[Federal Register Volume 74, Number 121 (Thursday, June 25, 2009)]
[Notices]
[Pages 30360-30361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-14990]


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TENNESSEE VALLEY AUTHORITY


Energy Efficiency and Smart Grid Standards

AGENCY: Tennessee Valley Authority.

ACTION: Notice of consideration of energy efficiency and Smart Grid 
standards

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SUMMARY: By a Notice in the Federal Register (73 FR 76736, December 16, 
2008), the Tennessee Valley Authority (TVA) initially requested 
comments on certain standards that TVA is considering adopting for 
itself and the distributors of TVA power pertaining to certain energy 
efficiency and Smart Grid standards. The standards being considered are 
Integrated Resource Planning, Rate Design Modifications to Promote 
Energy Efficiency Investments, Consideration of Smart Grid Investments, 
and Smart Grid Information listed in section 111(d) of the Public 
Utility Regulatory Policies Act of 1978 (Pub. L. 95-617) as amended by 
the Energy Independence and Security Act of 2007 (Pub. L. 110-140). TVA 
staff has developed a report that reviews each standard and makes a 
preliminary recommendation with respect to each standard. TVA has 
posted the report on the TVA Web site (http://www.tva.com/purpa). The 
standards will be considered on the basis of their effect on 
conservation of energy, efficient use of facilities and resources, 
equity among electric consumers, and the objectives of the Tennessee 
Valley Authority Act. As part of the process of considering the 
standards, comments are requested from the public on the TVA staff 
report. TVA is also extending the comment period on the standards 
themselves, which are set out below.

DATES: All comments on the TVA staff report and these standards must be 
received by July 27, 2009. Written comments may be mailed to: Veenita 
Bisaria, Tennessee Valley Authority, 400 W. Summit Hill Drive, WT3D-K, 
Knoxville, TN 37902, (865) 632-3939. Comments may also be submitted via 
the Web, at http://www.tva.com/purpa.

FOR FURTHER INFORMATION CONTACT: Veenita Bisaria, Tennessee Valley 
Authority (contact information above).

SUPPLEMENTARY INFORMATION: On the standards being considered, the 
Public Utility Regulatory Policies Act of 1978 (Pub. L. 95-617) as 
amended by the Energy Independence and Security Act of 2007 (Pub. L. 
110-140) requires that TVA consider these standards. Accordingly, data, 
views, and comments are requested from the public on the four standards 
set out below, as well as on the TVA staff report. Comments on 
variations in any of the standards, as well as views for or against 
their adoption are welcome. These standards are being presented in 
order to obtain the public's views on the need and desirability of such 
standards. Determinations on the appropriateness of the standards will 
be made by the TVA Board of Directors for TVA and the distributors of 
TVA power.
    Standards: The standards upon which comments are requested about 
which a determination will be made are:
    (1) Integrated Resource Planning.--
    Each electric utility shall--
    (A) Integrate energy efficiency resources into utility, State, and 
regional plans; and
    (B) Adopt policies establishing cost-effective energy efficiency as 
a priority resource.
    (2) Rate Design Modifications to Promote Energy Efficiency 
Investments.--
    (A) In General.--The rates allowed to be charged by any electric 
utility shall--
    (i) Align utility incentives with the delivery of cost-effective 
energy efficiency; and
    (ii) Promote energy efficiency investments.
    (B) Policy Options.--In complying with subparagraph (A), each State 
regulatory authority and each non-regulated utility shall consider--
    (i) Removing the throughput incentive and other regulatory and 
management disincentives to energy efficiency;
    (ii) Providing utility incentives for the successful management of 
energy efficiency programs;
    (iii) Including the impact on adoption of energy efficiency as one 
of the goals

