Power Purchase Commitment

{
  "id": "MLC-T-ENV-021824",
  "term": "Power Purchase Commitment",
  "field": "Environment",
  "definition": "Commitment or obligation of a utility to purchase electric power from a facility pursuant to:(1) A power sales agreement;(2) A state regulatory authority order requiring a utility to:(i) Enter into a power sales agreement with the facility;(ii) Purchase from the facility; or (iii) Enter into arbitration concerning the facility for the purpose of establishing terms and conditions of the utility's purchase of power;(3) A letter of intent or similar instrument committing to purchase power (actual electrical output or generator output capacity) from the source at a previously offered or lower price and a power sales agreement applicable to the source is executed within the time frame established by the terms of the letter of intent but no later than November 15, 1993 or, where the letter of intent does not specify a time frame, a power sale agreement applicable to the source is executed on or before November 15, 1993; or(4) A utility competitive bid solicitation that has resulted in the selection of the qualifying facility or independent power production facility as the winning bidder.",
  "references": [
    "40 CFR 72.2 (CFR 2013)"
  ],
  "url": "https://mlchart.com/terminology/environment/power-purchase-commitment/"
}