IECA and the North American Energy Markets Association (“NAEMA”) have created the state-of-the-art 2019 Power and Gas Master Agreement (PGMA).
The PGMA is the first-ever industry master agreement to cover both power and gas without supplemental product annexes. This simplification alone can save companies substantial amounts of money and time by streamlining contract negotiations and reducing required credit support.
The PGMA includes terms for power and gas transactions conducted in the United States and Canada. In addition, the Agreement has been translated into Spanish with specific additions as “optional” clauses to refer to Mexican principles and law added by the IECA’s Mexico Energy Working Group – making it fully functional for all of North America.
The PGMA contains many innovative provisions which better reflect current market practices. NAEMA and IECA encourage companies to evaluate these terms with their contract professionals and counsel to determine if the 2019 Power and Gas Master Agreement can be a beneficial platform for new transactions.
To develop this new Agreement, NAEMA and IECA formed a joint drafting team comprised of members from across the industry. IECA’s Bankruptcy & Creditor’s Rights, Dodd-Frank, Credit Analytics Education, and Mexico Energy Working Groups worked on provisions related to their subject-matter areas. To help standardize the market’s commonly used provisions, the drafting team reviewed the pro forma contract terms of numerous companies across the industry. IECA’s participation on the drafting team was led by the following Drafting Committee members.
- K.C. Hairston, Esq. (Chair)
- Geoffrey F. Heffernan, Esq. (Co-Chair)
- Phillip G. Lookadoo, Esq.
- Nicole W. Russell, Esq.
- Jeremy D. Weinstein, Esq.
- Chris York, Esq.
- Eduardo Corzo, Esq.
If you're a member click below to view both the Spanish and English versions of the 2019 Power Gas Master Agreement.