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TERMS & Conditions (Scroll to bottom to accept) Maryland Residential and Small Commercial Customer Disclosure Statement and Terms of Service This is an agreement for natural gas service between Spark Energy Gas, LP (Spark Energy) and you, for the service address or addresses set forth in your Welcome Letter or Natural Gas Service Agreement. Together, this Disclosure Statement, including the terms of service set forth herein, and your Welcome Letter or Natural Gas Service Agreement (“NGSA”) collectively describe your agreement with respect to your purchase of natural gas service from Spark Energy (Agreement). You will be bound by all the provisions of the Agreement, as they may be amended from time to time. Spark Energy is licensed by the Maryland Public Service Commission to offer and supply natural gas services in Maryland. We set the supply prices and charges that you pay. Your Local Distribution Utility will deliver the natural gas to you. The Public Service Commission regulates distribution prices and services. The Federal Energy Regulatory Commission regulates transmission prices and services. Definitions · Small Commercial Customer – A nonresidential customer that has annual usage of less than 20,000 therms during the most recent consecutive 12 month period. · Local Distribution Utility (LDU) – A gas or electric corporation owning, operating or managing electric or gas facilities for the purpose of distributing gas or electricity to end users. · Commodity Charge – Charge for the supply of natural gas. · Public Service Commission (PSC) – the Maryland Public Service Commission. · Transmission Charge – Charge for moving natural gas from a supply point to the distribution system of a natural gas distribution company. Right of Rescission - Residential customers have the right to rescind this Agreement within three (3) business days after receiving this disclosure statement. Terms of Service 1. Basic Service Prices. Your rate plan will be as specified in your Welcome Letter or Natural Gas Service Agreement. Fixed Rate Plan: You will pay the fixed rate per therm as specified in your Welcome Letter or Natural Gas Service Agreement for the length of your Term. You may also pay a monthly administrative fee, the amount of which, if applicable, is disclosed in your Welcome Letter or Natural Gas Service Agreement. Immediate Savings Plan: For the first two months of your plan, you will receive a specified percentage savings (shown in your Welcome Letter) off of the LDU’s base energy rate for natural gas supply. Thereafter, you will receive Spark Energy’s standard variable rate which will vary according to market conditions. You may also pay a monthly administrative fee, the amount of which, if applicable, is disclosed in your Welcome Letter or Natural Gas Service Agreement. Variable Rate Plan: A month-to-month plan where your rate may vary according to market conditions. The rate you pay Spark Energy will include the Commodity Charge and Transmission Charge. Your price does not include applicable Maryland sales tax, use tax, local tax or gross receipt taxes imposed by Maryland State Tax Law. You are responsible for any and all taxes (whether passed through to you on LDU’s bill as a separate line item or as part of the price of natural gas, as required by law, rule or regulation) and LDU charges for delivery and distribution services. Except as otherwise provided in this Agreement or as required by law, all taxes of whatsoever kind, nature and description, due and payable with respect to your performance of your obligations under this Agreement, will be paid by you. If you are a tax-exempt entity, you must provide Spark Energy with the necessary certificates and other documentation to qualify for such status. 2. Billing. Your LDU will continue to issue a monthly bill and the bill will include both your Transmission Charge and your Commodity Charge, and any other charges incurred in accordance with this Agreement. Bills will continue to be based on actual or estimated meter readings. Unless otherwise provided herein, your payment terms and late payment penalties will be governed by the terms of the LDU’s tariff. Spark Energy does not pay or arrange for the payment of any outstanding debts owed by you to the LDU or a previous Energy Service Company (“ESCO”). 3. Length of Agreement (Term). The Term of this Agreement is shown on your Welcome Letter. With the exception of a new meter installation or special meter reading date, you will buy your natural gas service for the service addresses set forth in your Welcome Letter or Natural Gas Service Agreement from Spark Energy on the next regularly scheduled meter reading date available and will continue to do so for the entire Term. This Agreement shall remain in effect until you notify Spark Energy in writing or by phone of your intent to cancel at least 30 days prior to your requested end date and until such time as the LDU completes the termination in accordance with its rules. 