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General Terms and Statement of Customer Rights & Responsibilities - June 2014

Purchase Agreement: Butterfly Energy (identified within as Company) agree to sell and Customer agrees to buy the quantities of natural gas and/or electricity necessary to serve Customer's usage pattern. Company, while acting as Customer's agent, will arrange for the purchase and supply of electricity and/or natural gas required by the Customer's usage and will manage the transportation capacity required to deliver the supply to the Local Distribution Company's (LDC) wholesale delivery point. Customer will promptly advise Company of any changes to its facility that may affect natural gas or electric usage or pattern of usage. Customer will reimburse Company for all utility charges paid by Company on Customer's behalf that are not a result of Company failure to perform hereunder. Residential customers may rescind this Agreement within three (3) business days of Company receipt of signed agreement or, for telephonic agreements, within three (3) business days of Customer receipt of a copy of the Agreement or, for electronic agreements, within three (3) business days of Customer receipt of electronic verification of Agreement acceptance. To rescind Agreement, Customer shall contact Company through any means listed in the section herein entitled "Customer Questions and Dispute Resolution." Company reserves the right to assign the rights and responsibilities for the provision of electric and/or gas supply under existing sales agreements to a third party.

Customer Information: Customer hereby appoints Company as exclusive limited agent, and authorizes Company to obtain Customer usage data from the LDC; to obtain Customer payment and credit history; and to execute required documents with the LDC on Customer's behalf. Company will not disclose any customer billing information to any third party unless authorized in writing by the Customer or as required by law. Company reserve the right to charge an administrative fee for providing customer information to third parties. The services provided by Company are protected by the terms and conditions of this Agreement. The provisions of the Home Energy Fair Practices Act (HEFPA), which apply to residential customers only, and/or the rules of the Public Service Commission (PSC) protect the rights of residential and business consumers as well as the rights and services of Company and the LDC. A summary of the rights and protections afforded under HEFPA is issued annually by the LDC and is available from the LDC upon request. The tariffs of the LDC may impose certain other obligations on customers.

Switching: Customer may cancel agreement at the end of its term and switch to another supplier or return to the LDC. It may take up to 60 days or more to complete the switch, during which time the Customer is responsible for all Company charges, including supply and delivery charges if applicable. The switch will be effective as of the next scheduled meter read date by the LDC or the date on which the LDC effects the transition.

Termination: Notwithstanding any other provision of this Agreement, in the event that any court or administrative agency takes any action that renders ineffective any material portion of the Agreement, prohibits performance hereunder, or otherwise constitutes a material adverse change for either party, the party adversely affected by such action may terminate this Agreement upon 30 days written notice, subject to any applicable cancellation fee. If Customer experiences, in the opinion of Company, a material adverse change in the ability to meet obligations hereunder, Company have the right to request information, security or other assurances from Customer sufficient to satisfy Company concerns. If Customer breaches any provision of this Agreement, Company may, in addition to seeking damages for such breach, immediately terminate this Agreement without further notice to Customer unless otherwise governed by HEFPA rules. A breach of this Agreement may occur if Customer fails to: make timely payment of any amount due for services provided hereunder; provide any required financial information, security or other assurance upon request; or otherwise fail to fully comply with the terms and conditions of this Agreement. At termination, should the Customer account not be paid in full, any outstanding amount will be subtracted from any deposit and interest and the balance will be returned to Customer. If account is not paid in full after application of any deposit and interest, Customer is responsible for the remaining balance. Company will notify the LDC if this Agreement ends and is not renewed or is cancelled. Customer will receive uninterrupted service from the LDC until Customer designates another provider of service, returns to the LDC, or service is shut off by the LDC under procedures approved by the NYS Public Service Commission. The LDC may impose additional obligations on customers through applicable tariff provisions. Customer may cancel the variable price electricity agreement upon 30 days written notice. The initial term of all natural gas agreements is one year. Variable price natural gas agreements continue on a monthly basis thereafter. Company may send renewal notification and renewal agreement terms 60 days prior to the end of the existing electric or natural gas agreement's current term. If the renewal terms are not acceptable, Customer may terminate the Agreement by providing written notification to Company within 15 days of receipt of the renewal notification. Company reserves the right to not offer a renewal notification.

Cancellation Penalty: Company may, at its sole discretion, assess a cancellation penalty to customers canceling service with any fixed, blended, or indexed price term agreement the greater of: a) $150.00 or b) a fee based on the remaining value of the agreement and may include the cost of terminating supply arrangements made on Customer's behalf. This fee does not include any charges by the LDC resulting from Customer's early cancellation.

