Common use of Payment Processing; Allocation; Priority of Payments Clause in Contracts

Payment Processing; Allocation; Priority of Payments. i. The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. ii. If any Customer does not pay the full amount of any Bill to the Servicer, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. All late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate Schedules. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 1. iv. The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received in respect of the Billed Charges to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all such payments shall be posted in no event later than three the third (33rd) Servicer Business Days Day after receiptsuch payments are received by Servicer. (ii. If any Customer does not pay the full amount of any Bill ) Subject to the Servicerclause (iii) below, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the Intercreditor Agreement is in effect, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. All Any amounts collected by the Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill to a Customer, in each case shall be allocated as follows: (1) first to amounts owed to the Issuer, the Servicer and any other affiliate of the Servicer which is owed “securitized surcharges” as defined in Section 278.670(20) of the Act 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 or applicable portion thereof, as applicable; then (2) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate Schedules. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 1Charge Rider. (iv. ) The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Kentucky Power and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections Charge Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received in respect of the Billed SRCs to the applicable Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receiptactual receipt of such payments by Servicer. (ii. If any Customer does not pay ) Subject to clause (iii) below, the full amount of any Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. (iii) So long as the ServicerIntercreditor Agreement is in effect, the amount paid Servicer shall allocate, or cause to be allocated, amounts owed to the Issuer and the other recipients of remittances described therein in accordance with the terms of the Intercreditor Agreement. Any amounts collected by the Customer Servicer that represent partial payments of, (A) if the Intercreditor Agreement remains in effect, the portion of the Bill allocable to Storm Recovery Charges pursuant to the terms of the Intercreditor Agreement, or (B) otherwise, the total Bill will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Storm Recovery Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orderscharges, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-pro rata. In addition, subject to any future intercreditor or joinder agreement, in the event the Servicer sponsors future offerings of storm recovery bonds or other securitizations bonds, such partial collections representing Energy Transition Charges storm recovery charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-pro rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate SchedulesSchedule Rider. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. All late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate Schedules. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c(iv) of this Annex 1. iv. The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power SWEPCO and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC SRC Collections received from such Customers as if such Customers had been billed for their respective Energy Transition Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or and (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv). (vi) For Customers on a Prepayment Plan, the Servicer shall treat prepaid SRC Collections received from such Customers as if such Customers had been billed for their Storm Recovery Charges, and made such SRC Payments, as of the date such SRC Payments would have been due in the absence of the applicable Prepayment Plan; partial payment of a Prepayment Plan payment shall be allocated according to clause (ii) and (iii) (as applicable) and overpayment of a Prepayment Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. (ii. If any Customer does not pay the full amount of any Bill ) Subject to the Servicerclause (iii) below, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s or each Applicable REP’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Customer. All Customer or Applicable REP. (iii) Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or REP shall be allocated as follows: (A) first to amounts owed to the Issuer, AEP Texas and any other affiliate of AEP Texas which is owed “transition charges” as defined in Section 39.302(7) (including as modified by Section 36.403(f) to include system restoration charges) 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 ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition System Restoration Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariff. It As provided in the Intercreditor Agreement, if more than one issue of system restoration bonds or transition bonds issued under the Securitization Law is understood that outstanding, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to each other issuer of system restoration bonds or transition bonds ratably based upon the total amount of system restoration charges or transition charges, as applicable, on such allocations may be made on a delayed basis ▇▇▇▇ which were billed in accordance with the reconciliations described in Section 6(c) respect to each such issue of this Annex 1system restoration bonds or transition bonds. (iv. ) The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power AEP Texas and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections SRC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition System Restoration Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) five Servicer Business Days after receipt. (ii. If any Customer does not pay the full amount of any Bill ) Subject to the Servicerclause (iii) below, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s 's or Applicable ARES' account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Customer. All Customer or Applicable ARES. (iii) Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or ARES shall be allocated as follows: (A) first to amounts owed to the Note Issuer and ComEd (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate Schedules. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 1ComEd. (iv. ) The Servicer shall hold all over-payments for the benefit of the Note Issuer and Cleco Power ComEd and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) above as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections IFC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges IFCs in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) above and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv)) above.