4. Penalties, Fees and Exceptions. You may be assessed an early termination fee if you cancel or terminate this Agreement prior to the end of the Term. If an early termination fee is applicable, the amount of the early termination fee will be specified in your Welcome Letter or Natural Gas Service Agreement. SPARK ENERGY, L.P. RESIDENTIAL AND SMALL COMMERCIAL TERMS OF SERVICE Page 2 of 3 SEG_MD_BGE_RESI_SMCOMM_TOS_20110622 Notwithstanding the foregoing, you may cancel this Agreement without penalty if you move to another location and provide a forwarding address and, if required, reasonable evidence that you no longer occupy the service address. You will be responsible for amounts due, up to the switch date, of all outstanding charges incurred prior to cancellation by you. If you default in the prompt payment of amounts due under this Agreement, you will be liable for any and all fees or charges, including reasonable attorney fees and court costs, incurred in connection with the collection of delinquent balances. Spark 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. 5. Cancellation Provisions. You may cancel this Agreement without any penalty any time before midnight of the third business day after you receive this disclosure statement. After such third business day, you may cancel this Agreement at any time by calling Spark Energy, but you will be required to pay the early termination fee described in Section 4 above, if applicable. If you request to cancel this Agreement, the cancellation will not take effect until the next actual meter read date following the date Spark Energy notifies your LDU. You will be responsible for all payments due hereunder until the cancellation of natural gas service is completed. If for any reason Spark Energy is no longer able to economically continue this Agreement, Spark Energy may terminate this Agreement at any time with at least fifteen (15) calendar days notice to you after complying with applicable regulations. This Agreement may be cancelled at the sole discretion of Spark Energy if you fail to meet any of the terms and conditions of this Agreement or if any of the information you have provided to Spark Energy is or becomes untrue. If this Agreement is canceled, expires, or otherwise terminated, you will receive uninterrupted service from the LDU until you designate another provider of natural gas service or service is shut off by the LDU. Only the LDU may shut off your natural gas service. 6. Agreement Expiration/Change in Terms. If you have a fixed term agreement with us and it is approaching the expiration date, or if we propose to change our terms of service, we will send you advanced notice 45 days before either the expiration date or the effective date of the changes. We will explain your options in this advanced notice, including your right to cancel this Agreement without penalty upon expiration of your fixed rate. Spark Energy will provide written notice to you, free of charge, and a copy of any material change to this Agreement prior to the date any such change becomes effective. Upon receipt of written notice of a material change, you may terminate this Agreement without penalty prior to the date such change becomes effective. After notifying you of an approaching expiration, we will follow your instructions. If you do not respond to the notice, the price for natural gas service automatically continues at a Variable market rate. 7. Information Release and Authorization. You designate Spark Energy as your authorized agent and hereby authorize Spark Energy to obtain historical usage, billing and payment history, and credit history. Acceptance of this Agreement is an authorization for the release of the information. You also hereby authorize Spark Energy to arrange delivery and other services for the purpose of serving your account. This authorization will remain in effect during the Term and any renewal term of this Agreement. You may rescind your authorization at any time by providing written notice thereof to Spark Energy. 8. Dispute Procedures. Contact us by any of the means provided at the bottom of these Terms and Conditions with any questions concerning our terms of service or your bill. You may contact the Public Service Commission to file a complaint if you are not satisfied after discussing your questions or concerns with us. 9. Warranties. SPARK ENERGY MAKES NO REPRESENTATIONS OR WARRANTIES, EITHER EXPRESSED OR IMPLIED, WITH REGARD TO THE PROVISION OF NATURAL GAS SERVICE AND DISCLAIMS ANY AND ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR ARISING OUT OF ANY COURSE OF DEALING OR USAGE OF TRADE. 10. Limitation of Liability. You will be deemed to be in exclusive control (and responsible for any damages or injury caused thereby) of the natural gas after receipt at the delivery point or points. SPARK ENERGY WILL NOT BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES (INCLUDING LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES), WHETHER BY STATUTE, IN CONTRACT OR TORT, EVEN IF THE RESULT OF NEGLIGENCE (WHETHER SOLE, JOINT, CONCURRENT, ACTIVE OR PASSIVE). ALL OTHER LIABILITY WILL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY, AND SUCH DIRECT ACTUAL DAMAGES WILL BE THE SOLE AND EXCLUSIVE REMEDY. YOU HEREBY WAIVE ALL OTHER REMEDIES AT LAW OR IN EQUITY. THERE ARE NO THIRD PARTY BENEFICIARIES TO THIS AGREEMENT. To the extent any damages required to be paid hereunder