Disclosure Statement For Generation Service With Discount Power, Inc.

This is an agreement for electric generation service between you (also referred to as “you” “your” and “customer”) and Discount Power, Inc. (“DPI”). This agreement is intended for residential and small business customers.

Subject to DPI’s acceptance of this agreement and enrollment by your Electric Distribution Company (“EDC”), you agree to become a DPI customer for purposes of supplying the electric generation portion of your electric service and you agree to DPI being your agent for purposes of arranging for your electric generation needs. In order to facilitate that service, you hereby consent to your EDC giving DPI access to your utility information, which includes your account number, payment history, load profile and usage as well as other information related to your electric account. DPI will not give or sell your personal information to any unaffiliated party without your consent unless we are required to do so by law or it is necessary to enforce this Disclosure Statement. This Disclosure Statement and DPI’s Confirmation are, together, the entire agreement between you and DPI with regard to your purchase and our sale of electricity. You agree to purchase electric generation service from DPI for the Account Number(s) and Service Address(es) identified by you during the Telephone Enrollment-Third Party Verification (“TPV”) or the Web Enrollment which serves as an Electronic Signature both of which will be followed by written confirmation by U.S. Mail or electronic mail.

Right of Rescission - You may rescind this agreement without penalty at any time before midnight of the 3rd business day after receiving this Disclosure Statement by contacting DPI by phone, in writing or electronically (see contact information below).

Background - DPI is licensed by the Pennsylvania Public Utility Commission (“PAPUC”) to offer and supply electric generation services in Pennsylvania; our PUC license number is A-2012-2328004. We set the generation prices and charges that you pay, the Public Utility Commission regulates distribution prices and services. The Federal Energy Regulatory Commission regulates transmission prices and services. You will receive a single bill from the Electric Distribution Company that will contain the EDC’s charges and DPI’s charges.

Terms of Service

1. Rates, Billing and Payment - You will pay the price indicated on the attached contract summary for the Initial Term. The price will remain constant for the Initial Term of the contract which is identified on the attached contract summary.

   All prices include Generation Charges, Transmission Charges and Estimated Total State Taxes, including the Gross Receipts Tax, but exclude applicable state and local Sales Taxes. If you are claiming exemption from any tax, you must provide an exemption certificate or acceptable alternate proof of exemption.

   You will receive a single bill from your EDC that includes DPI’s Generation Charges as well as the EDC’s delivery charges. The bill will contain, among other charges, the EDC’s delivery charge, any other charges collected by the EDC and DPI’s Generation Charge for the amount of electricity you used during the billing cycle. The amount of electricity used by you will be measured or estimated by the EDC. Your payment will be due to the EDC by the date specified in the EDC bill. If you fail to pay it on time, you could be subject to interest and late charges imposed by the EDC, and your service could be disconnected.

   To obtain DPI’s average monthly billed prices since we began service in Pennsylvania for your rate class and EDC territory, please contact DPI at 1-877-259-7693. Please note that historical pricing is not indicative of present or future pricing.

2. Length of Agreement - You will buy your electric generation service for the applicable account(s) from DPI beginning on the date that is set by your EDC. You will continue to buy your electric generation service for the applicable account(s) from DPI at your fixed rate for the Initial Term. Prior to the end of the Initial Term, you will receive notice from DPI as described below in Section 7 and, if you do not respond to those notices, this Agreement will renew on a month-to-month basis, at a variable rate.
3. Penalties, Fees and Exceptions - There is no cancellation fee applied by DPI for the termination of this contract.
4. Price Variability - This is a fixed rate contract for twelve (12) billing cycles of service. There will be no variability of price during the fixed rate contract term. A Monthly Electric Management Fee may apply to your Fixed Rate Plan. Please see your Contract Summary for details. Prior to the end of the fixed rate contract term, you will be notified of your options going forward as described below in Section 7, and any changes to price variability that could result.
5. Product Composition - If the product you contracted for contains renewable content above the minimum required by PA regulations, the amount will be identified in the Contract Summary. Renewable energy facilities generating renewable energy credits (“REC’s”) will vary, and in addition to the Pennsylvania Alternative Energy Portfolio Standard minimums, may include a combination of regional or national sources such as wind, renewable biomass, solar and small scale hydro. Further details regarding sources of renewable energy may be included in the Welcome Letter and/or in the Environmental Disclosure Statement.
6. Cancellation Provisions - For all Agreements, either party can cancel by contacting the other. Timing of your cancellation is subject to EDC tariff provisions, including the timing of your meter read. You can call, write, or contact DPI electronically to cancel this Agreement (contact information below). Some common reasons for cancellation are: Non-Payment: If your electric service is terminated by your EDC, then this Agreement is cancelled on the date your electric service is terminated. You will still owe us for amounts unpaid for our charges for electric generation service up to the date of cancellation. Company-Initiated Cancellation: If we cancel this Agreement for any reason other than for customer non-payment, we will provide written notice to you at least 30 days prior to the cancellation. Customer-Initiated Cancellation: If you elect to cancel a Fixed Rate Plan under this Agreement prior to the end of the Term, you will pay a cancellation fee as set forth above. If you elect to cancel after the Term expires, there is no cancellation fee. Customer Move: It shall not be considered a cancellation or early termination of this agreement if you change service addresses within the state and remain with DPI. Following cancellation of service under this Agreement you may contact your EDC (contact information below) to arrange for service from a different service provider.
7. Renewal Provision/Agreement Expiration/Change in Terms - You specifically consent to receive notices by electronic communication from DPI in the form of email/text messages where permitted. If you have a fixed term contract approaching the expiration date, or whenever we propose to change the terms of service in any type of contract, you will receive two separate written notifications that preceded either the expiration date or the effective date of the proposed changes. These notifications will explain your options going forward. For Fixed Rate plans, following the end of the Initial Term you will pay a Variable Rate if you do not respond to any of these subsequent notices. The Variable Rate will be calculated monthly based on a variable price methodology. The Variable Rate may change on a month-to-month basis in response to DPI margin requirements and market conditions, including but not limited to such factors as PJM wholesale market conditions applicable to the EDC’s service territory. You can find our current rates by calling us at 1-877-259-7693.
8. Dispute Procedures - Contact us with any questions concerning our terms of service. You may call the PAPUC if you are not satisfied after discussing your terms with us.

