[Federal Register Volume 71, Number 159 (Thursday, August 17, 2006)]
[Notices]
[Pages 47556-47557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-13557]


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TENNESSEE VALLEY AUTHORITY


Notice of Consideration of Standards

SUMMARY: The Tennessee Valley Authority (TVA) is considering adopting 
for itself and the distributors of TVA power certain metering and 
interconnection standards. The standards being considered are the Time-
based Metering & Communications (hereinafter called ``Smart 
Metering''), Interconnection, and Net Metering standards listed in 
section 111(d) of the Public Utility Regulatory Act of 1978 (Pub. L. 
95-617) as amended by the Energy Policy Act of 2005 (Pub. L. 109-58). 
The standards will be considered on the basis of their effect on 
conservation of energy, efficient use of facilities and resources, 
equity among electric consumers, and the objectives of the Tennessee 
Valley Authority Act. In addition, the Smart Metering standard will be 
considered in light of whether the benefits to the electric utility and 
its consumers are likely to exceed the costs of new metering and 
communications. Comments are requested from the public on whether TVA 
should adopt these standards or any variations on them.

DATES: Smart Metering Standard: Written comments on this standard must 
be received by December 1, 2006.
    Interconnection and Net Metering Standards: Written comments on 
these standards must be received by March 1, 2007.
    Workshops: concerning the standards to be considered will be held 
throughout the Valley during October 2006 at times and locations to be 
announced. The times and locations will be posted on the Web at http://www.tva.com/purpa and will also be announced through various media 
outlets. In addition, to be placed on a list to receive notice of 
workshop times and locations from TVA via mail, please write to the 
contact person designated below.

ADDRESSES: Written comments should be sent to: PURPA Standards 
Hearings, Attn: Carl Seigenthaler, Tennessee Valley Authority, One 
Century Place, 26 Century Boulevard, Nashville, TN 37214.
    Comments may also be submitted via the Web, at http://www.tva.com/purpa, and, as described below, through various means provided at the 
workshops.

FOR FURTHER INFORMATION CONTACT: Carl Seigenthaler, Tennessee Valley 
Authority, One Century Place, 26 Century Boulevard, Nashville, TN 
37214, (615) 232-6070.

SUPPLEMENTARY INFORMATION: Of the standards being considered, the 
Public Utility Regulatory Act of 1978 (Pub. L. 95-617) as amended by 
the Energy Policy Act of 2005 (Pub. L. 109-58) requires that TVA 
consider these standards. Accordingly, data, views, and comments are 
requested from the public on the Smart Metering, Interconnection, and 
Net Metering standards. Comments on variations in any of the standards, 
as well as views for or against their adoption are welcome. The three 
standards are being presented in order to initiate consideration and 
obtain the public's views on the need and desirability of such 
standards. Determinations on the appropriateness of the standards will 
be made by the TVA Board of Directors. The TVA Board will also 
determine, what, if any,

[[Page 47557]]

