Energy Services. Amb t Energy. Power your future.

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1 Energy Services Amb t Energy SM Power your future.

2 Ambit Energy is guided by a set of core principles that emphasize integrity, honesty, a long-term business outlook, and a fundamental commitment to our customers, Consultants, employees and the communities in which we operate. We will not compromise these principles for any reason. Jere Thompson, Jr. Chief Executive Officer and Co-Founder, Ambit Energy

3 Contents 2 Welcome To Ambit Energy Getting Connected Service Coverage Area Customer Credit Checks Quality Assurance Process Customer Enrollment Status 4 Ambit Energy In Texas Protections for Ambit Energy Customers Texas Documents Your Rights As A Customer Electricity Facts Terms of Service Texas Coverage Map Ambit Energy Billing Statement Customer Enrollment Rules 17 Ambit Energy In New York Protections for Ambit Energy Customers Document: New York Residential Sales Agreement & Terms of Service New York Coverage Map Understanding Your Electricity Bill Customer Enrollment Rules Amb t Energy SM Power your future. 1

4 Welco Welcome To Ambit Energy! Ambit Energy is a service organization with a vision to be the finest and most respected energy provider in the United States. Our Independent Consultants and employees always come first. By treating them right, by helping them reach their personal goals, by emphasizing high standards of integrity and excellence and by obsessively keeping our costs low, our customers will always be the winners. Ambit Energy offers our Independent Consultants an unequalled income opportunity with unlimited earnings potential. It is a home-based business with flexible working hours. It is a chance to earn some extra money or to start a new career. It is a path to take control of your time so you can spend more of it with your family and friends. We re glad you ve decided to join the Ambit team. As you get started in building your business, please take time to familiarize yourself with the information provided in this booklet. Ambit Energy currently serves electricity customers in Texas and New York. This booklet provides information you need to know, including the documents required for serving customers in both states. Getting Connected Customers can sign up for service by visiting your personal website. All of the required forms are located on the site, the process is completely automated and ensures speedy and efficient sign-up as well as credit for your personal customer points. In Texas, it is imperative that during your initial discussion with the prospective customer to provide him/her with copies of the Terms of Service, Electricity Facts Label and Customer Rights documents. In New York, you must provide your prospective customers with one document called the New York Residential Sales Agreement & Terms of Service. All of the documents mentioned are included in this booklet and are also available in Power Zone. Please remember, when your customer completes their order online, they are automatically ed a copy of these required documents as part of their enrollment process. Additionally, copies of this/these document(s) will be mailed to the customer in their Ambit Welcome Letter. Service Coverage Area Ambit Energy offers electric service throughout the deregulated areas of Texas and in the Consolidated Edison service area of New York. The maps in this booklet provide you with a geographical overview of the covered areas. In Texas, service is offered throughout the TXU, Reliant, West Texas Utilities, First Choice and Central Power & Light territories. Three quarters of Texans are covered by these incumbent electric providers so your sales opportunity is vast. In New York, we offer service in the Consolidated Edison territory where there are more than 3.4 million households that want to save money on their monthly electric bills. Customer Credit Checks In Texas, prior to customers being processed for switching to Ambit Energy or establishing new service, a credit check is completed. After a review of their personal credit history, a deposit may be required. If a deposit is required, customers will be notified during the online enrollment process and can pay using a credit card or debit card by calling Customer Care after completing the enrollment process. Customers may avoid paying 2

5 a deposit if they can obtain a letter of payment history from their current electric provider showing no more than two late payments during the previous twelve months. This information should be faxed to Ambit s Customer Care Team at (214) In New York, no credit check is required! Quality Assurance Process In Texas, for the protection of our customers, all individuals that choose Ambit Energy will receive a call from our Quality Assurance Team, which is a professional Third-Party Verification (TPV) company that confirms a customer s desire to switch or establish new service with Ambit Energy. Additionally, any depositary requirements will be handled by them during the call. Until customers are contacted and confirm their desire to switch they will remain in a Pre-verified status. The Quality Assurance Team will attempt to contact the customer six times. After the sixth try the customer will be moved to a Pre-verify Failed status. At this point you will need to have your prospective customer call in to the Quality Assurance Team at (800) to finalize the new or switch process. In New York, one of the following two processes will be used to complete the order: Either electronic third-party verification when prospective customers sign up on your website; or, your customer will be contacted by the Quality Assurance Team to confirm their desire to switch service to Ambit Energy. Customer Enrollment Status You must assist your customer in completing the enrollment process and becoming an Energized customer. The only way to receive your monthly Customer Residual Income (CRI) is through enrolling customers that become Energized and pay their monthly electric bills. Listed below are the various customer status codes found on your Power Zone site. Pre-verified. This is a newly registered customer that has completed the sign-up process, but has not yet confirmed the order through the Quality Assurance Team. Pending. This is a customer that has confirmed their order, but not yet had electric service established through Ambit Energy. A pending customer is considered a Qualified Customer Point. Pre-verify Failed. Customers that do not confirm their choice to switch to Ambit Energy receive this status. It is your responsibility to encourage the customer to complete the Third-Party Verification (TPV) process. Until the customer personally confirms their choice to switch to Ambit Energy this status will apply. Several subcategories apply to this status code including pending deposit and customer changed mind. Energized. Customers that receive Ambit Energy service are considered Energized. Each Energized customer counts as a Qualified Customer Point for purposes of commissions and bonuses. De-energized. These are customers that for whatever reason no longer have Ambit Energy service. De-energized customers no longer contribute to your financial success. But, with discussion and reflection may choose to return, with a little help from you! Amb t Energy SM Power your future. 3

