TVA Restarts Distributed Generation PIlot Program

The Tennessee Valley Authority has resumed enrollments in its Generation Partners pilot program for renewable electricity projects of up to one megawatt (MW) in generation capacity to help encourage the development of solar, wind and other non-traditional electricity sources.

TVA briefly held up new Generation Partner enrollment in June to
adjust to overwhelming customer response and develop a plan for
addressing the large number of projects proposed. The surge in
applications came in April after TVA began approving participation in
advance to make it easier for customers to finance projects.

TVA recently resumed enrollment of projects of 200 kilowatts or less.
Under the announced changes, qualifying solar, wind, biomass
or hydroelectric projects of up to 999 kilowatts will be eligible for
the Generation Partners incentives, which include a $1,000 payment to
offset startup costs. In addition, TVA will buy 100% of the green power
that participants produce, paying the retail rate, plus any fuel cost
adjustment, and a premium per kilowatt-hour, depending on the type of
renewable energy produced.

TVA said it will process all participation agreements submitted by Aug. 31 for qualifying systems from 201 kilowatts up to 999 kilowatts.

The existing pilot project will remain in place for systems of up to 200 kilowatts or less. TVA also will extend the deadline to install approved projects from six months to one year for all systems larger than 200 kilowatts.

After these adjustments are in place, longer-term modifications will be considered to accommodate ongoing growth and interest in projects greater than 200 kilowatts.

"TVA is responding rapidly to fulfill the commitments we have made in
recent months to the distributors and developers seeking to participate
in Generation Partners," said John Trawick, senior vice president for
Commercial Operations and Pricing.

The Tennessee Valley Authority, a corporation owned by the U.S. government, provides electricity for utility and business customers in most of Tennessee and parts of Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia–an area of 80,000 square miles with a population of 9 million.

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