RESIDENTIAL AND COMMERCIAL POST-PAID TERMS OF SERVICE

Alliance Power Company, LLC (REP No. 10074)
Texas Residential and Commercial Customers

This document explains the terms and conditions of your agreement (the “Agreement”) to purchase electricity from Alliance Power Company, LLC (“Alliance Power”). If you would like to receive this information in Spanish, please call us at 940-692-8760. Usted puede obtener el mismo documento impresso detallando los Terminos de Servicio en espanol comunicandose con nosotros al 940-692-8760. Please keep this Agreement for your future reference.

How Service Is Started. Before Alliance Power can provide you with electricity service, it must receive your signed and dated contract. Customer requesting new service should receive service within 3 to 5 business days, whereas customers currently receiving service from another REP (i.e. “Retail Electric Provider”), will take a minimum of 14 business days. Alliance Power does not charge a switch or enrollment fee. However, Alliance Power will bill you for any charges to implement your electricity service imposed by your TDSP which may include, but are not limited to, a service connection fee, reconnection fee, meter test fee, an out-of-cycle or similar special meter read fee or priority fees if any of these services are performed on an expedited basis.

No Deposit Required. No deposit is required.

Term Of This Agreement And Your Option To Renew This Agreement. When you initiate receiving electric service with Alliance Power you are agreeing to continue receiving electricity from Alliance Power for contract term (“Initial Term”). At the end of such term you have the right, at your option, to renew the contract. You can exercise your right to renew your contract simply by paying your monthly Invoice for the next month. If you renew the contract, it will be for another contract term (“Renewal Term”) with a new rate. If you choose to continue renewing your contract (successive “Renewal Terms”), you can receive service from Alliance Power indefinitely. As explained below, there is an early termination fee, but you always have the right to end your contract without an early termination penalty, at the end of the contract term. It is solely your choice whether to renew your contract with Alliance Power.

Fee To End This Agreement Early. If this Agreement is terminated before the end of the Initial Term or any applicable Renewal Term, we may assess you a termination fee of remaining months times kWh per month times contract rate. This fee will not apply if you terminate this Agreement as a result of our notice to change the terms of this Agreement as set forth below.

Three-Federal-Business Day Right Of Rescission.

If you are switching service from another REP to Alliance Power, you may cancel this agreement without penalty or fee within the first 3 federal business days after you receive this Agreement. You may so cancel this Agreement by: (i) calling Alliance Power at 940-692-8670; (ii) writing Alliance Power at 811 6th Street Suite 350, Wichita Falls, TX 76301; (iii) sending Alliance Power a fax at 940-723-8113; or, (iv) sending Alliance Power an email at customerservice@alliance-power.com no later than midnight of the 3rd federal business day. Please include (a) your name, (b) service address, (c) your Alliance Power account number or Electric Service Identifier (“ESI”); (d) the personal identification number (“PIN”) Alliance Power provided you upon enrolling; and (e) a statement that you are canceling your Agreement under this 3-day rescission right.

How You May Cancel This Agreement Later. After the 3-day cancellation period in the above paragraph, you may cancel this Agreement by giving Alliance Power 30 days notice. If this Agreement is terminated before the end of the Initial Term or any applicable Renewal Term, you may be charged an early termination fee unless you terminate this Agreement as a result of Alliance Power’s notice to change the terms of this Agreement as set forth below. You can notify Alliance Power of your decision to cancel this Agreement by mail, fax, or email using the number and addresses in the above paragraph. When you notify Alliance Power of your decision to cancel, please include your name, service address or ESI, and the account # Alliance Power provided you on enrolling. Your service will terminate on a date set by the registration agent, usually the next meter reading date after Alliance Power receives notice of your cancellation.

When Can Alliance Power Cancel This Agreement? Alliance Power may cancel this Agreement for any lawful reason upon 10 days prior written notice. This Agreement will be canceled automatically if (i) Alliance Power terminates your service for nonpayment or (ii) your service is disconnected and you are not reconnected within 5 days after disconnection. There are circumstances under which the law permits Alliance Power to cancel the Agreement and without prior written notice to you (e.g. fraud or misrepresentation by you in enrolling for service under this Agreement) and if this Agreement is canceled for such a reason you may not receive any prior notice. Cancellation is in addition to any other remedies Alliance Power may have at law or in equity including, but not limited to, termination or disconnection of your service as described in this Agreement.

What Happens When Either Party Cancels This Agreement. If Alliance Power cancels this Agreement because you have not paid for charges owed to it or you have broken your promises in this Agreement, your service will be disconnected. Regardless of whether you or Alliance Power cancel this Agreement, if you want to obtain service from another REP, you must contact it directly. Cancellation does not excuse your obligation to pay Alliance Power all outstanding fees and charges under this Agreement.

