Power Purchase Tolling Agreements

Power Purchase Tolling Agreements are contracts to purchase power wherein the utility pays the seller a periodic payment for capacity for the length of the contract. The utility is responsible for the procurement and delivery of the fuel (e.g., natural gas) to the seller’s power plant generating units, and the scheduling of the generating units under contract. Hence, utility customers take all the upside and downside risks of fuel price volatility.

 


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SDG&E Power Purchase Tolling Agreements