Common use of Collections Payment Processing Remittance Clause in Contracts

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues from Consumers and ESPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers and ESPs in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or written past-due and shut-off notices in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (I) The Servicer shall apply Consumer and ESP deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a Consumer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues TCs from Consumers Customers and ESPs REPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers its Customers and ESPs REPs in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (B) The Servicer shall apply late payment charges to its outstanding Consumer Customer and ESP REP balances in accordance with applicable CPUC PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer bills Customers directly, the Servicer shall deliver oral and/or written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP REP billing in accordance with the Utilities Code, the Financing Order, Order and applicable CPUC Regulations and the Servicer Policies and PracticesPUCT Regulations. (HE) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Transition Charges from its Customers and REPs in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices and the Tariff. (IF) The Servicer shall apply Consumer its Customer and ESP REP deposits to the payment of delinquent accounts in accordance with the Tariff, the Financing Order, Order and applicable CPUC PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii) and (iii) of this ▇▇▇▇▇ ▇.Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Consumerits Customer or an REP, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerTransition Bondholders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs TCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree accepts payments of its own charges in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicablewith, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) belowif applicable, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to Financing Order, the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE Tariff and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the TariffPUCT Regulations. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues RTC Charges from Consumers Customers and ESPs TPSs as and when the same become due and shall follow in accordance with such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers Customers and ESPs TPSs in accordance with applicable CPUC DTE Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or written past-due and shut-off notices in accordance with applicable CPUC DTE Regulations and the Servicer Policies and Practices. (DC) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing billing by a TPS pursuant to a TPS Service Agreement in accordance with Section 779.2 Sections 116, 124-124I of the Public Utilities CodeStatute or successor provisions, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC DTE Regulations and the Servicer Policies and Practices. (ED) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC DTE Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (IE) The Servicer shall apply Consumer Customer and ESP TPS deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC DTE Regulations and the Servicer Policies Polices and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇Practices. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a ConsumerCustomer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself Policies and for others; Practices and (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply in all material respects with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers Customers in respect of Billed FRCs RTC Charges in such forms and methods and at such times and places as it accepts for payment of its own chargesin accordance with the Servicer Policies and Practices. The Servicer shall accept payment from ESPs TPSs in respect of Billed FRCs RTC Charges in such forms and methods and at such times and places as the Servicer and each ESP TPS shall mutually agree in accordance with the applicable CPUC TPS Service Agreement and applicable DTE Regulations. (b) Payment Processing; , Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.,

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues Securitization Charges from Consumers and ESPs Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue and shut-off notices to Consumers and ESPs Customers in accordance with applicable CPUC Commission Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP Customer balances in accordance with applicable CPUC Commission Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or written past-due and shut-off notices may employ the assistance of collection agents in accordance with applicable CPUC Commission Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities CodeFinancing Order, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Commission Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (I) The Servicer shall apply Consumer and ESP Customer deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC Commission Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a ConsumerCustomer, in each case if such waiver or action: (A) would be in accordance comply with the Servicer’s customary policies and practices or those of any successor applicable to such duties that the Servicer follows with respect to comparable assets that it services for itself and, if applicable, others, as in effect from time to time in accordance with the Commission Regulations and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with in all material respects with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCsSecuritization Charges, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers Customers in respect of Billed FRCs Securitization Charges in such forms and methods and at such times and places as it accepts for payment of its own own-charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues from Consumers and ESPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers and ESPs in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or written past-due and shut-off notices in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (I) The Servicer shall apply Consumer and ESP deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a Consumer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.;

