Hot Topics:Hot Topics:Creative Power ContractingCreative Power Contracting

Jody Lamar FinkleaJody Lamar Finklea Assistant General Assistant General

Counsel and Counsel and Manager of Legal Manager of Legal AffairsAffairs

Florida Power Florida Power Municipal AgencyMunicipal Agency

Orlando, FL.Orlando, FL.

Robert L. DaileaderRobert L. Daileader PartnerPartner Nixon Peabody LLPNixon Peabody LLP Washington, D.C.Washington, D.C.

New Approaches to Power New Approaches to Power ContractingContracting

The Debate as to Ownership of The Debate as to Ownership of Generation vs. Purchased PowerGeneration vs. Purchased Power

The Changing View of Generating The Changing View of Generating Capacity in an Increasingly Capacity in an Increasingly Competitive MarketCompetitive Market

The Convergence of Physical and The Convergence of Physical and Financial ProductsFinancial Products

The Lease PPAThe Lease PPA

Essential Features of a Lease PPAEssential Features of a Lease PPA Key Risk Allocation FeaturesKey Risk Allocation Features Why a Lease PPA Rather Than a Unit Why a Lease PPA Rather Than a Unit

Specific Power Purchase Agreement?Specific Power Purchase Agreement? Advantages of the Lease PPA from Advantages of the Lease PPA from

the Purchaser’s Perspectivethe Purchaser’s Perspective

Call Option AgreementsCall Option Agreements

Essential Feature of Agreements – Seller Essential Feature of Agreements – Seller Has Obligation to Provide Firm Energy Has Obligation to Provide Firm Energy from Any Resource or Pay Liquidated from Any Resource or Pay Liquidated DamagesDamages

Agreement Provides a Financial Hedge to Agreement Provides a Financial Hedge to Mitigate Purchaser’s Price RiskMitigate Purchaser’s Price Risk

Seller Retains Maximum Flexibility to Seller Retains Maximum Flexibility to Manage Its Supply Portfolio – Capacity Is Manage Its Supply Portfolio – Capacity Is Not Committed to a Specific PurchaserNot Committed to a Specific Purchaser