FR Doc 05-12063

[Federal Register: June 20, 2005 (Volume 70, Number 117)]
[Rules and Regulations]
[Page 35372-35375]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20jn05-3]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 34 and 131

[Docket No. RM05-11-000; Order No. 657]

Electronic Filing of the Application for Authorization for the
Issuance of Securities or the Assumption of Liabilities

May 27, 2005.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) is
amending its regulations to provide for electronic filing of
Applications for Authorization for the Issuance of Securities or the
Assumption of Liabilities. The Commission is making these changes as
part of its effort to modernize its reporting and filing requirements
and to eliminate unnecessary filing burdens for those entities that
file applications or reports with the Commission pursuant to 18 CFR
part 34. The proposed revisions will reduce the Commission's and the
respondent's costs by allowing the submission of financial information
in electronic format in lieu of the present hard copy format; the type
of financial data that jurisdictional entities submit in this
application is already routinely stored in electronic format, making
hard copy filing of such information burdensome. In this Final Rule the
Commission continues to move toward electronic filing, as the
Government Paperwork Elimination Act mandates.
The modifications in this Final Rule are the result of a review
conducted by the Commission's Information Assessment Team (FIAT),
identifying the Commission's current information collections,
evaluating their original purposes and current uses, and proposing ways
to reduce the reporting burden on industry through the elimination,
reduction, streamlining or reformatting of current collections.

EFFECTIVE DATE: The rule will become effective at the time of the next
e-filing release during the Commission's next fiscal year, i.e., no
earlier than October

[[Page 35373]]

1, 2005. The Commission will publish an announcement of the effective
date in the Federal Register.

FOR FURTHER INFORMATION CONTACT:
Patricia Morris (Technical Information), Office of Market Oversight and
Investigation, Federal Energy Regulatory Commission, 888 First Street,
NE., Washington, DC 20426, (202) 502-8730.
Michael Donnini (Technical Information), Office of Markets, Tariffs and
Rates, 888 First Street, NE., Washington, DC 20426, (202) 502-8982.
Joseph C. Lynch (Legal Information), Office of the General Counsel,
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, (202) 502-8497.

SUPPLEMENTARY INFORMATION:

Before Commissioners: Pat Wood, III, Chairman; Nora Mead Brownell,
Joseph T. Kelliher, and Suedeen G. Kelly.

I. Introduction

1. This Final Rule revises the Commission's regulations found in 18
CFR part 34 and part 131 to require the electronic filing of
Applications for Authorization for the Issuance of Securities or the
Assumption of Liabilities (FERC-523). The filing is now made entirely
in paper format. Commencing with the Commission's next e-filing
release, which is presently slated to occur in the Commission's next
fiscal year, i.e., no earlier than October 1, 2005, there will be no
further requirement for paper filings. Instead, jurisdictional entities
will submit their filings in electronic format.
2. This rulemaking yields significant benefits to the respondents
and the Commission. These benefits include a reduction in filers'
printing and handling costs and a reduction in the Commission's
processing and maintenance costs. The move to electronic filing also
helps achieve the Commission's goal of vigilant oversight by providing
the Commission with more timely and usable information.

II. Background

3. Under Federal Power Act (FPA) section 204, 16 U.S.C. 824c, no
public utility or licensee shall issue any security, or assume any
obligation or liability as guarantor, endorser, surety, or otherwise in
respect of any security of another person, unless and until, upon
application by the public utility, the Commission by order authorizes
the issuance of the securities or the assumption of the liability. The
Commission implements this statute through its regulations, which are
found at 18 CFR part 34; sections 131.43 and 131.50 of 18 CFR part 131
prescribe the required format for the filings.
4. FERC-523 collects the following: a description of the securities
that the company proposes to issue, the purpose of the securities,
whether or not the company will file any part of the application with
any state, a detailed statement of the facts upon which the applicant
relies, a statement of the bond indentures or other limitations on
interest and dividend coverage, the effects of such limitations on the
issuance of additional debt or equity securities, and a brief statement
of any rate changes made effective during the subject period. The
Commission uses this information to determine whether to approve an
application for authorization to issue securities or to assume an
obligation or liability by the public utilities and their licensees who
make these applications. The Commission receives about sixty
applications annually.

III. Discussion

5. In this Final Rule, the Commission is eliminating the
requirement to make paper submissions of FERC-523, and to substitute a
requirement to file FERC-523 electronically.
6. Current filing regulations for FERC-523 require the respondents
to make paper submissions, which the Commission then scans into its
document management system (the Commission's Electronic Library
(eLibrary)). The scanned filing is converted to PDF format. Those
wishing to view the filed information can access and view it through
eLibrary; all publicly-available documents are viewable in eLibrary.
Currently, most of the FERC-523 submissions, while filed as hardcopy,
are originally created by electronic means and are thus already in an
electronic format. Allowing submitters to ``eFile'' reduces the burden
of converting an electronic document into a paper submission which the
Commission then converts back to an electronic document; and eliminates
the cost of sending paper submissions, the Commission's elimination of
the FERC-523 paper submissions should benefit those making such filings
and should not have an adverse impact on information users.
7. This Final Rule is part of the Commission's efforts to revise
and streamline its existing reporting requirements, reduce the filing
burden on reporting companies, and meet the requirements of the
Government Paperwork Elimination Act of 1998, 44 U.S.C. 35.

