Common use of Calculation of Daily Remittance Clause in Contracts

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, the Servicer shall, on each Servicer Business Day, estimate FRC Collections based on the daily billed amounts, the Weighted Average Days Sales Outstanding and write-offs, which resulting estimate shall constitute the amount of Estimated FRC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less than semi-annually (except in the case of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date, the Servicer shall calculate the amount of Actual FRC Collections for the immediately preceding Reconciliation Period as compared to the Estimated FRC Collections forwarded to the Collection Account in respect of such Reconciliation Period. For purposes of such calculation, the Servicer may calculate Actual FRC Collections based on the Weighted Average Days Sales Outstanding and write-offs for the relevant Reconciliation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G. (ii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge Payments estimated to have been received by the Servicer during each Reconciliation Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iii) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs and any changes in procedures used to calculate the Estimated FRC Collections pursuant to this section 6(e) shall be made in good faith, and in the case of any change in procedures pursuant to clause (ii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, the Servicer shall, on each Servicer Business Day, estimate FRC Collections based on the daily billed amounts, the Weighted Average Days Sales Outstanding and write-offs, which resulting estimate shall constitute the amount of Estimated FRC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less than semi-annually (except in the case of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date, the Servicer shall calculate the amount of Actual FRC Collections for the immediately preceding Reconciliation Period as compared to the Estimated FRC Collections forwarded to the Collection Account in respect of such Reconciliation Period. For purposes of such calculation, the Servicer may calculate Actual FRC Collections based on the Weighted Average Days Sales Outstanding and write-offs for the relevant Reconciliation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.H. (ii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge Payments estimated to have been received by the Servicer during each Reconciliation Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iii) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs and any changes in procedures used to calculate the Estimated FRC Collections pursuant to this section 6(e) shall be made in good faith, and in the case of any change in procedures pursuant to clause (ii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed SRCs shall be estimated to be collected the same number of days after billing as is equal to the Days Sales Outstanding then in effect (or on the next Servicer Business Day) and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and Collection Account an amount equal to the product of the applicable Billed SRCs multiplied by one hundred percent less the system wide write-offsoff percentage (or if available in the ordinary course of business, which resulting estimate gross write-off percentage for each revenue class) used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC SRC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case June 30 of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Dateyear, the Servicer shall calculate and report in the next succeeding Monthly Servicer’s Certificate the amount of Actual FRC SRC Collections for all completed Collection Periods during the immediately preceding Reconciliation Period as compared to the Estimated FRC SRC Collections forwarded to the Collection Account in respect of such Reconciliation Period. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the System Restoration Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual SRC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. (ii) On or before the beginning of the first billing cycle in November of each year in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge SRC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections SRC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iii) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs and any changes in procedures used to calculate the Estimated FRC Collections pursuant to this section 6(e) shall be made in good faith, and in the case of any change in procedures pursuant to clause (ii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date utilizing the initial procedures.ANNEX I

Calculation of Daily Remittance. Clauses (i) and (ii) below describe how the Daily Remittance will be calculated and reconciled until the time, if it happens, that the Servicer switches to remitting actual collected Securitization Charges instead of estimated Securitization Charge Collections. If and when the Servicer switches to remitting actual collected Securitization Charges instead of estimated Securitization Charge Collections, the Servicer shall remit Securitization Charge Collections on each Servicer Business Day as soon as reasonably practicable after collection to the General Subaccount of the Collection Account but in no event later than two Servicer Business Days following receipt of such Securitization Charge Collections. i. For purposes of calculating the Daily Remittance, (i) all Billed SCs shall be estimated to be collected the same number of days after billing as is equal to the Average Days Outstanding then in effect (or on the next Servicer Business Day) and (ii) the Servicer shallwill, on each Servicer Business DayDay but in no event later than two Servicer Business Days, estimate FRC Collections based on remit to the daily billed amounts, Trustee for deposit in the Weighted Average Days Sales Outstanding and Collection Account an amount equal to the product of the applicable Billed SCs multiplied by one hundred percent less the system wide write-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC estimated Securitization Charge Collections for such Servicer Business Day. ii. Pursuant As part of each True-Up Adjustment, pursuant to Section 6.11(c) 4.01 of the Agreement, not less than semi-annually (except in the case of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date, the Servicer shall calculate will reconcile the amount of Actual FRC Collections for the immediately preceding Reconciliation Period as compared Securitization Charges remitted to the Estimated FRC Collections forwarded to Trustee with the Collection Account in respect of such Reconciliation PeriodPeriodic Payment Requirement. For purposes of such calculation, the Servicer may calculate Actual FRC Collections based on the Weighted Average Days Sales Outstanding and write-offs for the relevant Reconciliation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G. (ii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect and agree that the Servicer’s method actual collections of calculating Securitization Charges on some days might exceed the Fixed Recovery Charge Payments Servicer’s estimated collections, and that the Servicer’s actual collections of Securitization Charges on other days might be less than the Servicer’s estimated collections. The Servicer and the Issuer