Contingencies To Build Into Your Power Contract
Abstract
Planning to sign up for deregulated electricity? Ready to sign that
contract? Think carefully and consider what might change during its
term. Even a short (i.e., one-year) contract can carry with it some hidden
liabilities. And remember: we are all in a transition to competition, not yet
in a world where real utility competition exists. In most states, that tran-
sition may continue for several years, during which public utility com-
missions (PUCs), the Federal Energy Regulatory Commission (FERC),
legislatures, and courts may change the rules. Here’s a checklist to use
when reviewing even simple power contracts.