Section 8(b)(viii) herein). You can choose to make a payment by credit/debit/atm card over the phone by calling one of our customer service representatives at (956) or Toll Free at available Monday through Friday from 8:00 a.m. 5:00 p.m. CST. If you pay by phone, you may be subject to a Premium Contact Fee (see Section 8(b)(vi) herein). You also may pay by credit/debit/atm card, cash, cashier s check or money order at an authorized payment center listed at Hours and fees will vary by location. Payments at unauthorized payment centers will not be accepted by Hino. You will be charged a $45.00 penalty for each returned check and/or electronic payment that was not processed due to insufficient funds (see Section 8(b)(i) herein). If we do not receive your payment by the Payment Date, a late fee of five percent (5%) will be charged on such past due amount unless you otherwise qualify to receive a low-income discount as described in Section 11(d) herein and Section of the PUCT Rules (the Rate Reduction Program ) (see Section at In addition to any such late fee, your failure to pay may result in a disconnection of service as provided in Section 15 herein. You acknowledge and agree that we (or anyone acting on our behalf) reserve the right to assess and collect from you (whether you are a current or former Hino Customer) any and all costs, fees or charges relating to the collection of delinquent balances, including but not limited to commissions, costs, fees and attorneys fees incurred when recovering outstanding balances through our use of a collection agency or attorney. 11. Are Alternative Payment Options Available if I Cannot Pay? If you contact us and indicate your inability to pay or ask for assistance regarding bill payment, we will inform you of all applicable payment options and billing assistance programs offered by us and the relevant eligibility requirements and procedures to apply for each program. We currently offer the following alternative payment options: a. Balanced Billing Program: Our Balanced Billing Program (the Program ) allows you to pay approximately the same electric bill each month for a twelve (12) month period (the Program Period ). If you enroll in the program, we will review your usage history for each month of the previous year and apply your current Service Charge to the usage in each such month. After calculating your expected bills for the Program Period (based on the previous year s usage and current Service Charge), we will average all such monthly bills together in order to reach a balanced bill that you will pay during the Program Period. Your monthly invoices during the Program Period will show both the actual usage in such month and actual bill amount, but you only will be required to pay the balanced bill amount. Any difference between your actual bill amount and balanced bill amount will also be shown on your invoice each month. At the end of six (6) months in the Program Period, we will review your account to determine if the originally-calculated balanced bill amount is still accurate. If our review shows that your actual bill amounts 5

6 were more than ten percent (10%) over or under your original balanced bill amount, then we will adjust your balanced bill amount for the remainder of the Program Period to better reflect your actual usage. At the end of the Program Period, we will calculate the difference between your actual bill amounts and balanced bill amounts to determine if an over billing or under billing has occurred during the relevant Program Period. We will (i) credit your account with respect to any over billing during the Program Period; (ii) charge your account for any amount that was under billed during the Program Period; and (iii) recalculate your balanced bill amount for the upcoming Program Period based on such adjusted Service Charges. The Program does not affect your obligation to pay us all actual bill amounts for the Program Period. To be eligible for our Balanced Billing Program, you (i) must not be delinquent in any outstanding payments owed to us; and (ii) must have at least twelve (12) months remaining in the Term of your Agreement. You will be ineligible to continue participation in the Balanced Billing Program if you are delinquent in making payments to us during the Program Period. All payments made under the Balanced Billing Program are subject to the terms and procedures of Section 10 herein, including our right to assess any late fees and take collection actions with respect to any late payments. b. Payment Assistance Program: Our Payment Assistance Program may be available to you if you are a Residential Customer and meet certain eligibility requirements, such as severe financial hardship and temporary inability to