further acknowledge and agree that the amount of these variances are likely to have been received by be small and are not likely to be biased in favor of over-remittances or under-remittances. Consequently, so long as the Servicer during each Reconciliation Period faithfully makes all daily remittances based on Average Days Outstanding, as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreementprovided for herein, the Servicer and the Issuer agree that they no actual or deemed investment earnings shall review be payable in respect of such over-remittances or under-remittances. iii. On or before May 14 of each year, beginning in May 2024, in accordance with Section 4.01(b) of the procedures used Agreement, the Servicer shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Average Days Outstanding and the system-wide write-off percentage in order to be able to calculate the Estimated FRC Collections Periodic Billing Requirement for the next Annual True-Up Adjustment and to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate calculate any change in the interests of efficiency, accuracy, cost and/or system capabilities, including, at Daily Remittances until the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the samenext Annual True-Up Adjustment. (iii) iv. All calculations of collections, each update of the Weighted Average Days Sales Outstanding or Outstanding, the system-wide write-offs off percentage and any changes in procedures used to calculate the Estimated FRC estimated Securitization Charge Collections pursuant to this section Section 6(e) shall be made in good faith, and in the case of any change in procedures update pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date closing date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed SRCs shall be estimated to be collected the Servicer shall, on each Servicer Business Day, estimate FRC Collections based on the daily billed amounts, same number of days after billing as is equal to the Weighted Average Days Sales Outstanding then in effect (or, if such resulting day is not a Servicer Business Day, on the next Servicer Business Day) and (ii) the Servicer will, on each Servicer Business Day but in no event later than two Servicer Business Days following the Servicer Business Day after such Billed SRCs are estimated to have been received, remit to the Indenture Trustee for deposit in the Collection Account an amount equal to the product of the applicable Billed SRCs multiplied by one hundred percent less the system wide write-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC estimated SRC Collections for such Servicer Business Day. . (ii) Pursuant to Section 6.11(c6.12(d) of the Agreement, not less commencing no later than semi-annually (except in the case of the First Payment PeriodJanuary, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date2025, the Servicer shall calculate in each Monthly Servicer’s Certificate the amount of Actual FRC actual SRC Collections for the immediately preceding Reconciliation Period calendar month as compared to the Estimated FRC estimated SRC Collections forwarded to the Collection Account in respect of such Reconciliation Periodcalendar month. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of such calculationthe next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Storm Recovery Bonds. The Servicer and the Issuer further acknowledge and agree that the amount of the variances between actual SRC Collections and estimated SRC Collections are expected to be small and are not expected to be biased in favor of over-remittances or under-remittances. Consequently, so long as the Servicer faithfully makes all daily remittances based on Weighted Average Days Sales Outstanding, as provided for herein, the Servicer may calculate Actual FRC Collections based on and the Issuer agree that no actual or deemed investment earnings shall be payable in respect of such over-remittances or under-remittances. (iii) On or before each Calculation Date, in accordance with Section 4.01(b) of the Agreement, the Servicer shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each Customer Class) in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next Storm Recovery Charge Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiv) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b8.01(c) of the Agreement, the Servicer may make certain changes to its current computerized customer Customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge Payments SRC Collections estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer Customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC SRC Collections estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Servicer Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or Outstanding, the system-wide write-offs off percentage and any changes in procedures used to calculate the Estimated FRC estimated SRC Collections pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (iii) above or any change in procedures pursuant to clause (iiiv) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed SRCs shall be deemed to be collected the same number of days after billing as is equal to the Weighted Average Days Outstanding then in effect and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and writeCollection Account an amount equal to the product of the applicable Billed SRCs multiplied by one hundred percent less the system wide charge-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC SRC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case of the First Payment PeriodSeptember 25, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date2020, the Servicer shall calculate in each Monthly Servicer’s Certificate the amount of Actual FRC SRC Collections for the immediately preceding first Collection Period of the Reconciliation Period as compared to the Estimated FRC SRC Collections forwarded to the Collection Account in respect of such Reconciliation Periodcalendar month. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the System Restoration Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual SRC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. (ii) On or before August 15 of each year in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and writethe system-offs wide charge-off percentage in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge SRC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections SRC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs charge off percentage and any changes in procedures used to calculate the Estimated FRC Collections SRC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed SRCs shall be estimated to be collected the Servicer shall, on each Servicer Business Day, estimate FRC Collections based on the daily billed amounts, same number of days after billing as is equal to the Weighted Average Days Sales Outstanding then in effect (or, if such resulting day is not a Servicer Business Day, on the next Servicer Business Day) and (ii) the Servicer will, on each Servicer Business Day but in no event later than two Servicer Business Days following the Servicer Business Day after such Billed SRCs are estimated to have been received, remit to the Indenture Trustee for deposit in the Collection Account an amount equal to the product of the applicable Billed SRCs multiplied by one hundred percent less the system wide write-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC estimated SRC Collections for such Servicer Business Day. . (ii) Pursuant to Section 6.11(c6.12(d) of the Agreement, not less commencing no later than semi-annually (except in the case of the First Payment Period[Month, which may be longer than six months), but in no event more than sixty (60) days after each Payment DateYear], the Servicer shall calculate in each Monthly Servicer’s Certificate the amount of Actual FRC actual SRC Collections for the immediately preceding Reconciliation Period calendar month as compared to the Estimated FRC estimated SRC Collections forwarded to the Collection Account in respect of such Reconciliation Periodcalendar month. