Common use of Variable Rate Clause in Contracts

Variable Rate. If you enrolled in a variable rate plan, the variable rate per kWh for the first month will be as indicated in the Welcome Letter. Thereafter, or if your Agreement converts to a variable-rate plan, the rate for electricity will be a variable rate; variable rates may be higher or lower each month, will be set in SmartEnergy’s sole discretion, and are not based on a market or index price. SmartEnergy typically considers some or all of the following factors when setting its variable rates: - publicly available competitor pricing; - strategic business objectives; - customer retention or attrition; - market volatility or uncertainty; - anticipated customer usage; - the cost of procuring power including wholesale prices, any ancillary service costs, capacity auctions, utility fees, and transmission and distribution losses; - weather, supply congestion and infrastructure issues; - legal or regulatory issues; and - profit margin. This list of factors is not exhaustive, and no single factor will determine the rate. Some factors may be estimated or projected, and the factors SmartEnergy considers may be weighed differently each month. SmartEnergy may spread sudden cost increases over multiple billing cycles so that its customers do not bear the burden of such increases in a single month. In addition, SmartEnergy seeks to acquire the majority of its anticipated electricity supply in advance rather than from the spot market. For all of these reasons, the variable rate may not correlate with changes in wholesale market prices, with the Utility’s rate or with other suppliers’ rates. The variable rate assigned to any particular individual account may vary from the rate assigned to any other particular individual account, even though such accounts may be in the same utility rate class. YOU WILL NOT RECEIVE A NOTICE OF THE UPCOMING VARIABLE RATE; UNLESS YOU CONTACT SMARTENERGY, YOU WILL NOT KNOW THE RATE UNTIL THE TIME OF BILLING. To access current, available future and highest and lowest historical rates over the preceding 12 months, contact one of our customer care representatives at 1-800-443- 4440 (toll-free) Monday through Friday from 8:00 a.m. to 6:00 p.m. E.T., and Saturday from 9:00 a.m. to 6:00 p.m. E.T. or visit our website xxx.xxxxxxxxxxx.xxx. THERE IS NO LIMIT ON HOW MUCH THE RATE MAY CHANGE FROM ONE BILLING CYCLE TO THE NEXT. THE RATE CAN CHANGE EACH BILLING PERIOD. However, depending on the product and plan that you select, the variable rate applicable to your Agreement may have limits on price variability (monthly increases, lifetime cap, etc.) which if applicable will be indicated in the Welcome Letter.

Variable Rate. If you enrolled in a variable rate plan, the variable rate per kWh for the first month will be as indicated in the Welcome LetterLetter or the Contract Summary. Thereafter, or if your Agreement converts to a variable-rate plan, the rate for electricity will be a variable rate; variable rates rate that may be higher or lower each month, will be set in SmartEnergy’s sole discretion, and are not based on a market or index price. SmartEnergy typically considers some or all of the following factors when setting its variable rates: - publicly available competitor pricing; - strategic business objectives; - customer retention or attrition; - market volatility or uncertainty; - anticipated customer usage; - the cost of procuring power including wholesale prices, any ancillary service costs, capacity auctions, utility fees, and transmission and distribution losses; - weather, supply congestion and infrastructure issues; - legal or regulatory issues; and - profit margin. This list of factors is not exhaustive, and no single factor will determine the rate. Some factors may be estimated or projected, and the factors SmartEnergy considers may be weighed differently each month. SmartEnergy may spread sudden cost increases over multiple billing cycles so that its customers do not bear the burden of such increases in a single month. In addition, SmartEnergy seeks to acquire the majority of its anticipated electricity supply in advance rather than from the spot market. For all of these reasons, the variable rate may not correlate with changes in wholesale market prices, with the UtilityEDC’s rate or with other suppliers’ rates. The variable rate assigned to any particular individual account may vary from the rate assigned to any other particular individual account, even though such accounts may be in the same utility rate class. YOU WILL NOT RECEIVE A NOTICE OF THE UPCOMING VARIABLE RATE; UNLESS YOU CONTACT SMARTENERGY, YOU WILL NOT KNOW THE RATE UNTIL THE TIME OF BILLING. To access current, available future and highest and lowest historical rates over the preceding 12 24 months, you may contact one of our customer care representatives at 10-800000-443- 4440 000-0000 (toll-free) Monday through Friday from 8:00 a.m. to 6:00 7:00 p.m. E.T., and Saturday from 9:00 a.m. to 6:00 p.m. E.T. E.T., or visit the Delaware page on our website xxx.xxxxxxxxxxx.xxx. THERE IS NO LIMIT ON HOW MUCH THE RATE MAY CHANGE FROM ONE BILLING CYCLE TO THE NEXT. THE RATE CAN CHANGE EACH BILLING PERIOD. However, depending on the product and plan that you select, the variable rate applicable to your Agreement may have limits on price variability (monthly increases, lifetime cap, etc.) which if applicable will be indicated in the Welcome Letter.

