Gexa Early Termination Damages Clause Samples
The Gexa Early Termination Damages clause defines the financial penalties a customer must pay if they end their energy contract with Gexa before the agreed-upon term expires. Typically, this clause outlines how the damages are calculated, such as a fixed fee or a formula based on the remaining contract period or expected energy usage. Its core function is to compensate Gexa for losses incurred due to early contract termination and to discourage customers from breaking their agreements prematurely.
Gexa Early Termination Damages. Except for a Wholesale Supply Failure, a Force Majeure Event, or as otherwise provided or excused in this Agreement, if Gexa cancels this Agreement and refuses to provide electric supply delivery to Customer for any or all ESI ID(s), Customer shall have the right to charge Gexa an early termination penalty equal to the amount determined as follows: the product of (i) the Expected Usage for each ESI ID subject to Gexa’s cancellation or refusal of electric supply delivery (“Gexa Terminated Usage”) multiplied by (ii) the REP Services Fee specified in the REP Services Agreement (that result the “Gexa Early Termination Damages”). If the Gexa Early Termination Damages are charged due to an Event of Default by Gexa, then the Gexa Early Termination Damages will also include Customer’s reasonable costs relating to the determination and collection of Gexa Early Termination Damages, including attorney and consultant fees incurred. Gexa agrees the Gexa Early Termination Damages are a reasonable estimate of the damages due Customer for failure to deliver electric supply, and are not punitive in nature.