Liabilities: The liability of Company to the Customer is limited by the ability of the LDC to effectively and reliably deliver the energy commodity supply to Customer's point of service. Company assume no liabilities for energy delivery that are addressed by applicable provisions of the LDC's PSC-approved tariffs. Accordingly, Company assume no liabilities relative to energy supply that are greater than those assumed by the regulated utility addressed by the applicable provisions of the LDC's PSC-approved tariffs. Company assume no liability for missed opportunities for customers who are not enrolled in an energy program through no fault of Company. The Customer assumes the responsibility of verifying their enrollment with Company if an enrollment confirmation letter or an initial billing is not received within 60 days of submitting a signed agreement for service.

Emergency Service: In the event of a natural gas (G) or electrical (E) emergency, Customer should contact their LDC: National Grid-1-800-892-2345; Con Edison 1-800-752-6633.

Customer Questions and Dispute Resolution: The customer service center is located at 623 Sunrise Highway, West Babylon, NY 11704. The phone number is 631-482-1500.

For Non-Residential Customers: In the event of a dispute arising from the terms of this agreement that is not resolved by discussions between the parties, the issue may be submitted by either party to mediation, arbitration, or small claims court. During the dispute, Customer must pay the undisputed portion of any invoice on or before the due date.

For Residential Customers: The NYS Department of Public Service will resolve residential customer complaints. The NYSDPS does monitor complaints against energy service company. If a residential Customer has a complaint with regards to Company policies or procedures, or any issues governed by HEFPA rules, Customer should seek resolution by calling 1-800-342-3377 or writing: Department of Public Service, Office of Consumer Services, 3rd floor, Three Empire State Plaza, Albany, NY 12223, or by visiting: www.dps.state.ny.us.

Bill Payment Process: Company may issue a consolidated supply and delivery bill either directly or through the LDC which may include a billing service fee. Company may otherwise issue a separate bill for energy supply services only in which case Customer will receive a separate bill from the LDC for delivery services. Bill payments are due according to the terms that appear on the bill, typically 23 days after the bill was created. Payments should be made directly to the entity issuing the bill. If a Company issued bill is not paid in full by the date noted, partial payments will be applied to the outstanding balance. The remaining balance will be subject to a late fee of 1.5% monthly after the late payment date. A history of late payments may be reason for cancellation of the Agreement and possible referral to a collection agent unless otherwise governed by HEFPA rules. Company reserve the right to conduct credit checks on applicants. Company provide bills based on LDC meter reads. The LDC will continue to obtain and/or estimate meter reads per their schedule according to PSC approved methods.

Measurement:The Customer and Company accept for the purposes of accounting for natural gas and/or electricity delivered under this agreement, the quantity, quality, and measurement determined by the LDC. This may include, but not be limited to, meter readings, estimating routines, and proration practices. Company assumes no liability for errors in measurement.

Indemnification: Customer is responsible for, and will indemnify Company, against any and all: penalties resulting from Customer's failure to fully comply with this Agreement; and damage or injury caused by the natural gas or electricity after its delivery to the Customer's facility. Company are responsible for, and will indemnify Customer against, any and all damages or injury caused by the natural gas or electricity before its delivery to the customer's facility.

Force Majeure: Except as otherwise set forth herein, Force Majeure is the only excuse for non-performance and all other excuses (at law or in equity) are waived. Except for payment obligations, a Force Majeure event will, upon notice, excuse both parties' performance during the event. "Force Majeure" means those events not reasonably anticipated on the effective date hereof and outside the control of the claiming party and include "Force Majeure" events associated with the LDC, the commodity supplier or others used to deliver natural gas or electricity to Customer's facility, curtailment or disruption by the LDC, the commodity supplier or the LDC's appropriation of either natural gas or electricity.

Miscellaneous: These General Terms and Statement of Customer Rights & Responsibilities are superseded by all authorized revisions of this document. Company reserve the right to revise the general provisions of this document as necessary, supplying customers with an updated copy annually as required by PSC law. Company reserve the right to change provisions and terms and conditions in response to PSC regulatory changes and requirements or LDC tariff changes which may affect our ability to serve Customer under the existing terms and conditions. In such instances, we reserve the right to alter contract terms and conditions with a 30-day notice. Company will supply the Customer with a current version of this document annually and upon request. No modifications to the Sales Agreement terms may be made except for the following: Customer may modify the Sales Agreement, in writing, only in the event of a change to personal data or relocation. Should Company need to make substantive changes to the Sales Agreement terms, Customer will receive written notice including the option of either acceptance or cancellation. The Sales Agreement shall be interpreted in accordance with the laws of the State of New York. Failure of one provision under the law does not affect the remaining provisions in the agreement.
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631.482.1500

The Butterfly Energy Consultants customer service department is open Monday through Friday, 9 a.m. to 5 p.m. EST. Please feel free to contact us should you have any questions or concerns regarding this website or your email subscription at info@butterflyesco.com. We pride ourselves in responding promptly to reader inquiries.

Butterfly Energy Consultants
623 Sunrise Highway
West Babylon, NY 11704
631.482.1500
info@butterflyesco.com
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