IV. Information Collection Statement

8. The Office of Management and Budget's (OMB) regulations require
OMB to approve certain information collection requirements imposed by
agency rule.\1\ Comments are solicited on the Commission's need for
this information, whether the information will have practical utility,
the accuracy of the provided burden estimates, ways to enhance the
quality, utility and clarity of the information to be collected, and
any suggested methods for minimizing respondents' burden, including the
use of automated information techniques.
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\1\ 5 CFR 1320.11.
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V. Estimated Annual Burden

9. The current reporting burden for this information collection is
as follows:

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Number of
Data collection Number of Number of hours per Total annual
respondents responses response hours
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FERC-523........................................ 60 1 110 6,600
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Totals...................................... .............. .............. .............. 6,600
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The Commission expects a burden reduction of 22 hours per response
as a result of the electronic filing implementation. This reduces total
annual hours to 5,280, a reduction of 1320 hours annually.
Title: Application for Authorization of the Issuance of Securities
or the Assumption of Liabilities (FERC-523).

[[Page 35374]]

Action: Electronic Filing of Information.
OMB Control No. 1902-0043.
Respondents: Businesses or other for profit.
Frequency of Responses: Occasional.
Necessity of the information: This Final Rule will revise the
filing requirements for applications for Commission authorization to
issues securities or to assume liabilities, to require the electronic
filing of this information and thus reducing the burden on respondents
and allowing more expeditious analysis by the Commission (and others).
The information filed with the Commission is used to make a
determination to grant or deny authorization to issue securities or to
assume a liability. By assessing this information, the Commission can
evaluate the financial health of the company and the potential impact
on current and future ratepayers.
Internal Review: The Commission has reviewed the proposed
amendments to its regulations to modify the filing method and
standardize the format. The revisions to the regulations will provide
more effective and efficient information by providing current data by
electronic submission. This method of filing will reduce data errors
and thus preserve the integrity of the data. The Commission will be
able to conduct further analysis of filed data in a more timely fashion
and provide a more timely response. The Commission has assured itself,
by means of internal review, that there is specific, objective support
for the burden estimates associated with the information collection
requirements.
10. Interested persons may obtain information on the information
requirements by contacting the following: The Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426 [Attention:
Michael Miller, Office of the Executive Director, ED-33, Phone (202)
502-8415, Fax: (202) 273-0873, e-mail: michael.miller@ferc.gov.]
11. To submit comments concerning the collection of information(s)
and the associated burden estimate(s), please send your comments to the
contact listed above and to the Office of Management and Budget, Office
of Information and Regulatory Affairs, Washington, DC 20503,
[Attention: Desk Officer for the Federal Energy Regulatory Commission,
phone: (202) 395-4650, fax: (202) 395-7285].

VI. Regulatory Flexibility Act Certification

12. The Regulatory Flexibility Act (RFA) requires rulemakings to
contain either a description and analysis of the effect that the rule
will have on small entities or to contain a certification that the rule
will not have a significant economic impact on a substantial number of
small entities.\2\
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\2\ 5 U.S.C. 601-12.
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13. The Commission concludes that this rule would not have such an
impact on small entities. Most public utilities to which the Final Rule
would apply do not fall within the RFA's definition of a small
entity.\3\ Further, electronic filing would not be a significant burden
since the filing is typically prepared in an electronic format in the
first place. Consequently, the Commission certifies that this Final
Rule will not have ``a significant economic impact on a substantial
number of small entities.''
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\3\ 5 U.S.C. 601(3), citing to section 3 of the Small Business
Act, 15 U.S.C. 632. Section 3 of the Small Business Act defines a
``small-business concern'' as a business which is independently
owned and operated and which is not dominant in its field of
operation. In addition, the RFA definition of ``small entity''
refers to the definition provided in the Small Business Act, which
defines a ``small business concern'' as a business that is
independently owned and operated and that is not dominant in its
field of operation. 15 U.S.C. 632. The Small Business Size Standards
component of the North American Industry Classification System
defines a small electric utility as one that, including its
affiliates, is primarily engaged in the generation, transmission,
and/or distribution of electric energy for sale and whose total
electric output for the preceding fiscal year did not exceed 4
million MWh. 13 CFR 121.201.
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VII. Environmental Analysis

14. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\4\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\5\ The actions proposed to be taken here fall within the
categorical exclusions in the Commission's regulations for rules that
involve information gathering, analysis, and dissemination \6\ and that
involve issuances of securities and assumptions of liabilities.
Therefore, an environmental assessment is unnecessary and has not been
prepared for this rulemaking.
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\4\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
] 30,783 (1987).
\5\ 18 CFR 380.4(a)(2)(ii).
\6\ 18 CFR 380.4(a)(5).
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VIII. Document Availability

15. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through the Commission's Home Page (http://www.ferc.gov) and

in the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5 p.m. eastern time) at 888 First Street, NE., Room 2A,
Washington DC 20426.
16. From the Commission's Home Page on the Internet, this
information is available in eLibrary. The full text of this document is
available in the eLibrary both in PDF and Microsoft Word format for
viewing, printing, and/or downloading. To access this document in
eLibrary, type the docket number, excluding the last three digits of
this document, in the docket number field.
17. User assistance is available for eLibrary and the Commission's
Web site during normal business hours. For assistance contact FERC
Online Support at FERCOnlineSupport@ferc.gov or toll-free at (866) 208-
3676, or for TTY, contact (202) 502-8659. E-Mail the Public Reference
Room at public.referenceroom@ferc.gov or (202) 502-8371.

