Terms of Service Residential Fixed Rate Product Potentia Peace of Mind

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1 Terms of Service Residential Fixed Rate Product Potentia Peace of Mind The following Terms of Service (TOS) will apply to residential customers within the ERCOT service region who select Potentia Energy, LLC dba Potentia Energy (Potentia Energy) as their Retail Electric Provider (REP). This TOS, combined with the documents entitled Your Rights as a Customer (YRAC), and Electricity Facts Label (EFL), along with your Letter of Authorization Form (Authorization), constitutes the contract between you (the Customer ) and Potentia Energy. These documents may be amended from time to time and the Authorization, EFL and YRAC are hereby incorporated by reference into this TOS (collectively, the Contract ). your REP, Potentia Energy will arrange for the delivery of electricity from your Transmission & Distribution Service Provider (TDSP) to your service location pursuant to this Contract. The words we, us, and our refer to Potentia Energy, and the words you and your refer to Customer. The word Party refers to Potentia Energy or Customer and the word Parties refers to both Potentia Energy and Customer. REP Name: Potentia Energy, LLC dba Potentia Energy Internet: Mailing Address: P.O. Box contact@potentiaenergy.com Sugar Land, TX Telephone: PUCT Certificate #10157 Hours of Operation: Corporate Address: 7322 Southwest Fwy, Suite :30am to 7:30pm Monday-Friday Central Standard Time Houston, TX :00am to 2:30pm Saturday Central Standard Time 24 Hour Service Outage Reporting: CenterPoint Energy AEP North (WTU) Oncor Electric Delivery Texas-New Mexico Power AEP Central (CP&L) Sharyland Utilities RIGHT OF RESCISSION If you are switching your electric service to Potentia Energy, as opposed to starting service at a new location or moving in, you have the right to rescind your acceptance of this Terms of Service without fees or penalties of any kind, within three (3) federal business days (including Saturday) after receiving this Terms of Service as provided by PUCT Substantive Rule , which can be viewed at the following website: You may rescind either by phone at (toll free), fax at , or at cancel@potentiaenergy.com. Please provide your name, address, phone number, Electric Service Identifier (ESI ID), and a statement that you are rescinding your Contract under the three-day Right of Rescission. If your termination requires an early meter read by your TDSP, you will be charged a fee established by your TDSP. You are responsible for all charges incurred through the date on which termination is effected by the TDSP. ELIGIBILITY Potentia Energy cannot deny service or require a prepayment or deposits for 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. Potentia Energy cannot use a credit score, a credit history, or utility payment data as the basis for determining the price of electric service for a residential product with a contract term of 12 months or less. Potentia Energy reserves the right to deny service to any customer whose installation or equipment is known to be hazardous; if the applicant or customer does not comply with all local and state regulations; if the customer or applicant fails to comply with the TDSP tariff pertaining to operation of nonstandard equipment or unauthorized attachments that interfere with the service of others; if the applicant applies for service at a location where another customer received, or continues to receive, service and the REP can reasonably demonstrate that the change of account holder and billing name is made to avoid or evade payment of a bill owed to the REP; if the applicant or customer owes a bona fide debt to Potentia Energy for electric service; if the applicant or customer has acted as a guarantor for another applicant or customer and failed to pay the guaranteed amount, where such guarantee was made in writing and was a condition of service; or if the applicant or customer fails to comply with the credit and deposit requirements set forth in this TOS. Potentia Energy, LLC DBA Potentia Energy Page 1 of 12 Version RT010412B

2 This Contract is for residential electric service. If you receive service under this Contract and are not a residential customer, we will send you the current commercial terms of service and EFL for commercial variable month to month service, which shall become effective upon receipt. PRODUCT TYPES Potentia Energy offers the product types listed below. Only the specific section that describes your product type as stated on your EFL will apply to your Contract. Fixed Rate Products - A retail electric product with a term of at least three months for which the price (including recurring charges) for each billing period of the contract term is the same throughout the contract term, except that the price may vary from the disclosed amount solely to reflect actual changes in the Transmission & Distribution Service Provider (TDSP) charges, changes to the Electric Reliability Council of Texas (ERCOT) or Texas Regional Entity (now Texas Reliability Entity) administrative fees charged to loads or changes resulting from federal, state or local laws that impose new or modified fees or costs on a REP that are beyond the REP s control. Variable Price Products - A retail electric product with a term of 31 days or less, for which the price may vary according to a method determined by Potentia as set forth in your EFL. For residential customers, a variable price product can be only a monthto-month contract, which will automatically renew monthly until you request cancellation of service or switch to a fixed price plan. There are no early termination fees or penalties assessed on a month-to-month contract and you may cancel your service under this contract at any time. PRICING Fixed Rate Product (Potentia Peace of Mind - Bundled) Potentia Energy will bill you an Energy Charge in accordance with your Authorization and your EFL for the Initial Term of your Contract. This Energy Charge is subject to the verification of the correct load profile as assigned by Electric Reliability Council of Texas (ERCOT) and is only for residential electric service. Energy Charge includes the cost and charges for electricity supply, all recurring Transmission and Distribution Service