Energy
Dictionary

 


special contract

Generic term for any contract or agreement whose terms differ from the terms normally offered with such a contract. In the energy industry, special contracts may be offered key high-volume customers to help a utility reach a certain requirement level that allows them to purchase wholesale energy at a lower cost. Special contracts of a different type may be used with customers who frequently require expensive reserve energy to give these customers conservation incentives or insure that they pay accordingly for the type and volume of energy they consume.

Special contracts are not new to the deregulated marketplace. In any type of market, there will be customers who would pay unfair rates or getting undeserved deals without the availability of a special contract.

See also:

wholesale power market