Customer Agreement Electric Water Heater Program

Eligibility:

• PeakRewards is open to active BGE residential account holders regardless of their electricity supplier and is available in certain areas.
• Customer must have an electric tank water heater.
• If customer is a renter, they must certify they have received approval of the landlord.

Credits:

• A first year bonus and monthly bill credits are provided once the device is installed but only for the customer of record at the time of installation.
• A customer moving into a home with a PeakRewards device will receive ongoing bill credits but will not receive the first year bonus credits since the bonus is intended for the initial enrollment and installation of a device at a customer’s home.
• Monthly credits:
  • Applied on November, December, January and February bills (annual amount split into 4 monthly credits). Note: This is billing month, not necessarily calendar month.
  • Bonus credits are only given for the first year in which you participate in the PeakRewards program. Four months of bonus credits will be issued on the same schedule as detailed above but with the customer receiving the balance of any bonus credits the following winter season.
  • If the electric water heater switch is installed during the winter months (November through February), the credit will be applied toward all subsequent winter months. For example, if installed in December, before the meter reading, customer will receive three months of credits for December, January and February, and will continue each November through February thereafter.
  • If the device is installed after the meter reading and the mailing of the monthly bill in a winter month, customer will receive credits starting the following month. Credits will not be prorated based upon the timing of the enrollment and installation.
  • Customers can opt-out of the program at any time except during an emergency event and the transition period to normal operation of their unit after an emergency event. However, winter bill credits will no longer be applied to the customer’s BGE bill. Removal from the program is usually processed in 3-5 business days, but may take up to 7 business days. The switch will be left installed but will not be activated after a customer opts out of the program.

*A customer moving into a home with an existing PeakRewards device will receive ongoing bill credits, if they continue to participate in the program, but will not receive the first-year matching bonus. The first-year matching bonus credits are only intended for the initial customer enrollment and device installation. For other frequently asked questions, visit BGEsavings.com/faqs.

**Credits subject to change in future years.

Electric Water Heater Cycling Events

• Typically, cycling occurs sometime between the hours of noon and 8 p.m. during the summertime. During the winter, cycling events will typically occur between the hours of 6 a.m. and 9 a.m. or 6 p.m. and 9 p.m.
• The length of a cycling event will depend on the type of event (emergency or non-emergency) and the need for BGE to reduce electric demand. It could last up to 7 hours or longer if system reliability requires a longer transition to normal operations. BGE is unable to predict the number of times it will cycle electric water heaters each year, nor maximum duration.
• Events will typically occur during the summer months of June through September and the winter months of November through February but can happen during other months.
• If an emergency event is called, it will generally last until the situation is averted, which may be more hours than non-emergency events. Additionally, even after the emergency event ends, there will be a transition period until full operation of your unit is restored during which cycling changes and overrides will be prohibited as described below.

A customer may override two non-emergency events per season per year; however, a customer may not override an emergency event or the transition period after the emergency event. One season is defined as the months of June-September and another is October-May. Also, if you scheduled an override and subsequently an emergency event is called, your override will be cancelled.

Impact on Customer’s Electric Water Heater

• The BGE PeakRewards program does not repair electric water heater units. If an electric water heater malfunctions during an event or otherwise, the customer is responsible for contacting their own technician for repairs. Prior to contacting a technician, customers should determine if the water heater is off due to cycling by looking for the red light on the switch, or by checking PeakRewards Online Access and viewing their cycling status.
• The PeakRewards equipment (Smart Switch) should not cause damage to a customer’s electric water heater. This device simply turns off the flow of electricity to the unit. Manufacturer’s warranties will not be voided by the installation of PeakRewards equipment.
• In accordance with your county permitting process, an inspection of your electric water heater installation may be conducted. You will receive information regarding this process when you schedule your installation. In addition, BGE’s quality assurance personnel may contact you to schedule an inspection.

Customer Agreement

1. BY SUBMITTING YOUR ENROLLMENT, AND / OR BY YOUR PARTICIPATION IN THE PROGRAM YOU (“CUSTOMER”) AGREE TO THE TERMS OF THIS PARTICIPATION AGREEMENT.
2. BGE (or its Contractor) will install a switch on an adjacent wall or other permanent structure. BGE does not install the new PeakRewards switch directly on electric water heaters. Customer’s electric water heater switch referred to herein as “the Equipment”. Customer will need to make an appointment and have a responsible adult at home for the Installation. Customer agrees to provide BGE or its Contractor with access, at reasonable times, to Customer’s premises to install, inspect, maintain and/or repair the Equipment. Customer is responsible for potential issues due to aging/inefficient electric water heaters.
3. Customer understands that the equipment switch will permit BGE to cycle off the flow of electricity to the electric water heater during times of high overall electricity demand as detailed below:

Participation Level	First Year Bonus*	Winter Credits** Per Month: November, December, January & February	First Year Total (Credits Plus Bonus)
100%	$25	$6.25 / month	$50

*Only applicable for the customer of record at the time of device installation.

**Credits subject to change in future years



4. A customer moving into a home with a PeakRewards device will receive ongoing bill credits if they continue to participate in the program, but will not receive the first year bonus credits since the bonus is intended for the initial enrollment and installation of a device at a customer’s home. For other frequently asked questions, visit BGEsavings.com/faqs.
5. The incentives the Customer will receive in consideration for participation are as detailed above. BGE may, upon approval from the Maryland Public Service Commission, modify the incentive structure. The Equipment shall remain the property of BGE. Customer agrees to notify BGE if Customer disconnects or removes the Equipment. This Customer Agreement is not assignable or otherwise transferable by Customer.
6. Customer shall have the right at any time to terminate the service by notifying BGE in writing or by telephone. Customers will no longer receive bill credits upon termination of participation in the program. Such termination will not be effective during an emergency event and the transition period to normal operation after an emergency event. Program termination requests are usually processed within 3-5 business days, but may take up to 7 business days.
7. BGE will not be liable to the 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 the Customer's participation in this Program.
8. Customer understands that BGE assumes no responsibility for the condition or repair of Customer’s Equipment. Customer understands that Customer is responsible for the repair and maintenance of their own equipment.
9. THE PROGRAM AND EQUIPMENT ARE PROVIDED "AS IS." CUSTOMER UNDERSTANDS AND ACKNOWLEDGES THAT BGE 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 BGE TO THE FULLEST EXTENT PERMITTED BY THE LAW.
10. Participant agrees to hold harmless, defend, and indemnify BGE, and its subsidiaries, affiliates, officers, agents, and employees from and against any third-party claim arising from or in any way related to 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, BGE will provide you with written notice of such claim, suit or action.
11. This Agreement constitutes the entire agreement between the Customer and BGE and is consistent with the tariff filed with the Maryland Public Service Commission. No undertaking, representation or warranty made by any agent or representative of BGE in connection with the sale, installation, maintenance or removal of BGE's services or Equipment shall be binding on BGE except as expressly included herein.
12. Customer understands that BGE reserves the right to modify the terms of PeakRewards subject to approval from the Maryland Public Service Commission. 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.
13. BGE may assign or delegate any of our rights or obligations under this Agreement to independent contractors or other third-party organizations. Customer’s rights may not be assigned or transferred without BGE’s written consent.

The above provisions regarding events beyond BGE’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 BGE as a result of this Agreement.