6 Ambit Energy In Texas Protections for Ambit Energy Customers Ambit Energy is committed to strictly following all Public Utility Commission of Texas (PUCT) mandates regarding our customers electric usage. Most of their mandates are common sense rules regarding consumer protections and relate to your responsibility to provide all customers in Texas with the following three pieces of information at time of sign-up: 1. Your Rights As A Customer This is a disclosure document outlining a customer s rights and protections as mandated by the PUCT. Specifics of the document include general rights and protections as well as complaint resolution processes. 2. Electricity Facts This document is basically a standardized overview of how the electricity Ambit Energy offers is generated. It provides the consumer with a true comparison between our power generation purchases with those of everyone else in the market. The facts label also provides such information as customer pricing, sources of power generation (e.g. coal, natural gas, renewables, etc.) and emissions levels. 3. Terms of Service Please provide a copy of the Ambit Energy Terms of Service to each prospective customer at the time you discuss our service. This document contains all of the terms related to electricity use, payment requirements and general legal language. The vast majority of the information contained in this document is required by the PUCT. We include nothing in our Terms of Service that is fundamentally different from any other Retail Electric Provider. Many customers may become concerned when you provide them with a document full of legal language. Please assure them that all electric providers in Texas have similar documents for their terms of service. All of the above documents must be provided to customers at time of signup. Please note that these documents are available on your Power Zone site. Additionally, Texas customers that provide an address at time of sign-up will receive electronic versions of each document for their records. 4

7 Ambit Energy In Texas Your Rights as a Customer v2.1 This information is correct at time of publication but is subject to change without notice. To be sure you have the most current information possible, please download this document from Power Zone. Ambit Energy provides electricity service without discrimination as to a customer s race, creed, color, national origin, ancestry, sex, marital status, lawful source of income, level of income, disability, family status, location in an economically distressed geographic area, or qualification for low income or energy efficiency services. As a retail customer in the State of Texas, you are entitled to the following Customer Protection Rights pursuant to the Rules of the Public Utility Commission of Texas (PUCT). These rights apply to all residential and small commercial customers served by Ambit Energy as a certified Retail Electric Provider (REP) in Texas. A complete copy of the PUCT s Customer Protection rules is available on the PUCT s website at Outage Reporting: In the event of an outage in your area please call your local energy delivery company (officially referred to as your Transmission and Distribution Service Provider, or TDSP): Oncor Electric Delivery (888) Centerpoint Energy (800) AEP Texas Central (866) AEP Texas North (866) TNMP (888) Ambit Energy is not liable for service interruptions or outages. Any questions relating to your electric distribution lines or meters should be directed to your TDSP listed above. Unauthorized Change of Service Provider or Slamming : A REP must obtain your verifiable authorization before switching your electric service. If you believe your electric service has been switched without your authorization, you should request that the REP provide you with a copy of your authorization and verification. The REP must submit this to you within 5 business days of your request. If you are not satisfied with this response, you may also file a complaint with the PUC at the address provided below. Upon receipt of a complaint filed with the PUC, the REP must respond within 21 days of receipt of the complaint, provided all documentation relied upon by the REP related to the authorization to switch, and any corrective actions taken to date, if any. If the REP is serving your account without proper authorization, they must work with other market participants to take all actions necessary to return you to your original REP as quickly as possible. Your original REP has the right to bill you at the price disclosed in your terms of service from either: 1) the date you are returned to your original REP, or 2) any prior date chosen by your original REP that served you without proper authorization shall, within five days from the date that your service is returned to your original REP, refund all charges paid for the time period the original REP ultimately bills you. In addition, the REP that served you without your authorization is responsible for paying all charges associated with returning your service to your REP of choice. You may be billed for periods that the unauthorized REP served you without your authorization, but at a rate no higher than the rate you would have been charged by your original REP. Billing Questions or Disputes: If you have specific comments, questions, complaints or bill questions, please contact an Ambit Energy customer care representative and we will assist you to resolve any inquiry you continued on following page Amb t Energy SM Power your future. 5

