Combined Heat & Power Projects: Negotiating Power Purchase and Procurement Agreements

This program, taught by Peter Funk, energy law attorney with Funk & Zeifer LLP, will provide an overview of power purchase (PPA) and equipment purchase (or lease) approaches to CHP (combined heat and power) projects. This will include a discussion of the primary benefits and risks of each approach and how to anticipate potential regulatory or utility issues.

Topics that will be covered include the critical provisions for PPA’s for both buyers and sellers, and the allocation of benefits and risks. Practical considerations for procurement agreements (whether purchase or lease), maintenance requirements, remote monitoring, and utility regulation issues will all be discussed.

Additionally, the program will provide a broad base of knowledge about utility interconnection, including system equipment considerations, the regulatory differences depending on the nature of the purchaser in a PPA, and the jurisdiction of state regulators. Finally, the course will cover the different kinds of monetary incentives involved in these agreements, including the advantages and disadvantages of such incentives, and the structure of incentive agreements.

Learning Objectives: 

1. Identify the issues involved in CHP projects and how to best handle them in practice

2. Knowledgeably represent parties involved in CHP projects

3. Assess practical considerations in Power Purchase Agreements and Incentive Agreements