---
title: "US power purchase agreement term sheet"
url: "https://ailawframework.com/precedents/energy-resources-and-mining/us-ppa-term-sheet"
type: "precedent"
site: "AI Law Framework"
id: "a13-us-ppa-term-sheet"
area_id: "A13"
kind: "letter"
ai_level: "yellow"
version: 1
task_ids: ["A13-T1-R7"]
law_stated_as_at: "2026-10-22"
---

# 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.

Canonical page: https://ailawframework.com/precedents/energy-resources-and-mining/us-ppa-term-sheet  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Energy, Resources & Mining](https://ailawframework.com/precedents/energy-resources-and-mining.md)
- Jurisdictions: United States
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the 3 authorities it cites, for United States.

## 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

- [Draft or review a royalty, streaming or offtake agreement](https://ailawframework.com/practice/energy-resources-and-mining/draft-or-review-a-royalty-streaming-or-offtake-agreement.md)

## 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.

## Authorities

- [16 U.S.C. § 824](https://www.law.cornell.edu/uscode/text/16/824)
- [16 U.S.C. § 824d](https://www.law.cornell.edu/uscode/text/16/824d)
- [16 U.S.C. § 824a-3](https://www.law.cornell.edu/uscode/text/16/824a-3)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/energy-resources-and-mining/us-ppa-term-sheet and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*