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 electric power 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 a 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 electricity 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 electricity you consume that is supplied by XOOM. Credit, Payment and Collection: Your bill will be based on monthly meter readings provided to XOOM by your local utility. If your local utility is unable to read your meter, your local utility will estimate your charges based on previous usage history, and later adjust it based on actual usage shown by a meter reading. If there is an error in your meter reading, your bill will be adjusted upon your local utility providing a corrected meter reading. You will receive a single bill for both your electricity and the delivery of such electricity from your utility distribution company.