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Is Electricity a 'Good' Under Article 9?

By Barbara M. Goodstein
November 02, 2017

The electricity sector is beginning an unprecedented move away from networks dominated by large-scale utilities. Peer-to-peer power sharing arrangements and technologies such as rooftop solar are redefining traditional relationships between power companies and consumers. Soon, residents and businesses will be able to produce their own electricity through microgrids, bypassing electric utilities, and sell excess electricity credits through a virtual trading platform.

Consumers who generate electricity in excess of their demand can benefit from net metering, a system that compensates the consumer with a credit for each kilowatt-hour injected into a grid and can identify electricity fed back into the grid. Electricity sales could generate valuable revenue streams for these producers, and lenders financing these projects will want to consider both the related receivables and the electricity produced by such projects as collateral.

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