P a g e 1 Frontier Utilities Northeast, LLC 5161 San Felipe Suite 320 Houston, TX 77056 1-877-636-3450 www.frontierutilities.com Customer Service Hours: Monday Friday 7 am 6 pm, Saturday 8 am 2 pm CT Illinois Service Territory Electricity and Natural Gas Terms of Service For Illinois Residents & Businesses with a Small Commercial meter and annual electricity usage less than 15,000 kwh and/or annual natural gas usage less than 5,000 therms Version Date: 4/27/2017 This is an agreement between the Retail Electric Supplier ( RES ) and Alternative Gas Supplier ( AGS ), Frontier Utilities Northeast, LLC ( Frontier, us ), and the customer ( Customer, you ) under which Customer shall initiate electricity service and begin enrollment with Frontier (the Agreement, Contract ). Subject to the terms and conditions of this Agreement, Frontier agrees to sell and deliver, and Customer agrees to purchase and accept the quantity of electricity, as provided by your Electric Utility ( EU ) or Natural Gas Utility ( NGU ), necessary to meet Customer s residential or small commercial requirements based upon consumption data obtained by Frontier and upon the electricity delivery schedule of the NGU and/or EU, and is subject to change. The NGU and/or EU will continue to deliver the commodities supplied by Frontier. This Agreement is only valid for Residential meters and Small Commercial meters with annual electricity usage less than 15,000 kwh and/or annual natural gas usage less than 5,000 therms, or as defined by the Illinois Commerce Commission. The Parties hereby agree as follows: 1. Purpose: The purpose of this Agreement is to authorize Frontier to become Customer s RES and/or AGS and, by signing below, Customer authorizes Frontier to undertake whatever steps are necessary to accomplish Customer s switch. Frontier will begin providing electric or gas service(s) to Customer on the next applicable meter read date after the NGU and/or EU processes Customer s enrollment and Customer s service will continue through the term of this Agreement. Frontier s electric and/or gas service will be delivered to Customer s residence using NGU and/or EU s electricity distribution wires and/or gas distribution pipes. Customer represents and warrants that the electricity and/or gas supply being purchased under this Agreement is to be used solely for residential or small commercial purposes. Frontier s obligations under this Agreement are conditioned on Customer providing complete and accurate information and on Customer remaining an NGU and/or EU distribution customer throughout the Term under the applicable residential or small commercial electric/gas rate class. The supply will be delivered to Customer s meter(s) whereupon Customer shall be deemed to have full possession and control of such supply. 2. Rescission Period: Customer will receive notice from their NGU and/or EU confirming Customer s selection of Frontier as its electric and/or gas supplier. Residential and Small Commercial customers will have ten (10) calendar days after the NGU and/or EU processes the enrollment request in which they may rescind the pending enrollment without any termination fees. Residential customers may contact their NGU and/or EU or Frontier to request a rescission. Small commercial customers must contact Frontier to request a rescission. This Agreement is not binding until the ten (10) day rescission period has expired and Customer has not rescinded the selection of Frontier as its RES/AGS. In addition, if Customer s product has an early termination fee (see Uniform Disclosure Statement ( UDS ) for more information), Customer has the opportunity to contact Frontier to terminate the Contract without any termination fee or penalty within ten (10) business days after the date of the first bill issued to the Customer. This does not relieve Customer of obligations to pay for services rendered under the contract until service is terminated. For NGU and/or EU contact information, please see the end of this document. Please contact Frontier at 1-877- 636-3450 should you have questions regarding the rescission period. 3. Pricing: For all products, your price per kwh/therm will include all applicable components for the state and NGU and/or EU where the service is being provided such as, but not limited to: Generation Charge Ancillary Charges Cost of Capacity Line losses Adder (determined solely at the discretion of Frontier Utilities) Your Price per kwh/therm does not include: Delivery and Distribution Charges as charged by the NGU and/or EU Applicable state or local tax or other NGU and/or EU charges (e.g., out of cycle meter reading fees, meter test fees, disconnection and reconnection fees, etc.) Monthly Electric/Natural Gas Management Fee, the amount of which, if applicable, is specified in the above UDS. You acknowledge that the rate selected during enrollment is subject to our verification of your NGU and/or EU service territory, rate class, and historical usage/demand