pay amounts due and owing to us. We offer all of our Customers the opportunity to voluntarily contribute to the Payment Assistance Program on their invoice in order to assist qualifying Residential Customers. Distributions of funds through the Payment Assistance Program shall not be made in a discriminatory manner based on a Customer s race, creed, color, national origin, ancestry, sex, marital status, lawful source of income, disability, familial status, location of Customer in an economically distressed geographic area, or qualification for the Rate Reduction Program. Additionally, if you are a Residential Customer and receive food stamps, Medicaid, Temporary Assistance for Needy Families ( TANF ) or Supplemental Security Income ( SSI ) from the Texas Health and Human Services Commission ( THHSC ), or if your combined household income does not exceed one hundred twenty-five percent (125%) of federal poverty guidelines, you may qualify for energy assistance from the Texas Department of Housing and Community Affairs ( TDHCA ). For more information, you may contact TDHCA by at info@tdhca.state.tx.us, by phone at , by fax at , or by mail at TDHCA, P.O. Box 13941, Austin, Texas, c. Deferred Payment Plan: If you are unable to pay an invoice when due, you should contact us to determine whether you qualify for Hino s Deferred Payment Plan. The Deferred Payment Plan allows you to pay an outstanding bill in installments that extend beyond the Payment Date of your current invoice. Even if you are unable to pay your invoice, you are not eligible for our Deferred Payment Plan if you (i) have been issued more than two (2) disconnection notices during the preceding twelve (12) months; or (ii) have received service from us for less than three (3) months, and you lack (a) sufficient credit; or (b) a satisfactory payment history of payment for electric service from a previous REP (or a predecessor electric utility). You will be eligible for our Deferred Payment Plan, upon your request, if (i) the Payment Date for your invoice occurs during an extreme weather emergency; or (ii) you have been under-billed in the amount of $50.00 or more (unless due to theft of service). All Deferred Payment Plans shall be confirmed in writing between us and you, and a copy shall be provided to you for your records. If you do not abide by the terms of your Deferred Payment Plan, then we may have the right to disconnect your service as discussed in Section 15 herein. d. Rate Reduction Program (LITE-UP Program): If you are a Residential Customer and receive food stamps or medical assistance (such as Medicaid) from the THHSC, or if your combined household income does not exceed 125% of federal poverty guidelines, you may qualify for the Low-Income Telephone & Electric Utilities Texas Program (the LITE-UP Program ). If you qualify under the LITE-UP Program, we will provide you with a special low-income discount rate, subject to funding approved by the Texas Legislature. More information regarding the LITE-UP Program, including enrollment guidelines, may be found in Section of the PUCT Rules (see Section at You may also contact us directly for more information regarding these discounts and eligibility requirements. 6

7 12. Do I Have to Meet Any Credit Requirements to Receive Service? We may require you to demonstrate and maintain satisfactory credit as a condition of providing service to you under this Agreement in accordance with our internal credit policies ( Credit Requirements ), and you authorize us to access and use information about you in order for us to review your credit history. If you are a Residential Customer, you will be deemed to have satisfactory credit and meet our Credit Requirements if you (i) are 65 year of age or older and are not currently delinquent in payment of any amounts owed to us; or (ii) provide a certification letter developed by the Texas Council on Family Violence evidencing that you are determine to be a victim of family violence. 13. Do I Owe Hino a Deposit? If you are a new Customer, you may be required to pay Hino an initial deposit prior to initiation of service on the Effective Date if you do not meet our Credit Requirements. If you are an existing Customer receiving a new Product from us, you also may be required to pay us a deposit prior to initiation of service if, during the last twelve (12) months of service, you (i) were late paying a bill more than once; or (ii) had service terminated or disconnected for nonpayment. Moreover, during the Term of our Agreement, you may be required to pay us an additional deposit to continue to receive electric service if (i) the average of your actual billings for the last twelve (12) months is at least twice the amount of the original average of