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Electric Service Agreement

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ELECTRIC SERVICE AGREEMENT

This Electric Service Agreement ("Agreement") is entered into as of by and between Utility Company: with principal office at (hereinafter "Utility"), and Customer Name: with service location at (hereinafter "Customer").

RECITALS

WHEREAS, Utility is duly authorized to generate, transmit, distribute and sell electric energy to customers located within its service territory and maintains facilities necessary to provide electric service; and

WHEREAS, Customer desires to obtain electric service from Utility at the Service Location described above and Utility agrees to supply such service in accordance with the terms and conditions set forth in this Agreement and applicable Rate Schedule; and

WHEREAS, the parties intend for this Agreement to govern the rights, obligations, rates, and procedures applicable to the supply and receipt of electric service between the parties.

NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows:

1. DEFINITIONS

1.1 "Agreement" means this Electric Service Agreement and any schedules or appendices attached hereto. "Service" means the delivery of electric energy, ancillary services, and metering as specified herein. "Service Location" means the premises identified above. "Rate Schedule" means the Utility tariff, rate schedule, or contract schedule referenced in Section 4.

2. TERM

2.1 Commencement. Service under this Agreement shall commence on and shall continue for an initial term of months unless earlier terminated in accordance with this Agreement.

2.2 Extension. The Agreement shall automatically renew for successive terms of equal length unless either party delivers written notice of non-renewal at least days prior to the expiration of the then-current term.

3. SCOPE OF SERVICE

3.1 Utility Obligations. Utility shall supply electric energy to the Service Location in accordance with prudent utility practice, applicable law, and the terms of this Agreement. Utility will provide metering and billing services and shall maintain facilities necessary for safe and reliable delivery of electricity.

3.2 Customer Obligations. Customer shall permit Utility reasonable access to the Service Location to install, inspect, maintain and remove meters and equipment, operate and maintain facilities, and shall comply with Utility rules, safety regulations, and applicable law.

4. RATES, CHARGES AND METERING

4.1 Metering. Utility shall provide and maintain the meter(s) required to measure consumption. Meter readings taken by Utility shall be presumptive evidence of actual consumption absent manifest error. Customer may request meter testing in accordance with Utility's testing procedures; any adjustment resulting from meter error shall be made prospectively or, at Utility's election, by billing adjustments for prior periods as required by applicable law.

5. BILLING AND PAYMENT

5.1 Billing Cycle. Utility shall bill Customer monthly for charges due under this Agreement. Invoices will state the period of service, charges by component, and the due date. Payment shall be due within days of the invoice date.

5.2 Disputed Charges. Customer must notify Utility in writing of any billing dispute within thirty (30) days of receipt of the invoice, providing sufficient detail to permit investigation. The obligation to pay undisputed amounts shall not be suspended due to a billing dispute.

6. SECURITY, DEPOSITS AND GUARANTEES

6.1 Utility may require a security deposit or guarantee to secure Customer's payment obligations. Deposits may bear interest as required by applicable law and shall be handled in accordance with Utility's deposit policy.

7. INTERRUPTION OF SERVICE; FORCE MAJEURE

7.1 Service Interruptions. Utility may interrupt or curtail service for reasons of safety, emergency repairs, construction, compliance with law, or to protect the integrity of Utility's system. Utility shall use commercially reasonable efforts to provide prior notice when practicable.

7.2 Force Majeure. Neither party shall be liable for failure or delay in performance due to causes beyond its reasonable control, including acts of God, strikes, war, terrorism, governmental orders, natural disasters, cyber incidents, or failure of third-party suppliers. The affected party shall provide notice and shall use reasonable efforts to mitigate effects of the event.

8. LIMITATION OF LIABILITY; DISCLAIMER OF WARRANTIES

8.1 EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, UTILITY MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. UTILITY SHALL NOT BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES.

8.2 THE AGGREGATE LIABILITY OF UTILITY FOR ANY CLAIM ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT SHALL NOT EXCEED THE TOTAL AMOUNT PAID BY CUSTOMER TO UTILITY DURING THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

9. TAXES AND REGULATORY CHARGES

9.1 Customer shall be responsible for all taxes, fees, surcharges, assessments and other governmental charges applicable to the Service, excluding taxes based upon Utility's net income. Utility may collect such amounts on Customer's bill as separate line items.

10. TERMINATION

10.1 For Cause. Either party may terminate this Agreement for material breach by the other party if such breach remains uncured for a period of days after written notice specifying the breach.

