Common use of Cost Recovery Fee Clause in Contracts

Cost Recovery Fee. You understand and agree that in order for XOOM to offer and fulfill its fixed rate obligation to you, it has to purchase natural gas in advance of usage in amounts needed to cover the full term of this Agreement. If you cancel this Agreement early, you will be responsible for paying the cost recovery fee (“Cost Recovery Fee”) set forth in the Contract Summary, which is intended not as a penalty, but simply to offset the cost of selling the unused portion of your natural gas to others and estimated lost revenue that XOOM may incur from such a sale, if any, and related expenses. It will take time for your local utility company to cancel your XOOM account. During that time you agree to pay for the natural gas you consume that is supplied by XOOM.

Cost Recovery Fee. You understand and agree that in order for XOOM to offer and fulfill its fixed rate obligation to you, it has to purchase natural gas power in advance of usage in amounts needed to cover the full term of this Agreement. If you cancel terminate this Agreement early, you will be responsible for paying the a cost recovery fee (“Cost Recovery Fee”) set forth in the Contract Summary, of $110 which is intended not as a penalty, but simply to offset the cost of selling the unused portion of your natural gas to others and estimated lost revenue that XOOM may incur from such a sale, if any, and related expenses. It will take time for your local utility company Local Utility to cancel your XOOM account. During that time you agree to pay for the natural gas you consume that is supplied by XOOM.