[Federal Register Volume 72, Number 13 (Monday, January 22, 2007)]
[Notices]
[Pages 2721-2723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-156]


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TENNESSEE VALLEY AUTHORITY


Proposed Standards on Smart Metering Interconnection, Net 
Metering, Fuels Sources, and Fossil Fuel Generation Efficiency

AGENCY: Tennessee Valley Authority (TVA).

ACTION: Notice.

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SUMMARY: On August 17, 2006, Tennessee Valley Authority (``TVA'') 
published a notice (71 FR 47557) of the commencement of its 
consideration process for the Time-based Metering & Communications 
(hereinafter called ``Smart Metering''), Interconnection, and Net 
Metering standards promulgated 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) (hereinafter called 
``PURPA''). This notice amends and supplements the August 17 notice to 
(1) set new deadlines related to the consideration of the three 
standards which were the subject of that notice and (2) inform the 
public of the commencement of TVA's consideration process for the two 
remaining standards listed in section 111(d) of PURPA, which are the 
Fuel Sources and Fossil Fuel Generation Efficiency standards.
    TVA will consider adopting all five of these standards for itself 
as well as for the distributors of TVA power and will consider these 
standards on the basis of

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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: The record for the Smart Metering standard was due to close on 
December 1, 2006. However, the comment period for this standard will be 
extended, and the record will close on June 1, 2007. The record for the 
Interconnection and Net Metering standards is due to close on March 1, 
2007. The comment period for these two standards will also be extended 
to close on June 1, 2007. Accordingly, public comments will continue to 
be accepted for submission to the official record on the Smart 
Metering, Interconnection, and Net Metering standards until June 1, 
2007.
    At this time, TVA initiates its consideration of the Fuel Sources 
and Fossil Fuel Generation Efficiency standards. Data, views, and 
comments on these standards are requested in order to glean the 
public's views on the need and desirability of such standards. Comments 
on variations in any of the standards, as well as comments for or 
against their adoption are welcome. The record for the Fuel Sources and 
Fossil Fuel Generation Efficiency standards will close on June 1, 2007. 
Public comments on these standards must be received by this date. As to 
each of the five standards, written comments of TVA staff concerning 
the standard will be made a part of the official record at least 30 
days before the date the record closes.

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.

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

SUPPLEMENTARY INFORMATION:
    Standards. The standards about which a determination will be made 
are:
    (1) Smart Metering.
    A. Not later than 18 months after the date of enactment of this 
paragraph, 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 schedule 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 of 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 advanced 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. For purposes of implementing this paragraph, any reference 
contained in this section to the date of enactment of the Public 
Utility Regulatory Policies Act of 1978 shall be deemed to be a 
reference to the date of enactment of this paragraph.
    E. 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 
the electric utility.
    F. Notwithstanding subsections (b) and (c) of section 2622 of 
this title, 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 this title and 
issue a decision whether it is appropriate to implement the 
standards set out in subparagraphs (A) and (C).
    (2) Interconnection. Each electric 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 Electrical 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 electric 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.
    (4) Fuel sources. Each electric utility shall develop a plan to 
minimize dependence on 1 fuel source and to ensure that the electric 
energy it sells to consumers is generated using a diverse range of 
fuels and technologies, including renewable technologies.
    (5) Fossil fuel generation efficiency. Each electric utility 
shall develop and implement a 10-year plan to increase the 
efficiency of its fossil fuel generation.

    Procedures. Written data, views, and comments on the standards are 
requested from the public and must be received by 5 p.m. EST on June 1, 
2007. Written statements of the TVA staff concerning each standard will 
be made part of the official record at least 30 days before the date 
the record closes, at which time the staff comments will be made 
available to the public on request.
    The official record will consist of all data, views, and comments, 
including written statements of the TVA staff, 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 PURPA.
    Individual copies of the record will be available to the public at 
cost of

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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, TN, (615) 232-6070; Tennessee Valley 
Authority, 1101 Market Street, Chattanooga, Tennessee, (423) 751-0011; 
and on the Web at http://tva.com/purpa.

    Dated: January 10, 2007.
John P. Kernodle,
Assistant General Counsel.
[FR Doc. 07-156 Filed 1-19-07; 8:45 am]
BILLING CODE 8120-08-M