your estimated annual billings when you initiated service with us; and (ii) a termination or disconnection notice has been issued to you or your account has been disconnected within the previous twelve (12) months. If you are a Residential Customer, the total amount of all deposits required from you (whether an initial deposit or additional deposit) shall be no greater than (i) one-fifth (1/5) of your estimated annual billing; or (ii) the sum of your estimated billings for the next two (2) months. If you are a Small Commercial Customer, the total amount of all deposits required from you shall be no greater than (i) one-fourth (1/4) of your estimated annual billing; or (ii) the sum of your estimated billings for the next three (3) months. Cash deposits shall accrue interest at the rate specified by the PUCT if such deposit is held for more than thirty (30) days. In accordance with Section (e)(3) of the PUCT Rules (see Section (e)(3) at if you are a Residential Customer and qualify for the LITE-UP Program, a deposit exceeding fifty dollars ($50) may be made to us in two (2) equal payments. Your deposit will be refunded (i) when you have not had any late payments for (a) twelve (12) consecutive billings (if you are a Residential Customer); or (b) twenty-four (24) consecutive billings (if you are a Small Commercial Customer); or (ii) following the closing of your account(s) and the payment of any outstanding invoices, in each case pursuant to Section of the PUCT Rules (see Section at What Happens if I Terminate My Agreement Early? The Term of this Agreement is elected by you in the LOA and stated in your EFL. If you cancel or terminate this Agreement before the end of the Term by providing notice to us pursuant to Section 1 herein (including a switch to a new retail electric provider), then we may charge you the early termination fee stated in your EFL (if any) and pursue any other remedies available to us relating to this Agreement at law or in equity. However, if you (i) cancel or terminate this Agreement as the result of a move to another location; and (ii) provide us with evidence of your move, such as a forwarding address or any other reasonable evidence that you no longer occupy your Service Address, then you will not be obligated to pay us any early termination fee. You will remain obligated to pay us any outstanding amounts then due and owing under the Agreement. 15. When Can My Service Be Disconnected? We may request disconnection of your electric service if you (i) do not pay us any amount owed pursuant to Sections 10 and/or 11 (or do not make a deferred payment arrangement with us pursuant to Section 11); or (ii) do not pay us any required deposit pursuant to Section 13, in each case by the disconnection date stated on the disconnection notice that we send to you. However, we will not order the TDSP to disconnect your electric service for non-payment of any legitimately disputed amount(s). At least ten (10) days prior to disconnecting your service, we will provide you proper notification and an opportunity to avoid disconnection by paying outstanding invoices or delivering any outstanding deposit. If payment of the invoiced amounts or required deposit is not received by us on or before the disconnection date stated in the disconnection notice, then you will be charged a fifty dollar ($50) disconnection fee by us (regardless of whether service is actually disconnected by the TDSP). In addition, you will be charged a seventy-five dollar ($75) reconnection fee in the event that we process a reconnection transaction to the ESI ID at your Service Address. Such disconnection and reconnection fees charged by us are in addition to 7

8 any disconnection and reconnection fees that may be billed by your TDSP. If you do not pay any past-due balance within ten (10) days of your service being disconnected, your account with us may be deactivated, and in addition to being responsible for any outstanding fees and charges, you may be required to reapply for service with us and pay a new deposit. Pursuant to Section (d) of the PUCT Rules, we may immediately disconnect your electric service without giving you prior notice under certain circumstances, such as the existence of a known dangerous condition on the premises or theft of service (see Section (d) at Can Hino Refuse to Provide Service to Me? We may refuse to provide electric service to you for one or more of the reasons specified in Section ( Refusal of Electric Service ) of the PUCT Rules (see Section at If we deny you service, you will be notified of the reason(s). However, we will not deny service or require a prepayment or deposit for service based on your race, creed, color, national origin, ancestry, sex, marital status, lawful source