Variable Rate. If you enrolled in a variable rate plan, the variable rate per kWh for the first month will be as indicated in the Welcome LetterLetter or the Contract Summary. Thereafter, or if your Agreement converts to a variable-rate plan, the rate for electricity will be a variable rate; variable rates will be established monthly may be higher or lower each month, will be set in SmartEnergy’s sole discretion, and are not based on a market or index price. SmartEnergy typically considers some or all of the following factors when setting its variable settingvariable rates: - publicly available competitor pricing; - strategic business objectives; - customer retention or attrition; - market volatility or uncertainty; - anticipated customer usage; - the cost of procuring power including wholesale prices, any ancillary service costs, capacity auctions, utility fees, and transmission and distribution losses; - weather, supply congestion and infrastructure issues; - legal or regulatory issues; and - profit margin. This list of factors is not exhaustive, and no single factor will determine the rate. Some factors may be estimated or projected, and the factors SmartEnergy considers may be weighed differently each month. SmartEnergy may spread sudden cost increases over multiple billing cycles so that its customers do not bear the burden of such increases in a single month. In addition, SmartEnergy seeks to acquire the majority of its anticipated electricity supply in advance rather than from the spot market. For all of these reasons, the variable rate may not correlate with changes in wholesale market prices, with the UtilityEDC’s rate or with other suppliers’ rates. The variable rate assigned to any particular individual account may vary from the rate assigned to any other particular individual account, even though such accounts may be in the same utility rate class. YOU WILL NOT RECEIVE A NOTICE OF THE UPCOMING VARIABLE RATE; UNLESS YOU CONTACT SMARTENERGY, SMARTENERGY YOU WILL NOT KNOW THE RATE UNTIL THE TIME OF BILLING. To access current, available future and highest and lowest historical rates over the preceding 12 months, contact one of our customer care representatives at 1-800-443- 4440 (toll-free) Monday through Friday from 8:00 a.m. to 6:00 7:00 p.m. E.T., and Saturday from 9:00 a.m. to 6:00 p.m. E.T. E.T., or visit our website xxx.xxxxxxxxxxx.xxx. THERE IS NO LIMIT ON HOW MUCH THE RATE MAY CHANGE FROM ONE BILLING CYCLE TO THE NEXT. THE RATE CAN CHANGE EACH BILLING PERIOD. However, depending on the product and plan that you select, the variable rate applicable to your Agreement may have limits on price variability (monthly increases, lifetime cap, etc.) which if applicable will be indicated in the Welcome Letter.

Variable Rate. If you enrolled in a variable rate plan, the variable rate per kWh for the first month will be as indicated in the Welcome LetterLetter or the Contract Summary. Thereafter, or if your Agreement converts to a variable-rate plan, the rate for electricity will be a variable rate; variable rates may be higher or lower each month, will be set in SmartEnergy’s sole discretion, and are not based on a market or index price. This price includes Sales and Use Tax. SmartEnergy typically considers some or all of the following factors when setting its variable rates: - publicly available competitor pricing; - strategic business objectives; - customer retention or attrition; - market volatility or uncertainty; - anticipated customer usage; - the cost of procuring power including wholesale prices, any ancillary service costs, capacity auctions, utility fees, and transmission and distribution losses; - weather, supply congestion and infrastructure issues; - legal or regulatory issues; and - profit margin. This list of factors is not exhaustive, and no single factor will determine the rate. Some factors may be estimated or projected, and the factors SmartEnergy considers may be weighed differently each month. SmartEnergy may spread sudden cost increases over multiple billing cycles so that its customers do not bear the burden of such increases in a single month. In addition, SmartEnergy seeks to acquire the majority of its anticipated electricity supply in advance rather than from the spot market. For all of these reasons, the variable rate may not correlate with changes in wholesale market prices, with the UtilityLDC’s rate or with other suppliers’ rates. The variable rate assigned to any particular individual account may vary from the rate assigned to any other particular individual account, even though such accounts may be in the same utility rate class. YOU WILL NOT RECEIVE A NOTICE OF THE UPCOMING VARIABLE RATE; UNLESS YOU CONTACT SMARTENERGY, YOU WILL NOT KNOW THE RATE UNTIL THE TIME OF BILLING. To access current, available future and highest and lowest historical rates over the preceding 12 months, contact one of our customer care representatives at 1-800-443- 4440 (toll-free) Monday through Friday from 8:00 a.m. to 6:00 7:00 p.m. E.T., and Saturday from 9:00 a.m. to 6:00 p.m. E.T. or visit our website xxx.xxxxxxxxxxx.xxx. THERE IS NO LIMIT ON HOW MUCH THE RATE MAY CHANGE FROM ONE BILLING CYCLE TO THE NEXT. THE RATE CAN CHANGE EACH BILLING PERIOD. However, depending on the product and plan that you select, the variable rate applicable to your Agreement may have limits on price variability (monthly increases, lifetime cap, etc.) which if applicable will be indicated in the Welcome Letter.