[[Page 30361]]

of retail rate design, recognizing that energy efficiency must be 
balanced with other objectives;
    (iv) Adopting rate designs that encourage energy efficiency for 
each customer class;
    (v) Allowing timely recovery of energy efficiency-related costs; 
and
    (vi) Offering home energy audits, offering demand response 
programs, publicizing the financial and environmental benefits 
associated with making home energy efficiency improvements, and 
educating homeowners about all existing Federal and State incentives, 
including the availability of low-cost loans, that make energy 
efficiency improvements more affordable.
    (3) Consideration of Smart Grid Investments.--
    (A) In General.--Each State shall consider requiring that, prior to 
undertaking investments in nonadvanced grid technologies, an electric 
utility of the State demonstrate to the State that the electric utility 
considered an investment in a qualified smart grid system based on 
appropriate factors, including--
    (i) Total costs;
    (ii) Cost-effectiveness;
    (iii) Improved reliability;
    (iv) Security;
    (v) System performance; and
    (vi) Societal benefit.
    (B) Rate Recovery.--Each State shall consider authorizing each 
electric utility of the State to recover from ratepayers any capital, 
operating expenditure, or other costs of the electric utility relating 
to the deployment of a qualified smart grid system, including a 
reasonable rate of return on the capital expenditures of the electric 
utility for the deployment of the qualified smart grid system.
    (C) Obsolete Equipment.--Each State shall consider authorizing any 
electric utility or other party of the State to deploy a qualified 
smart grid system to recover in a timely manner the remaining book-
value costs of any equipment rendered obsolete by the deployment of the 
qualified smart grid system, based on the remaining depreciable life of 
the obsolete equipment.
    (4) Smart Grid Information.--
    (A) Standard.--All electricity purchasers shall be provided direct 
access, in written or electronic machine-readable form as appropriate, 
to information from their electricity provider as provided in 
subparagraph (B).
    (B) Information.--Information provided under this section, to the 
extent practicable, shall include:
    (i) Prices.--Purchasers and other interested persons shall be 
provided with information on (I) time-based electricity prices in the 
wholesale electricity market; and (II) time-based electricity retail 
prices or rates that are available to the purchasers.
    (ii) Usage.--Purchasers shall be provided with the number of 
electricity units, expressed in kwh, purchased by them.
    (iii) Intervals and projections.--Updates of information on prices 
and usage shall be offered on not less than a daily basis, shall 
include hourly price and use information, where available, and shall 
include a day-ahead projection of such price information to the extent 
available.
    (iv) Sources.--Purchasers and other interested persons shall be 
provided annually with written information on the sources of the power 
provided by the utility, to the extent it can be determined, by type of 
generation, including greenhouse gas emissions associated with each 
type of generation, for intervals during which such information is 
available on a cost-effective basis.
    (C) Access.--Purchasers shall be able to access their own 
information at any time through the Internet and on other means of 
communication elected by that utility for Smart Grid applications. 
Other interested persons shall be able to access information not 
specific to any purchaser through the Internet. Information specific to 
any purchaser shall be provided solely to that purchaser.
    Procedures: Written data, views, and comments on the standards and 
the TVA staff report are requested from the public. All material 
relating to the standards or TVA staff report must be received by 5 
p.m. EST on July 27, 2009. All materials received by TVA before this 
designated time will be considered by TVA. The TVA staff report, and 
comments on the report concerning the standards, will also be made part 
of the official record. In order to assist interested consumers in 
preparing written data, views, and comments for the record, TVA 
operates a Web site (http://www.tva.com/purpa) on which interested 
parties can be informed about the standards set out in this notice and 
on which interested parties can access the TVA staff report and submit 
comments and materials on the standards or the report. The official 
record will consist of the TVA staff report and all comments and 
materials submitted electronically and all written materials submitted 
within the time set forth above. A summary of the record will be 
prepared by TVA staff and will be transmitted to the TVA Board of 
Directors along with the complete record. The record will be used by 
the Board in making the determinations required by section 111(d) of 
the Public Utility Regulatory Policies Act of 1978 (Pub. L. 95-617) as 
amended by the Energy Independence and Security Act of 2007 (Pub. L. 
110-140) and in fulfilling its obligation under the Tennessee Valley 
Authority Act. Individual copies of the record will be available to the 
public at cost of reproduction. Copies will also be kept on file for 
public inspection at the following locations: Tennessee Valley 
Authority, 400 W. Summit Hill Drive, WT3D-K, Knoxville, TN 37902, and 
on the Web at http://www.tva.com/purpa.

    Dated: June 19, 2009.
Maureen H. Dunn,
Executive Vice President and General Counsel.
[FR Doc. E9-14990 Filed 6-24-09; 8:45 am]
BILLING CODE 8120-08-P