[Federal Register: January 9, 2007 (Volume 72, Number 5)]
[Proposed Rules]
[Page 922-926]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ja07-18]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 101, 125 and 141
[Docket No. RM07-2-000]
Accounting and Reporting Requirements for Nonoperating Public
Utilities and Licensees
Issued December 21, 2006.
AGENCY: Federal Energy Regulatory Commission, Energy.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Energy Regulatory Commission (Commission) is
proposing to amend its accounting and reporting regulations, in Parts
101 and 141, to require public utilities and licensees to continue to
follow the Commission's Uniform System of Accounts (USofA) and to file
annual and quarterly financial reports when they have ceased making
jurisdictional sales of electric energy, or providing jurisdictional
transmission service, but continue collecting amounts pursuant to
[[Page 923]]
a Commission-accepted tariff or rate schedule, or a Commission order.
The proposed rulemaking is intended to close a gap in the Commission's
regulations which apply now only to operating public utilities and
licensees. Under the existing regulations, the Commission cannot
oversee, monitor, or audit costs that provide information necessary to
the Commission's oversight responsibilities and the protection of the
public interest.
The Commission also is seeking comments regarding the applicability
of Part 125, Preservation of Records of Public Utilities and Licensees,
to public utilities or licensees which have ceased operations, as
described above, but continue to collect amounts pursuant to a
Commission-approved tariff or rate schedule, or a Commission order.
This notice of proposed rulemaking reasonably interprets the current
language of Part 125 to require the continued application of Part 125
to nonoperating public utilities and licensees, but seeks comments as
to whether revisions to Part 125 may be necessary.
DATES: Comments are due February 8, 2007.
ADDRESSES: You may submit comments identified by Docket No. RM07-2-000
by one of the following methods:
Agency Web Site: http://www.ferc.gov. Follow the
instructions found in the Comment Procedures Section of the preamble
for submitting comments via the eFiling link.
Mail: Commenters unable to file comments electronically
must mail or hand deliver an original and 14 copies of their comments
to the Federal Energy Regulatory Commission, Secretary of the
Commission, 888 First Street, NE., Washington, DC 20426. Please refer
to the Comment Procedures Section of the preamble for additional
information on how to file paper comments.
FOR FURTHER INFORMATION CONTACT:
Jane Stelck, Office of Enforcement, Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
6648, jane.stelck@ferc.gov.
Thomas Russo (Technical), Office of Enforcement, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426,
(202) 502-8792, thomas.russo@ferc.gov.
Michael Krauthamer, Office of the General Counsel, Federal Energy
Regulatory Commission, 888 First Street, NE., Washington, DC 20426,
(202) 502-6159, michael.krauthamer@ferc.gov.
SUPPLEMENTARY INFORMATION:
I. Introduction
1. The Federal Energy Regulatory Commission (Commission) is
proposing to amend the accounting and reporting requirements in Parts
101 and 141 of its regulations to require public utilities and
licensees to continue to follow the Commission's Uniform System of
Accounts (USofA) \1\ and to file quarterly and annual financial reports
\2\ when they have ceased to make jurisdictional sales of electric
energy or to provide jurisdictional transmission service but continue
to collect amounts pursuant to a Commission-accepted tariff or rate
schedule, or a Commission order. These proposed regulations are
intended to close a gap in current accounting and reporting
requirements that no longer apply when the operations of a public
utility or licensee are discontinued. The resulting gap leaves
unreported information and data which are important to the Commission's
administration of its jurisdictional responsibilities under the Federal
Power Act (FPA).\3\ Specifically, these changes are intended to address
a situation, for example, in which a nuclear generating plant may shut
down its operations but continue to collect decommissioning and other
administrative costs pursuant to a Commission order. For this purpose,
the Commission proposes additions and revisions to Parts 101 and 141 of
the Commission's regulations, as follows: (1) Add a new category,
designated ``nonoperating'' to the classification of utilities subject
to compliance with the USofA in the General Instructions of Part 101;
and (2) revise Sec. Sec. 141.1, 141.2 and 141.400 of Part 141 to
require nonoperating public utilities and licensees whose operations
have ceased but who continue to collect amounts pursuant to a
Commission tariff or rate schedule, or a Commission order, to continue
to comply with the Commission's reporting requirements.
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\1\ 18 CFR Part 101.
\2\ 18 CFR Part 141.
\3\ 16 U.S.C. 824 et seq.