Provider (TDSP) charges, any electric energy losses, congestion charges, scheduling services, ERCOT-imposed administrative fees, any imbalance charges, and ancillary services. If more than one meter identified by Electric Service Identifier ( ESI-ID ) is included in this agreement, the Energy Charge will be charged for all of the usage at all of the included ESI-IDs. Potentia Energy will also bill you for a Billing Cycle Charge, taxes, reimbursement of gross receipt tax, Public Utility Commission of Texas (PUCT) sessment, and any other applicable late fees or non-recurring fees charged by the TDSP or Potentia Energy. Potentia will not charge late fees to customers that receive a low-income discount (see the section Financial and Energy sistance for Low Income Customers ). You are responsible for all applicable state and local taxes and charges. If you are exempt from Gross Receipts Tax due to living in an unincorporated area, it is your responsibility to provide us with this information, so that Potentia Energy can update your account accordingly. Calculation of the bill: Your electricity service charges shall be calculated as follows: Energy Charge (energy price per kwh x total kwh consumed) + Billing Cycle Charge + High Consumption Credit (if applicable) + TDSP non-recurring discretionary charges + any applicable late fees or Potentia Energy non-recurring discretionary charges + all applicable taxes, including reimbursement of Gross Receipts Tax and PUCT sessment. Your price will be specified in cents per kilowatt-hour (kwh) as detailed on the EFL and shall include energy costs, ERCOT costs and TDSP costs. Regardless of usage, you will be assessed a Billing Cycle Charge, as listed on your Electricity Facts Label (EFL), for each billing cycle, which is defined as a period bounded by a start date and stop date that the TDSP uses to determine when a customer used electric service. A billing cycle may be less than 30 days but the Billing Cycle Charge will not be prorated. In no event will more than one Billing Cycle Charge be assessed per ESI-ID per billing cycle. This Billing Cycle Charge will be listed as a separate line item on your bill. However, if your usage is above 1,000 kwh per billing cycle, a High Consumption Credit, as listed on your Electricity Facts Label (EFL), will be automatically issued to you and listed as a separate line item on your bill. If more than one ESI-ID is included in this agreement, you will be charged a separate Billing Cycle Charge for each included ESI-ID. Similarly, you will receive a separate High Consumption Credit for each included ESI-ID that has usage above 1,000 kwh for that billing cycle. All applicable governmental taxes and non-recurring TDSP fees, including, but not limited to, connection charges, move-in charges, meter installation charges and reconnection charges will be listed separately on your bill. Current rate schedules for each TDSP service area are provided in this document under Itemization of Non-Recurring Charges for Service. All applicable nonrecurring charges for Potentia are described under Itemization of Non-Recurring Charges for Service (Potentia) and will be listed separately on your bill. The Energy Charge may vary to reflect changes in TDSP charges, changes to the ERCOT or Texas Reliability Potentia Energy, LLC DBA Potentia Energy Page 2 of 12 Version RT010412B

3 Entity administrative fees charged to loads, or changes resulting from federal, state or local laws that impose new or modified fees or costs on Potentia that are beyond Potentia s control, all of which will be passed through to you without prior notice and shall be shown as one or more separate line items on your bill. CONTRACT TERM & RENEWAL Potentia will provide service under this Contract starting on the meter read date set by your TDSP (unless you and we otherwise agree in writing), and ending on the first meter read date following the expiration of your Contract Term period specified in your EFL, as authorized by PUCT Substantive Rule (which may be viewed at the following website: Your meter read date is set by your TDSP; therefore, Potentia Energy is not liable for any resulting delay in commencement or termination of Potentia Energy s service. A contract expiration notice will be sent to you at least thirty (30) days or one billing cycle prior to contract expiration, but no more than sixty (60) days or two billing cycles in advance of contract expiration, in accordance with PUCT Substantive Rule (which may be viewed at the following website: Potentia will send you the notice by mail or will send the notice to your address if you request to receive contract-related notices electronically and provide us your address. During the 30 day contract expiration notice period, you may contact Potentia to discuss renewing your contract or switching to another retail electric provider. If you fail to take action to ensure the continued receipt of retail electric service before the contract s expiration, you will continue to be served by Potentia Energy automatically pursuant to a default renewal product, which is a month-to-month variable price product (as described in an EFL that will be provided to you with the contract expiration notice), until this Contract is terminated either by you, or by Potentia Energy. Current and prior month to month variable rates are available at This Contract becomes effective on Potentia and you when you authorize Potentia to provide electricity service to you and ends when you have paid all amounts owed to Potentia. EARLY TERMINATION If you request that service begin more than thirty (30) days after you execute this Contract and you terminate this Contract before receiving service, the termination fee described in the EFL, if any, will be assessed by Potentia, other than by reason of a Force Majeure event. Before the Contract Term specified in your EFL begins, Potentia may, upon thirty (30) calendar days written notice to you, terminate this Contract to provide you service without any obligation (whether payment or otherwise). BILLING You will be billed monthly for your electricity service with Potentia Energy. Your bill may be sent electronically in lieu of written mailings if you and Potentia Energy agree to such an arrangement. You will not be charged a fee to receive a