The Evergreen Clause Calendar: How to Diary a 60-Day Notice Window So You Don't Auto-Renew at a Bad Price

What evergreen clauses do

Commercial electricity supply contracts commonly end with language like: unless either party provides written notice no later than 60 days prior to expiration, this agreement renews for an additional 12 months at market rates [ccb-evergreen]. That is an evergreen clause.

It protects the supplier from accidental service gaps. It punishes busy customers who forget dates. Cannabis operators managing harvests, inspections, and license renewals forget energy notice windows more often than office tenants.

Missing notice does not continue month-to-month at old price. It triggers a new term, sometimes at higher index-linked renewal pricing [pricetocompare-short-long].

Build a 120-60-30 calendar

Work backward from contract expiration (example: December 31, 2026 end, 60-day notice required):

Date	Action
September 1 (120 days)	Pull interval data; benchmark vs utility default
October 1 (90 days)	Request competitive RFP quotes
November 1 (60 days)	Notice deadline to cancel auto-renew or accept renewal terms
December 15	Confirm switch or renewal in writing
January bill	Verify new rate

Set calendar reminders for business days if contract specifies business-day notice [ccb-evergreen].

Notice mechanics that trip people up

Certified mail vs email: Older contracts require USPS certified mail to supplier legal address. Newer ones accept email to designated inbox. Match method to contract.

Multiple meters: A portfolio with six meters may have staggered end dates if signed in tranches. Track each SAID.

Auto-renew term length: Renewal may be 12 months when original was 36, changing your risk profile [pricetocompare-short-long].

Price on renewal: Some contracts renew at last month's index plus margin. After PJM capacity spikes, renewal index can exceed fixed rate you had [constellation-unexpected].

Early termination vs non-renewal: Not renewing on time is different from terminating mid-term. Mid-term exit triggers ETF formulas [diversegy-evergreen] [commercial-advisors-etf]. See contract terms guide.

Cannabis-specific timing conflicts

Harvest calendars collide with notice windows:

• Q4 harvest peaks overlap November notice deadlines for December 31 contracts
• License conversion buildouts delay move-in dates, leaving signed contracts running at old premises
• Room shutdowns after regulatory changes (e.g., footprint caps) change usage but not contract end date

Assign one non-cultivation staff member (CFO, ops manager) as contract owner with calendar access.

If you missed the window

1. Read renewal rate on supplier letter or next bill
2. Calculate ETF to terminate versus riding renewal [commercial-advisors-etf]
3. Ask supplier for waiver (document in email)
4. If usage changed materially, cite change-in-law or usage clauses [constellation-unexpected]
5. Never go silent; silence equals acceptance on many forms

Worked example: 24-month fixed expiring into high market

Assume 18 cents/kWh fixed expires, auto-renew at index averaging 21 cents/kWh for next 12 months, 2.5 million kWh/year:

• Incremental cost ≈ 2,500,000 × ($0.21 − $0.18) ≈ $75,000/year

60-day notice to terminate and re-bid at 17.5 cents/kWh saves far more than ETF on some contracts.

Run scenarios in supplier contract comparison worksheet.

Integration with seasonal calendars

Evergreen deadlines should sit beside:

• June 1 PJM reset
• ComEd summer PTC
• Maine January standard offer

Contract end date may not align with market resets. Notice window is fixed; market is not. Start RFP at 120 days to align new start date with June 1 or January 1 when advantageous.

Template fields for your CRM

• Contract end date
• Notice days required
• Notice method and address
• Auto-renew term length
• Renewal pricing formula
• ETF schedule
• Assigned owner
• Last benchmark date

Where evergreen language hides in the contract

Evergreen clauses usually appear in Section 4 (Term) or Exhibit B (Renewal) near the signature block [ccb-evergreen]. Search PDF for: "automatically renew," "unless written notice," "successor term," and "renewal period."

Some suppliers attach renewal pricing in a separate sheet referenced only by URL. Download that sheet when you sign the original term.

Relationship to early termination fees

Non-renewal notice is not the same as mid-term termination [diversegy-evergreen] [commercial-advisors-etf]. If you want to leave at expiration, send notice. If you must leave mid-term, ETF math applies [constellation-unexpected].

Cultivators closing a room mid-contract may trigger both ETF and material usage clauses. Sequence matters: negotiate usage change first or provide notice of non-renewal if near end.

Bandwidth clauses on renewal

Renewal terms sometimes shrink bandwidth tolerance [pricetocompare-short-long]. A contract that allowed 15 percent usage variance on the original term may renew at 5 percent. Read renewal exhibits as carefully as original exhibits.