9. Contact Information - If you need to contact DPI, you can write to us at:
   Discount Power, Inc.
   6 Armstrong Road
   Shelton, CT 06484
   or you can call us weekdays from 8:30 a.m. to 5:00 p.m. ET at 1-877-259-7693, or visit us on the web at www.discountpowerinc.com.

   EDC name and phone number and the Provider of Last Resort name and phone number (in case of emergency, including electric outage): If you have an electric outage, service interruption or other emergency, or billing question, you can contact your EDC:

   PECO: 800-494-4000

   Universal Service Program: Your EDC has programs available to customers who are on a limited or fixed income to assist them with utility bills. Some of these programs might include bill payment assistance and weatherization services. Information on your EDC’s Universal Service Program can be obtained by contacting any of the companies listed below:

   PECO: 800-494-4000

   To contact the Pennsylvania Public Utility Commission:
   Pennsylvania Public Utility Commission
   400 North Street, Harrisburg, PA 17120
   UTILITY CHOICE HOTLINE: 1-800-692-7380

10. Limitation of Liability - LIABILITIES NOT EXCUSED BY REASON OF FORCE MAJEURE OR OTHERWISE SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES. DPI WILL NOT BE LIABLE TO YOU OR ANY THIRD PARTY FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES. DPI IS NOT LIABLE FOR INTERRUPTIONS TO, OR SHORTAGES OF, ELECTRICITY SUPPLY, NOR ANY ASSOCIATED LOSS OR DAMAGE RESULTING THEREFROM. THESE LIMITATIONS APPLY WITHOUT REGARD TO THE CAUSE OF ANY LIABILITY OR DAMAGE. THERE ARE NO THIRD-PARTY BENEFICIARIES TO THIS AGREEMENT.
11. Representations and Warranties - THE ELECTRICITY PROVIDED UNDER THIS AGREEMENT WILL MEET THE STANDARDS OF THE APPLICABLE EDC AND WILL BE SUPPLIED FROM A VARIETY OF ELECTRIC GENERATION SOURCES INCLUDING THE ELECTRICITY PROVIDED PURSUANT TO ANY RENEWABLE ENERGY PRODUCT REQUIREMENT. DPI MAKES NO REPRESENTATIONS OR WARRANTIES OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT. DPI EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
12. Assignment - DPI may assign this agreement to another Pennsylvania licensed electricity supplier in its sole discretion. DPI will provide 30 days prior notice before assignment. After assignment, DPI will have no further obligations under this agreement. This agreement is binding upon you and DPI, and will further bind each of your successors and permitted assigns.
13. Force Majeure - DPI will use reasonable efforts to provide electricity supply to you pursuant to this agreement. Force Majeure events are those that are out of the control of the parties and may prevent us from performing our obligations under this agreement. Force Majeure events include, but are not limited to certain Acts of God, sabotage, war, Acts of terrorism, natural disasters and other cataclysmic events. In these instances where the parties are unable to perform their obligations and with written notice given in a timely manner, one or both parties may be excused from performing their obligations under this agreement for a reasonable period of time.

Please retain this document for your records.