standard bill via U.S. Mail. You may be charged a fee or given a discount if you authorize, and Potentia Energy agrees to, the delivery of a nonstandard bill. Bills will be issued within thirty (30) calendar days of obtaining meter usage and any related invoices for nonbypassable charges, regardless if the bill is based on actual or estimated usage, and other billing information from the TDSP, unless it becomes necessary to validate the supplied usage information and billing information. You shall be entitled to request copies of your billing records once for each 12-month period at no charge; any additional requests may result in a fee of $3.00 per bill period requested. If Potentia is unable to issue a bill based on actual meter reading due to the failure of the TDSP, the registration agent, municipally owned utility or electric cooperative to obtain or transmit a meter reading or an invoice for non-bypassable charges to Potentia on a timely basis, Potentia Energy reserves the right to send you an estimated bill for usage and provide you a true-up of your electricity usage the following month, or upon receipt of actual usage from the TDSP. If we send you an estimated bill, we will inform you the reason for the issuance of the estimated bill. Potentia Energy reserves the right to include in any subsequent bill adjustments related to previous billings, meter read errors, miscalculation of taxes, or other errors or omissions. If the TDSP determines that your meter has not been delivering accurate meter reads due to meter error or tampering, you will be billed for and required to pay any recalculated charges due to replacement meter readings from the TDSP. A deferred payment plan may not be offered to customers whose underpayment is due to theft of service. For other restated or recalculated charges, you will have the right to pay charges in a deferred payment plan with installments equal to the number of billing months restated or recalculated. Potentia Energy, LLC DBA Potentia Energy Page 3 of 12 Version RT010412B

4 BUDGET BILLING Qualified customers who are enrolled in Potentia Energy s budget billing program will pay an equal bill amount each month, based on their estimated annual usage. To qualify for the program, you must either be receiving the LITE-UP discount or be enrolled and not currently be delinquent in payments to Potentia Energy. If you are enrolled in the program and later become delinquent in payments, Potentia reserves the right to cancel your participation in the program without prior notice and resume normal collection activity, and may take further action consistent with our failure to make payment/delinquent policy described later in this document. The monthly budget bill amount is calculated by multiplying your average cents per kwh rate by the estimated annual consumption at your service address, and dividing by 12. Taxes and non-recurring charges assessed against your account will be listed and payable each month, in addition to the budget bill amount. Potentia Energy will provide you with a true up of the amount actually owed on your account against what you have paid at least annually, and reserves the right to change the monthly budget bill amount if your consumption exceeds the estimated amount by more than 20%. To cancel your participation in the budget billing program at any time, please contact us. If you or Potentia cancel your participation in the program or your service is terminated while you are on the program, you will be responsible for paying the true-up amount on the account by the due date as indicated on the bill to avoid service suspension or having your account sent to a collections agency and reported to the credit bureaus. PAYMENT AND DEFERRED PAYMENT PLANS All bills are due and payable within 16 days of the date of the mailing. You may be charged a fee by a third party provider to make payments using their systems, including cash payment centers. Potentia Energy accepts payment by check and credit card. You can also enroll in our Automatic Bill Pay program. Potentia Energy offers short-term bill payment arrangements to qualified customers such as payment extension beyond the due date and deferred payment plans. A deferred payment plan allows you to pay an outstanding bill in installments that extend beyond the due date of the next bill. Deferred payment plans are also available for customers whose bills become due during an extreme weather emergency as declared by your TDSP; during a state of disaster declared by the governor in the area covered by the declaration, as directed by the PUCT; or to customers who were previously under-billed by $50.00 or more. If the underbilling is $50.00 or more, Potentia Energy will offer a deferred payment plan option for the same length of time as that of the under-billing. A deferred payment plan may not be offered to customers whose underpayment is due to theft of service. If you are not currently on a deferred, budget billing, or average payment plan, Potentia Energy will make a deferred payment plan available, upon request, for a bill that becomes due in July, August, or September to a residential customer that meets the following requirements: 1) customers receiving the LITE-UP discount; 2) customers designated as Critical Care Residential Customers or Chronic Condition Residential Customers; or 3) customers who have expressed an inability to pay unless they have been disconnected during the preceding 12 months, have submitted more than two payments during the preceding 12 months that were found to have insufficient funds available, or have received service from Potentia Energy for less than three months and demonstrate a lack of sufficient credit or a satisfactory payment history with their previous electric service provider. You may choose: (a) a plan that requires an initial payment no greater than 50% of the amount due and the remainder paid over at least five billing cycles a level or (b) an average payment plan. Similarly, Potentia Energy will make a deferred payment plan available upon request for the same types of customers for a bill that becomes due in January or February if, in the prior month, the TDSP notified the PUCT of an extreme weather emergency for the customer s county in the TDSP service area for at least five consecutive days during the month. The requirements set forth in PUC rule regarding Bill Payment and Adjustments rule may be viewed at No additional deposit will be required if you enter into a deferred payment plan under these circumstances. Potentia Energy may apply a switch-hold when the deferred payment plan is established. Any such arrangement will be confirmed in writing. SWITCH HOLDS When you enter into a deferred payment plan, Potentia Energy may impose a switch-hold on your account. Similarly, a switchhold may be applied if you are delinquent when you enter into a level or average payment plan. A switch-hold means that you will not be able to buy electricity from other companies until you pay the total deferred balance. If a switch-hold is put on your Potentia Energy, LLC DBA Potentia Energy Page 4 of 12 Version RT010412B

