Standard Offer Clause Samples
A Standard Offer clause defines the basic terms and conditions under which one party proposes to enter into an agreement with another. Typically, it outlines the essential elements such as price, quantity, and delivery terms, and is presented as a non-negotiable set of terms to the offeree. This clause streamlines the contracting process by providing a uniform set of terms, reducing negotiation time and ensuring consistency across multiple transactions.
Standard Offer. Prior to the Closing, the Buyer shall, upon consultation with NEP, have the right to submit a Standard Offer Bid on behalf of NEP; provided, however, that the Buyer shall not submit a Standard Offer Bid on NEP's behalf for Standard Offer Service to an Affiliate of the Sellers without the consent of NEP, which consent shall not unreasonably be withheld. The Buyer shall not submit a Standard Offer Bid on NEP's behalf for Standard Offer Service to any Person who is not an Affiliate of NEP without the consent of NEP. A successful Standard Offer Bid submitted on behalf of the Seller shall not relieve the Buyer of its obligations under each Transition Agreement to provide "Wholesale Standard Offer Service" (as defined in each such Transition Agreement). NEP shall not submit a Standard Offer Bid without the consent of the Buyer.
Standard Offer. Consistent with the Attorney General's principles Mass. Electric shall arrange to provide standard offer service through a transition period ending on December 31, 2004, by putting it out to bid. Standard offer service shall be available to all of Mass. Electric's retail customers on the Retail Access Date. After the Retail Access Date customers are free to leave the standard offer at any time to purchase from an alternative supplier in the market, but, once the market option is selected, a customer may not return to service at standard offer prices, provided, however, that standard offer service shall be available to all residential or G-1 customers who have previously taken service from an alternative supplier for the first year after the Retail Access Date, if such residential or G-1 customer elects to return to standard offer service within 90 days of first taking service from the alternative supplier. The terms and conditions for the bids by potential suppliers for standard offer service are set forth in Attachment 8. Mass. Electric's standard offer prices are guaranteed, subject to the fuel price index described in Attachment 8. Under the tariffs included in Attachment 2, Mass. Electric's charges for standard offer service are included as a separate surcharge to the rates for retail delivery service that apply to all retail access customers. Mass. Electric shall reconcile the revenues billed to retail customers taking standard offer service against payments to suppliers of standard offer service and recover or refund any under or overcollections on the following terms:
(a) Any revenues billed by Mass. Electric for standard offer service in excess of payments to suppliers of that service shall be accumulated in an account and credited with interest calculated using the methodology for calculating interest on customer deposits specified in Mass. Electric's terms and conditions. The accumulated balance at the end of each calendar year shall be credited to all of Mass. Electric's retail delivery customers through a uniform cents per kilowatthour factor in the following year.
(b) In the event that the revenues billed by Mass. Electric do not recover Mass. Electric's payments to suppliers or Mass. Electric defers expenses to meet the inflation cap established in Section I.B.9, Mass. Electric shall be authorized to accumulate the deficiencies in the account together with interest calculated as above and recover those amounts by implementing a uniform cents ...
Standard Offer. 2 Power Purchase Agreement by and between Southern California Edison Company and Borrower, as amended. (QFID 2206).
Standard Offer. A standard offer (the “Standard Offer”) is defined by S.C. Code ▇▇▇. § 58-41-10(15) to mean “the avoided cost rates, power purchase agreement,11 and terms and conditions approved by the commission and applicable to purchases of energy and capacity by electrical utilities … from small power producers up to two megawatts AC in size.” Stated differently, a Standard Offer is a PPA that contains an avoided cost rate paid to eligible QFs that are 2 MW in size or smaller. Additionally, the Standard Offer contract sets the terms and conditions and allows any qualifying small power producer, as defined by S.C. Code ▇▇▇. § 58-41-10(14), to contract with the utility to supply electricity at established rates without the need to negotiate individual contracts. The Standard Offer therefore establishes set prices, terms, and conditions, and is not negotiated by DESC or the eligible QF. It is intended to address the concern that the costs of negotiating and administering individually-negotiated contracts could render smaller projects non-viable. In this manner, Act No. 62 expands the requirements of PURPA, which only requires that utilities have in place standard rates for QFs up to 100 kW-AC, by increasing the upper limit on the required offer of standardized rates, terms, and conditions contained in PURPA from 100 kW-AC to 2 MW-AC in size. An increase in the availability of Standard Offer contracts accentuates the importance of ensuring that their pricing, terms, and conditions do not prejudice the interests of the QF, the customers, nor the utility.