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2. The Commission is also seeking comments on the applicability of
Part 125, which sets forth record retention requirements for public
utilities and licensees. This notice of proposed rulemaking reasonably
interprets the current language of Part 125 to provide that the
requirements of Part 125 continue to apply to nonoperating entities who
continue to collect amounts pursuant to a Commission-approved tariff or
rate schedule, or a Commission order. The Commission seeks comments,
however, as to whether Part 125 may require particular revisions.
II. Background
3. The Commission's regulations in Parts 101 and 141 require public
utilities and licensees whose sales or transmission service exceed
certain prescribed levels to follow the USofA and to file annual and
quarterly financial reports, Forms No. 1, 1-F, and 3-Q, respectively.
This information is necessary to enable the Commission to fulfill its
statutory responsibilities under the FPA and is essential to the
Commission's decisionmaking process. The information, which is publicly
available, also allows customers, state commissions, and others to
evaluate the rates charged for sales of electric energy and
transmission of electric energy.
4. Under the Commission's existing regulations, public utilities
and licensees are relieved of these accounting and reporting
requirements when they cease making sales or providing transmission.
This is true even when these nonoperating public utilities and
licensees continue to collect amounts pursuant to a Commission-approved
tariff or rate schedule, or a Commission order.
III. Discussion
5. In recent years, this accounting and reporting gap has been
highlighted when, for example, nuclear generating plants shut down but
continue to collect decommissioning and other administrative costs
under a Commission-accepted tariff or rate schedule, or a Commission
order.\4\ The amounts collected by these companies are material and may
span a decade or longer.\5\ The occurrence of these and the potential
occurrence of similar circumstances impede the Commission's ability to
collect information, monitor, or audit the underlying costs when
accounting and reporting requirements no longer apply. The Commission
has a continuing need to have access to books and records and to
receive periodic financial reports for any jurisdictional entity, even
when that entity has ceased operations but continues to collect amounts
pursuant to a Commission-accepted tariff or rate schedule, or a
Commission order. Without Commission oversight, customers and
ratepayers cannot be
[[Page 924]]
assured that these billings are just and reasonable.
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\4\ See, e.g., Connecticut Yankee Atomic Power Company, 92 FERC
] 61,005 (2000) (approving decommissioning cost collections.)
\5\ For example, Connecticut Yankee collected $16.7 million per
year in decommissioning funds from 2000 to 2004 and $93 million in
2005 and 2006. Id.
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6. To remedy this gap in the regulations and to ensure that the
Commission has all necessary information to perform its oversight
duties, this rulemaking proposes to add a new classification in Part
101, General Instructions, Classification of utilities, which will
apply the USofA to nonoperating Major and Nonmajor public utilities and
licensees. Additionally, the Commission proposes revisions to the
reporting requirements contained in Part 141 of its regulations to
require that nonoperating public utilities and licensees that have
ceased operation, but continue to collect amounts pursuant to a
Commission-accepted tariff or rate schedule, or a Commission order,
continue to file annual and quarterly reports pursuant to these
regulations.
7. At this time, the Commission is not proposing any additions or
revisions to Part 125, which requires public utilities and licensees to
retain records for designated periods of time. This proposed rulemaking
is based on a reasonable reading of the current language in Part 125,
that the requirements of Part 125 continue to apply to nonoperating
public utilities and licensees even when their respective operations
cease but they continue to collect amounts under a Commission-accepted
tariff or rate schedule or a Commission order. We seek comments,
however, as to whether revisions to Part 125 may be necessary.
8. At this time, it is anticipated that the proposed regulations
will affect only a few entities, and that reporting and compliance
requirements will not be burdensome.
9. Finally, the Commission proposes that these accounting and
reporting requirements become effective 30 days after publication of
the Final Rule in the Federal Register.
IV. Information Collection Statement
The following collections of information contained in this proposed
rule are being submitted to the Office of Management and Budget (OMB)
for review under section 3507(d) of the Paperwork Reduction Act of
1995.\6\ OMB's regulations require OMB to approve certain information
collection requirements imposed by agency rule.\7\
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\6\ 44 U.S.C. 3507(d).
\7\ See 5 CFR 1320.11.
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Comments are solicited on the need for this information, whether
the information will have practical utility, the accuracy of the
provided burden estimated, ways to enhance the quality, utility,
clarity of the information to be collected, and any suggested methods
for minimizing respondents' burden, including the use of automated
information techniques. The Commission expects that only a very small
number of public utilities and licensees would be affected by the
proposed rule. The Commission also anticipates there will be a minimal
impact, if any, on these entities.