“Cancellation”, “cancel”, and “canceled” mean ending this Agreement. The terms “terminate” and “termination” refer to transfer of your service from Alliance Power to the appropriate default service provider without a scheduled interruption of service. “Disconnect” or “disconnection” refers to the physical interruption of delivery of electricity.

Notice To Be Given To You If This Agreement Is To Be Changed. If Alliance Power proposes to make material changes to this Agreement, it will send you notice at least 45 days prior to the effective date of the proposed change. If the change is not acceptable to you, you may cancel your Agreement by sending Alliance Power a notice of cancellation at least 10 days prior to the effective date of the proposed change. (Please see the paragraph above on how to cancel your Agreement). Otherwise, Alliance Power will continue your service based on such change on the effective date indicated in the notice.

How Do You Contact Alliance Power? Alliance Power Company, LLC does business as Alliance Power and is a certified Retail Electric Provider, Retail Electric Provider number 10074. It you have questions or want to exercise your rights under this Agreement, please contact Alliance Power using one of the following methods:

Mailing address for notices or correspondence:
P.O. Box 1617
Wichita Falls, Texas 76307

Mailing address for payments:
P.O. Box 1617
Wichita Falls, Texas 76307

Toll-Free Customer Service Telephone Number: 877-777-2017
Hours/Days of Operation: 8:00 am - 6:00 pm, Central Time, Monday-Friday.
Fax Number: 940-723-8113
Website: www.Alliance-Power.com

What Will You Be Charged For Your Electricity Service?

Alliance Power charges you a monthly kWh usage charge based on your contract price and a billing fee of 5.00 per esid.

FUEL ADJUSTMENT RATE(FAR) based on the NYMEX Henry Hub natural gas price for the month. The variable FAR may increase or decrease month by month, based on the changes in the published monthly close price of the NYMEX.

Alliance Power charges you for the electricity provided on a per kilowatt hour (“kWh”) basis and pass-through of all TDSP charges including a Distribution Recovery Factor and applicable taxes. The rate is also available by calling Alliance Power at its customer service number and will be reflected in your monthly bill.

What Other Charges May Be Applied To Your Account? Alliance Power may charge you fees for certain services it provides on your behalf or in connection with your account. Such fees may include:

Alliance Power will also bill you on behalf of your TDSP for the goods and/or services such TDSP provides you. These goods and services may include, but are not limited to: non-recurring TDSP charges for initiation of service; connection fees; meter test fees; special meter read fees; disconnect fees; reconnect fees; and, such other fees or charges lawfully imposed by your TDSP.

How You Will Be Billed And What If You Have A Problem With Your Bill? Alliance Power will bill you monthly. All bills are due no later than sixteen (16) days from the issuance date on the bill. If you do not pay your bill on or before the due date, Alliance Power may terminate service for non-payment. Acceptance by Alliance Power of any partial payment (and even though marked by you “paid in full” or similar designation) from you will not relieve you of your obligation to pay the full amount owed. Alliance Power reserves the right to have included on your monthly bills any charges or credits necessary to correct any billing errors. If any such charge causes a problem for you, please call Alliance Power. Alliance Power reserves the right to pursue all legal methods to collect any amounts lawfully owed. In the event that you fail to pay your bill in accordance with this Agreement, you agree to pay reasonable collection costs and expenses (including reasonable attorney’s fees) Alliance Power incurs as a result of its attempt to collect any amounts you owe. Alliance Power will make reasonable efforts to return any unclaimed credits if a credit balance exists on your account after payment of your final bill from Alliance Power. Unless Alliance Power receives your specific request, those account balances, which are less than one dollar ($1.00), will not be returned. If you have any questions or a dispute regarding the charges on your bill or payments with respect to your account, please call Alliance Power at (877) 777-2077. If Alliance Power is unable to respond to your question or dispute, it will investigate the matter promptly and report its findings to you. You will not be required to pay the disputed portion of your charges while such is being investigated. If you are not satisfied with Alliance Power’s response you may contact the Public Utility Commission of Texas (“PUCT”). For more information on your rights in the event you have a dispute with your bill or information on how to contact the Public Utility Commission of Texas, please see the “Your Rights as a Customer” document accompanying this Agreement.

Forms Of Payment Which Alliance Power Accepts. You may pay your bill by money order or other certified funds (e.g. cashier’s check) or by credit card with a service charge. Alliance Power will also accept payment through certain third-party payment service providers that it has identified as accepting payments on its behalf either in this Agreement or on its website (a “Convenience Payment”). Currently, the only third-party authorized to accept Convenience Payments on its behalf is Fidelity Express and Money Gram. The list of third parties accepting payments on its behalf, however, may be changed from time-to-time by posting notice on its website and will be effective immediately. Payment by any method other than one of the authorized payment methods in this paragraph will be returned and will not prevent any cancellation, termination, or disconnection of your account.