of income, level of income, disability, familial status, your location in a distressed geographical area, or qualification for low-income or energy-efficiency programs and services. If you are a Residential Customer, we will not use a credit score, a credit history, or utility payment data as the basis for determining the price for electric service for a Product with a Term of twelve (12) months or less. 17. What if I Am Ill or Disabled? If you are a Residential Customer and an interruption or suspension of your electric service will create a dangerous or lifethreatening condition, you may qualify as a Critical Care Residential Customer. Upon your request, we will provide to you a standardized Critical Care Eligibility Determination Form, which you must complete and return to us. The critical care request is evaluated and approved by your TDSP; provided, you may appeal such determination to the TDSP. If you are not satisfied with the results of such appeal, you may file a complaint with the PUCT. If approved, the designation is valid for one (1) year, and we will send you a renewal application prior to the expiration of your designation. Qualification as a Critical Care Residential Customer does not relieve you of the obligation to pay us for electric services provided. However, a Critical Care Residential Customer that needs payment assistance should contact us immediately regarding possible deferred payment options and other assistance that may be offered. 18. Is Hino Always Obligated to Supply Electricity to Me? We will make commercially reasonable efforts to supply electricity to you, but we do not guarantee a continuous supply of electricity. You acknowledge that certain events outside of our control ( Force Majeure Events ) may result in service interruption. You agree that we will not be held liable for a failure to deliver you electricity during a Force Majeure Event including, but not limited to, acts of God, acts of any court or government authority (including the PUCT or ERCOT), accidents, strikes, labor disputes, required maintenance work, inability to access the TDSP or ERCOT systems, nonperformance by the TDSP or ERCOT, or any other cause beyond our control. If a Force Majeure Event occurs which renders us unable to perform in whole or in part under this Agreement, then we will be excused from performance for the duration of such event. 19. Other General Provisions a. Regulatory Changes The price and terms of this Agreement are based on the laws, rules, tariffs and protocols in place at the time of execution. If, during the term of this Agreement, the PUCT, ERCOT, the Texas Comptroller s Office or any other government body or agency with jurisdiction over the Texas electricity market or retail electric providers operating in Texas approves changes which impact the cost to provide electricity service to you (including, but not limited to, the implementation by ERCOT of a nodal market in Texas), we reserve the right to adjust the prices, terms, rates, riders, fees, tariffs or any other charges under this Agreement accordingly pursuant to Section (d) of the PUCT Rules (see Section at b. Limitation of Liability YOU AGREE THAT EVENTS OF FORCE MAJEURE MAY RESULT IN INTERRUPTION IN YOUR SERVICE AND THAT WE WILL NOT BE LIABLE TO YOU FOR THOSE INTERRUPTIONS. YOU ALSO AGREE THAT (1) WE ARE NOT RESPONSIBLE FOR GENERATING YOUR ELECTRICITY OR FOR TRANSMITTING OR 8

9 DISTRIBUTING ELECTRICITY TO YOUR SERVICE ADDRESS; AND (2) WE ARE NOT RESPONSIBLE WITH RESPECT TO ANY THIRD-PARTY SERVICES. TO THE EXTENT THAT EITHER PARTY IS RESPONSIBLE FOR DAMAGES TO THE OTHER PARTY HEREUNDER, THEN, EXCEPT AS EXPRESSLY PROVIDED HEREIN, ANY SUCH DAMAGES WILL BE LIMITED TO DIRECT ACTUAL DAMAGES AS THE PARTY S SOLE AND EXCLUSIVE REMEDY, AND EACH PARTY WAIVES ALL OTHER REMEDIES AT LAW OR IN EQUITY. NEITHER PARTY WILL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, INCLUDING LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES, WHETHER IN TORT, CONTRACT OR OTHERWISE. THESE LIMITATIONS WILL BE WITHOUT REGARD TO CAUSE, INCLUDING THE NEGLIGENCE OF EITHER PARTY. c. Representations and Warranties We represent that the electricity sold under this Agreement will meet the quality standards of your applicable local TDSP and will be supplied from a variety of sources. WE MAKE NO REPRESENTATIONS OR WARRANTIES OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT, AND EXPRESSLY DISCLAIM ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. You represent that it you are entering into this Agreement as principal and not as agent for any other party and that the person signing this Agreement on behalf of you (if applicable) has the authority to bind you to this Agreement. Hino and Customer acknowledge and agree