5 account, it will be removed after your deferred balance is paid and processed. While a switch-hold applies, if you are disconnected for not paying, you will need to pay Potentia Energy to have your electricity turned back on. FAILURE TO MAKE PAYMENT/DELINQUENCY POLICY We encourage you to contact us to secure an arrangement before your account becomes delinquent or is disconnected for nonpayment. Please contact us to discuss eligibility and applicability of payment arrangements. Non-payment of your bill may result in the termination of this Contract, and/or disconnection of your electric service, whichever is applicable, after proper notice. All bills shall be deemed past due and delinquent at the close of business on the day the bill is due. Potentia Energy will provide you with a disconnection notice in the event you do not pay your bill by its due date or make suitable arrangements with us for its payment, and a charge of $10.00 for the disconnection notice will be assessed to your account. You will have ten (10) days from the date of the disconnection notice to pay your account balance. If your account balance is not paid in full by the date indicated on the disconnection notice, your service will be suspended and a charge of $30.00 for the service suspension will be assessed to your account. To restore service without re-applying for service with Potentia Energy, your outstanding charges must be paid within five (5) days of service suspension, and a charge of $30.00 for service restoration will be assessed to your account. Charges for suspension and reconnection of service will be assessed if we must order the transactions, regardless if your service is actually suspended or restored. If your outstanding charges are not paid within 5 days of service suspension, your account may be disconnected or moved out, and a charge of $30.00 will be assessed to your account for disconnection / move out, after non-payment, and Potentia Energy will no longer be your retail electric provider. If this occurs, Potentia Energy reserves the right to refuse service to you or to require you to reapply for service in addition to paying all outstanding amounts owed to Potentia Energy and a deposit, prior to having service re-initiated to your premise. Additionally, if you fail to make timely payments of the amounts due under this Contract, Potentia Energy reserves the right to refer the outstanding balance to an attorney or collection agent for collection. If your account is secured with a deposit, the deposit amount will be credited to your final bill, and you must remit final payment by the due date on the final bill to avoid having your account turned over to a collection agency. Late payments, delinquent or past due balances will result in a penalty equal to 5% of the month s past due amount, less any charges for which you have already been assessed a late fee. Potentia will not charge late fees to customers that receive a low-income discount (see the section Financial and Energy sistance for Low Income Customers ). A $35 non-sufficient funds fee per transaction shall be assessed to your account for any transaction not processed due to non-sufficient funds (NSF), payment stops or chargebacks, or credit availability for any method of payment including checks, bank drafts or credit card transactions. Potentia Energy reserves the right in such instances to require future payments from you to be made by cash. If you participate in our auto-bill-pay program and your payment is dishonored for any reason, Potentia Energy reserves the right to remove you from the auto-billpayment program and you will no longer be eligible for any unpaid benefits, if applicable. If a payment to restore service after non-payment is returned for non-sufficient funds, Potentia Energy has the right to suspend your service without notice. If you fail to make timely payments of the amounts due under this Contract and we refer your outstanding balance to an attorney or collection agent for collection, or if we file a lawsuit, or collect your outstanding balance through probate, bankruptcy, or other judicial proceedings, then you agree to pay reasonable fees and expenses (including attorney fees) that we incur in the collection process. FINANCIAL AND ENERGY ASSISTANCE FOR LOW INCOME CUSTOMERS Residential customers who are in need of financial or energy assistance may qualify for programs sponsored by the Texas Department of Housing and Community Affairs (TDHCA), which can be contacted at info@tdhca.state.tx.us, calling , faxing or writing to TDHCA, P.O. Box 13941, Austin, TX The PUCT also makes funds available for electricity discounts for qualified low income customers during certain months of the year through LITE UP Texas (Low Income Telephone and Electric Utilities Program). For more information regarding LITE UP Texas, contact your TDSP or call toll-free LITE-UP ( ) to determine eligibility or to receive an application. Customers who receive benefits from the Texas Health and Human Services Commission are automatically enrolled in the discount program; you may also self-enroll if you meet the eligibility requirements. Please contact Potentia Energy for more information about this program. CHANGE IN TERMS AND CONDITIONS Potentia Energy will provide you with written notice at least 14 days in advance of any material change in this Terms of Service. Potentia Energy will not change the price or term of a fixed price product at any time during the Initial Term, except as outlined in your EFL. If the price of a fixed term product is changed in accordance with the provisions as stated on your EFL, each bill issued for the remainder of the Initial Term will show the changes on one or more separate line items or will include a conspicuous Potentia Energy, LLC DBA Potentia Energy Page 5 of 12 Version RT010412B

