Common use of Collection Efforts, Policies, Procedures Clause in Contracts

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver written past-due and shut-off notices in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b) of this Annex I. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges in such forms and methods and at such times and places as it accepts for payment of its own charges.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Environmental Control Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the followingincluding, as follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC PSCWV Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, and interest charges collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Competition Act, other applicable NYPSC Regulations, HEFPA law and PSCWV Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers’ letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable PSCWV Regulations to terminate billing of Environmental Control Charges by Third Parties whose payments are 30 or more days delinquent, or as the then current PSCWV Regulations and any billing services agreements allow, and to resume, prospectively, to collect the Billed Environmental Control Charges directly from the applicable Customers. At such time, the Servicer will apply the Third Party’s security deposit to satisfy charges billed previously by the Third Party which remain outstanding, including outstanding Environmental Control Charges. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s customary practices or those of any successor Successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerEnvironmental Control Bondholders; and and (C) would comply with applicable lawRequirements of Law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, Environmental Control Charges in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Environmental Control Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed Environmental Control Charges in such forms and methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable PSCWV Regulations.

Collection Efforts, Policies, Procedures. (i) i. The Servicer shall use reasonable efforts to collect all Billed Recovery Charges ETCs from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) A. The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA LPSC Regulations and Servicer Policies and Practices. (B) B. The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA LPSC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) C. The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA LPSC Regulations and Servicer Policies and Practices. (D) D. The Servicer shall adhere to and carry out disconnection policies in accordance with applicable NYPSC Regulations, HEFPA LPSC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) E. The Servicer may employ the assistance of collection agents to collect any past-due Recovery Energy Transition Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices Practices, applicable LPSC Regulations and the Compliance Tariff Statementapplicable rate schedules. (H) F. The Servicer shall remit a portion of apply Customer deposits to the payment of delinquent accounts, accounts in accordance with applicable LPSC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii), (iv) and (v) of this Annex I.1. (ii) . The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I 1 to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesETCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) . The Servicer shall accept payment from Customers in respect of Billed Recovery Charges ETCs in such forms and methods and at such times and places as it accepts for payment of its own chargescharges in accordance with, if applicable, the Financing Order, the Rate Schedules, other applicable rate schedules, other LPSC Regulations and Servicer Policies and Practices.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges SRCs from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA Council Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA Council Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection to Customers in accordance with applicable NYPSC Regulations, HEFPA Council Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Louisiana Constitution and Revised Statutes, the Financing Order, applicable NYPSC Regulations, HEFPA Council Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Storm Recovery Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Council Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (HF) The Servicer shall remit a portion of apply Customer deposits to the payment of delinquent accounts, accounts in accordance with applicable Council Regulations and Servicer Policies and Practices and according to the priorities set forth in Section Sections 6(b) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that and notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSRCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for 180 days or more. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges SRCs in such forms and methods and at such times and places as it accepts for payment of its own charges.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges Securitized Utility Tariff Charge Revenues from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and written past-due and shut-off notices in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC deliver verbal and written final notices of delinquency and possible disconnection in accordance with applicable MPSC Regulations and HEFPA guidelines prior to disconnection of serviceServicer Policies and Practices. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Securitized Utility Tariff Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices and the Compliance Tariff StatementTariff. (H) The Servicer shall remit a portion of apply Customer deposits to the payment of delinquent accountsaccounts in accordance with the Financing Order, applicable MPSC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this Annex I.▇▇▇▇▇ ▇. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSecuritized Utility Tariffs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges Securitized Utility Tariffs in such forms and methods and at such times and places as it accepts for payment of its own charges.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA Commission Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA Commission Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer is allowed to bill Customers directly, the Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA Commission Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Act, the Financing Order, applicable NYPSC Regulations, HEFPA Commission Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Commission Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementCharge Rider. (HF) The Servicer shall remit a portion of apply Customer deposits to the payment of delinquent accounts, accounts in accordance with applicable Commission Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii), (iii), (iv) and (v) of this Annex I.▇▇▇▇▇ ▇. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the this Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges in such forms and methods and at such times and places as it accepts for payment of its own charges.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges SRCs from Customers and Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer is allowed to ▇▇▇▇ Customers directly, the Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of REP billing in accordance with the Utilities Code, the Financing Order, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due System Restoration Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC PUCT Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariff. (HF) The Servicer shall remit a portion of apply Customer and REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSRCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges SRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from REPs in respect of Billed SRCs in such forms and methods and at such times and places as the Servicer and each REP shall mutually agree in accordance with, if applicable, the Financing Order, Tariff, other tariffs and any other PUCT Regulations.