8 Ambit Energy In Texas : Your Rights as a Customer v2.1 continued may have. We will do everything we can to make sure your problem is handled and you are pleased with our service. If you are not satisfied, you may file a complaint with Ambit Energy and request a supervisor to conduct a full review. If we fail to resolve your dispute, it is your right to file a complaint with the PUCT: Public Utility Commission of Texas, Customer Protection Division, P.O. Box 13326, Austin, TX ; (512) or (888) , fax: (512) , TTY (512) ; ; website: Dispute or Complaints: Please contact us if you have specific comments, questions or complaints. Our customer care specialists are trained to research and resolve any issue you may have. We will do everything we can to make sure your problem is quickly and properly handled. You may also contact the Public Utility Commission of Texas. Meter Reading, Problems and Testing: Please contact Ambit Energy for instructions on how to read your own meter. If you feel your meter is not operating correctly, please contact Ambit Energy to request a meter test. You have the right to request a meter test once every four years at no cost to you. If your meter is tested more than once every four years, and the meter is found to be functioning correctly, then you may be charged a fee by Ambit Energy. Critical Care: You must inform us at the time of sign-up that an interruption or suspension of electric service will create a dangerous or life-threatening 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 the TDSP; however, you may appeal the eligibility determination to the TDSP. If not satisfied with the results of this appeal, you may file a complaint with the PUCT. If approved, the designation is valid for one year, and Ambit Energy 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 Ambit Energy for services rendered. However, a critical care residential customer who needs payment assistance is encouraged to contact Ambit Energy immediately regarding possible deferred payment options or other assistance that may be offered. Cancellation of Service: You may cancel your service at any time with no early cancellation penalty if you are under a month-to month rate plan. If you are under a term plan, you may have a cancellation fee. Please see your Terms of Service for full details. Termination: All bills are due and payable sixteen (16) days after being sent to you. If we do not receive your payment within the sixteen (16) days, this Agreement is terminated, and we will then mail a separate notice reminding you that we need to have your payment within ten (10) days or your service will be terminated. Ambit Energy may terminate this Agreement if amounts due have not been paid by the due date. Ambit Energy may also terminate this Agreement if fraud has been committed. The termination date may not fall on a holiday or weekend unless Ambit Energy or its agents are available to take payments and your service can be reconnected. If you do not obtain service from another REP prior to the termination date, you will be transferred to the POLR in your area. Ambit Energy cannot terminate your contract for any of the following reasons: Failure to pay for electric service by a previous occupant of the premises if that occupant is not of the same household Failure to pay a different type or class of electric service not included on the account s bill when service was initiated Failure to pay any charge unrelated to electric service Failure to pay under-billed charges that occurred for more than six months (except theft of service) Failure to pay any disputed charges until Ambit Energy or the PUC determines the accuracy of the charges and you have been notified of this determination Failure to pay an estimated bill unless the estimated bill is part of an approved meter reading program or in the event the local distribution company is unable to read the meter due to circumstances beyond its control 6

9 Ambit Energy In Texas : Your Rights as a Customer v2.1 continued Failure to pay charges arising from an under-billing due to faulty metering (unless the meter was tampered) Availability of Provider of Last Resort (POLR): If your electric service is terminated or disconnected, you may obtain services from another REP or the POLR. The POLR offers a basic, standard retail package at a fixed, nondiscountable rate. You may call PWR-4-TEX or visit for more information about the default POLR in your area. Disconnection: Other than for fraud, Ambit Energy will send a Disconnection Notice the day after this Agreement terminates for any reason listed above. Disconnection Notices detail amounts due to continue service. Ambit Energy may disconnect service for nonpayment if amounts due remain unpaid ten days after a Disconnection Notice has been sent. Ambit Energy may disconnect service immediately if fraud has been committed. The disconnection date may not fall on a holiday or weekend or the day preceding unless Ambit Energy or its agents are available to take payments and your service can be reconnected. The PUCT has determined that under certain dangerous circumstances (such as unsafe electric line situations) Ambit Energy may authorize your TDSP to disconnect your electric service without prior notice to you. Additionally, Ambit Energy may seek to have your electric service disconnected for: (1) failure to pay a bill owed or to make a deferred payment arrangement by the date of disconnection; (2) failure to comply with the terms of a deferred payment agreement made with Ambit Energy; (3) using the service in a manner that interferes with the service of others or using nonstandard equipment; (4) failure to pay a deposit required by Ambit Energy; or (5) failure of the guarantor to pay the amount guaranteed when Ambit Energy has a written agreement, signed by the guarantor, which allows for the disconnection of your service. Ambit Energy may not disconnect your electric service: (1) if notification is received by the disconnection date that an emergency assistance provider will be forwarding sufficient payment on your account; (2) for non-payment during an extreme weather emergency and must offer you a deferred payment plan for bills due during the emergency; or (3) for non-payment if you have properly informed Ambit Energy at the time sign-up, that you or another resident on the premises has a critical need for electric service. To obtain this exemption, you must have notified Ambit Energy in writing at the time of sign-up, have submitted a written statement attesting to the necessity of electric service to support life, have entered into a deferred payment plan with Ambit Energy, and have had the ill-person s attending physician contact Ambit Energy. This exemption from disconnection due to illness or disability shall be in effect for 63 days and may be applied for again after the 63 days has expired and the deferred payment plan has been fulfilled. Unauthorized Charges or Cramming : Before any new charges are included on your electric bill, Ambit Energy must inform you of the product or service, all associated charges, and how these charges will be billed before they appear on your electric bill and obtain your consent for the product or service. If you believe your bill includes unauthorized charges, you may contact us to dispute such charges and you may file a complaint with the PUC. Ambit Energy will not seek to terminate your electric service for nonpayment of an unauthorized charge, nor will it file an unfavorable credit report against you for disputed unpaid charges that are alleged to be unauthorized, unless the dispute is ultimately resolved against you. If the charges are determined to be unauthorized, Ambit Energy will cease charging you for the unauthorized service or product, remove the unauthorized charge from your bill, and refund or credit all money you paid for any unauthorized charge within 45 days. If charges are not refunded or credited within three billing cycles, interest shall be paid to you at an annual rate established by the PUCT on the amount of any unauthorized charge within 15 days after the date the unauthorized charge is removed from your bill. Ambit Energy will not re-bill you for any charges determined to be unauthorized. Service Protections: Ambit Energy will not terminate you for (1) delinquency of payment by a previous occupant, (2) failure to pay charges not related to electric service, (3) failure to pay for a different class of electric service, (4) failure to pay an under-billing, other than for continued on following page Amb t Energy SM Power your future. 7