6 notice stating that the amount billed includes price changes allowed by rules of the PUCT (which may be viewed at the following website: Potentia Energy is not required to notify you of changes that benefit you. CANCELLATION OR TERMINATION OF YOUR ELECTRIC SERVICE Potentia can authorize the disconnection of your service after proper notice for any of the following reasons: (1) failure to pay any outstanding bona fide debt for electric service owed to Potentia or to make deferred payment arrangements by the date of disconnection stated on the disconnection notice; (2) failure to comply with the terms of a deferred payment agreement made with the REP; (3) violation of Potentia s terms and conditions on using service in a manner that interferes with the service of others or the operation of nonstandard equipment, if a reasonable attempt has been made to notify you and you were provided with a reasonable opportunity to remedy the situation; (4) failure to pay a deposit as required by PUCT Subst. R (available at: [ or (5) failure of the guarantor to pay the amount guaranteed, when Potentia has a written agreement, signed by the guarantor, which allows for disconnection of the guarantor s service. If you take actions that cancel or terminate your electric service with Potentia Energy under the TOS prior to the end of the Initial Term specified in your Contract, you may be responsible to pay an Early Termination Fee (ETF), as specified in your EFL. After you begin receiving electricity service from Potentia, if you move from your Service Address to a new premises, you may cancel the Contract without penalty by providing us with notice of your intent to cancel or terminate the TOS and your forwarding address, along with reasonable evidence that you will no longer occupy the premise in the contract, at least 30 days in advance of the requested termination date. Potentia Energy will use good faith efforts to cancel or terminate your service with the TDSP on the requested termination date; however, we cannot be responsible if the TDSP is unable to affect your requested termination date. You will be responsible for all charges incurred through the date the TSDP can affect your termination. If you cancel or terminate the Terms of Service, Potentia Energy s obligations will conclude after the meter read date when we are no longer designated as your REP or when your electric service is disconnected by the TDSP. If your termination requires an off-cycle meter read or otherwise incurs charges from the TDSP, you will be responsible for payment of those charges. Your obligations under the TOS will end when the outstanding balance on your account is paid in full. Cancellation or termination of the TOS does not excuse the obligation of Customer to pay outstanding balances and/or ETF that may apply. DISCONNECTION WITHOUT NOTICE Potentia Energy or your TDSP may disconnect your service without notice if a known dangerous conditions exists atfor as long as the premises condition exists; where service is connected without authority by a person who has not made application for service; where service is reconnected without authority after disconnection for nonpayment; where there has been tampering with the meter or other service provider equipment of the transmission and distribution utility, municipally owned utility, or electric cooperative; or where there is evidence of theft of service. ESTABLISHMENT OF SATISFACTORY CREDIT You may qualify to receive service from Potentia Energy by demonstrating satisfactory credit consistent with PUCT Subst. R (which may be viewed at the following website: through one of the following methods: a) Provide a letter from your current or most recent Retail Electric Provider which verifies that you have not been delinquent paying an electric bill more than once during the past 12 months or had service terminated or disconnected for non-payment within the last 12 months, or b) Demonstrate a satisfactory credit rating, per Potentia Energy s credit policy. Potentia Energy reserves the right to utilize credit reporting agencies to document your credit/payment history. Customers/applicants unable to demonstrate satisfactory credit may be required to pay a deposit. Potentia Energy may deny electric service to customers/applicants who refuse or are unable to comply with the credit and deposit requirements. A customer/applicant who previously has been a customer of Potentia Energy, and whose service was terminated or disconnected for non-payment of their electric bill or theft of service (including fraud, misrepresentation, or meter tampering) or who left a bona fide debt to Potentia Energy, shall be required, before service is reinstated, to pay all amounts due to Potentia Energy, or execute a deferred payment agreement, if eligible, along with any required deposit and fees, as appropriate, and reestablish credit. DEPOSITS Potentia Energy, LLC DBA Potentia Energy Page 6 of 12 Version RT010412B

7 Customers unable to demonstrate satisfactory credit may be required to post a deposit or other acceptable collateral to receive service. Estimated billings for an initial deposit from an applicant may be based upon a reasonable estimate of average usage for the customer class or may be based on the customer s estimation of anticipated usage or the premise s actual historical usage; the amount of deposit shall not exceed the greater of either the sum of your estimated billings for the next two months or onefifth of your estimated annual billing. In the instance that a deposit is required for service with Potentia Energy, customers shall receive written notice informing of how a customer may be refunded a deposit, and Potentia Energy s deposit policy. Customers who qualify for a rate reduction program may pay the deposit in two equal installments if the required deposit is over fifty dollars ($50) as provided by PUCT Substantive Rule , (which may be viewed at the following website: Applicants 65 years of age and older who are not currently delinquent in paying their electric service account and applicants who are a victim of domestic family violence may qualify to have the deposit waived; please call us for additional information. Potentia Energy shall not require an initial deposit from an existing customer unless that customer, during the previous 12 months of service, has been late paying a bill more than once or has had service terminated or disconnected for nonpayment. Additional deposits may be required from an existing customer if the average of their actual billings for the last 12 months is at least twice the amount of the original average of the estimated annual billings; and a termination or disconnection notice has been issued or the account s electric service has been terminated or disconnected within the previous 12 months. Estimated annual billings for an initial or additional deposit from an existing customer shall be based upon actual historical usage; to the extent it is available. If an initial or additional deposit is required for an existing customer, Potentia Energy may require the customer to pay the deposit within ten days after issuance of a written notice that requests such deposit, and a disconnection notice may be combined with or issued concurrently with the request for deposit. Service may be terminated or disconnected, whichever is applicable, if the additional deposit is not paid within this ten day period if a written termination or disconnection notice has been issued to the customer. INTEREST ON AND REFUND OF DEPOSITS You will accrue interest on your deposit, if held more than 30 days, at an annual rate approved by the PUCT. Your deposit will be refunded when you have paid your bill for electric service for 12 consecutive months without having more than one (1) late payment. When your account with Potentia Energy is closed, your deposit and accrued interest, less any outstanding balance owed for electric service, will be refunded to you. Payment of accrued interest will be made once a year as a credit to your account. FORCE MAJEURE Potentia Energy will make commercially reasonable efforts to supply electricity but does not guarantee a continuous supply of electricity. Customer acknowledges that certain causes and events outside of Potentia Energy s control (Force Majeure events) may result in interruptions in service and Potentia Energy shall not be liable for any such interruptions. Potentia Energy does not generate electricity nor does it transmit or distribute electricity. Therefore, Customer agrees that Potentia Energy shall not be liable for damages caused by electricity, TDSP, Force Majeure events, including acts of God, acts of any governmental authority, acts of terrorists or enemies of the state, accidents, strikes or lock outs, labor troubles, required maintenance work, inability to access the TDSP system, non-performance by the TDSP, or any cause beyond Potentia Energy s control. If Customer provides notice that it is unable to receive service on the start date from Potentia due to a Force Majeure event and Customer has not previously received service at that ESI-ID then Potentia shall either: (a) delay the start date or (b) following the first month s delay, terminate this Contract without penalty. In the event that service is delayed to an ESI-ID and this Contract is not terminated pursuant to the provisions herein, the Contract Term shall be extended on a day-for-day basis for each day of the Force Majeure event for all affected ESI-IDs. ITEMIZATION OF NON-RECURRING CHARGES FOR SERVICE: Charge Name CNP ONCOR TNMP AEP- CPL AEP- WTU SHARYLAND Standard Switch: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Standard Move in: Self-Contained Meter (existing) Premise with/planned to have activated remote connect capability $6.29 $3.20 $54.00 $16.00 $11.00 $21.00 Potentia Energy, LLC DBA Potentia Energy Page 7 of 12 Version RT010412B

8 Self-Contained Meter (existing) Poly $16.00 N/A N/A N/A N/A N/A Phase & >200 Amp Self-Contained Meter (new) $ $11.35 $60.00 $47.00 $51.00 $21.00 CT/Other Meter (existing) $ $57.65 $ $ $ $36.00 CT/Other Meter (new) $ $75.95 $ $ $36.00 Priority Move in: Self-Contained Meter (existing) Premise with/planned to have activated remote connect capability $14.14 $10.35 $79.00 $26.00 $19.00 $51.00 Self-Contained Meter (existing) Poly $36.00 N/A N/A N/A N/A N/A Phase & >200 Amp CT/Other Meter (existing) $ $ $ $ $ $66.00 Out-of-cycle meter read charges: Meter Reading found to be in error $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Meter Reading found accurate Non $1.96 $1.90 $27.00 $8.00 $6.00 $7.00 IDR Meter Reading found accurate - IDR $5.00 $1.90 $27.00 $12.00 $10.00 $7.00 Out-of-cycle Meter Read (Self- Selected Switch) Non IDR Out-of-cycle Meter Read (Self- Selected Switch) - IDR Out-of-cycle Meter Read (Standard Switch) Out-of-cycle Meter Read (Switch for DOA) Out-of-Cycle Estimate (Mass Transition) $1.57 $1.90 $27.00 $7.00 $4.00 $7.00 $5.00 $1.90 $27.00 $11.00 $9.00 $7.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $5.00 $1.90 $23.00 $18.00 $18.00 $7.00 $0.00 $0.00 $0.00 $4.00 $0.00 $0.00 Disconnect for non pay (DNP) at meter: Standard Disconnect: Premise $0.00 $2.70 $28.00 $9.00 $5.00 $21.00 with/planned to have activated remote connect capability Standard Disconnect: Poly Phase & $9.00 N/A N/A N/A N/A N/A >200 Amp Same Day Disconnect N/A N/A $53.00 N/A $57.00 $21.00 Holiday Disconnect N/A N/A N/A N/A N/A N/A Disconnect for non pay at Premium Location: Standard Disconnect $61.00 $35.55 $91.00 $56.00 $58.00 $36.00 Same Day Disconnect N/A N/A $ N/A $ $36.00 Holiday Disconnect N/A N/A N/A N/A N/A N/A Reconnect after DNP at meter: Premise with/planned to have activated remote connect capability Standard Reconnect $0.00 $3.10 $29.00 $9.00 $3.00 $21.00 Same Day Reconnect $0.00 $5.30 $54.00 $20.00 $14.00 $21.00 Weekend Reconnect $0.00 $25.00 $ $24.00 $18.00 $51.00 Holiday Reconnect $0.00 $32.45 $ $29.00 $21.00 $51.00 Potentia Energy, LLC DBA Potentia Energy Page 8 of 12 Version RT010412B

