Chairman Cheryl A. LaFleur 

November 2014 

PERFORMANCE & ACCOUNTABILITY REPORT

FISCAL YEAR 2014

FEDERAL ENERGY 

REGULATORY COMMISSION
FEDERAL ENERGY REGULATORY COMMISSION 

WASHINGTON, DC 20426 

OFFICE OFTHE CHAIRMAN 

November 24, 2014 

Letter from Chairman LaFleur 

I am pleased to present the Federal Energy Regulatory Commission (Commission) 

Performance and Accountability Report for fiscal year 2014. This report was prepared in 

accordance with the guidelines set forth in Office of Management and Budget Circular 

Number No. A-136 and Part 6 ofCircularNo. A-11. 

This report details the progress the Commission has made in assisting consumers obtain 

reliable, efficient and sustainable energy services at a reasonable cost through appropriate 

regulatory and market means. The strategic goals and objectives that support. the 

Commission's mission are included on page i of this document. 

As outlined in the Management Assurances section of this report, the Commission has 

completed evaluations of its assessment of the effectiveness of internal control over 

operations, system, and financial reporting. I am providing reasonable assurance that the 

Commission meets the objectives required by the Federal Managers' Financial Integrity 

Act and that our financial systems conform with government-wide standards, except for 

the material weakness identified in the financial reporting process and instance of 

noncompliance with federal accounting standards. More detail can be found in the 

Management Assurances section of this report. 

In addition, I can provide assurance that the performance information contained in this 

report is complete and reliable and describes the results achieved towards our goals. 

Sincerely, 

Cheryl A. LaFleur 

Chairman 
TABLE OF CONTENTS

STRATEGIC PLAN OVERVIEW i

MANAGEMENT’S DISCUSSION AND ANALYSIS 1

Introduction 2

Organizational Structure 2

Strategic Plan Overview 4

Strategies for Carrying Out the Commission’s Responsibilities 5

Business Plan 7

Full Cost Recovery 7

Program Performance Overview 7

Financial Performance Overview 28

Controls, Systems, and Legal Compliance 33

Possible Future Effects of Existing Events and Conditions 36

Limitations of the Financial Statements 36

FINANCIAL SECTION 37

Message from the Chief Financial Officer 38

Independent Auditors’ Report 40

Balance Sheet 46

Statement of Net Cost 47

Statement of Changes in Net Position 48

Statement of Budgetary Resources 49

Statement of Custodial Activity 51

Notes to Financial Statements 52

Other Information – Schedule of Spending 69

PERFORMANCE REPORT 70

Introduction 71

Historic Performance Data: 

Energy Infrastructure: FY 2009 72

Competitive Markets: FY 2009 75

Enforcement: FY 2009 76

Supporting Initiatives: FY 2009 77

Current Performance Data: 

Just and Reasonable Rates, Terms and Conditions: FYs 2010 - 2014 80

Infrastructure: FYs 2010 - 2014 90

APPENDIX A: STATUTORY AUTHORITY 95

APPENDIX B: ACRONYM LISTING 97
Federal Energy Regulatory Commission

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STRATEGIC PLAN SUMMARY

MISSION

RELIABLE, EFFICIENT, AND SUSTAINABLE ENERGY FOR CONSUMERS

Assist consumers in obtaining reliable, efficient, and sustainable energy services

at a reasonable cost through appropriate regulatory and market means.

GOAL 1: ENSURE JUST AND REASONABLE RATES, TERMS, AND CONDITIONS.

Ensure that rates, terms, and conditions of jurisdictional energy services are just, reasonable, 

and not unduly discriminatory or preferential.

Objective 1.1: Establish Commission rules and policy that will result in just, 

reasonable, and not unduly discriminatory or preferential rates, terms, and 

conditions of jurisdictional service.

Objective 1.2: Increase compliance with FERC rules; detect and deter market 

manipulation.

GOAL 2: PROMOTE SAFE, RELIABLE, SECURE, & EFFICIENT INFRASTRUCTURE.

Promote the development of safe, reliable, secure, and efficient infrastructure that serves 

the public interest.

Objective 2.1: Foster economic and environmental benefits for the nation through 

approval of natural gas and hydropower projects.

Objective 2.2: Minimize risks to the public associated with FERC-jurisdictional energy 

infrastructure.

GOAL 3: MISSION SUPPORT THROUGH ORGANIZATIONAL EXCELLENCE

Achieve organizational excellence by using resources effectively, adequately equipping FERC 

employees for success, and executing responsive and transparent processes that strengthen 

public trust.

Objective 3.1: Manage Commission resources effectively and efficiently.

Objective 3.2: Empower Commission employees to drive success.

Objective 3.3: Facilitate public trust and understanding of Commission activities by 

promoting transparency, open communication, and a high standard of ethics.
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Management’s 

Discussion and Analysis

(Unaudited)
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INTRODUCTION

In accordance with the guidelines set forth in the Office of Management and Budget (OMB) Circular No. A-136 

and Section 230 of Circular No. A-11, this report presents the Federal Energy Regulatory Commission’s (the 

Commission, FERC) fiscal years (FY) 2014 and 2013 audited annual financial statements and program 

performance report. The financial section includes the Commission’s audited balance sheets, statements of net 

cost, changes in net position, budgetary resources, custodial activity, and notes to the financial statements. The 

performance report section includes performance measurement data for fiscal years 2008 through 2014. 

Additionally, this report includes an overview of the Commission, including its mission and organizational 

structure.

This Performance and Accountability Report serves as a guide to the Commission’s key initiatives and activities 

during FY 2014. Approximately 1,432 full time equivalents (FTEs) carried out the Commission’s mission in FY 

2014 using a budget of $304.6 million.

ORGANIZATIONAL STRUCTURE

The Federal Energy Regulatory Commission is an independent regulatory agency within the U.S. Department of 

Energy (DOE). The Commission’s statutory authority centers on major aspects of the Nation’s wholesale 

electric, natural gas, hydroelectric, and oil pipeline industries.

The Commission was created through the Department of Energy Organization Act on October 1, 1977. At that 

time, the Federal Power Commission (FPC), the Commission’s predecessor that was established in 1920, was 

abolished and the Commission inherited most of the FPC’s regulatory mission.

FERC is composed of up to five commissioners who are appointed by the President of the United States with 

the advice and consent of the Senate. Commissioners serve staggered five-year terms and have an equal vote 

on regulatory matters. To avoid any undue political influence or pressure, no more than three commissioners 

may belong to the same political party. One member of the Commission is designated by the President to serve 

as Chairman and as FERC's administrative head. FERC’s decisions are not reviewed by the President or 

Congress, maintaining FERC's independence as a regulatory agency, and providing for fair and unbiased 

decisions.

In addition to the Chairman and four Commissioners, FERC is organized into twelve separate functional offices; 

each responsible for carrying out specific portions of the Commission’s responsibilities. The offices work in 

close coordination to effectively carry out the Commission’s statutory authority. 
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An organizational chart, including a brief description of each office, is included below. 

Office of Electric Reliability Office of Enforcement Office of Energy Market Regulation Office of Energy Projects Office of Energy Policy and Innovation Office of Energy Infrastructure Security Office of Administrative Litigation Office of the General Counsel Office of the Executive Director Office of Administrative Law Judges and Dispute Resolution Office of the Secretary Office of External Affairs

Commissioner

New York Regional Office

Commissioner Commissioner Commissioner

Atlanta Regional Office Chicago Regional Office Portland Regional Office San Francisco Regional Office

Hagerstown Satellite Office

Chairman

As of October 22, 2013 The Office of Energy Projects

Fosters economic and environmental benefits for the nation through the approval and oversight of 

hydroelectric, natural gas pipeline, natural gas storage, and liquefied natural gas projects that are in the public 

interest.

The Office of Energy Market Regulation

Analyzes filings submitted by electric utilities and natural gas and oil pipelines to ensure that rates, terms, and 

conditions of service are just and reasonable and not unduly discriminatory or preferential. OEMR also analyzes 

filings submitted by the Electric Reliability Organization (ERO) dealing with its budget, rules of procedure, and 

bylaws.

The Office of Enforcement

Protects customers by conducting oversight of energy markets, identifying and remedying market problems in 

a timely manner, assuring compliance with rules and regulations, and detecting and combating market 

manipulation.

The Office of Energy Policy and Innovation

Advises the Commission on policies to ensure the efficient development and use of transmission, generation, 

and demand-side resources, remove barriers to the participation of emerging technologies and resources, and 

create a platform for innovation in wholesale energy markets.

The Office of Electric Reliability 

Oversees the development and review of mandatory reliability and security standards and ensures compliance 

with the approved mandatory standards by the users, owners, and operators of the bulk power system.
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The Office of Energy Infrastructure Security 

Identifies and working with other governmental agencies, industry, and other stakeholders seeks 

comprehensive solutions to potential threats to FERC-jurisdictional infrastructure from cyber and physical 

attacks, including geomagnetic disturbance and electromagnetic pulse events.

The Office of General Counsel 

Provides sound and timely counsel to the Commission and Commission staff as it fulfills responsibilities such as 

assisting in the development of Commission draft orders, rulemakings and other decisions; representing the 

Commission before the courts; advising the Commission and Commission staff on legal matters; and advising 

other government agencies, regulated entities and the public on matters within the Commission's jurisdiction.

The Office of Administrative Litigation 

Advances the public interest in cases set for hearing by providing expert and independent analyses, building a 

full record of compelling evidence, and leading negotiations to achieve beneficial settlements.

The Office of Administrative Law Judges and Dispute Resolution 

Develops an evidentiary record in contested cases as directed by the Commission. Through trial-type hearings 

and the issuance of an initial decision, OALJDR ensures that the rights of all parties are preserved. OALJDR also 

assists interested parties engaged in disputes to achieve consensual decision making through services such as 

mediation, negotiation, conciliation, arbitration, and facilitation.

The Office of the Secretary 

Serves as the focal point through which all filings are made for all proceedings before the Commission, notices 

of proceedings are given, and from which all official actions are issued by the Commission. OSEC promulgates 

and publishes all orders, rules, and regulations of the Commission and prescribes the issuance date for these 

unless such date is prescribed by the Commission.

The Office of External Affairs 

Is responsible for communications and public relations of the Commission. OEA provides informational and 

educational services to Congress; federal, state and local governments; the news media and the public; 

regulated industries; and consumer and public interest groups. This office also is the Commission’s liaison with 

foreign governments.

The Office of the Executive Director 

Provides administrative support services to the Commission including human resources, procurement, 

information technology, organizational management, financial, and logistics.

