Letter · Energy, Resources & Mining

US power purchase agreement term sheet

Term sheet for a bilateral sale of electric energy. Price, volume and credit stay blank. Federal Power Act provisions that were read are recorded as questions, not as a conclusion that the sale must be filed.

Kind
Letter. A letter or email you adapt and send.
Where it applies
United States
AI use
Yellow You and the tool draft together, with you directing. You check every statement you rely on.
Law stated as at
22 October 2026
Status
Maintained. Checked on 22 October 2026 against the 3 authorities it cites, for United States.
Version
1
Source
Written for this library

When to use it

Use when a buyer and a seller are outlining a wholesale or other power sale before the long-form contract. Do not use it as a rate-schedule filing or as a decision that the Commission has jurisdiction.

Used for these tasks

Each task page says how far AI may help with the task and what the lawyer must review.

How AI may be used

Yellow: the lawyer fills the commercial terms and decides whether sections 824 and 824d apply.

AI may

  • Set out product, delivery point, term, price, volume and credit support as blanks.
  • Record the interstate-wholesale test and the sixty-day notice rule as questions for the lawyer.
  • State that the term sheet is not a rate schedule and not a qualifying-facility determination.

AI must not

  • Do not state that every bilateral power contract must be filed.
  • Do not set a price by reference to avoided cost. The incremental-cost definition is a limit on a Commission rule under section 824a-3, not a price for this sheet.
  • Do not name an interconnection queue or a regional tariff that was not opened.

The lawyer checks

  • Decide whether the sale is a sale of electric energy at wholesale in interstate commerce.
  • Read section 824(f) before treating a party as outside the subchapter.
  • If either party claims qualifying-facility status, use the separate question list before relying on a purchase obligation.

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

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