Notice2022-27289
Revision to Power Marketing Policy Georgia-Alabama-South Carolina System of Projects
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 16, 2022
Issuing agencies
Energy DepartmentSoutheastern Power Administration
Abstract
Southeastern Power Administration (Southeastern or SEPA) announces revision to the power marketing policy for the Georgia- Alabama-South Carolina System of Projects to include a procedure for distribution of renewable energy certificates (RECs). The Georgia- Alabama-South Carolina System power marketing policy was published on December 28, 1994, and is reflected in contracts for the sale of system power, which are maintained in Southeastern's headquarters office. Pursuant to the Procedure for Public Participation in the Formulation of Marketing Policy, published in the Federal Register on July 6, 1978, Southeastern published on January 14, 2022, a notice of intent to revise the power marketing policy to include provisions regarding RECs from the Georgia-Alabama-South Carolina System. The proposed revision to the Georgia-Alabama-South Carolina System Power Marketing Policy was published in the Federal Register on August 16, 2022. A virtual web based public information and comment forum was held on October 19, 2022, with written comments due on or before November 3, 2022.
Full Text
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<title>Federal Register, Volume 87 Issue 241 (Friday, December 16, 2022)</title>
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[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Notices]
[Pages 77104-77105]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27289]
[[Page 77104]]
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DEPARTMENT OF ENERGY
Southeastern Power Administration
Revision to Power Marketing Policy Georgia-Alabama-South Carolina
System of Projects
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of revision to power marketing policy.
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SUMMARY: Southeastern Power Administration (Southeastern or SEPA)
announces revision to the power marketing policy for the Georgia-
Alabama-South Carolina System of Projects to include a procedure for
distribution of renewable energy certificates (RECs). The Georgia-
Alabama-South Carolina System power marketing policy was published on
December 28, 1994, and is reflected in contracts for the sale of system
power, which are maintained in Southeastern's headquarters office.
Pursuant to the Procedure for Public Participation in the Formulation
of Marketing Policy, published in the Federal Register on July 6, 1978,
Southeastern published on January 14, 2022, a notice of intent to
revise the power marketing policy to include provisions regarding RECs
from the Georgia-Alabama-South Carolina System. The proposed revision
to the Georgia-Alabama-South Carolina System Power Marketing Policy was
published in the Federal Register on August 16, 2022. A virtual web
based public information and comment forum was held on October 19,
2022, with written comments due on or before November 3, 2022.
DATES: The power marketing policy revision will become applicable upon
publication of this notice in the Federal Register.
FOR FURTHER INFORMATION CONTACT: Mr. Douglas Spencer, Engineer,
Southeastern Power Administration, 1166 Athens Tech Road, Elberton, GA
30635, (706) 213-3855, Email: <a href="/cdn-cgi/l/email-protection#a8ccc7ddcfc4c9db86dbd8cdc6cbcddae8dbcdd8c986ccc7cd86cfc7de"><span class="__cf_email__" data-cfemail="d5b1baa0b2b9b4a6fba6a5b0bbb6b0a795a6b0a5b4fbb1bab0fbb2baa3">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
Southeastern published a ``Notice of Issuance of Final Power
Marketing Policy Georgia-Alabama-South Carolina System of Projects'' in
the Federal Register on December 28, 1994, 59 FR 66957. The policy
establishes the marketing area for system power and addresses the
utilization of area utility systems for essential purposes. The policy
also addresses wholesale rates, resale rates, and conservation
measures, but does not address RECs.
Under Section 5 of the Flood Control Act of 1944 (16 U.S.C. 825s),
Southeastern is responsible for the transmission and disposition of
electric power and energy from reservoir projects operated by the U.S.
Army Corps of Engineers. Furthermore, Southeastern must transmit and
dispose of power and energy in such a manner as to encourage the most
widespread use at the lowest possible rates to consumers consistent
with sound business principles. Rate schedules are developed with
regard to the recovery of the cost of producing and transmitting such
electric energy.
The Georgia-Alabama-South Carolina System consist of ten projects:
Allatoona, Buford, Carters, Hartwell, J.S. Thurmond, Millers Ferry,
R.B. Russell, R.F. Henry, West Point, and W.F. George projects. The
power generated at these projects is purchased by and benefits 192
preference customers in Alabama, Florida, Georgia, Mississippi, South
Carolina, and North Carolina. The power from the projects is currently
marketed to Preference Customers located in the service areas of
Southern Company, PowerSouth Energy Cooperative, Duke Energy Carolinas,
South Carolina Public Service Authority, and Dominion Energy South
Carolina formerly doing business as South Carolina Electric & Gas. The
System provides 2,184,257 kilowatts of capacity and about 3,383,000 MWh
of average annual energy from stream-flow based on modeling for the
period of record.
Southeastern has been using the Generation Attribute Tracking
System (GATS) provided through the PJM Interconnection, LLC, for the
Kerr-Philpott System of Projects. The attributes are unbundled from the
megawatt-hour of energy produced and recorded onto a certificate. These
certificates may be used by electricity suppliers and other energy
market participants to comply with relevant state policies and
regulatory programs and to support voluntary ``green'' electricity
markets. Southeastern will use the similar M-RETS product for
distributing certificates to current Preference Customers with
allocations of power from the Georgia-Alabama-South Carolina System.
This RECs tracking system Southeastern is capable of tracking
environmental attributes used for voluntary claims in all state,
provinces, and territories in North America. Under the following
revision of the 1994 power marketing policy, Southeastern will
distribute the M-RETS created certificates to current Preference
Customers with allocations of power from the Georgia-Alabama-South
Carolina System.
