Both the economy and tougher access to credit are having an impact on contract negotiations. According to this article in the Houston Chronicle, electric power retailers are more concerned today about customer defaults. As a consequence, rates for business customers may include risk premiums of $5 to $10 per megawatt hour, or as much as 1 cent per kilowatt hour. Retailers are also seeking address default risk by requiring larger deposits and using more limited term agreements.
Tags: Energy, Electric Power
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Vorys, Sater, Seymour and Pease LLP provides business and legal counsel to clients throughout the United States and around the world. Since its founding in 1909, our firm has grown into one of the largest law firms in the country, with nearly 375 attorneys who are located in nine offices in Ohio, Washington, D.C., Texas, Pennsylvania, California and London.