10 Ambit Energy In Texas : Your Rights as a Customer v2.1 continued theft of service, more than 6 months old, (5) failure to pay for a disputed charge until a determination as to the accuracy is made, (6) failure to pay an under-billing due to faulty metering, unless there has been meter tampering, or (7) during an extreme weather emergency, holidays or weekends, except on request, or (8) if you properly inform Ambit Energy that you or another resident on the premises has a critical need for electric service. Restoration of Service: If your service has been disconnected by Ambit Energy, your service will be reconnected upon satisfactory correction of the reasons for disconnection. If your service was disconnected due to a dangerous situation, your service will be reconnected once you notify Ambit Energy that you have corrected and satisfactorily resolved the dangerous situation. Bill Payment Assistance: An emergency assistance program is available to customers who have severe financial hardships and temporarily may be unable to pay their bills. Please call us for additional information. Deferred Payment Plans and Other Payment Arrangements: If you cannot pay your bill, please call Ambit Energy immediately. Ambit Energy may offer you a short term payment arrangement that allows you to pay your bill after your due date, but before your next bill is due. In addition, you may qualify for a deferred payment plan. A deferred payment plan allows a customer to pay an outstanding bill in installments beyond the due date of the next bill. Ambit Energy may require an initial payment to initiate the agreement. Ambit Energy is required to offer you a deferred payment plan unless you have received more than 2 disconnection notices during the past 12 months or you have been a customer for less than 3 months and do not have sufficient credit or payment history with another REP. All REPs must offer customers deferred payment plans for bills that are due during an extreme weather emergency and to customers who have been under-billed in the amount of $50.00 or more. A deferred payment plan may include a 5% penalty for late payment; however, the POLR may not charge a late fee. Privacy Rights: Ambit Energy will not release proprietary customer information except as authorized under the law. The PUCT has authorized release of proprietary customer information to law enforcement agencies, energy assistance agencies, collection and reporting agencies, utilities and the PUCT. Do Not Call List: The PUCT maintains a Do Not Call List of customers who do not want to receive telemarketing calls for electric service. Call toll-free TXNOCAL or , or visit the PUCT website at to subscribe to the Do Not Call List. 8

11 Ambit Energy In Texas Electricity Facts Ambit Energy, L.P., Residential Electric Service As of May 2007 This information is correct at time of publication but is subject to change without notice. To be sure you have the most current information possible, please download this document from Power Zone. This price disclosure is an example cycle, based on: Electricity Price Average Monthly Usage: 500 kwh 1000 kwh 1500 kwh Average Price per kwh: $ $ $ This variable price disclosure is an example based on average service prices. Your average price for electric service will vary according to your usage and the cost of energy at the time of usage. Variable Monthly Charge None for usage of 1,000 kwh or more in a billing cycle $4.99 for usage of less than 1,000 kwh in a billing cycle Contract Options Options Early Termination Fee Month to Month None 12 Months $ See Terms of Service for a full listing of fees, deposit policy and other terms. Sources of Power Generation This Product Texas for Comparison Coal and Lignite 32% 32% Natural Gas 51% 51% Nuclear 10% 10% Renewable 4% 4% Other 3% 3% Emissions and Waste per 1,000 kwh generated Carbon dioxide 100 Nitrogen oxides 100 Particulates 100 Sulfur dioxide 100 Nuclear waste 100 Better than Texas Worse than Texas Indexed values; 100 = Texas Average Amb t Energy SM Power your future. 9

