Power Purchase Contract Template for United States

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Key Requirements PROMPT example:

Power Purchase Contract

"I need a Power Purchase Contract for a 50MW solar facility in Texas, where we'll be selling electricity to a corporate buyer with a 15-year term starting March 2025, including provisions for renewable energy credits and storage capabilities."

Document background
Power Purchase Contracts are essential instruments in the U.S. energy market used to facilitate long-term electricity supply arrangements. These contracts provide the foundation for project financing in power generation projects and are particularly crucial for renewable energy developments. A Power Purchase Contract typically includes provisions for energy pricing, delivery points, performance guarantees, and credit requirements, while ensuring compliance with both federal and state regulatory frameworks. These agreements are commonly used when developing new generation facilities, securing long-term power supply, or establishing renewable energy procurement strategies.
Suggested Sections

1. Parties: Identification of the power seller and purchaser with full legal details

2. Background: Context of the agreement and brief description of the project

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase Obligations: Core obligations regarding power delivery and purchase

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

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

7. Performance Security: Credit support and security requirements

8. Metering and Testing: Requirements for measuring delivered power

Optional Sections

1. Green Attributes: Treatment of renewable energy credits and environmental attributes - used for renewable energy projects

2. Capacity Rights: Treatment of capacity rights and related products - used when capacity markets are relevant

3. Development Milestones: Project development timeline and requirements - used for projects not yet operational

Suggested Schedules

1. Facility Description: Technical details of the generating facility

2. Product Specifications: Detailed power product specifications including quantity and quality

3. Pricing Schedule: Detailed pricing calculations and adjustments

4. Operating Procedures: Detailed procedures for day-to-day operations

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 sale of electricity in interstate commerce, establishing FERC's regulatory authority

Public Utility Regulatory Policies Act (PURPA): Federal legislation that requires utilities to buy power from qualifying facilities, promoting renewable energy and cogeneration

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

Energy Policy Act: Comprehensive energy legislation addressing energy production, transmission, distribution, and consumption in the United States

Clean Air Act: Federal law regulating air emissions and environmental standards that impact power generation facilities

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

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

State Energy Laws: State-specific legislation including renewable portfolio standards and energy efficiency requirements

State Environmental Regulations: State-level environmental protection requirements that may be more stringent than federal standards

State Licensing Requirements: State-specific permits and licenses needed for power generation and sales

State Interconnection Requirements: Technical and operational standards for connecting to the state's electric grid

NERC Standards: North American Electric Reliability Corporation's mandatory reliability standards for power system operations

RTO/ISO Requirements: Regional Transmission Organization or Independent System Operator rules for market participation and grid operations

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

Local Zoning and Permitting: Municipal and county requirements for facility siting, construction, and operation

Grid Interconnection Standards: Technical requirements for safely and reliably connecting to the electric grid

ESG Requirements: Environmental, Social, and Governance standards affecting power purchase agreements and facility operations

Securities Regulations: Federal and state securities laws that may apply to certain power purchase arrangements

Antitrust Laws: Federal and state competition laws governing market behavior and business combinations

Tax Regulations: Federal and state tax laws, including renewable energy credits and incentives applicable to power purchase agreements

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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