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Energy Usage Agreement

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ENERGY USAGE AGREEMENT

Parties and Effective Date

This Energy Usage Agreement (the Agreement) is entered into as of (Effective Date) by and between the Provider and the Client identified above.

Recitals

WHEREAS, Provider is engaged in the business of procuring, supplying and managing electrical energy and related services and possesses necessary experience and capacity to supply energy services to Client under the terms of this Agreement; and

WHEREAS, Client desires to obtain from Provider certain energy supply, metering, and usage-management services for the Premises described in this Agreement and Provider agrees to provide such services in accordance with the terms herein; and

WHEREAS, the parties intend by this Agreement to allocate responsibilities for delivery, measurement, payment and the management of energy consumption in order to promote efficient use of energy and to set forth remedies for breach.

Scope of Work

Provider shall supply energy and related monitoring, metering, reporting and demand-management services for the Client's premises listed above. Services include procurement of energy commodities, scheduling, settlement support, periodic usage reporting, and technical recommendations reasonably necessary for the management of energy consumption. Provider will perform services in a commercially reasonable manner in accordance with industry standards.

Payment Terms

The Client shall pay Provider pursuant to the following schedule (select all that apply):

Monthly Quarterly Annually One-time upon invoice

Provider will issue invoices to Client within days of measurement period end. Payment is due within days of invoice date.

Any amount not paid when due shall accrue interest at the lesser of (i) per month or (ii) the maximum rate permitted by applicable law. Provider may suspend services for accounts delinquent by more than days after written notice.

Term and Termination

Term: This Agreement commences on and continues until unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon prior written notice to the other party delivered at least days before the effective date of termination.

Termination for Cause: Either party may terminate for material breach by the other party if the breaching party does not cure such breach within thirty (30) days after receipt of written notice specifying the breach. Termination does not relieve the breaching party of liability for damages resulting from the breach.

Confidentiality

Each party (the Receiving Party) shall keep confidential and shall not disclose to any third party any Confidential Information of the other party (the Disclosing Party) disclosed in connection with this Agreement. "Confidential Information" means non-public commercial, technical, financial and operational information, including but not limited to energy usage data, pricing, forecasts, reports, and proprietary methods. Confidential Information does not include information that is (i) publicly available through no fault of Receiving Party, (ii) rightfully received from a third party without restriction, or (iii) independently developed without use of the Disclosing Party's Confidential Information.

The Receiving Party may disclose Confidential Information to its employees, affiliates, contractors or advisors who have a need to know, provided that such persons are bound by confidentiality obligations no less protective than those set forth in this Agreement. The obligations under this Section shall survive termination of this Agreement for a period of three (3) years, except that trade secrets shall remain protected for as long as they retain trade secret status.

Liability and Indemnification

Provider shall perform services with commercially reasonable skill and care. Except for willful misconduct or gross negligence, neither party shall be liable to the other for consequential, indirect, special or punitive damages. Each party shall indemnify and hold the other harmless from third-party claims arising out of the indemnifying party's breach of this Agreement or negligent acts or omissions.

Compliance with Law; Metering and Access

Each party shall perform its obligations in compliance with applicable laws, regulations and utility requirements. Client shall permit Provider and authorized agents reasonable access to the Premises and metering equipment for installation, inspection, maintenance and meter reading subject to prior notice except in emergencies.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles.

Entire Agreement; Amendments

This Agreement, together with any schedules, exhibits and written attachments expressly incorporated herein, constitutes the entire agreement between Provider and Client with respect to the subject matter and supersedes all prior and contemporaneous agreements, representations and understandings, whether written or oral. Any amendment or modification to this Agreement must be in writing and signed by authorized representatives of both parties.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above, or to such other address as either party may specify in writing, and shall be deemed given upon personal delivery, three (3) business days after deposit in the mail (first-class, postage prepaid), or upon confirmed electronic delivery to an authorized recipient.

Miscellaneous

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. The waiver of any breach or default shall not constitute a waiver of any subsequent breach or default. Neither party may assign this Agreement without the prior written consent of the other, except that Provider may assign to an affiliate or successor in interest.

Provider: Printed Name

By: Signature

Date

Client: Printed Name

By: Signature

Date

Enter text✕

What an Energy Usage Agreement Covers

An Energy Usage Agreement is a written contract that defines the terms under which energy consumption, billing, allocation, and related responsibilities are allocated between parties. Typical parties include a utility provider, a property owner, a tenant, or a third‑party energy manager. The agreement sets rates or allocation formulas, billing cycles, metering and access provisions, data sharing permissions, dispute resolution, and conditions for termination. It may also address demand charges, estimated usage reconciliation, and responsibilities for energy efficiency measures or on‑site generation. Use clear definitions so obligations are enforceable and measurable.

