In consideration for the use of an electric water heater unit, supplied by the New Brunswick Power Corporation (“NB Power”), and the provision of water heater service by NB Power which shall include on-demand maintenance of a complete electric water heater unit comprised of a storage tank, heating elements, thermostats, temperature limit control, and thermal insulation (the “Equipment”), the Customer agrees to pay NB Power for the use and on-demand maintenance of the Equipment at the prevailing rate and to commence payment at the next regular billing date after the date of delivery of the water heater to the Premises.

By accepting delivery of and by usage of the Equipment, the Customer is deemed to have read and agrees to be bound by the following terms and conditions in relation to the Equipment and on-demand maintenance provided by NB Power: 

1. Installation: The Customer is responsible for the initial installation of the Equipment in new construction. NB Power is responsible for the initial installation of the Equipment in existing construction. Such installation must comply with all applicable laws, regulations, municipal by-laws and codes governing the installation, use and operation of the Equipment. Such installation must be undertaken by person(s) qualified under the applicable laws and regulations of the Department of Justice and Public Safety of the Province of New Brunswick. To prevent damage to the Premises or its contents due to a water leak from the Equipment or the attached piping, the installation of the Equipment shall include a drain pan and the Equipment shall be directly plumbed or connected to a free flowing, gravity fed floor drain (“Adequate Drainage System”). Where the Equipment is plumbed or connected directly to a floor drain, the parties acknowledge that it should be done in such a way so as not to pose a tripping hazard.
2. Location: The Customer is responsible for identifying a suitable location at the Premises for the Equipment. For the greatest energy efficiency, the location of the Equipment should be as close as possible to the point of highest use at the Premises while still meeting the installation and access requirements outlined herein.
3. Access: The location and installation of the Equipment must be such that the Equipment and its replaceable components are reasonably accessible to NB Power or its authorized agent for inspection, repair or removal. The Customer agrees and acknowledges that NB Power or its authorized agent shall, at all reasonable times, have free and unobstructed access to the Premises for the purpose of the delivery, installation, removal, or on-demand maintenance of the Equipment.
4. Notice: The Customer shall immediately inform NB Power of a water leak from the Equipment or the attached piping.
5. Inspection: Upon the Customer providing notification to NB Power of a water leak from the Equipment or the attached piping, the Customer shall not thereafter remove the Equipment from its original location at the Premises until NB Power, or its authorized agent, has inspected the Equipment or has confirmed with the Customer that they do not wish to inspect the Equipment.
6. Repair and replacement: NB Power is responsible for replacement of elements, thermostats, temperature and pressure relief valves, anodes and the adjustment of thermostat settings within the Equipment. NB Power replaces Equipment that cannot be effectively repaired. The Customer shall not allow any unauthorized third parties to service, repair or modify the Equipment.
7. Limitation of Liability: NB Power assumes no risk and shall not be liable for damage to:
   1. the Premises or contents located at the Premises, in the event that an Adequate Drainage System has not been incorporated into the Premises or in the event that the drainage system at the Premises has been rendered inoperative or ineffective by any means or by any person beyond the control of NB Power;
   2. property, furnishings, belongings, loss of revenue or personal injury resulting from the presence of the Equipment at the Premises or from a failure of the Equipment caused by an Act of God or from accidents, negligence or other actions of civic or similar agencies or any person(s) beyond the control of NB Power;
   3. property, furnishings, belongings, loss of revenue or personal injury resulting from Equipment that is not installed in compliance with applicable laws, regulations, municipal by-laws and codes;
   4. property, furnishings, belongings, loss of revenue or personal injury resulting from a leak of the Equipment if reasonable access to the Equipment is not available or if the Customer refuses to provide reasonable access to NB Power for the purpose of inspection, repair or removal of the Equipment upon identification of the leak; or
   5. property, furnishings or belongings located at the Premises that are not owned by the Customer.