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of such calculationthe next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Storm Recovery Bonds. The Servicer and the Issuer further acknowledge and agree that the amount of the variances between actual SRC Collections and estimated SRC Collections are expected to be small and are not expected to be biased in favor of over-remittances or under-remittances. Consequently, so long as the Servicer faithfully makes all daily remittances based on Weighted Average Days Sales Outstanding, as provided for herein, the Servicer may calculate Actual FRC Collections based on and the Issuer agree that no actual or deemed investment earnings shall be payable in respect of such over-remittances or under-remittances. (iii) On or before the Calculation Date in [Month] and [Month] of, each year, beginning in [Month, Year], in accordance with Section 4.01(b) of the Agreement, the Servicer shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each Customer Class) in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next Storm Recovery Charge Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiv) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b8.01(c) of the Agreement, the Servicer may make certain changes to its current computerized customer Customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge Payments SRC Collections estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer Customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC SRC Collections estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Servicer Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or Outstanding, the system-wide write-offs off percentage and any changes in procedures used to calculate the Estimated FRC estimated SRC Collections pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (iii) above or any change in procedures pursuant to clause (iiiv) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) i. For purposes of calculating the Daily Remittance, (i) all Billed SRCs shall be estimated to be collected the same number of days after billing as is equal to the Days Sales Outstanding then in effect (or on the next Business Day) and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Trustee for deposit in the Weighted Average Days Sales Outstanding and applicable Collection Account an amount equal to the product of the applicable Billed SRCs multiplied by one hundred percent less the system wide write-offsoff percentage (or if available in the ordinary course of business, which resulting estimate gross write-off percentage for each revenue class) used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC estimated SRC Collections for such Servicer Business Day. Pursuant As part of each Storm Recovery Charge Adjustment, pursuant to Section 6.11(c) 4.01 of the Agreement, not less than semi-annually (except in the case of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date, the Servicer shall calculate the amount of Actual FRC actual SRC Collections for all completed Collection Periods during the immediately preceding Reconciliation Period as compared to the Estimated FRC estimated SRC Collections forwarded to the applicable Collection Account in respect of such Reconciliation Period. For purposes of such calculationIf the actual SRC Collections exceed the estimated SRC Collections remitted to the Trustee for the period, the Servicer may calculate Actual FRC Collections based shall forward the excess to the Trustee for deposit into the Collection Account on the Weighted Average next Payment Date. If the estimated SRC Collection remitted to the Trustee for the period are greater than the actual SRC Collections for the period, the Excess Remittance shall be refunded to the Servicer at the next Payment Date provided however, that no Excess Remittance shall be withdrawn from the applicable Collection Account if such withdrawal would cause the amounts on deposit in the applicable General Subaccount or the applicable Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Storm Recovery Bonds and provided further that any amount not refunded to the Servicer as a result of the preceding proviso, shall be added to the Periodic Payment Requirement for the ensuing period and paid to the Servicer on the first Payment Date at which such refund can be made without violating the preceding proviso. ii. On or before the beginning of the first billing cycle in April and January of each year (or, in the case of any subsequent series, the corresponding date relating to the Storm Recovery Charge Adjustment for such series) in accordance with Section 4.01(b) of the Agreement, the Servicer shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Days Sales Outstanding and the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next Storm Recovery Charge Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. iii. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G. (ii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s 's method of calculating the Fixed Recovery Charge Payments SRC Collections estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC SRC Collections estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iii) iv. All calculations of collections, each update of the Weighted Average Days Sales Outstanding or Outstanding, the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) and any changes in procedures used to calculate the Estimated FRC estimated SRC Collections pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date closing date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed TCs shall be deemed to be collected the same number of days after billing as is equal to the Weighted Average Days Outstanding then in effect and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and writeapplicable Collection Account an amount equal to the product of the applicable Billed TCs multiplied by one hundred percent less the system wide charge-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC TC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case of the First Payment PeriodNovember 25, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date2007, the Servicer shall calculate in each Monthly Servicer’s Certificate the amount of Actual FRC TC Collections for the immediately preceding first Collection Period of the Reconciliation Period as compared to the Estimated FRC TC Collections forwarded to the applicable Collection Account in respect of such Reconciliation Periodcalendar month. For purposes No Excess Remittance shall be withdrawn from the applicable Collection Account if such withdrawal would cause the amounts on deposit in the applicable General Subaccount or the applicable Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Transition Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual TC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. (ii) On or before August 15 of each year (or, in the case of any subsequent Series, the corresponding date relating to the Annual True-up Adjustment Date for such Series) in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and writethe system-offs wide charge-off percentage in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge TC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections TC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs charge off percentage and any changes in procedures used to calculate the Estimated FRC Collections TC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily RemittanceRemittances for all FRC Collections on bills using the Distribution Factor FRC, the Servicer shall, on each Servicer Business Day, estimate such FRC Collections based on the daily billed amounts, the Weighted Average Days Sales Outstanding and write-offs, which resulting estimate shall constitute the amount of Estimated FRC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less than semi-annually (except in the case of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date, the Servicer shall calculate the amount of Actual FRC Collections for the immediately preceding Reconciliation Period as compared to the Estimated FRC Collections forwarded to the Collection Account in respect of such Reconciliation PeriodPeriod for all FRC Collections on bills using the Distribution Factor FRC. For purposes of such calculation, the Servicer may calculate Actual FRC Collections based on the Weighted Average Days Sales Outstanding and write-offs for the relevant Reconciliation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G. (ii) During the Remittance Transition Period, for purposes of Daily Remittances for all FRC Collections on bills using the Single Line Item FRC, the Servicer’s billing system shall record and consolidate on each Servicer Business Day the Actual FRC Collections. In testing and validating the new remittance process, the Servicer shall manually remit certain amounts to the Indenture Trustee’s global Automated Clearing House account (“the ACH account”) and provide signed instructions in accordance with Section 8.02(d) of the Indenture and Section 6.11 of this Agreement to sweep those amounts to the Collection Account. Daily Remittance amounts are confirmed using the Collection Account bank statements. (i) (iii) After the Remittance Transition Period, for purposes of Daily Remittances for all FRC Collections on bills using the Single Line Item FRC, the Servicer’s billing system shallwill record, consolidate and automatically remit on each Servicer Business Day the Actual FRC Collections to the ACH account or, if possible due to changes to the Indenture Trustee’s systems, directly to the Collection Account. On the following day, the Servicer’s billing system shall automatically create and email a report to the Indenture Trustee confirming the prior day’s Daily Remittance to enable the Trustee to verify the amount deposited in the Collection Account. In accordance with Section 8.02(d) of the Indenture and Section 6.11 of this Agreement, a Responsible Officer of the Issuer shall order the Indenture Trustee to transfer the Daily Remittance from the ACH account to the Collection Account created and maintained under Section 8.02(a) of the Indenture. Daily Remittance amounts are confirmed using the Collection Account bank statements. (ii) (iv) After the Remittance Transition Period, for calculating any remaining Distribution Factor FRC, the Servicer shall estimate the FRC Collections based on the daily billed amounts, the Weighted Average Days Sales Outstanding and write-offs and remit the total Estimated FRC Collections on the earlier of 1.) the last day of the Collection Period or 2.) no later than 10 days after the total of such Distribution Factor FRC collections exceeds one percent of the Periodic Payment Requirement. No later than 60 days after the end of each Payment Period, the Servicer shall calculate the actual FRC collections as compared to the Estimated FRC Collections by using updated write-offs. Excess remittances will be withheld from future remittances and under remittances shall be remitted no later than 10 days after the reconciliation calculation. (iii) (v) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b8.01(db) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge Payments estimated to have been received by the Servicer during each Reconciliation Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the Remittance Transition Period,date on which all Consumer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) (vi) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs and any changes in procedures used to calculate the Estimated FRC Collections for the Distribution Factor FRC pursuant to this section 6(e) shall be made in good faith, and in the case of any change in procedures pursuant to clause (iiv) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed TCs shall be deemed to be collected the same number of days after billing as is equal to the Weighted Average Days Outstanding then in effect and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and writeapplicable Collection Account an amount equal to the product of the applicable Billed TCs multiplied by one hundred percent less the system wide charge-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC TC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case of the First Payment PeriodOctober 25, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date2007, the Servicer shall calculate in each Monthly Servicer’s Certificate the amount of Actual FRC TC Collections for the immediately preceding first Collection Period of the Reconciliation Period as compared to the Estimated FRC TC Collections forwarded to the Collection Account in respect of such Reconciliation Periodcalendar month. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Transition Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual TC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. (ii) On or before September 30 of each year (or, in the case of any subsequent Series, the corresponding date relating to the Annual True-up Adjustment Date for such series) in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and writethe system-offs wide charge-off percentage in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge TC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections TC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs charge off percentage and any changes in procedures used to calculate the Estimated FRC Collections TC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed TCs shall be deemed to be collected the same number of days after billing as is equal to the Weighted Average Days Outstanding then in effect and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and writeCollection Account an amount equal to the product of the applicable Billed TCs multiplied by one hundred percent less the system wide charge-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC TC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less than semi-annually (except in the case on or before [February 1] of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Dateyear, the Servicer shall calculate Net TC Write-Offs for the preceding Reconciliation Period and shall subtract such Net TC Write-Offs from the Billed TCs billed during the preceding Reconciliation Period in order to determine the amount of Actual FRC TC Collections for the immediately preceding Reconciliation Period as compared to the Estimated FRC Collections forwarded to the Collection Account in respect of such Reconciliation Period. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Reserve Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Notes. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual TC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations or any applicable REP Service Agreements. (ii) On or before [ ] of each year, in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and writethe system-offs wide charge-off percentage in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Note Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s 's method of calculating the Fixed Recovery Charge TC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Annex. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Note Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections TC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerNoteholders. As soon as practicable, and in no event later than sixty (60) 60 Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Note Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs charge off percentage and any changes in procedures used to calculate the Estimated FRC Collections TC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) or any change in procedures pursuant to clause (ii) aboveiii), in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed TCs shall be estimated to be collected the same number of days after billing as is equal to the Days Sales Outstanding then in effect (or on the next Servicer Business Day) and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and Collection Account an amount equal to the product of the applicable Billed TCs multiplied by one hundred percent less the system wide write-offsoff percentage (or if available in the ordinary course of business, which resulting estimate gross write-off percentage for each revenue class) used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC TC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case June 30 of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Dateyear, the Servicer shall calculate and report in the next succeeding Monthly Servicer's Certificate the amount of Actual FRC TC Collections for all completed Collection Periods during the immediately preceding Reconciliation Period as compared to the Estimated FRC TC Collections forwarded to the Collection Account in respect of such Reconciliation Period. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Transition Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual TC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. On or before the beginning of the first billing cycle in November of each year in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G. (ii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s 's method of calculating the Fixed Recovery Charge TC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections TC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iii) . All calculations of collections, each update of the Weighted Average Days Sales Outstanding or Outstanding, the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) and any changes in procedures used to calculate the Estimated FRC Collections TC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed TCs shall be deemed to be collected the same number of days after billing as is equal to the Weighted Average Days Outstanding then in effect and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and writeCollection Account an amount equal to the product of the applicable Billed TCs multiplied by one hundred percent less the system wide charge-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC TC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case of the First Payment PeriodApril 25, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date2013, the Servicer shall calculate in each Monthly Servicer’s Certificate the amount of Actual FRC TC Collections for the immediately preceding first Collection Period of the Reconciliation Period as compared to the Estimated FRC TC Collections forwarded to the Collection Account in respect of such Reconciliation Periodcalendar month. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Transition Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual TC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. (ii) On or before February 15 of each year in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and writethe system-offs wide charge-off percentage in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge TC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections TC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs charge off percentage and any changes in procedures used to calculate the Estimated FRC Collections TC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily RemittanceRemittances for all FRC Collections on bills using the Distribution Factor FRC, the Servicer shall, on each Servicer Business Day, estimate such FRC Collections based on the daily billed amounts, the Weighted Average Days Sales Outstanding and write-offs, which resulting estimate shall constitute the amount of Estimated FRC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less than semi-annually (except in the case of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date, the Servicer shall calculate the amount of Actual FRC Collections for the immediately preceding Reconciliation Period as compared to the Estimated FRC Collections forwarded to the Collection Account in respect of such Reconciliation PeriodPeriod for all FRC Collections on bills using the Distribution Factor FRC. For purposes of such calculation, the Servicer may calculate Actual FRC Collections based on the Weighted Average Days Sales Outstanding and write-offs for the relevant Reconciliation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.H. (ii) The Servicer and During the Issuer acknowledge thatRemittance Transition Period, as contemplated in Section 8.01(b) for purposes of Daily Remittances for all FRC Collections on bills using the AgreementSingle Line Item FRC, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating billing system shall record and consolidate on each Servicer Business Day the Fixed Recovery Charge Payments estimated to have been received by Actual FRC Collections. In testing and validating the Servicer during each Reconciliation Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer accounts are being billed under such new systemremittance process, the Servicer shall notify the Issuer, manually remit certain amounts to the Indenture Trustee Trustee’s global Automated Clearing House account (“the ACH account”) and the Rating Agencies provide signed instructions in accordance with Section 8.02(d) of the sameIndenture and Section 6.11 of this Agreement to sweep those amounts to the Collection Account. Daily Remittance amounts are confirmed using the Collection Account bank statements. (iii) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs and any changes in procedures used to calculate the Estimated FRC Collections pursuant to this section 6(e) shall be made in good faith, and in the case of any change in procedures pursuant to clause (ii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed TCs shall be deemed to be collected the same number of days after billing as is equal to the Weighted Average Days Outstanding then in effect and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and writeCollection Account an amount equal to the product of the applicable Billed TCs multiplied by one hundred percent less the system wide charge-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC TC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case of the First Payment PeriodJanuary 25, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date2003, the Servicer shall calculate in each Monthly Servicer's Certificate Net TC Write-Offs for the preceding Reconciliation Period and shall subtract such Net TC Write-Offs from the Billed TCs billed during the preceding Reconciliation Period in order to determine the amount of Actual FRC TC Collections for the immediately preceding Reconciliation first Collection Period as compared to the Estimated FRC Collections forwarded to the Collection Account in respect of such Reconciliation Period. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Reserve Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Notes. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual TC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations or any applicable REP Service Agreements. (ii) On or before the last billing cycle of January of each year, in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and writethe system-offs wide charge-off percentage in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Note Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s 's method of calculating the Fixed Recovery Charge TC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Annex. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Note Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections TC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerNoteholders. As soon as practicable, and in no event later than sixty (60) 60 Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Note Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs charge off percentage and any changes in procedures used to calculate the Estimated FRC Collections TC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) or any change in procedures pursuant to clause (ii) aboveiii), in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed SRCs shall be deemed to be collected the same number of days after billing as is equal to the Weighted Average Days Outstanding then in effect and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and writeCollection Account an amount equal to the product of the applicable Billed SRCs multiplied by one hundred percent less the system wide charge-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC SRC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case of the First Payment Period[August] 25, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date2020, the Servicer shall calculate in each Monthly Servicer’s Certificate the amount of Actual FRC SRC Collections for the immediately preceding first Collection Period of the Reconciliation Period as compared to the Estimated FRC SRC Collections forwarded to the Collection Account in respect of such Reconciliation Periodcalendar month. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the System Restoration Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual SRC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. (ii) On or before [June] 15 of each year in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and writethe system-offs wide charge-off percentage in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge SRC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections SRC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs charge off percentage and any changes in procedures used to calculate the Estimated FRC Collections SRC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed TCs shall be estimated to be collected the same number of days after billing as is equal to the Days Sales Outstanding then in effect (or on the next Servicer Business Day) and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and Collection Account an amount equal to the product of the applicable Billed TCs multiplied by one hundred percent less the system wide write-offsoff percentage (or if available in the ordinary course of business, which resulting estimate gross write-off percentage for each revenue class) used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC TC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case June 30 of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Dateyear, the Servicer shall calculate and report in the next succeeding Monthly Servicer’s Certificate the amount of Actual FRC TC Collections for all completed Collection Periods during the immediately preceding Reconciliation Period as compared to the Estimated FRC TC Collections forwarded to the Collection Account in respect of such Reconciliation Period. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Transition Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual TC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. (ii) On or before the beginning of the first billing cycle in November of each year in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge TC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections TC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or Outstanding, the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) and any changes in procedures used to calculate the Estimated FRC Collections TC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed SRCs shall be estimated to be collected the same number of days after billing as is equal to the Days Sales Outstanding then in effect (or on the next Servicer Business Day) and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and Collection Account an amount equal to the product of the applicable Billed SRCs multiplied by one hundred percent less the system wide write-offsoff percentage (or if available in the ordinary course of business, which resulting estimate gross write-off percentage for each revenue class) used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC SRC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case June 30 of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Dateyear, the Servicer shall calculate and report in the next succeeding Monthly Servicer’s Certificate the amount of Actual FRC SRC Collections for all completed Collection Periods during the immediately preceding Reconciliation Period as compared to the Estimated FRC SRC Collections forwarded to the Collection Account in respect of such Reconciliation Period. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the System Restoration Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual SRC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. (ii) On or before the beginning of the first billing cycle in November of each year in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge SRC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections SRC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same.. ANNEX I (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or Outstanding, the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) and any changes in procedures used to calculate the Estimated FRC Collections SRC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.