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues from Consumers and ESPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers and ESPs in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or and written past-due and shut-off notices in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill ▇▇▇▇ Consumers directly, the Servicer shall deliver verbal and/or and written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (I) The Servicer shall apply Consumer and ESP deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇.Annex I. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a Consumer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues from Consumers and ESPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers and ESPs in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or and written past-due and shut-off notices in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill ▇▇▇▇ Consumers directly, the Servicer shall deliver verbal and/or and written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (I) The Servicer shall apply Consumer and ESP deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇.Annex I. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a Consumer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill ▇▇▇▇ to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues RRB Charges from Consumers customers and ESPs TPSs as and when the same become due and shall follow in accordance with such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers customers and ESPs TPSs in accordance with applicable CPUC DPUC Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or written past-due and shut-off notices in accordance with applicable CPUC DPUC Regulations and the Servicer Policies and Practices. (DC) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing billing by a TPS pursuant to a TPS Service Agreement in accordance with Section 779.2 Sections 16-262c, 16-262d and 16-262e of the Public Utilities CodeConnecticut General Statutes or successor provisions, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC DPUC Regulations and the Servicer Policies and Practices. (ED) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC DPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (IE) The Servicer shall apply Consumer customer and ESP TPS deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC DPUC Regulations and the Servicer Policies Polices and Practices and according to Practices. (F) The Servicer shall comply with the priorities set forth in provisions of Section 6(b3.01(a)(3) of this ▇▇▇▇▇ ▇the Agreement relating to special contract customers. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Consumercustomer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself Policies and for others; Practices, (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; Certificateholders and (CB) would comply in all material respects with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers customers in respect of Billed FRCs RRB Charges in such forms and methods and at such times and places as it accepts for payment of its own chargesin accordance with the Servicer Policies and Practices. The Servicer shall accept payment from ESPs TPSs in respect of Billed FRCs RRB Charges in such forms and methods and at such times and places as the Servicer and each ESP TPS shall mutually agree in accordance with the applicable CPUC TPS Service Agreement and applicable DPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues from Consumers and ESPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers and ESPs in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or and written past-due and shut-off notices in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or and written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (I) The Servicer shall apply Consumer and ESP deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a Consumer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues SRCs from Consumers Customers and ESPs REPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers its Customers and ESPs REPs in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (B) The Servicer shall apply late payment charges to its outstanding Consumer Customer and ESP REP balances in accordance with applicable CPUC PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer bills Customers directly, the Servicer shall deliver oral and/or written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP REP billing in accordance with the Utilities CodePublic Utility Regulatory Act, the Financing Order, Order and applicable CPUC Regulations and the Servicer Policies and PracticesPUCT Regulations. (HE) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery System Restoration Charges from its Customers and REPs in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices and the Tariff. (IF) The Servicer shall apply Consumer its Customer and ESP REP deposits to the payment of delinquent accounts in accordance with the Tariff, the Financing Order, Order and applicable CPUC PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii) and (iii) of this ▇▇▇▇▇ ▇. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Consumerits Customer or an REP, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs SRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree accepts payments of its own charges in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicablewith, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) belowif applicable, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to Financing Order, the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE Tariff and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the TariffPUCT Regulations. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues SRCs from Consumers Customers and ESPs REPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers its Customers and ESPs REPs in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (B) The Servicer shall apply late payment charges to its outstanding Consumer Customer and ESP REP balances in accordance with applicable CPUC PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer bills Customers directly, the Servicer shall deliver oral and/or written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP REP billing in accordance with the Utilities CodePublic Utility Regulatory Act, the Financing Order, Order and applicable CPUC Regulations and the Servicer Policies and PracticesPUCT Regulations. (HE) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery System Restoration Charges from its Customers and REPs in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices and the Tariff. (IF) The Servicer shall apply Consumer its Customer and ESP REP deposits to the payment of delinquent accounts in accordance with the Tariff, the Financing Order, Order and applicable CPUC PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii) and (iii) of this ▇A▇▇▇▇ ▇. