Notice2023-24456
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
November 6, 2023
Effective
December 6, 2023
Issuing agencies
Energy DepartmentSoutheastern Power Administration
Abstract
Southeastern Power Administration (Southeastern or SEPA) announces revision to the power marketing policy for the Cumberland System of Projects to include a procedure for distribution of renewable energy certificates (RECs). The Cumberland System power marketing policy was published on August 5, 1993, 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 October 21, 2021, a notice of intent to revise the power marketing policy to include provisions regarding RECs from the Cumberland System. The proposed revision to the Cumberland System Power Marketing Policy was published in the Federal Register on April 25, 2023. A virtual web based public information and comment forum was held on June 29, 2023, with written comments due on or before July 14, 2023.
Full Text
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<title>Federal Register, Volume 88 Issue 213 (Monday, November 6, 2023)</title>
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[Federal Register Volume 88, Number 213 (Monday, November 6, 2023)]
[Notices]
[Pages 76207-76208]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-24456]
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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 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 Cumberland
System of Projects to include a procedure for distribution of renewable
energy certificates (RECs). The Cumberland System power marketing
policy was published on August 5, 1993, 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 October 21, 2021, a
notice of intent to revise the power marketing policy to include
provisions regarding RECs from the Cumberland System. The proposed
revision to the Cumberland System Power Marketing Policy was published
in the Federal Register on April 25, 2023. A virtual web based public
information and comment forum was held on June 29, 2023, with written
comments due on or before July 14, 2023.
DATES: The power marketing policy revision will become effective
December 6, 2023.
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#6a0e051f0d060b1944191a0f04090f182a190f1a0b440e050f440d051c"><span class="__cf_email__" data-cfemail="ea8e859f8d868b99c4999a8f84898f98aa998f9a8bc48e858fc48d859c">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
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, through delegated authority, 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.
Southeastern's authority to formulate the policy and perform the
functions are derived from section 302(a) of the Department of Energy
Organization Act, 42 U.S.C. 7152. By Delegation Order No. S1-DEL-RATES-
2016, effective November 19, 2016, the Secretary of Energy delegated:
(1) the authority to develop power and transmission rates to the SEPA
Administrator; (2) the authority to confirm, approve, and place such
rates into effect on an interim basis to the Deputy Secretary of
Energy; and (3) the authority to confirm, approve, and place into
effect on a final basis, or to remand or disapprove such rates, to
FERC. By Delegation Order No. S1-DEL-S3-2023, effective April 10, 2023,
the Secretary of Energy also delegated the authority to confirm,
approve, and place such rates into effect on an interim basis to the
Under Secretary for Infrastructure. By Redelegation Order No. S3-DEL-
SEPA1-2023, effective April 10, 2023, the Under Secretary for
Infrastructure further redelegated the authority to confirm, approve,
and place such rates into effect on an interim basis to SEPA's
Administrator.
The Cumberland System consist 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
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 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 Cumberland System.
Through 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
[[Page 76208]]
Customers with allocations of power from the Cumberland System.
Public Notice and Comment
Southeastern published a proposed revision in the Federal Register,
88 FR 24981, dated April 25, 2023. Southeastern held a web-based
information and comment forum on June 29, 2023. Southeastern received
no comments.
Revision to the Power Marketing Policy
Southeastern revises 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 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. 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 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 is exempted 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 October 23,
2023, 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 November 1, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-24456 Filed 11-3-23; 8:45 am]
BILLING CODE 6450-01-P
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