Revision to Power Marketing Policy Kerr-Philpott System of Projects, 37092-37094 [2020-13106]
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37092
Federal Register / Vol. 85, No. 119 / Friday, June 19, 2020 / Notices
Dated: June 15, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2020–13244 Filed 6–18–20; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
Notice of Effectiveness of Exempt
Wholesale Generator Status
Docket Nos.
Frontier Windpower II, LLC ......
Coyote Wind, LLC ....................
Roundhouse Renewable Energy, LLC.
Oliver Wind II, LLC ...................
Anson Solar Center, LLC .........
Bluestone Farm Solar, LLC ......
Whitehorn Solar LLC ................
Las Majadas Wind Farm, LLC
Milligan 1 Wind LLC .................
King Plains Wind Project, LLC
Johanna Energy Center, LLC ..
Dakota Range III, LLC .............
Triple H Wind Project, LLC ......
Las Lomas Wind Project, LLC
Prairie Hill Wind Project, LLC ..
Mechanicsville Solar, LLC ........
Albemarle Beach Solar, LLC ....
RE Mustang Two Barbaro, LLC
RE Mustang Two Whirlaway,
LLC.
LA3 West Baton Rouge, LLC ...
Yards Creek Energy, LLC ........
Inter-Power/AhlCon Partners,
L.P.
Northern Colorado Wind Energy Center, LLC.
EG20–88–000
EG20–89–000
EG20–90–000
EG20–91–000
EG20–92–000
EG20–93–000
EG20–94–000
EG20–95–000
EG20–96–000
EG20–97–000
EG20–98–000
EG20–99–000
EG20–100–000
EG20–101–000
EG20–102–000
EG20–103–000
EG20–104–000
EG20–105–000
EG20–106–000
EG20–107–000
EG20–108–000
EG20–109–000
EG20–110–000
Take notice that during the month of
May 2020, the status of the abovecaptioned entities as Exempt Wholesale
Generators became effective by
operation of the Commission’s
regulations. 18 CFR 366.7(a) (2019).
Dated: June 15, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2020–13242 Filed 6–18–20; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF ENERGY
Southeastern Power Administration
Revision to Power Marketing Policy
Kerr-Philpott System of Projects
Southeastern Power
Administration, DOE.
ACTION: Notice of proposed revision to
power marketing policy.
khammond on DSKJM1Z7X2PROD with NOTICES
AGENCY:
Pursuant to its Procedure for
Public Participation in the Formulation
of Marketing Policy, published in the
Federal Register of July 6, 1978,
Southeastern Power Administration
SUMMARY:
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17:17 Jun 18, 2020
Jkt 250001
(Southeastern or SEPA) published on
November 15, 2019, a notice of intent to
revise its power marketing policy to
include provisions regarding renewable
energy certificates (RECs) from its KerrPhilpott System of Projects (KerrPhilpott System). The current power
marketing policy was published on July
29, 1985, for the Kerr-Philpott 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 Kerr-Philpott 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 in
Boydton, Virginia, at 1:00 p.m. on
August 18, 2020. Persons desiring to
attend the forum should notify
Southeastern by August 10, 2020, 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 September 2, 2020,
fifteen (15) days after the scheduled
comment forum.
ADDRESSES: Five copies of written
comments should be submitted to:
Herbert R. Nadler, Acting
Administrator, Southeastern Power
Administration, Department of Energy,
1166 Athens Tech Road, Elberton,
Georgia 30635–6711, and emailed to
Comments@sepa.doe.gov. The public
information and comment forum for the
revision of the Kerr-Philpott System
power marketing policy to include
provisions for renewable energy
certificates will be at the U.S. Army
Corps of Engineers, J. H. Kerr Reservoir
Visitor Assistance Center, 1930 Mays
Chapel Road, Boydton, Virginia 23917,
Phone: (434) 738–6143. If travel
restrictions occur due to the COVID–19
pandemic on August 18, 2020, the
comment forum will be held as a
webinar on the same date and time.
