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Master Power Purchase And Sale Agreement Generator for the USA

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Key Requirements PROMPT example:

Master Power Purchase And Sale Agreement

"I need a Master Power Purchase And Sale Agreement for a renewable energy company selling solar power to multiple utilities in California, with specific provisions for environmental attributes and RECs, and flexible scheduling arrangements to account for variable generation."

Document background
The Master Power Purchase And Sale Agreement (MPPSA) serves as the primary contractual framework for wholesale power transactions in the United States energy market. This agreement type was developed to standardize power trading practices while maintaining flexibility for specific transaction requirements. It is particularly useful for parties engaging in multiple power transactions over time, as it eliminates the need to negotiate complete terms for each individual deal. The agreement incorporates federal regulatory requirements, including FERC regulations, and state-specific utility commission rules, while addressing crucial aspects such as delivery obligations, pricing mechanisms, credit requirements, and risk allocation.
Suggested Sections

1. Parties: Identification of the buyer and seller, including legal entity details

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Transaction Terms: Core commercial terms including price, quantity, and delivery points

5. Performance Obligations: Responsibilities of each party regarding power delivery and receipt

6. Billing and Payment: Payment terms, invoicing procedures, and dispute resolution

7. Default and Remedies: Events of default and available remedies

8. Force Majeure: Circumstances excusing performance

Optional Sections

1. Credit Support: Requirements for guarantees or collateral when dealing with parties with limited credit history or financial strength

2. Trading Limits: Maximum exposure limits between parties for cases of significant trading volume or credit risk

3. Environmental Attributes: Treatment of renewable energy credits or other environmental benefits when dealing with renewable energy sources

Suggested Schedules

1. Schedule P: Products and Pricing: Detailed specification of power products and pricing mechanisms

2. Schedule M: Governmental Entity or Public Power System: Special provisions for governmental entities when one party is a public entity

3. Collateral Annex: Detailed credit support arrangements when credit support is required

4. Transaction Confirmation Form: Template for documenting individual transactions under the master agreement

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: Primary federal law governing the regulation of electric utilities, including transmission and wholesale power sales in interstate commerce

PURPA: Public Utility Regulatory Policies Act - Promotes energy conservation and greater use of domestic and renewable energy

FERC Regulations: Federal Energy Regulatory Commission rules governing interstate transmission and wholesale electricity markets

Energy Policy Act: Comprehensive energy legislation addressing energy production, efficiency standards, and market regulations

Clean Air Act: Environmental regulations affecting power generation facilities and emissions standards

Sherman Antitrust Act: Federal competition law preventing monopolistic practices in power markets

Commodity Exchange Act: Regulations governing energy derivatives and commodity trading aspects of power contracts

State PUC Regulations: State-specific Public Utility Commission rules governing utility operations and retail electricity sales

State Energy Regulations: State-specific requirements including renewable portfolio standards and energy efficiency programs

NAESB Guidelines: North American Energy Standards Board wholesale and retail market standards for electric industry

EEI Standards: Edison Electric Institute standardized contract forms and trading practices for wholesale electricity

ISO/RTO Rules: Regional grid operator requirements for power trading and transmission system operations

UCC Provisions: Uniform Commercial Code provisions governing commercial transactions including energy sales

Bankruptcy Laws: Provisions affecting contract performance and credit requirements in case of bankruptcy

Dodd-Frank Act: Requirements for energy trading and derivatives, including reporting and clearing obligations

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

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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