Information Collection Costs: The Commission seeks comments on the
costs to comply with these requirements. The Commission anticipates
that there will be minimal impact relative to the costs of compliance.
Title: FERC Form No. 1, ``Annual report of Major electric
utilities, licensees, and others''; FERC Form No. 1-F; ``Annual report
for Nonmajor public utilities and licensees''; FERC Form No. 3-Q,
``Quarterly financial report of electric utilities, licensees, and
natural gas companies''; and FERC-555.
Action: Proposed information collections.
OMB Control Nos.: 1902-0021; 1902-0029; 1902-0205, and 1902-0098.
Respondents: Businesses or other for profit.
Frequency of responses: Annually and quarterly.
Necessity of the Information: The information maintained and
collected under the requirements of Parts 101 and 141 is essential to
the Commission's oversight duties. Under the existing regulations,
nonoperating public utilities and licensees are not required to follow
the USofA, or submit financial reports when sales of electric energy or
transmission of electric energy cease, even when they continue to bill
amounts pursuant to a Commission-accepted tariff or rate schedule, or a
Commission order. Without access to accounting books and records and
periodic financial reports, the Commission cannot conduct rate reviews,
audits and other oversight activities with respect to these public
utilities and licensees.
Internal Review: The Commission has reviewed the requirements
pertaining to the USofA and to its financial reports and has determined
that the proposed changes are necessary. These requirements conform to
the Commission's plan for efficient information collection,
communication, and management within the public industry. The
Commission has assured itself, by means of internal review, that there
is specific, objective support associated with the information
requirements.
10. Interested persons may obtain information on the reporting
requirements by contacting: Federal Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426 [Attention: Michael Miller,
Office of the Chief Information Officer, phone (202) 502-8415, fax:
(202) 273-0873, e-mail: michael.miller@ferc.gov].
11. To submit comments concerning the collection of information and
the associated burden estimates, 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.
V. Environmental Statement
12. 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.\8\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion are actions that involve
accounting and financial reporting.\9\ The rules proposed here address
the need for nonoperating utilities and licensees to continue
compliance with the USofA and to meet the reporting requirements of
part 141 for so long as they continue to collect amounts pursuant to a
Commission-approved tariff or rate schedule, or a Commission order.
Therefore, this notice of proposed rulemaking falls within the
categorical exemptions provided in the Commission's regulations, and,
as a result neither an environmental impact statement nor an
environmental assessment is required.
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\8\ Regulations Implementing the National Environmental Policy
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs.
] 30,783 (1987).
\9\ 18 CFR 380.4(a)(5), (16); see also 18 CFR 380.4(a)(3).
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VI. Regulatory Flexibility Act Certification
13. The Regulatory Flexibility Act of 1980 \10\ generally requires
a description and analysis of final rules that will have significant
economic impact on a substantial number of small entities. The
Commission is not required to make such analyses if a rule would not
have such an effect. Because most public utilities and licensees do not
fall within the definition of ``small entity,'' \11\ the
[[Page 925]]
Commission certifies that this notice of proposed rulemaking will not
have a significant economic impact on a substantial number of small
entities.
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\10\ 5 U.S.C. 601-12.
\11\ See 5 U.S.C. 601(3).
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VII. Comment Procedures
14. The Commission invites comments on the matters and proposals in
this notice, including any related matters or alternative proposals
that commenters may wish to discuss. Comments are due February 8, 2007.
Reply comments will be due 30 days thereafter. Comments must refer to
Docket No. RM07-2-000, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments. Comments may be filed either in electronic or paper format.
15. Comments may be filed electronically via the eFiling link on
the Commission's Web site at http://www.ferc.gov. The Commission
accepts most standard word processing formats and commenters may attach
additional files with supporting information in certain other file
formats. Commenters filing electronically do not need to make a paper
filing. Commenters that are not able to file comments electronically
must send an original and 14 copies of their comments to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426.
16. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VIII. Document Availability
17. 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.
18. From the Commission's Home Page on the Internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary 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.
19. User assistance is available for eLibrary and the Commission's
Web site during normal business hours from our Help Line at (202) 502-
8222 or the Public Reference Room at (202) 502-8371 Press 0, TTY (202)
502-8659. E-Mail the Public Reference Room at
public.referenceroom@ferc.gov.
List of Subjects
18 CFR Part 101
Electric power, Electric utilities, Reporting and recordkeeping
requirements, Uniform System of Accounts.