P a g e 2 levels. If we find your meter(s) do not match the NGU and/or EU territory, rate class, or usage/demand thresholds as stated during enrollment, we may switch you to an appropriate product for your meter, as determined in our sole discretion, by providing you with fourteen (14) days advance written notice of the change. You will have the right to cancel this Contract without fees or penalties prior to the date of the change in product as stated in your notice. If you do not cancel your Contract with us before the start date, the change in product will become effective as of the date stated in your notice. Please see paragraph below for the type of product as disclosed in your UDS. Fixed: If a Customer enrolls on a fixed product, Customer will pay the fixed price listed for the term of this agreement, as outlined in the UDS. If, due to a change in market conditions, Frontier wishes to lower the price per kwh/therm charged to the Customer under an existing contract, Frontier may do so without consent provided there are no other changes to the terms and conditions in this Contract. Customer will incur additional service and delivery charges for the NGU and/or EU s services. Variable: Customers on a variable plan will pay a variable price per kwh/therm that may vary monthly, without limits, in Frontier Utilities sole discretion. You will receive notice of any price change when the price takes effect (i.e., when you receive your bill with the new price). You may monitor the Price for Variable Rate Plans by visiting www.frontierutilities.com, or by calling Customer Care at 1-877-636-3450. Customer will incur additional charges for the NGU and/or EU s services. Pricing Notice for Commercial Electricity Customers Only: Material Adverse Change: In the event Customer s total power usage under the Agreement for any calendar month during the Term should ever (i) exceed the power quantities for such month (as listed in Exhibit B) by more than 25% (an Excess Usage Event ), or (ii) be less than 75% of the power quantities for such month (an Under Usage Event ) then upon the second such occurrence of either an Excess Usage Event or Under Usage Event, Frontier shall have the right to bill for any future Excess Usage Event or Under Usage Event as follows: Excess Usage Event: If Customer s total consumption of Power for all Premises in a calendar month exceeds 125% of the total amount listed in Exhibit B for such month, then Frontier may charge Customer 105% of the Market Price (as defined below) multiplied by the Excess Quantity. The Excess Quantity shall mean [(the aggregated quantities actually consumed by Buyer during the month) minus (125% of the aggregated monthly contract usage quantities listed on Exhibit B for the applicable month)]. Under Usage Event: Except to the extent caused by a Force Majeure event or Frontier s breach, if Customer s total consumption of Power for all service addresses in a calendar month is less than 75% of the total amount listed in Exhibit B for such month, then, in addition to paying for the Power actually consumed, Customer agrees to pay Seller for the cost of liquidating the Shortfall Quantity. The Shortfall Quantity shall mean [(75% of the aggregated monthly contract usage quantities listed on Exhibit B for the applicable month) minus (the actual aggregated quantities consumed by Customer during the month)]. The cost of liquidating the Shortfall Quantity shall be calculated as follows: [(the Shortfall Quantity) multiplied by (the Contract Price minus 95% of the Market Price)]. Market Price: The Market Price, for purposes of Excess Usage Events and Under Usage Events shall be the Load Weighted Average of the Real Time Settlement Point Price(s) (RTSPP) for the applicable load zone(s) where the Premises are located in the applicable month; plus all charges as reasonably determined by Frontier Utilities associated with Ancillary Services, Renewable Energy Credit Charge, Frontier Margin, Congestion (including but not limited to the Reliability Unit Commitment charges), Line Losses (Transmission and Distribution provider), Market Clearing Price for Capacity, PJM Administration Fee/ISO Fees, and UFE. For any interval in which the RTSPP is less than zero, the value of the RTSPP shall be deemed to be zero. The Load Weighted Average shall be equal to the sum of the total usage of each Premise inside a load zone divided by the sum of total usage for all Premises. 4. Other Pricing Information: For 100% renewable price plans, we purchase and retire Renewable Energy Certificates ("RECs") to offset 100% of your electricity/natural gas usage. 5. Length of Contract and Expiration/Change in Terms: This Agreement shall commence on the first available switch date as set by your NGU and/or EU, and shall continue in effect for the period stated in the UDS, unless sooner terminated as provided in this Agreement. Frontier will notify Customer at least thirty (30) days but not more than sixty (60) days prior to the date upon which the service contract term ends that their contract is expiring. After the initial term and unless terminated by Frontier or the Customer pursuant to Section 7 below, this Agreement will automatically renew on a month-to-month basis at that non-fixed rate. The renewal is automatic and does not require your affirmative consent, although there may be a change to the price or the terms and conditions in this Agreement. 6. Billing and Payment: You will receive a single bill from your NGU and/or EU for the cost of your electric generation (as described above), as well as the NGU and/or EU s Delivery Charges and state and local taxes. Your payment will be due to the NGU and/or EU by the date specified in the bill. If you do not pay your bill in full by the due date, you will be subject to the NGU and/or EU s late payment policies and procedures, including imposition of late fees, interest and other charges as
