[Federal Register Volume 89, Number 82 (Friday, April 26, 2024)]
[Notices]
[Pages 32519-32521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08917]


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TENNESSEE VALLEY AUTHORITY


Notice of Determinations on the Demand Response and Electric 
Vehicle Standards

AGENCY: Tennessee Valley Authority.

ACTION: Notice of determinations on the PURPA Standards set forth in 
the Infrastructure Investment and Jobs Act of 2021.

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SUMMARY: At its meeting on November 9, 2023, in Tupelo, Mississippi, 
the TVA Board made its determinations on the PURPA standards as set 
forth in the Public Utility Regulatory Policies Act of 1978 (PURPA), as 
amended by the Infrastructure Investment and Jobs Act of 2021 (IIJA). 
The TVA Board considered the standards in accordance with PURPA and the 
objectives and requirements of the Tennessee Valley Authority Act of 
1933, as amended (TVA Act).

FOR FURTHER INFORMATION CONTACT: Troy Eichenberger (Demand Response), 
(423) 751-6187, or Andrew Frye (Electric Vehicles), (423) 751-7060, 
Tennessee Valley Authority.

SUPPLEMENTARY INFORMATION: The Public Utility Regulatory Policies Act 
of 1978 (Pub. L. 95-617) (PURPA), as amended by the Infrastructure 
Investment and Jobs Act of 2021 (Pub. L. 117-58) (IIJA), requires TVA 
to consider adopting for itself and the distributors of TVA power two 
new PURPA standards. The standards considered are listed in subsections 
111(d)(20)-(21) of PURPA, as amended by the IIJA of 2021. These two 
standards are identified as Demand-Response Practices and Electric 
Vehicle Charging Programs. The TVA Board is charged with considering 
and making determinations on whether or not it is appropriate to 
implement each standard.
    Data, views, and comments were requested from the public as to the 
need and desirability of adopting the standards. In addition to posting 
a notice in the Federal Register on November 15, 2022 (87 FR 68569), 
which described the standards and solicited public input on the 
standards, TVA also provided a PURPA website (www.tva.com/purpa) for 
purposes of educating the public on the standards and soliciting public 
input. TVA also

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provided an overview of the Demand Response and Electric Vehicle 
standards to the Regional Energy Resource Council (RERC), an advisory 
committee established under the authority of the TVA in accordance with 
the provisions of the Federal Advisory Committee Act. All public input 
received on the standards has been included in the official record and 
made available to the public through the website.
    TVA's process for considering and making determinations on the new 
PURPA standards was carried out pursuant to the provisions of (a) 
PURPA, under which TVA is identified as the regulatory authority for 
electric utilities over which TVA has ratemaking authority, and (b) the 
Tennessee Valley Authority Act of 1933, 48 Stat. 58, as amended, 16 
U.S.C. 831-831dd (2007) (TVA Act). After consideration of the initial 
comments and materials received, TVA staff developed recommendations on 
each of the standards. All comments from the public, as well as the TVA 
staff recommendations, have been made a part of the official record and 
have been made available to the public through the website.
    The TVA Board considered these standards on the basis of the PURPA 
purposes, which are the (1) conservation of energy, (2) efficient use 
of facilities and resources, and (3) equity among electric consumers, 
and the objectives and requirements of the TVA Act. The Board took into 
account these considerations as well as the official record developed 
during the consideration process in reaching the determinations below.
    The Board's determinations are as follows.

Standard 20: Demand-Response Practices

I. Standard Under Consideration

(A) In General

    Each electric utility shall promote the use of demand-response 
and demand flexibility practices by commercial, residential, and 
industrial consumers to reduce electricity consumption during 
periods of unusually high demand.

(B) Rate Recovery

    (i) In general--Each State regulatory authority shall consider 
establishing rate mechanisms allowing an electric utility with 
respect to which the State regulatory authority has ratemaking 
authority to timely recover the costs of promoting demand-response 
and demand flexibility practices in accordance with subparagraph 
(A).
    (ii) Nonregulated electric utilities--A nonregulated electric 
utility may establish rate mechanisms for the timely recovery of the 
costs of promoting demand response and demand flexibility in 
accordance with subparagraph (A).

II. Observations

    Demand response (DR) focuses on reduction of peak demand. To reduce 
peak demand, TVA contracts with local power companies (LPCs) that 
distribute TVA power, TVA directly served customers, and LPC end-use 
customers to reduce energy use to specific levels when dispatched by 
TVA Operations. Through broad internal and external collaboration, TVA 
has developed a portfolio of program offerings that are designed to 
benefit TVA's resource planning resources as well as the growing energy 
needs and reserve requirements. These resources currently provide up to 
1,700 MW of carbon-free, dispatchable capacity achieved by three 
programs: Interruptible Power, Peak Power Partners, and Voltage 
Optimization. The programs help manage system demand load during peak 
hours.
    Current programs achieve demand reduction targets identified by 
TVA's long-range planning and annual power supply plans, and demand 
response is an essential component of the Integrated Resource Plan 
(IRP), which is a comprehensive study of how TVA can best deliver 
clean, reliable, and low-cost energy for the Valley's future. These 
plans each recommend continuing to add capacity to TVA's existing DR 
programs and to develop new DR programs.
    Existing demand response programs, and others that TVA may develop 
in the future, will continue to be an integral part of TVA's resource 
planning and system operations. TVA's existing approach to demand 
response is consistent with the intent of the standard that is under 
consideration. TVA has a process for LPCs to request cost recovery, 
which can include the costs associated with promoting demand response. 
LPC rate requests are reviewed and, where appropriate, approved through 
a TVA Board-approved rate review procedure. Costs associated with 
participating in a TVA program would generally be considered 
appropriate costs for recovery. TVA also factors its own demand 
response costs into its long-term financial planning.
    Because TVA's approach to DR depends upon collaboration with 
customers and encouraging participation in DR programs, the proposed 
demand-response practices standard under consideration was revised to 
build upon historical success and reflect the importance of this 
collaborative approach.

