[Federal Register Volume 71, Number 19 (Monday, January 30, 2006)]
[Notices]
[Pages 4904-4905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-1096]


-----------------------------------------------------------------------

DEPARTMENT OF ENERGY


Study of the Potential Benefits of Distributed Generation

AGENCY: National Energy Technology Laboratory, U.S. Department of 
Energy.

ACTION: Notice of inquiry and request for public comment.

-----------------------------------------------------------------------

SUMMARY: The Distributed Energy Program from the Department of Energy's 
(DOE) Office of Electricity Delivery and Energy Reliability (OE) is 
seeking public input for a study of the potential benefits of 
distributed generation required by section 1817 of the Energy Policy 
Act of 2005. DOE invites interested parties to relate experiences, 
convey data, communicate results of case studies or analyses, or 
provide other information pertaining to the planning, installation, 
commissioning and operation of distributed energy systems as outlined 
below.

DATES: Comments, reports, case studies and other information offered in 
response to this Notice shall be received no later than February 23, 
2006 at any of the addresses listed in the ADDRESSES section.

ADDRESSES: Interested parties are invited to submit comments 
electronically (using Adobe[supreg] Acrobat[supreg] or 
Microsoft[supreg] Word formats) or in hard copy. Submissions should 
include a cover page containing the commenter's name, affiliation, 
telephone number, mailing address, and e-mail address. DOE will 
consider all comments received.
    Comments prepared in electronic formats may be submitted directly, 
via the Web at: http://www.dg1817report.org. Links to this Web page may 
also be found on the OE Web site: http://www.electricity.doe.gov, or 
the NETL Web site: http://www.netl.doe.gov. Written submissions may 
also be sent by regular mail to: Mario Sciulli, U.S. Department of 
Energy, National Energy Technology Laboratory, PO Box 10940, MS 922-
342C, Pittsburgh, PA 15236; or by e-mail to: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Mario Sciulli, U.S. Department of 
Energy, National Energy Technology Laboratory, PO Box 10940, MS 922-
342C, Pittsburgh, PA 15236, e-mail address: [email protected]. 
Information offered by commenters in response to this Notice will be 
available for public inspection at the Department of Energy, Freedom of 
Information Reading Room, Room 1E-190, 1000 Independence Avenue, SW., 
Washington, DC 20585 between the hours of 9 a.m. and 4 p.m. Monday 
through Friday, except for holidays.

SUPPLEMENTARY INFORMATION:

I. Background.

    Section 1817 of the Energy Policy Act of 2005 (EPAct 2005) requires 
DOE to conduct a study in consultation with the Federal Energy 
Regulatory Commission (FERC) of the potential benefits of cogeneration 
and small power production. The Electricity Modernization Act Sec.  
1817, 119 Stat. 594, 1130 (2005). This study will encompass various 
forms of distributed energy technologies, ranging from those that 
produce only electricity to those that produce a combination of heat 
and power (CHP), installed at or near the point of use.
    The first component of the DOE study will analyze potential 
benefits associated with expanded utilization of distributed energy 
technologies. For purposes of this Notice the terms ``distributed 
generation'' (DG), ``cogeneration'' and ``small power production'' are 
synonymous.\1\ Specific

[[Page 4905]]

case studies will be evaluated to gauge the impact of regulatory 
mandates, tariffs, rate structures and similar policies on the 
proliferation of DG, CHP systems and other distributed energy 
technologies. The second component of the DOE study will address the 
rate-related issues ``that may impede or otherwise discourage the 
expansion of'' distributed energy technologies. Id. section 1817(a)(3).

II. Questions for Public Comment and Request for Data

    To aid in conducting this study, DOE requests public input/comment 
that addresses the two issues discussed below.

A. Potential Benefits

    In accordance with section 1817 of EPAct 2005, this study will 
attempt to identify, discuss and quantify benefits that are received 
directly or indirectly by three classes of recipients: ``(i) * * * 
electricity distribution or transmission service provider[s]; (ii) 
other customers served by an electricity distribution or transmission 
service provider; and (iii) the general public in the area served by 
the public utility in which the cogenerator or small power producer is 
located.'' Id. section 1817(a)(1)(B)(i)-(iii).
    In analyzing the potential benefits of DG, CHP and other 
distributed energy technologies, the study will focus on the following 
areas:
    (i) Dynamics of the electric system (grid) including reliability in 
terms of outages (seconds to hours), power quality (microseconds), and 
ancillary services (including reactive power or volt-amperes reactive);
    (ii) Economic ramifications of distributed energy technologies, 
including reduction of peak power requirements due to on-site 
generation (based on distribution feeder load duration curves), offsets 
to investments in generation, transmission or distribution facilities 
that would otherwise be recovered through rates, and diminished land 
use effects and rights-of-way acquisitions; and
    (iii) Physical security and emergency supply of power, including 
reducing vulnerability of a system to terrorism.
    To accomplish this aspect of the study, DOE requests case studies, 
analyses, or reports valuing these potential benefits under varying 
circumstances for individual DG, CHP and other distributed energy 
technologies.

B. Rate-Related Impediments

    Subsection 1817(a) of EPAct 2005 states that DOE's study must 
include, among other things, an analysis of rate-related issues that 
``may impede or otherwise discourage the expansion of cogeneration and 
small power production facilities.'' Id. Section 1817(a)(2)(B). To 
evaluate rate-related impediments that may hinder or otherwise 
discourage the expansion of DG, CHP systems and other distributed 
energy technologies, this study will analyze whether rates, rules, 
tariffs, or other requirements imposed on such installations are 
comparable to rates imposed on other customers of the same class that 
do not have distributed energy facilities. For this portion of the 
study, DOE requests public comment (in the form of case studies or 
similar information) depicting the effect of rate-related issues on the 
planning, financing, installation, commissioning or operation of DG, 
CHP and other distributed energy technologies.

III. Public Participation

A. Report

    DOE will make the draft report available to the public and provide 
an opportunity for interested parties to submit written comments on the 
initial conclusions reached by the study. Following the public review 
period, DOE will subsequently present the results of the study to the 
President and Congress not later than February 8, 2007, and will 
thereafter publish a final report.

B. Submission of Comments

    DOE requests written comments from interested parties on all 
aspects of the study required by section 1817. DOE is especially 
interested in receiving written comments from persons with particular 
knowledge of the legal, economic and technical elements related to the 
benefits and rate-related issues concerning DG, CHP and other 
distributed energy technologies. Any information submitted to DOE, 
however, should not contain confidential, proprietary or business 
sensitive data.

    Issued in Washington, DC, on January 24, 2006.
Kevin Kolevar,
Director, Office of Electricity Delivery and Energy Reliability, U.S. 
Department of Energy.
---------------------------------------------------------------------------

    \1\ The term ``cogeneration facility'' typically describes a 
facility that produces electric and/or thermal energy independent of 
or interconnected to the local electricity supplier (grid). 16 
U.S.C. 796(18)(A). Similarly, ``small power production facility'' 
usually refers to a facility that produces less than 80 megawatts of 
electricity. Id.
    Section 796(17)(A). ``Distributed generation'' (DG) generally 
applies to energy systems that produce electricity and/or thermal 
energy at or near the point of use.
---------------------------------------------------------------------------

 [FR Doc. E6-1096 Filed 1-27-06; 8:45 am]
BILLING CODE 6450-01-P