Please register your intent to attend,
including name, address, phone
number, and email address, with
Southeastern’s Legal Assistant at
judith.worley@sepa.doe.gov, to receive
updates on the meeting status of the
comment forum. Registered attendees
will be contacted on August 11, 2020,
regarding meeting updates and call-in
information, if held by webinar.
FOR FURTHER INFORMATION CONTACT:
Leon Jourolmon IV, General Counsel,
Southeastern Power Administration,
1166 Athens Tech Road, Elberton, GA
PO 00000
Frm 00033
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Sfmt 4703
30635, (706) 213–3800,
leon.jourolmon@sepa.doe.gov.
SUPPLEMENTARY INFORMATION:
Background: Pursuant to its Procedure
for ‘‘Public Participation in Formulation
of Marketing Policy’’ published in the
Federal Register on July 6, 1978, 43 FR
29186, Southeastern published a
‘‘Notice of Issuance of Final Power
Marketing Policy, Kerr-Philpott System
of Projects’’ in the Federal Register on
July 29, 1985, 50 FR 30751. 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 renewable energy certificates.
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 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 to consumers
consistent with sound business
principles. Rate schedules shall be
drawn to recover all costs associated
with producing and transmitting the
power in accordance with repayment
criteria
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 November 15, 2019, Southeastern
published in the Federal Register, 84 FR
62519, a ‘‘Notice of Intention to begin a
public process’’ to revise its marketing
policy by including provisions
regarding renewable energy certificates
from its Kerr-Philpott System. The
notice requested that written comments
and proposals be submitted on or before
January 14, 2020. All comments
received are summarized and answered
in the following section.
Staff Review of Comments
Written comments were received from
one source, Southeastern Federal Power
Customers, Inc. (SeFPC), and are
summarized below. Southeastern’s
response follows each comment.
Comment 1: Precedential Effect
At the outset, the SeFPC recognizes
that SEPA is only revising the marketing
policy for the Kerr-Philpott system of
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Federal Register / Vol. 85, No. 119 / Friday, June 19, 2020 / Notices
projects. However, the precedent set by
these revisions may apply to other
marketing areas which requires due care
to ensure that the approach adopted by
SEPA can be adopted and modified as
appropriate for other marketing areas.
Moreover, SEPA should explain that the
development of a REC policy and
allocation of RECs to existing customers
does not change the Administrator’s
prior determinations on power
allocations within the marketing area.
Response 1: Southeastern’s proposal
addresses only changes to the KerrPhilpott System marketing policy.
Revisions to other marketing policies
would involve a similar public process
to allow comments from interested
parties. The revision would not change
the Administrator’s prior
determinations regarding power
allocations within the marketing area.
Southeastern recognizes that policy
decisions within the Kerr-Philpott
System may be taken into account in
Southeastern’s development of
subsequent proposals. Southeastern
believes that many of the principles
used may be used in other systems;
however, as Renewable Energy
Certificates are defined on a state-bystate basis with a variety of generation
requirements and reporting systems, a
uniform policy is not possible.
khammond on DSKJM1Z7X2PROD with NOTICES
Comment 2: Eligible Customers
The RECs which will be made
available under this new policy should
be offered to all eligible customers.
Here, we suggest that SEPA clarify that
eligible recipients of RECs are limited to
existing power customers with an
allocation in that specific marketing
area.
Response 2: The Renewable Energy
Certificates for the Kerr-Philpott System
would be distributed to Kerr-Philpott
preference customers based upon the
amount of energy sold to each customer
during a quarterly period.
Comment 3: Flexibility and Optionality
The REC policy adopted by SEPA
must incorporate flexibility to allow for
customers to utilize RECs to the
maximum benefit for each customer. As
a starting premise, SEPA should offer
RECs to each available customer to
determine how to utilize the RECs for
optimum benefit. If a customer declines
to take possession of its REC
entitlement, SEPA should offer to sell
the RECs on behalf of that customer and
credit the customer’s bill accordingly.
Additionally, SeFPC suggests SEPA
offer individual customers the option to
transfer RECs to wholesale power
providers that meet the definition of a
preference customer but are not the
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17:17 Jun 18, 2020
Jkt 250001
counterparty to the power supply
contract with SEPA.