Collection Efforts, Policies, Procedures. (i) i. The Servicer shall use reasonable efforts to collect all Billed Recovery Charges SCs from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) A. The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA Indiana Commission Regulations and the Servicer Policies and Practices. (B) B. The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA Indiana Commission Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) C. The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA Indiana Commission Regulations and the Servicer Policies and Practices. (D) D. The Servicer shall adhere to and carry out disconnection policies in accordance with the Financing Orders, applicable NYPSC Regulations, HEFPA Indiana Commission Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) E. The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts Billed SCs in accordance with applicable NYPSC Regulations, HEFPA and the Servicer Policies and Practices Practices, applicable Indiana Commission Regulations and the Compliance Tariff Statementapplicable tariffs. (H) F. The Servicer shall remit a portion of apply Customer deposits to the payment of delinquent accounts, accounts in accordance with applicable Indiana Commission Regulations and the Servicer Policies and Practices and according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii) and (iv) of this Annex I.▇▇▇▇▇ ▇. (ii) . The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSCs, in accordance with its the Servicer Policies and Practices, that have remained outstanding after the final bill due date for eighty (80) days or more. (iii) . The Servicer shall accept payment from Customers in respect of Billed Recovery Charges SCs in such forms and methods and at such times and places as it accepts for payment of its own chargescharges in accordance with, if applicable, the Financing Order, the Rate Schedules, other applicable tariffs, other Indiana Commission Regulations and the Servicer Policies and Practices.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges SRCs from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA APSC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA APSC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component Section 6.06 of its compensation under the this Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA APSC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination in accordance with the Securitization Act, applicable NYPSC Regulations, HEFPA APSC Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Storm Recovery Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC APSC Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariff. (HF) The Servicer shall remit a portion of apply Customer deposits payments to the payment of delinquent accounts, accounts in accordance with applicable APSC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSRCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges SRCs in such forms and methods and at such times and places as it accepts for payment of its own charges.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges Securitized Utility Tariff Charge Revenues from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and written past-due and shut-off notices in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC deliver verbal and written final notices of delinquency and possible disconnection in accordance with applicable MPSC Regulations and HEFPA guidelines prior to disconnection of serviceServicer Policies and Practices. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Securitized Utility Tariff Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA MPSC Regulations and Servicer Policies and Practices and the Compliance Tariff StatementTariff. (H) The Servicer shall remit a portion of apply Customer deposits to the payment of delinquent accountsaccounts in accordance with the Financing Order, applicable MPSC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this Annex I.A▇▇▇▇ ▇. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSecuritized Utility Tariffs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges Securitized Utility Tariffs in such forms and methods and at such times and places as it accepts for payment of its own charges.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assetsthe T&D Rates, rates or charges that it services for itself or othersincluding, including with respect to the followingas follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA Authority Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC Authority Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Bond Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA Authority Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Statute, other applicable NYPSC Regulations, HEFPA law and Authority Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA Authority Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers’ letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA Authority Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b6(b)(ii), (iii) and (iv) of this Annex I.2. (G) The Servicer shall promptly take all necessary action in accordance with applicable Authority Regulations to terminate billing of Charges by Third Parties whose payments are delinquent and to collect the Billed Charges directly from the applicable Customers. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerBondholders; and and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I 2 to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, Charges in accordance with its Servicer Policies and PracticesPractices that remain outstanding for 120-150 days. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges in such forms and forms, by such methods and at such times and places as it accepts for payment of its own chargesthe T&D Rates. The Servicer shall accept payment from Third Parties in respect of Billed Charges in such forms, by such methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable Authority Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges Securitized Utility Tariff Charge Revenues from Customers as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA MoPSC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA MoPSC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver oral and written past-due and shut-off notices in accordance with applicable NYPSC Regulations, HEFPA MoPSC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with applicable NYPSC Regulations, HEFPA MoPSC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA MoPSC Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC deliver verbal and written final notices of delinquency and possible disconnection in accordance with applicable MoPSC Regulations and HEFPA guidelines prior to disconnection of serviceServicer Policies and Practices. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Securitized Utility Tariff Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA MoPSC Regulations and Servicer Policies and Practices and the Compliance Tariff StatementTariff. (H) The Servicer shall remit a portion of apply Customer deposits to the payment of delinquent accountsaccounts in accordance with the Financing Order, applicable MoPSC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this Annex I. (ii) The Servicer may in its own discretion waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSecuritized Utility Tariffs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges Securitized Utility Tariffs in such forms and methods and at such times and places as it accepts for payment of its own charges.