12 Ambit Energy In Texas Terms of Service v3.0 This information is correct at time of publication but is subject to change without notice. To be sure you have the most current information possible, please download this document from Power Zone. The following is your Terms of Service Agreement ( Agreement ) with Ambit Energy ( Ambit Energy ) for the purchase of electricity service. Please retain this Agreement for your records. Ambit Energy is certified as a Retail Electric Provider ( REP ) by the Public Utility Commission of Texas ( PUCT ), Certificate # Internet Address Mailing Address 1801 N. Lamar Street, Suite 200 Dallas, TX Telephone Number General Office Hours 8:00 am 5:00 pm CT Mon. Fri. Customer Service CS Hours 8:00 am 6:00 pm CT Mon. Fri.; 10:00 am 5:00 pm CT Sat. Ambit Energy will arrange for the delivery of electricity from your local energy delivery company (officially referred to as your Transmission and Distribution Service Provider, or TDSP ) to the service location designated by you pursuant to this Agreement. Outage Reporting: In the event of an outage in your area please call your local TDSP: Oncor Electric Delivery Centerpoint Energy AEP Texas Central AEP Texas North Texas New Mexico Power Ambit Energy is not liable for service interruptions or outages. Any questions relating to your electric distribution lines or meters should be directed to your local energy delivery company listed above. Term & Renewal: Depending on which plan you have chosen your service under this Agreement is provided on either a month-to-month basis or a one-year term and will begin on the date your meter is read by your TDSP. Because this date is determined by your TDSP, Ambit Energy is not able to commit to a specific date for the commencement of service. If you are a one-year-term customer, upon expiration your service will continue on a month-to-month basis at a market price set by Ambit energy. This change to month to month pricing will be made automatically without further notice. Pricing: Your rate for service is indicated on the Electricity Facts Label and the conditions of this plan are specified in this Terms of Service. This price includes all recurring TDSP charges for the delivery of electricity. Customers who use less than 1,000 kwh of electricity in any given billing period may be assessed a $4.99 customer charge. Month-to-month customers are subject to rate adjustments throughout the term of this agreement, but not more than once per billing cycle, to reflect changes in market costs and the cost of fuel used to generate electricity. Customers who choose a one-year-term product have a fixed price for the term; however, term customers prices may be adjusted for increases in charges by the TDSP for the delivery of electricity. You may also be billed for certain other fees, including customer, metering and congestion charges as well as non-recurring fees assessed by your TDSP or Ambit Energy. The electricity price, any non-recurring TDSP charges, base charges, service connection, disconnection or reconnection fees, taxes and any additional charges will appear as separate items on your bill. You are responsible for all federal, state and local taxes and charges. Ambit Energy reserves the right to include in any subsequent bill, adjustments related to previous billings, previous billing errors, meter read errors, miscalculation of taxes or other errors or omissions. Cancellation Rights: You have the right to cancel your request to switch to Ambit Energy without any exit fee or penalty of any kind within three days of your initial 10

13 Ambit Energy In Texas : Terms of Service v3.0 continued request to switch. To cancel this Agreement, you may call or fax us at the contact information provided above. Cancellation is permitted for any reason. Regardless of the reason for cancellation of this Agreement, you are responsible for payment of all outstanding charges. After the three-day initial request to switch, one-yearterm customers will be assessed a $ cancellation fee if you cancel prior to the expiration of your Initial Term or otherwise breach the term of this Agreement. Upon receipt of acceptable documentation, Ambit Energy, will waive this cancellation fee if you relocate to an area not serviced by Ambit Energy. To cancel this Agreement, you may call or fax us at the contact numbers provided. Regardless of the method or reason for cancellation of the Agreement, you are responsible for all outstanding charges incurred through the date on which the cancellation is effected by the TDSP. Payments: You will receive a monthly bill from Ambit Energy. All bills are due and payable 16 days after issuance, which is defined as the statement date on your invoice or the postmark date on the envelope, whichever is later. Bills shall be deemed past due and delinquent at the close of business on the day the bill is due. Late payments, delinquent or past-due balances may result in a penalty equal to 5% of the month s past-due amount. Ambit Energy will charge $25 for each transaction not processed due to insufficient funds including a) returned checks, b) returned electronic fund transfers, and c) rejected credit card transactions. We may also charge a service processing fee of up to $5.00 for any payment processed by an Ambit Energy Customer Care Specialist or for any onetime credit/debit card payments. Payment Arrangements: If you are unable to pay your bill on time, please call Customer Care immediately, Ambit Energy may allow you to pay the outstanding bill after its Due Date but before the Due Date of the next bill. If a disconnection notice was issued before a payment arrangement was made, but a payment arrangement is then subsequently agreed to between you and Ambit Energy, disconnection will be suspended until after the date of the payment agreed to in such payment arrangement. If payment is not received by the due date of the payment arrangement, no further notice will be provided and the electric service will be disconnected. Deferred Payment Plans: You may be eligible for a deferred payment plan if you cannot pay your bill on time, provided that: (1) you have not received 2 termination notices within the past 12 months; (2) you do not have a deferred payment for a previous balance; or (3) you have not had service by Ambit Energy for 3 months. A deferred payment plan requires an initial payment of 25% of the outstanding balance, and the remaining balance to be paid over three billing cycles. Your service may still be terminated and disconnected if you do not meet the requirements of a deferred payment plan. Average Billing: This program allows you to pay approximately the same monthly amount for electric service, subject to an annual adjustment based on actual consumption. This program is offered to any customer who meets Ambit s eligibility requirements. Disconnection Without Notice: Ambit Energy may disconnect service immediately for the following reasons: (1) a known dangerous condition exists, in which event prior notice will be given, if possible. Notice will be provided by phone or posted on the door of the residential unit as soon as practicable after service is disconnected; (2) service was connected by a person without authority and without an Agreement; (3) service is reconnected without authority after being disconnected for failure to pay; (4) there is evidence of tampering with equipment of the transmission or Local Distribution utility, municipally owned utility or electric cooperative; and (5) there is evidence of theft of service. If service was disconnected due to a dangerous situation, Customer must correct the situation and notify Ambit Energy before service will be reconnected. Ambit Energy may disconnect service for nonpayment if amounts due remain unpaid ten days after a Disconnection Notice has been sent. Fraud and non-payment shall be considered breaches of this Agreement, and Disconnection and Termination Fees may apply. If payment is made after a disconnection order has been sent to the TDSP, every effort will be made to cancel the order, however, there may be additional charges that you will be responsible for, continued on following page Amb t Energy SM Power your future. 11