10.2 Immediate Termination. Utility may immediately discontinue service without liability if Customer's actions create a clear and present danger to persons or property, or if Customer tampers with Utility equipment or bypasses metering.

11. INDEMNIFICATION

11.1 Customer Indemnity. Customer shall indemnify, defend and hold Utility harmless from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of Customer's use of service, Customer-owned equipment, or Customer's breach of this Agreement, except to the extent caused by Utility's gross negligence or willful misconduct.

12. CONFIDENTIALITY

12.1 Each party shall protect Confidential Information of the other party with at least the same degree of care as it uses to protect its own confidential information, but not less than a reasonable standard of care. Customer usage and billing data shall be treated as Confidential Information subject to disclosure only as required by law or regulatory authority.

13. ASSIGNMENT

13.1 Neither party shall assign this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld; provided, however, Utility may assign this Agreement to an affiliate or successor in interest without Customer consent upon notice.

14. NOTICES

All notices, consents, requests, demands and other communications required or permitted under this Agreement shall be in writing and delivered by hand, nationally recognized overnight courier, or certified mail, return receipt requested, to the addresses set forth below or to such other address as either party may designate by notice to the other.

15. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

15.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state specified by the parties below, without regard to conflict of laws principles.

15.2 Entire Agreement. This Agreement, together with any appendices or schedules expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations or agreements, whether written or oral.

15.3 Severability. If any provision of this Agreement is determined to be invalid, illegal or unenforceable, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith to replace the invalid provision with a valid provision that best effectuates the original intent of the parties.

16. AMENDMENTS; WAIVER; COUNTERPARTS

16.1 Amendments. No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties.

16.2 Waiver. No failure or delay by either party in exercising any right shall operate as a waiver of that right.

16.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

ADDITIONAL PROVISIONS

Utility Company:

By:

Date:

Customer:

By:

Date:

Enter text✕

What an Electric Service Agreement Is and When it Applies

An Electric Service Agreement is a written contract between a utility provider and a customer that sets the terms for delivering electricity to a service address. It typically identifies the parties, service location, account identifiers, meter information, the rate schedule and billing method, customer responsibilities (access, meter reading, payment), security deposit and reconnection terms, and procedures for service initiation, modification, suspension or termination. The agreement defines how charges are calculated, when payments are due, dispute resolution and limitations of liability.

Why a Clear Electric Service Agreement Matters

A well-drafted agreement reduces billing disputes, clarifies responsibilities, and documents authorization to access and meter service. It protects both the utility and the customer by recording service start dates, rates, deposit rules and remedies for nonpayment.

Why a Clear Electric Service Agreement Matters

Who typically completes or signs an Electric Service Agreement

Utilities, property managers, business owners and residential customers commonly prepare or sign electric service agreements when establishing or changing service.

  • Residential customers and tenants setting up new service or transferring an account.
  • Commercial account administrators and facility managers for business service connections.
  • Utility account representatives and authorized third-party agents completing enrollment and verification on behalf of a customer.

Identify the authorized signer in advance — a named individual with authority to bind the customer organization or household — to avoid processing delays.

Step-by-step: completing an Electric Service Agreement

Follow these core steps in sequence to gather information, verify identity, and finalize service enrollment.

  • 01
    Collect account data: Compile legal name, service address, meter/account numbers and ID.
  • 02
    Confirm rates and fees: Verify applicable rate schedule, deposits and any tiered charges.
  • 03
    Authenticate signer: Use government ID, business authorization, or eAuthentication per policy.
  • 04
    Execute and retain: Sign, date, deliver copies and preserve the audit trail.

Essential clauses to include in a professional Electric Service Agreement

Ensure the agreement includes clear, enforceable language for the items below so obligations, billing and remedies are unambiguous.

Parties

Identify the utility and the customer with full legal names, business classifications, and an authorized signer to avoid disputes over who may bind each party.

Service Description

Specify the service address, meter number, voltage or special metering, whether service is temporary or permanent, and any load restrictions or capacity commitments.

Rates and Charges

Describe applicable tariff, base charges, usage rates, seasonal adjustments, taxes and any demand or time-of-use pricing that affects billing.

Billing and Payment

State billing cycle, payment due date, accepted payment methods, electronic invoicing preferences, late payment penalties and interest rates.

Term and Termination

Include effective date, automatic renewal (if any), notice periods for termination, and grounds for immediate suspension such as safety or nonpayment.

Liability and Indemnity

Limitations on liability, contractor or third-party access rules, indemnity obligations and allocation of outage risks should be clearly defined.

How electronic completion and routing typically works

Electric service agreements can be completed and routed electronically; this sequence shows the common flow when using an e-signature platform.