Public Notice and Comment
Southeastern published a proposed revision in the Federal Register,
87 FR 50333, dated August 16, 2022. Southeastern held a web-based
information and comment forum on October 19, 2022. Southeastern
received comments from Southeastern Federal Power Customers, Inc.
(SeFPC).
Public Comment
Written and oral comments are summarized below. Southeastern's
responses follow each comment.
Comment 1: SeFPC has requested clarification whether any further
transfer sale, use, or trade transaction would be the sole
responsibility of the preference customer and whether the customer is
allowed to retire and monetize its RECs in a manner in which that
customer sees fit.
Response 1: Southeastern agrees with the understanding that after
distribution into the customer M-RETS account the customer has the sole
responsibility for further disposition of its RECs.
Comment 2: SeFPC has requested clarification on the life-cycle and
disposition of RECs remaining after the failure of a customer to
provide a valid M-RETS account to receive a distribution.
Response 2: Southeastern intends to utilize the M-RETS system to
create, track and distribute RECs. RECs not yet distributed (either
because a customer M-RETS account was not provided or by accumulation
prior to the marketing policy being in effect) will adhere to the M-
RETS terms of service, procedures, policies for transfers regarding
their life-cycle and the potential for forfeiture.
Comment 3: SeFPC has requested to limit the revisions to the GA-AL-
SC System Power Marketing Policy solely to issues regarding RECs.
Response 3: Southeastern agrees that this revision to the GA-AL-SC
System Power Marketing Policy only addresses RECs.
Summary of Changes to the Power Marketing Policy Revision
Southeastern made further changes to the Power Marketing Policy
Revision as a result of comments received during the comment period and
public forum. Southeastern added language indicating that any further
transfer, sale, use, or transaction would be the sole responsibility of
a Preference Customer.
Revision to the Power Marketing Policy
Southeastern revises the Power Marketing Policy for the System to
[[Page 77105]]
include the following additional provisions for RECs associated with
hydroelectric generation:
Renewable Energy Certificates: The M-RETS Tracking System creates
and tracks certificates reporting generation attributes, by generating
unit, for each megawatt-hour (MWh) of energy produced by registered
generators. The System projects are registered generators within M-
RETS. The RECs potentially satisfy Renewable Portfolio Standards, state
policies, and other regulatory or voluntary clean energy standards in a
number of states. Southeastern has subscribed to M-RETS and has an
account in which RECs are collected and tracked for each MWh of energy
produced from the System. Within M-RETS, certificates can be
transferred to other M-RETS subscribers or to a third-party tracking
system.
M-RETS creates a REC for every MWh of renewable energy produced in
the region, tracks the life cycle of each REC created, and ensures
against any double-counting or double-use of each REC. These RECs may
be used by electricity suppliers and other energy market participants
to comply with relevant state policies and regulatory programs and to
support voluntary ``green'' electricity markets.
Southeastern will distribute M-RETS-created RECs to Preference
Customers with allocations of power from the System.
REC Distribution: M-RETS (or a successor application) will be the
transfer mechanism for all RECs related to the System. Southeastern
shall maintain an account with M-RETS and collect RECs from the
generation at the System projects. Southeastern will verify the total
amount of RECs each month. Preference Customers with an allocation of
power from the System are eligible to receive RECs by transfer from
Southeastern's M-RETS account to their M-RETS account or that of their
agent. Transfers to each customer will be based on the customer's
monthly invoices during the same three-month period (quarter). Where
applicable, RECs will be project-specific based on the customer's
contractual arrangements. Any further transfer, sale, use, or trade
transaction would be the sole responsibility of a Preference Customer.
All RECs distributed by Southeastern shall be transferred within
forty-five days of the end of a quarter. Each customer must submit to
Southeastern, by the tenth business day after the quarter, any notice
of change to M-RETS account or agent. Any REC transfers that were not
claimed or if a transfer account was not provided to Southeastern will
be forfeited if they become nontransferable as described in the M-RETS
terms of service, procedures, policies, or definitions of reporting and
trading periods, or any subsequent rules and procedures for transfers
as established.
The initial transfer process in M-RETS will be accomplished by the
sixtieth day after the end of the first completed quarter subsequent to
publication of the final policy revision. Any balance of RECs that
exist in Southeastern's M-RETS account, other than the first quarter
after policy revision publication, may also be transferred to
Preference Customers according to the customer's invoiced energy at the
time of the REC creation.
Rates: No rates shall be established by Southeastern for RECs
transferred to Preference Customers. Any cost to Southeastern, such as
the M-RETS subscription, will be incorporated into marketing costs and
included in recovery through the energy and capacity rates of the
System.
Determination Under Executive Order 12866
Southeastern has exemption from centralized regulatory review under
Executive Order 12866; accordingly, no clearance of this notice by the
Office of Management and Budget is required.
Environmental Compliance
SEPA has determined this action fits within the following
categorical exclusions listed in appendix B to subpart D of 10 CFR part
1021: B4.1 (Contracts, policies, and marketing and allocation plans for
electric power). Categorically excluded projects and activities do not
require preparation of either an environmental impact statement or an
environmental assessment.
Signing Authority
This document of the Department of Energy was signed on December 6,
2022, by Virgil G. Hobbs III, Administrator, Southeastern Power
Administration, pursuant to the delegated authority from the Secretary
of Energy. That document, with the original signature and date, is
maintained by DOE. For administrative purposes only, and in compliance
with requirements of the Office of the Federal Register, the
undersigned DOE Federal Register Liaison Officer has been authorized to
sign and submit the document in electronic format for publication, as
an official document of the Department of Energy. This administrative
process in no way alters the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC, on December 13, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-27289 Filed 12-15-22; 8:45 am]
BILLING CODE 6450-01-P
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</html>Indexed from Federal Register on December 16, 2022.
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