Response 3: The proposal would
allow for flexibility while limiting the
transactional costs for Southeastern.
Customers would be able to accept RECs
directly or designate third-parties to
receive the REC distributions.
Southeastern does not propose to sell
any RECs at this time. Southeastern
reserves the right to distribute RECs that
have been declined at a later date.
Comment 4: Relationship to Laws and
Regulations
SEPA must ensure the revised KerrPhilpott System power marketing policy
adheres to current SEPA regulations and
contracts, as well as current state,
federal, and local laws. Such a practice
will support consistency and clarity
within SEPA’s marketing areas.
Additionally, SeFPC suggests SEPA
work with individual customers to
ensure that RECs sourced from a
particular balancing/marketing area will
be eligible to qualify under state
programs.
Response 4: Southeastern will adhere
to all applicable statutes, regulations,
and contracts. Southeastern will assist
Kerr-Philpott System customers in
gaining value from REC distributions
through state renewable energy
programs by providing data for the
registration of the generating resources
with state programs where applicable.
Comment 5: Term
The REC policy and availability of
RECs should track the term of the power
supply agreements in place with a
power customer. In particular, RECs
should be available for the duration of
the agreement and subject to recall by
SEPA only in the event that the power
customer ceases to buy capacity and
energy from SEPA.
Response 5: The proposal is for a
distribution to preference customers
based upon energy sales during the
prior quarter.
Comment 6: Billing and Costs
Because SEPA will incur no direct
expense in allocating available RECs,
the policy should clarify that RECs are
provided at no cost to requesting
customers. To the extent that a customer
declines to take possession of a REC and
relies on SEPA to sell the REC, a
separate line item should be included
on that customer’s bill setting forth the
benefit received and the costs directly
attributable to sale of RECs for that
particular customer.
Response 6: The administrative costs
to maintain the PJM–GATS membership
and fees for creation and distribution of
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37093
the certificates would be allocated over
the entire Kerr-Philpott System.
Southeastern would not establish any
rate schedules for RECs. Southeastern
would not sell any RECs.
Comment 7: Further Review and
Comment
The recommendations set forth above
provide a general framework for SEPA
to consider in drafting the policy. As the
policy is prepared in a more detailed
format, the SeFPC reserves the right to
provide additional comments and
clarifications to the points raised above.
Response 7: Southeastern will accept
comments from interested parties
including SeFPC and its members until
15 days after the announced Public
Information and Comment Forum.
Written comments must be submitted
on or before September 2, 2020.
Proposed Revision to the Power
Marketing Policy
Kerr-Philpott System: The KerrPhilpott System consists of two projects,
the John H. Kerr Project (Kerr) and the
Philpott Project (Philpott). The power
from the projects is currently marketed
to Preference Customers located in the
service areas of Dominion Energy, Duke
Energy Progress, American Municipal
Power and American Electric Power.
Both projects are located within the
current PJM Interconnection, L.L.C.
(PJM) footprint. Southeastern owns no
transmission assets and is reliant on
PJM transmission resources to deliver
power and energy from the projects. As
such, Southeastern became a PJM
market participant member in 2005.
Southeastern proposes to revise the
Power Marketing Policy for the KerrPhilpott System to include the following
additional provisions for RECs
associated with hydroelectric
generation:
Renewable Energy Certificates: The
Generation Attribute Tracking System
(GATS) of PJM Environmental
Information Services, Inc. (PJM–EIS)
creates and tracks certificates reporting
generation attributes, by generating unit,
for each megawatt-hour (MWh) of
energy produced by registered
generators. PJM–EIS is a wholly-owned
subsidiary of PJM Connext, L.L.C., itself
a subsidiary of PJM. Both the Kerr and
Philpott projects are registered
generators within GATS. 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 GATS
and has an account in which RECs are
collected and tracked for each MWh of
energy produced from Kerr and
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khammond on DSKJM1Z7X2PROD with NOTICES
37094
Federal Register / Vol. 85, No. 119 / Friday, June 19, 2020 / Notices
Philpott. Within GATS, certificates can
be transferred to other GATS subscribers
or to a third-party tracking system.