P a g e 3 described in the NGU and/or EU s filed tariff(s). You agree to accept the measurements as determined by the NGU and/or EU for purposes of determining your electricity usage. If the NGU and/or EU is unable to read your meter, the NGU and/or EU will estimate your usage and your charges will be calculated accordingly and adjusted on a future bill. We reserve the right to include or cause to be included in any subsequent bill, adjustments to the charges for electric/natural gas generation service related to previous billings, previous billing errors, meter read errors, miscalculation of taxes or other errors or omissions, whether such bills are issued by your NGU and/or EU or by us. 7. Cancellation and Cancellation Fee: This contract will automatically terminate if any of the following occurs: 1) the requested service location is not serviced by the NGU and/or EU; 2) the Customer moves outside the NGU and/or EU service area or to an area not served by Frontier; 3) Frontier returns the Customer to the Customer s NGU and/or EU s applicable tariff service, provided that Frontier is permitted to terminate the contract under the terms and conditions of this Contract. Your Termination Rights: If you move outside Frontier s service area or into an area where Frontier charges a different price, this Agreement may be terminated without penalty by giving Frontier forty-eight (48) hours prior notice. You may terminate this Agreement during a month-to-month renewal period upon fourteen (14) days notice effective as of the end of the next applicable meter read date after expiration of the required notice period. Frontier s Termination Rights: Frontier may cancel this Contract if you fail to pay amounts due to us or otherwise fail to perform your obligations under this Contract. We may also cancel this Contract: (i) if your NGU and/or EU is unable to read your meter for three (3) months in a row; (ii) if at any time you request separate bills from your NGU and/or EU and Frontier; (iii) if the NGU and/or EU removes you from their consolidated billing program and requires that Frontier Utilities bill you separately for your electric generation; (iv) if for any reason Frontier Utilities is no longer able to economically continue this Contract; (v) if you have an outstanding payment arrangement with your utility; (vi) due to a change in law or other act beyond Frontier s reasonable control (see Section 14), Frontier is no longer able to serve you; or (vii) if the information provided by you is or becomes untrue. We will notify you in writing at least fourteen (14) days prior to cancellation of this Contract. Early Cancellation Fee Frontier Utilities does not charge an early cancellation fee if you choose to switch or move during your contract. Should you choose to cancel your service with us, regardless of the method or reason for cancellation of the Contract, you are responsible for payment of all outstanding charges incurred through the date on which the cancellation is effected by the NGU and/or EU. 8. Transfers of Service: If Customer moves premises within the same-priced service area, Customer may choose to continue their existing contract or establish a new contract with Frontier at the new premise. Customer shall give Frontier fourteen (14) days notice of intent to continue with Frontier at the new location. Frontier will enroll customer and will become Customer s RES/AGS as of the new premise s next meter read. 9. Notices: All notices and correspondence from us will be delivered to the email address that you have provided to us; if we do not have your email address, all notices and correspondence from us will be mailed to the billing address on the account (or to the service address if there are issues with the billing address). 10. Customer Authorization: You authorize us to obtain consumption, billing, and payment information from the NGU and/or EU, including historical information. This authorization will remain in effect during the Term and any renewal term of this Contract. If you have utilized an agent or broker in connection with the contracting of your electricity purchases from Frontier Utilities, you authorize us to disclose information pertaining to your account to your agent or broker. 11. Discrimination: Frontier Utilities does not deny residential electric/natural gas service or determine eligibility for pricing based on credit history, utility payment data or credit score. Frontier does not deny service based on a customer or applicant's race, creed, color, national origin, ancestry, sex, marital status, lawful source of income, level of income, disability, familial status, location of a customer/applicant in an economically distressed geographic area, or qualification for low income or energy efficiency services. 12. Customer Protections: The services provided by Frontier Utilities are protected by the terms and conditions of this contract and by the Illinois Commerce Commission ( ICC ). The complete text of the Illinois Administrative Rules regarding Public Utilities can be found in Title 83 of the Administrative Code at http://www.ilga.gov/ commission/jcar/admincode/083/083parts.html. 13. Dispute Resolutions: Please contact your NGU and/or EU for billing disputes and Frontier Utilities for terms of service dispute. If the issue is not resolved to your satisfaction after speaking with the NGU and/or EU or Frontier Utilities, an informal complaint may be filed through the Illinois Commerce Commission, Consumer Services Division by mail to: Illinois Commerce Commission, 527 East Capitol Ave, Springfield, IL 62701; toll free at 1-800-524-0795; TTY at 1-800-858-9277; or online at www.icc.illinois.gov. 14. Force Majeure: We will endeavor in a commercially reasonable manner to provide service, but we do not
