Program Rules/Customer Agreement

Program Rules

Eligibility:

• Open to all metered businesses and organizations within Pepco's Maryland service territory, regardless of rate class or kW usage.
• Customer must have qualified central air conditioner(s) or heat pump(s).
• Customer must have control of thermostat. If customer is a tenant, landlord approval must be certified.

Credits:

• Installation Credit will be applied to customer's bill after the control device is installed.
• Energy Wise Rewards Bill Credits:
• Applied on June, July, August, September, and October bills (annual amount split into five monthly credits). Note: This is a billing month, not necessarily a calendar month.
• Credit will only be applied if account is marked as participating on the last day of the bill period.
• Customer will receive credit for the first month of participation in the program (if first month is one of months designated above).
• If customer elects to be removed from the program, customer will not receive any credit for the last month participating in the program.

  Installation Credit*	Energy Wise Rewards Bill Credit* applied billing months of June–October
  $80	$16/month

  *Credits subject to change in future years

Voluntary Program Withdrawal

• If customer elects to be removed from the program, the device will be disabled in the operational and billing systems effective immediately. Note: Device will not be physically removed.

Conservation Periods

• Conservation periods will generally occur June through October on Peak Savings Days.
• There is no limit on the number of Peak Savings Days to be called each year, but expectations are most years will result in five or less events.
• Conservation periods will most likely last 3–6 hours.
• Customers will be notified of conservation periods via indicator lights on the Energy Wise Rewards for Business device, event messaging posted on pepco.com, and possibly by news releases the day before or the day of the event.
• If an emergency event (Priority Peak Day) is called by PJM** for reliability reasons, it will last until the situation is resolved; therefore, Pepco cannot state how long an event of this type may last.
• A customer may override two (2) events a year; however, a customer may not override a Priority Peak Day (PJM-required event).

**PJM is the organization that manages the generation and transmission of electricity for all customers of the Middle Atlantic Region and portions of the Midwest. PJM determines when operating conditions are approaching the limits of the system and what actions are to be taken to avoid blackouts or other system emergencies potentially affecting large areas. PJM schedules all power plant and load management operations through an auction mechanism to obtain lowest reasonable cost of electricity for supply to electric utility customers in the region. Individual customers may also contract with independent generating companies for a portion of their electric supply, such as for renewable energy, but delivery of this energy across the regional grid is coordinated through the PJM operations control center to maintain system stability for all areas within our region.

ENERGY WISE REWARDS CUSTOMER AGREEMENT

1. BY SUBMITTING YOUR ENROLLMENT CARD, AND BY YOUR PARTICIPATION IN THE PROGRAM, YOU ("CUSTOMER") AGREE TO THE TERMS OF THIS PARTICIPATION AGREEMENT. IF YOU DO NOT AGREE WITH THESE TERMS, PLEASE CONTACT A PEPCO REPRESENTATIVE TO REQUEST THAT YOUR NAME BE REMOVED FROM THE ENERGY WISE REWARDS FOR BUSINESS PROGRAM ("THE PROGRAM") BEFORE ANY EQUIPMENT IS INSTALLED. IF YOU DO NOT AGREE TO THESE TERMS AFTER THE EQUIPMENT HAS BEEN INSTALLED, PLEASE CONTACT PEPCO TO HAVE YOUR EQUIPMENT REMOVED. A PORTION OF THE INSTALLATION CREDIT WILL BE REVERSED IF CANCELLATION OCCURS WITHIN 12 MONTHS OF INSTALLATION.
2. Pepco (or its Contractor) will install a programmable thermostat inside Customer's facility, or a communication device outside Customer's facility adjacent to Customer's central air conditioner unit (both referred to herein as "the Equipment"). While it is not necessary for Customer to be present during installation of the outside device, Customer may request an appointment so that Customer may be present for its installation. If Customer is present, Customer may advise the installer as to where the device is to be placed. Installer will accommodate Customer's request so long as the desired location will provide required functionality. Customer agrees that, if the programmable thermostat is to be installed in Customer's facility, Customer will need to make an appointment and have the appropriate business representative present for the installation. Pepco (or its contractor) will be responsible for properly disposing of the old thermostat(s), if necessary. Customer agrees to provide Pepco or its Contractor with access, at reasonable times, to Customer's premises to install, inspect, maintain, and/or repair the Equipment.
3. Customer understands that the Equipment will permit Pepco to cycle off and on the compressor on Customer's central air conditioner unit or heat pump during times of high overall electricity demand.
   As a participant, Customer may experience a temperature increase during a conservation period. Variables such as insulation, shaded windows, the use of ceiling fans, and the amount of foot traffic can also affect the temperature. A typical facility may experience a temperature change of 1 to 3 degrees.
4. The incentives Customer will receive in consideration for participation are as detailed below. Pepco may, from time to time, modify the incentive structure. The Equipment shall remain the property of Pepco. None of the Equipment shall become a fixture. Customer agrees to notify Pepco if Customer disconnects or removes the Equipment. This Agreement and the Equipment supplied by Pepco are not assignable or otherwise transferable by Customer.

