A toll contract is a lease agreement for a power plant to its owners. These agreements give the tenant the opportunity to convert a physical product (fuel) into another commodity (electricity). This chapter explains how to determine the economic value of a power plant. Our trainer also has extensive consulting experience in the privatization of public sector enterprises, as well as in infrastructure development through the private sector, in partnership with the public sector or through other means. It has negotiated and developed numerous contracts, including concessions, electricity contracts and construction and engineering contracts. It has also dealt with documents under various contractual agreements for infrastructure projects such as airports, ports, land transport (highway, monorail, two-lane electrified rail and mass traffic), power plants (gas, coal, combined gas, solar and hydroelectric power), petrochemical facilities and buildings in the region. According to the DOJ, agreements that are entrusted to the economic beneficiary and are executed prior to notification of the HSR and the expiry of the waiting period may be reduced to impact pistols under the HSR Act when they are concluded, while a buyer intends to acquire the destination.  These types of agreements allow the purchaser to take control of a target and obtain the effects of the combination before the regulators have completed their review of cartels and abuse of dominance. DOJ submitted, therefore, that, overall, the deadline and toll agreement had the effect of removing Calpine as an independent competitive presence in the market and allowing Duke to make all competitive decisions regarding the Osprey plant from the date of the toll agreement and well before the HSR notification. The “Electricity Distribution Contract” course will allow participants to better understand the intricacies of developing and interpreting different conditions, integrating multiple documents to avoid legal pitfalls, and would provide a writ on power purchase contracts (PPPs) and attempt to demystify some of the “legal” or “boilerplate” provisions that usually appear in contracts.
This case underlines the importance of the advice of experienced HSR advisors ahead of the acquisition of shares, shares outside the group or assets by all means. Although such toll agreements are becoming more common in the energy sector, parties who have or may have an interest in acquiring the other party to the agreement must ensure that effective beneficiaries of the objective are not covered before complying with the reporting obligations of the Trade Control Act where notification of the HSR is required. Otherwise, the toll agreement can be interpreted as proof of fire and the acquiring person is subject to significant penalties for non-compliance of up to USD 40,654 per day. Although such toll agreements, including provisions that give buyers control over production, are increasingly common in purchasing Energy inbuver Osprey and have had no justification regardless of the transaction.  Indeed, the toll agreement was to expedite FERC`s authorization for the transaction by allowing Duke to prove that it “already controls” Osprey, so that “no new damage could be caused by the direct acquisition of Duke Osprey.”  Owning (or leasing) a power plant gives a dealer the opportunity to convert fuel into electricity.