Ferc Power Purchase Agreement

5:49 am Uncategorized

“The FERC approval allows the Wygen I Plant to continue to provide our electricity distribution customers in Wyoming with stable and cost-effective base energy, provided by mining logistics and an inexpensive local energy resource in Wyoming,” Evans added. “These companies will also help maintain stable long-term mining and facilities operations in Wyoming.” Caution to Forward-Looking Statements This press release contains “forward-looking statements” as defined by the Securities and Exchange Commission (SEC). We make these forward-looking statements based on the safe harbor safeguards of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release, except statements relating to historical facts regarding activities, events or developments that we expect, believe or expect to occur or may occur in the future, are forward-looking statements. “This new contract will provide critical capabilities to our electricity supplier in Wyoming,” said Linn Evans, President and CEO of Black Hills Corp. “The Wygen I Plant is an extremely reliable and inexpensive source of electrical carrying capacity and energy for Cheyenne Light and the best long-term choice to meet the current and future needs of our customers.” An electricity purchase agreement (ECA) or electricity contract is a contract between two parties, one who produces electricity (the seller) and the other who wishes to purchase electricity (the buyer). The ECA sets out all commercial terms of sale of electricity between the two parties, including the date the project will begin to operate commercially, the schedule for the supply of electricity, delivery penalties, terms of payment and termination. A ECA is the main agreement that defines the quality of the turnover and credit of a generating project, making it a key instrument for financing projects. Today, there are many forms of FTA that vary according to the needs of buyers, sellers and financing windows. [1] [2] The buyer generally requires the seller to guarantee that the project meets certain performance standards.

Performance guarantees allow the buyer to plan accordingly when developing new facilities or attempting to meet demand plans, which also encourages the seller to keep appropriate records. In cases where the supplier`s service does not meet the contractual energy needs of the buyer, the seller is responsible for reducing these costs. . . .

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