November 1, 2007

In Ontario, Bullfrog Power is lowering the price per kilowatt hour (kWh) for 100% green electricity. New customers will receive a lower rate of 8.9 cents/kWh, while existing customers will receive a credit for the duration of their current contract. Why?

• Power prices during the summer of 2007 were lower than expected.
• Bullfrog Power is making changes to its billing mechanism, including outsourcing billing to your local utility (e.g. Toronto Hydro, Hydro One, etc.) The move to Distributor Consolidated Billing (DCB) will result in lower operational costs.

Pricing for new customers:

• New customers will pay a price of 8.9 cents/kWh, guaranteed for a year when they sign a new contract.

Credit for existing customers:

• Existing customers on a current contract will receive a credit reflecting the difference between your current rate and the new 8.9 cents price. The credit will be applied until the end of the current contract, allowing customers to take advantage of the savings offered to new customers.

Why are we issuing a credit rather than lowering the price for existing customers?

• You would have to cancel your existing contract and sign a new agreement in order to receive 8.9 cents/kWh. By offering the credit, we are giving you the same savings while saving you the administrative time and effort.

Moving to Distributor Consolidated Billing (DCB)

Electricity retailers in Ontario bill customers in one of two ways:

• Retailer Consolidated Billing (RCB): The responsibility of billing and collecting lies with the retailer.
• Distributor Consolidated Billing (DCB): The local utility bills and collects from customers on behalf of the retailer.

Bullfrog Power is one of the only retailers currently using RCB.

Bullfrog Power has elected to switch to DCB. Your contract with Bullfrog Power will not change, nor your status as a Bullfrog Power customer.

Bullfrog has made the choice to move to DCB for two reasons:

• We recognize that Pre-authorized Payments are not ideal for every customer. A move to DCB allows customers to take advantage of different forms of payment, such as online bill payment.
• Moving to DCB reduces Bullfrog Power’s operating costs, as we can leverage the billing infrastructure local utilities have in place. By keeping operating costs lower, we can keep our prices lower.

We will implement DCB over the coming months, and will update you with information about rollout in your area as it becomes available.

Bullfrog Power’s move to DCB will not change your choice to purchase EcoLogo^M certified, 100% green electricity. Moving to DCB only affects the way you pay your electricity bill. When DCB is rolled out to your region, the electricity bill you pay will come from your local utility, and you will see your Bullfrog Power purchase reflected on the “Electricity” line of the bill.

You will, however, continue to receive a statement from Bullfrog Power as well with all the information you have come to expect, such as your emissions footprint reduction and historical usage.

Thank you again for choosing to support renewable electricity. Together with the support of customers like you, Bullfrog is helping to bring new renewable power online in Canada to help clean up our air quality and fight climate change.

If you have any questions, please call our customer service representatives at 1-877-360-3464, Monday to Friday, 8:30 a.m. to 6:00 p.m.