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Consumerits Customer or an REP, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs SRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree accepts payments of its own charges in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicablewith, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) belowif applicable, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to Financing Order, the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE Tariff and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the TariffPUCT Regulations. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues RRB Charges from Consumers customers and ESPs TPSs as and when the same become due and shall follow in accordance with such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers customers and ESPs TPSs in accordance with applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or written past-due and shut-off notices in accordance with applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (DC) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing billing by a TPS pursuant to a TPS Service Agreement in accordance with Section 779.2 of RSA 369-B:4, IV, the Public Utilities CodeFinance Order, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (ED) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (IE) The Servicer shall apply Consumer customer and ESP TPS deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC NHPUC Regulations and -Annex I-45- the Servicer Policies Polices and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇Practices. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Consumercustomer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself Policies and for others; Practices, (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; Bondholders, and (C) would comply in all material respects with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers customers in respect of Billed FRCs RRB Charges in such forms and methods and at such times and places as it accepts for payment of its own chargesin accordance with the Servicer Policies and Practices. The Servicer shall accept payment from ESPs TPSs in respect of Billed FRCs RRB Charges in such forms and methods and at such times and places as the Servicer and each ESP TPS shall mutually agree in accordance with the applicable CPUC TPS Service Agreement and applicable NHPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues RRB Charges from Consumers customers and ESPs TPSs as and when the same become due and shall follow in accordance with such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers customers and ESPs TPSs in accordance with applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or written past-due and shut-off notices in accordance with applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (DC) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing billing by a TPS pursuant to a TPS Service Agreement in accordance with Section 779.2 of RSA 369-B:4, IV, the Public Utilities CodeFinance Order, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (ED) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (IE) The Servicer shall apply Consumer customer and ESP TPS deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC NHPUC Regulations and the Servicer Policies Polices and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇Practices. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Consumercustomer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself Policies and for others; Practices, (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; Bondholders, and (CB) would comply in all material respects with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers customers in respect of Billed FRCs RRB Charges in such forms and methods and at such times and places as it accepts for payment of its own chargesin accordance with the Servicer Policies and Practices. The Servicer shall accept payment from ESPs TPSs in respect of Billed FRCs RRB Charges in such forms and methods and at such times and places as the Servicer and each ESP TPS shall mutually agree in accordance with the applicable CPUC TPS Service Agreement and applicable NHPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues SRCs from Consumers Customers and ESPs REPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers its Customers and ESPs REPs in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (B) The Servicer shall apply late payment charges to its outstanding Consumer Customer and ESP REP balances in accordance with applicable CPUC PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer bills Customers directly, the Servicer shall deliver oral and/or written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP REP billing in accordance with the Utilities Code, the Financing Order, Order and applicable CPUC Regulations and the Servicer Policies and PracticesPUCT Regulations. (HE) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery System Restoration Charges from its Customers and REPs in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices and the Tariff. (IF) The Servicer shall apply Consumer its Customer and ESP REP deposits to the payment of delinquent accounts in accordance with the Tariff, the Financing Order, Order and applicable CPUC PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii) and (iii) of this ▇▇▇▇▇ ▇.Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Consumerits Customer or an REP, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerBondholders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs SRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree accepts payments of its own charges in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicablewith, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) belowif applicable, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to Financing Order, the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE Tariff and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the TariffPUCT Regulations. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues RTC Charges from Consumers Customers and ESPs TPSs as and when the same become due and shall follow in accordance with such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers Customers and ESPs TPSs in accordance with applicable CPUC DTE Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or written past-due and shut-off notices in accordance with applicable CPUC DTE Regulations and the Servicer Policies and Practices. (DC) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing billing by a TPS pursuant to a TPS Service Agreement in accordance with Section 779.2 of the Public Utilities CodeMassachusetts General Laws Chapter 164, CPUC Decision ▇▇116, 124-▇▇-▇▇▇124I or successor provisions, as it may be amended or modified from time to time, and applicable CPUC DTE Regulations and the Servicer Policies and Practices. (ED) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC DTE Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (IE) The Servicer shall apply Consumer Customer and ESP TPS deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC DTE Regulations and the Servicer Policies Polices and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇Practices. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a ConsumerCustomer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself Policies and for others; Practices, (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; Certificateholders and (C) would comply in all material respects with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers Customers in respect of Billed FRCs RTC Charges in such forms and methods and at such times and places as it accepts for payment of its own chargesin accordance with the Servicer Policies and Practices. The Servicer shall accept payment from ESPs TPSs in respect of Billed FRCs RTC Charges in such forms and methods and at such times and places as the Servicer and each ESP TPS shall mutually agree in accordance with the applicable CPUC TPS Service Agreement and applicable DTE Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues TCs from Consumers Customers and ESPs Third-Party Collectors (including REPs) as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers Customers and ESPs REPs in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer Customer and ESP REP balances in accordance with applicable CPUC PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing REP billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇the Financing Order, as it may be amended or modified from time to time, and applicable CPUC PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Transition Charges in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices and the TariffTariffs. (IF) The Servicer shall apply Consumer Customer and ESP REP deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii), (iii), (iv) and (v) of this ▇▇▇▇▇ ▇.Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a ConsumerCustomer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCsTCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for 180 days or more. (iii) The Servicer shall accept payment from Consumers Customers and Third-Party Collectors (other than REPs) in respect of Billed FRCs TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs REPs in respect of Billed FRCs TCs in such forms and methods and at such times and places as the Servicer and each ESP REP shall mutually agree in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, PUCT Regulations and the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion give prompt written notice to the charges contained on the outstanding Bill to Rating Agencies of any such Consumer or Applicable ESPagreements. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures.. ---------------------------------------- (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues RRB Charges from Consumers customers and ESPs TPSs as and when the same become due and shall follow in accordance with such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers customers and ESPs TPSs in accordance with applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer and ESP balances in accordance with applicable CPUC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and/or written past-due and shut-off notices in accordance with applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (DC) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing billing by a TPS pursuant to a TPS Service Agreement in accordance with Section 779.2 of RSA 369-B:4, IV, the Public Utilities CodeFinance Order, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (ED) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC NHPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (IE) The Servicer shall apply Consumer customer and ESP TPS deposits to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC NHPUC Regulations and the Servicer Policies Polices and Practices and according to the priorities set forth in Section 6(b) of this ▇▇▇▇▇ ▇Practices. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Consumercustomer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself Policies and for others; Practices, (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; Bondholders, and (C) would comply in all material respects with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers customers in respect of Billed FRCs RRB Charges in such forms and methods and at such times and places as it accepts for payment of its own chargesin accordance with the Servicer Policies and Practices. The Servicer shall accept payment from ESPs TPSs in respect of Billed FRCs RRB Charges in such forms and methods and at such times and places as the Servicer and each ESP TPS shall mutually agree in accordance with the applicable CPUC TPS Service Agreement and applicable NHPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Tariff. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues TCs from Consumers Customers and ESPs REPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers Customers and ESPs REPs in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (B) The Servicer shall apply late payment charges to outstanding Consumer Customer and ESP REP balances in accordance with applicable CPUC PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer bills Customers directly, the Servicer shall deliver oral and/or written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP REP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and PracticesPUCT Regulations. (HE) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Transition Charges in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices and the Tariff. (IF) The Servicer shall apply Consumer Customer and ESP REP deposits to the payment of delinquent accounts in accordance with the Tariff, the Financing Order, Order and applicable CPUC PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii) and (iii) of this ▇▇▇▇▇ ▇.Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a ConsumerCustomer or REP, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerTransition Bondholders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs TCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree accepts payments of its own charges in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicablewith, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) belowif applicable, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to Financing Order, the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE Tariff and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the TariffPUCT Regulations. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues SRCs from Consumers Customers and ESPs REPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers its Customers and ESPs REPs in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (B) The Servicer shall apply late payment charges to its outstanding Consumer Customer and ESP REP balances in accordance with applicable CPUC PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer bills Customers directly, the Servicer shall deliver oral and/or written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP REP billing in accordance with the Utilities CodePublic Utility Regulatory Act, the Financing Order, Order and applicable CPUC Regulations and the Servicer Policies and PracticesPUCT Regulations. (HE) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery System Restoration Charges from its Customers and REPs in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices and the Tariff. (IF) The Servicer shall apply Consumer its Customer and ESP REP deposits to the payment of delinquent accounts in accordance with the Tariff, the Financing Order, Order and applicable CPUC PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii) and (iii) of this ▇▇▇▇▇ ▇.Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Consumerits Customer or an REP, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs SRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree accepts payments of its own charges in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicablewith, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) belowif applicable, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to Financing Order, the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE Tariff and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the TariffPUCT Regulations. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues SRCs from Consumers Customers and ESPs REPs as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Consumers its Customers and ESPs REPs in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (B) The Servicer shall apply late payment charges to its outstanding Consumer Customer and ESP REP balances in accordance with applicable CPUC PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer bills Customers directly, the Servicer shall deliver oral and/or written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and PracticesPUCT Regulations. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities Code, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, and applicable CPUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP REP billing in accordance with the Utilities CodePublic Utility Regulatory Act, the Financing Order, Order and applicable CPUC Regulations and the Servicer Policies and PracticesPUCT Regulations. (HE) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery System Restoration Charges from its Customers and REPs in accordance with applicable CPUC PUCT Regulations and Servicer Policies and Practices and the Tariff. (IF) The Servicer shall apply Consumer its Customer and ESP REP deposits to the payment of delinquent accounts in accordance with the Tariff, the Financing Order, Order and applicable CPUC PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii) and (iii) of this ▇A▇▇▇▇ ▇. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by its Customer or a ConsumerREP, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed FRCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers in respect of Billed FRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs in respect of Billed FRCs SRCs in such forms and methods and at such times and places as the Servicer and each ESP shall mutually agree accepts payments of its own charges in accordance with applicable CPUC Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP accounts as promptly as practicablewith, and, in any event, substantially all payments shall be posted no later than three (3) Business Days after receipt. (ii) Subject to clause (iii) belowif applicable, the Servicer shall apply payments received to each Consumer’s or each Applicable ESP’s account in proportion to Financing Order, the charges contained on the outstanding Bill to such Consumer or Applicable ESP. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill to a Consumer or ESP shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE Tariff and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms of the TariffPUCT Regulations. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) as such charges become due.

Collections Payment Processing Remittance. (a) Collection Efforts, ; Policies, ; Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed FRC Revenues Transition Bond Charges from Consumers Customers and ESPs Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets that it services for itself or others, including with respect to the followingincluding, as follows: (A) The Servicer shall prepare and deliver overdue notices to Consumers Customers and ESPs Third Parties in accordance with applicable CPUC BPU Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges to outstanding Consumer Customer and ESP Third Party balances in accordance with applicable CPUC Regulations and as required by the Financing OrderBPU Regulations. All late payment charges, to the extent available, and interest charges collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver oral and/or verbal and written past-due and shut-off final call notices in accordance with applicable CPUC BPU Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Consolidated ESP Billing in accordance with Section 779.2 of the