Buyer Beware: Is REC Ownership Addressed in Your Power Purchase Agreement?
8/2/2010

Summary:

Stoel Rives attorney Bill Holmes discussed in Finance and Commerce efforts by Xcel Energy, Inc. to claim ownership of renewable energy credits ("RECs") in certain power purchase agreements ("PPAs") lacking an REC ownership clause. Approximately 467 MW of output are at stake. As the owner of coal-fired power plants, Xcel Energy may have to use RECs if climate legislation (such as cap-and-trade) is adopted.

Holmes said the best option is to address REC ownership directly in the PPA. "The wisdom is that you deal with this in your contracts. It was well understood, so it is not an unreasonable assumption that you were buying nothing but electricity."

"RECs are hot commodity before cap-and-trade" was published by Finance and Commerce, July 27, 2010.