STRATEGIC PLAN OVERVIEW

The United States has the world’s most durable market economy, every sector of which depends vitally on 

energy. The Commission has an important role in the development of a reliable energy infrastructure and in 

the protection of wholesale customers from unjust and unreasonable rates and undue discrimination and 

preference. The Commission draws its authority from various statutes and laws, which are listed in Appendix 

A.

On March 4, 2014, the Commission submitted to Congress its updated Strategic Plan which will serve as a guide 

through fiscal year 2018. The full Strategic Plan can be found at http://www.ferc.gov/about/strat-docs/stratplan.asp. 
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The Commission’s mission is to assist consumers in obtaining reliable, efficient and sustainable energy services 

at a reasonable cost through appropriate regulatory and market means. To accomplish this, the Commission 

focuses on three goals:

Goal 1. Ensure Just and Reasonable Rates, Terms and Conditions: Ensure that rates, terms and conditions of 

jurisdictional energy services are just, reasonable and not unduly discriminatory or preferential.

One of the Commission’s fundamental statutory responsibilities is to ensure that rates, terms and conditions 

for wholesale sales and transmission of electric energy and natural gas are just and reasonable and not unduly 

discriminatory or preferential. The Commission uses a combination of regulatory and market means to achieve 

this goal, including: reviewing and analyzing tariffs and other filings; establishing rules and policy that will result 

in appropriate rates; and employing competitive forces through markets. Oversight of the energy markets and 

enforcement of the associated laws, rules and regulations are essential complements to the regulatory and 

market means. The Commission uses a balanced approach in its oversight and enforcement efforts, including: 

conducting surveillance and analysis of market trends and data; educating affected entities about market rules 

and other regulations; promoting internal compliance programs; employing robust audit and investigation 

programs; and, where appropriate, exercising the Commission’s civil penalty authority as a deterrent to 

violations.

Goal 2. Promote Safe, Reliable, Secure, and Efficient Infrastructure: Promote the development of safe, 

reliable, secure, and efficient infrastructure that serves the public interest.

The Commission plays an important role in the development of a strong energy infrastructure that operates 

efficiently, safely and reliably. The Commission authorizes the construction and operation of interstate natural 

gas pipelines and storage projects, liquefied natural gas (LNG) facilities, and non-federal hydropower projects. 

Other Commission responsibilities include ensuring the safety of non-federal hydropower projects and LNG 

facilities throughout their entire life cycle; overseeing the development and review of, as well as compliance 

with, mandatory reliability and security standards for the bulk power system; and collaborating with regulated 

entities and other federal and state governmental agencies to identify and seek solutions to cyber and physical 

threats to FERC-jurisdictional infrastructure. 

Goal 3. Mission Support through Organizational Excellence: Achieve organizational excellence by using 

resources effectively, adequately equipping FERC employees for success, and executing responsive and 

transparent processes that strengthen public trust. 

The public interest is best served when the Commission operates in an efficient, responsive and transparent 

manner. The Commission achieves this operational state by maintaining processes and providing services in 

accordance with governing statutes, authoritative guidance, and prevailing best practices.

STRATEGIES FOR CARRYING OUT THE COMMISSION’S RESPONSIBILITIES

The Commission’s two programmatic goals are to 1) ensure that rates, terms, and conditions for wholesale 

sales and transmission of electric energy and natural gas in interstate commerce as well as for transportation of 

oil by pipeline in interstate commerce are just and reasonable and not unduly discriminatory, and 2) ensure 

that energy infrastructure is safe, reliable, secure and efficient and developed in the public interest. The 

Commission has established a third strategic goal focused on management priorities which highlight 

management’s commitment to organizational excellence and mission support. To achieve these goals, the 

Commission will employ several strategies which are summarized below.

To establish rules and policies, FERC draws on both market and regulatory means. When competitive markets 

exist and there are assurances against the exercise of market power, FERC leverages competitive market forces 

to promote efficiency for consumers while taking measures to make those markets more efficient. When 
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competitive market conditions do not exist and competitive forces are inadequate to protect consumers, FERC 

relies on traditional rate-setting authority and tools such as cost-of-service ratemaking.

FERC determines the appropriate approach balancing two important interests: protecting consumers against 

excessive rates, and providing an opportunity for regulated entities to recover their costs and earn a

reasonable return on their investments. Regardless of the approach, the Commission ensures that interested 

stakeholders have the opportunity to provide their views and that the Commission’s ultimate decisions are 

adequately supported by the evidentiary record. These techniques produce just, reasonable, and not unduly 

discriminatory or preferential rates, terms, and conditions.

Oversight of the energy markets and enforcement of the associated laws, rules and regulations are essential 

complements to the regulatory and market means. In an effort to increase compliance with rules and to deter 

market manipulation, the Commission promotes internal compliance programs and self-reporting of violations 

by regulated entities. The Commission engages in extensive outreach to educate market participants and 

affected stakeholders on compliance programs and improper market behavior. As part of its balanced 

approach to oversight and enforcement, the Commission also conducts surveillance and analysis of market 

trends and data; employs robust audit and investigation programs; and, where appropriate, exercises the 

Commission’s civil penalty authority as a deterrent to violations.

In addition to the regulation and oversight of energy markets, the Commission is charged with the 

responsibility to promote the development of robust, reliable and secure energy infrastructure that operates 

safely, reliably, and efficiently. In executing its siting authority, the Commission recognizes that competing 

interests remain a significant challenge throughout the infrastructure siting process, which can be complex, 

lengthy, and contentious. The Commission addresses this challenge by conducting outreach with stakeholders 

to promote the exchange of information and ensure understanding of Commission procedures with the goal of 

reconciling competing interests.

In addition to its siting authority, the Commission has other infrastructure responsibilities, including: ensuring 

the safety of non-federal hydropower projects and LNG facilities throughout their entire life cycle; overseeing 

the development and review of, as well as compliance with, mandatory reliability and security standards for 

the bulk power system; and collaborating with regulated entities and other federal and state governmental 

agencies to identify and seek solutions to cyber and physical threats to FERC-jurisdictional infrastructure. 

To minimize risks to the public associated with jurisdictional energy infrastructure, the Commission is working 

to develop and incorporate risk-informed decision making (RIDM) into the Owners Dam Safety Program. This 

transition to RIDM could have several positive impacts on the Owners Dam Safety Program including, among 

others, a better understanding of potential failure modes, a better understanding of the consequences of 

potential failure modes on life, health and property, and an improved ability to evaluate risk reduction 

alternatives.

Further, to protect and improve the reliability and security of the Nation’s bulk power system, the Commission 

will address emerging issues by conducting, reviewing and overseeing the assessment of the planning and 

operation of the bulk power system. The Commission will also promote improvement to energy infrastructure 

security through the use of its assessment capabilities and conducting outreach with facility owners and 

operators. 

Lastly, in order to support the Commission’s mission and to serve the public interest, the Commission must 

operate in an efficient, responsive and transparent manner. Internally, the Commission will focus on managing 

its resources effectively by addressing staffing vulnerabilities related to the potential retirement of 30 percent 

of the Commission’s workforce over the strategic plan period. The Commission will also invest in modern 

information technologies to provide innovative solutions which also provide an appropriate return on 

investment. The Commission will also comply with Office of Management and Budget guidance to modernize 

our facilities in order to make more efficient use of available office space. 
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Commission employees are directly responsible for achieving FERC’s mission and the Commission’s leadership 

places extremely high value on its employees and ensuring their success. To support employee learning and 

development, the Commission will develop and deploy a competency-based training program and corporate 

knowledge management approach to ensure staff is equipped with the requisite knowledge to meet the 

agency’s needs going forward.

To ensure employees’ needs are being met, the Commission will use internal surveys and results from the 

Federal Employee Viewpoint Survey to gauge employee perceptions on the tools and services provided to 

them. The Commission will take action on areas not favorably rated in order to improve processes and services 

to maintain the Commission’s history of organizational excellence. Through these investments in the 

organization and employees, the Commission will be in a better position to meet the challenges facing the 

energy industry going forward. 

BUSINESS PLAN

The Commission’s annual Business Plan details the activities and resources allocated to meet the Strategic 

Plan’s goals and objectives. This increases internal accountability by enabling management to link individual 

office responsibility and budget resources to Commission activities. The Business Plan is an iterative process 

that helps to identify which activities are leading the Commission towards achieving particular goals and 

objectives. During FY 2014, the Commission reported actual FTE usage at a detailed activity level in its Business 

Plan, which improved offices’ ability to organize and allocate resources effectively.

FULL COST RECOVERY

The Commission recovers the full cost of its operations through annual charges and filing fees assessed on the 

industries it regulates as authorized by the FPA and the Omnibus Budget Reconciliation Act of 1986. The 

Commission deposits this revenue into the Treasury as a direct offset to its appropriation, resulting in no net 

appropriations.

PROGRAM PERFORMANCE OVERVIEW

The performance measurement data and other achievements included below constitute several of the 

Commission’s key achievements during FY 2014. The performance measures and targets were taken from the 

Commission’s FYs 2014 – 2018 Strategic Plan. A complete list of the Commission’s performance measurement 

data for fiscal years 2009 through 2014 is included in the Performance Report section of this report.

Goal 1: Ensure Just and Reasonable Rates, Terms, and Conditions 

Ensure that rates, terms, and conditions of jurisdictional energy services are just, reasonable, and not unduly 

discriminatory or preferential. 

Objective 1.1: Establish Commission rules and policy that will result in just, reasonable, and not unduly 

discriminatory or preferential rates, terms, and conditions of jurisdictional service. 

FERC draws on both market and regulatory means to establish rules and policies. FERC determines the 

appropriate approach balancing two important interests: protecting consumers against excessive rates, and 

providing an opportunity for regulated entities to recover their costs and earn a reasonable return on their 

investments. The Commission ensures that interested stakeholders have the opportunity to provide their 

views and that the Commission’s ultimate decisions are adequately supported by the evidentiary record. These 

techniques produce just, reasonable, and not unduly discriminatory or preferential rates, terms, and

conditions. 
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Description of Measure

The percentage change in uneconomic interchange flows (i.e., electricity flowing from a high-cost market to a 

low-cost market) between adjacent organized markets is one indication of market inefficiency and thus could 

serve as an indicator of the Commission’s effectiveness in achieving Objective 1.1. The measure assesses 

hourly real-time net scheduled interchange flows between adjacent Commission-jurisdictional organized 

markets where such data are readily available and there is established market energy trading.

