Step 5. Execute a Power Purchase Agreement. Sign a document that outlines the terms, conditions and pricing under which Progress Energy agrees to buy the output of the renewable generator.

Once the prerequisites from the previous steps are satisfied, a contract will be prepared that establishes the terms, conditions and rates that Progress Energy will pay for the electricity received from the new renewable system. The contract, generally called a Power Purchase Agreement (PPA), has three parts:

1. Application for Standard Contract by a Qualifying Cogenerator or Small Power Producer which will be completed by Progress Energy to be signed by the customer.
2. SC Terms and Conditions for the Purchase of Power that accompanies the application.
3. Cogenerator and Small Power Producer Schedule, or Avoided Cost Tariff, which describes the amount that Progress Energy will pay for energy produced.

A Progress Energy representative will be available to assist customers with interpretation of the available rate choices and other information necessary to complete the PPA, which will be mailed for customer signature. Progress Energy will execute the signed agreement and payments to the customer will commence once the final electrical inspection has been made and a meter is set (see Step 6). Below are documents comprising a PPA:

• Sample Application for Standard Contract
  
• SC Terms and Conditions Purchase of Power
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• Cogeneration and Small Power Producer Schedule (Avoided Cost Tariff)