[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Notices]
[Pages 77104-77105]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27289]



[[Page 77104]]

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DEPARTMENT OF ENERGY

Southeastern Power Administration


Revision to Power Marketing Policy Georgia-Alabama-South Carolina 
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 Georgia-
Alabama-South Carolina System of Projects to include a procedure for 
distribution of renewable energy certificates (RECs). The Georgia-
Alabama-South Carolina System power marketing policy was published on 
December 28, 1994, 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 January 14, 2022, a notice of intent to 
revise the power marketing policy to include provisions regarding RECs 
from the Georgia-Alabama-South Carolina System. The proposed revision 
to the Georgia-Alabama-South Carolina System Power Marketing Policy was 
published in the Federal Register on August 16, 2022. A virtual web 
based public information and comment forum was held on October 19, 
2022, with written comments due on or before November 3, 2022.

DATES: The power marketing policy revision will become applicable upon 
publication of this notice in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Mr. Douglas Spencer, Engineer, 
Southeastern Power Administration, 1166 Athens Tech Road, Elberton, GA 
30635, (706) 213-3855, Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    Southeastern published a ``Notice of Issuance of Final Power 
Marketing Policy Georgia-Alabama-South Carolina System of Projects'' in 
the Federal Register on December 28, 1994, 59 FR 66957. 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 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.
    The Georgia-Alabama-South Carolina System consist of ten projects: 
Allatoona, Buford, Carters, Hartwell, J.S. Thurmond, Millers Ferry, 
R.B. Russell, R.F. Henry, West Point, and W.F. George projects. The 
power generated at these projects is purchased by and benefits 192 
preference customers in Alabama, Florida, Georgia, Mississippi, South 
Carolina, and North Carolina. The power from the projects is currently 
marketed to Preference Customers located in the service areas of 
Southern Company, PowerSouth Energy Cooperative, Duke Energy Carolinas, 
South Carolina Public Service Authority, and Dominion Energy South 
Carolina formerly doing business as South Carolina Electric & Gas. The 
System provides 2,184,257 kilowatts of capacity and about 3,383,000 MWh 
of average annual energy from stream-flow based on modeling for the 
period of record.
    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 Georgia-Alabama-South Carolina System.
    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 
Customers with allocations of power from the Georgia-Alabama-South 
Carolina System.

Public Notice and Comment

    Southeastern published a proposed revision in the Federal Register, 
87 FR 50333, dated August 16, 2022. Southeastern held a web-based 
information and comment forum on October 19, 2022. Southeastern 
received comments from Southeastern Federal Power Customers, Inc. 
(SeFPC).

Public Comment

    Written and oral comments are summarized below. Southeastern's 
responses follow each comment.
    Comment 1: SeFPC has requested clarification whether any further 
transfer sale, use, or trade transaction would be the sole 
responsibility of the preference customer and whether the customer is 
allowed to retire and monetize its RECs in a manner in which that 
customer sees fit.
    Response 1: Southeastern agrees with the understanding that after 
distribution into the customer M-RETS account the customer has the sole 
responsibility for further disposition of its RECs.
    Comment 2: SeFPC has requested clarification on the life-cycle and 
disposition of RECs remaining after the failure of a customer to 
provide a valid M-RETS account to receive a distribution.
    Response 2: Southeastern intends to utilize the M-RETS system to 
create, track and distribute RECs. RECs not yet distributed (either 
because a customer M-RETS account was not provided or by accumulation 
prior to the marketing policy being in effect) will adhere to the M-
RETS terms of service, procedures, policies for transfers regarding 
their life-cycle and the potential for forfeiture.
    Comment 3: SeFPC has requested to limit the revisions to the GA-AL-
SC System Power Marketing Policy solely to issues regarding RECs.
    Response 3: Southeastern agrees that this revision to the GA-AL-SC 
System Power Marketing Policy only addresses RECs.

Summary of Changes to the Power Marketing Policy Revision

    Southeastern made further changes to the Power Marketing Policy 
Revision as a result of comments received during the comment period and 
public forum. Southeastern added language indicating that any further 
transfer, sale, use, or transaction would be the sole responsibility of 
a Preference Customer.

Revision to the Power Marketing Policy

    Southeastern revises the Power Marketing Policy for the System to

[[Page 77105]]

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 in 
the region, 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. 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. Any further transfer, sale, use, or trade 
transaction would be the sole responsibility of a Preference Customer.
    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 has exemption 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 December 6, 
2022, 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 December 13, 2022.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2022-27289 Filed 12-15-22; 8:45 am]
BILLING CODE 6450-01-P