Explanation of Results

The FY 2014 baseline result represents the percentage change between FY 2013 and FY 2014 in interchange 

flows that were uneconomic. A number of factors may have influenced the FY 2014 baseline result. In addition 

to generally applicable events like the weather, the economy, and unpredictable market behavior, unusual 

weather events, such as the Polar Vortex in early 2014, may have caused an increase in uneconomic

interchange flows as organized markets searched for power sources to make up for unexpected demand and 

outages. Further, the seam between the Midcontinent Independent System Operator, Inc. (MISO) and the 

Southwest Power Pool, Inc. (SPP) changed with the December 19, 2013, integration of MISO South into the rest 

of MISO. In addition, interchange flows may have been affected by SPP’s implementation of its day-ahead 

market on March 1, 2014. Finally, on April 1, 2014, PJM Interconnection, L.L.C. (PJM) changed its 

price definition of the Midcontinent Independent System Operator, Inc. (MISO) interface to more accurately 

reflect actual prices, which may have changed the interchange flows between these markets.

Rationale for Targets

As organized markets increase coordination and implement policies and rules that better promote efficiency 

between adjacent organized markets and remove incentives to schedule uneconomic interchange, the 

percentage of uneconomic interchange flow should decrease. The FYs 2015 – 2018 targets are based on the

Commission staff’s belief that any new policies, rules, and/or proposals are likely to have effects that are 

roughly on the same scale as past implementation of policies and rules meant to improve interface scheduling. 

The exact magnitude of those effects, particularly as isolated from unknown external factors, is hard to identify 

precisely, but those effects appear to be on the order of 1.25 percent improvement per year. Further, certain 

organized markets have proposed changes to better coordinate interface transaction scheduling on varying 

timelines, so some interfaces will see improvements to interface scheduling efficiency earlier than others. A 

change to one interface will account for only a small change in the overall percentage of schedules that are 

uneconomic.

 

1

In the Commission’s FYs 2014-2018 Strategic Plan, the title for this performance measure indicates that the 

“percent of” interchange flows that are uneconomic will be assessed. However, during the development of the 

baseline and targets in FY 2014, the measure was changed to the “percentage change in” interchange flows 

that are uneconomic.

Performance Measure 1

Percentage change1in interchange flows that are uneconomic, representing market 

inefficiency.

FY 2014 FY 2015 FY 2016 FY 2017 FY2018

Target - -1.25% -1.25% -1.25% -1.25%

Result 1.09% n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
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Description of Measure

In order to achieve just and reasonable rates for consumers, public utility transmission providers must work 

together to address electric transmission needs in an efficient and cost-effective manner. Furthermore, 

collaboration across a diverse group of stakeholders, including transmission customers and non-incumbent 

entities proposing solutions to transmission needs, promotes effective transmission planning and the 

identification of efficient and cost-effective solutions. Recognizing the importance of effective transmission 

planning to minimizing inefficiencies, FERC issued Order No. 1000, which requires public utility transmission 

providers to collaborate in regional transmission planning and takes steps to encourage participation by all 

stakeholders in those planning activities. The success of these regional transmission planning processes is 

difficult to quantify. However, participation by a broad group of stakeholders in a regional transmission 

planning process is a leading indicator of the usefulness of that process because stakeholders will cease 

devoting time and resources to a process they feel is ineffective. Accordingly, the level of participation by 

stakeholders in regional transmission planning meetings, as demonstrated through attendance records, 

provides a measure of FERC’s impact on transmission planning processes and serves as an indicator of the 

Commission’s effectiveness in achieving Objective 1.1.

Explanation of Results

Commission staff is unable to calculate a baseline analysis for FY 2014. Order No. 1000 became effective on 

October 11, 2011. However, since that time the Commission has been processing individual regions’ proposals 

on how to comply with Order No. 1000. Also, many regions have not begun to fully implement Order No. 1000 

reforms or determined when transmission planning meetings will begin in their region. Staff will begin 

monitoring the formally planned regional transmission planning meetings in January 2015. 

Rationale for Targets

As discussed earlier, participation in meetings will be calculated through the attendance records provided by 

the regions; there are no such records to date. Accordingly, there is no data upon which to develop out-year 

targets. Therefore, staff will calculate a baseline and project out-year targets using FY 2015 results. However, 

the FY 2015 baseline will only reflect nine months of data.

Description of Measure

Contested rate, tariff or complaint cases may be set for hearing and then resolved by settlement or formal 

adjudicatory hearing. Settling cases saves energy companies, their customers, and the Commission significant 

time and resources and provides quicker determination of appropriate rates, terms and conditions of service. 

Where settlement is not possible, a full hearing develops the evidentiary record and permits FERC to decide 

contested issues; create, apply or modify its policies; provide guidance to the public and the energy industry.

Performance Measure 2

Level of participation of stakeholders in regional transmission planning 

meetings.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target - To be 

determined.

To be 

determined.

To be 

determined.

To be 

determined.

Result n/a n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a

Performance Measure 3

Percentage of cases set for hearing or settlement procedures that are resolved by settlements.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target - 75% 75% 75% 75%

Result 78% n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
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The ability of the Commission to pursue a litigated outcome to a proceeding when an appropriate settlement 

proves impossible is a critical component of the Commission’s responsibility to fulfill its statutory 

responsibilities.

Explanation of Results

The FY 2014 baseline result reflects the Commission’s approach to balance its efforts between settling cases 

and litigating cases when appropriate. Commission staff settled 40 cases (31 full settlements, 8 partial 

settlements, one pre-filing negotiation that resulted in the filing of a docketed settlement) out of 51 resolved 

cases during the fiscal year.

Rationale for Targets

The FYs 2015 – 2018 targets are based on historical results of the percent of cases set for hearing/settlement 

by the Commission, or initiated through the ADR process, that were in fact settled. The targets are a 

reasonable representation of the percentage of cases that properly can and should be settled by the 

Commission. The targets also take into consideration the impact of external factors on the settlement process 

and the fact that not all cases can or should be settled.

OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2014

OBJECTIVE 1.1: ESTABLISH RULES AND POLICY

 In November 2013, the Commission issued Order No. 787, Communication of Operational Information 

Between Natural Gas Pipelines and Electric Transmission Operators, allowing interstate natural gas 

pipelines and electric transmission operators to share non-public operational information to promote the 

reliability and integrity of their systems.

 In November 2013, the Commission issued Order No. 792, Small Generator Interconnection Agreements 

and Procedures, amending 18 C.F.R. Part 35 to incorporate revisions to the pro forma Small Generator 

Interconnection Agreements and pro forma Small Generator Interconnection Procedures. 

 In January 2014, the Commission issued an order approving New York Independent System Operator’s 

(NYISO’s) tariff revisions resulting from its triennial review of the capacity market demand curves. NYISO 

submitted revisions to: 1) define the installed capacity demand curves for capability years 2014/2015, 

2015/2016, and 2016/2017; 2) update existing demand curves for the New York City, Long Island, and New 

York Control Area; and 3) establish the first installed capacity demand curve for a new zone. 

 In February 2014, the Commission exercised its emergency authority under section 1(15) of the Interstate 

Commerce Act to temporarily provide priority treatment for shipments of propane to consumers in the 

Midwest and Northeast during a period of extreme cold to assist in the protection of public health and 

safety. Subsequently, the Commission extended the priority treatment for propane shipments for an 

additional period of time, thus helping to address the needs of those regions for propane supplies.

 In March 2014, the Commission issued a Notice of Proposed Rulemaking, Coordination of the Scheduling 

Processes of Interstate Natural Gas Pipelines and Public Utilities, to gather public comments on its 

proposals to revise the natural gas operating day and scheduling practices used by interstate pipelines to 

schedule natural gas transportation service.

 In March 2014, the Commission issued an order accepting, subject to compliance, revisions to California 

Independent System Operator, Inc.’s (CAISO) transmission planning process in order to clarify the process, 

implement improvements and respond to issues raised by stakeholders. 

 In March 2014, the Commission approved a request by Champlain VT, LLC to sell transmission rights at 

negotiated rates for a transmission project between Quebec, Canada and Ludlow, Vermont. The project 
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entails 150 miles of 1,000 MW high voltage direct current transmission lines that will connect the markets 

in Quebec and ISO- New England (ISO-NE).

 In March 2014, the Commission issued an Order to Show Cause, which required all interstate natural gas 

pipelines to either revise their respective tariffs to provide for the posting of offers to purchase released 

capacity as required by section 284.8(d) of the Commission’s regulations (18 C.F.R. § 284.8(d) (2014)), or to 

demonstrate that their existing tariffs are in full compliance with that section. The Commission received 

157 compliance filings. 

 On April 1, 2014, the Commission held a technical conference on Winter 2013-2014 Operations and 

Market Performance in Regional Transmission Organizations and Independent System Operators to 

explore the impacts of recent cold weather events in the markets operated by those entities and to discuss 

actions taken to respond to those impacts.

 In May 2014, the Commission addressed concerns that ISO-NE’s capacity market was not adequately 

incenting capacity resource to perform during tight system conditions and was not procuring the flexible, 

high-availability resources most needed for reliable operation of the system. The Commission issued an 

order that rejected both ISO-NE’s and the New England Power Pool Participants Committee’s competing 

proposals but instituted a section 206 proceeding finding that a combination of the elements of the two 

proposals created a just and reasonable approach to improve capacity resource performance.

 In May 2014, the Commission accepted Grain Belt Express Clean Line LLC’s application, inter alia, to sell 

transmission rights at negotiated rates on its proposed 750-mile High Voltage Direct Current (HVDC) 

transmission system which will be capable of delivering up to 3,500 MW of power, originating in Kansas 

and terminating in Indiana. In August, the Commission accepted a similar proposal from Plains and Eastern 

Clean Line LLC and Eastern Clean Line Oklahoma LLC to sell transmission rights at negotiated rates on their 

proposed 700-mile HVDC transmission system that will be capable of delivering up to 3,500 MW of power, 

originating in Oklahoma and terminating in Tennessee. 

 In June 2014, the Commission proposed to amend its regulations governing market-based rates for public 

utilities pursuant to the Federal Power Act. The Commission proposed streamlining and clarifying certain 

aspects of its filing requirements to reduce the administrative burden on applicants and the Commission.

 In June 2014, the Commission conditionally accepted proposed tariff revisions submitted to offer 

participation in the imbalance energy portion of the CAISO’s real-time market to other balancing authority 

areas. Also in June 2014, the Commission issued an order conditionally accepting proposed tariff revisions 

filed by PacifiCorp to enable it to participate in the expanded Energy Imbalance Market being created by 

CAISO.

 In July 2014, based on a review of the transmission formula rate protocols and annual formula rate 

updates of all jurisdictional electric utilities, the Commission posted on its website FERC staff’s general 

guidance for electric utilities’ annual formula rate updates, and issued orders requiring reforms to the 

formula rate protocols of six utilities to meet certain minimum requirements designed to ensure that all 

jurisdictional transmission owners provide adequate information to the Commission and interested parties 

to demonstrate that they are accurately implementing their formula rates.