Assignability when selling a licensed facility

M&A activity in cannabis means meters change hands. Some contracts allow assignment with supplier consent; some treat sale as termination [commercial-advisors-etf]. Evergreen renewal can lock a buyer into seller's rate if notice missed before closing.

Put energy contract review on acquisition checklist 120 days before close.

Tools that help MSOs track notice

• Shared calendar with account number in title
• Contract PDF in document store with notice fields in filename
• Tickler at 120, 90, and 60 days before end
• Supplier contract comparison worksheet saved per renewal cycle

Sample notice language (confirm with your contract)

"Per Section [X] of Supply Agreement dated [DATE] between [SUPPLIER] and [CUSTOMER] for Account [NUMBER], [CUSTOMER] provides written notice of non-renewal at expiration on [DATE]. Signed [NAME], [TITLE]."

Send via method contract requires [ccb-evergreen].

Cannabis harvest collision examples

Contract end	Notice due (60-day)	Conflict
Dec 31	Nov 1	Q4 harvest
June 30	May 1	Spring transplant
Sept 30	Aug 1	Outdoor harvest

Assign backup notice signer in org chart.

Software calendar invites that work

Create recurring annual events titled "Energy contract notice due" at 120 and 60 days before expiration, with account numbers in the description and link to PDF in document storage [ccb-evergreen]. Invite CFO and operations lead as required attendees.

Legal review threshold

Have counsel review renewal exhibits if renewed rate exceeds original by more than 15 percent or if renewal term length changes [ccb-evergreen]. Cultivation MSOs with centralized legal can batch review all meter renewals in one sitting each fall.

Evergreen clauses are not hidden fees. They are deadlines. Diary the 60-day window or pay retail for another year.

Portfolio tracking for MSOs with staggered meter end dates

Multi-site operators often sign supply contracts in tranches as new rooms energize. Each service agreement may carry its own expiration and notice period [ccb-evergreen]. A portfolio with six meters might show end dates of March 31, June 30, September 30, and December 31 in the same calendar year. One shared calendar reminder is not enough.

Field	Example	Why track it
SAID / account number	1234567890	Utility switch reference
Contract end	2026-12-31	Anchor date
Notice days	60 [ccb-evergreen]	Deadline 2026-11-01
Notice method	Certified mail	Missing method voids notice
Auto-renew term	12 months [pricetocompare-short-long]	May differ from original
Renewal pricing	Index + margin [constellation-unexpected]	Often higher than expiring fixed

Assume 2.5 million kWh/year across three cultivation meters, expiring fixed at 18 cents/kWh, auto-renew at index averaging 21 cents/kWh [pricetocompare-short-long]:

• Incremental cost ≈ 2,500,000 × ($0.21 − $0.18) ≈ $75,000/year

Early termination fees may apply if you reject renewal after missing notice [diversegy-evergreen] [commercial-advisors-etf]. Compare ETF to riding renewal using supplier contract comparison worksheet. Assign one non-cultivation owner (CFO or ops) as contract calendar keeper so Q4 harvest does not swallow November notice deadlines [ccb-evergreen].

Evergreen deadlines should sit beside seasonal procurement calendars: June 1 PJM reset, ComEd summer PTC, Maine January standard offer. Contract end date may not align with market resets. Start RFP at 120 days out to align new start date with advantageous default benchmarks when possible [pricetocompare-short-long].

M&A activity means meters change hands. Some contracts allow assignment with supplier consent; some treat sale as termination [commercial-advisors-etf]. Put energy contract review on acquisition checklist 120 days before close. Renewal terms sometimes shrink bandwidth tolerance from 15 percent to 5 percent [pricetocompare-short-long]. Read renewal exhibits as carefully as original exhibits [constellation-unexpected].

Create recurring calendar invites titled "Energy contract notice due" at 120 and 60 days before expiration with account numbers in the description [ccb-evergreen]. Invite CFO and operations lead as required attendees. Have counsel review renewal exhibits if renewed rate exceeds original by more than 15 percent or if renewal term length changes [ccb-evergreen]. For multi-meter portfolios, one missed notice on a high-load cultivation meter can cost more than all other meters combined [ccb-evergreen].

Add contract PDFs to your Q4 compliance binder next to pesticide and track-and-trace renewals so energy notice dates survive staff turnover [ccb-evergreen]. If your supplier portal shows auto-renewal enabled, disable it after sending written non-renewal so two systems do not conflict [diversegy-evergreen]. Silence on many renewal forms equals acceptance [constellation-unexpected].