   Installation Credit*	Energy Wise Rewards Bill Credit* applied billing months of June–October
   $80	$16/month

   *Credits subject to change in future years

5. Customer shall have the right at any time to terminate the service by notifying Pepco in writing or by telephone. If Customer decides to terminate after the initial twelve (12) month period, Customer will not receive the monthly credit for the billing cycle (i.e., the monthly billing period) in which Customer requests to cancel. (Cancellation during the initial twelve (12) month period is covered in paragraph 1, above.)
6. Pepco will not be liable to Customer or to any third party for any losses or damages, including loss of profits, loss of earnings, loss of business opportunities, and personal injuries (including death), including, without limitation, any damage resulting from or arising out of Customer's participation in this Program.
7. Customer understands that Pepco assumes no responsibility for and shall have no responsibility for the condition or repair of Customer's central air conditioner or other equipment. Customer understands that Customer is responsible for the repair and maintenance of Customer's equipment.
8. THE PROGRAM AND EQUIPMENT ARE PROVIDED "AS IS." CUSTOMER UNDERSTANDS AND ACKNOWLEDGES THAT PEPCO MAKES NO REPRESENTATIONS OR WARRANTIES ABOUT THE EQUIPMENT OR PROGRAM, WHICH ARE BOTH PROVIDED WITHOUT WARRANTY OF ANY KIND, INCLUDING, WITHOUT LIMITATION, ALL IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT. ALL WARRANTIES ARE DISCLAIMED BY PEPCO TO THE FULLEST EXTENT PERMITTED BY THE LAW.
9. Customer agrees to hold harmless, defend, and indemnify Pepco, and its subsidiaries, affiliates, officers, agents, and employees, from and against any third-party claim arising from or in any way related to your improper use of the Equipment or Program, including any liability or expense arising from all claims, losses, damages (actual and consequential), suits, judgments, litigation costs, and attorneys' fees, of every kind and nature. In such a case, Pepco will provide you with written notice of such claim, suit, or action.
10. This Agreement constitutes the entire agreement between Customer and Pepco. No undertaking, representation, or warranty made by any agent or representative of Pepco in connection with the sale, installation, maintenance, or removal of Pepco's services or Equipment shall be binding on Pepco except as expressly included herein.
11. Customer understands that Pepco reserves the right to modify the terms of the Energy Wise Rewards for Business Program. Customer will receive notice of such Program modification. Customer's continued participation in the Program following notice of such change shall be considered acceptance of such modification.
12. Pepco may assign or delegate any of its rights or obligations under this Agreement to independent contractors or other third-party organizations. Customer's rights may not be assigned or transferred without Pepco's written consent.
13. The above provisions regarding events beyond Pepco's control, warranties, disclaimers of warranty and liability, and termination will survive the termination of this Agreement. Failure to insist on strict performance of the terms will not operate as a waiver of any subsequent default or failure of performance. If any part of the above is determined to be invalid or unenforceable by a court of competent jurisdiction, then the invalid or unenforceable provision will be deemed ineffective and the remainder of the Agreement shall continue in effect. No joint venture, partnership, employment, or agency relationship exists between Customer and Pepco as a result of this Agreement.