As defined by the PJM–GATS Terms,
‘‘Certificates’’ refers to a GATS
electronic record of generation data
representing all of the Attributes from
one MWh of electricity generation from
a Generating Unit registered with the
GATS tracking system. The GATS will
create exactly one Certificate per MWh
of generation. 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 proposes distribution of
the GATS-created REC to Preference
Customers with allocations of power
from the Kerr-Philpott System.
REC Distribution: Southeastern shall
maintain an account with GATS and
collect RECs from the generation at the
Kerr and Philpott projects. Southeastern
will verify the total amount of RECs
each month. Preference Customers with
an allocation of power from the KerrPhilpott System are eligible to receive
RECs by transfer from Southeastern’s
GATS account to their GATS account or
that of their agent. GATS (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. Southeastern will
summarize RECs by month for calendar
year, quarterly distribution to customers
through GATS. Southeastern will
determine a total number of RECs to
transfer to each customer based on the
customer’s monthly invoices during the
same three-month period. RECs will be
project-specific based on the customer’s
applicable contractual arrangements.
Thus, customers receiving energy from
Philpott will receive equivalent RECs
from Philpott, and customers receiving
energy from Kerr will receive equivalent
RECs from Kerr.
All RECs distributed by Southeastern
shall be transferred within thirty days of
the end of the calendar year quarter
(quarterly distribution month). Each
customer must submit to Southeastern,
by the tenth day of a quarterly
distribution month, the name, contact
information, and identification number
of the GATS account to which the RECs
are to be transferred initially and for any
quarterly distribution month in which
the account for transfer changes. The
account may be held by a third party.
If the customer fails to designate an
account by the tenth day of the quarterly
distribution month, those RECs shall not
be distributed until the following
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17:17 Jun 18, 2020
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quarter. Any RECs that were not
transferred because a transfer account
was not provided to Southeastern will
be forfeited if they become nontransferable in the GATS Terms of Use
procedures, policies, or definitions of
Reporting and Trading Periods, or any
subsequent rules and procedures for
transfers as established.
The initial transfer process in GATS
will be accomplished by the thirtieth
day after the end of the first completed
calendar year quarter subsequent to
publication of the final policy revision.
Any balance of RECs that exist in
Southeastern’s GATS 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 GATS
subscription, will be incorporated into
marketing costs and included in
recovery through the energy and
capacity rates of the Kerr-Philpott
System.
Signing Authority
This document of the Department of
Energy was signed on June 11, 2020, by
Herbert R. Nadler, Acting
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 June 12,
2020.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2020–13106 Filed 6–18–20; 8:45 am]
BILLING CODE 6450–01–P
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ENVIRONMENTAL PROTECTION
AGENCY
[EPA–HQ–OPP–2020–0052; FRL–10010–85]
Pesticide Product Registration;
Receipt of Applications for New Uses
(May 2020)
Environmental Protection
Agency (EPA).
ACTION: Notice.
AGENCY:
EPA has received applications
to register new uses for pesticide
products containing currently registered
active ingredients. Pursuant to the
Federal Insecticide, Fungicide, and
Rodenticide Act (FIFRA), EPA is hereby
providing notice of receipt and
opportunity to comment on these
applications.
SUMMARY:
Comments must be received on
or before July 20, 2020.
ADDRESSES: Submit your comments,
identified by the docket identification
(ID) number and the File Symbol of the
EPA registration number of interest as
shown in the body of this document, by
one of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
Do not submit electronically any
information you consider to be
Confidential Business Information (CBI)
or other information whose disclosure is
restricted by statute.
• Mail: OPP Docket, Environmental
Protection Agency Docket Center (EPA/
DC), (28221T), 1200 Pennsylvania Ave.
NW, Washington, DC 20460–0001.
• Hand Delivery: To make special
arrangements for hand delivery or
delivery of boxed information, please
follow the instructions at https://
www.epa.gov/dockets/where-sendcomments-epa-dockets.
Please note that due to the public
health emergency the EPA Docket
Center (EPA/DC) and Reading Room
was closed to public visitors on March
31, 2020. Our EPA/DC staff will
continue to provide customer service
via email, phone, and webform. For
further information on EPA/DC services,
docket contact information and the
current status of the EPA/DC and
Reading Room, please visit https://
www.epa.gov/dockets.
