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What is Interruptible Power? A Comprehensive Legal Overview
Definition & Meaning
Interruptible power refers to electric energy or capacity provided by an electric utility that can be interrupted under specific conditions. This type of power supply is often used in situations where demand for electricity fluctuates, allowing utilities to manage load and maintain system reliability. Users of interruptible power may receive lower rates in exchange for agreeing to reduce or stop their electricity usage when requested by the utility.
Table of content
Legal Use & context
Interruptible power is commonly referenced in energy regulation and utility contracts. It is particularly relevant in the context of energy supply agreements and demand response programs. Legal professionals may encounter this term when dealing with contracts for electricity supply or when advising clients on energy management strategies. Users can often find templates for energy contracts and agreements on platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A manufacturing facility agrees to use interruptible power, allowing the utility to temporarily shut off their electricity during peak demand periods. In return, the facility receives a discounted rate on their electricity bill.
Example 2: A large commercial building participates in a demand response program where they reduce energy consumption on short notice during high demand events to help stabilize the grid (hypothetical example).
State-by-state differences
State
Key Differences
California
Strong emphasis on demand response programs and incentives for interruptible power.
Texas
Market-driven approach with various interruptible service options available.
New York
Regulatory framework supports interruptible power as part of energy efficiency initiatives.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Firm Power
Reliable power supply that cannot be interrupted.
Firm power guarantees delivery, while interruptible power can be curtailed.
Demand Response
Program encouraging users to reduce consumption during peak periods.
Demand response may not involve interruptions, while interruptible power does.
Common misunderstandings
What to do if this term applies to you
If you are considering an interruptible power agreement, review the terms carefully to understand your obligations and potential savings. It may be beneficial to consult with an energy advisor or legal professional to ensure you fully understand the implications. Additionally, explore US Legal Forms for templates that can help you draft or review contracts related to interruptible power.
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