 In September 2014, the Commission held a workshop on Price Formation in Energy and Ancillary Services 

Markets Operated by Regional Transmission Organizations and Independent System, to commence a 

discussion with industry on existing market rules and operational practices affecting price formation issues. 

 In September 2014, the Commission addressed requests for rehearing on a final rule changing the 

reporting requirements for the Annual Cost of Service Based Analysis Schedule in the interstate oil pipeline 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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industry’s annual report, the FERC Form No. 6. The modifications require reporting of additional financial 

information regarding the pipeline’s investment or rate base, regulated cost of capital for debt and equity 

capital, and composite income tax rate related to the regulated provision for income taxes.

 In FY 2014, the Commission issued a number of orders addressing return on equity (ROE) issues in pending 

complaints and established formal proceedings to resolve outstanding issues in order to ensure rates are 

just and reasonable. The Commission announced a new policy in one of those proceedings, Martha 

Coakley, Massachusetts Attorney General vs. Bangor Hydro-Electric Co. (Opinion No. 531), in which the 

Commission adopted a two-step ROE methodology, determined the placement in the range of allowable 

equity returns, and discussed alternative cost of equity methodologies.

 In FY 2014, the Commission issued 12 orders addressing requests for rehearing of the orders on initial 

filings to comply with the regional transmission planning requirements of Order No. 1000 and related 

second round regional compliance filings. 

 During FY 2014, the Commission issued orders accepting all but one of the compliance filings made to 

implement Order No. 764, which adopted changes to the Commission’s regulations to support the efficient 

and nondiscriminatory integration of variable energy resources such as wind and solar generation. 

 The Commission acted on three electric utility acquisitions in FY 2014, including: authorizing Dynegy to 

acquire substantially all of the generation assets of Ameren or about 4,200 MW; authorizing MidAmerican 

Energy Holding Company to acquire NV Energy, Inc. and its two subsidiaries Nevada Power Company and 

Sierra Pacific Power Company; and authorizing NRG Energy Holdings, Inc. to acquire Edison Mission Energy 

and substantially all of its assets. 

 In FY 2014, the Commission approved several proposals to ensure that PJM Interconnection, LLC’s (PJM) 

capacity market procured adequate resources to meet the region’s reliability needs. 

 In FY 2014, the Commission issued orders approving the ISO-New England (ISO-NE) Winter Reliability 

Program for 2013-2014 to ensure reliability during the winter months. 

 During FY 2014, the Commission issued a number of orders involving MISO’s designation of a number of 

generators as System Support Resources (SSR). SSR generators are those which are seeking to retire or 

suspend operation, but which are determined by MISO to be needed and required to operate to ensure 

reliability until alternative resources, (e.g., generation, transmission, or demand response, are in place to 

ensure reliability). The SSR orders addressed, inter alia, issues concerning MISO’s process for 

consideration of alternative resources, the appropriate level of compensation for SSRs, and the allocation 

of the cost of such compensation. 

 During FY 2014, the Commission issued a number of orders addressing filings to facilitate the integration of 

the Entergy, Inc. operating companies into the MISO regional transmission organization and markets, 

allowing the integration to take place successfully as planned in December 2013.

 During FY 2014, the Commission issued a number of orders addressing filings to facilitate the start on 

March 1, 2014, as planned, of the Southwest Power Pool’s (SPP) Day 2 market, called the Integrated 

Marketplace, which includes day-ahead and real-time energy and operating reserve markets with 

locational marginal pricing, financial transmission rights, virtual transactions, and a revised market power 

mitigation plan.

 During FY 2014, the Commission acted on 20 petitions for declaratory order in support of the development 

of new or repurposed crude oil and refined product pipelines to move increased supplies of oil and refined 

products to market. 
FY 2014 Performance and Accountability Report

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 During FY 2014, Commission staff’s efforts to promote settlements in electric utility and natural gas 

pipeline cases led to agreements resulting in savings of approximately $314 million stated on an annual 

basis for American energy consumers as well as facilitated the settlements of oil pipeline proceedings 

which secured approximately $15 million in refunds for the pipeline’s customers.

 During FY 2014, Commission staff facilitated several settlements among various parties which had entered 

into short-term energy transactions in the Pacific Northwest during the Western energy crisis in 2001, 

ending a history of long, protracted litigation for these parties.

OBJECTIVE 1.2: Increase compliance with the FERC rules; deter market manipulation.

The Commission’s oversight and enforcement program takes proactive steps to detect problems in energy 

markets and to reduce the probability that violations of applicable laws, the Commission’s regulations, or 

market rules will occur. FERC uses a balanced approach to oversight and enforcement efforts: conducting

surveillance and analysis of market trends and data; promoting internal compliance programs; employing

robust audit and investigation programs; and, when appropriate, exercising the Commission’s civil penalty 

authority to deter violations. FERC also makes market data transparent to the public and market participants so 

that market efficiency is promoted and anomalies and areas of concern may be identified and reported.

Description of Measure

The Commission’s Office of Enforcement (OE) issues audit reports to regulated entities that include a number 

of recommendations for corrective actions. These recommendations enforce FERC’s regulations of the 

interstate transmission of electricity, natural gas, and oil. The desired outcome is timely implementation of 

audit recommendations because it ensures greater compliance with Commission regulations and re-enforces a 

strong compliance culture throughout the industry. 

Explanation of Results

The FY 2014 baseline result represents the percent of recommendations implemented within the six month 

timeframe. OE issued 319 number of recommendations and 336, or 95% were implemented within 6 months.

Rationale for Targets

The FYs 2015 – 2018 targets are based on the Commission’s continued focus on promoting compliance 

programs in the regulated energy industry. A 95% implementation rate is appropriate in consideration of the 

Commission’s current authority and a company’s ability to implement costly or complex recommendations. 

While FERC has audit authority through Section 301 of the Federal Power Act (FPA), 16 U.S. Code § 825 (2012), 

it has no explicit authority to enforce the timeline and there is no statute in place to hold companies 

accountable to this specific deadline. 

Although a significant majority of recommendations can be implemented within six months, the timeline for 

completing corrective actions for certain recommendations may exceed the six month target, especially if they 

involve significant changes to current practices, polices, or procedures (e.g., major software upgrades). 

Performance Measure 4

Percentage of audit recommendations implemented within six months of issuance.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target - 95% 95% 95% 95%

Result 95% n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
FY 2014 Performance and Accountability Report

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OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2014

OBJECTIVE 1.2: INCREASE COMPLIANCE AND DETER MARKET MANIPULATION

 In FY 2014, Commission staff developed and improved its data analytic screens to incorporate newly 

available unmasked exchange data, as well as newly available Large Trader Report financial position data 

obtained pursuant to a memorandum of understanding on information sharing between the Commission 

and the Commodity Futures Trading Commission. Commission staff also improved electric market screens 

for both organized and exchange-traded electric markets utilizing using Order No. 760-related data, EQR 

data, Large Trader Report financial position data, e-Tags, and exchange data. These surveillance activities 

resulted in fact-finding outreach to a number of market participants and new investigations.

 In FY 2014, Commission staff conducted a review of the events surrounding the Polar Vortex, including the 

extreme price spikes in the natural gas market, natural gas pricing anomalies, and high electric generation 

costs that arose in light of the gas market conditions. One purpose of this extensive review was to 

determine if manipulative trading behavior contributed to the high natural gas prices and elevated 

electricity costs. Staff found no evidence of widespread or sustained market manipulation; however, the 

Office of Enforcement has opened an investigation, which alleges downward price manipulation related to 

the formation of a single monthly natural gas index. The Commission’s Office of Enforcement has opened 

two additional non-public investigations to determine whether certain generators may have improperly 

benefited from the constrained conditions in the electric markets.

 In FY 2014, Commission staff implemented comprehensive Order No. 760 data collections for NYISO and 

for the SPP Integrated Market and installed updated versions of the data collection for each of the other 

four organized markets. Each organized market submits to the Commission, on a daily basis, its latest data 

relating to physical and virtual offers and bids, market awards, resource outputs, marginal cost estimates, 

shift factors, financial transmission rights, internal bilateral contracts, uplift, and interchange pricing. Also 

during the year, several of the markets submitted data from as far back as January 2011 to improve the 

historical data set. Since the beginning of the fiscal year, the Commission has collected over 8.6 billion 

lines of data which is used to screen for market manipulation and other improper behavior within the 

markets. 

 Commission staff completed formula rate audits of South Carolina Electric and Gas Company, Idaho Power 

Company, NSTAR Electric Company, and San Diego Gas & Electric Company. These audits reinforced the 

Commission’s accounting, tariff rules, and regulations, and the jurisdictional companies were able to 

strengthen their compliance culture and programs through a rigorous implementation plan. Staff also 

conducted audits related to mergers (FirstEnergy Corporation) and transmission incentives (Southern 

Indiana Gas and Electric Company and Trans-Allegheny Interstate Line Company). These audits resulted in 

significant refunds and recoveries to customers.

 The Commission finalized eight settlements of investigations initiated by the Office of Enforcement, on a 

range of violations within the Commission’s jurisdiction, including, for example, violations of the antimanipulation rule, Reliability Standards, prior filing requirements, OATT requirements, and hydroelectric 

facility licenses. 

 Office of Enforcement staff filed a petition in the U.S. District Court for the Eastern District of California for 

an order affirming the Commission’s penalty assessment order against Barclays Bank, PLC and four of its 

traders. Staff also filed petitions in the U.S. District Court for the District of Massachusetts for orders 

affirming the Commission’s penalty assessment orders against Lincoln Paper and Tissue LLC, Competitive 

Energy Services, LLC, and Dr. Richard Silkman. 
FY 2014 Performance and Accountability Report

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 In May 2014, the Commission set for hearing before an administrative law judge issues raised in its 2013 

Order to Show Cause in the BP America Inc. matter involving alleged violations of the Natural Gas Act and 

the Commission’s anti-manipulation rule.

 In FY 2014, the Commission received 62 self-reports of violations. Staff reviewed every self-report 

promptly to determine if any warranted opening an investigation. The Commission also received 203 calls 

to its Enforcement Hotline, each of which received prompt attention.

 The Commission’s enforcement staff opened 17 investigations and continued dozens of other 

investigations involving potential market manipulation and other Commission regulations, tariff violations, 

and reliability violations. 

The Commission successfully implemented Order No. 770, changing the process for filing Electric Quarterly 

Reports (EQR) and adopting a web-based approach to filing EQRs. The new approach serves the public and 

enhances market transparency by upgrading the EQR software from an outmoded, ineffective, and 

unsustainable system. Market transparency is enhanced under the new software by ensuring that filed data is 

screened for formatting and errors before it is made public. 

Goal 2: Promote Safe, Reliable, Secure, and Efficient Infrastructure 

Promote the development of safe, reliable, secure, and efficient infrastructure that serves the public interest. 