8. Acceptance of Liability: In the event that the location chosen by the Customer for the installation of the Equipment is unsuitable in that it does not (a) allow compliance with all applicable laws, regulations, municipal by-laws and codes, and (b) incorporate an Adequate Drainage System, the Customer accepts the risks associated with installation of the Equipment in an unsuitable location and agrees that NB Power shall not be liable for any damages whatsoever caused by the installation or operation of the Equipment in that location.
9. Joint and Several Liability: The Customer agrees and acknowledges that if more than one customer is named in this Agreement, each customer so named is joint and severally liable for the Customer’s obligations outlined herein.
10. Liability for Damage: The Equipment shall be in the care and custody of the Customer, and if destroyed by any means such as fire, flood, etc. and/or damaged by an act of default or negligence of the Customer, or from vandalism, then the Customer shall be liable to pay NB Power the then depreciated fair market value of the Equipment, or, at the option of NB Power, the cost of repairing the Equipment.
11. Tampering: The Equipment includes a sacrificial anode to protect the tank from corrosion. No person shall remove the anode for any purpose unless they have the written consent of NB Power, they are an agent of NB Power or they are a person lawfully entitled to do so. The Customer acknowledges that if any person removes the anode, without consent or authority to do so as outlined above, the Customer shall be responsible for the depreciated fair market value of the Equipment as at the time of such tampering or removal.
12. Termination or Breach: The Customer may terminate this Agreement at any time upon reasonable notice to NB Power. In the event of a breach of this Agreement by the Customer, NB Power may terminate this Agreement with thirty (30) days advance written notice to the Customer.  Upon providing or receiving such notice, as the case may be, the Customer shall:
1. drain and disconnect the Equipment for purposes of surrender and make the Equipment reasonably accessible for removal by NB Power or its authorized agent within a reasonable time after the last day of service;
2. be liable for payment under this Agreement from the last billing date, prior to notice of termination or breach, until the last day of service;
3. be liable for payment under this Agreement from the last day of service until NB Power or its authorized agent retrieves the Equipment where the Customer fails to make the Equipment reasonably accessible for removal within a reasonable time after the last day of service; and
4. be liable for payment under this Agreement of the then depreciated fair market value of the Equipment, as determined by NB Power, where the Customer refuses to make the Equipment reasonably accessible for removal by NB Power or its authorized agent.

13. Assignment: In the event that the Customer sells the Premises, they shall inform the purchaser of the Premises of the existence of this Agreement.
14. Rate Change: NB Power reserves the right to increase or decrease the water heater service rate without any advance notice to the Customer.
15. Binding: This Agreement shall be binding upon the Customer’s heirs, executors, administrators, successors and permitted assigns. The sale or vacating of the Premises where the Equipment is located shall not release the Customer from any obligations under this Agreement.
16. Title: The Equipment at the Premises shall be and remain the property of NB Power and shall not be or become fixtures and/or part of the Premises. The Equipment shall not form or be part of any security or be encumbered under any mortgage, charge, lien or other encumbrance of any kind or nature whatsoever in relation to the Premises or of anything therein contained. The Equipment shall not be liable to be seized for arrears or taxes, or under execution, bankruptcy proceedings or other legal proceeding against the Customer.
17. Identification/ Labelling: The Customer shall not remove or obscure any identification or labelling placed on the Equipment by NB Power.
18. Intended Purpose: The Equipment shall be installed and used only for the purpose intended, which is supplying hot water to the Premises. The misuse of the Equipment, including but not limited to, connection to a furnace coil or other auxiliary means of heating, is dangerous and strictly prohibited.
19. Recommended Additional Equipment: The Customer agrees to supply and maintain water conditioning or other equipment, at their own cost, if recommended by NB Power or its authorized agent, to optimize water quality or water pressure systems which supply water to the Equipment. Additional charges may apply for repair or replacement of the Equipment,  or NB Power may refuse to repair or replace the Equipment, where the Customer failed to supply and maintain water conditioning or other equipment, as recommended by NB Power or its authorized agent, and such failure negatively impacted the Equipment.
20. Removal due to Fire or Flood: In the event of a fire or flood at the Premises which results in the substantial destruction of the Premises or which renders the Premises unsuitable for the Customer’s continued residence, the Customer, or their authorized agent, shall drain and disconnect the Equipment for purposes of surrender and make the Equipment reasonably accessible for removal by NB Power or its authorized agent within a reasonable time after the fire or flood.
21. Voluntary Replacement: The Customer acknowledges that NB Power shall, at the Customer’s request only, replace Equipment that is 15 years old (for 22, 40 or 60 gallon tanks) or Equipment that is 20 years old (for a 100 gallon tank). If the Customer requests replacement of Equipment that is less than 15 or 20 years old, as described in more detail above, the Customer shall be responsible for the depreciated cost of the water heater unit at the time of their request.
22. Supply Interruption: NB Power may interrupt and/or discontinue the supply of electricity to the Customer/ the Premises on an as needed basis for operational or emergency purposes. The Customer agrees that such interruptions do not relieve them of their obligations under this Agreement.
23. Changes to Terms: The Customer acknowledges that the terms contained herein may be revised by NB Power from time to time and the Customer shall be deemed to have received reasonable notice of and agrees to be bound by any such revisions by the posting of the same to NB Power’s website.
24. Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements, understandings or discussions, whether oral or written.