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Notice of Determinations on the Demand Response and Electric Vehicle Standards Publication: Federal Register Agency: Tennessee Valley Authority Byline: Edward C. Meade Date: 26 April 2024 Subjects: American Government  , Electric Vehicles
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[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