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. (ii. If any Customer does not pay the full amount of any Bill ) Subject to the Servicerclause (iii) below, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s or each Applicable REP’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Customer. All Customer or Applicable REP. (iii) Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or REP shall be allocated as follows: (A) first to amounts owed to the Issuer, TCC and any other affiliate of TCC which is owed “transition charges” as defined in Section 39.302(7) of the Securitization Law, (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 16(e). (iv. ) The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power TCC and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections TC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. ii. If any Customer does not pay the full amount of any Bill ▇▇▇▇ to the Servicer, the amount paid by the Customer will be applied to all charges on the Bill▇▇▇▇, including without limitation electric service charges and all Energy Transition Storm Recovery Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orderscharges, based, as to a Bill ▇▇▇▇ with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Storm Recovery Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate SchedulesSchedule. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Customer. All Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer shall be allocated as follows: (A) first to amounts owed to the Issuer, Cleco Power and any other Affiliate of Cleco Power which is owed “Storm Recovery Charges” as defined in the Securitization Law (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Storm Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Rate Schedules. If more than one series of Storm Recovery Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Storm Recovery Charges on such ▇▇▇▇ which were billed in respect of each such series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6(e) of this Annex 1.I. iv. The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. For Customers on a Budget Billing Plan, the Servicer shall treat ETC SRC Collections received from such Customers as if such Customers had been billed for their respective Energy Transition Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. (ii. If any Customer does not pay the full amount of any Bill ) Subject to the Servicerclause (iii) below, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s or each Applicable REP’s account in proportion to the charges contained on the outstanding Bill B▇▇▇ to such Customer. All Customer or Applicable REP. (iii) Any amounts collected by the Servicer that represent partial payments of the total B▇▇▇ to a Customer or REP shall be allocated as follows: (A) first to amounts owed to the Issuer, TCC and any other affiliate of TCC which is owed “transition charges” as defined in Section 39.302(7) of the Securitization Law, (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such B▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariff. It As provided in the Intercreditor Agreement, if more than one issue of transition bonds issued under the Securitization Law is understood that outstanding, the Servicer shall allocate, or cause to the allocated, amounts owed to the Issuer and to each other issuer of transition bonds ratably based upon the total amount of transition charges on such allocations may be made on a delayed basis b▇▇▇ which were billed in accordance with the reconciliations described in Section 6(c) respect to each such issue of this Annex 1transition bonds. (iv. ) The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power TCC and shall apply such funds to future Bill B▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections TC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3A) one Servicer Business Day after receipt by the Servicer if payment is made directly to the Servicer by a Customer, (B) two Servicer Business Days after receipt. ii. If any Customer does not pay the full amount of any Bill to receipt by a Thirty-Party Collector (other than an ARES or another electric utility) acting as agent for the Servicer, the amount paid or (C) two Servicer Business Days after receipt by the Customer will be applied to all charges on the Bill, including without limitation Servicer from an ARES or another electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedulesutility. (ii) Subject to clause (iii. The ) below, the Servicer shall apply payments received to each Customer’s 's or Applicable ARES' account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Customer. All late charges Customer or Applicable ARES. (iii) Any amount collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or ARES shall be allocated to the Servicer; provided that penalty payments amounts owed on late payments of Energy Transition Charges shall be allocated to the Note Issuer and Illinois Power, regardless of age, pro rata in accordance with the terms proportion to their respective percentages of the Rate Schedules. It is understood that total amount of their combined outstanding charges on such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 1▇▇▇▇. (iv. ) The Servicer shall hold all over-payments for the benefit of the Note Issuer and Cleco Illinois Power and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) above as such charges become due. v. (v) For Customers on a Budget Billing Levelized Payment Plan, the Servicer shall treat ETC Collections IFC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges IFCs in the absence of the Budget Billing Levelized Payment Plan; partial payment of a Budget Billing Levelized Payment Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) above and overpayment of a Budget Billing Levelized Payment Plan payment shall be allocated according to clause (iv)) above.

