Power Supply Agreement: Definition, Terms, Example
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What is a Power Supply Agreement?
A power supply agreement is a contract between two parties where one party agrees to supply quality power to the other for a price. The key terms in the contract cover how much power is being supplied, what the purchase price is, and how payment schedules will work. The power supply agreement also provides important details about the terms and conditions of the business relationship, such as dispute resolution techniques and what the roles and responsibilities of each party to the contract are. This helps to promote a positive working relationship, which can help to avoid costly litigation.
Common Sections in Power Supply Agreements
Below is a list of common sections included in Power Supply Agreements. These sections are linked to the below sample agreement for you to explore.
Power Supply Agreement Sample
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| A. | Firm Electric Power And Energy Services |
| B. | Ancillary Services |
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| A. | Charges For Energy Supplied To Customer (For Sales Other Than Market Price Sales And Other Than For Sales of Ancillary Services under the Ameren OATT) |
| 1. | Capacity Charges |
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| 2. | Energy Charges |
| B. | Charges For Energy Supplied To Customer For Market Price Sales |
| C. | Charges For Ancillary Services for Ameren OATT Transactions |
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| A. | BILLING FOR SERVICE: Bills for Energy supplied to Customer for sales other than Market Price Sales will be based upon the Quantity of capacity and amount of energy supplied by Company at the Points of Delivery. Bills and payment for ancillary services shall be rendered consistent with Section 8C of the EPSA. Within 15 days after the close of each calendar month, the Company will issue the bill to Customer electronically (commonly referred to as “EDI”), or other suitable means. If the Company is unable to obtain meter information, or if final Market Price Sales data or ancillary services data is unavailable, an estimated bill will be issued, computed on the basis of Customer’s previous use together with such other information as is available. Once all billing information is considered final, the estimated bill will be adjusted and any payment due difference will be reflected on the next scheduled billing. |
| B. | PAYMENT PERIODS: The last date for payment of the “net amount” shown on the bill for Energy supplied to Customer for sales other than Market Price Sales and for ancillary services shall be seven days after the date the bill is issued (hereinafter “Net Payment Period”). Payment of all amounts for all Energy supplied to Customer for Market Price Sales and sales of ancillary services shall be due on the same date. In the event of a disputed bill Customer shall pay the undisputed portion within the Net Payment Period. When the last day of any Net Payment Period falls on a day other than a business day of Company, such period will be automatically extended to include the next following business day. Other than a business day of Company shall include Saturdays, Sundays, and the following holidays: New Year’s day, Lincoln’s Birthday, Washington’s Birthday, Martin Luther King’s Birthday, Good Friday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran’s Day, Thanksgiving day, Friday following Thanksgiving day, Christmas Eve (the last day of regular work schedule prior to Christmas day), Christmas day and New Year’s Eve (the last day of regular work schedule prior to New Year’s day). Whenever a holiday falls on Sunday the following Monday will not be considered a business day. Whenever a holiday falls on a Saturday, the prior Friday will not be considered a business day. |
| C. | PAYMENT AND LATE PAYMENTS: Customer shall make payment to Company by wire transfer, or other acceptable means, within the Net Payment Period in immediately available U.S. funds. When a bill is paid after the last date for payment in the “net amount” shown on the bill a late payment charge equivalent to one and one half (1 1/2) percent will be assessed each month on the unpaid balance. |
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AMEREN ENERGY MARKETING
COMPANY
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CENTRAL ILLINOIS PUBLIC
SERVICE COMPANY
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By
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s/ Andrew M. Serri
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By
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s/ Craig D. Nelson
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(Company Officer Signature)
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(Customer Officer Signature)
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Andrew M. Serri
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Craig D. Nelson
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(Printed Name)
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(Printed Name)
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Vice President of Sales and Marketing
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Vice President
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(Title)
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(Title)
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Reference:
Security Exchange Commission - Edgar Database, EX-10.2 6 ex10_2.htm EXHIBIT 10.2 POWER SUPPLY AGREEMENT, Viewed March 20, 2023, View Source on SEC.
Who Helps With Power Supply Agreements?
Lawyers with backgrounds working on power supply agreements work with clients to help. Do you need help with a power supply agreement?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate power supply agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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"Was flexible in scope as things changed. Helped get the job done."
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