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges QRSCs from Customers and Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third-Party Collectors in accordance with applicable NYPSC Regulations, HEFPA PSC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third-Party Collector balances in accordance with applicable NYPSC Regulations, HEFPA PSC Regulations and as required by the Financing Qualified Rate Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer bills Customers directly, the Servicer shall deliver oral and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PSC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of Third-Party Collector billing in accordance with applicable NYPSC Regulations, HEFPA Requirements of Law and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Qualified Rate Stabilization Charges in accordance with applicable NYPSC Regulations, HEFPA Requirements of Law and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third-Party Collector deposits to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA PSC Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable lawRequirements of Law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesQRSCs, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges QRSCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third-Party Collectors in respect of Billed QRSCs in such forms and methods and at such times and places as the Servicer and each Third-Party Collector shall mutually agree in accordance with any applicable Requirements of Law.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Securitized Utility Tariff Charges from Customers (to the extent permitted by law) as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers in accordance with applicable NYPSC Regulations, HEFPA Commission Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA Commission Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer is allowed to bill Customers directly, the Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA Commission Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the laws of the State of Kansas, the Financing Order, applicable NYPSC Regulations, HEFPA Commission Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Securitized Utility Tariff Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Commission Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (HF) The Servicer shall remit a portion of apply Customer deposits to the payment of delinquent accounts, accounts in accordance with applicable Commission Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b) of this Annex I.▇▇▇▇▇ ▇. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding . (iii) Notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery Securitized Utility Tariff Charges, in accordance with its Servicer Policies and Practices, that have remained outstanding for 180 days or more. (iiiiv) The Servicer shall accept payment from Customers in respect of Billed Recovery Securitized Utility Tariff Charges in such forms and methods and at such times and places as it accepts for payment of its own charges.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges TCs from Customers and Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer is allowed to b▇▇▇ Customers directly, the Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of REP billing in accordance with the Utilities Code, the Financing Order, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Transition Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC PUCT Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariff. (HF) The Servicer shall remit a portion of apply Customer and REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesTCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges TCs in such forms and methods and at such times and places as it accepts for payment of its own charges.own

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Environmental Control Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the followingincluding, as follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC PSCWV Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, and interest charges collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Competition Act, other applicable NYPSC Regulations, HEFPA law and PSCWV Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers’ letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable PSCWV Regulations to terminate billing of Environmental Control Charges by Third Parties whose payments are [ ] or more days delinquent, or as the then current PSCWV Regulations and any billing services agreements allow, and to resume, prospectively, to collect the Billed Environmental Control Charges directly from the applicable Customers. At such time, the Servicer will apply the Third Party’s security deposit to satisfy charges billed previously by the Third Party which remain outstanding, including outstanding Environmental Control Charges. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s customary practices or those of any successor Successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerEnvironmental Control Bondholders; and and (C) would comply with applicable lawRequirements of Law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, Environmental Control Charges in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Environmental Control Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed Environmental Control Charges in such forms and methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable PSCWV Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges TCs from Customers and Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the sameOrders. (C) The In circumstances where the Servicer is allowed to ▇▇▇▇ Customers directly, the Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of REP billing in accordance with the Utilities Code, the Financing Orders, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Transition Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC PUCT Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (HF) The Servicer shall remit a portion of apply Customer and REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesTCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from REPs in respect of Billed TCs in such forms and methods and at such times and places as the Servicer and each REP shall mutually agree in accordance with, if applicable, the Applicable Financing Orders, Tariffs, other tariffs and any other PUCT Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges SRCs from Customers and any Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following:: ANNEX I (A) The Servicer shall prepare and deliver overdue notices to Customers and any REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer is allowed to ▇▇▇▇ Customers directly, the Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of any future REP billing in accordance with the Utilities Code, the Financing Order, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due System Restoration Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC PUCT Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (HF) The Servicer shall remit a portion of apply Customer and any REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSRCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred twenty (120) days or more. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges SRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from any REPs in respect of Billed SRCs in such forms and methods and at such times and places as the Servicer and any and each REP shall mutually agree in accordance with, if applicable, the Financing Order, Tariffs, other tariffs and any other PUCT Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges IFCs from Customers and Third-Party Collectors (including ARES) as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and ARES in accordance with applicable NYPSC Regulations, HEFPA ICC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and ARES balances in accordance with applicable NYPSC ICC Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Note Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA ICC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Public Utilities Act and applicable NYPSC Regulations, HEFPA ICC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due IFCs in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC ICC Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (HF) The Servicer shall remit a portion of apply Customer and ARES deposits to the payment of delinquent accounts, accounts in accordance with applicable ICC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii), (iii) and (iv) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; providedPROVIDED, howeverHOWEVER, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesIFCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for 180 days or more. (iii) The Servicer shall accept payment from Customers and Third-Party Collectors in respect of Billed Recovery Charges IFCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ARES in respect of Billed IFCs in such forms and methods and at such times and places as the Servicer and each ARES shall mutually agree in accordance with applicable ICC Regulations and the Servicer shall give prompt written notice to the Rating Agencies of any such agreements.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Transition Bond Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the followingincluding, as follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC BPU Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Competition Act, other applicable NYPSC Regulations, HEFPA law and BPU Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers' letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable BPU Regulations to terminate billing of Transition Bond Charges by Third Parties whose payments are twenty-two or more days delinquent, or as the then current BPU Regulations and any billing services agreements allow, and to resume, prospectively, to collect the Billed Transition Bond Charges directly from the applicable Customers. At such time, the Servicer will apply the Third Party's security deposit to satisfy charges billed previously by the Third Party which remain outstanding, including outstanding Transition Bond Charges. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerTransition Bondholders; and and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed Recovery Transition Bond Charges, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Transition Bond Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed Transition Bond Charges in such forms and methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable BPU Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges IFCs from Customers and Third-Party Collectors (including ARES) as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and ARES in accordance with applicable NYPSC Regulations, HEFPA ICC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and ARES balances in accordance with applicable NYPSC ICC Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Note Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA ICC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Public Utilities Act and applicable NYPSC Regulations, HEFPA ICC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts IFCs in accordance with the applicable NYPSC Regulations, HEFPA ICC regulations and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (HF) The Servicer shall remit a portion of apply Customer and ARES deposits to the payment of delinquent accounts, accounts in accordance with applicable ICC Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii), (iii) and (iv) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; providedPROVIDED, howeverHOWEVER, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesIFCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for 180 days or more. (iii) The Servicer shall accept payment from Customers and Third-Party Collectors in respect of Billed Recovery Charges IFCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from ARES in respect of Billed IFCs in such forms and methods and at such times and places as the Servicer and each ARES shall mutually agree in accordance with applicable ICC Regulations, and the Servicer shall give prompt written notice to the Rating Agencies of any such agreements.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery RRB Charges from Customers and TPSs as and when the same become due and shall follow in accordance with such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and TPSs in accordance with applicable NYPSC Regulations, HEFPA NHPUC Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver written past-due and shut-off notices in accordance with applicable NYPSC RegulationsNHPUC Regulations and the Servicer Policies and Practices. (C) The Servicer shall adhere to and carry out disconnection policies and termination of billing by a TPS pursuant to a TPS Service Agreement in accordance with RSA 369-B:4, HEFPA IV, the Finance Order, applicable NHPUC Regulations and the Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies may employ the assistance of collection agents in accordance with applicable NYPSC Regulations, HEFPA NHPUC Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA shall apply Customer and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer TPS deposits to the payment of delinquent accounts, according to the priorities set forth accounts in Section 6(b) of this Annex I.accordance with applicable NHPUC Regulations and these Servicing Procedures. (ii) The Servicer may write off any amounts that it deems uncollectible according so long as any such write-off (A) would be in its own discretion accordance with the Servicer Policies and Practices and (B) would comply in all material respects with applicable law. The Servicer shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself Policies and for others; Practices and (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply in all material respects with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery RRB Charges in such forms and methods and at such times and places in accordance with the Servicer Policies and Practices. The Servicer shall accept payment from TPSs in respect of Billed RRB Charges in such forms and methods and at such times and places as it accepts for payment of its own chargesthe Servicer and each TPS shall mutually agree in accordance with the applicable TPS Service Agreement and applicable NHPUC Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges Series 2003-1 TCs from Customers Third-Party Collectors (including REPs) as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers REPs or other Third-Party Collectors, as appropriate, in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer balances of REPs or other Third-Party Collectors, as appropriate, in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of REP or Third-Party Collector billing in accordance with the Utilities Code, the Financing Order, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Series 2003-1 Transition Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC PUCT Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (HF) The Servicer shall remit a portion of Customer apply deposits made by REPs and other Third-Party Collectors deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a CustomerREP or other Third-Party Collector, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerSeries 2003-1 Bondholders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSeries 2003-1 TCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for [180] days or more. (iii) The Servicer shall accept payment from Customers Third-Party Collectors (other than REPs) in respect of Billed Recovery Charges Series 2003-1 TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from REPs in respect of Billed Series 2003-1 TCs in such forms and methods and at such times and places as the Servicer and each REP shall mutually agree in accordance with applicable PUCT Regulations and the Servicer shall give prompt written notice to the Rating Agencies of any such agreements.