Objective 2.1: Foster economic and environmental benefits for the nation through approval of natural gas and 

hydropower projects.

Demand for natural gas in the United States is at its highest levels on record, and natural gas production 

continues to increase due to the development of shale gas. Among its many uses, natural gas is a substantial 

and growing resource for electric power generation, in part due to the current low price of natural gas. The 

responsible development of interstate natural gas infrastructure— pipelines, storage, and LNG facilities—is a 

critical link in ensuring that natural gas supply can reach market areas. 

Interest in developing hydropower projects has also increased, in part because hydropower offers the benefits 

of a renewable, domestic energy source that supports efficient, competitive electric markets by providing lowcost energy reserves and ancillary services. Hydropower projects may also provide other public benefits such as 

environmental protection and enhancement, water supply, irrigation, recreation and flood control.
FY 2014 Performance and Accountability Report

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Description of Measure

FERC-regulated entities must obtain authorization before beginning the construction of natural gas pipeline, 

natural gas storage, LNG, and hydropower facilities and before implementing measures required from 

relicensing a hydropower facility. In order to maximize both the economic and environmental benefits of these 

projects, the Commission must process applications in an efficient and timely manner and ensure that its 

authorizations are based on thorough environmental analysis. FERC has established timeframes that balance 

the competing demands of timeliness and thorough analysis. 

Explanation of Results

The FY 2014 baseline result reflects the Commission’s emphasis on consistently meeting its established 

timeframes in order to maximize the economic and environmental benefits of the proposed projects. The 

targets are split for hydropower and natural gas pipeline orders due to the inherent differences in the two 

programs. While each program is required to conduct thorough analysis in an efficient and timely manner, the 

processes in which to do so have different elements and unique requirements. 

Specifically, 16 out of 20, or 80% of hydropower orders were issued in a timely manner. Additionally, 68 out of 

68, or 100% of natural gas orders were issued within the appropriate timeframes. Six natural gas cases were 

removed from the calculation due to processing delays by other agencies.

Rationale for Targets

The FYs 2015 – 2018 targets reflect the Commission’s expectation to issue 75% of hydropower orders within 24 

months of issuance of either the Ready for Environmental Analysis Notice or the Notice of Application (as 

appropriate). For natural gas orders, filings are grouped into varying categories based on the size of the project 

and/or the complexity of the issues presented in the filing with target order issuance timeframes ranging from 

159 days to 480 days. The Commission expects to issue 90% of natural gas orders within the appropriate 

timeline depending upon the category the original filing. These targets reflect the Commission’s continued 

emphasis on meeting the growing demand for energy by responding to energy infrastructure applications with 

timely and well-reasoned decisions that protect the environment while fostering the growth for sustainable 

infrastructure.

 

Performance Measure 5

Percent of orders issued within established timeframes.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target -

Hydropower 

Orders: 75%

Natural Gas 

Orders: 90%

Hydropower 

Orders: 75%

Natural Gas 

Orders: 90%

Hydropower 

Orders: 75%

Natural Gas 

Orders: 90%

Hydropower 

Orders: 75%

Natural Gas 

Orders: 90%

Result

Hydropower 

Orders: 80%

Natural Gas 

Orders: 100%

n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2014

OBJECTIVE 2.1: REVIEW AND APPROVE NATURAL GAS AND HYDROPOWER PROJECTS

 The Commission issued hydropower related orders authorizing the construction of 12 new projects with a 

combined generating capacity of 1,444 MW. Ten of these orders (83%) were issued within two years of the 

REA notice.

 The Commission issued orders authorizing the construction and operation of approximately 407 miles of 

natural gas pipeline and nearly 398,000 horsepower of compression that created approximately 11.7 Bcf of 

natural gas transportation capacity.

 The Commission issued authorizations to three LNG export terminals capable of liquefying nearly 5.0 Bcf of 

natural gas per day.

 The Commission issued orders authorizing an additional 1.6 Bcf per day of underground natural gas 

storage capacity.

OBJECTIVE 2.2: Minimize risks to the public associated with FERC-jurisdictional energy infrastructure.

FERC is responsible for energy infrastructure subject to its jurisdiction including ensuring the safety of nonfederal hydropower projects and LNG facilities throughout their entire life cycle; overseeing the development 

and review of, as well as compliance with, mandatory reliability and security standards for the bulk power 

system; and collaborating with regulated entities and other governmental agencies at the federal and state 

levels to identify and seek solutions to threats to FERC-jurisdictional infrastructure from cyber and physical 

attacks. Through these actions, FERC minimizes risks to the public associated with jurisdictional infrastructure.

Description of Measure

In order to minimize risks to the public, licensees with hydropower facilities are required to implement safety 

programs that comply with Commission regulations and industry standards for the life of the facility. In 

addition, FERC requires all licensees with high and significant hazard dams to develop and obtain approval for a 

rigorous Owners Dam Safety Program, which acknowledges the dam safety responsibilities of each level of the 

licensee’s organization, establishes protocols for internal and external dam safety communication, and has 

clear designation of dam safety responsibilities among the licensee’s staff. To the extent that these efforts are 

successful, licensees will maintain compliant safety programs which will serve as an indicator of the 

effectiveness in achieving Objective 2.2.

Explanation of Results

The FY 2014 baseline result reflects a relatively new Commission requirement. In 2012, FERC began requiring 

licensees with high or significant hazard hydropower facilities to have an Owners Dam Safety Program. In FY 

2014, an emphasis has been placed on discussing the Owners Dam Safety Program at every annual inspection 

of a high or significant hazard dam. For licensees with a high or significant hazard dam but without an Owners

Dam Safety Program, the project engineers are monitoring and providing assistance to help the licensees 

develop a complete program. As a result of these efforts, currently, 64% (or 152 out of 239) of the licensees 

with high or significant hazard hydropower facilities have a complete Owners Dam Safety Program. This result 

Performance Measure 6

Percent of hydropower facilities that have approved dam safety programs.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target - 75% 80% 85% 90%

Result 64% n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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represents significant progress in getting the licensees to complete their programs since 2012, when FERC 

initially instituted the Owners Dam Safety Program requirement.

Rationale for Targets

Because dam safety is important and can save lives as well as protect homes, businesses, and the environment, 

the Commission is committed to increasing the number of licensees with a complete Owners Dam Safety 

Program. The incremental improvement over the next four years takes into consideration ongoing efforts by 

many of the licensees to develop such programs. If it is determined that the annual targets cannot or will not

be met, the Commission will consider providing more assistance to the licensees that have an on-going 

program. The assistance may come from holding informational meetings or by having one-on-one discussions 

with the licensee.

Description of Measure

The Commission seeks to detect and prevent potential structure failures and to ensure LNG facilities comply 

with requirements through physical inspections of LNG facilities. The recommendations issued by Commission 

staff address the safety of LNG facilities, including certain security issues, and reliability, which can also impact 

efficiency. Implementing recommendations associated with these inspections supports the Commission’s 

efforts to minimize risks to the public. This measure assesses whether LNG companies adequately 

implemented staff’s safety and reliability recommendations within the established timeframes. 

Explanation of Results

Prior to June 2014, Commission recommendations related to LNG facilities did not include specific target dates 

for implementation, therefore results for this measure are not available for FY 2014. Initial results will not be 

available until the end of the FY 2015 performance period. 

Rationale for Targets

The FYs 2015 – 2018 targets reflect the Commission’s priority to reduce risks to the public through the timely 

implementation of safety and compliance related recommendations associated with LNG facility inspections. 

Adding a target date for the completion of each recommendation is an internal enhancement to the 

Commission’s inspection program and should have a positive impact on safety and recommendation 

implementation rates. The Commission expects its efforts after the first full year to result in sustained 

performance of 90% timely implementation of recommendations by LNG facility owners and operators. 

 

2

In the Commission’s FYs 2014-2018 Strategic Plan, the title for this performance measure indicates that the 

“number” of LNG recommendations will be assessed. However, during the development of the baseline and 

targets in FY 2014, the measure was changed to the “percentage” of LNG facility recommendations 

implemented by established timeframes.

Performance Measure 7

Percentage2of LNG facility recommendations implemented by established timeframes.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target - 70% 90% 90% 90%

Result n/a n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
FY 2014 Performance and Accountability Report

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The Commission’s targets take into account various reasons why an LNG company may not implement a safety 

or reliability recommendation within the established timeframe, such as:

• Inadequate or re-prioritized funding within the timeframe;

• Disagreement with the recommended action or timeframe;

• Lack of concern for meeting the target date; 

• Assumption that an inadequate implementation strategy would be sufficient; 

• Complications discovered during implementation; 

• Contractor scheduling issues; 

• Parts or material acquisition issues; 

• Adverse weather; 

• Change of facility operating status to not operating; or 

• Other unforeseen circumstances.

Description of Measure

The annual amount of lost load resulting from unplanned disturbances on the bulk power system other than 

severe weather provides a measure of FERC’s impact on system reliability and serves as an indicator of the 

Commission’s effectiveness in achieving its Objective 2.2 to minimize risks to the public associated with FERCjurisdictional energy infrastructure. FERC will monitor causes of outages and the nature and frequency of 

emerging issues in order to inform the interpretation of the measure results.

Explanation of Results

The preliminary data for the baseline year being measured includes events from October 1, 2013 to September 

30, 2014. The total MW lost was 0.1% during the measured four quarters. The metric shows a consistent 

reliability level for the fiscal year 2014. 

Rationale for Targets

Any fiscal year with a major blackout event that has more than 0.5% of load loss, or multiple events of lesser 

magnitude that cumulative exceed 0.5% will be considered a poor performance year. 

Since mandatory standards development and enforcement began on June 18, 2007, two major, non-weatherrelated blackout events occurred – the February 26, 2008 Florida Blackout and September 8, 2011 ArizonaSouthern California Blackout. Maintaining load loss less than 0.5% is a challenging target that measures FERC’s 

impact for the actions taken. The target will not be met if a major non-weather blackout were to happen. 

The target scenario is challenging when considering the lag time that may result from factors that are largely 

outside of FERC’s control. For example, when FERC determines that poor performance warrants a directive to

develop a new mandatory reliability standard, there is typically a period of years until that standard is 

developed by NERC and implemented. Similarly, investigations of major outages can take several years. 

This target scenario is also challenging when considering technological changes facing the grid that are largely 

outside of FERC’s control. For example, changes in the generation mix along with potential retirements of some 

generation might pose challenges for operators.

Performance Measure 8

The amount of lost firm load Megawatts in a given year resulting from bulk power system transmission 

related events (unplanned outages), excluding weather related outages.

