MULTI-RATE TERMS AND CONDITIONS OF SERVICE
Please review the terms and conditions of this offer below. These terms and conditions, as well as any information contained in the confirmation letter provided herewith, constitute a contract between Kratos Gas & Power (Kratos) and the customer.
By receiving service from Kratos, the customer (account holder or legally authorized person) agrees to be bound by the terms and conditions as set forth herein, effective June, 2014.
You (the customer) agrees to be bound by the terms and conditions stated herein. You have 30 days after the date you enrolled into this contract to cancel without penalty.
• Residential Customer: means a purchaser (account holder) of natural gas that is supplied or distributed by a utility for residential purposes.
• Small Commercial Customer: means a non-residential customer (business name) with aggregate usage of 500 Mcf of natural gas or less per year.
• Legally Authorized Person: means a person that has legal documentation or legal authority to enroll a Residential or Commercial customer into a binding contract. A legally authorized person includes, but is not limited to, an individual with power of attorney or a corporate agent authorized to enter into contracts on a corporation’s behalf.
• Kratos Gas & Power (Kratos): an alternative gas supplier (AGS) licensed by the MPSC. Kratos buys gas from energy producers and marketers and in turn sells that gas to consumers.
• Consumers Energy: the utility regulated by the MPSC. Consumers Energy distributes natural gas on behalf of Kratos and other marketers, maintains the gas pipeline system, and responds to gas leaks and other emergencies.
• MPSC: Michigan Public Service Commission.
• T&Cs: Kratos’ Terms and Conditions of Service as contained in this statement
I. YOUR CONSUMERS ENERGY BILL
By agreeing to have Kratos supply natural gas to you, the format of your Consumers Energy bill will not change, except that Kratos will be identified on your statement. The terms and conditions of Consumers Energy’s normal billing practices will not change. You do authorize Kratos to obtain your billing payment and usage history from Consumers Energy. If you have questions 2 about understanding your bill or payment options, please contact Consumers Energy directly at (800-477-5050) or visit their website at www.consumersenergy.com. Should you have any questions about the rate you are paying for natural gas, please contact Kratos.
II. YOUR SERVICE
II-1. Price Plans
A - Variable
By agreeing to a variable rate plan, you will be charged for gas at variable market prices, which may or may not be lower than what you would be charged directly by (Consumers Energy). Under this plan, gas service is billed at a price per MCF or CCF that may change based on market conditions. The price per MCF or CCF used to calculate your gas charge is Kratos’ price in effect on the first day of your meter reading cycle. For example, if the market rate for natural gas settles at $5.00 per MCF and the maximum adder is $1.30 per MCF, your price would be $6.30 per MCF. Prices will be converted to CCF for Consumers Energy customers, meaning the $6.30 per MCF would be converted to $0.63 per CCF. This price does not include applicable taxes and/or utility charges, which will be billed by the utility. You are responsible for all charges assessed by the utility for gas transportation and all other applicable utility charges, which are not included in Kratos’ price. Your gas service will be billed under this plan on a month-to-month basis cancellable at any time without penalty.
B - Fixed Plan
Under a fixed price plan, gas service is billed at a fixed price per MCF or CCF for the term of the plan. Although Kratos’ currently available fixed prices may change at any time, the price used to calculate your Gas Charge for the full length of the plan will be Kratos’ price in effect at the time you select the plan. Your fixed price will remain in effect for all service periods with a beginning meter read date during the term of your plan as defined in your confirmation letter. The price per MCF or CCF, for customers on a fixed plan will not change for the length of the plan.
When you select a fixed plan, you commit to remain on the plan for the specified period of time, even if you move within the Consumers Energy service territory. Small Commercial customers may request a new fixed price plan without incurring an early termination charge beginning 15 days prior to their current plan’s expiration date. If you take no action at the expiration of your contract, it will automatically continue on Kratos’ month to month variable price plan cancellable at any time. Your price per MCF or CCF will be the current variable price in effect for that price plan. If you request and qualify for a new fixed plan you must re-enroll into a new contract by agreeing to the specific terms of the new plan. The new fixed price may differ from your previous fixed price.
If you are served under a fixed plan and any of the following three circumstances occurs after the 30 day unconditional cancellation period but more than 45 days prior to the expiration of your fixed price plan, you will be deemed to have breached your fixed price plan contract. In each circumstance, you will be assessed an Early Termination Fee as defined in your confirmation letter:
• If you switch to another price plan or change your natural gas provider at your current premises. However, Small Commercial customers may request a new fixed price plan without incurring an early termination charge beginning 15 days prior to their current plan’s expiration date.
• If your service is disconnected for nonpayment and is not reconnected before your account closes. If your account becomes inactive and your service is subsequently reconnected, Kratos reserves the right to limit availability of price plans.
• If you voluntarily disconnect service during the term of your plan, including moving to a different premises.
The maximum early termination fee for residential contracts of one year or less shall not exceed $50 and $100 for contracts of longer than one year. The maximum early termination fee for small commercial contracts of one year or less shall not exceed $150 and $250 for contracts of longer than one year.