14 Ambit Energy In Texas : Terms of Service v3.0 continued including a 5% late fee, a $15.00 Disconnect Fee and a $50 reconnect fee. Disconnection of service will not excuse you from paying any outstanding amounts owed to Ambit Energy, including fees assessed by Ambit Energy. Ambit Energy reserves the right to assess an additional deposit for customers who are disconnected due to non-payment. If service is not reconnected within ten days of disconnection for non-payment, Ambit Energy reserves the right to cancel this agreement and require a new deposit for service initiation. Collection Fees: In the event you default in the prompt payment of amounts due under these Terms of Service, Ambit Energy reserves the right to assess any and all fees or charges related to the collection of delinquent balances. Ambit Energy may use the services of debt collection agencies, consumer reporting agencies and other remedies as allowed by law to collect any unpaid balances on your account. Credit: The Terms of Service is conditional upon you demonstrating to us your creditworthiness and is subject to your meeting the credit requirements of Ambit Energy, each at our sole discretion, throughout the Delivery Term. You agree to cooperate with Ambit Energy in establishing your creditworthiness. If you do not have satisfactory credit, Ambit Energy will require you to post a deposit before service can be established. Deposits: You may be required to provide an initial deposit if you do not meet Ambit Energy s credit standards or cannot demonstrate satisfactory credit as defined in of the PUCT rules. If a deposit is required, the total amount of your deposit will not exceed an amount equivalent to the greater of either (1) the sum of the next two months estimated billings, or (2) one-fifth of the estimated annual billing. This deposit requirement can be waived if you are an existing customer of another Retail Electric Provider and can prove that you have had no more than two late payments of the past 12 months of service. You may be required to provide an additional deposit to continue to receive electricity service if (1) your average annual electric service Invoice for the last 12 months is at least twice the amount of the original estimated annual Invoice, or (2) your electricity service has been disconnected once in the previous 12 months. Interest will accrue on cash deposits retained for longer than 30 days. The interest rate is established annually by the PUCT. The interest shall accrue from the date the deposit is received. Your initial deposit and any accrued interest will be credited to your account after 12 consecutive months of service if you had no more than two late payments and your service was not disconnected for nonpayment. If your deposit is refunded within thirty days of the date of the deposit being made, no interest payment will be made. Refusal of Service: Ambit Energy may refuse to provide electric service to a customer for one or more of the reasons specified in Section of the PUCT rules and regulations. Please call the PUCT ( ) if you have any questions or want information on PUCT rules and regulations. Discrimination: Ambit Energy does not discriminate, deny service, or require prepayment or deposit for service based on race, creed, color, national origin, ancestry, sex, marital status, lawful source of income, level of income, disability, family status, location in an economically distressed geographic area, or qualification for low income or energy efficiency services. Material Change: Ambit Energy will provide you with 45 calendar days advance written notice of any material change in the Terms of Service, either in your bill or in a separate mailing. The changes will become effective on the date stated in the notice unless you cancel your Agreement no later than 10 calendar days before the effective date of the material change. Customer Information: By entering into this Agreement, your TDSP may release to us certain information that we need to provide you with service, including your address, phone number, account numbers and historical usage information. Force Majeure: We will endeavor in a commercially reasonable manner to provide service, but we do not guarantee a continuous supply of electrical energy. Events that are out of our control ( force majeure events) may result in interruptions in service. We will 12