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. (ii) Until retail competition is introduced into the Service Area, any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to ANNEX I customer deposits, (2) to all electric service charges of ETI on the ▇▇▇▇ and to all System Restoration Charges on the ▇▇▇▇, pro rata based upon the total amount billed, and (3) to tax and remaining charges billed to the Customers. If Any amounts allocated to System Restoration Charge payments pursuant to (2) above shall be further allocated as follows: (A) first to amounts owed to the Issuer, ETI and any Customer does not pay other affiliate of ETI which is owed “System Restoration Charges” as defined in Section 39.302(7) whether as supplemented by 36.403(f) of the full Financing Act or another section of the Utilities Code (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of any Bill their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer, ; provided that penalty payments owed on late payments of System Restoration Charges shall be allocated to the amount paid by Issuer in accordance with the Customer will be applied to all charges on terms of the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering Tariffs. If there is more than one monthowner of transition property, on or if the chronological order sole or any owner of billing, and, as to those charges with the same billing date, pro-rata. In additiontransition property (or pledge or pledgee) has issued multiple series of bonds, such partial collections representing Energy Transition Charges and any other similar securitization system restoration charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds owners (or pledgee or pledgees), and among such series of system restoration bonds, pro-rata based upon the amounts billed with respect to each issuance series of securitization system restoration bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. All late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariff. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6 of this Annex. (iii) When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer’s or any and each Applicable REP’s account in proportion to the charges contained on the outstanding ▇▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or any REP shall be allocated as follows: (A) first to amounts owed to the Issuer, ETI and any other affiliate of ETI which is owed “System Restoration Charges” as defined in Sections 39.302(7) whether as supplemented by 36.403(f) of the Financing Act or another section of the Utilities Code (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of System Restoration Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex 1.I. (iv. ) The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power ETI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections SRC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition System Restoration Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. ii. If any Customer does not pay the full amount of any Bill B▇▇▇ to the Servicer, the amount paid by the Customer will be applied to all charges on the BillB▇▇▇, including without limitation electric service charges and all Energy Transition Storm Recovery Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orderscharges, based, as to a Bill B▇▇▇ with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Storm Recovery Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate SchedulesSchedule. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill B▇▇▇ to such Customer. All Any amounts collected by the Servicer that represent partial payments of the total B▇▇▇ to a Customer shall be allocated as follows: (A) first to amounts owed to the Issuer, Cleco Power and any other Affiliate of Cleco Power which is owed “Storm Recovery Charges” as defined in the Securitization Law (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such B▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Storm Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Rate Schedules. If more than one series of Storm Recovery Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Storm Recovery Charges on such b▇▇▇ which were billed in respect of each such series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6(e) of this Annex 1.I. iv. The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power and shall apply such funds to future Bill B▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. For Customers on a Budget Billing Plan, the Servicer shall treat ETC SRC Collections received from such Customers as if such Customers had been billed for their respective Energy Transition Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. ii. If Until retail competition is introduced into the Service Area, any Customer does not pay the full amount of any Bill to the Servicer, the amount paid amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer will shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to customer deposits, (2) to all charges on the Bill, including without limitation electric service charges of EGSI on the ▇▇▇▇ and to all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing▇▇▇▇, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-pro rata based upon the total amount billed, and (3) to tax and remaining charges billed to the Customers. Any amounts billed with respect allocated to each issuance Transition Charge payments pursuant to (2) above shall be further allocated as follows: (A) first to amounts owed to the Issuer, EGSI and any