FY 2014 FY 2015 FY 2016 FY 2017 FY2018

Target - Below 0.5% Below 0.5% Below 0.5% Below 0.5%

Result 0.1% n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
FY 2014 Performance and Accountability Report

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OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2014

OBJECTIVE 2.2: MINIMIZE RISKS TO THE PUBLIC

 The Commission issued an order granting NERC’s continued application of the Find, Fix, Track and Report 

(FFT) program to moderate risk possible violations and expansion of the pool of FFT candidates to include 

possible violations with mitigation completion targets of one year. The order also noted staff’s annual 

sampling of FFTs, which tests whether included possible violations are appropriate for the FFT program 

and successfully remediated.

 The Commission reviewed 55 Notices of Penalty filed by the ERO addressing 888 violations of Reliability 

Standards, and reviewed 522 possible violations processed as FFTs.

 Commission staff issued data requests to six Regional Entities to determine readiness for winter 2014-15 

concerning generator unavailability resulting from frozen equipment during the January 2014 polar vortex 

and winter storms and the February 1-5, 2011 Southwest cold weather event.

 Commission staff initiated a joint staff review with NERC and the Regional Entities to gauge the electric 

utility industry’s level of preparation to recover quickly and efficiently from reliability events which have 

the potential to cause widespread adverse effects on the bulk power system. The review will assess the 

restoration plans and the clarity of the relevant Reliability Standards, and identify best practices and 

recommendations for effective restoration and recovery plans.

 The Commission approved the Electric Reliability Organization’s filed Reliability Standard on Frequency 

Response and Bias, which provides a consistent method for calculating the Frequency Bias component of 

Area Control Error. 

 The Commission approved the several Reliability Standards filed by the ERO, including: Geomagnetic 

Disturbance, which mitigates the impact of geomagnetic disturbances on the reliability of the Bulk-Power 

System by implementing Operating Procedures; Generator Relay Loadability, which sets load-responsive 

protective relays associated with generation Facilities at a level to prevent unnecessary tripping of 

generators during a system disturbance for conditions that do not pose a risk of damage to the associated 

equipment; and Contingency Reserve, which specifies the quantity and types of contingency reserve 

required to ensure reliability under normal and abnormal conditions.

 The Commission approved Version 5 of the ERO’s CIP Standards, which pertain to the cyber security of the 

bulk electric system. CIP version 5 includes new cyber security controls and extends the scope of the 

systems that are protected by the CIP Standards.

 In March 2014, the Commission directed the ERO to submit, on an expedited schedule, a reliability

standard to address the physical security of facilities most critical to the reliable operation of the BulkPower System. In July 2014, after receiving the ERO's response to that directive, the Commission proposed 

to approve with limited modifications the ERO’s physical security standard, which would require entities to 

identify their most critical facilities and implement measures to protect those facilities against physical 

attacks.

 The Commission approved the retirement of 34 requirements within 19 Reliability Standards that (1) 

provide little protection for Bulk-Power System reliability or (2) are redundant with other aspects of the 

Reliability Standards. The Commission also approved the withdrawal of 42 Commission directives for the 

ERO to develop modifications to Reliability Standards. The directives at issue have either been addressed in 

some other manner, are redundant with another directive or provide general guidance as opposed to a 

specific directive.
FY 2014 Performance and Accountability Report

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 Commission staff attended monthly calls with EPA about regulations that EPA may develop and their 

potential impact on reliability. Staff also attended the monthly conference call with RTOs on compliance 

with EPA’s Mercury and Air Toxics (MATS) rule.

 Commission staff assisted DHS/DOE/FBI/NERC with a 13-city physical security awareness campaign for the 

electric sector. Commission staff also partnered with DHS on voluntary, proactive cybersecurity 

assessments. Commission staff participated in the establishment and conduct of the Cybersecurity Forum 

for Independent and Executive Branch Regulators. This forum was formed to identify, coordinate, and 

deconflict independent approaches to cybersecurity by the regulators as well as their jurisdictional 

entities.

 Commission staff assisted with a DHS project undertaken pursuant to Section 9 of Executive Order 13636, 

regarding identification of critical infrastructure where a cybersecurity incident reasonably could result in 

catastrophic regional or national effects on public health or safety, economic, or national security.

 Commission staff has provided over 35 briefings to a variety of audiences including industry partners to 

share vulnerabilities and threats regarding physical and cyber security and best practices and mitigation 

measures to enhance security of critical energy infrastructure. Staff also has collaborated with NERC and 

industry partners on sharing best practices to facilitate enhanced energy infrastructure security.

 Commission staff worked with NERC to develop information bulletins and alerts to timely disseminate 

critical threat information across the energy sector.

 Commission staff has kept abreast of initiatives to better understand and protect the power grid against 

infrequent but significant events. For example, staff has participated in government and industry forums 

to better identify the impacts and mitigation measures from geomagnetic disturbances and

electromagnetic pulses, such as the DOE Electric Sector Coordinating Council and the Electric Grid 

Protection Executive Steering Committee.

Goal 3: Mission Support through Organizational Excellence

Achieve organizational excellence by using resources effectively, adequately equipping FERC employees for 

success, and executing responsive and transparent processes that strengthen public trust.

Objective 3.1: Manage Commission resources effectively and efficiently.

The Commission must prioritize resource allocations and make prudent investments in relation to specific 

program activities or challenges. These investments should yield returns which directly benefit the agency’s 

mission. Additionally, Federal statues require the Commission to recover its operating costs from the entities it 

regulates. The Commission must do this in a manner that avoids unnecessarily increasing the cost of energy to 

consumers. Given these considerations, the Commission must be steadfast in its commitment to use its 

resources in an efficient manner. In meeting the demands of this commitment, the Commission must 

consistently develop comprehensive resource plans, execute planned requirements through the delivery of 

compliant services, and monitor resource utilization through established control activities.
FY 2014 Performance and Accountability Report

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Description of Measure

In order to efficiently use its resources, the Commission must ensure planned staff levels are sufficiently 

maintained. Over two-thirds of the Commission’s budget is allocated to employee compensation. Any undue 

lapse in recruiting and hiring new employees has the potential to impact the ability of the Commission to 

recover its annual appropriation as required by statute. Additionally, the potential staff losses the agency could 

incur as a result of retirements or normal attrition impacts the ability of the agency to meet its objectives. Since 

the Federal Government’s Hiring Reform Initiative of 2011, the Commission has been employing strategies 

aimed at reducing the amount of time it takes to fill vacant positions. 

Explanation of Results

The FY 2014 baseline result of 55 days demonstrates the Commission’s commitment to hire employees in a 

timely manner to support the execution of FERC’s mission as well as its commitment to use its resources 

effectively. The FY 2014 result reflects several Commission efforts, including deploying an automated hiring 

system and increased coordination with hiring managers throughout the Commission. 

Rationale for Targets

The FYs 2015 – 2018 targets are based on maintaining the Commission’s historical actual hiring cycle time of 55

calendar days from need validation to offer and candidate selection. The Commission’s adoption of a 55-

calendar day hiring target accounts for the time between when the need for the position is validated to the 

date the candidate is selected and the offer is made. This targeted timeframe is a subset of the Office of 

Personnel Management’s (OPM) end to end hiring process 80-calendar day hiring model which measures the 

time between the need for the position is validated, to the date the candidate enters on duty. After analyzing 

the external factors that may lead to a candidate delaying their start date, such as the need to relocate or 

graduate from school, ending the hiring cycle calculation at the point of offer is a more relevant internal 

indicator of success with this measure. The targets take into account recent and ongoing efforts to maintain 

this level of success, including shared responsibility and accountability with human resource specialists and 

hiring managers to ensure vacancy paperwork is completed and submitted on time, instituting new tracking 

tools, and using the automated hiring system. 

Description of Measure

This measure is a direct indicator of how well the Commission manages the cost of delivering secure and 

effective technology solutions. These services must be delivered at a cost that is reasonable to the 

Commission.

Performance Measure 9

Average Hiring Cycle Time.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target - 55 calendar days 55 calendar days 55 calendar days 55 calendar days

Result 55 calendar days n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a

Performance Measure 10

Percent reduction in targeted information technology costs.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target

-

To be 

determined.

To be 

determined.

To be 

determined.

To be 

determined.

Result n/a n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
FY 2014 Performance and Accountability Report

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Explanation of Results

The Commission is continuing to develop baseline data for this measure, which includes realigning costs to 

services delivered. This is a significant effort that began in FY 2014 and will continue through FY 2015.

Rationale for Targets

The Commission has set a performance goal of developing a structured way to capture IT costs for services 

delivered and identifying targeted cost reductions. The Commission must carefully consider its service catalog, 

current levels of service, costing methodologies, and opportunities for cost reductions before setting targets. 

The Commission expects to complete this analysis and set out year targets for one third of its service catalog by

the end of FY 2015.

Description of Measure

The Commission must establish a design plan and budget for an extensive building modernization effort within 

its Headquarters facility. This budget will fund a multi-million dollar renovation effort that will span the next 5-6 

years. The Commission has requested adequate resources to cover the cost of the effort. The Commission will 

partner with the General Services Administration, private contractors and the facility owner to execute the 

required work. It is imperative that management closely monitors project performance relative to schedule and 

resources given the significant investment at play and the numerous entities involved. 

Explanation of Results

The FY 2014 result reflects the completion of critical planning milestones to support the overall building 

modernization project. Milestones in FY 2014 represent the Commission’s actions to provide information 

and/or funding to support either project activities in FY 2015 or key GSA milestones dependent on FERC’s 

timely action. Those specific milestones were 1) the completion of a requirements development study that will 

serve as a cornerstone for future project activities; 2) the execution of the lease renewal; 3) providing funding 

for the Headquarters design; and 4) identifying the location and initial requirements for swing space necessary 

to facilitate future construction activities. The completion of these activities positions the Commission well as 

we move forward with this effort.

Other Indicators

Project funding remains a critical outside factor. Presently, appropriations for FY 2015 are not finalized, which 

has a direct impact on the project schedule for the out-years.

Rationale for Targets

The target established for FY 2015 represent a continuation of critical planning activities as well as initial 

construction activities that establish the conditions necessary to finalize the project plan and establish budget 

and schedule milestones for the out years (2016-2018). 

Targets for FYs 2016 – 2018 will be determined upon completion of the Headquarters design phase in FY 2015.

Performance Measure 11

Time and cost of building modernization effort relative to established schedule and budget.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target -

6 Milestones 

completed.

To be 

determined.

To be 

determined.

To be 

determined.

Result 4 Milestones 

completed. n/a n/a n/a n/a

Status Initial Planning 

Milestones Met.

n/a n/a n/a n/a
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2014

OBJECTIVE 3.1: MANAGE RESOURCES EFFECTIVELY

• The Commission successfully transferred all mail and online documents from Google into a Microsoft 

environment, Microsoft O365. This migration achieved two goals: 1) a targeted reduction of cost of service 

for email; and 2) a standardized technology platform that leverages cloud based applications for email, 

collaboration and document storage.