III. Determination by the TVA Board

    The standard under consideration is revised and adopted as follows:
    TVA will leverage the public power model and its decades of 
experience in offering demand response programs to maximize demand 
response benefits for its power system, local power companies that 
distribute TVA power, and directly served customers. TVA will consider 
adding capacity to its existing demand response programs and developing 
additional demand response programs, when economic, reliability, and 
decarbonization needs merit changes to the demand response portfolio. 
As the nation's largest public power producer with a mission to deliver 
affordable and reliable power, TVA will continue to work with local 
power companies, directly served customers, federal customers, and end-
use customers to ensure demand response programs are effective and meet 
the needs of the Valley.

Standard 21: Electric Vehicle Charging Programs

I. Standard Under Consideration

    Each State shall consider measures to promote greater 
electrification of the transportation sector, including the 
establishment of rates that--
    (A) promote affordable and equitable electric vehicle charging 
options for residential, commercial, and public electric vehicle 
charging infrastructure;
    (B) improve the customer experience associated with electric 
vehicle charging, including by reducing charging times for light-, 
medium-, and heavy-duty vehicles;
    (C) accelerate third-party investment in electric vehicle 
charging for light-, medium-, and heavy-duty vehicles; and
    (D) appropriately recover the marginal costs of delivering 
electricity to electric vehicles and electric vehicle charging 
infrastructure.

II. Observations

    The importance of electricity and TVA power has had a profound 
impact on the region. Today, the electrification of transportation 
offers similar transformative growth with environmental and economic 
benefits for the region. TVA is partnering with state agencies, local 
power companies (LPCs) that distribute TVA power, automotive 
manufacturers and other stakeholders to promote the adoption of 
electric vehicles (EVs) by addressing the major market barriers facing 
consumers: improving charging infrastructure availability, setting 
innovative and supportive policies, expanding EV availability and 
offerings, and increasing consumer awareness.
    TVA is heavily involved in promoting the adoption of EVs, including 
leading

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a collaboration with LPCs and other regional partners to develop one of 
the nation's most comprehensive publicly accessible EV fast charging 
networks. TVA also works with LPCs to offer affordable rate options for 
public EV fast charging that remove demand charges and are designed to 
accelerate public and private investment in EV infrastructure. 
Additionally, TVA is focused on increasing awareness and education of 
electric transportation through resources to educate and support 
residents with their residential, commercial, and public charging 
needs.
    EV programs are executed in conjunction with and support from LPCs 
based on the unique relationship between TVA and its wholesale 
customers and because EV charging deployment occurs at the distribution 
level. TVA will continue to promote EV adoption in a manner that is 
consistent with TVA's obligations under the TVA Act. The proposed 
electric vehicle charging programs standard under consideration was 
revised to build on existing efforts of TVA and LPCs and to account for 
the respective roles of TVA and LPCs. TVA will also continue to examine 
and develop other programs that promote adoption of EVs, including 
consideration in future rate actions and various energy programs.

III. Determination by the TVA Board

    The standard under consideration is revised and adopted as follows:
    TVA will continue to leverage its role as a leader in innovation 
and economic development for the benefit of the Tennessee Valley 
region. As the wholesale provider of electric power to local power 
companies (LPCs) that distribute TVA power, TVA will serve as a 
catalyst for electric vehicle adoption. TVA will also continue to 
collaborate with LPCs to ensure that affordable energy is available for 
residential, commercial, and public customers consistent with the 
requirements of the TVA Act. The public power model will provide the 
foundation for an improved customer charging experience and competitive 
charging market to expand electric vehicle adoption in the Tennessee 
Valley.

    Dated: April 18, 2024.
    The Executive Vice President, General Counsel & Corporate 
Secretary of Tennessee Valley Authority, David Fountain, having 
reviewed and approved this document, is delegating the authority to 
sign this document to Edward C. Meade, Assistant Corporate 
Secretary, Associate General Counsel, Director of Commercial Law for 
publication in the Federal Register.
Edward C. Meade,
Assistant Corporate Secretary, Associate General Counsel, Director of 
Commercial Law, Tennessee Valley Authority.
[FR Doc. 2024-08917 Filed 4-25-24; 8:45 am]
BILLING CODE 8120-01-P