Collection Efforts, Policies, Procedures. (i) i. The Servicer shall use reasonable efforts to collect all Billed Recovery Charges SRCs from Customers and any Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) A. The Servicer shall prepare and deliver overdue notices to Customers and any Third-Party Collectors in accordance with applicable NYPSC Regulations, HEFPA LPSC Regulations and Servicer Policies and Practices. (B) B. The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third-Party Collector balances in accordance with applicable NYPSC Regulations, HEFPA LPSC Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by . C. In circumstances where the Servicer as a component of its compensation under is allowed to bill Customers directly, the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA LPSC Regulations and Servicer Policies and Practices. (D) D. The Servicer shall adhere to and carry out disconnection policies and termination of any future Third-Party Collector billing in accordance with the Financing Orders, applicable NYPSC Regulations, HEFPA LPSC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) E. The Servicer may employ the assistance of collection agents to collect any past-due Storm Recovery Charges on unpaid final billed in accordance with Servicer Policies and Practices, applicable LPSC Regulations and applicable tariffs. F. The Servicer shall apply Customer and any Third-Party Collector deposits to the payment of delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA LPSC Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) . The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSRCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) . The Servicer shall accept payment from Customers in respect of Billed Recovery Charges SRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from any Third-Party Collectors in respect of Billed SRCs in such forms and methods and at such times and places as the Servicer and any and each Third-Party Collector shall mutually agree in accordance with, if applicable, the Financing Order, Tariff, other applicable tariffs, other LPSC Regulations and Servicer Policies and Practices.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges TCs from Customers and any Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) : The Servicer shall prepare and deliver overdue notices to Customers and any REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by ▇▇▇▇▇▇.▇▇ circumstances where the Servicer as a component of its compensation under is allowed to ▇▇▇▇ Customers directly, the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of any future REP billing in accordance with the Utilities Code, the Financing Orders, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Transition Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (H) The Servicer shall remit a portion of apply Customer and any REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) I. The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesTCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from any REPs in respect of Billed TCs in such forms and methods and at such times and places as the Servicer and any and each REP shall mutually agree in accordance with, if applicable, the Applicable Financing Orders, Tariffs, other tariffs and any other PUCT Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Intangible Transition Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA PUC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC PUC Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA PUC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Competition Act, other applicable NYPSC Regulations, HEFPA law and PUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA PUC Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA PUC Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable PUC Regulation to terminate billing of Intangible Transition Charges by Third Parties whose payments are 25 or more days delinquent for residential Customers or 20 or more days delinquent for all other Customers and to collect the Billed Intangible Transition Charges directly from the applicable Customers. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerTransition Bondholders; and and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed Recovery Intangible Transition Charges, in accordance with its Servicer Policies and Practices, that remain outstanding for 210 days. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Intangible Transition Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed Intangible Transition Charges in such forms and methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable PUC Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery RRB Charges from Customers customers and TPSs as and when the same become due and shall follow in accordance with such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers customers and TPSs in accordance with applicable NYPSC Regulations, HEFPA NHPUC Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver written past-due and shut-off notices in accordance with applicable NYPSC RegulationsNHPUC Regulations and the Servicer Policies and Practices. (C) The Servicer shall adhere to and carry out disconnection policies and termination of billing by a TPS pursuant to a TPS Service Agreement in accordance with RSA 369-B:4, HEFPA IV, the Finance Order, applicable NHPUC Regulations and the Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies may employ the assistance of collection agents in accordance with applicable NYPSC Regulations, HEFPA NHPUC Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA shall apply customer and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer TPS deposits to the payment of delinquent accounts, according to the priorities set forth accounts in Section 6(b) of this Annex I.accordance with applicable NHPUC Regulations and these Servicing Procedures. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customercustomer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself Policies and for others; Practices and (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply in all material respects with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers customers in respect of Billed Recovery RRB Charges in such forms and methods and at such times and places in accordance with the Servicer Policies and Practices. The Servicer shall accept payment from TPSs in respect of Billed RRB Charges in such forms and methods and at such times and places as it accepts for payment of its own chargesthe Servicer and each TPS shall mutually agree in accordance with the applicable TPS Service Agreement and applicable NHPUC Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Transition Bond Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the followingincluding, as follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC BPU Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Competition Act, other applicable NYPSC Regulations, HEFPA law and BPU Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers' letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable BPU Regulation to terminate billing of Transition Bond Charges by Third Parties whose payments are 22 or more days delinquent and to collect the Billed Transition Bond Charges directly from the applicable Customers. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerTransition Bondholders; and and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed Recovery Transition Bond Charges, in accordance with its Servicer Policies and Practices, that remain outstanding for 50-80 days. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Transition Bond Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed Transition Bond Charges in such forms and methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable BPU Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assetsthe T&D Rates, rates or charges that it services for itself or othersincluding, including with respect to the followingas follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA Authority Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC Authority Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Bond Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA Authority Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Statute, other applicable NYPSC Regulations, HEFPA law and Authority Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA Authority Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers’ letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA Authority Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b6(b)(ii), (iii) and (iv) of this Annex I.2. (G) The Servicer shall promptly take all necessary action in accordance with applicable Authority Regulations to terminate billing of Charges by Third Parties whose payments are delinquent and to collect the Billed Charges directly from the applicable Customers. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; Bondholders; and (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and the (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I 2 to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, Charges in accordance with its Servicer Policies and PracticesPractices that remain outstanding for 120-150 days. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges in such forms and forms, by such methods and at such times and places as it accepts for payment of its own chargesthe T&D Rates. The Servicer shall accept payment from Third Parties in respect of Billed Charges in such forms, by such methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable Authority Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges TCs from Customers and any Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) : The Servicer shall prepare and deliver overdue notices to Customers and any REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by ▇▇▇▇▇▇.▇▇ circumstances where the Servicer as a component of its compensation under is allowed to ▇▇▇▇ Customers directly, the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of any future REP billing in accordance with the Utilities Code, the Financing Orders, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Transition Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (H) The Servicer shall remit a portion of apply Customer and any REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) I. The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesTCs, in accordance with its Servicer Policies and Practices. , that have remained outstanding for one hundred eighty (iii180) days or more. The Servicer shall accept payment from Customers in respect of Billed Recovery Charges TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from any REPs in respect of Billed TCs in such forms and methods and at such times and places as the Servicer and any and each REP shall mutually agree in accordance with, if applicable, the Applicable Financing Orders, Tariffs, other tariffs and any other PUCT Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Transition Bond Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the followingincluding, as follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC BPU Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Competition Act, other applicable NYPSC Regulations, HEFPA law and BPU Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers' letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable BPU Regulations to terminate billing of Transition Bond Charges by Third Parties whose payments are 22 or more days delinquent, or as the then current BPU Regulations and any billing services agreements allow, and to resume, prospectively, to collect the Billed Transition Bond Charges directly from the applicable Customers. At such time, the Servicer will apply the Third Party's security deposit to satisfy charges billed previously by the Third Party which remain outstanding, including outstanding Transition Bond Charges. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerTransition Bondholders; and and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is shall be authorized to write off any Billed Recovery Charges, Transition Bond Charges in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Transition Bond Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed Transition Bond Charges in such forms and methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable BPU Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges SRCs from Customers and any Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following:: ANNEX I (A) The Servicer shall prepare and deliver overdue notices to Customers and any REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The In circumstances where the Servicer is allowed to ▇▇▇▇ Customers directly, the Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of any future REP billing in accordance with the Utilities Code, the Financing Order, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due System Restoration Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC PUCT Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (HF) The Servicer shall remit a portion of apply Customer and any REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the Issuer; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSRCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Charges SRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from any REPs in respect of Billed SRCs in such forms and methods and at such times and places as the Servicer and any and each REP shall mutually agree in accordance with, if applicable, the Financing Order, Tariffs, other tariffs and any other PUCT Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges TCs from Customers and Third-Party Collectors (including REPs) as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of REP billing in accordance with the Utilities Code, the Financing Order, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Transition Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC PUCT Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance Tariff StatementTariffs. (HF) The Servicer shall remit a portion of apply Customer and REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(b6(b)(ii), (iii) and (iv) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesTCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for 180 days or more. (iii) The Servicer shall accept payment from Customers and Third-Party Collectors (other than REPs) in respect of Billed Recovery Charges TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from REPs in respect of Billed TCs in such forms and methods and at such times and places as the Servicer and each REP shall mutually agree in accordance with applicable PUCT Regulations and the Servicer shall give prompt written notice to the Rating Agencies of any such agreements.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges TCs from Customers and any Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) : The Servicer shall prepare and deliver overdue notices to Customers and any REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) . The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by In circumstances where the Servicer as a component of its compensation under is allowed to ▇▇▇▇ Customers directly, the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) . The Servicer shall adhere to and carry out disconnection policies and termination of any future REP billing in accordance with the Utilities Code, the Financing Order, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) . The Servicer may employ the assistance of collection agents to collect any past-due Recovery Transition Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) Tariffs. The Servicer shall remit a portion of apply Customer and any REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) I. The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesTCs, in accordance with its Servicer Policies and Practices. , that have remained outstanding for one hundred eighty (iii180) days or more. The Servicer shall accept payment from Customers in respect of Billed Recovery Charges TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from any REPs in respect of Billed TCs in such forms and methods and at such times and places as the Servicer and any and each REP shall mutually agree in accordance with, if applicable, the Financing Order, Tariffs, other tariffs and any other PUCT Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts consistent with its customary servicing procedures to collect all Billed Recovery Charges TCs from Customers Third-Party Collectors (including REPs) as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers REPs or other Third-Party Collectors, as appropriate, in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer balances of REPs or other Third-Party Collectors, as appropriate, in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of REP or Third-Party Collector billing in accordance with the Utilities Code, the Financing Order, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Series 2003-1 Transition Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC PUCT Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance any Tariff Statementthen in effect. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a CustomerREP or other Third-Party Collector, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerSeries 2003-1 Bondholders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesTCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for 180 days or more. (iii) The Servicer shall accept payment from Customers Third-Party Collectors (other than REPs) in respect of Billed Recovery Charges TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from REPs in respect of Billed TCs in such forms and methods and at such times and places as the Servicer and each REP shall mutually agree in accordance with applicable PUCT Regulations and the Servicer shall give prompt written notice to the Rating Agencies of any such agreements.