are liquidated, the parties acknowledge that the damages are not intended and shall not be construed as a penalty, such damages are difficult or impossible to determine, that otherwise obtaining an adequate remedy is inconvenient or impossible, and that the liquidated damages constitute a reasonable approximation of the harm or loss. 11. Miscellaneous. (a) The services provided by Spark Energy are governed by the terms and conditions of this document and the LDU’s tariff. In the event of non-payment of any charges owed to Spark Energy, you may be subject to termination of natural gas service and the suspension of distribution service under procedures approved by the Public Service Commission. You may obtain additional information by contacting Spark Energy or the LDU by the means provided at the bottom of these Terms of Service. (b) If Spark Energy is rendered unable to perform, in whole or in part, by a Force Majeure event, its performance under this SPARK ENERGY, L.P. RESIDENTIAL AND SMALL COMMERCIAL TERMS OF SERVICE Page 3 of 3 SEG_MD_BGE_RESI_SMCOMM_TOS_20110622 Agreement will be excused for the duration of such event. “Force Majeure” means any act or event that is beyond the reasonable control of Spark Energy that adversely affects, interrupts, or precludes its performance. In addition, acts of other parties, including without limitation, wholesale suppliers, aggregators, other ESCOs, qualified scheduling entities, LDUs, any governmental authority, and the respective employees and agents of such parties, will also be deemed to be events of Force Majeure. (c) Energy delivery shall continue to be provided by your LDU. Your natural gas service will be provided in accordance with your existing connection requirements unless you request a change by the LDU and pay for the cost of that change. You may not resell or use any natural gas provided under this Agreement as an auxiliary or supplement to any other source of power. The supply of natural gas under this Agreement will be measured at the delivery point by the LDU providing the delivery service in accordance with the terms of the applicable tariff for natural gas service. Spark Energy and you will be bound by the measurement from the meters owned, installed, maintained and read by the LDU. (d) This Agreement will be governed by, interpreted, construed and enforced in accordance with the laws of the State of Maryland, without regard to principles of conflicts of laws. (e) A wet or faxed signature on a Natural Gas Service Agreement is an agreement to initiate service and begin enrollment with Spark Energy. These Terms of Service, along with your Welcome Letter or Natural Gas Service Agreement, constitute the entire agreement between you and Spark Energy relating to the subject matter hereof and supersede any other agreements, written or oral, between you and Spark Energy concerning the subject matter of the Agreement. (f) You may not assign this Agreement or your obligations under this Agreement without Spark Energy’s prior written consent. Spark Energy may assign this Agreement, together with all rights and obligations hereunder, to (i) Spark Energy’s natural gas supplier, or such supplier’s designee, (ii) an affiliate of Spark Energy or to any other person succeeding to all or substantially all of Spark Energy’s assets, or (iii) in connection with any financing or other financial arrangement. (g) Any failure by Spark Energy to enforce any term or condition of your natural gas service or otherwise exercise any right it may have under this Agreement will not be deemed a waiver of any rights to thereafter enforce any or all of the terms or conditions of your service or to exercise rights under this Agreement. (h) Should any provision of this Agreement for any reason be declared invalid or unenforceable by final and applicable order by a court or any regulatory body having jurisdiction, such decisions shall not affect the validity of the remaining portions, and the remaining portions shall remain in effect as if this Agreement had been agreed to without the invalid portion. If any provision of this Agreement is declared invalid, the remainder of this Agreement will be construed so as to give effect to its original intent and effect as near as possible. (i) The provisions of this Agreement concerning payment, limitation of liability, and waivers will survive the termination or expiration of this Agreement. 12. Contact Information. In the event of an after-hours emergency, you can contact Spark Energy to hear a recorded message containing the emergency contact numbers for your LDU. Energy Services Company: Spark Energy Gas, LP 2105 CityWest Boulevard, Suite 100 Houston, TX 77042 1-800-411-4389 www.sparkenergy.com Hours of Operation: Monday through Friday (except holidays), 8:00 a.m. to 8:00 p.m., and Saturday, 10:00 a.m. to 5:00 p.m. Eastern Standard Time Local Distribution Utility Baltimore Gas & Electric Company 750 E. Pratt St. Baltimore, MD 21202 1-800-685-0123 www.bge.com In the case of a gas emergency, call: 1-800-685-0123 Public Service Commission: Maryland Public Service Commission 16th Floor 6 St. Paul St. Baltimore, MD 21202 www.psc.state.md.us
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