[Federal Register Volume 88, Number 213 (Monday, November 6, 2023)]
[Notices]
[Pages 76207-76208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-24456]


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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 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 Cumberland 
System of Projects to include a procedure for distribution of renewable 
energy certificates (RECs). The Cumberland System power marketing 
policy was published on August 5, 1993, 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 October 21, 2021, a 
notice of intent to revise the power marketing policy to include 
provisions regarding RECs from the Cumberland System. The proposed 
revision to the Cumberland System Power Marketing Policy was published 
in the Federal Register on April 25, 2023. A virtual web based public 
information and comment forum was held on June 29, 2023, with written 
comments due on or before July 14, 2023.

DATES: The power marketing policy revision will become effective 
December 6, 2023.

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 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, through delegated authority, 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.
    Southeastern's authority to formulate the policy and perform the 
functions are derived from section 302(a) of the Department of Energy 
Organization Act, 42 U.S.C. 7152. By Delegation Order No. S1-DEL-RATES-
2016, effective November 19, 2016, the Secretary of Energy delegated: 
(1) the authority to develop power and transmission rates to the SEPA 
Administrator; (2) the authority to confirm, approve, and place such 
rates into effect on an interim basis to the Deputy Secretary of 
Energy; and (3) the authority to confirm, approve, and place into 
effect on a final basis, or to remand or disapprove such rates, to 
FERC. By Delegation Order No. S1-DEL-S3-2023, effective April 10, 2023, 
the Secretary of Energy also delegated the authority to confirm, 
approve, and place such rates into effect on an interim basis to the 
Under Secretary for Infrastructure. By Redelegation Order No. S3-DEL-
SEPA1-2023, effective April 10, 2023, the Under Secretary for 
Infrastructure further redelegated the authority to confirm, approve, 
and place such rates into effect on an interim basis to SEPA's 
Administrator.
    The Cumberland System consist 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 
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 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 Cumberland System.
    Through 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

[[Page 76208]]

Customers with allocations of power from the Cumberland System.

Public Notice and Comment

    Southeastern published a proposed revision in the Federal Register, 
88 FR 24981, dated April 25, 2023. Southeastern held a web-based 
information and comment forum on June 29, 2023. Southeastern received 
no comments.

Revision to the Power Marketing Policy

    Southeastern revises 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 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. 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 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 is exempted 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 October 23, 
2023, 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 November 1, 2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2023-24456 Filed 11-3-23; 8:45 am]
BILLING CODE 6450-01-P