                                 CODE OF VIRGINIA

PURCHASE OF ELECTRIC POWER AND ENERGY (§ 23.1-2607)

A. For purposes of this section:
			&#8220;Other party&#8221; means any other entity, including any (i)
municipality, public institution of higher education, or political subdivision,
public authority, agency, or instrumentality of the Commonwealth, another state,
or the United States or (ii) partnership, limited liability company, nonprofit
corporation, electric cooperative, or investor-owned utility, whether created,
incorporated, or otherwise organized and existing under the laws of the
Commonwealth, another state, or the United States.
			&#8220;Project&#8221; means any (i) system or facilities for the generation,
transmission, transformation, or supply of electrical power and energy by any
means whatsoever, including fuel, fuel transportation, and fuel supply
resources; (ii) electric generating unit situated at a particular site in the
continental United States; (iii) interest in such system, facilities, or unit,
whether an undivided interest as a tenant in common or otherwise; or (iv) right
to the output, capacity, or services of such system, facilities, or unit.

B. The University may contract with any other party to buy power and energy to
meet its present or future requirements. Any such contract may provide that (i)
the source of such power and energy is limited to a specified project; (ii)
replacement power and energy shall be provided; or (iii) the University shall be
obligated to make payments required by the contract whether the project is
completed, operable, or operating and notwithstanding the suspension,
interruption, interference, reduction, or curtailment of the output of a project
or the amount of power and energy contracted for; (iv) payments required by the
contract (a) are not subject to any reduction, whether by offset or otherwise,
(b) are not conditioned upon the performance or nonperformance of any other
party, (c) shall be made solely from the revenues derived by the University from
the ownership and operation of the electric system of the University, (d) may be
secured by a pledge of and lien upon the electric system of the University, and
(e) shall constitute an operating expense of the electric system of the
University; (v) in the event of default by the University or any other party to
the contract in the performance of its obligations for any project, the
University or any other party to the contract for such project shall succeed to
the rights and interests and assume the obligations of the defaulting party,
either pro rata or as may be otherwise agreed upon in the contract; or (vi) no
other party shall be obligated to provide power and energy in the event that (a)
the project is inoperable, (b) the output of the project is subject to
suspension, interference, reduction, or curtailment, or (c) a force majeure
occurs.

C. Notwithstanding any other charter or provision of law to the contrary, no
such contract, with respect to the sale or purchase of capacity, output, power,
or energy from a project, shall exceed 50 years from the date that the project
is estimated to be placed in normal continuous operation.

D. The execution and effectiveness of any such contract are not subject to any
authorizations and approvals by the Commonwealth or any agency, commission,
instrumentality, or political subdivision of the Commonwealth except as
specifically required by law.

E. No obligation under any such contract shall constitute a legal or equitable
pledge, charge, lien, or encumbrance upon any property of the University or upon
any of its income, receipts, or revenues, except the revenues of its electric
system, and the faith and credit of the University shall not be pledged for the
payment of any obligation under any such contract.

F. The University shall fix, charge, and collect rents, rates, fees, and charges
for electric power and energy and other services, facilities, and commodities
sold, furnished, or supplied through its electric system sufficient to provide
revenues adequate to meet its obligations under any such contract and to pay any
and all other amounts payable from or constituting a charge and lien upon such
revenues, including amounts sufficient to pay the principal of and interest on
bonds of the University issued for purposes relating to its electric system. Any
pledge made by the University pursuant to this subsection is governed by the
laws of the Commonwealth.

HISTORY: 2007, cc. 612, 670, § 23-155.05; 2016, c. 588; 2017, c. 314.