FOR FURTHER INFORMATION CONTACT:
Michael Goodis, Registration Division
(7505P), main telephone number: (703)
305–7090, email address:
RDFRNotices@epa.gov. The mailing
address for each contact person is:
Office of Pesticide Programs,
Environmental Protection Agency, 1200
Pennsylvania Ave. NW, Washington, DC
DATES:
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]]>Agencies
[Federal Register Volume 85, Number 119 (Friday, June 19, 2020)]
[Notices]
[Pages 37092-37094]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13106]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Southeastern Power Administration
Revision to Power Marketing Policy Kerr-Philpott System of
Projects
AGENCY: Southeastern Power Administration, DOE.
ACTION: Notice of proposed revision to power marketing policy.
-----------------------------------------------------------------------
SUMMARY: Pursuant to its Procedure for Public Participation in the
Formulation of Marketing Policy, published in the Federal Register of
July 6, 1978, Southeastern Power Administration (Southeastern or SEPA)
published on November 15, 2019, a notice of intent to revise its power
marketing policy to include provisions regarding renewable energy
certificates (RECs) from its Kerr-Philpott System of Projects (Kerr-
Philpott System). The current power marketing policy was published on
July 29, 1985, for the Kerr-Philpott 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 Kerr-Philpott 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 in Boydton,
Virginia, at 1:00 p.m. on August 18, 2020. Persons desiring to attend
the forum should notify Southeastern by August 10, 2020, 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 September 2, 2020,
fifteen (15) days after the scheduled comment forum.
ADDRESSES: Five copies of written comments should be submitted to:
Herbert R. Nadler, Acting 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 Kerr-Philpott
System power marketing policy to include provisions for renewable
energy certificates will be at the U.S. Army Corps of Engineers, J. H.
Kerr Reservoir Visitor Assistance Center, 1930 Mays Chapel Road,
Boydton, Virginia 23917, Phone: (434) 738-6143. If travel restrictions
occur due to the COVID-19 pandemic on August 18, 2020, the comment
forum will be held as a webinar on the same date and time. Please
register your intent to attend, including name, address, phone number,
and email address, with Southeastern's Legal Assistant at
[email protected], to receive updates on the meeting status of
the comment forum. Registered attendees will be contacted on August 11,
2020, regarding meeting updates and call-in information, if held by
webinar.
FOR FURTHER INFORMATION CONTACT: Leon Jourolmon IV, General Counsel,
Southeastern Power Administration, 1166 Athens Tech Road, Elberton, GA
30635, (706) 213-3800, [email protected].
SUPPLEMENTARY INFORMATION: Background: Pursuant to its Procedure for
``Public Participation in Formulation of Marketing Policy'' published
in the Federal Register on July 6, 1978, 43 FR 29186, Southeastern
published a ``Notice of Issuance of Final Power Marketing Policy, Kerr-
Philpott System of Projects'' in the Federal Register on July 29, 1985,
50 FR 30751. 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 renewable energy
certificates. 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 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 to
consumers consistent with sound business principles. Rate schedules
shall be drawn to recover all costs associated with producing and
transmitting the power in accordance with repayment criteria
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 November 15, 2019, Southeastern published in the Federal
Register, 84 FR 62519, a ``Notice of Intention to begin a public
process'' to revise its marketing policy by including provisions
regarding renewable energy certificates from its Kerr-Philpott System.
The notice requested that written comments and proposals be submitted
on or before January 14, 2020. All comments received are summarized and
answered in the following section.
Staff Review of Comments
Written comments were received from one source, Southeastern
Federal Power Customers, Inc. (SeFPC), and are summarized below.
Southeastern's response follows each comment.
Comment 1: Precedential Effect
At the outset, the SeFPC recognizes that SEPA is only revising the
marketing policy for the Kerr-Philpott system of
[[Page 37093]]
projects. However, the precedent set by these revisions may apply to
other marketing areas which requires due care to ensure that the
approach adopted by SEPA can be adopted and modified as appropriate for
other marketing areas. Moreover, SEPA should explain that the
development of a REC policy and allocation of RECs to existing
customers does not change the Administrator's prior determinations on
power allocations within the marketing area.
