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POWER GENERATION CONTRACTING

Pacifico's Primary Product is Power and Electricity

At Pacifico Energy, we invest in power generation assets and partner with businesses that require reliable electricity. Our expertise is in creating mutually beneficial relationships, delivering power directly to end users at a cost that improves their bottom line.

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Let our capital power up your operations.

Energy Services and Power Purchase Agreements

Many customers believe their local utility is their only choice for electricity. There are smarter ways to energize your operations without massive capital investments. We specialize in investing in power generation and offer long-term supply contracts that deliver all the advantages of onsite power.

 

The key terms shaping contract risk and pricing are highlighted below:

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Term
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Price
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Liability
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Production Guarantees
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Escalators
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Termination Values
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Buy-Out Options
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Insurance
About Power Generation Contracting

  • Power generation contracting involves long-term agreements where Pacifico Energy invests in and operates onsite power generation assets, delivering electricity directly to your facility. This includes Energy Services Agreements (ESAs) and Power Purchase Agreements (PPAs). This approach reduces reliance on utilities, provides cost stability, and eliminates the need for large upfront capital investments.

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    Pacifico assumes most operational risks, including system maintenance and performance. However, customers may have limited liability related to site access, infrastructure modifications, or damages due to negligence. These details are outlined in the liability section of the contract.

  • Our contracts are tailored to each customer’s energy needs and typically include key terms such as contract term length, pricing structure, liability provisions, production guarantees, annual escalators, termination values, buy-out options, equipment warranties and insurance requirements.

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    Contract terms vary depending on the project scope and customer preferences. Typical terms range from 20 to 30 years, ensuring long-term price stability and operational reliability. You are also entitled to options to extend your contract at the end of the contract term.

  • Pacifico's Asset Management team will actively monitor and maintain the power generation assets to ensure optimal performance for the entire project lifetime. Our contracts include production guarantees, scheduled maintenance, and rapid response to system issues, ensuring continuous and reliable energy delivery.

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    We include production guarantees and availability guarantees in our contracts where applicable, ensuring that the system generates a minimum level of power and performance. If production falls below agreed-upon thresholds, Pacifico may be required to compensate for shortfalls or make necessary improvements to meet performance standards.

  • Our contracts typically require insurance provisions to cover risks such as property damage, business interruption, and equipment failure. Pacifico maintains comprehensive insurance for the power generation assets, while customers may need to carry general liability coverage.

Understanding Contract Terms

  • Pricing is influenced by factors such as technology type, project costs, financing structure, and operational risks. We offer competitive pricing structures that can include fixed-rate contracts, indexed pricing, or hybrid models that align with your energy cost objectives.

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    Yes, some contracts include annual escalators, which account for inflation, operational costs, and market conditions. These escalators are typically structured to provide long-term cost predictability while maintaining competitive rates compared to utility pricing. In most cases, the annual escalator is a significant hedge against varying and volatile rate increases against increasing utility rates, providing you the control and ability to predict your ongoing expenses, whereas utilities can increase your rates at their discretion.

  • Early termination is possible but typically involves termination values outlined in the contract. These values account for the remaining project investment, equipment costs, and financing obligations. We also offer buy-out options that allow customers to take ownership of the power generation assets under specified conditions.

     

    Buy-out options enable customers to purchase the power generation system at predetermined milestones in the contract. The pricing is usually based on a depreciation schedule, remaining contract term, and system performance.

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    At the end of the contract, customers typically have three options:

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    • Renew the agreement under updated terms

    • Exercise a buy-out option and take ownership of the system

    • Decommission the system if continued operation is not needed

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