that this Agreement is a forward contract and that Hino is a forward contract merchant, each as defined in the U.S. Bankruptcy Code. d. Title, Risk of Loss and Indemnity You shall be deemed to be in exclusive control (and responsible for any damages or injury caused thereby) of the electricity after it reaches your electric meter. Title to and risk of loss related to the electricity shall transfer from us to you at the point where the TDSP facilities interconnect with your meter. You shall indemnify, defend and hold us harmless from any and all claims for any loss, damage, or injury to persons or property, including without limitation, all consequential, exemplary, or punitive damages arising from or related to any act or incident occurring after title to the electricity has passed to you. e. Assignment This Agreement shall inure to the benefit of Hino and Customer and their permitted successors and assigns. You may not assign this Agreement without our prior written consent, which consent shall not be unreasonably withheld. You hereby acknowledge and consent to our pledge and contingent assignment or subrogation of all rights and obligations hereunder. Upon any such assignment by us, you agree that we shall have no further obligations hereunder. You acknowledge that we have entered into electricity supply arrangements with Energy America, LLC ( Supplier ), and you agree that we may assign our rights and obligations under this Agreement to Supplier or any affiliate of Supplier that is licensed as a retail electric provider in the State of Texas without your prior written consent. In the event any other provision of this Agreement shall be deemed to prohibit or otherwise restrict our ability to assign, subrogate or pledge any of our rights hereunder, this provision shall control. f. Amendments We may make changes to the terms of this Agreement only as permitted in Section (d) of the PUCT Rules (see Section at For changes to the TOS, we will provide you at least fourteen (14) days prior written notice before the date that the change takes effect (unless our change is beneficial to you). g. Choice of Law and Jurisdiction This Agreement shall be governed by Texas law and exclusive jurisdiction and venue for any controversy arising from or relating to this Agreement will be located in the state courts of Cameron County, Texas or the federal courts in the Southern District of Texas having jurisdiction over such action (and each party waives any right to object to venue in this regard). h. Entire Agreement This Agreement contains all terms, conditions and agreements in any way related to, or arising out of, the sale and purchase of electricity between us and you. This Agreement supersedes all prior agreements between us and you, whether written or oral. 9

10 APPENDIX A TO TERMS OF SERVICE TDSP NON-RECURRING FEE SCHEDULE (as of March 1, 2013) 1 The table below sets forth examples of standard non-recurring fees charged by your TDSP as of March 1, The TDSP fees stated below are for informational purposes only and are subject to change by your TDSP. All non-recurring TDSP charges are passed through to you and will be included in your invoice with no additional mark up by us. You will pay the same TDSP fees no matter which REP you choose to provide your electric service. The following abbreviations and definitions used in the fee schedule have the meanings set forth below: MVI: Install: PMVI: Self-Selected Switch DNP: RNP: PRNP: W/E RNP: Move In New Meter Installation Priority Move In (less than hours of notice) Switch occurring on the date requested by you in the LOA if such date is an available switch date, or if such date is not an available switch date, the first available switch date thereafter Disconnection Payment Reconnection Payment Priority Reconnection Payment Weekend Reconnection Payment (in addition to standard RNP, if reconnection is needed on a weekend) TDSP AEP CENTRAL SHARYLAND Self-Contained Central Transformer Self-Contained Central Transformer MVI Install PMVI Self-Selected Switch DNP RNP PRNP W/E RNP Note to Draft: Hino to confirm whether this fee schedule needs to be updated. 10

11 TDSP AEP NORTH CENTERPOINT Self-Contained Central Transformer Self-Contained Central Transformer MVI Install PMVI Self-Selected Switch DNP RNP PRNP W/E RNP TDSP ONCOR TNMP Self-Contained Central Transformer Self-Contained Central Transformer MVI Install As Calculated PMVI Self-Selected Switch DNP RNP PRNP W/E RNP For a complete and current list of TDSP charges that may be passed through to you on your invoice, please visit your TDSP s website at the address stated below: TDSP Website Link for TDSP Charges TDSP Website Link for TDSP Charges AEP Central Sharyland AEP North CenterPoint Oncor TNMP 11