AB32 Products Annex
The EEI AB32 Products Annex to the EEI Master
Power Purchase and Sale Agreement is designed to enable trading between EEI
counterparties in compliance products issued or approved by the California Air
Resources Board pursuant to the cap and trade regulations under California’s
2006 Global Warming Solutions Act.
The EEI Renewable Energy Certificates (RECs) Annex to the EEI Master Power
Purchase and Sale Agreement is designed to enable RECs trading between EEI
counterparties. This annex has been in development for several years, as the
subcommittee studied and responded to market developments and the needs of EEI
Master Agreement party RECs market participants. It has been streamlined to
remove certain features that market developments have not required, while
adding and enhancing other features in order to maximize utility for potential
The Collateral Annex sets forth detailed procedures under which each party
will provide security under Article 8 of the Master Contract. Specifically, the
Collateral Annex describes the conditions under which a party will be required
to Transfer Performance Assurance in the form of Cash, a Letter of Credit or
other property, as well as the conditions under which a party administers and
releases Performance Assurance. When the Collateral Annex is used, it supercedes
and replaces Sections 8.1(c), 8.2(c) and 8.3 of the Master Contract. The
Collateral Annex has its own Cover Sheet to make various elections, including
the Collateral Threshold, Independent Amount, Minimum Transfer Amount, and
Rounding Amount that apply to the counterparties to the Master Contract.
Significant revisions made to the EEI Gas Annex in Version 2.0 include:
- Additional elections in the Cover Sheet, corresponding to new definitions and provisions incorporated into the body of the Gas Annex:
- Alternative Spot Price Index
- Applicability to Outstanding Gas transactions
- Outstanding Gas Credit Support
- Timing of Payments
- Governmental Charges (Taxes)
- U.S. Customs
- Expansion of the Timing of Payments provisions within the Gas Annex to permit payment netting across Gas and Power transactions
- Removal of references to the NAESB Base Contract throughout the EEI Gas Annex
- An entirely new section of definitions, added directly to the Gas Annex (the existing Gas Annex simply directs users to refer to the NAESB definitions)
- In addition, the final document incorporates a Mobile-Sierra provision applicable to Gas Transactions
Note: The Gas Annex Cover Sheet was revised with two minor corrections on July 30, 2014. The Gas Annex Version 2.0 (Word) file above includes these changes. To see the corrections, please access the Cover Sheet Corrections Redline (PDF) file. Thank you.
This provision provides a standard platform for market participants to
purchase and sell coal on the wholesale market, joining already-existing
provisions for trading electricity and natural gas.
The documents and descriptions on this page are provided for informational purposes only and do not constitute legal advice. Consult with legal counsel before using the information and documents provided on this page.