Establishing secure connection…Loading editor…Preparing document…

Energy Purchase Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

ENERGY PURCHASE AGREEMENT

This Energy Purchase Agreement ("Agreement") is made and entered into as of between Seller Name: , a organized under the laws of , with principal place of business at ("Seller"), and Buyer Name: , a organized under the laws of , with principal place of business at ("Buyer").

RECITALS

WHEREAS, Seller owns, operates or has rights to electricity produced at the generating facility known as located at and capable of supplying energy as set forth herein; and

WHEREAS, Buyer desires to purchase and receive, and Seller desires to sell and deliver, electrical energy and associated attributes under the terms and conditions of this Agreement; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to scheduling, delivery, metering, invoicing, environmental attribute ownership and risk allocation.

NOW, THEREFORE

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

Capitalized terms used in this Agreement shall have the meanings set forth in Appendix A or, if not defined therein, the meanings commonly used in the energy industry. For purposes of this Agreement, the following definitions apply:

"Contract Quantity" means the maximum aggregate quantity of electrical energy to be delivered by Seller and purchased by Buyer, equal to during any Contract Year unless otherwise adjusted under this Agreement.

"Delivery Point" means the point of interconnection at where title and responsibility for energy transfer to Buyer in accordance with Section 4.

2. TERM

The term of this Agreement shall commence on and continue through unless earlier terminated in accordance with the provisions of this Agreement (the "Term").

3. PURCHASE AND SALE; DELIVERY

During the Term, Seller shall sell to Buyer, and Buyer shall purchase from Seller, all energy produced by the Facility up to the Contract Quantity and delivered to the Delivery Point in accordance with the scheduling procedures of the applicable regional transmission organization or balancing authority.

Seller shall be responsible for arranging and paying for physical delivery to the Delivery Point and for any imbalances, losses, or transmission charges on Seller's side of the Delivery Point, unless otherwise expressly provided herein.

4. PRICE; PAYMENT; PAYMENT CURRENCY

The price for energy delivered hereunder shall be dollars per MWh unless adjusted pursuant to this Agreement. All invoices and payments shall be made in .

Seller shall submit invoices to Buyer monthly based upon meter readings and confirmed deliveries. Buyer shall remit payment within days after receipt of a properly rendered invoice, subject to authorized adjustments or disputes under Section 6.

5. METERING; MEASUREMENT; SCHEDULING

Metering at the Delivery Point shall be performed by the following meter owner/operator: . Metering data shall be the sole basis for invoicing unless manifest error is established.

Parties shall comply with applicable scheduling and nomination protocols of the relevant transmission providers. Each party shall provide necessary scheduling information, including generation schedules and curtailment notices, in accordance with industry practice.

6. INVOICING; DISPUTES; SETTLEMENT

Seller shall deliver invoices to Buyer at the billing address specified in Section 14. Buyer must notify Seller in writing of any billing dispute within days of receipt. Unresolved disputes will be settled in accordance with the dispute resolution provisions herein, but payment of undisputed amounts shall not be withheld.

7. ENVIRONMENTAL ATTRIBUTES

Unless otherwise expressly agreed in writing, all environmental attributes, renewable energy certificates, emissions reductions, and similar attributes associated with the energy delivered hereunder ("Environmental Attributes") shall be . The parties shall cooperate to effectuate registration and transfer of such Environmental Attributes in the relevant tracking system.

8. FORCE MAJEURE

Neither party shall be liable for failure or delay in performance due to Force Majeure, defined as an event beyond the reasonable control of the non-performing party, including but not limited to acts of God, war, strikes, grid blackouts, governmental orders, or severe weather. The affected party shall give prompt notice and use commercially reasonable efforts to mitigate and resume performance. Notice of a Force Majeure event must be provided within business days of its occurrence.

9. DEFAULT; REMEDIES

If a party materially defaults in the performance of any material obligation under this Agreement and fails to cure such default within days after written notice, the non-defaulting party may terminate this Agreement and pursue all remedies available at law or in equity, including damages and specific performance, subject to the limitations set forth herein.