IX. Effective Date And Congressional Notification

18. This Final Rule will take effect commencing with the
Commission's next e-filing release, which is presently slated to occur
in the Commission's next fiscal year, i.e., no earlier than October 1,
2005. The Commission has determined, with the concurrence of the
Administrator of the Office of Information and Regulatory Affairs of
the Office of the Management and Budget that this rule is not a major
rule within the meaning of section 251 of the Small Business Regulatory
Enforcement Fairness Act of 1996.\7\ The Commission will submit the
Final Rule to both Houses of Congress and the General Accountability
Office.\8\
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\7\ See 5 U.S.C. 804(2).
\8\ See 5 U.S.C. 801(a)(1)(A).
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List of Subjects

18 CFR Part 34

Statements, Reporting and recordkeeping requirements.

List of Subjects

18 CFR Part 131

Forms, Reporting and recordkeeping requirements.

By the Commission.
Linda Mitry,
Deputy Secretary.

0
In consideration of the foregoing, the Commission amends Parts 34 and
131, Chapter I, Title 18 of the Code of Federal Regulations, as
follows:

[[Page 35375]]

PART 34--APPLICATION FOR AUTHORIZATION OF THE ISSUANCE OF
SECURITIES OR THE ASSUMPTION OF LIABILITIES

0
1. The authority citation for Part 34 continues to read as follows:

Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.

0
2. Section 34.7 is revised to read as follows:

Sec. 34.7 Filing requirements.

Each applicant shall submit to this Commission an electronic
version of each application pursuant to this part 34. The electronic
version shall be considered a ``qualified document'' in accordance with
Sec. 385.2003(c)(1) and (2) of this chapter. As a qualified document,
no paper copy version of the filing is required unless there is a
request for privileged or protected treatment or the document is
combined with another document as provided in Sec. 385.2003(c)(3) or
(4). Submit each application in electronic format in accordance with
Sec. 385.2003.

0
3. Section 34.8 is revised to read as follows:

Sec. 34.8 Verification.

An application verification shall be signed under oath by an
authorized representative of the applicant, who has knowledge of the
matters set forth therein and as provided in Sec. 385.2005 of this
chapter, and retained at the applicant's business location until the
relevant proceeding has been concluded.

0
4. Section 34.9 is revised to read as follows:

Sec. 34.9 Filing fee.

Each application shall be accompanied by the submission of a filing
fee if one is prescribed in part 381 of this chapter.

PART 131--FORMS

0
5. The authority citation for Part 131 continues to read as follows:

Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.

0
6. Section 131.43 introductory text is revised to read as follows:

Sec. 131.43 Report of securities issued.

(See Sec. 34.10 of this chapter)
(Submit in electronic format in accordance with Sec. 385.2003 of
this chapter.)
* * * * *

0
7. Section 131.50(a) and (b) is revised to read as follows:

Sec. 131.50 Report of proposals received.

(a) No later than 30 days after the sale or placement of long-term
debt or equity securities or the entry into guarantees or assumptions
of liabilities (collectively referred to as ``placement'') pursuant to
authority granted under Part 34 of this chapter, the applicant must
file, in electronic format, a summary of each proposal or proposals
received for the placement. The proposal or proposals accepted must be
indicated. The information to be filed must include:
(1) Par or stated value of securities;
(2) Number of units (shares of stock, number of bonds) issued;
(3) Total dollar value of the issue;
(4) Life of the securities, including maximum life and average life
of sinking fund issue;
(5) Dividend or interest rate;
(6) Call provisions;
(7) Sinking fund provisions;
(8) Offering price;
(9) Discount or premium;
(10) Commission or underwriter's spread;
(11) Net proceeds to company for each unit of security and for the
total issue;
(12) Net cost to the company for securities with a stated interest
or dividend rate.
(b) This report must be filed with the Commission as prescribed in
Sec. 385.2003 of this chapter and as indicated in the instructions set
out in this report. This report is an electronic file that is
classified as a ``qualified document'' in accordance with Sec.
385.2003(c)(1) and (2). As a qualified document, no paper copy version
of the filing is required unless there is a request for privileged or
protected treatment or the document is combined with another document
as provided in Sec. 385.2003(c)(3) or (4).
* * * * *
[FR Doc. 05-12063 Filed 6-17-05; 8:45 am]

BILLING CODE 6717-01-P