An electricity tolling agreement is a contract between a power plant owner and a tolling company. The agreement allows the tolling company to use the power plant`s facilities to generate electricity. The power plant owner retains ownership of the electricity produced, while the tolling company is responsible for the cost of fuel, maintenance, and regulatory compliance. In this article, we will provide a sample electricity tolling agreement and discuss its key components.
PARTIES
This agreement is made between [Power Plant Owner] (the “Owner”) and [Tolling Company] (the “Tolling Company”).
BACKGROUND
The Owner owns and operates a [type of power plant] located at [address]. The Tolling Company desires to utilize the facilities of the Power Plant to generate electricity and sell it to third-party customers.
TERMS
1. Term of the Agreement
The term of this agreement shall be for [number of years] commencing on [start date] and ending on [end date].
2. Capacity
The Owner agrees to make available to the Tolling Company, through its use of the Power Plant, a capacity of [capacity in MW] of electric power.
3. Fuel
The Tolling Company shall be responsible for the cost and supply of fuel used in the generation of electric power. The Owner may provide guidance on the fuel type and quality required for proper operation of the Power Plant.
4. Payment
The Tolling Company shall pay the Owner a tolling fee per MWh of electricity produced by the Power Plant. The tolling rate shall be agreed upon by the parties and included as an exhibit to this agreement.
5. Regulatory Compliance
The Tolling Company shall be responsible for obtaining all required permits and complying with all applicable laws and regulations related to the operation of the Power Plant. The Owner shall provide reasonable assistance to the Tolling Company in obtaining such permits.
6. Maintenance and Repairs
The Tolling Company shall be responsible for maintaining and repairing the Power Plant, except for major overhauls and capital upgrades. The Owner shall be responsible for major overhauls and capital upgrades.
7. Force Majeure
Neither party shall be liable for delay or default in the performance of its obligations under this agreement if such delay or default is caused by an event that is beyond the reasonable control of the affected party, such as acts of nature, strikes, or acts of terrorism.
CONCLUSION
The above sample electricity tolling agreement outlines the basic terms and conditions that govern the relationship between the Power Plant Owner and the Tolling Company. Other important provisions that could be added to the agreement include termination, indemnification, and dispute resolution. As an experienced copy editor in SEO, it’s important to ensure that the agreement is well-written, free of errors, and optimized for search engines. Overall, an electricity tolling agreement is a vital contract that provides the framework for the effective utilization of power plant facilities.