10. INDEMNITY; LIMITATION OF LIABILITY

Each party shall indemnify, defend and hold harmless the other party from claims, losses, liabilities, damages and expenses (including reasonable attorneys' fees) arising out of its breach of this Agreement, negligence, willful misconduct or violation of law. EXCEPT FOR LIABILITY ARISING FROM WILLFUL MISCONDUCT, GROSS NEGLIGENCE, OR INDEMNITY OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES.

11. CONFIDENTIALITY

Each party shall keep confidential any non-public information received from the other party in connection with this Agreement and shall not disclose such information except to its officers, employees, affiliates, advisors or as required by law. Confidential information does not include information that is or becomes generally available to the public other than as a result of unauthorized disclosure.

12. ASSIGNMENT

Neither party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld, provided that either party may assign this Agreement without consent to an affiliate or in connection with a merger, sale of substantially all assets, or financing where the assignee assumes the assigning party's obligations.

13. NOTICES

All notices under this Agreement shall be in writing and sent to the addresses specified above, or such other address as a party may designate by written notice to the other, and shall be effective upon receipt.

14. AMENDMENT; WAIVER; COUNTERPARTS

This Agreement may be amended or modified only by a written instrument signed by both parties. No waiver of any provision shall be effective unless in writing and signed by the waiving party. This Agreement may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one instrument.

15. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles. This Agreement, together with all appendices and exhibits, constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements and understandings. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

16. MISCELLANEOUS PROVISIONS

The parties shall cooperate in good faith to execute any further instruments and take any further action reasonably necessary to effectuate the terms and intent of this Agreement. Headings are for convenience only and shall not affect interpretation.

Seller:

By:

Date:

Buyer:

By:

Date:

Enter text✕

What an Energy Purchase Agreement Is and When It Applies

An Energy Purchase Agreement (EPA) is a contract that sets the terms for the sale and purchase of electrical energy or capacity between a generator, utility, or corporate buyer. Typical provisions define quantity, delivery periods, pricing (fixed, indexed, or formula), termination rights, metering and measurement, force majeure, and credit or collateral requirements. EPAs can be long‑term (10–25 years) or short‑term and often include operational schedules, performance guarantees, and remedies for underperformance. Parties use EPAs to allocate commercial risk, establish billing and settlement procedures, and document regulatory compliance obligations.

Why a Clear Energy Purchase Agreement Matters

A well‑drafted EPA fixes commercial terms, minimizes disputes over delivery and measurement, and allocates regulatory and credit risk. Electronic execution and structured templates speed negotiation while preserving enforceability under federal ESIGN (15 U.S.C. ch. 96) and state UETA frameworks.

Why a Clear Energy Purchase Agreement Matters

Who Typically Prepares and Signs an Energy Purchase Agreement

Organizations that prepare, approve, or sign EPAs range across legal, commercial, and technical teams within buyer and seller entities.

  • Corporate energy buyers — procurement, treasury, and legal reviewers who manage credit and settlement obligations.
  • Independent power producers — commercial and operations teams that manage delivery schedules, testing, and performance guarantees.
  • Utilities and load-serving entities — regulatory and procurement staff handling tariff compliance and system integration.

Execution often requires coordinated approvals: commercial sign-off, legal review, and authorized signature by an officer or delegated agent.

Common signer roles and responsibilities

Authorized Officer

Chief executive, CFO, or other officer with delegated authority. Responsible for final approval of contract terms, credit commitments, and execution on behalf of the legal entity.

Contract Manager

Commercial or operations lead who manages scheduling, notice delivery, performance monitoring, and post‑execution amendments or settlements.

Core Elements to Include in a Professional Energy Purchase Agreement

Ensure the EPA clearly defines commercial and operational mechanics so both parties understand obligations and remedies.

Quantity & Term

Specify delivered energy or capacity units, seasonality, contract start and end dates, and any renewal or extension provisions.

Pricing Mechanism

Define fixed price, index link (e.g., hub or LMP), floor/ceiling, settlement adjustments, and invoicing frequency.

Delivery & Metering

State delivery point, metering party, measurement standards, and how meter disputes are resolved.

Credit & Security

Detail credit support, collateral thresholds, events of default, and cure periods for payment or performance failures.

Force Majeure

Describe excused performance events, notice requirements, and allocation of risk during outages or grid emergencies.