Why a Clear Energy Usage Agreement Matters

A precise Energy Usage Agreement reduces billing disputes, clarifies payment obligations, and documents allocation methods for multi‑tenant properties. It protects both payers and providers by specifying measurement methods, data access, and remedies for overcharges or missed payments.

Why a Clear Energy Usage Agreement Matters

Who Drafts and Signs These Agreements

Energy Usage Agreements are used by landlords, property managers, utilities, energy service companies, and commercial tenants to define billing and consumption responsibilities.

  • Landlords and property managers allocating utility charges among tenants.
  • Energy service providers managing on‑site generation or microgrids.
  • Commercial tenants responsible for allocated utility costs.

Select signatories who have authority to bind each party—facility managers, property owners, authorized corporate officers, or designated utility account administrators.

Core Elements to Include in a Professional Agreement

A robust Energy Usage Agreement groups essential terms so billing and operational responsibilities are explicit and easily enforced.

Parties

Identify each legal entity by full legal name, business type, and contact details so responsibility and service of notices are unambiguous.

Metering

Specify meter locations, meter reads frequency, who owns and maintains meters, and how shared meters are prorated or submetered for allocation.

Rates

State fixed rates, time‑of‑use formulas, or pass‑through charges; include how taxes, fees, demand charges, and adjustments are calculated.

Billing

Define billing cycle, due date, late fees, dispute procedures, and documentation required to support bill challenges or corrections.

Data Access

Detail which parties may access interval data, the format, frequency, and any consent required for sharing customer energy usage data.

Term

Set the agreement start date, renewal terms, termination rights, and obligations after termination such as final billing and meter reconciliation.

Step-by-Step: Completing the Agreement

Follow this sequence to prepare, review, and execute an Energy Usage Agreement consistently.

  • 01
    Gather records: Collect prior 12 months of usage and billing data.
  • 02
    Draft terms: Define rates, allocation formulas, and meter responsibilities.
  • 03
    Review legally: Have counsel check consumer protections and local rules.
  • 04
    Sign and distribute: Execute by authorized signers and retain signed copies.

Configuring an Online Completion Workflow

Use a digital workflow to reduce manual steps and capture an audit trail for each executed agreement.

Field Configuration
Signature Type Electronic signature field | signer name and date required
Authentication Email verification with optional SMS code for higher assurance
Conditional Fields Show allocation fields only when shared meter selected
Notifications Send signed PDF to all parties and finance department

Where to Send or File Completed Agreements

Routing depends on your role; keep copies with operations, billing, and legal teams to ensure continuity and compliance.

  • Utility Provider: Deliver the signed agreement to the utility account administrator.
  • Property Owner: Retain a signed copy with property management records.
  • Billing Department: Provide final executed agreement for billing setup adjustments.
  • Legal Counsel: File a copy for contract management and dispute readiness.

Digital Signing and File Format Requirements

Ensure the chosen platform supports conditional fields, signer authentication options, and retains a time‑stamped audit trail for future disputes or regulatory reviews.

  • File formats: PDF, DOCX supported
  • Integrations: Salesforce, NetSuite, Microsoft 365
  • Security: TLS 1.2/1.3; AES‑256 at rest

Key Dates and Deadlines to Track

Track effective dates, billing cycle starts, notice periods, and record retention milestones so all parties meet operational and legal requirements.

Effective Date entered:

Sets when billing and obligations begin.

Billing Cycle start date:

First day when usage begins to accrue under this agreement.

Termination notice deadline:

How many days advance notice is required to end the agreement.

Dispute submission period:

Time window to submit billing disputes or correction requests.

Document retention trigger:

Date when retention schedules begin after agreement end.

Common Errors to Avoid

  • Using informal party names or nicknames instead of exact legal entity names which can hinder enforcement.
  • Leaving the billing formula vague (for example, 'fair share') rather than stating a measurable allocation method.
  • Failing to attach meter data or examples of calculations, which makes post‑billing reconciliation difficult and contentious.
  • Not specifying who pays taxes, fees, or demand charges, causing later disputes and collection delays.

Potential Consequences of an Incomplete or Incorrect Agreement

Unenforceable terms: Missing signatures may invalidate provisions.
Late payment liability: Accrued interest and collection costs.
Regulatory exposure: State utility rules may impose fines.
Billing disputes: Protracted disputes increase administrative costs.
Credit impacts: Unpaid balances may affect credit or service.
Operational delays: Service changes postponed until signed.

eSignature Pricing and Features Comparison

Comparison of baseline pricing and common feature availability for eSignature vendors; signNow is listed first per vendor order requirements.

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, no card Varies Varies Varies Varies
Bulk Send Yes (Business Premium) Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

FAQs and Troubleshooting

Answers to common questions encountered when preparing, signing, and storing Energy Usage Agreements electronically.


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