Power Offtake Agreement Template for United States

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Key Requirements PROMPT example:

Power Offtake Agreement

"I need a Power Offtake Agreement for a new 50MW solar facility in Texas, with a 15-year term starting March 2025, where we'll be selling power to a major tech company's data center with specific provisions for renewable energy credits."

Document background
The Power Offtake Agreement (POA) is a fundamental document in energy project development and operations within the United States. It provides the contractual framework for long-term power sales, typically ranging from 10 to 25 years, and is essential for securing project financing. POAs are particularly crucial in renewable energy projects but are also used in conventional power generation. The agreement must comply with both federal regulations (FERC) and state-specific utility laws, making it a complex instrument that requires careful consideration of multiple jurisdictional requirements. These agreements are increasingly important as the energy sector transitions toward more distributed generation and renewable sources.
Suggested Sections

1. Parties: Identification of power supplier and offtaker, including legal details

2. Background: Context of the agreement, facility details, and purpose

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase Obligations: Core commitments regarding power delivery and payment

5. Pricing and Payment Terms: Price structure, billing, and payment mechanisms

6. Term and Termination: Duration of agreement and termination conditions

7. Operating Requirements: Technical specifications and operational standards

8. Metering: Requirements for measuring delivered power

Optional Sections

1. Environmental Attributes: Handling of renewable energy credits and certificates - used for renewable energy projects

2. Capacity Rights: Treatment of capacity market participation - used in markets with capacity mechanisms

3. Development Milestones: Project development timeline and requirements - used for new facility construction

Suggested Schedules

1. Facility Description: Technical details of the generating facility

2. Product Specifications: Detailed power delivery specifications

3. Pricing Schedule: Detailed pricing mechanisms and calculations

4. Operating Procedures: Detailed operational requirements and protocols

5. Form of Performance Security: Template for required security instruments

6. Metering Specifications: Technical requirements for metering equipment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Federal Power Act (FPA): Primary federal law governing the transmission and wholesale of electric power in interstate commerce, providing the regulatory framework for federal oversight of the power industry

Public Utility Regulatory Policies Act (PURPA): Federal legislation that encourages the development of alternative energy sources and promotes competition in power generation by requiring utilities to buy power from qualifying facilities

FERC Regulations: Federal Energy Regulatory Commission rules governing interstate transmission of electricity, wholesale electricity sales, and power market operations

Energy Policy Act of 2005: Comprehensive energy legislation addressing energy production, transmission infrastructure, energy security, and market regulation

Public Utility Holding Company Act: Legislation regulating utility holding companies and their corporate structure to protect consumers and investors

Clean Air Act: Federal environmental law regulating air emissions from stationary and mobile sources, affecting power generation facilities

National Environmental Policy Act (NEPA): Federal law requiring environmental impact assessments for major federal actions affecting the environment

State PUC Regulations: State-specific Public Utility Commission rules governing utility operations, rates, and service within state boundaries

State RPS Requirements: State-specific Renewable Portfolio Standards mandating utilities to source certain percentages of their power from renewable sources

State Environmental Regulations: State-specific environmental protection laws and requirements affecting power generation and transmission

RTO/ISO Rules: Regional Transmission Organization and Independent System Operator market rules and operational requirements for power trading and transmission

Grid Interconnection Requirements: Technical and operational standards for connecting power generation facilities to the electrical grid

Uniform Commercial Code: State-adopted standardized laws governing commercial transactions, including energy sales and contracts

State Contract Law: State-specific laws governing formation and enforcement of contracts, including power purchase agreements

Bankruptcy Laws: Federal and state laws governing bankruptcy proceedings that may affect power purchase agreements and counterparty obligations

Securities Laws: Federal and state regulations governing securities and investments, relevant if the power agreement involves securitization or public offerings

Tax Laws and Incentives: Federal and state tax regulations and incentives affecting power generation, renewable energy, and energy transactions

Anti-trust Regulations: Federal and state competition laws preventing monopolistic practices and ensuring fair market competition in power markets

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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