A Power Sales Agreement serves as the foundational document for power generation projects in the United States, establishing the commercial and operational framework for electricity sales. This contract type is essential for both conventional and renewable energy projects, providing certainty for project financing and operations. The agreement must comply with federal regulations, including FERC requirements, and relevant state laws. PSAs typically include detailed provisions on energy delivery, pricing mechanisms, performance standards, and risk allocation. They are particularly crucial for project financing, as they provide the revenue certainty needed for investment decisions.
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1. Parties: Identification and details of the power seller and purchaser
2. Background: Context of the agreement, including facility description and purpose
3. Definitions: Key terms used throughout the agreement
4. Sale and Purchase Obligations: Core commitments regarding power delivery and purchase
5. Price and Payment Terms: Pricing structure, billing, and payment provisions
6. Term and Termination: Duration of agreement and termination conditions
7. Operating Requirements: Technical and operational specifications
8. Force Majeure: Provisions for unforeseen circumstances affecting performance
9. Representations and Warranties: Standard representations and warranties from both parties
10. Events of Default: Conditions constituting default and remedies
11. Dispute Resolution: Procedures for resolving disputes between parties
12. Governing Law: Applicable law and jurisdiction
1. Environmental Attributes: Provisions for renewable energy credits and green attributes (used for renewable energy projects)
2. Development Milestones: Project development timeline and requirements (used for new facility construction)
3. Interconnection: Grid connection requirements (used when seller is responsible for interconnection)
4. Credit Support: Requirements for security deposits or guarantees (used when credit protection is needed)
5. Transmission and Delivery: Specific transmission arrangements and delivery points (used when complex delivery structure)
1. Schedule A - Facility Description: Technical specifications of the generating facility
2. Schedule B - Product Price Schedule: Detailed pricing mechanisms and calculations
3. Schedule C - Operating Procedures: Detailed operational requirements and protocols
4. Schedule D - Performance Security: Forms and requirements for performance security
5. Schedule E - Metering Requirements: Specifications for energy measurement and verification
6. Schedule F - Form of Guaranty: Standard form for parent company guarantee if required
7. Schedule G - Interconnection Details: Technical specifications for grid interconnection
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