other affiliate of securitization bonds, provided that EGSI which is owed "Transition Charges" as defined in Sections 39.302(7) and 39.460(f) of the Securitization Law (excluding any late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s account interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges contained on the outstanding Bill to such Customer. All ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6 of this Annex.When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer's or any and each Applicable REP's account in proportion to the charges contained on the outstanding ▇▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or any REP shall be allocated as follows: (A) first to amounts owed to the Issuer, EGSI and any other affiliate of EGSI which is owed "Transition Charges" as defined in Sections 39.302(7) and 39.460(f) of the Securitization Law (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex 1. iv. The I.The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power EGSI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections TC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. ii. If Until retail competition is introduced into the Service Area, any Customer does not pay the full amount of any Bill to the Servicer, the amount paid amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer will shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to customer deposits, (2) to all charges on the Bill, including without limitation electric service charges of EGSI on the ▇▇▇▇ and to all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing▇▇▇▇, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-pro rata based upon the total amount billed, and (3) to tax and remaining charges billed to the Customers. Any amounts billed with respect allocated to each issuance Transition Charge payments pursuant to (2) above shall be further allocated as follows: (A) first to amounts owed to the Issuer, EGSI and any other affiliate of securitization bonds, provided that EGSI which is owed "Transition Charges" as defined in Sections 39.302(7) and 39.460(f) of the Securitization Law (excluding any late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s account interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges contained on the outstanding Bill to such Customer. All ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6 of this Annex. When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer's or any and each Applicable REP's account in proportion to the charges contained on the outstanding ▇▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or any REP shall be allocated as follows: (A) first to amounts owed to the Issuer, EGSI and any other affiliate of EGSI which is owed "Transition Charges" as defined in Sections 39.302(7) and 39.460(f) of the Securitization Law (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. If more than one Series of Transition Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Transition Charges on such ▇▇▇▇ which were billed in respect of each such Series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex 1. iv. I. The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power EGSI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. . For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections TC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer 3 Business Days after receipt. (ii. If any Customer does not pay the full amount of any Bill ) Subject to the Servicerclause (iii) below, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s 's or Applicable REP's account in proportion to the charges contained on the outstanding Bill to such Customer. All Customer or Applicable REP. (iii) Any am▇▇▇▇s collected by the Servicer that represent partial payments of the total Bill to a Customer or REP shall be allocated as follows: (A) first to ▇▇▇unts owed to the Note Issuer and CPL (excluding any late fees and interest charges), 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 Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate Schedules. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 1. (iv. ) The Servicer shall hold all over-payments for the benefit of the Note Issuer and Cleco Power CPL and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) (as applicable) above as such charges ▇▇▇▇ges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections TC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) above and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv)) above.

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) ____ Servicer Business Days after receipt. (ii. If any Customer does not pay the full amount of any Bill ) Subject to the Servicerclause (iii) below, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s 's or Applicable REP's account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Customer. All Customer or Applicable REP. (iii) Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or REP shall be allocated as follows: (A) first to amounts owed to the Note Issuer and CPL (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate Schedules. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 1. (iv. ) The Servicer shall hold all over-payments for the benefit of the Note Issuer and Cleco Power CPL and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) above as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections TC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) above and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv)) above.