P a g e 4 guarantee a continuous supply of electricity and/or natural gas. Events that are out of our control ( Force Majeure Events ) may result in interruptions in service. We will not be liable for any such interruptions. We do not generate your electricity and/or natural gas, nor do we transmit or distribute electricity and/or natural gas to you. Therefore, you agree that we are not liable for damages caused by Force Majeure Events, including, but not limited to, acts of God, acts of any governmental authority, including the Illinois Commerce Commission, accidents, strikes, labor trouble, required maintenance work, inability to access the NGU and/or EU system, nonperformance of the NGU and/or EU, delay of deregulation or changes in laws, rules, regulations, practices or procedures of any governmental authority, or any cause beyond our control. If a Force Majeure Event occurs which renders Frontier Utilities unable to perform in whole or in part under this Contract, our performance under this Contract shall be excused for the duration of such event. 15. Regulatory Changes: If at some future date there is a change in any law, rule, regulation, tariff, or regulatory structure ( Regulatory Change ) which impacts any term, condition or provision of this Agreement including, but not limited to price, Frontier shall have the right to modify this Agreement to reflect such Regulatory Change by providing 30 days written notice of such modification to the Customer. 16. Warranties: FRONTIER UTILITIES MAKES NO REPRESENTATIONS OR WARRANTIES, EITHER EXPRESSED OR IMPLIED, WITH REGARD TO THE PROVISION OF ELECTRIC GENERATION SERVICE AND/OR NATURAL GAS SERVICE AND DISCLAIMS ANY AND ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR ARISING OUT OF ANY COURSE OF DEALING OR USAGE OF TRADE. 17. Risk of Loss and Indemnity: Customer will be deemed to be in exclusive control (and responsible for any damages or injury caused thereby) of the electricity and/or natural gas after receipt at the delivery point or points. Customer shall indemnify, defend, and hold harmless Frontier Utilities 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/gas has passed to you. 18. Limitation of Liability: LIABILITIES NOT EXCUSED BY REASON OF FORCE MAJEURE OR OTHERWISE SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY AND SUCH DIRECT ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY AND CUSTOMER HEREBY WAIVES ALL OTHER REMEDIES AT LAW OR IN EQUITY. THERE ARE NO THIRD PARTY BENEFICIARIES TO THIS AGREEMENT. NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES (INCLUDING LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES), WHETHER BY STATUTE, IN CONTRACT OR TORT, EVEN IF THE RESULT OF NEGLIGENCE (WHETHER SOLE, JOINT, CONCURRENT, ACTIVE OR PASSIVE). ALL OTHER LIABILITY WILL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY, AND SUCH DIRECT ACTUAL DAMAGES WILL BE THE SOLE AND EXCLUSIVE REMEDY. CUSTOMER HEREBY WAIVES ALL OTHER REMEDIES AT LAW OR IN EQUITY. THERE ARE NO THIRD PARTY BENEFICIARIES TO THIS AGREEMENT. 19. Assignment: You may not assign the Contract, in whole or in part, or any of your rights or obligations under the Contract without our prior written consent. Frontier Utilities may, without your consent, (i) as part of any financing or other financial arrangements, assign, sell or pledge this Contract or its accounts, revenues, or proceeds, or (ii) assign this Contract to an affiliate of Frontier Utilities or to any other person or entity succeeding to all or a substantial portion of the assets of Frontier Utilities. You will receive 15 days notice in the event of an assignment. 20. Miscellaneous: Should any provision contained herein be held unenforceable by a court of competent jurisdiction such provision shall be reformed to create a valid and enforceable provision to the maximum extent provided by law. However, if such provision cannot be reformed, it shall be deleted without affecting any other provision of this Contract. Any failure by Frontier Utilities to enforce any term or condition of this Contract, or to exercise any right under this Contract, shall not be considered a waiver of Frontier Utilities right thereafter to enforce each and every such term and condition or to exercise any right under this Contract in the future, whether of a like kind or of a different nature. The provisions of this Contract concerning payment, limitation of liability, and waivers will survive the termination or expiration of this Contract. This Contract shall be governed by, interpreted and construed under, and enforced in accordance with the laws of the State of Illinois. 21. Contact Information: For questions concerning your price, service initiation, or service cancellation, please contact Frontier Utilities at the information below: Retail Electric Supplier (RES) or Alternative Gas Supplier (AGS) Frontier Utilities Northeast, LLC Correspondence: 5161 San Felipe, Suite 320 Houston, TX 77056 TOLL FREE: 1-877-636-3450
P a g e 5 TOLL FREE FAX: 1-866-926-8193 www.frontierutilities.com Email: care@frontierutilities.com Hours of Operation: M-F, 7 a.m. to 6 p.m., Saturday, 8 a.m. to 2 p.m. (CT) In the event of a power outage, please contact your NGU and/or EU, available using the contact information below: Electric Utility (EU): Commonwealth Edison Company (ComEd) General: P.O. Box 805379, Chicago, IL 60680 Payment: P.O. BOX 6111, Carol Stream, IL 60197 TOLL FREE: 1-800-334-7661 www.comed.com Natural Gas Utility (NGU): Nicor Gas Correspondence: P.O. Box 4569 Atlanta, GA 30302 Payment: P.O. Box 5407, Carol Stream, IL 60197 Email: customercare@nicorgas.com TOLL FREE 1-888-642-6748 www.nicorgas.com