standards included in this notice will be implemented by TVA for itself 
and the distributors of TVA power.
    Standards: The standards about which a determination will be made 
are:
    (1) Smart Metering.
    A. Not later than 18 months after the enactment of these standards, 
each electric utility shall offer each of its customer classes, and 
provide individual customers upon customer request, a time-based rate 
schedule under which the rate charged by the electric utility varies 
during different time periods and reflects the variance, if any, in the 
utility's costs of generating and purchasing electricity at the 
wholesale level. The time-based rate schedule shall enable the electric 
consumer to manage energy use and cost through advanced metering and 
communications technology.
    B. The types of time-based rate schedules that may be offered under 
the scheduled referred to in subparagraph (A) include, among others:
    i. Time-of-use pricing whereby electricity prices are set for a 
specific time period on an advance or forward basis, typically not 
changing more often than twice a year, based on the utility's cost of 
generating and/or purchasing such electricity at the wholesale level 
for the benefit of the consumer. Prices paid for energy consumed during 
these periods shall be pre-established and known to consumers in 
advance of such consumption, allowing them to vary their demand and 
usage in response to such prices and manage their energy costs by 
shifting usage to a lower cost period or reducing their consumption 
overall;
    ii. Critical peak pricing whereby time-of-use prices are in effect 
except for certain peak days, when prices may reflect the costs of 
generating and/or purchasing electricity at the wholesale level and 
when consumers may receive additional discounts for reducing peak 
period energy consumption;
    iii. Real-time pricing whereby electricity prices are set for a 
specific time period on an advance or forward basis, reflecting the 
utility's cost of generating and/or purchasing electricity at the 
wholesale level, and may change as often as hourly; and
    iv. Credits for consumers with large loads who enter into pre-
established peak load reduction agreements that reduce a utility's 
planned capacity obligations.
    C. Each electric utility subject to subparagraph (A) shall provide 
each customer requesting a time-based rate with a time-based meter 
capable of enabling the utility and customer to offer and receive such 
rate, respectively.
    D. In a State that permits third-party marketers to sell electric 
energy to retail electric consumers, such consumers shall be entitled 
to receive the same time-based metering and communications device and 
service as a retail electric consumer of electric utility.
    E. Notwithstanding subsections (b) and (c) of section 2622 of Title 
16 of the United States Code, each State regulatory authority shall, 
not later than 18 months after the date of enactment of this paragraph 
conduct an investigation in accordance with section 2625(i) of said 
title and issue a decision whether it is appropriate to implement the 
standards set out in subparagraphs (A) and (C).
    (2) Interconnection. Each utility shall make available, upon 
request, interconnection service to any electric consumer that the 
electric utility serves. For purposes of this paragraph, the term 
``interconnection service'' means service to an electric consumer under 
which an on-site generating facility on the consumer's premises shall 
be connected to the local distribution facilities. Interconnection 
services shall be offered based upon the standards developed by the 
Institute of Electric and Electronics Engineers: IEEE Standard 1547 for 
Interconnecting Distributed Resources with Electric Power Systems, as 
they may be amended from time to time. In addition, agreements and 
procedures shall be established whereby the services are offered shall 
promote current best practices of interconnection for distributed 
generation, including but not limited to practices stipulated in model 
codes adopted by associations of state regulatory agencies. All such 
agreements and procedures shall be just and reasonable, and not unduly 
discriminatory or preferential.
    (3) Net metering. Each utility shall make available upon request 
net metering service to any electric consumer that the electric utility 
serves. For purposes of this paragraph, the term ``net metering 
service'' means service to an electric consumer under which electric 
energy generated by that electric consumer from an eligible on-site 
generating facility and delivered to the local distribution facilities 
may be used to offset electric energy provided by the electric utility 
to the electric consumer during the applicable billing period.
    Procedures: Written data, views, and comments on the standards are 
requested from the public. All material relating to the Smart Metering 
standard must be received by 5 p.m. EST on December 1, 2006. All 
material relating to the Interconnection and the Net Metering standard 
must be received by March 1, 2007. All materials received by TVA before 
these designated times will be considered by TVA. Written statements of 
TVA staff concerning the standards will be made part of the official 
record at least 30 days before the date the record closes, at which 
time they will be made available to the public on request.
    In order to assist interested consumers in preparing written data, 
views, and comments for the record, TVA will sponsor a series of five 
(5) workshops which will provide various means by which interested 
parties can be informed about the standards set out in this notice. 
These workshops will be held throughout the Valley during September and 
October 2006 at times and locations to be announced via the various 
means discussed above.
    A transcribing service will be onsite to record any oral comments 
one wishes to have placed in the record. In addition, workshop 
attendees will have the opportunity to submit their comments to the 
record by accessing computers available at the workshops for such 
purposes.
    The official record will consist of all oral comments submitted and 
transcribed at the workshops, all material submitted electronically, 
and all written materials submitted within the time set forth above. A 
summary of the record will be prepared by TVA staff and will be 
transmitted to the TVA Board of Directors along with the complete 
record. The record will be used by the Board in making the 
determinations required by section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (Pub. L. 95-617) as amended by the 
Energy Policy Act of 2005 (Pub. L. 109-58) and in fulfilling its 
obligation under the Tennessee Valley Authority Act.
    Individual copies of the record will be available to the public at 
cost of reproduction. Copies will also be kept on file for public 
inspection at the following locations: Tennessee Valley Authority, One 
Century Place, 26 Century Boulevard, Nashville, Tennessee, (615) 232-
6070; Tennessee Valley Authority, 1101 Market Street, Chattanooga, 
Tennessee (423) 751-0011; and on the Web at http://www.tva.com/purpa.

Nicholas P. Goschy, Jr.,
Assistant General Counsel.
 [FR Doc. E6-13557 Filed 8-16-06; 8:45 am]
BILLING CODE 8120-08-P