Document background
This Utility PPA template is specifically designed for power purchase transactions in the Canadian electricity market, where provincial regulation of utilities plays a crucial role. The agreement is intended for use in situations where an independent power producer sells electricity to a regulated utility company on a long-term basis. The Utility PPA incorporates essential elements required by Canadian federal and provincial energy regulations, including provisions for grid connection, environmental compliance, and where applicable, First Nations consultation requirements. It addresses key commercial terms such as pricing mechanisms, delivery obligations, and performance standards, while ensuring compliance with provincial utility commission requirements. This template is particularly relevant for large-scale power generation projects, whether conventional or renewable, and includes necessary provisions for security, performance guarantees, and dispute resolution specific to the Canadian utility sector.