C - Variable Price Program
Kratos is currently offering customers a variable price plan. By agreeing to allow Kratos to supply your natural gas needs under our Variable Price Program, you will receive an intro price of $6.99/mcf; $0.539/ccf for your first month and then our standard variable rate each month thereafter. This program will be good until cancelled. This program may be cancelled at any time without penalty. This price does not include applicable taxes and/or utility charges, which will be billed by the utility. You are responsible for all charges assessed by the utility for gas transportation and all other applicable utility charges, which are not included in Kratos’ price.
Additional information on price plans is available on our website, michigan.kratosgp.com , or you may call a Customer Care Representative.
Under our Variable Price Plan, Kratos will supply you with natural gas on month-to-month basis for no specific period commencing on the first month you receive services from Kratos as confirmed by Consumers Energy. Under our Variable Priced Program, Kratos will supply you natural gas, starting in approximately one billing cycle at a monthly variable price. Kratos will supply the commodity portion of your natural gas to the utility. Due to the volatility of the gas market, Kratos reserves the right to discontinue this contract any time before enrollment. If you are currently a Kratos customer, Kratos reserves the right to not accept or rescind this new enrollment or to require you to pay the applicable termination fee for your existing program to be eligible for this program. If you are a new customer then this contract may be rescinded by you without a cancellation fee by contacting Kratos in writing or by telephone within 30 days of enrollment in this program (“Cancellation Period”). If you are an existing Kratos customer and in the event you decide to rescind enrollment in this contract during the Cancellation Period, you will be returned to your previous contract with Kratos without penalty under this contract. You understand that if you switch your service to another AGS or back to the utility more than once in a 12-month period, the utility may charge a $10 switching fee. Your service will automatically terminate if you are not located within a Kratos service area, if you move outside of the Kratos service area, or if Kratos returns you to Consumers Energy for failure to meet any of the terms contained herein. Under a variable rate contract, you will have the right to terminate service, without penalty in the event you relocate.
When you select service with Kratos, you are agreeing to receive your natural gas supply from Kratos per contract terms (T&C and confirmation letter) and to keep your account in good standing. See section III-1, “Term” for more information.
II-4. Account and Billing Information
It is your responsibility to provide Consumers Energy with accurate account information, including a telephone number to contact you and an accurate address to mail your gas bills. Also, if your account information changes at any time, it is your responsibility to notify Consumers Energy of the changes. Kratos is not responsible for any late charges that are applied to an account when a customer does not receive timely bills due to incorrect account information provided by the customer. Kratos will not release your personal information without your affirmative written consent.
II-5. Changes to Terms and Conditions
We reserve the right to change our T&Cs at any time with written notice and acceptance by you.
II-6. Extraordinary Events
If an event occurs that delays or makes it impossible for Kratos to perform, such as an act of God, extraordinary weather occurrence, a facility outage with Consumers Energy or interstate pipeline systems, a Consumers Energy failure to perform, war, civil disturbance, or national emergency, our performance under these T&Cs shall be excused for the duration of such event. Under such conditions, Kratos may elect to discontinue customer service immediately, without notice.
II-7. Limitation of Liability
Kratos is not responsible for any losses or damages resulting from any actions/policies associated with Consumers Energy or the interstate pipeline systems, including interruption of service, termination of service, defective service, or operation and maintenance of Consumers Energy’s system or the interstate pipeline systems. Kratos is not liable for consequential, exemplary or punitive damages.
II-8. Call Monitoring Policy
Telephone calls to our Customer Care Center may be monitored and/or recorded for quality assurance purposes. All calls for new service are recorded in compliance with MPSC guidelines.
III. Contact Information
If you have any questions or inquiries regarding your gas service, please contact Consumers Energy or Kratos at the number below. Kratos will use good faith efforts to resolve any customer disputes.
Residential: I acknowledge that I am the account holder or Legally Authorized Person to execute a contract on behalf of the account holder. I understand that by signing this contract, I am switching the gas supplier for this account to Kratos Gas & Power. I understand that gas purchased for this account by Kratos Gas & Power will be delivered through Consumers Energy’s delivery system. The account holder, or the person who signed this contract on behalf of the account holder, has 30 days after today to cancel this contract for any reason through written or verbal notification to Kratos Gas & Power.
Small Commercial: I acknowledge that I am the account holder or Legally Authorized Person to execute a contract and legally bind the business in this contract. I understand that by signing this contract, I am switching the gas Supplier for this commercial account to Kratos Gas & Power. I understand that gas purchased for this commercial account by Kratos Gas & Power will be delivered through Consumers Energy’s delivery system. The legally authorized person to execute a contract and legally bind the business in this contract has 30-days after today to cancel this contract for any reason through written or verbal notification to Kratos Gas & Power.
I understand that my selection of Kratos Gas & Power via telephone (as evidenced by independent third-party verification with an audio recording of the entire verification call) constitutes a “signature” for purposes of this contract.