• The Commission successfully completed its annual FISMA audit, conducted by the Department of Energy. 

The work done this year led to a successful audit that yielded no new findings and closed out prior findings.

• The Commission received an Unmodified Opinion on its FY 2014 financial statements and supporting

notes. As part of the annual audit of the Commission’s financial statements, the external auditors 

determined the Commission’s financial statements represent fairly in all material respects the 

Commission’s financial position. 

• As part of the Commission’s FY 2014 assessment of its internal control over financial reporting, the 

Commission asserts reasonable assurance that its internal controls are operating effectively.

• In FY 2014, the Commission procured a new eLibrary system that will replace the current system. The 

Commission’s eLibrary system serves as the system of record for all FERC-issued orders, filings, and public 

comments. The system is used by Commission staff and is the single entry point for the public to access 

docketed information. This refresh will further leverage cloud technologies and will reduce or eliminate 

vulnerabilities in the current system. The system is expected to be implemented in FY 2015. 

• The Commission expanded its recruiting program to include social media outreach through Facebook, 

Twitter, and LinkedIn. This effort supports the Commission’s proactive hiring efforts and enhanced its 

ability to connect with candidates nationwide, as well as market the Commission’s on-campus presence 

during recruitment fairs. 

Objective 3.2: Empower Commission employees to drive success.

Commission employees are directly responsible for achieving FERC’s mission. On an annual basis, the 

Commission allocates over two-thirds of its budget to directly cover the compensation costs of its employees. 

Given this significant investment, the Commission places extremely high value on its employees and is focused 

on ensuring their success. The Commission seeks to become an employer of choice for individuals who can 

contribute a diverse set of needed skills. With this objective in mind, the Commission recognizes that a model 

regulatory organization must ensure that its employees are equipped with the requisite tools and services they 

need to accomplish the mission.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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Description of Measure

The Commission must maintain a highly skilled workforce to address its regulatory responsibilities. The 

deployment of a competency-based training program addresses critical developmental needs the Commission 

will be required to address due to the likelihood of 30% of the current workforce retiring within the next five 

years. A competency-based training program will ensure employees will be equipped with the requisite 

knowledge to perform their job expectations. This measure provides an indication of FERC’s progress in 

developing and deploying a competency-based training program. 

Explanation of Results

The FY 2014 result reflects the completion of critical resource planning milestones necessary to establish and 

deploy a competency-based training program. Specifically, the Commission has assigned additional FTE 

resources, deployed a learning management system and is seeking a contractor to support this effort. In 

addition, the Commission developed project milestones that will accurately track progress towards meeting the 

targets and ultimate completion of the competency-based training program.

Rationale for Targets

Establishing and deploying a competency-based training program requires significant effort and is a significant 

change in the current learning and development strategy. The Commission’s project plan spreads the workload 

evenly over the strategic plan period so that by the end of FY 2018, a competency based training program will 

be utilized for 30% of FERC’s most populous occupations. In order to be successful, the Commission must 

complete 100% of milestones in each year. The project plan and milestones established will reflect the full 

execution of the resource plan established in the baseline period. The project plan and annual targets 

represent the support of senior leadership, subject matter experts and other key stakeholders.

Description of Measure

The Commission must ensure that employee performance is aligned with the Commission’s strategic goals and 

that employees have the resources they need to accomplish the Commission’s goals. Using the Federal 

Employee Viewpoint Survey (FEVS) to measure employee perceptions on the Commission’s performance 

management system and the adequacy of resources is essential for the Commission to fulfill its mission. For 

purposes of this measure, employee satisfaction favorability rating is defined as the percentage of employees 

Performance Measure 12

Percent of milestones that are met in the deployment of a competency-based training program using 

automated tools.

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Target -

100% of planned 

milestones 

achieved.

100% of planned 

milestones 

achieved.

100% of planned 

milestones 

achieved.

100% of planned 

milestones 

achieved.

Result

Resource 

Planning 

Completed.

n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a

Performance Measure 13

Employee Satisfaction Favorability Rating.

FY 2014 FY 2015 FY 2016 FY 2017 FY2018

Target - 69% 69% 69% 71%

Result 69% n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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who responded favorably to questions related to performance management and adequacy of resources in the 

FEVS.

Explanation of Results

The FY 2014 result reflects the Commission’s weighted average score of a total of fifteen questions from the 

FEVS relating to performance management and resource adequacy. The Office of Personnel Management 

(OPM) considers a response of at least 65 percent positive as a strength. Based on OPM standards, the overall 

employee satisfaction favorability result of 69% for FY 2014 is strength. Of the fifteen questions used to 

calculate this rating, the ones with the highest ratings (above 84% positive) were: (a) In the last six months, my 

supervisor has talked with me about my performance and (b) employees are protected from health and safety 

hazards on the job. The questions with the lowest ratings (below 50%) were: (a) In my work unit, differences in 

performance are recognized in a meaningful way and (b) Creativity and innovation are rewarded. The FY 2014 

favorability results do not reflect the Commission’s upcoming renovation effort to implement its facilities 

modernization plan, which will span the next 5-6 years.

Rationale for Targets

The targets established for FYs 2015 – 2018 represent the Commission’s desire to maintain, and even to slightly 

improve, its favorability rating in two key areas despite upcoming challenges related to the building 

modernization effort. The Commission will develop action plans to ensure transparency of information and 

employee engagement regarding the modernization plan. In addition, the Commission will focus on improving 

the performance management system during this period of time. 

OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2014

OBJECTIVE 3.2: EMPOWER EMPLOYEES

• The Commission established a Diversity and Inclusion Strategic Plan in response to the President’s 

Executive Order on Diversity and Inclusion, Executive Order 13583: “Establishing a Coordinated 

Government-wide Initiative to Promote Diversity and Inclusion in the Federal Workforce.” As part of 

these efforts, the Commission implemented a process for establishing and supporting Employee Resource 

Groups. The Commission has encouraged groups of employees with common interests to formalize their 

professional relationships creating a positive work environment by actively contributing to the 

Commission’s mission, values, and efforts specific to diversity and inclusion. In FY 2014, two groups have 

been formed, EL FERC, a Hispanic employee resource group, and FERC Vets, a Veterans employee resource 

group.

• The Commission installed new entry turnstiles and ID card readers at all Headquarters Building entrances 

to support its security and safety efforts. The Commission implemented additional requirements that have 

facilitated employee accountability as part of its occupancy emergency planning efforts. 

Objective 3.3: Facilitate public trust and understanding of Commission activities by promoting transparency, 

open communication, and a high standard of ethics.

Facilitating understanding of how the Commission carries out its responsibilities and maintaining public trust in 

the Commission are important components of the Commission’s commitment to organizational excellence. 

Trust and understanding increase acceptance of FERC decisions and reduces the potential for contentiousness 

toward FERC rules and regulations, thus enabling the creation and enforcement of policy. The Commission 

advances this objective by promoting transparency and open communication with respect to conduct of the 

Commission’s business, thereby increasing awareness and understanding of the Commission’s activities. The 

Commission furthers this objective by cultivating relationships with sister government agencies and 

stakeholder groups, which supports understanding of Commission procedures and actions. The Commission 

also promotes a high standard of ethics, which encourages public confidence in the Commission’s activities and 

ability to fulfill its responsibilities.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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Description of Measure

Timely communication with stakeholders helps to demonstrate a spirit of transparency and openness that is 

essential to maintaining public trust and understanding. Accordingly, FERC has established timeframes for 

responding to requests for information, for disseminating policy decisions and actions, for the issuance of 

approved orders, and for public notification of filings submitted to the Commission as well as Off-the-Record 

(Ex Parte) Communications. The extent to which FERC meets these timelines is an indication of its performance 

with regard to timely communication and serves as an indicator of the Commission’s effectiveness in achieving 

Objective 3.3.

Explanation of Results

The FY 2014 result reflects the weighted average of the four separate components of this measure, i.e., 

eFilings, electronic issuances, paper filings at HQ, and paper filings at the Regional Offices. Historical data exists 

for the first three components, with results generally averaging at 96% timely dissemination or higher. The last 

component had not previously existed as a specific target. FERC estimated the baseline result at 25% timely 

dissemination which reflects the fact that this filing channel relies upon postal mail and is subject to significant 

processing delays.

Rationale for Targets

The targets established for FYs 2015 – 2018 represent the Commission’s commitment to openness and 

transparency. The Commission desires to achieve and sustain a high level of performance across all four 

separate components of this measure. The targets take into consideration differing thresholds for timeliness 

depending on the type of document, the extent to which the document is processed electronically, and the 

degree of control which FERC exercises over the document filing channel. 

OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2014

OBJECTIVE 3.3: FACILITATE PUBLIC TRUST AND UNDERSTANDING OF FERC ACTIVITIES

 Commission staff addressed hundreds of questions, including from the general public, regarding contested 

matters pending before the Commission, including a proposal to establish the Lower Hudson Valley 

Capacity Zone within the New York Independent System Operator footprint, a proposal seeking approval to 

construct facilities to export liquefied natural gas from the Cove Point terminal, and proposals for 

certification of possible natural gas pipelines. During FY 2014, Commission staff organized noteworthy 

meetings and briefings with members of Congress as well as several key stakeholder organizations, such 

as: a CIP Standards briefings to keep members of NARUC informed about the Commission’s recent 

rulemaking and a resource adequacy briefing for NARUC which provided an opportunity to discuss recent 

court cases and present the Commission’s views.

 The Commission met with several international energy groups, including: a large delegation from China’s 

national energy agencies; several delegations from Japan who are involved in restructuring their country’s 

electric industry and regulatory structures; and representatives from the Brazil hydro industry, in a joint 

meeting with the U.S. Army Corps of Engineers.

 The Commission enhanced its social media presence in order to communicate more effectively with the 

public and to provide an avenue for interested parties to maintain awareness of Commission actions.

Performance Measure 14

Percent of Commission filings and issuances that are disseminated to public within established timeframes

FY 2014 FY 2015 FY 2016 FY 2017 FY2018

Target - 86% 92% 96% 97%

Result 81% n/a n/a n/a n/a

Status Baseline n/a n/a n/a n/a
FY 2014 Performance and Accountability Report

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 The Commission’s ethics program was recognized by the Office of Government Ethics as a model practice,

in part because ethics training was provided to all Commission staff instead of limiting the training to 

financial disclosure filers. 