18 CFR Part 141
Electric power, Reporting and recordkeeping requirements.
By direction of the Commission.
Magalie R. Salas,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
parts 101 and 141, Chapter I, Title 18, Code of Federal Regulations, as
follows:
PART 101--UNIFORM SYSTEM OF ACCOUNTS PRESCRIBED FOR PUBLIC
UTILITIES AND LICENSEES SUBJECT TO THE PROVISIONS OF THE FEDERAL
POWER ACT
1. The authority citation for part 101 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, 7651-7615o.
2. Amend Part 101, General Instructions, 1. Classification of
utilities, to add a new paragraph A.(3) and to revise the first
sentence in paragraph B to read as follows:
General Instructions
1. Classification of Utilities.
A. * * *
(3) Nonoperating. Utilities and licensees formerly designated as
Major or Nonmajor that have ceased operation but continue to collect
amounts pursuant to a Commission-accepted tariff or rate schedule, or a
Commission order.
B. This system applies to Major, Nonmajor, and Nonoperating
utilities and licensees. * * *
* * * * *
PART 141--STATEMENTS AND REPORTS (SCHEDULES)
3. The authority citation for part 141 continues to read as
follows:
Authority: 15 U.S.C. 79; 16 U.S.C. 791a-828c, 2601-2645; 31
U.S.C. 9701; 42 U.S.C. 7101-7352.
4. Revise Sec. 141.1(b)(1)(i) to read as follows:
Sec. 141.1 FERC Form No. 1, Annual report of Major electric
utilities, licensees and others.
* * * * *
(b) Filing requirements--(1) Who must file--(i) Generally. Each
Major and each Nonoperating (formerly designated as Major) electric
utility (as defined in part 101 of Subchapter C of this chapter) and
other entity, i.e., each corporation, person or licensee as defined in
section 3 of the Federal Power Act (16 U.S.C. 792 et seq.), including
any agency, authority, or other legal entity or instrumentality engaged
in generation, transmission, distribution, or sale of electric energy,
however produced, throughout the United States and its possessions,
having sales or transmission service equal to Major or Nonoperating
(formerly designated as Major) as defined above, whether or not the
jurisdiction of the Commission is otherwise involved, shall prepare and
file electronically with the Commission the FERC Form No. 1 pursuant to
the General Instructions set out in that form.
* * * * *
5. Revise Sec. 141.2(b)(1)(i) to read as follows:
Sec. 141.2 FERC Form No. 1-F, Annual report for Nonmajor public
utilities and licensees.
* * * * *
(b) Filing requirements--(1) Who must file--(i) Generally. Each
Nonmajor and each Nonoperating (formerly designated as Nonmajor) public
utility and licensee as defined by the Federal Power Act, which is
considered Nonmajor as defined in Part 101 of this chapter, shall
prepare and file with the Commission an original and conformed copies
of FERC Form No. 1-F pursuant to the General Instructions set out in
that form.
* * * * *
6. In Sec. 141.400, revise paragraphs (b)(1)(i), (b)(2)
introductory text, and (b)(3) introductory text, to read as follows:
* * * * *
Sec. 141.400 FERC Form No. 3-Q, Quarterly financial report of
electric utilities, licensees, and natural gas companies.
* * * * *
(b) Filing Requirements--(1) Who must file--(i) Generally. Each
electric utility and each Nonoperating (formerly designated as Major or
Nonmajor) electric utility (as defined in part 101 of subchapter C of
this chapter) and other entity, i.e., each corporation, person, or
licensee as defined in section 3 of the Federal Power Act (16 U.S.C.
792 et seq.), including any agency or instrumentality engaged in
generation,
[[Page 926]]
transmission, distribution, or sale of electric energy, however
produced, throughout the United States and its possessions, having
sales or transmission service, whether or not the jurisdiction of the
Commission is otherwise involved, must prepare and file with the
Commission FERC Form No. 3-Q pursuant to the General Instructions set
out in that form.
* * * * *
(2) Each Major and Nonoperating (formerly designated as Major) (as
defined in Part 101 of subchapter C of this chapter) public utility and
licensee must file the quarterly financial report form as follows:
* * * * *
(3) Nonmajor and Nonoperating (formerly designated as Nonmajor)
public utilities and licensees must file the quarterly financial report
form as follows:
* * * * *
[FR Doc. E6-22692 Filed 1-8-07; 8:45 am]
BILLING CODE 6717-01-P