9 Reconnect after DNP at meter: Poly Phase & >200 amp Standard Reconnect $9.00 N/A N/A N/A N/A N/A Same Day Reconnect $34.00 N/A N/A N/A N/A N/A Weekend Reconnect $34.00 N/A N/A N/A N/A N/A Holiday Reconnect $ N/A N/A N/A N/A N/A Reconnect for non pay at Premium Location: Standard Reconnect $61.00 $40.40 $94.00 $56.00 $58.00 $21.00 Same Day Reconnect $ $65.60 $94.00 $ $ $21.00 Weekend Reconnect $ $ $ $ $ $51.00 Holiday Reconnect $ $ $ $ $ $51.00 Service Call Charge: During Business Days $50.00 $10.35 $65.00 $70.00 $72.00 $61.00 Business Days non-business Hours $50.00 $25.50 $ $ $ $61.00 Weekend $50.00 $ $ $ $ $61.00 Holiday $50.00 $ $ $ $ $61.00 Meter Test Charge: Self-Contained Meter Company Owned: First Test Within the Previous Four $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Years Found Outside of the Accuracy $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Standards Single Phase $49.00 $33.70 $ $ $ $18.00 Three Phase $49.00 $77.80 $ $ $ $18.00 Meter Test Charge: C/T Other Meter Company Owned: First Test Within the Previous Four $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Years Found Outside of the Accuracy $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Standards Single Phase $82.00 $87.75 $ $ $ $30.00 Three Phase $82.00 $ $ $ $ $30.00 Meter Test Charge: Competitive Meter $82.00 $ $ $ $ $0.00 Non-Standard Meter Installation Charges: OMR Equipment Installation $72.00 $ $ $41.00 $44.00 $0.00 AMR Equipment Installation - Single- Phase Self Contained AMR Equipment Installation - Three- Phase Self Contained AMR Equipment Installation - Single- Phase Instrumented Rated $ $ $ $ $0.00 $ $ $ $ $0.00 $ $ $ $ $0.00 AMR Equipment Installation - Three- $ $ $ $ $0.00 Phase Instrumented Rated IDR Equipment Installation $ $ $ $0.00 Customer Requested Clearance: Potentia Energy, LLC DBA Potentia Energy Page 9 of 12 Version RT010412B

10 With Three Business Days notice (residential) With Three Business Days notice (nonresidential) With less than three Business Days notice Outdoor Lighting Charges: Potentia Energy Security Lighting Repair Security Light Removal Street Light Removal Tampering Charges: $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Tampering Broken Meter Seal $31.00 $19.20 $27.00 $62.00 $65.00 $61.00 Denial of Access: Inaccessible Meter Charge Distributed Renewable Generation Metering Holiday Move-In Charge: $55.00 $91.85 $58.00 $ $ $61.00 and N/A N/A N/A N/A N/A Self Contained Meter N/A $53.55 N/A N/A N/A N/A Other Connections N/A $ N/A N/A N/A N/A Out-of-Cycle Meter Reading Charge: Outside Regular Hours - Non-Holiday N/A $5.15 N/A N/A N/A N/A Outside Regular Hours Holiday N/A $44.55 N/A N/A N/A N/A Priority Move-In (New Premise) Charge outside normal business hours: Self Contained Meter N/A $ N/A N/A N/A N/A Other Connections N/A N/A N/A N/A N/A ITEMIZATION OF NON-RECURRING CHARGES FOR SERVICE (POTENTIA): Charge Name: Price Charge Name: Price Disconnection Notice: $10.00 Late Payment Fee: 5% of the month s past due amount (less Service Suspension/: $30.00 any amount previously late) Service Restoration: $30.00 Service Disconnection / Application Fee: Free Move Out after Non Payment: $30.00 Telephonic Payment Fee: A $7.95 fee per transaction may apply if you choose to process your bill by telephone with the assistance of a customer care agent. To avoid this fee, you can enroll in our Auto Bill Payment program or send your payment in the mail. Online Payment Fee: A $4.95 processing fee may apply if you choose to pay your bill online on Potentia s website, Insufficient Funds Fee: $35.00 each time a payment, by any method or medium of payment, you make to us is returned for insufficient funds (NSF). Changed Start Date Fee: $10 per each date change Changed Move-Out Date Fee: $10 per each date change Potentia Energy, LLC DBA Potentia Energy Page 10 of 12 Version RT010412B

11 Zero Usage Fee: Legal Fees: Enrollment Cancellation Fee: Customer Requested Inadvertent Gain Transaction: Potentia Energy $5.00 per month per meter If your account is past due and must be submitted to an outside collection firm or to litigation, you will be assessed a charge of 25-40% of the amount due. $30 if you cancel your move in prior to the completion of the enrollment in which Potentia would have become the REP of Record. $50 if you request an inadvertent gain transaction to be submitted on your behalf (you may also be assessed for any energy used, TDSP and other applicable charges). CHANGE IN LAW OR REGULATION In the event there is a change (including a change in interpretation) in law, regulation, rule, ordinance, order, directive, filed tariff, decision, writ, judgment or decree by a governmental authority (including ERCOT), including, without limitation, changes in TDSP tariffs and ERCOT protocols, including those changes affecting fees, costs, or charges imposed by ERCOT or the PUCT, changes in market rules, changes in load profiles or changes in nodal and zonal definitions, and such change results in Potentia Energy incurring additional costs and expenses in providing your electricity service, these additional costs and expenses shall be your responsibility and they will be assessed in your monthly bill as a pass-through charge. BANKRUPTCY This Contract and the transactions described herein constitute a forward contract as defined in section 101(25) of title 11 of the United States Code (the Bankruptcy Code ). The Parties agree that Potentia Energy is a forward contract merchant as defined in section 101(26) of the Bankruptcy Code, that the termination rights of the Parties will constitute contractual rights to liquidate transactions that will not be abridged by any filing of any petition as set forth in section 556 of the Bankruptcy Code, that any payment related hereto or made hereunder will constitute a settlement payment as defined in 101(51A)of the Bankruptcy Code, and that the exceptions to the applicability of the Bankruptcy Code as set forth in sections 362(b)(6), 546(e), 548(d), 553(a)(2)(B)(ii), 553(a)(3)(C) and 553(b)(1) shall apply. Each Party further agrees that, for purposes of this Contract, the other Party is not a utility as such term is used in Section 366 of the U.S. Bankruptcy Code, and each Party waives and agrees not to assert the applicability of the provisions of such Section 366 in any bankruptcy proceeding wherein such Party is a debtor. The Parties further agree that all Electricity delivered hereunder constitutes a good under Section 503(b)(9) of the U.S. Bankruptcy Code. LIMITATION OF LIABILITY FOR BREACH