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 terminate this Agreement early, you will be responsible for paying a cost recovery fee (“Cost Recovery Fee”) as set forth in the accompanying Contract Summary which is incorporated by reference herein. This Cost Recovery Fee 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 LDC to cancel your XOOM account. During that time you agree to pay for the electricity you consume that is supplied by XOOM.