60-Minute Response (60 MR)

60 MR is an interruptible overlay. The overlay amends the standard contract and applicable rate schedule by adding 60 MR pricing and interruption arrangements.

Customers with the following load characteristics may qualify for 60 MR:

• Contract demand greater than 1,000 kW at a single delivery point;

• An average monthly load factor greater than 40 percent;

• A minimum of 500 kW of Effective Interruptible Demand (EID is the projected demand amount expected to be available for interruption).

When notified of a suspension, the customer must reduce load to a protected load level. The protected load level is the demand level that customers reduce load to upon 60 minutes’ notice when called upon for a suspension of 60 MR availability.

TVA will not necessarily interrupt all 60 MR customers at the same time; suspensions of availability may be implemented on a rotational basis and/or “system area of reliability need” basis.

All products with a 60-minute notice, including 60 MR, will be subject to a program limit of 1,000 MW EID, which will be available on a “first come – first served” basis.

The overlay term is five years and can be terminated by any party on or after the third anniversary of the overlay on at least two years notice. (The underlying firm power contract term can be no shorter than the minimum term required for 60 MR).

• Up to 100 percent of a customer’s contract demand may be eligible for a 60 MR overlay.
• A $1.70 per kW participation credit will be paid for 60 MR demand in any month the customer’s total load factor exceeds 50 percent.
• 60 MR customers will also be eligible for all other credits for which their underlying load also qualifies.
• During a 60 MR overlay, customers will not be responsible for TVA’s portion of the demand ratchet minimum bill on the 60 MR portion of their load (said TVA portion being determined per Adjustment 3 of the Wholesale Power Rate Schedule).
• Customers will incur a credit reduction charge for failure to fully to reduce load in accordance with the contract.
• Customers will pay an administrative charge of $700 per month.

Upon 60 days’ notice and no more than once per 12-month period, TVA may adjust the credit amount, credit reduction charge amount, and administrative charge amount.

Use of a 5-minute interval demand meter is required.

Customers must submit a load reduction plan and update it annually. Customers will be required to demonstrate their load reduction plan within 2 years of subscribing to the program.

Customers that have not demonstrated their load reduction plan will pay a higher credit reduction charge for non-compliance and may be removed from the 60 MR program if less than 100 percent compliant.