A direct service industrial customer is defined as an industrial entity that enters into a contract to purchase electricity directly from the Administrator for immediate use. This arrangement allows such customers to obtain power without intermediaries, enabling them to manage their energy needs more efficiently.
This term is primarily used in the context of energy law and utility regulation. Direct service industrial customers often engage in contracts that specify the terms of power purchase, which may involve negotiations on pricing, delivery, and usage. Understanding this term is important for businesses in sectors such as manufacturing, mining, and other heavy industries that rely heavily on electricity for operations. Users can manage these contracts using legal templates available through platforms like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A steel manufacturing plant enters into a contract with the Administrator to purchase electricity directly for its operations. This allows the plant to secure a stable energy supply at a negotiated rate.
Example 2: A large data center contracts directly with the Administrator to ensure it has sufficient power for its servers and cooling systems. (hypothetical example)
Pursuant to 16 USCS § 839a (8), the definition of a direct service industrial customer is established. This statute outlines the framework for energy contracts in the Pacific Northwest, particularly emphasizing the role of the Administrator in facilitating direct sales to industrial customers.
| Term | Definition | Key Differences |
|---|---|---|
| Industrial Customer | A business that uses large amounts of electricity for production. | Does not necessarily purchase power directly from the Administrator. |
| Residential Customer | A household that consumes electricity for personal use. | Typically purchases power through a utility rather than directly from the Administrator. |
If you believe your business qualifies as a direct service industrial customer, consider the following steps:
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| Attribute | Details |
|---|---|
| Typical Fees | Varies based on contract terms and energy usage. |
| Jurisdiction | Pacific Northwest, primarily under federal energy regulations. |
| Possible Penalties | Failure to comply with contract terms may result in financial penalties. |
An entity that has a direct contract with the Administrator for electricity consumption qualifies.