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Intangible Transition Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA PUC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC PUC Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the no Issuer shall have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA PUC Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Statute, other applicable NYPSC Regulations, HEFPA law and PUC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA PUC Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA PUC Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable PUC Regulation to terminate billing of Competitive Transition Charges by Third Parties whose payments are 45 or more days delinquent and to collect the Billed Intangible Transition Charges directly from the applicable Customers. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerTransition Bondholders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed Recovery Intangible Transition Charges, in accordance with its Servicer Policies and Practices, that remain outstanding for 180 days. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Intangible Transition Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed Intangible Transition Charges in such forms and methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable PUC Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Transition Bond Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the followingincluding, as follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC BPU Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, and interest charges collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Competition Act, other applicable NYPSC Regulations, HEFPA law and BPU Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers’ letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable BPU Regulations to terminate billing of Transition Bond Charges by Third Parties whose payments are twenty-two or more days delinquent, or as the then current BPU Regulations and any billing services agreements allow, and to resume, prospectively, to collect the Billed Transition Bond Charges directly from the applicable Customers. At such time, the Servicer will apply the Third Party’s security deposit to satisfy charges billed previously by the Third Party which remain outstanding, including outstanding Transition Bond Charges. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s customary practices or those of any successor Successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerTransition Bondholders; and and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, Transition Bond Charges in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Transition Bond Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed Transition Bond Charges in such forms and methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable BPU Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Environmental Control Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the followingincluding, as follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and the Servicer Policies and Practices.. Attachment A-4 (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC PSCWV Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, and interest charges collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Competition Act, other applicable NYPSC Regulations, HEFPA law and PSCWV Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers’ letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA PSCWV Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable PSCWV Regulations to terminate billing of Environmental Control Charges by Third Parties whose payments are 30 or more days delinquent, or as the then current PSCWV Regulations and any billing services agreements allow, and to resume, prospectively, to collect the Billed Environmental Control Charges directly from the applicable Customers. At such time, the Servicer will apply the Third Party’s security deposit to satisfy charges billed previously by the Third Party which remain outstanding, including outstanding Environmental Control Charges. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: Attachment A-5 (A) would be in accordance with the Servicer’s customary practices or those of any successor Successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerEnvironmental Control Bondholders; and and (C) would comply with applicable lawRequirements of Law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed Recovery Charges, Environmental Control Charges in accordance with its Servicer Policies and Practices. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery Environmental Control Charges in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed Environmental Control Charges in such forms and methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable PSCWV Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery Charges TCs from Customers and any Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) : The Servicer shall prepare and deliver overdue notices to Customers and any REPs in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) . The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and REP balances in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing OrderOrders. All late payment charges, to the extent available, and interest collected shall be payable to and retained by In circumstances where the Servicer as a component of its compensation under is allowed to ▇▇▇▇ Customers directly, the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) . The Servicer shall adhere to and carry out disconnection policies and termination of any future REP billing in accordance with the Utilities Code, the Financing Orders, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) . The Servicer may employ the assistance of collection agents to collect any past-due Recovery Transition Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) Tariffs. The Servicer shall remit a portion of apply Customer and any REP deposits to the payment of delinquent accounts, accounts in accordance with applicable PUCT Regulations and Servicer Policies and Practices and according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) I. The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesTCs, in accordance with its Servicer Policies and Practices. , that have remained outstanding for one hundred eighty (iii180) days or more. The Servicer shall accept payment from Customers in respect of Billed Recovery Charges TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from any REPs in respect of Billed TCs in such forms and methods and at such times and places as the Servicer and any and each REP shall mutually agree in accordance with, if applicable, the Applicable Financing Orders, Tariffs, other tariffs and any other PUCT Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts to collect all Billed Recovery BGS Transition Bond Charges from Customers and Third Parties as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the followingincluding, as follows: (A) The Servicer shall prepare and deliver overdue notices to Customers and Third Parties in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and the Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer and Third Party balances in accordance with applicable NYPSC BPU Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, charges and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Servicing Agreement, and the Issuer shall not have no any right to share in the same. (C) The Servicer shall deliver verbal and written past-due and shut-off final call notices in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies in accordance with the Competition Act, other applicable NYPSC Regulations, HEFPA law and BPU Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection collections agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the The Servicer shall follow NYPSC Regulations apply Customer and HEFPA guidelines prior Third Party deposits, Customers' letters of credit and Customer posted surety bonds to disconnection the payment of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA BPU Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b6(b)(ii), (iii) and (iv) of this Annex I.Exhibit A. (G) The Servicer shall promptly take all necessary action in accordance with applicable BPU Regulation to terminate billing of BGS Transition Bond Charges by Third Parties whose payments are 22 or more days delinquent and to collect the Billed BGS Transition Bond Charges directly from the applicable Customers. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: : (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; ; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerBGS Transition Bondholders; and and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Servicing Agreement or this Annex I Exhibit A to the contrary, the Servicer is authorized to write off any Billed Recovery BGS Transition Bond Charges, in accordance with its Servicer Policies and PracticesPractices that remain outstanding for 50-80 days. (iii) The Servicer shall accept payment from Customers in respect of Billed Recovery BGS Transition Bond Charges in such forms and forms, by such methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from Third Parties in respect of Billed BGS Transition Bond Charges in such forms, by such methods and at such times and places as the Servicer and each Third Party shall mutually agree in accordance with applicable BPU Regulations.