Termination & Remedies

Include termination triggers, settlement formulas for early termination, indemnities, and limitation of liability clauses.

Step-by-Step: Completing an Energy Purchase Agreement

Follow these steps in order to prepare, review, and execute the EPA with clarity and auditability.

  • 01
    Draft Terms: Assemble commercial, pricing, and delivery clauses.
  • 02
    Legal Review: Have counsel validate risk allocation and compliance.
  • 03
    Credit Check: Confirm counterparty collateral and cure rights.
  • 04
    Execute: Obtain authorized signatures and retain executed copies.

Typical Execution Workflow for Electronic EPA Completion

Electronic completion follows a standard route that preserves evidence and simplifies multi‑party signings.

  • Upload Document: Sender uploads final EPA to the signing platform.
  • Place Fields: Add signature, initials, date, and conditional fields.
  • Invite Signers: Send secure signing links or email invitations.
  • Capture Audit Trail: Platform records timestamps, IPs, and actions.

Recommended Digital Workflow Settings

Configure workflow options to match the contract complexity and required signer authentication level.

Field Configuration
Signing Order Sequential for layered approvals
Authentication Email + SMS code for external counterparts
Conditional Fields Enable for pricing or milestone-based items
Retention Set automatic archival after execution

Digital Signing and eSubmission Considerations

Choose platform settings that provide an auditable trail and meet regulatory needs while minimizing signer friction.

  • File Formats: PDF or DOCX accepted
  • Integrations: Connect to ERP and CRM systems
  • Authentication: Support for SMS, email, and SSO

Ensure the chosen vendor supports required compliance standards (ESIGN/UETA) and, if needed, HIPAA or 21 CFR Part 11 controls.

Key Dates and Deadlines to Track in an EPA

Record all milestone dates explicitly to avoid disputes around delivery, billing, and termination.

Effective Date Entry:

Date when obligations commence and triggers remedies.

Commercial Operation Date:

Start date for delivered energy and billable volumes.

Payment Due Dates:

Specify invoice timing and late payment interest.

Notice Periods:

Termination, default, and force majeure notice windows.

Metering Dispute Window:

Timeframe for submitting measurement disputes.

Milestone Sequence from Negotiation to Operation

A typical EPA progresses through well‑defined milestones that should be tracked and documented.

01

Negotiation Complete

Parties finalize commercial and legal terms.

02

Credit and Interconnection

Secure collateral and grid access approvals.

03

Execution and Permits

Sign EPA and obtain necessary regulatory permits.

04

Commercial Operation

Begin delivery, invoicing, and settlement processes.

Common Preparation Errors to Avoid

  • Vague delivery point descriptions leading to meter disputes and settlement disagreements; specify precise interconnect point identifiers and metering party responsibilities.
  • Undefined pricing formulas that reference undefined indices or periods; include clear index sources, time zones, and rounding rules to avoid ambiguity.
  • Missing or incomplete credit support language that leaves collateral triggers undefined; state numeric thresholds, cure periods, and acceptable security types.
  • Failure to align notice and cure periods across related clauses, creating inconsistent termination triggers or unfair unilateral remedies.

Key Risks and Contractual Penalties

Performance Shortfall: Liquidated damages may apply
Late Payment: Interest and collection fees
Termination Costs: Early termination settlement
Regulatory Noncompliance: Fines or permit revocation
Metering Disputes: Rebilling and adjustments
Credit Exposure: Increased collateral demands

eSignature Vendor Comparison for Energy Purchase Agreement Workflows

Compare basic pricing and common enterprise features when selecting an eSignature provider for EPA execution. signNow is listed first per vendor comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Yes Yes Yes Yes
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Security and Compliance Controls to Preserve EPA Integrity

Transport Encryption: TLS 1.2/1.3 in transit
Data-at-Rest: AES-256 encryption at rest
Certifications: SOC 2 Type II and ISO 27001 available
Regulatory Compliance: ESIGN and UETA support
Healthcare Controls: HIPAA covered with BAA
Audit Trail: Immutable timestamps and activity logs

Frequently Asked Questions About Energy Purchase Agreements

Answers to common execution, legal, and technical questions when preparing or signing an EPA.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users