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Flexible Power Purchase Agreement Template for United States

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Key Requirements PROMPT example:

Flexible Power Purchase Agreement

"Need a Flexible Power Purchase Agreement for a 50MW solar facility in Texas, with delivery starting March 2025, including specific provisions for battery storage and grid curtailment flexibility."

Document background
The Flexible Power Purchase Agreement serves as a cornerstone document in modern energy transactions within the United States. This contract type emerged from the need to accommodate the variable nature of renewable energy generation while meeting the complex requirements of power purchasers. It provides mechanisms for flexible delivery schedules, pricing adjustments, and market participation, while ensuring compliance with federal and state regulations. The agreement is particularly valuable when traditional fixed-volume PPAs may not adequately serve the parties' needs, such as in cases involving intermittent renewable resources or varying load requirements.
Suggested Sections

1. Parties: Identification of contracting parties, including legal entity details

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

3. Definitions: Key terms used throughout the agreement

4. Product Definition: Specification of energy products, capacity, and environmental attributes

5. Pricing Mechanism: Price structure, including fixed and variable components

6. Delivery Terms: Delivery points, scheduling, and flexibility mechanisms

7. Term and Termination: Duration and termination conditions

Optional Sections

1. Credit Support: Security requirements and credit provisions - used when dealing with parties without strong credit ratings

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

3. Storage Provisions: Terms related to energy storage - used when storage facilities are included

Suggested Schedules

1. Facility Description: Technical specifications of the generating facility

2. Product Specifications: Detailed description of energy products and attributes

3. Pricing Schedule: Detailed pricing mechanisms and calculations

4. Operating Procedures: Day-to-day operational requirements and procedures

5. Performance Security: Form and calculation of required security

6. Metering Requirements: Technical specifications for metering and measurement

Authors

Alex Denne

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

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Industries

Federal Power Act (FPA): Primary federal law governing the transmission and wholesale sale of electricity in interstate commerce, establishing federal regulatory authority over the power industry.

PURPA: Public Utility Regulatory Policies Act - Federal law encouraging small-scale renewable energy production and energy efficiency, requiring utilities to buy power from qualifying facilities.

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

Energy Policy Act 2005: Comprehensive energy legislation addressing energy production, including provisions for renewable energy development and grid modernization.

Clean Air Act: Federal law regulating air emissions and environmental compliance requirements that may affect power generation facilities.

SEC Requirements: Securities and Exchange Commission regulations applicable to publicly traded companies involved in power purchase agreements.

State PUC Regulations: State Public Utility Commission rules governing utility operations, rates, and energy procurement within state jurisdiction.

State RPS: State Renewable Portfolio Standards establishing requirements for renewable energy procurement by utilities.

State Energy Market Rules: State-specific regulations governing energy markets, trading, and procurement within state boundaries.

State Environmental Regulations: State-level environmental protection requirements affecting power generation and transmission.

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

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

Interconnection Requirements: Technical and operational standards for connecting to the power grid and maintaining reliable service.

UCC: Uniform Commercial Code provisions governing commercial transactions and contracts, including energy sales.

Contract Law: General principles of contract law affecting formation, enforcement, and interpretation of power purchase agreements.

Bankruptcy Law: Federal and state bankruptcy provisions affecting contract rights and obligations in case of insolvency.

Environmental Credits: Regulations governing renewable energy credits, carbon credits, and other environmental attributes.

Tax Regulations: Federal and state tax laws affecting renewable energy investments, credits, and incentives.

Grid Requirements: Technical standards and operational requirements for power delivery and grid stability.

Consumer Protection Laws: State and federal regulations protecting end-users in energy transactions and contracts.

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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