Firm Power Contractual Arrangement

{
  "id": "MLC-T-ENV-011094",
  "term": "Firm Power Contractual Arrangement",
  "field": "Environment",
  "definition": "1. Unit participation power sales agreement under which a utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy generated by any specified generating unit and pays its proportional amount of such unit's total costs, pursuant to a contract:(1) For the life of the unit;(2) For a cumulative term of no less than 30 years, including contracts that permit an election for early termination; or(3) For a period equal to or greater than 25 years or 70 percent of the economic useful life of the unit determined as of the time the unit was built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period.\n\n2. Unit participation power sales agreement under which a utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy from any specified unit and pays its proportional amount of such unit's total costs, pursuant to a contract:(1) For the life of the unit;(2) For a cumulative term of no less than 30 years, including contracts that permit an election for early termination; or(3) For a period equal to or greater than 25 years or 70 percent of the economic useful life of the unit determined as of the time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period.\n\n3. Unit participation power sales agreement under which a utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy generated by any specified unit and pays its proportional amount of such unit's total costs, pursuant to a contract:(1) For the life of the unit;(2) For a cumulative term of no less than 30 years, including contracts that permit an election for early termination; or(3) For a period no less than 25 years or 70 percent of the economic useful life of the unit determined as of the time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period. [40 CFR 97.302 (CFR 2013)][40 CFR 97.402 (CFR 2013)][40 CFR 97.502 (CFR 2013)][40 CFR 97.602 (CFR 2013)][40 CFR 97.702 (CFR 2013)] [40 CFR 97.202 (CFR 2013)]\n\n4. Unit participation power sales agreement under which a utility or industrial customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and associated energy from any specified unit and pays its proportional amount of such unit’s total costs, pursuant to a contract: (1) For the life of the unit; (2) For a cumulative term of no less than 30 years, including contracts that permit an election for early termination; or (3) For a period equal to or greater than 25 years or 70 percent of the economic useful life of the unit determined as of the time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period. [40 CFR 96.102 (CFR 2018)][40 CFR 96.202 (CFR 2018)][40 CFR 96.302 (CFR 2018)]",
  "references": [
    "40 CFR 72.2 (CFR 2013)",
    "40 CFR 97.2 (CFR 2013)",
    "40 CFR 97.102 (CFR 2013)",
    "40 CFR 96.2 (CFR 2018)"
  ],
  "url": "https://mlchart.com/terminology/environment/firm-power-contractual-arrangement/"
}