Payment Processing; Allocation; Priority of Payments. i. The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. ii. If any Customer does not pay the full amount of any Bill to the Servicer, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In additionIf there is more than one owner of Storm Recovery Property, or if the sole or any owner of Storm Recovery Property (or pledgee or pledgees) has issued multiple series of storm recovery bonds, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) Charges shall be allocated among all such securitization bonds owners (or pledgee or pledgees), and among such series of storm recovery bonds, pro-rata based upon the amounts billed with respect to each issuance series of securitization storm recovery bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedulestariff. iii. The When and if the service area becomes subject to retail competition, the Servicer shall apply payments received to each Customer’s 's or any and each Third-Party Collector's account in proportion to the charges contained on the outstanding Bill to such CustomerCustomer or Third-Party Collector. All Any amounts collected by the Servicer that represent partial payments of the total Bill to a Customer or any Third-Party Collector shall be allocated as follows: (A) first to amounts owed to the Issuer, Cleco Power and any other Affiliate of Cleco Power which is owed "Storm Recovery Charges" as defined in the Securitization Law (excluding any late fees and interest charges), 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 Energy Transition Storm Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariffs. If more than one series of Storm Recovery Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Storm Recovery Charges on such bill which were billed in respect of each such series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6(e) of this Annex 1.I. iv. The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power and shall apply such funds to future Bill charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. For Customers on a Budget Billing Plan, the Servicer shall treat ETC SRC Collections received from such Customers as if such Customers had been billed for their respective Energy Transition Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. (ii. If ) Until retail competition is introduced into the Service Area, any Customer does not pay the full amount of any Bill to the Servicer, the amount paid amounts collected by the Servicer that represent partial payments of the total B▇▇▇ to a Customer will shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to customer deposits, (2) to all charges on the Bill, including without limitation electric service charges of ETI on the B▇▇▇ and to all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billingB▇▇▇, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-pro rata based upon the total amount billed, and (3) to tax and remaining charges billed to the Customers. Any amounts billed with respect allocated to each issuance Transition Charge payments pursuant to (2) above shall be further allocated as follows: (A) first to amounts owed to the Issuer, ETI and any other affiliate of securitization bonds, provided that ETI which is owed “Transition Charges” as defined in Section 39.302(7) whether as supplemented by 36.403(f) of the Securitization Law or another section of the Utilities Code (excluding any late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s account interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges contained on the outstanding Bill to such Customer. All B▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariffs. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6 of this Annex. (iii) When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer’s or any and each Applicable REP’s account in proportion to the charges contained on the outstanding B▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total B▇▇▇ to a Customer or any REP shall be allocated as follows: (A) first to amounts owed to the Issuer, ETI and any other affiliate of ETI which is owed “Transition Charges” as defined in Sections 39.302(7) whether as supplemented by 36.403(f) of the Securitization Law or another section of the Utilities Code (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such B▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex 1.I. (iv. ) The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power ETI and shall apply such funds to future Bill B▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections TC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. (ii) Until retail competition is introduced into the Service Area, any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to ANNEX I customer deposits, (2) to all electric service charges of ETI on the ▇▇▇▇ and to all System Restoration Charges on the ▇▇▇▇, pro rata based upon the total amount billed, and (3) to tax and remaining charges billed to the Customers. If Any amounts allocated to Transition Charge payments pursuant to (2) above shall be further allocated as follows: (A) first to amounts owed to the Issuer, ETI and any Customer does not pay other affiliate of ETI which is owed “System Restoration Charges” as defined in Section 39.302(7) whether as supplemented by 36.403(f) of the full Financing Act or another section of the Utilities Code (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of any Bill their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer, ; provided that penalty payments owed on late payments of System Restoration Charges shall be allocated to the amount paid by Issuer in accordance with the Customer will be applied to all charges on terms of the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering Tariffs. If there is more than one monthowner of transition property, on or if the chronological order sole or any owner of billing, and, as to those charges with the same billing date, pro-rata. In additiontransition property (or pledge or pledgee) has issued multiple series of bonds, such partial collections representing Energy Transition Charges and any other similar securitization system restoration charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds owners (or pledgee or pledgees), and among such series of system restoration bonds, pro-rata based upon the amounts billed with respect to each issuance series of securitization system restoration bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s account in proportion to the charges contained on the outstanding Bill to such Customer. All late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariff. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6 of this Annex. (iii) When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer’s or any and each Applicable REP’s account in proportion to the charges contained on the outstanding ▇▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or any REP shall be allocated as follows: (A) first to amounts owed to the Issuer, ETI and any other affiliate of ETI which is owed “System Restoration Charges” as defined in Sections 39.302(7) whether as supplemented by 36.403(f) of the Financing Act or another section of the Utilities Code (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of System Restoration Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex 1.I. (iv. ) The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power ETI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (v) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections SRC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition System Restoration Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. ii. If any Customer does not pay the full amount of any Bill ▇▇▇▇ to the Servicer, the amount paid by the Customer will be applied to all charges on the Bill▇▇▇▇, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill ▇▇▇▇ with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In additionIf there is more than one owner of Storm Recovery Property, or if the sole or any owner of Storm Recovery Property (or pledgee or pledgees) has issued multiple series of storm recovery bonds, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) Charges shall be allocated among all such securitization bonds owners (or pledgee or pledgees), and among such series of storm recovery bonds, pro-rata based upon the amounts billed with respect to each issuance series of securitization storm recovery bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedulestariff. iii. The When and if the service area becomes subject to retail competition, the Servicer shall apply payments received to each Customer’s or any and each Third-Party Collector’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such CustomerCustomer or Third-Party Collector. All Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or any Third-Party Collector shall be allocated as follows: (A) first to amounts owed to the Issuer, Cleco Power and any other Affiliate of Cleco Power which is owed “Storm Recovery Charges” as defined in the Securitization Law (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Storm Recovery Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariffs. If more than one series of Storm Recovery Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Storm Recovery Charges on such ▇▇▇▇ which were billed in respect of each such series. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6(e) of this Annex 1.I. iv. The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. For Customers on a Budget Billing Plan, the Servicer shall treat ETC SRC Collections received from such Customers as if such Customers had been billed for their respective Energy Transition Storm Recovery Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. ii. If Until retail competition is introduced into the Service Area, any Customer does not pay the full amount of any Bill to the Servicer, the amount paid amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer will shall be applied by the Servicer in the following order of priority: (1) to any amounts due with respect to customer deposits, (2) to all charges on the Bill, including without limitation electric service charges of ETI on the ▇▇▇▇ and to all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing▇▇▇▇, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-pro rata based upon the total amount billed, and (3) to tax and remaining charges billed to the Customers. Any amounts billed with respect allocated to each issuance Transition Charge payments pursuant to (2) above shall be further allocated as follows: (A) first to amounts owed to the Issuer, ETI and any other affiliate of securitization bonds, provided that ETI which is owed "Transition Charges" as defined in Section 39.302(7) whether as supplemented by 36.403(f) of the Securitization Law or another section of the Utilities Code (excluding any late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s account interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges contained on the outstanding Bill to such Customer. All ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Energy Transition Charges shall be allocated to the Issuer in accordance with the terms of the Rate SchedulesTariffs. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c6 of this Annex. When and if the Service Area becomes subject to retail competition, the Servicer shall apply payments received to each Customer's or any and each Applicable REP's account in proportion to the charges contained on the outstanding ▇▇▇▇ to such Customer or Applicable REP. Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ to a Customer or any REP shall be allocated as follows: (A) first to amounts owed to the Issuer, ETI and any other affiliate of ETI which is owed "Transition Charges" as defined in Sections 39.302(7) whether as supplemented by 36.403(f) of the Securitization Law or another section of the Utilities Code (excluding any late fees and interest charges), regardless of age, pro rata in proportion to their respective percentages of the total amount of their combined outstanding charges on such ▇▇▇▇; then (B) all late charges shall be allocated to the Servicer; provided that penalty payments owed on late payments of Transition Charges shall be allocated to the Issuer in accordance with the terms of the Tariffs. It is understood that such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(e) of this Annex 1. iv. I. The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power ETI and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. . For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections TC Payments received from such Customers as if such Customers had been billed for their respective Energy Transition Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicable) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (iv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. (ii. If any Customer does not pay the full amount of any Bill ) Subject to the Servicerclause (iii) below, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s or each Applicable Third-Party Collector’s account in proportion to the charges contained on the outstanding Bill ▇▇▇▇ to such Customer. All late charges Customer or Applicable Third-Party Collector. (iii) Any amounts collected by the Servicer that represent partial payments of the total ▇▇▇▇ shall be allocated to the Servicer; provided that penalty payments owed on late gas and electric charges in accordance with applicable PSC Regulations. (iv) With respect to partial payments of Energy Transition Charges the Electric ▇▇▇▇, such partial payments shall be allocated ratably, based on the amount owed for Billed QRSCs and other fees and charges, other than late charges, owed to the Servicer, and then to late charges. If more than one Series of Rate Stabilization Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Qualified Rate Stabilization Charges on such ▇▇▇▇ which were billed in accordance with the terms respect of the Rate Schedules. It is understood that each such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 1Series. iv. (v) The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power BGE and shall apply such funds to future Bill ▇▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (vi) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections payments received from such Customers as if such Customers had been billed for their respective Energy Transition Qualified Rate Stabilization Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicableiv) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (ivv).

