[Federal Register Volume 88, Number 79 (Tuesday, April 25, 2023)]
[Notices]
[Pages 24981-24983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-08633]


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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 proposed revision to power marketing policy.

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SUMMARY: Pursuant to its Procedure for Public Participation in the 
Formulation of Marketing Policy, published in the Federal Register on 
July 6, 1978, Southeastern Power Administration (Southeastern) 
published on October 21, 2021, a notice of intent to revise its power 
marketing policy to include provisions regarding renewable energy 
certificates (RECs) from its Cumberland System of Projects. The current 
power marketing policy was published on August 5, 1993, for the 
Cumberland System (System) and is reflected in contracts for the sale 
of system power, which are maintained in Southeastern's headquarters 
office. The following is the proposed revision to the Cumberland System 
Power Marketing Policy to include a procedure for distribution of RECs 
to Preference Customers. Southeastern solicits written comments in 
formulating the final marketing policy revision.

DATES: A public information and comment forum will be held on June 29, 
2023 at 11 a.m. via a virtual web based meeting to allow maximum 
participation. Persons desiring to attend the forum should notify 
Southeastern by June 22, 2023, so that a list of forum participants can 
be prepared. Persons desiring to speak at the forum should specify this 
in their notification to Southeastern; others may speak if time 
permits. Written comments are due July 14, 2023, fifteen (15) days 
after the scheduled comment forum.

ADDRESSES: Written comments should be submitted to: Virgil G. Hobbs 
III,

[[Page 24982]]

Administrator, Southeastern Power Administration, Department of Energy, 
1166 Athens Tech Road, Elberton, Georgia 30635-6711, and emailed to 
[email protected]. The public information and comment forum for the 
revision of the Cumberland System Power marketing policy to include 
provisions for RECs will be by Microsoft Teams. Please register your 
intent to attend, including name, address, phone number, and email 
address, with Southeastern's Legal Assistant, Karen Fitzpatrick at 
[email protected], to receive updates on the meeting 
status of the comment forum.

FOR FURTHER INFORMATION CONTACT: Leon Jourolmon IV, General Counsel, 
Southeastern Power Administration, 1166 Athens Tech Road, Elberton, 
Georgia 30635. Telephone: (706) 213-3800. Email: 
[email protected].

SUPPLEMENTARY INFORMATION: Pursuant to its ``Procedure for Public 
Participation in Formulation of Marketing Policy'' (43 FR 29186), 
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 is responsible for the transmission disposition of 
electric power and energy from reservoir projects operated by the 
Department of the Army. Furthermore, Southeastern must transmit and 
dispose of such power and energy in such manner as to encourage the 
most widespread use at the lowest possible rates consistent with sound 
business principles. Rate schedules are drawn to recover all costs 
associated with producing and transmitting the power in accordance with 
repayment criteria.
    Southeastern began the development of a REC distribution process at 
the request of customers in the Kerr-Philpott System. To expand the REC 
distribution to additional customers, Southeastern has begun to develop 
a process for REC distribution in the Cumberland System. The purpose of 
the distributions is to provide customers with a product that the 
customers have asked to receive, which will add value to the green, 
renewable hydropower already delivered. The revisions will not change 
the Administrator's prior determinations regarding power allocation 
within the System marketing area.
    All documents introduced at the public information and comment 
forum, and all comments, questions and answers will be available for 
inspection and copying in accordance with the Freedom of Information 
Act (5 U.S.C. 552).

Public Notice and Comment

    On October 21, 2021, Southeastern published in the Federal Register 
a ``Notice of Intent to Revise Power Marketing Policy Cumberland System 
of Projects'' (86 FR 58260) to revise its marketing policy by including 
provisions regarding RECs from the System. The notice requested that 
written comments and proposals be submitted on or before December 20, 
2021. Southeastern received no public comments.

Proposed Revision to the Power Marketing Policy

    The System consists 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 the 
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 proposes to revise 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 proposes distribution of 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

[[Page 24983]]

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.

Signing Authority

    This Department of Energy document was signed on April 17, 2023, by 
Virgil G. Hobbs III, Administrator, Southeastern Power Administration, 
pursuant to 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 April 19, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-08633 Filed 4-24-23; 8:45 am]
BILLING CODE 6450-01-P