Response 1: Southeastern's proposal addresses only changes to the
Kerr-Philpott System marketing policy. Revisions to other marketing
policies would involve a similar public process to allow comments from
interested parties. The revision would not change the Administrator's
prior determinations regarding power allocations within the marketing
area. Southeastern recognizes that policy decisions within the Kerr-
Philpott System may be taken into account in Southeastern's development
of subsequent proposals. Southeastern believes that many of the
principles used may be used in other systems; however, as Renewable
Energy Certificates are defined on a state-by-state basis with a
variety of generation requirements and reporting systems, a uniform
policy is not possible.
Comment 2: Eligible Customers
The RECs which will be made available under this new policy should
be offered to all eligible customers. Here, we suggest that SEPA
clarify that eligible recipients of RECs are limited to existing power
customers with an allocation in that specific marketing area.
Response 2: The Renewable Energy Certificates for the Kerr-Philpott
System would be distributed to Kerr-Philpott preference customers based
upon the amount of energy sold to each customer during a quarterly
period.
Comment 3: Flexibility and Optionality
The REC policy adopted by SEPA must incorporate flexibility to
allow for customers to utilize RECs to the maximum benefit for each
customer. As a starting premise, SEPA should offer RECs to each
available customer to determine how to utilize the RECs for optimum
benefit. If a customer declines to take possession of its REC
entitlement, SEPA should offer to sell the RECs on behalf of that
customer and credit the customer's bill accordingly. Additionally,
SeFPC suggests SEPA offer individual customers the option to transfer
RECs to wholesale power providers that meet the definition of a
preference customer but are not the counterparty to the power supply
contract with SEPA.
Response 3: The proposal would allow for flexibility while limiting
the transactional costs for Southeastern. Customers would be able to
accept RECs directly or designate third-parties to receive the REC
distributions. Southeastern does not propose to sell any RECs at this
time. Southeastern reserves the right to distribute RECs that have been
declined at a later date.
Comment 4: Relationship to Laws and Regulations
SEPA must ensure the revised Kerr-Philpott System power marketing
policy adheres to current SEPA regulations and contracts, as well as
current state, federal, and local laws. Such a practice will support
consistency and clarity within SEPA's marketing areas. Additionally,
SeFPC suggests SEPA work with individual customers to ensure that RECs
sourced from a particular balancing/marketing area will be eligible to
qualify under state programs.
Response 4: Southeastern will adhere to all applicable statutes,
regulations, and contracts. Southeastern will assist Kerr-Philpott
System customers in gaining value from REC distributions through state
renewable energy programs by providing data for the registration of the
generating resources with state programs where applicable.
Comment 5: Term
The REC policy and availability of RECs should track the term of
the power supply agreements in place with a power customer. In
particular, RECs should be available for the duration of the agreement
and subject to recall by SEPA only in the event that the power customer
ceases to buy capacity and energy from SEPA.
Response 5: The proposal is for a distribution to preference
customers based upon energy sales during the prior quarter.
Comment 6: Billing and Costs
Because SEPA will incur no direct expense in allocating available
RECs, the policy should clarify that RECs are provided at no cost to
requesting customers. To the extent that a customer declines to take
possession of a REC and relies on SEPA to sell the REC, a separate line
item should be included on that customer's bill setting forth the
benefit received and the costs directly attributable to sale of RECs
for that particular customer.
Response 6: The administrative costs to maintain the PJM-GATS
membership and fees for creation and distribution of the certificates
would be allocated over the entire Kerr-Philpott System. Southeastern
would not establish any rate schedules for RECs. Southeastern would not
sell any RECs.
Comment 7: Further Review and Comment
The recommendations set forth above provide a general framework for
SEPA to consider in drafting the policy. As the policy is prepared in a
more detailed format, the SeFPC reserves the right to provide
additional comments and clarifications to the points raised above.
Response 7: Southeastern will accept comments from interested
parties including SeFPC and its members until 15 days after the
announced Public Information and Comment Forum. Written comments must
be submitted on or before September 2, 2020.
