A Power Sale Agreement is essential for transactions involving the sale and purchase of electrical power in Canada. This document is typically used when power generators, utilities, or large consumers need to establish long-term or significant power supply arrangements. It must comply with both federal legislation (such as the National Energy Board Act) and provincial energy regulations, as electricity regulation in Canada is primarily under provincial jurisdiction. The agreement covers crucial aspects including power specifications, delivery terms, pricing mechanisms, operational protocols, and regulatory compliance requirements. It's particularly relevant in contexts involving independent power producers, utilities, industrial consumers, and power marketers operating in Canadian electricity markets. The document needs regular updates to reflect changes in energy regulations, market conditions, and environmental requirements.
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1. Parties: Identification of the power seller and purchaser with full legal names and addresses
2. Background: Context of the agreement, including facility details and purpose of the power sale
3. Definitions: Defined terms used throughout the agreement
4. Term and Termination: Duration of agreement, renewal options, and termination rights
5. Power Specifications: Details of power to be sold including quantity, availability, and technical specifications
6. Delivery Point and Transportation: Specification of where title and risk transfers, transmission arrangements
7. Pricing and Payment: Price structure, payment terms, billing procedures, and dispute mechanisms
8. Metering and Measurement: Requirements for measuring delivered power and maintaining accuracy
9. Operating Requirements: Day-to-day operational procedures and requirements
10. Force Majeure: Events excusing performance and related procedures
11. Representations and Warranties: Standard and specific warranties regarding capacity to contract and power delivery
12. Regulatory Compliance: Obligations to comply with applicable laws and regulations
13. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions
14. Default and Remedies: Events of default and available remedies
15. Dispute Resolution: Procedures for resolving disputes
16. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Environmental Attributes: Used when dealing with renewable energy credits or carbon offsets
2. Interconnection Requirements: Required when seller is responsible for grid connection
3. Capacity Requirements: Used for agreements including capacity payments or requirements
4. Import/Export Requirements: Required for cross-border power sales
5. Emergency Procedures: Used for critical power supply agreements
6. Performance Security: Required when credit support or security is needed
7. Change in Law Provisions: Used in long-term agreements to address regulatory changes
8. Market Participation: Required when power is sold through organized markets
1. Schedule A - Power Specifications: Detailed technical specifications of power to be delivered
2. Schedule B - Pricing Formula: Detailed pricing calculations and adjustments
3. Schedule C - Operating Procedures: Detailed procedures for day-to-day operations
4. Schedule D - Metering Specifications: Technical requirements for metering equipment
5. Schedule E - Contact Information: List of authorized representatives and contact details
6. Schedule F - Form of Generation Forecast: Template for providing generation forecasts
7. Schedule G - Performance Security Requirements: Details of any required security or credit support
8. Appendix 1 - Single Line Diagram: Technical diagram showing delivery point and interconnection
9. Appendix 2 - Testing Procedures: Procedures for testing and verifying delivery capability
10. Appendix 3 - Communication Protocols: Detailed protocols for operational communications
Relevant legal definitions
Clauses
Relevant Industries
Energy & Utilities
Manufacturing
Mining & Resources
Real Estate
Infrastructure
Renewable Energy
Industrial
Commercial
Public Sector
Retail
Relevant Teams
Legal
Commercial Operations
Energy Trading
Regulatory Affairs
Risk Management
Technical Operations
Business Development
Environmental Compliance
Finance
Engineering
Procurement
Asset Management
Relevant Roles
Energy Trading Manager
Power Plant Manager
Legal Counsel
Commercial Manager
Regulatory Compliance Officer
Energy Operations Director
Risk Manager
Business Development Manager
Technical Operations Manager
Contract Administrator
Energy Markets Analyst
Chief Commercial Officer
Environmental Compliance Manager
Power System Engineer
Energy Procurement Manager
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