In plain English
FAR 52.241-1, Electric Service Territory Compliance Representation, is a contract clause prescribed at FAR 41.501(b), most recently dated May 1999. The complete official text is reproduced below, verbatim, from GSA's published FAR source files.
Its text contains no sentence requiring insertion into subcontracts; see the flowdown section below for what that does and does not mean.
Does it flow down to subcontracts?
No flowdown mandate found in the clause text
We scanned the full clause text and found no sentence directing the contractor to insert this clause into subcontracts. That is a statement about the text, not legal advice: a prime contractor may still flow terms down contractually, an agency supplement (DFARS, VAAR, …) may add requirements, and clauses listed below (if any) may order this clause into subcontracts from the outside.
Where it's prescribed
As prescribed in 41.501(b), insert a provision substantially the same as the following:
Prescribing reference: FAR 41.501(b).
The official text, verbatim
As prescribed in 41.501(b), insert a provision substantially the same as the following:
Electric Service Territory Compliance Representation (May 1999)
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(a) Section 8093 of Public Law100-202 generally requires purchases of electricity by any department, agency, or instrumentality of the United States to be consistent with State law governing the provision of electric utility service, including State utility commission rulings and electric utility franchises or service territories established pursuant to State statute, State regulation, or State-approved territorial agreements.
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(b) By signing this offer, the offeror represents that this offer to sell electricity is consistent with Section 8093 of Public Law100-202.
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(c) Upon request of the Contracting Officer, the offeror shall submit supporting legal and factual rationale for this representation.
(End of clause)