Payment Processing; Allocation; Priority of Payments. i. (i) The Servicer shall post all payments received to Customer accounts as promptly as practicable, and, in any event, substantially all payments shall be posted no later than three (3) Servicer Business Days after receipt. (ii. If any Customer does not pay the full amount of any Bill ) Subject to the Servicerclause (iii) below, the amount paid by the Customer will be applied to all charges on the Bill, including without limitation electric service charges and all Energy Transition Charges (under the Financing Order or future LPSC orders) and all similar securitization charges (including, without limitation, Storm Recovery Charges) under existing or future LPSC orders, based, as to a Bill with charges covering more than one month, on the chronological order of billing, and, as to those charges with the same billing date, pro-rata. In addition, such partial collections representing Energy Transition Charges and any other similar securitization charges (including, without limitation, Storm Recovery Charges) shall be allocated among all such securitization bonds pro-rata based upon the amounts billed with respect to each issuance of securitization bonds, provided that late fees and charges may be allocated to the Servicer as provided in the Rate Schedules. iii. The Servicer shall apply payments received to each Customer’s or each Applicable Third-Party Collector’s account in proportion to the charges contained on the outstanding Bill B▇▇▇ to such Customer. All late charges Customer or Applicable Third-Party Collector. (iii) Any amounts collected by the Servicer that represent partial payments of the total B▇▇▇ shall be allocated to the Servicer; provided that penalty payments owed on late gas and electric charges in accordance with applicable PSC Regulations. (iv) With respect to partial payments of Energy Transition Charges the Electric B▇▇▇, such partial payments shall be allocated ratably, based on the amount owed for Billed QRSCs and other fees and charges, other than late charges, owed to the Servicer, and then to late charges. If more than one Series of Rate Stabilization Bonds is outstanding, the Servicer shall allocate amounts owed to the Issuer ratably based on the total amount of Qualified Rate Stabilization Charges on such b▇▇▇ which were billed in accordance with the terms respect of the Rate Schedules. It is understood that each such allocations may be made on a delayed basis in accordance with the reconciliations described in Section 6(c) of this Annex 1Series. iv. (v) The Servicer shall hold all over-payments for the benefit of the Issuer and Cleco Power BGE and shall apply such funds to future Bill B▇▇▇ charges in accordance with clauses (ii) and (iii) (as applicable) as such charges become due. v. (vi) For Customers on a Budget Billing Plan, the Servicer shall treat ETC Collections payments received from such Customers as if such Customers had been billed for their respective Energy Transition Qualified Rate Stabilization Charges in the absence of the Budget Billing Plan; partial payment of a Budget Billing Plan payment shall be allocated according to clause (ii) or (iii) (as applicableiv) and overpayment of a Budget Billing Plan payment shall be allocated according to clause (ivv).