Calculation of Daily Remittance. (i) i. For purposes of calculating the Daily Remittance, (i) all Billed SRCs shall be estimated to be collected the same number of days after billing as is equal to the Days Sales Outstanding then in effect (or on the next Business Day) and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Trustee for deposit in the Weighted Average Days Sales Outstanding and applicable Collection Account an amount equal to the product of the applicable Billed SRCs multiplied by one hundred percent less the system wide write-offsoff percentage (or if available in the ordinary course of business, which resulting estimate gross write-off percentage for each revenue class) used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC estimated SRC Collections for such Servicer Business Day. Pursuant As part of each Storm Recovery Charge Adjustment, pursuant to Section 6.11(c) 4.01 of the Agreement, not less than semi-annually (except in the case of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date, Agreement the Servicer shall calculate the amount of Actual FRC actual SRC Collections for all completed Collection Periods during the immediately preceding Reconciliation Period as compared to the Estimated FRC estimated SRC Collections forwarded to the applicable Collection Account in respect of such Reconciliation Period. For purposes of such calculationIf the actual SRC Collections exceed the estimated SRC Collections remitted to the Trustee for the period, the Servicer may calculate Actual FRC Collections based shall forward the excess to the Trustee for deposit into the Collection Account on the Weighted Average next Payment Date. If the estimated SRC Collection remitted to the Trustee for the period are greater than the actual SRC Collections for the period, the Excess Remittance shall be refunded to the Servicer at the next Payment Date provided however, that no Excess Remittance shall be withdrawn from the applicable Collection Account if such withdrawal would cause the amounts on deposit in the applicable General Subaccount or the applicable Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Storm Recovery Bonds and provided further that any amount not refunded to the Servicer as a result of the preceding proviso, shall be added to the Periodic Payment Requirement for the ensuing period and paid to the Servicer on the first Payment Date at which such refund can be made without violating the preceding proviso. ii. On or before the beginning of the first billing cycle in August and February of each year (or, in the case of any subsequent series, the corresponding date relating to the Storm Recovery Charge Adjustment for such series) in accordance with Section 4.01(b) of the Agreement, the Servicer shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Days Sales Outstanding and the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next Storm Recovery Charge Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. iii. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G. (ii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge Payments SRC Collections estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC SRC Collections estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iii) iv. All calculations of collections, each update of the Weighted Average Days Sales Outstanding or Outstanding, the system-wide write-offs off percentage (or if available in the ordinary course of business, gross write-off percentage for each revenue class) and any changes in procedures used to calculate the Estimated FRC estimated SRC Collections pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date closing date utilizing the initial procedures.

Calculation of Daily Remittance. Clauses (i) and (ii) below describe how the Daily Remittance will be calculated and reconciled until the time, if it happens, that the Servicer switches to remitting actual collected Securitization Charges instead of estimated Securitization Charge Collections. If and when the Servicer switches to remitting actual collected Securitization Charges instead of estimated Securitization Charge Collections, the Servicer shall remit Securitization Charge Collections on each Servicer Business Day as soon as reasonably practicable after collection to the General Subaccount of the Collection Account but in no event later than two Servicer Business Days following receipt of such Securitization Charge Collections. i. For purposes of calculating the Daily Remittance, (i) all Billed SCs shall be estimated to be collected the same number of days after billing as is equal to the Average Days Outstanding then in effect (or on the next Servicer Business Day) and (ii) the Servicer shallwill, on each Servicer Business DayDay but in no event later than two Servicer Business Days, estimate FRC Collections based on remit to the daily billed amounts, Trustee for deposit in the Weighted Average Days Sales Outstanding and Collection Account an amount equal to the product of the applicable Billed SCs multiplied by one hundred percent less the system wide write-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC estimated Securitization Charge Collections for such Servicer Business Day. ii. Pursuant As part of each True-Up Adjustment, pursuant to Section 6.11(c) 4.01 of the Agreement, not less than semi-annually (except in the case of the First Payment Period, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date, the Servicer shall calculate will reconcile the amount of Actual FRC Collections for the immediately preceding Reconciliation Period as compared Securitization Charges remitted to the Estimated FRC Collections forwarded to Trustee with the Collection Account in respect of such Reconciliation PeriodPeriodic Payment Requirement. For purposes of such calculation, the Servicer may calculate Actual FRC Collections based on the Weighted Average Days Sales Outstanding and write-offs for the relevant Reconciliation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G. (ii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect and agree that the Servicer’s method actual collections of calculating Securitization Charges on some days might exceed the Fixed Recovery Charge Payments Servicer’s estimated collections, and that the Servicer’s actual collections of Securitization Charges on other days might be less than the Servicer’s estimated collections. The Servicer and the Issuer further acknowledge and agree that the amount of these variances are likely to have been received by be small and are not likely to be biased in favor of over-remittances or under-remittances. Consequently, so long as the Servicer during each Reconciliation Period faithfully makes all daily remittances based on Average Days Outstanding, as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreementprovided for herein, the Servicer and the Issuer agree that they no actual or deemed investment earnings shall review be payable in respect of such over-remittances or under-remittances. iii. On or before [•] of, each year, beginning in [•] 2023, in accordance with Section 4.01(b) of the procedures used Agreement, the Servicer shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Average Days Outstanding and the system-wide write-off percentage in order to be able to calculate the Estimated FRC Collections Periodic Billing Requirement for the next Annual True-Up Adjustment and to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate calculate any change in the interests of efficiency, accuracy, cost and/or system capabilities, including, at Daily Remittances until the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the Issuer. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the samenext Annual True-Up Adjustment. (iii) iv. All calculations of collections, each update of the Weighted Average Days Sales Outstanding or Outstanding, the system-wide write-offs off percentage and any changes in procedures used to calculate the Estimated FRC estimated Securitization Charge Collections pursuant to this section Section 6(e) shall be made in good faith, and in the case of any change in procedures update pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Date closing date utilizing the initial procedures.