15 not be liable for any such interruptions. We do not generate your electricity nor do we transmit or deliver electricity to you. Therefore you agree that we are not liable for damages caused by events of force majeure, including acts of God, acts of any governmental authority, including the Public Utility Commission of Texas or the Electric Reliability Council of Texas (ERCOT), accidents, strikes, labor trouble, required maintenance work, inability to access the TDSP system, non-performance of the TDSP, changes in laws, rules, regulations, practices or procedures of any governmental authority or ERCOT, or any cause beyond our control. Limitations of Liability: Liabilities not excused by reason of force majeure or otherwise shall be limited to direct actual damages. Neither party will be liable to the other for consequential, incidental, punitive, special, exemplary or indirect damages. Lost profits or penalties of any nature are hereby waived; these limitations apply without regard to the cause of any liability or damage, including the negligence of Ambit Energy. There are no third-party beneficiaries to this Agreement. Representations and Warranties: The electricity sold under this Agreement will meet the applicable TDSP s standards and may be supplied from a variety of sources. Ambit Energy makes no representations or warranties other than those expressly set forth in this Agreement, and Ambit Energy expressly disclaims all other warranties, expressed or implied, including warranties of merchantability and fitness for a particular purpose. or the accounts, revenues or proceeds hereof in connection with any financing or other financial agreement; (b) transfer or assign this Agreement to an affiliate of Ambit Energy; (c) transfer or assign this Agreement to any person or entity succeeding to all or substantially all of the assets of Ambit Energy; and/or (d) transfer or assign this Agreement to a certified REP. In the case of (b), (c) or (d), any such assignee shall agree in writing to be bound by the terms and conditions hereof. Upon any such assignment, Customer agrees that Ambit Energy shall have no further obligations hereunder. Excuse: If an event occurs which makes it impossible for Ambit Energy to perform under this Agreement, such as an act of God, extraordinary weather occurrence, war, civil disturbance or other national emergency, our performance under this Agreement shall be excused for the duration of such event. This could be an event affecting your TDSP, such as a facility outage on their electric distribution lines. Governing Law: This Agreement shall be governed by and construed, enforced and performed in accordance with the laws of the State of Texas and venue shall be in Dallas County, Texas. The provisions of the Uniform Commercial Code (UCC) shall apply to this Agreement, and electricity shall be a good for purposes of the UCC. Assignment: You may not assign this Agreement, in whole or in part, or any of its rights or obligations hereunder without the prior written consent of Ambit Energy. Ambit Energy may, without your consent: (a) transfer, sell, pledge, encumber or assign this Agreement Amb t Energy SM Power your future. 13

16 Ambit Energy In Texas Coverage Map Ambit Energy serves Texas communities in the yellow portions of this map. Note that because in some Zip Codes there are both deregulated and regulated areas, the availability of Ambit service cannot be confirmed until the potential customer s specific address is provided. WTU Energy First Choice Power TXU WTU Energy TXU First Choice Power WTU Energy TXU Reliant CPL Energy First Choice Power 14

17 Ambit Energy In Texas The Ambit Energy Billing Statement 1 2 Account Summary. This section contains important customer information including service address, statement date and customer s unique ESI ID (meter number). Please note that your name will appear on your customer s bill each and every month. Customer Savings and Rewards. This section shows the amount of savings your customer has accumulated since switching to Ambit Energy, compared to the incumbent electric provider s rate. Additionally, Ambit Energy customers earn travel reward points for every kilowatt hour they use. The total number of points they have accumlated is listed here. 1 John Q. Customer 1234 Main Street Dallas, TX Account number A Your Consultant: Jane Smith Invoice 1062X6 Statement date May 7, 2007 ESI ID XXXX Product Heart of Texas Month-to-Month Your Electric Usage (kwh) M J J A S O N D J F M A M The average price you paid for service is cents per kwh. Your Savings This Month: $14.35 Total Savings Since becoming a customer, you have saved $ versus Oncor s standard rate. Reward Points You earned 593 reward points this month. You now have a total of 9,013 points available for redemption For power outages and emergencies, please call TXU Electric Delivery at For information, please call Ambit Customer Care at Electric Usage Meter Read period Start/End Multiplier kwh used RJ 04/04/07-05/04/07 2,519/3, Billing Summary Previous balance $ Payment received 04/19/07 - ***Thank you*** (47.05) Balance $ 0.00 Current Charges Usage (593 kwh) $77.03 Applicable taxes 2.46 Total Current Charges $79.49 Total Amount Due $ Emergency Contact Information. The contact number for power outages and emergencies is listed here. This number changes depending on where your customer lives. All emergencies are handled by the local lines carrier, which is the same for everyone in a given geographic area regardless of the actual Retail Electrical Provider. This ensures all customers are treated equally for purposes of responding to emergencies or outages. # Keep this part for your records. See reverse side for additional information. Please mail this portion with your payment. Make check payable to: Ambit Energy. 7 Total Amount Due $ Amount due if paid after May 23 $83.46 Account A Invoice 1062X6 Amount enclosed $ Please include your account number on your check or money order. John Q. Doe Mail payment to: Bill Payment Assistance Program donation: 1234 Main Street $1.00 $5.00 $10.00 $20.00 Dallas, TX The Bill Payment Assistance Program helps Ambit Energy pay the electric bills of people in need. The P.O. Box program is funded by customer contributions. Dallas, Texas Billing Summary. Customer s previous balance and payments are located in this section. Also included are any adjustments, balances not previously paid and charges for the current bill. kwh Usage History. This section provides an overview of the amount of electricity used during the billing cycle. Included are the initial meter read at the start of the billing cycle and the final meter read. The difference between the two figures is the amount of kilowatt hours the customer used. The associated costs, taxes, total and payment due date are listed here. The usage graph provides a historical usage reference over a thirteenmonth period. Below the graph is the average price per kilowatt-hour for the billing period. 6 Customer Care and PUCT Contact Information. The toll-free number to contact Ambit Customer Care and the Public Utility Commission of Texas dispute resolution address and telephone number are listed on the back of the bill. This information is required by the Commission on all customer bills. 7 Payment Coupon. This part is detached and mailed back with payment. The payment coupon lists the amount owed, due date and provides an opportunity for customers to make a donation. If customers choose to make a donation, the amount is added to the total bill and written into the section provided. Customers are not obligated to make a donation. Any donations received are given to local charitable organizations to help needy individuals pay for electric service. Amb t Energy SM Power your future. 15