OR DEFAULT ARISING FROM ANY PROVISION FOR WHICH AN EXPRESS REMEDY IS PROVIDED HEREIN, SUCH REMEDY OR MEASURES OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. IF NEITHER THE REMEDY NOR MEASURE OF DAMAGES IS EXPRESSLY PROVIDED HEREIN, LIABILITY SHALL BE LIMITED TO DIRECT, ACTUAL DAMAGES ONLY, SUCH DIRECT, ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY, AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. EXCEPT AS MAY BE INCLUDED IN AN EXPRESS REMEDY PROVIDED FOR HEREIN, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT, INCLUDING LOST PROFITS OR BUSINESS INTERRUPTION DAMAGES, WHETHER BASED ON STATUTE, CONTRACT, TORT, UNDER ANY INDEMNITY OR OTHERWISE, WITHOUT REGARD TO CAUSE OR THE NEGLIGENCE OF ANY PARTY, WHETHER SOLE, JOINT, ACTIVE, OR PASSIVE, AND EACH PARTY HEREBY RELEASES THE OTHER PARTY FROM ANY SUCH LIABILITY, EVEN IF DURING THE TERM HEREOF IT ADVISES THE OTHER OF THE POSSIBILITY OF SUCH DAMAGES. TO THE EXTENT ANY DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, THE PARTIES ACKNOWLEDGE THAT THE DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE, OR OTHERWISE OBTAINING AN ADEQUATE REMEDY INCONVENIENT AND THE DAMAGES CALCULATED HEREUNDER CONSTITUTE A REASONABLE APPROXIMATION OF THE HARM OR LOSS. REPRESENTATIONS AND WARRANTIES NEITHER PARTY GIVES NOR RECEIVES ANY WARRANTY REGARDING THE SALE, PURCHASE OR DELIVERY OF ELECTRICITY, WHETHER EXPRESS, IMPLIED, OR STATUTORY, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT. POTENTIA ENERGY DISCLAIMS ANY AND ALL IMPLIED WARRANTIES AND SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OR MERCHANTABILITY OR FITNESS OF ELECTRICITY FOR A PARTICULAR PURPOSE OR USE. THE OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT ARE OBLIGATIONS OF THE PARTIES ONLY, AND NO RECOURSE SHALL BE AVAILABLE AGAINST ANY EMPLOYEE, OFFICER, DIRECTOR, SHAREHOLDER, MEMBER, PARTNER, OR AFFILIATE OF A PARTY UNLESS SPECIFICALLY PROVIDED FOR IN A SEPARATE AGREEMENT. ASSIGNMENT Potentia Energy, LLC DBA Potentia Energy Page 11 of 12 Version RT010412B

12 You may not assign this Contract, in whole or part, or any of your rights or obligations hereunder, without prior consent from Potentia Energy; which shall be executed in writing by Potentia Energy, Customer, and any party to whom the Contract is being assigned. Nothing in this Contract shall create, or be construed as creating; any express or implied rights in any person or entity other than Potentia Energy and Customer. Customer hereby acknowledges and consents that Potentia Energy may freely pledge, assign, or subrogate all of its rights hereunder as Potentia Energy may deem necessary. In the event any other provision of this Contract shall be deemed to prohibit or otherwise restrict Potentia Energy s right to assign, subrogate or pledge its rights hereunder, this provision shall control. NOTICES Unless otherwise specified herein, any notices required or permitted under this Contract, must be in writing and addressed to the party at the address listed in the TOS or Authorization. Notice by receipt confirmed facsimile, or hand delivery shall be effective on the Business Day actually received. Notice by overnight United States mail or courier shall be effective on the next Business Day after it was sent. Either Party may change any address listed in the TOS or Authorization by providing written notice of same in accordance herewith. PUCT RULES The complete text of the PUCT Customer Protection Rules referenced herein can be found at DISPUTE RESOLUTION Please contact us if you have specific comments, questions, complaints, or if you feel your bill is incorrect. You may call a Potentia Energy customer care representative at (877) or us at contact@potentiaenergy.com. If you are not satisfied with our attempt to resolve the problem, you may file a complaint with our company and request a supervisory review. If we fail to resolve your dispute it is your right to file a complaint with the PUCT. You may contact the PUCT at: Public Utility Commission of Texas, Customer Protection Division P. O. Box 13326, Austin, TX ; telephone (888) ; customer@puc.state.tx.us. Your YRAC document contains more information on this process. ENTIRE AGREEMENT The Terms of Service (TOS), Your Rights as a Customer (YRAC), Electricity Facts Label (EFL), and Letter of Authorization Form (Authorization), together constitute the Contract between you and Potentia Energy, and therefore the entire agreement between the Parties. This Contract supersedes all previous discussions, communications, writings, and agreements related to the service provided pursuant to the Contract, and except to the extent otherwise provided for herein, the Contract may not be amended, modified or supplemented except in a writing signed by both Parties. The Terms of Service are subject to all applicable laws and regulations of the United States and the State of Texas, and the venue for any legal proceedings other than PUCT proceedings shall be proper in Harris County; and any provision which is deemed contrary to any such applicable laws and regulations shall be deemed substituted or modified so as to comply with such law and regulations for the purposes of this Contract. Nothing in this Contract shall create, or be construed as creating and express or implied rights in any person or entity other than you and us. This Contract and the rights and duties of the parties hereunder shall be governed and construed, enforced and performed in accordance with the laws of the State of Texas, without regard to principles of conflicts of law. Each party waives its respective right to any jury trial with respect to any litigation arising under or in connection with this agreement. This section shall survive the expiration or termination of this agreement for any reason. THIS CONTRACT AND THE RIGHTS AND DUTIES OF THE PARTIES HEREUNDER SHALL BE GOVERNED AND CONSTRUED, ENFORCED AND PERFORMED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH PARTY WAIVES ITS RESPECTIVE RIGHT TO ANY JURY TRIAL WITH RESPECT TO ANY LITIGATION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT. THIS SECTION SHALL SURVIVE THE EXPIRATION OR TERMINATION OF THIS AGREEMENT FOR ANY REASON. Potentia Energy, LLC DBA Potentia Energy Page 12 of 12 Version RT010412B

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