Calculation of Daily Remittance. (i) For purposes of calculating the Daily Remittance, (i) all Billed TCs shall be deemed to be collected the same number of days after billing as is equal to the Weighted Average Days Outstanding then in effect and (ii) the Servicer shallwill, on each Servicer Business Day, estimate FRC Collections based on remit to the daily billed amounts, Indenture Trustee for deposit in the Weighted Average Days Sales Outstanding and writeCollection Account an amount equal to the product of the applicable Billed TCs multiplied by one hundred percent less the system wide charge-offs, which resulting estimate off percentage used by the Servicer to calculate the most recent Periodic Billing Requirement. Such product shall constitute the amount of Estimated FRC TC Collections for such Servicer Business Day. Pursuant to Section 6.11(c) of the Agreement, not less commencing no later than semi-annually (except in the case of the First Payment PeriodApril 25, which may be longer than six months), but in no event more than sixty (60) days after each Payment Date2013, the Servicer shall calculate in each Monthly Servicer’s Certificate the amount of Actual FRC TC Collections for the immediately preceding first Collection Period of the Reconciliation Period as compared to the Estimated FRC TC Collections forwarded to the Collection Account in respect of such Reconciliation Periodcalendar month. For purposes No Excess Remittance shall be withdrawn from the Collection Account if such withdrawal would cause the amounts on deposit in the General Subaccount or the Excess Funds Subaccount to be insufficient for the payment of the next installment of interest or principal due at maturity on the next Payment Date or upon acceleration on or before the next Payment Date on the Transition Bonds. The Servicer shall be allowed to use the proceeds from any Excess Remittance to reimburse any Applicable REPs for the excess of their remittances over actual TC Payments received by such calculationREPs in accordance with the terms of PUCT Regulations. (ii) On or before [August] 15 of each year in accordance with Section 4.01(b) of the Agreement, the Servicer may calculate Actual FRC Collections based on shall, in a timely manner so as to perform all required calculations under such Section 4.01(b), update the Weighted Average Days Sales Outstanding and writethe system-offs wide charge-off percentage in order to be able to calculate the Periodic Billing Requirement for the relevant Reconciliation next True-Up Adjustment and to calculate any change in the Daily Remittances for the next Calculation Period. Such calculation will be provided to the Indenture Trustee in a Reconciliation Certificate in substantially the form appended to the Agreement as Exhibit G.. (iiiii) The Servicer and the Issuer acknowledge that, as contemplated in Section 8.01(b) of the Agreement, the Servicer may make certain changes to its current computerized customer information system, which changes, when functional, would affect the Servicer’s method of calculating the Fixed Recovery Charge TC Payments estimated to have been received by the Servicer during each Reconciliation Collection Period as set forth in this Annex I. Should these changes to the computerized customer information system become functional during the term of the Agreement, the Servicer and the Issuer agree that they shall review the procedures used to calculate the Estimated FRC Collections TC Payments estimated to have been received in light of the capabilities of such new system and shall amend this Annex I in writing to make such modifications and/or substitutions to such procedures as may be appropriate in the interests of efficiency, accuracy, cost and/or system capabilities, including, at the request of the Issuer or the Indenture Trustee, reconciling actual Fixed Recovery Charges received by the Servicer and the Fixed Recovery Charges remitted by the Servicer as contemplated by Section 6.11(c); provided, however, that the Servicer may not make any modification or substitution that will materially adversely affect the Holders as evidenced by an Officer’s Certificate of the IssuerHolders. As soon as practicable, and in no event later than sixty (60) Business Days after the date on which all Consumer Customer accounts are being billed under such new system, the Servicer shall notify the Issuer, the Indenture Trustee and the Rating Agencies of the same. (iiiiv) All calculations of collections, each update of the Weighted Average Days Sales Outstanding or system-wide write-offs charge off percentage and any changes in procedures used to calculate the Estimated FRC Collections TC Payments pursuant to this section Section 6(e) shall be made in good faith, and in the case of any update pursuant to clause (ii) above or any change in procedures pursuant to clause (iiiii) above, in a manner reasonably intended to provide estimates and calculations that are at least as accurate as those that would be provided on the Billing Commencement Closing Date utilizing the initial procedures.