18 Ambit Energy In Texas Customer Enrollment Rules Ambit Energy provides a business opportunity with unlimited earning potential. As you grow your business, you will make decisions every single day. Ambit expects its Independent Consultants to always do the right thing, to be honest and to be respectful. Don t ever sacrifice your integrity for growth. It s not worth it. We want to help you reach goals you never dreamed possible. And we also want you to be proud of your success. Time and again, we have seen that success depends on integrity, enthusiasm, a strong work ethic, a willingness to help others succeed, and the commitment to provide customers all of the facts they need to make an educated decision. Here are some key enrollment rules to remember: Please DO... Please DO NOT... Provide each customer with the three required disclosures at the time of their enrollment: Electricity Facts Label Disclosure Terms of Service Disclosure Your Rights as a Customer Disclosure Explain the service enrollment steps to each customer: Credit Check Third Party Verification through the Quality Assurance Team Enroll customers without their authorization. Slamming is strictly prohibited by the Public Utility Commission of Texas and Ambit Energy and will result in the immediate termination of your Consultant position. Misrepresent yourself or Ambit as part of the local utility or any other power company. Coerce customers to enroll through bribes, intimidation or offers to pay their energy bills. Personally accept deposits or payments for service under any circumstances. ERCOT Postcard Confirm that the customer s name and phone number on the Energy Service Agreement matches the name and ESI ID (unique meter identification number) on their current energy bill. Verify that the person completing the Energy Service Agreement is the person in the household with the authority to switch energy providers. Conduct yourself in a professional and ethical manner. 16

19 Ambit Energy In New York Protections for Ambit Energy Customers As an Energy Services Company (ESCO) in the State of New York, Ambit Energy is committed to strictly following all New York Public Service Commission (PSC) mandates regarding our customers electric usage. The PSC requires that your potential customers be provided with the New York Residential Sales Agreement & Terms of Service at the time you discuss Ambit electricity service with them. The Home Energy Fair Practices ACT (HEFPA) gives residential customers additional protection in the competitive energy market. Consumer protections are guaranteed whether electricity and/or natural gas is purchased from an Energy Service Company (ESCO) or the incumbent utility. Amb t Energy SM Power your future. 17

20 Ambit Energy In New York New York Residential Sales Agreement and Terms of Service v05/2007 This information is correct at time of publication but is subject to change without notice. To be sure you have the most current information possible, please download this document from Power Zone. The following is your Residential Sales Agreement and Terms of Service ( Agreement ) with Ambit Energy for the purchase of electricity service. Please retain this Agreement for your records. Contact Information: Mailing Address: 1801 North Lamar Street Suite 200 Dallas, TX Telephone Number: Customer Service Number: Agreement to Purchase Energy. Ambit Energy ( Ambit ) agrees to sell and Customer agrees to buy the quantity of electricity necessary to meet the Customer s consumption profile. The amount of electricity supplied is subject to change based upon data affecting consumption obtained by Ambit or the delivery schedule of the Local Delivery Utility (LDU). Customer will promptly advise Ambit if any event may cause a 10% change from Customer s historic consumption. In the event Customer fails to do so, Ambit shall have the option to charge Customer for costs or losses incurred due to this failure. 1. Term. The Customer has the right to cancel this agreement within three (3) business days after its receipt ( Cancellation Period ). The term shall commence as of the date the change of provider to Ambit is deemed effective by the LDU and shall continue for one (1) month thereafter (Initial Term). This Agreement shall automatically renew for successive one (1) month periods (Renewal Term) unless either party notifies the other party of its desire not to renew. 2. Price. Unless otherwise agreed to in writing or other form as authorized under the Uniform Business Practices (UBP) of the New York State Department of Public Service (DPS), the price for all energy sold under this Agreement through the Customer s first two billing cycles shall by be based upon a 7% discount as compared to Consolidated Edison s published rate during those same two billing cycles. After this initial two month discount, subsequent months will be billed at a variable rate set by Ambit based on market conditions, plus all applicable taxes. Payment will be due and payable as specified in the LDU bill. Budget, level, or other payment plans may be available from Customer s LDU, as provided in the Home Energy Fair Practices ACT (HEFPA). Customer payments remitted in response to the LDU s consolidated bill shall be pro-rated in accordance with procedures adopted by the Public Service Commission (PSC). 3. Consumer Protections. The services provided by Ambit are protected by the terms and conditions of this Agreement and the Home Energy Fair Practices Act (HEFPA). Ambit will provide at least fifteen (15) calendar days notice prior to any cancellation of service to Customer. In the event of non-payment of any charges owed to Ambit, Customer may be subject to termination of commodity service and the suspension of distribution service under procedures approved by the DPS. Customer may obtain additional information by contacting the DPS at , or by writing to the DPS at: New York State Department of Public Service, Office of Consumer Services, Three Empire State Plaza, Albany, New York 12223, or through its website at: The DPS will monitor complaints against all energy companies, and an excessive number of complaints may result in an energy company no longer being eligible to supply electricity in New York State. The Alternative Energy Provider Line for the retail access market is

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