Proposed Revision to the Power Marketing Policy
Kerr-Philpott System: The Kerr-Philpott System consists of two
projects, the John H. Kerr Project (Kerr) and the Philpott Project
(Philpott). The power from the projects is currently marketed to
Preference Customers located in the service areas of Dominion Energy,
Duke Energy Progress, American Municipal Power and American Electric
Power. Both projects are located within the current PJM
Interconnection, L.L.C. (PJM) footprint. Southeastern owns no
transmission assets and is reliant on PJM transmission resources to
deliver power and energy from the projects. As such, Southeastern
became a PJM market participant member in 2005.
Southeastern proposes to revise the Power Marketing Policy for the
Kerr-Philpott System to include the following additional provisions for
RECs associated with hydroelectric generation:
Renewable Energy Certificates: The Generation Attribute Tracking
System (GATS) of PJM Environmental Information Services, Inc. (PJM-EIS)
creates and tracks certificates reporting generation attributes, by
generating unit, for each megawatt-hour (MWh) of energy produced by
registered generators. PJM-EIS is a wholly-owned subsidiary of PJM
Connext, L.L.C., itself a subsidiary of PJM. Both the Kerr and Philpott
projects are registered generators within GATS. 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 GATS and has an account in which RECs
are collected and tracked for each MWh of energy produced from Kerr and
[[Page 37094]]
Philpott. Within GATS, certificates can be transferred to other GATS
subscribers or to a third-party tracking system.
As defined by the PJM-GATS Terms, ``Certificates'' refers to a GATS
electronic record of generation data representing all of the Attributes
from one MWh of electricity generation from a Generating Unit
registered with the GATS tracking system. The GATS will create exactly
one Certificate per MWh of generation. 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 proposes distribution of the GATS-created REC to
Preference Customers with allocations of power from the Kerr-Philpott
System.
REC Distribution: Southeastern shall maintain an account with GATS
and collect RECs from the generation at the Kerr and Philpott projects.
Southeastern will verify the total amount of RECs each month.
Preference Customers with an allocation of power from the Kerr-Philpott
System are eligible to receive RECs by transfer from Southeastern's
GATS account to their GATS account or that of their agent. GATS (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. Southeastern will summarize RECs by month for calendar year,
quarterly distribution to customers through GATS. Southeastern will
determine a total number of RECs to transfer to each customer based on
the customer's monthly invoices during the same three-month period.
RECs will be project-specific based on the customer's applicable
contractual arrangements. Thus, customers receiving energy from
Philpott will receive equivalent RECs from Philpott, and customers
receiving energy from Kerr will receive equivalent RECs from Kerr.
All RECs distributed by Southeastern shall be transferred within
thirty days of the end of the calendar year quarter (quarterly
distribution month). Each customer must submit to Southeastern, by the
tenth day of a quarterly distribution month, the name, contact
information, and identification number of the GATS account to which the
RECs are to be transferred initially and for any quarterly distribution
month in which the account for transfer changes. The account may be
held by a third party. If the customer fails to designate an account by
the tenth day of the quarterly distribution month, those RECs shall not
be distributed until the following quarter. Any RECs that were not
transferred because a transfer account was not provided to Southeastern
will be forfeited if they become non-transferable in the GATS Terms of
Use procedures, policies, or definitions of Reporting and Trading
Periods, or any subsequent rules and procedures for transfers as
established.
The initial transfer process in GATS will be accomplished by the
thirtieth day after the end of the first completed calendar year
quarter subsequent to publication of the final policy revision. Any
balance of RECs that exist in Southeastern's GATS 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 GATS subscription, will be incorporated into marketing costs and
included in recovery through the energy and capacity rates of the Kerr-
Philpott System.
Signing Authority
This document of the Department of Energy was signed on June 11,
2020, by Herbert R. Nadler, Acting 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 June 12, 2020.
Treena V. Garrett,
Federal Register Liaison Officer, U.S. Department of Energy.
[FR Doc. 2020-13106 Filed 6-18-20; 8:45 am]
BILLING CODE 6450-01-P