Collection Efforts, Policies, Procedures. (i) The Servicer shall use reasonable efforts consistent with its customary servicing procedures to collect all Billed Recovery Charges TCs from Customers Third-Party Collectors (including REPs) as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) The Servicer shall prepare and deliver overdue notices to Customers REPs or other Third-Party Collectors, as appropriate, in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, charges to outstanding Customer balances of REPs or other Third-Party Collectors, as appropriate, in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver verbal and written past-due final notices of delinquency and shut-off notices possible disconnection in accordance with applicable NYPSC Regulations, HEFPA PUCT Regulations and Servicer Policies and Practices. (D) The Servicer shall adhere to and carry out disconnection policies and termination of REP or Third-Party Collector billing in accordance with the Utilities Code, the Financing Order, applicable NYPSC Regulations, HEFPA PUCT Regulations and the Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts any past-due Series 2004-1 Transition Charges in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC PUCT Regulations and HEFPA guidelines prior to disconnection of service. (G) The Servicer may employ the assistance of collection agents to collect any past-due Recovery Charges on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices and the Compliance any Tariff Statementthen in effect. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(b) of this Annex I. (ii) The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a CustomerREP or other Third-Party Collector, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s 's customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerSeries 2004-1 Bondholders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesTCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for 180 days or more. (iii) The Servicer shall accept payment from Customers Third-Party Collectors (other than REPs) in respect of Billed Recovery Charges Series TCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from REPs in respect of Billed TCs in such forms and methods and at such times and places as the Servicer and each REP shall mutually agree in accordance with applicable PUCT Regulations and the Servicer shall give prompt written notice to the Rating Agencies of any such agreements.

Collection Efforts, Policies, Procedures. (i) i. The Servicer shall use reasonable efforts to collect all Billed Recovery Charges SRCs from Customers and any Third-Party Collectors as and when the same become due and shall follow such collection procedures as it follows with respect to comparable assets, rates or charges assets that it services for itself or others, including with respect to the following: (A) A. The Servicer shall prepare and deliver overdue notices to Customers and any Third-Party Collectors in accordance with applicable NYPSC RegulationsLPSC Regulations and Servicer Policies and Practices.. B. The Servicer shall apply late payment charges to outstanding Customer and Third-Party Collector balances in accordance with applicable LPSC Regulations and as required by the Financing Order. C. In circumstances where the Servicer is allowed to ▇▇▇▇ Customers directly, HEFPA the Servicer shall deliver verbal and written final notices of delinquency and possible disconnection in accordance with applicable LPSC Regulations and Servicer Policies and Practices. (B) The Servicer shall apply late payment charges, which may be payable to the extent authorized, to outstanding Customer balances in accordance with applicable NYPSC Regulations, HEFPA and as required by the Financing Order. All late payment charges, to the extent available, and interest collected shall be payable to and retained by the Servicer as a component of its compensation under the Agreement, and the Issuer shall have no right to share in the same. (C) The Servicer shall deliver written past-due and shut-off notices in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (D) D. The Servicer shall adhere to and carry out disconnection policies and termination of any future Third-Party Collector billing in accordance with the Financing Orders, applicable NYPSC Regulations, HEFPA LPSC Regulations and Servicer Policies and Practices. (E) The Servicer may employ the assistance of collection agents to collect on unpaid final billed accounts in accordance with applicable NYPSC Regulations, HEFPA and Servicer Policies and Practices. (F) If a shut-off notice is not paid by the disconnection date, the Servicer shall follow NYPSC Regulations and HEFPA guidelines prior to disconnection of service. (G) E. The Servicer may employ the assistance of collection agents to collect any past-due Storm Recovery Charges on unpaid final billed in accordance with Servicer Policies and Practices, applicable LPSC Regulations and applicable tariffs. F. The Servicer shall apply Customer and any Third-Party Collector deposits to the payment of delinquent accounts in accordance with applicable NYPSC Regulations, HEFPA LPSC Regulations and Servicer Policies and Practices and the Compliance Tariff Statement. (H) The Servicer shall remit a portion of Customer deposits to the payment of delinquent accounts, according to the priorities set forth in Section 6(bSections 6(b)(ii), (iii), (iv) and (v) of this Annex I. (ii) . The Servicer may in its own discretion shall not waive any late payment charge or any other fee or charge relating to delinquent payments, if any, and may or waive, vary or modify any terms of payment of any amounts payable by a Customer, in each case if unless such waiver or action: (A) would be in accordance with the Servicer’s customary practices or those of any successor Servicer with respect to comparable assets that it services for itself and for others; (B) would not materially adversely affect the rights of the Holders as evidenced by an Officer’s Certificate of the IssuerHolders; and (C) would comply with applicable law; provided, however, that notwithstanding anything in the Agreement or this Annex I to the contrary, the Servicer is authorized to write off any Billed Recovery ChargesSRCs, in accordance with its Servicer Policies and Practices, that have remained outstanding for one hundred eighty (180) days or more. (iii) . The Servicer shall accept payment from Customers in respect of Billed Recovery Charges SRCs in such forms and methods and at such times and places as it accepts for payment of its own charges. The Servicer shall accept payment from any Third-Party Collectors in respect of Billed SRCs in such forms and methods and at such times and places as the Servicer and any and each Third-Party Collector shall mutually agree in accordance with, if applicable, the Financing Order, Tariff, other applicable tariffs, other LPSC Regulations and Servicer Policies and Practices.