Notice2023-08633
Revision to Power Marketing Policy Cumberland 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
April 25, 2023
Issuing agencies
Energy DepartmentSoutheastern Power Administration
Abstract
Pursuant to its Procedure for Public Participation in the Formulation of Marketing Policy, published in the Federal Register on July 6, 1978, Southeastern Power Administration (Southeastern) published on October 21, 2021, a notice of intent to revise its power marketing policy to include provisions regarding renewable energy certificates (RECs) from its Cumberland System of Projects. The current power marketing policy was published on August 5, 1993, for the Cumberland System (System) and is reflected in contracts for the sale of system power, which are maintained in Southeastern's headquarters office. The following is the proposed revision to the Cumberland System Power Marketing Policy to include a procedure for distribution of RECs to Preference Customers. Southeastern solicits written comments in formulating the final marketing policy revision.
Full Text
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<title>Federal Register, Volume 88 Issue 79 (Tuesday, April 25, 2023)</title>
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[Federal Register Volume 88, Number 79 (Tuesday, April 25, 2023)]
[Notices]
[Pages 24981-24983]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-08633]
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DEPARTMENT OF ENERGY
Southeastern Power Administration
Revision to Power Marketing Policy Cumberland System of Projects
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of proposed revision to power marketing policy.
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SUMMARY: Pursuant to its Procedure for Public Participation in the
Formulation of Marketing Policy, published in the Federal Register on
July 6, 1978, Southeastern Power Administration (Southeastern)
published on October 21, 2021, a notice of intent to revise its power
marketing policy to include provisions regarding renewable energy
certificates (RECs) from its Cumberland System of Projects. The current
power marketing policy was published on August 5, 1993, for the
Cumberland System (System) and is reflected in contracts for the sale
of system power, which are maintained in Southeastern's headquarters
office. The following is the proposed revision to the Cumberland System
Power Marketing Policy to include a procedure for distribution of RECs
to Preference Customers. Southeastern solicits written comments in
formulating the final marketing policy revision.
DATES: A public information and comment forum will be held on June 29,
2023 at 11 a.m. via a virtual web based meeting to allow maximum
participation. Persons desiring to attend the forum should notify
Southeastern by June 22, 2023, so that a list of forum participants can
be prepared. Persons desiring to speak at the forum should specify this
in their notification to Southeastern; others may speak if time
permits. Written comments are due July 14, 2023, fifteen (15) days
after the scheduled comment forum.
ADDRESSES: Written comments should be submitted to: Virgil G. Hobbs
III,
[[Page 24982]]
Administrator, Southeastern Power Administration, Department of Energy,
1166 Athens Tech Road, Elberton, Georgia 30635-6711, and emailed to
<a href="/cdn-cgi/l/email-protection#f5969a9898909b8186b586908594db919a90db929a83"><span class="__cf_email__" data-cfemail="7d1e1210101813090e3d0e180d1c53191218531a120b">[email protected]</span></a>. The public information and comment forum for the
revision of the Cumberland System Power marketing policy to include
provisions for RECs will be by Microsoft Teams. Please register your
intent to attend, including name, address, phone number, and email
address, with Southeastern's Legal Assistant, Karen Fitzpatrick at
<a href="/cdn-cgi/l/email-protection#b6ddd7c4d3d898d0dfc2ccc6d7c2c4dfd5ddf6c5d3c6d798d2d9d398d1d9c0"><span class="__cf_email__" data-cfemail="b7dcd6c5d2d999d1dec3cdc7d6c3c5ded4dcf7c4d2c7d699d3d8d299d0d8c1">[email protected]</span></a>, to receive updates on the meeting
status of the comment forum.
FOR FURTHER INFORMATION CONTACT: Leon Jourolmon IV, General Counsel,
Southeastern Power Administration, 1166 Athens Tech Road, Elberton,
Georgia 30635. Telephone: (706) 213-3800. Email:
<a href="/cdn-cgi/l/email-protection#09656c66672763667c7b6665646667497a6c7968276d666c276e667f"><span class="__cf_email__" data-cfemail="2c40494342024643595e43404143426c5f495c4d02484349024b435a">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Pursuant to its ``Procedure for Public
Participation in Formulation of Marketing Policy'' (43 FR 29186),
Southeastern published a ``Notice of Issuance of Final Power Marketing
Policy, Cumberland System of Projects'' in the Federal Register on
August 5, 1993 (58 FR 41762). 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 disposition of
electric power and energy from reservoir projects operated by the
Department of the Army. Furthermore, Southeastern must transmit and
dispose of such power and energy in such manner as to encourage the
most widespread use at the lowest possible rates consistent with sound
business principles. Rate schedules are drawn to recover all costs
associated with producing and transmitting the power in accordance with
repayment criteria.
Southeastern began the development of a REC distribution process at
the request of customers in the Kerr-Philpott System. To expand the REC
distribution to additional customers, Southeastern has begun to develop
a process for REC distribution in the Cumberland System. The purpose of
the distributions is to provide customers with a product that the
customers have asked to receive, which will add value to the green,
renewable hydropower already delivered. The revisions will not change
the Administrator's prior determinations regarding power allocation
within the System marketing area.
All documents introduced at the public information and comment
forum, and all comments, questions and answers will be available for
inspection and copying in accordance with the Freedom of Information
Act (5 U.S.C. 552).
Public Notice and Comment
On October 21, 2021, Southeastern published in the Federal Register
a ``Notice of Intent to Revise Power Marketing Policy Cumberland System
of Projects'' (86 FR 58260) to revise its marketing policy by including
provisions regarding RECs from the System. The notice requested that
written comments and proposals be submitted on or before December 20,
2021. Southeastern received no public comments.
Proposed Revision to the Power Marketing Policy
The System consists of nine projects: Barkley, Center Hill,
Cheatham, Cordell Hull, Dale Hollow, Laurel, Old Hickory, J. Percy
Priest, and Wolf Creek. The power from the projects is currently
marketed to Preference Customers located in the service areas of the
Tennessee Valley Authority, Big Rivers Electric Corporation, Duke
Energy Progress, East Kentucky Power Cooperative, Kentucky Utilities,
Municipal Electric Agency of Mississippi, Mississippi Delta Energy
Agency, the seven-member Cooperative Energy currently receiving
Cumberland power, and Southern Illinois Power Cooperative.
Southeastern proposes to revise the Power Marketing Policy for the
System to 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 by
registered generators, 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 proposes distribution of 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. M-RETS (or a successor application) will be the transfer
mechanism for all RECs related to the Kerr-Philpott System. Any further
transfer, sale use, or trade transaction would be the sole
responsibility of a Preference Customer. 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. Customers receiving
energy under the TVA/TVPPA contract will receive their distributions
pursuant to the percentages in TVA Area Preference Customer 1978 Load
document (revised March 2022).
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
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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.
Signing Authority
This Department of Energy document was signed on April 17, 2023, by
Virgil G. Hobbs III, Administrator, Southeastern Power Administration,
pursuant to 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 April 19, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-08633 Filed 4-24-23; 8:45 am]
BILLING CODE 6450-01-P
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</html>Indexed from Federal Register on April 25, 2023.
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