Terms of Service and Limitations of Warranty

APS offers a selection of rate schedules applicable to certain classes of service. APS' Schedule No. 1 Terms and Conditions for Standard Offer and Direct Access Service ("APS' Terms and Conditions") apply to all rate schedules and contracts for service unless specifically noted.

Customers have the option of selecting the APS rate schedule they want to be effective initially or after service has been established. Customers who elect to go with an alternate rate schedule after service has been established must submit their request in writing to APS.

Billing under the new, alternate rate will become effective from or after the next meter reading, or when the appropriate metering equipment is in place. No further changes, however, may be made within the succeeding twelve-month period. Where the rate schedule or contract pursuant to which customer is provided services specifies a set term, the customer may not exercise the option to select an alternate rate schedule until expiration of that term.

Any APS customer who chooses a Direct Access service provider may return to APS full service in accordance with the rules, regulations, and orders of the Arizona Corporation Commission (ACC). However, if the customer returns to APS full service, they will not be eligible to choose to switch back to Direct Access for the succeeding twelve (12) month period.

If a customer returning to APS full service, in accordance with the rules, regulations and orders of the ACC, was not given the required notification in accordance with the rules and regulations of the ACC, by their Load Serving ESP of its intent to cease providing competitive services; then the above provision will only apply if the customer fails to select another ESP within sixty (60) days of returning to APS full service.

If the Load Serving ESP customer, and/or its agent request a joint site meeting for removal of APS metering and associated equipment and/or lock ring, a base charge will be assessed of $30.00 per site for the Phoenix metropolitan area and $75.00 per site for all other areas.

APS may assess an additional charge of $30.00 per hour for joint site meetings that exceed thirty (30) minutes. In the event APS must temporarily replace the ESP's meter and/or associated metering equipment as necessary during emergency situations or to restore power to a customer, the above charges may also apply.

The customer and APS each shall save the other harmless from and against all claims for injury or damage to persons or property occasioned by or in any way resulting from the services being provided by APS or the use thereof on their respective sides of the point of delivery.

APS shall, however, have the right to suspend or terminate service in the event APS should learn of service use by customer under hazardous conditions. Customer shall exercise all reasonable care to prevent loss or damage to APS property installed on customer's premise for the purpose of supplying service to customer.

The customer shall be responsible for payment for loss or damage to APS property on customer's premise arising from neglect, carelessness or misuse and shall reimburse APS for the cost of necessary repairs or replacements. The customer shall be responsible for payment for any equipment damage and/or estimated unmetered usage resulting from unauthorized breaking of seals, interfering, tampering, or by-passing the meter. Customer shall be responsible for notifying APS of any failure in APS' equipment.

APS shall not be liable to customer for any damages occasioned by Load Serving ESP's equipment or failure to perform, fluctuations, interruptions or curtailment of electric service except where due to APS' willful misconduct or gross negligence.

APS may, without incurring any liability therefore, suspend customer's electric service for periods reasonably required to permit APS to accomplish repairs to or changes in any of APS' facilities. The customer needs to protect his/her own sensitive equipment from harm caused by variations or interruptions in power supply.

There are no understandings, agreements, representations or warranties, express or implied (including warranties regarding merchantability or fitness for a particular purpose), not specified in APS' Terms and Conditions or in the applicable rules of the ACC concerning the salt and delivery of services by APS to customer.

APS' Terms and Conditions and the applicable rules of the ACC state the entire obligation of APS in connection with such sales and deliveries.

APS operations are governed by A.R.S. Title 40 where applicable, and all applicable regulations pursuant to the rules of electric competition (Article 2 Electric Utilities R14-2-201 through R14-2-212 and Article 16 Retail Electric Competition R14-2-1601 through R14-2-1618) except where APS has been granted ACC waivers.