You Will Be Charged For Taxes On Your Services. You must pay all federal, state and local taxes and charges applicable to your services (but you will not be required to pay any federal income tax of Alliance Power applicable to such services).

Your Power May Be Turned Off Under These Circumstances. Effective June 1, 2004, Retail Electric Providers can request to disconnect electric service under certain circumstances, hereafter named, meaning that the flow of power to your home may be so interrupted. Alliance Power has the right to authorize the disconnection of your electric service upon at least 10 days prior written notice if (i) you fail to pay your bill or to make deferred payment arrangements on or before the date of disconnection stated on the disconnect notice that will be sent after your bill becomes past due; (ii) you fail to comply with the terms of a deferred payment agreement; or, (iii) you interfere with the electric service of others or operate non-standard equipment. If Alliance Power has not received full payment within a reasonable time after it sends you a disconnection notice for non-payment, it will attempt to contact you by telephone. In order to prevent disconnection, you must pay the entire amount stated in the notice by one of the approved payment methods set forth above in this Agreement. There is an additional charge for this reminder call that may be assessed to your account no more than once in connection with any particular disconnect notice. Alliance Power may also authorize disconnection of your service without prior written notice as provided by Section 25.483(d) of the rules and regulations of the Public Utility Commission of Texas including (i) where a known dangerous condition exists; (ii) where service is connected without authority; (iii) where service is reconnected without authority after being disconnected; (iv) for tampering with the TDSP’s equipment; or (v) if there is evidence of theft of service. This Agreement will be automatically canceled if you are disconnected for non-payment and have not reestablished service by satisfactory correction of the reason(s) for disconnection within two (2) days. Once this Agreement is terminated, you will have to contact another REP directly to have your electric service reestablished. To reestablish service with Alliance Power you will need to go through the application process again and formally choose Alliance Power as your REP. Disconnection of your service does not relieve you of your responsibility for charges incurred in connection with this Agreement.

You Should Contact In The Event Of A Power-Outage.

FOR OUTAGES AND EMERGENCIES 24 HOURS, 7 DAYS A WEEK, contact the following TDSP in your service area:

Alliance Power Respects Its Customers And Prospective Customers. Alliance Power does not deny service or require a prepayment or deposit for service based on an applicant’s race, creed, color, national original, ancestry, religion, sex, marital status, lawful source of income, level of income, disability, familial status, location in an economically distressed geographic area, or qualification for low income or energy efficiency services.

WARRANTIES. ALLIANCE POWER MAKES NO REPRESENTATIONS OR WARRANTIES OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT AND EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

LIMITATION OF LIABILITY. ALLIANCE POWER’S LIABILITY UNDER THIS AGREEMENT SHALL BE LIMITED TO DIRECT DAMAGES ACTUALLY INCURRED. IT SHALL NOT BE LIABLE FOR INTERRUPTION OR SHORTAGE OF SUPPLY, NOR ANY ASSOCIATED LOSS OR DAMAGE, RESULTING FROM CAUSES OUTSIDE ITS REASONABLE CONTROL. NEITHER YOU NOR ALLIANCE POWER SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OF ANY KIND WHATSOEVER, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE.

Force Majeure. Alliance Power will not be in breach of its obligations under this Agreement to the extent that its failure to perform is caused by forces or circumstances beyond its reasonable control. Such forces or circumstances include, but are not limited to, unusually severe weather, flood, fire, lightning, drought, earthquake, failure of the Energy Reliability Council of Texas (ERCOT) or TDSP to transmit electricity or perform any of their obligations, or failure of performance of any of Alliance Power’s suppliers, vendors or other third parties.

Miscellaneous. By initiating service with Alliance Power, you certify that you are a resident of the service address, at least 18 years of age, and that you are legally authorized to select the Retail Electric Provider for the service address. If different from the service address, the billing address is the address you provided at sign-up. You may not assign this Agreement without Alliance Power’s prior written consent. There are no third-party beneficiaries to this Agreement. This Agreement will be governed and construed in accordance with the laws of the State of Texas. The terms and conditions set forth the final and entire Agreement between you and Alliance Power regarding your purchase of electricity service (subject to applicable law), and supersede all previous promises, understandings and agreements. The headings in this Agreement are for convenience only. If any provision of this Agreement is deemed to be invalid, illegal or otherwise unenforceable, you and Alliance Power agree that it shall be modified to the minimum extent necessary to render it valid, legal and enforceable. If any such provision cannot be modified in such a manner, that would make it valid, legal and enforceable, such provision shall be severed from this Agreement, and all other provisions hereof shall remain in full force and effect. Any failure on Alliance Power’s part at any time to enforce any term or condition of its service or to exercise any right under this Agreement shall not be considered a waiver of its right thereafter to enforce each and every such term and condition or to exercise such right or any other right under this Agreement.