[Federal Register: January 30, 2006 (Volume 71, Number 19)]
[Notices]
[Page 4904-4905]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ja06-41]
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DEPARTMENT OF ENERGY
Study of the Potential Benefits of Distributed Generation
AGENCY: National Energy Technology Laboratory, U.S. Department of
Energy.
ACTION: Notice of inquiry and request for public comment.
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SUMMARY: The Distributed Energy Program from the Department of Energy's
(DOE) Office of Electricity Delivery and Energy Reliability (OE) is
seeking public input for a study of the potential benefits of
distributed generation required by section 1817 of the Energy Policy
Act of 2005. DOE invites interested parties to relate experiences,
convey data, communicate results of case studies or analyses, or
provide other information pertaining to the planning, installation,
commissioning and operation of distributed energy systems as outlined
below.
DATES: Comments, reports, case studies and other information offered in
response to this Notice shall be received no later than February 23,
2006 at any of the addresses listed in the ADDRESSES section.
ADDRESSES: Interested parties are invited to submit comments
electronically (using Adobe[supreg] Acrobat[supreg] or
Microsoft[supreg] Word formats) or in hard copy. Submissions should
include a cover page containing the commenter's name, affiliation,
telephone number, mailing address, and e-mail address. DOE will
consider all comments received.
Comments prepared in electronic formats may be submitted directly,
via the Web at: http://www.dg1817report.org Links to this Web page may also be found on the OE Web site: http://www.electricity.doe.gov., or
r
the NETL Web site: http://www.netl.doe.gov. Written submissions may
also be sent by regular mail to: Mario Sciulli, U.S. Department of
Energy, National Energy Technology Laboratory, PO Box 10940, MS 922-
342C, Pittsburgh, PA 15236; or by e-mail to:
mario.sciulli@netl.doe.gov.
FOR FURTHER INFORMATION CONTACT: Mario Sciulli, U.S. Department of
Energy, National Energy Technology Laboratory, PO Box 10940, MS 922-
342C, Pittsburgh, PA 15236, e-mail address: mario.sciulli@netl.doe.gov.
Information offered by commenters in response to this Notice will be
available for public inspection at the Department of Energy, Freedom of
Information Reading Room, Room 1E-190, 1000 Independence Avenue, SW.,
Washington, DC 20585 between the hours of 9 a.m. and 4 p.m. Monday
through Friday, except for holidays.
SUPPLEMENTARY INFORMATION:
I. Background.
Section 1817 of the Energy Policy Act of 2005 (EPAct 2005) requires
DOE to conduct a study in consultation with the Federal Energy
Regulatory Commission (FERC) of the potential benefits of cogeneration
and small power production. The Electricity Modernization Act Sec.
1817, 119 Stat. 594, 1130 (2005). This study will encompass various
forms of distributed energy technologies, ranging from those that
produce only electricity to those that produce a combination of heat
and power (CHP), installed at or near the point of use.
The first component of the DOE study will analyze potential
benefits associated with expanded utilization of distributed energy
technologies. For purposes of this Notice the terms ``distributed
generation'' (DG), ``cogeneration'' and ``small power production'' are
synonymous.\1\ Specific
[[Page 4905]]
case studies will be evaluated to gauge the impact of regulatory
mandates, tariffs, rate structures and similar policies on the
proliferation of DG, CHP systems and other distributed energy
technologies. The second component of the DOE study will address the
rate-related issues ``that may impede or otherwise discourage the
expansion of'' distributed energy technologies. Id. section 1817(a)(3).
II. Questions for Public Comment and Request for Data
To aid in conducting this study, DOE requests public input/comment
that addresses the two issues discussed below.
A. Potential Benefits
In accordance with section 1817 of EPAct 2005, this study will
attempt to identify, discuss and quantify benefits that are received
directly or indirectly by three classes of recipients: ``(i) * * *
electricity distribution or transmission service provider[s]; (ii)
other customers served by an electricity distribution or transmission
service provider; and (iii) the general public in the area served by
the public utility in which the cogenerator or small power producer is
located.'' Id. section 1817(a)(1)(B)(i)-(iii).
In analyzing the potential benefits of DG, CHP and other
distributed energy technologies, the study will focus on the following
areas:
(i) Dynamics of the electric system (grid) including reliability in
terms of outages (seconds to hours), power quality (microseconds), and
ancillary services (including reactive power or volt-amperes reactive);
(ii) Economic ramifications of distributed energy technologies,
including reduction of peak power requirements due to on-site
generation (based on distribution feeder load duration curves), offsets
to investments in generation, transmission or distribution facilities
that would otherwise be recovered through rates, and diminished land
use effects and rights-of-way acquisitions; and
(iii) Physical security and emergency supply of power, including
reducing vulnerability of a system to terrorism.
To accomplish this aspect of the study, DOE requests case studies,
analyses, or reports valuing these potential benefits under varying
circumstances for individual DG, CHP and other distributed energy
technologies.
B. Rate-Related Impediments
Subsection 1817(a) of EPAct 2005 states that DOE's study must
include, among other things, an analysis of rate-related issues that
``may impede or otherwise discourage the expansion of cogeneration and
small power production facilities.'' Id. Section 1817(a)(2)(B). To
evaluate rate-related impediments that may hinder or otherwise
discourage the expansion of DG, CHP systems and other distributed
energy technologies, this study will analyze whether rates, rules,
tariffs, or other requirements imposed on such installations are
comparable to rates imposed on other customers of the same class that
do not have distributed energy facilities. For this portion of the
study, DOE requests public comment (in the form of case studies or
similar information) depicting the effect of rate-related issues on the
planning, financing, installation, commissioning or operation of DG,
CHP and other distributed energy technologies.
III. Public Participation
A. Report
DOE will make the draft report available to the public and provide
an opportunity for interested parties to submit written comments on the
initial conclusions reached by the study. Following the public review
period, DOE will subsequently present the results of the study to the
President and Congress not later than February 8, 2007, and will
thereafter publish a final report.
B. Submission of Comments
DOE requests written comments from interested parties on all
aspects of the study required by section 1817. DOE is especially
interested in receiving written comments from persons with particular
knowledge of the legal, economic and technical elements related to the
benefits and rate-related issues concerning DG, CHP and other
distributed energy technologies. Any information submitted to DOE,
however, should not contain confidential, proprietary or business
sensitive data.
Issued in Washington, DC, on January 24, 2006.
Kevin Kolevar,
Director, Office of Electricity Delivery and Energy Reliability, U.S.
Department of Energy.
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\1\ The term ``cogeneration facility'' typically describes a
facility that produces electric and/or thermal energy independent of
or interconnected to the local electricity supplier (grid). 16
U.S.C. 796(18)(A). Similarly, ``small power production facility''
usually refers to a facility that produces less than 80 megawatts of
electricity. Id.
Section 796(17)(A). ``Distributed generation'' (DG) generally
applies to energy systems that produce electricity and/or thermal
energy at or near the point of use.
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[FR Doc. E6-1096 Filed 1-27-06; 8:45 am]
BILLING CODE 6450-01-P