Power sales contract/energy supply agreements

The factors involved in negotiating power purchase/sales arrangements in Ontario's newly deregulated electricity market are described, and the ways in which they will evolve in the future are predicted. Indications are that the trends that will govern the changes in the electric power industry will be the same as those that existed in the natural gas industry. For this reason, a comparative evaluation of purchase and sale agreements in the two industries was provided. Traditional power purchase arrangements, including requests for proposals, the seller's response, the memorandum of understanding, and the principal terms of a traditional bilateral power purchase agreement were examined. The author predicted that over time, and probably fairly fast in power pool jurisdictions, the traditional power purchase agreement will give way to the concept of energy as a pure commodity and to a standard form of agreement. 1 appendix