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Tolling Agreement Gas Plant

Regulatory risks remain, he said, especially in California, where price caps have been put in place, affecting distributor factories. Although such toll agreements, including provisions that give buyers control over generation, are increasingly common in Osprey`s power purchase activities and do not have an independent justification for the transaction. [3] In fact, the toll agreement is expected to expedite FERC`s approval for the transaction by allowing Duke to prove that it « already controlled » Osprey, so that « if Duke is allowed to directly acquire Osprey, no further damage could arise. » [4] ORLANDO-As gas prices rise and electricity prices rise, more and more companies are turning to toll agreements to finance and share the risk of building new commercial power plants, Dealmaker says. As part of the extension of the toll agreement, Decatur immediately receives payments for an additional capacity of 34 MW. The facility will also receive capacity payments when an updated interconnection agreement of an additional 79 MW is concluded in 2021. According to the DOJ, agreements that transfer economic ownership and are executed before the notification of the RSH and the expiration of the waiting period can, under the HSR Act, be assimilated to a jump of arms if they are concluded while a buyer intends to acquire the destination. [5] This type of agreement allows a buyer to take control of an objective and obtain effects of the concentration before the regulatory authorities have completed their anti-dominant examination. The DOJ therefore argued that the term sheet and the combined toll agreement had removed Calpine as an independent competitive presence in the market and that Duke could make all competitive decisions for the Osprey facility from the date of entry into force of the toll agreement and well before RSH`s application was filed. Owning (or leasing) a power plant allows a concessionaire to turn fuel into electricity. If electricity prices are high enough, a power plant can burn fuel to produce electricity profitably.

Otherwise, the concessionaire usually leaves the plant inactive. This is very similar to the behavior of financial option contracts. That`s the way it is. Contractual clause of a sales contract (SPA) according to which a minimum quantity of natural gas must be paid, whether or not the delivery is accepted by the buyer. Capital Power Corp. has extended the toll deal for the Decatur Energy Center by 10 years, until December 2032, the company said Aug. 4. A period of lively activity in a receiving facility or terminal where processing units or parts thereof are shut down either for scheduled maintenance work or for the installation of new equipment and systems. An agreement in which a party owns (and bears the risks) the inputs and results of a process as well as the rights to a portion of the process capacity (which is subject to the fee). Another party undertakes to operate the process or facility and collects a toll per converted entry unit or per unit of capacity to which rights are granted (the large one).

As part of an LNG liquefaction agreement, a company sends a lot of table gas to a liquefaction plant, with the gas being liquefied at a predetermined toll. Since the acquisition of the Decatur facility, Capital Power Upgrades has completed upgrades to its combustion turbines and improved the facility`s heat rate and energy efficiency. . . .



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