  • Upload document: Provider uploads the agreement and maps signature, initials and data fields.
  • Assign signers: Enter signer emails and set signing order or allow parallel signing.
  • Authenticate signer: Use email link, SMS code, or stronger methods depending on risk.
  • Execute and archive: Signer completes form; platform stores signed PDF and audit trail.

Common online workflow settings for electric service forms

Configure these workflow settings to match identity requirements and downstream systems before sending the agreement for signature.

Field Configuration
Authentication Method Email link, SMS code, or KBA based on customer type
Signer Order Sequential for provider approval; parallel for customer groups
Conditional Fields Show deposit or meter fields only for applicable accounts
Integration Target Sync to CRM or billing system (Salesforce, NetSuite, Microsoft 365)

Technical and platform considerations for e-submission

Choose a platform that supports required file formats, signer authentication options and integration with billing and CRM systems.

  • File formats: PDF, DOCX and PDF/A are commonly supported for signed records
  • Integrations: Salesforce, NetSuite, Google Workspace and Microsoft 365 streamline record flow
  • Authentication: Options include email, SMS, multi-factor and advanced signer verification

Ensure the chosen platform provides an audit trail, secure storage (encryption in transit and at rest) and the ability to export records for billing or regulatory review.

Comparing eSignature vendor pricing and caps for signing agreements

Below is a concise pricing and capability comparison to consider when adopting an eSignature provider for electric service agreements. signNow is listed first per provider comparison convention.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card required Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Available on higher tiers Available Available Available Available
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes (BAA available) Yes (BAA available) No No

Security, compliance and technical controls to require

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Detailed timestamped signing records retained
Certifications: SOC 2 Type II and ISO 27001 available
HIPAA: BAA required for protected health information
21 CFR Part 11: Support for regulated records upon request
Accessibility: WCAG 2.0 Level AA compliant

Common pitfalls to avoid when preparing an agreement

  • Using inconsistent names between ID, billing and signature fields that delay verification and activation
  • Leaving the effective date blank or ambiguous, which creates disputes about billable service periods
  • Failing to include meter or account numbers, causing billing to be assigned to the wrong account
  • Skipping identity verification or weak authentication for commercial accounts, increasing fraud risk

Consequences of incorrect or incomplete agreements

Service Disconnection: Potential loss of service
Late Fees: Additional billing charges
Reconnection Fee: Cost to restore service
Deposit Forfeiture: Loss of security deposit
Credit Reporting: Negative credit consequences
Contract Liability: Exposure to damages or indemnity

How organizations use e-signed Electric Service Agreements

These short examples show practical ways utilities and customers complete agreements without in-person signatures.

Martin Properties — Tim Martin, Founder

Tim Martin used online signing to process service setup for rental units quickly

  • The team executed lease-related utilities remotely
  • The result: consistent compliance, mobile signing and faster account activation across properties.

Optica Ventures — Brian Fitzgibbons, COO

Optica adopted electronic agreements to streamline new account intake

  • The interface simplified signer experience
  • They reported easier customer interactions, fewer manual errors, and faster onboarding for service connections.

Typical timing and notice expectations for service agreements

Timelines vary by utility and jurisdiction; the following items are common milestones to track when initiating or terminating service.

Effective Date Entry:

Set as MM/DD/YYYY; determines start of billing and obligations

Service Activation Lead Time:

Activation often scheduled within days to weeks depending on meter status

Billing Cycle:

Generally monthly; first bill may prorate for partial period

Termination Notice:

Utilities commonly require written notice; timeframe varies by provider

Final Billing:

Final account reconciliation typically issued within one billing cycle

Key processing milestones from request to first invoice

Use this milestone sequence to coordinate internal approvals, identity checks and meter activation tasks.

01

Request Received

Customer submits application and required ID or business documentation

02

Verification

Utility confirms identity, credit and deposit requirements

03

Service Activation

Meter assigned, connection scheduled and service enabled

04

First Bill Issued

Billing cycle starts and first invoice is generated

Who typically signs and why their role matters

Utility Account Manager

A utility account manager or customer service representative prepares offers, explains rate schedules and authorizes service setup. They ensure the agreement reflects meter data, deposit rules and any service-specific conditions before routing for customer signature.

Authorized Customer Signer

An owner, officer, or designated agent signs on behalf of a household or business. Their authority must be documented; utilities may require proof of authorization or corporate resolution for commercial accounts.

Frequently asked questions about executing and managing agreements

Answers to common legal, technical and operational questions when using electronic methods to complete electric service contracts.


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