Public Utilities CodeCompetition Act, CPUC Decision ▇▇-▇▇-▇▇▇, as it may be amended or modified from time to time, other applicable law and applicable CPUC BPU Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents in accordance with applicable CPUC BPU Regulations and Servicer Policies and Practices. (F) In circumstances where the Servicer is allowed to bill Consumers directly, the Servicer shall deliver verbal and/or written final notices of delinquency and possible disconnection in accordance with applicable CPUC Regulations and Servicer Policies and Practices. (G) The Servicer shall adhere to and carry out disconnection policies and termination of ESP billing in accordance with the Utilities Code, the Financing Order, applicable CPUC Regulations and the Servicer Policies and Practices. (H) The Servicer may employ the assistance of collection agents to collect any past-due Fixed Recovery Charges in accordance with applicable CPUC Regulations and Servicer Policies and Practices and the Tariff. (I) The Servicer shall apply Consumer Customer and ESP deposits Third Party deposits, Customers’ letters of credit and Customer posted surety bonds to the payment of delinquent accounts in accordance with the Financing Order, applicable CPUC BPU Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii) and (iv) of this ▇▇▇▇▇ ▇Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable BPU Regulations to terminate billing of Transition Bond Charges by Third Parties whose payments are twenty-two or more days delinquent, or as the then current BPU Regulations and any billing services agreements allow, and to resume, prospectively, to collect the Billed Transition Bond Charges directly from the applicable Customers. At such time, the Servicer will apply the Third Party’s security deposit to satisfy charges billed previously by the Third Party which remain outstanding, including outstanding Transition Bond Charges. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a ConsumerCustomer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s customary practices or those of any successor Successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerTransition Bondholders; and and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed FRCs, Transition Bond Charges in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Consumers Customers in respect of Billed FRCs Transition Bond Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ESPs Third Parties in respect of Billed FRCs Transition Bond Charges in such forms and methods and at such times and places as the Servicer and each ESP Third Party shall mutually agree in accordance with applicable CPUC BPU Regulations. (b) Payment Processing; Allocation; Priority of Payments. (i) The Servicer shall post all payments received to Consumer or ESP Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) two Business Days after receipt. (ii) Subject to clause (iii) below, the Servicer shall apply payments received to each ConsumerCustomer’s or each Applicable ESPThird Party’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Consumer Customer or Applicable ESPThird Party. (iii) Any amounts collected by the Servicer that represent partial payments of the total Bill ▇▇▇▇ to a Consumer Customer or ESP Third Party shall be allocated as follows: (A) first to amounts owed to the Issuer, SCE and any other affiliate of SCE which is owed “fixed recovery charges” as defined in Section 850(b)(7) of the Securitization Law and other fees and charges, (excluding any late fees), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such Bill; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Fixed Recovery Charges shall be allocated to the Issuer in accordance with the terms priorities set forth in Section 3.02(b) of the TariffServicing Agreement. (iv) The Servicer shall hold all over-payments for the benefit of the Issuer and SCE and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) above as such charges become due. (v) For Customers on a Budget Payment Plan, the Servicer shall treat TBC Collections received from such Customers as if such Customers had been billed for the Transition Bond Charge in the absence of the Budget Payment Plan. Partial payment of a Budget Payment Plan payment shall be allocated according to clause (iii) above, and overpayment of a Budget Payment Plan payment shall be allocated according to clause (iv) above. (c) Accounts; Records. (i) The Servicer shall maintain accounts and records as to the Transferred Bondable Transition Property accurately and in accordance with its standard accounting procedures and in sufficient detail to permit reconciliation between payments or recoveries with respect to the Transferred Bondable Transition Property and the amounts from time to time remitted to the Collection Account in respect of the Transferred Bondable Transition Property. (ii) The Servicer shall maintain accounts and records as to Third Parties performing Consolidated Third Party Billing for Customers accurately and in accordance with its standard accounting procedures and in sufficient detail to permit reconciliation between payments or recoveries with respect to the Transferred Bondable Transition Property and amounts owed by such Customers in respect of the Transition Bond Charge. (d) Investment of TBC Collections. Prior to remittance on the applicable Remittance Date, the Servicer may invest TBC Collections received at its own risk and for its own benefit, and such investments and funds shall not be required to be segregated from the other investments and funds of the Servicer. (e) Calculation of Collections; Determination of Aggregate Remittance Amount. (i) On or before each Remittance Date, the Servicer shall calculate the total TBC Collections received by the Servicer from or on behalf of Customers during prior Collection Periods in respect of all previously Billed Transition Bond Charges. (ii) In accordance with Section 4.01 of the Servicing Agreement and Annex 1, the Servicer shall update the Variables and shall prepare Adjustment Requests to reflect the updated Variables when required to do so pursuant to Annex 1. (f) Remittances. (i) The Servicer shall make remittances to the Issuer in accordance with Section 5.11 of the Servicing Agreement. (ii) In the event of any change of account or change of institution affecting the remittances, the Issuer shall provide written notice thereof to the Servicer by the earlier of (A) five Business Days from the effective date of such change, or (B) five Business Days prior to the next applicable Remittance Date.