FINANCIAL PERFORMANCE OVERVIEW

As of September 30, 2014, the financial condition of the Commission was sound with sufficient funds to meet 

program needs and adequate controls were in place to ensure Commission obligations did not exceed budget 

authority. The Commission prepared its financial statements in accordance with the accounting standards 

codified in the Statements of Federal Financial Accounting Standards and with OMB Circular No. A-136, 

Financial Reporting Requirements.

Sources of Funds. 

The Commission is financed from offsetting collections. However, the Commission initially receives an 

appropriated amount from the Treasury general fund at the beginning of the fiscal year, which is used to fund

its operating and capital expenditures. Throughout the year, the Commission collects monies through annual 

charges and filing fees and returns the appropriated amount to the Treasury general fund at year-end, resulting 

in a net zero appropriation to the Treasury general fund. The offsetting collections serve as the financing 

source for any unexpended appropriations at year-end. 

Additional funds available to obligate in FY 2014 were $21.4 million from prior-year unobligated appropriations 

and $1.9 million of prior-year obligations that were subsequently de-obligated in the current year. The sum of 

all operating funds available to obligate in FY 2014 was $327.9 million. Separately, the Commission receives an 

appropriation from OMB to pay states the fees collected for the occupancy and use of public lands. The 

Commission’s payment to states budget authority for FY 2014 was $4.3 million, which included a $0.3 million 

sequestered amount that was identified as temporarily unavailable.

Consistent with the requirements of the Omnibus Budget Reconciliation Act of 1986, as amended, the 

Commission collected fees to offset 100% of its budget authority in FY 2014.
FY 2014 Performance and Accountability Report

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Costs by Function. The Commission incurred costs of $306.8 million in FY 2014, which was an increase of $1.6 

million from FY 2013. Approximately 71 percent of costs were used for salaries and benefits. The remaining 29 

percent was used to obtain technical assistance for the Commission's principal regulatory programs, to cover 

operating expenses, staff travel, and reimbursable work. For FY 2014, Salaries and benefits decreased by $11.2 

million as compared to FY 2013 with the net effect on the other cost categories of an increase of $12.8 million.

Costs by Function (millions)

Audit Results. The Commission received an unmodified audit opinion on its FY 2014 financial statements. This 

was the twenty first consecutive year the Commission has received an unmodified opinion. For FY 2014, the 

Commission reported its Statement of Changes in Net Position and the equity section of its Balance Sheet 

differently to accurately report how it is financed. As a result, the Commission restated the FY 2013 Statement 

of Changes in Net Position and Balance Sheet to reflect the change.

Financial Statement Highlights. The Commission's financial statements summarize the financial activity and 

financial position of the agency. The financial statements and footnotes appear in the financial section of this 

report. 

Analysis of the Balance Sheet

The Commission's assets were approximately $112.8 million and $117.6 million as of September 30, 2014 and 

2013, respectively. FY 2014 decreased by $4.8 million as compared to September 30, 2013. The assets 

reported in the Commission's Balance Sheet are summarized in the Asset Summary table below.

Assets Summary (millions)

Assets FY 2014 FY 2013

Fund Balance with Treasury $90.8 $76.4

Accounts Receivable, net 9.4 29.1

Property and Equipment, net 12.6 12.1

Total Assets $112.8 $117.6

The Fund Balance with Treasury represents the Commission's largest asset of $90.8 million as of September 30, 

2014, which is an increase of $14.4 million over the FY 2013 balance. This increase is primarily due to a higher 

amount of unpaid obligations, approximately $9 million and the change in prior year unpaid obligations of $1.8 

million at the end of FY 2014 as compared to FY 2013. 

The Accounts Receivable, net has a balance of $9.4 million as of September 30, 2014. This balance represents 

the outstanding amounts due from annual charges, civil penalties or other penalties issued by the Commission 

Costs by Function FY 2014 FY 2013

Salaries and Benefits $216.6 $227.8

Travel/Transportation 3.1 2.8

Rent/Communication/Utilities 26.1 24.9

Contract Support 49.7 43.8

Printing/Supplies/Other 11.3 5.9

Total Costs $306.8 $305.2
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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to entities under its regulation. The $19.7 million net decrease in FY 2014 compared to FY 2013 is primarily due 

to writing off uncollectible civil penalties of approximately $13.8 million; and $5.6 million of the decrease is a 

result of the due date for annual charges occurring later in September 2013 than in 2014, resulting in higher 

receivables at the end of 2013 and thus higher collections of those receivables in FY 2014. This allowed the 

Commission to collect more of the accounts receivable as opposed to the previous fiscal year.

The Property and Equipment, net was $12.6 million as of September 30, 2014, an increase of $0.5 million over 

FY 2013. The balance is comprised of the net value of the Commission’s equipment, furniture, leasehold 

improvements, computer hardware and software. The $0.5 million net increase is primarily due to the ongoing development of the internal software and related capital items which was offset by reductions in 

Equipment, Furniture, Leasehold Improvements, and ADP Software.

The Commission's liabilities were $62.1 million as of September 30, 2014. The Liabilities Summary table shows 

a decrease in total liabilities of $13.0 million over FY 2013. The decrease is primarily due to writing off of 

uncollectible civil penalties. The $62.1 million balance consists primarily of accrued expenditures for payroll, 

benefits, operating expenses, and collected disgorged funds. 

Liabilities Summary (millions)

Liabilities FY 2014 FY 2013

Accounts Payable $14.9 $13.4

Federal Employee Benefits 5.7 5.2

Resources Transferable to 

Treasury and Other Federal 

Entities

1.5 21.1

Accrued Leave 14.6 14.7

Other Liabilities 25.4 20.7

Total Liabilities $62.1 $75.1

The difference between total assets and total liabilities is the Net Position. The Commission’s net position was 

approximately $50.8 million as of September 30, 2014. The increase in net position in FY 2014 compared to FY 

2013 is the result of increased financing sources on hand at the end of FY 2014.
FY 2014 Performance and Accountability Report

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Analysis of Statement of Changes in Net Position

The Statement of Changes in Net Position reports the change in net position during the reporting period. The 

Commission’s net position was $50.8 million and $42.6 million at September 30, 2014 and 2013, respectively. 

Net position is affected by changes in the Commission’s Cumulative Results of Operations. The increase in net 

position in FY 2014 compared to FY 2013 is the result of higher financing sources on hand at the end of FY 2014 

as compared to the end of FY 2013.

Net Position Summary (millions)

Position FY 2014 FY 2013

Unexpended Appropriations $0 $0

Cumulative Results of 

Operations 50.8 42.6

Total Net Position $50.8 $42.6

Analysis of the Statement of Net Cost of Operations

The Statement of Net Cost presents the net cost of the Commission's three strategic goals as identified in the 

Commission’s Strategic Plan. The purpose of the statement is to show separately the components of the net 

cost of operations that can be linked to the costs of program performance under the Government Performance 

and Results Act of 1993 (GPRA). Net costs by strategic goal are shown in the Summary Net Cost of Operations 

table below.

Net Cost of Operations (dollars)

Operation FY 2014 FY 2013

Just and Reasonable 

Rates, Terms, and 

Conditions

$0 ($19,406)

Infrastructure (3,371) (16,229) 

Mission Support 0 0

Net Cost of Operations ($3,371) ($35,635)

The Commission's net cost of operations for FY 2014 was ($3,371) as a result of prior year unbilled 

reimbursable costs. The Commission is a full cost recovery agency and recovers all of its costs through the 

allocated annual charges to the entities that it regulates.

Analysis of the Statement of Budgetary Resources 

The Statement of Budgetary Resources shows the sources of budgetary resources available and the status at 

the end of the period. It represents the relationship between budget authority and budget outlays, and 

reconciles total obligations to total outlays. For FY 2014, the Commission had budgetary resources available of 

$332.1 million, the majority of which was derived from offsetting collections. This represents an increase of 

$18.1 million over FY 2013 budgetary resources available of $314.0 million. The increase in the Commission’s 

budgetary resources was a result of not being sequestered in FY 2014 as compared to the $15.3 million 

sequestered in FY 2013.

The status of budgetary resources includes obligations incurred of $304.4 million, or 91.7 percent of funds 

available. Similarly, FY 2013 obligations incurred were $292.6 million, or 93.2 percent of funds available. The 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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unobligated budget authority available at September 30, 2014 was $27.6 million, which is an increase of $6.2 

million over the FY 2013 amount of $21.4 million.

Total net outlays for FY 2014 were $42.9 million, which represents a $262.8 million decrease over FY 2013 net 

outlays of $305.7 million. The decrease from last year is a result of approximately $262.7 million reduced 

distributed offsetting receipts and a small decrease in gross outlays in FY 2014 as compared to FY 2013. The 

decrease in distributed offsetting receipts was largely due to a $282.1 million decrease in civil penalty 

collections in FY 2014 netted by $19.7 million in excess appropriations.

Analysis of the Statement of Custodial Activity

The Statement of Custodial Activity displays the total Custodial Revenue and Disposition of Collections related 

to that revenue activity. This statement ensures that revenue billed and collected by the Commission on behalf 

of other federal agencies will not be reported twice as revenue on the consolidated government’s Statement of 

Net Cost. In FY 2014, the Commission reported $28.7 million in custodial revenue compared to $341.6 million 

in FY 2013. The majority of the FY 2014 decrease over FY 2013 is due to reduced collections of civil penalties of 

approximately $282.1 million that was subsequently transferred to the U.S. Treasury, and the change in the 

accrued collections of $29.0 million. The change in accrued collections primarily consists of $13.8 million 

higher receivables in FY 2013 that were written off as uncollectable in FY 2014 causing a $27.7 million decrease. 
FY 2014 Performance and Accountability Report

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CONTROLS, SYSTEMS, AND LEGAL COMPLIANCE

This section provides information on the Commission's compliance with the:

 Federal Managers' Financial Integrity Act of 1982;

 Revised OMB Circular No. A-123;

 Federal Financial Management Improvement Act of 1996;

 Prompt Payment Act;

 Debt Collection Improvement Act of 1996; and

 Improper Payments Information Act (IPIA)

Management Assurances

During Fiscal Year 2014, the Commission focused its efforts on assisting consumers in obtaining reliable, 

efficient, and sustainable energy services at a reasonable cost through appropriate regulatory and market 

means. In fulfilling this mission, the Commission has pursued three primary goals. First, we have worked 

diligently to ensure that rates, terms and conditions for jurisdictional services, including wholesale sales and 

transmission of electric energy and natural gas, are just, reasonable and not unduly discriminatory or 

preferential. Second, we continue to promote the development of safe, reliable, and efficient energy 

infrastructure that serves the public interest. Third, we are achieving organizational excellence by maintaining 

processes and providing services in accordance with governing statutes, authoritative guidance, and prevailing 

best practices. We are progressing in each of these areas while we continue to improve our capabilities to meet

the challenges of the energy issues confronting our nation.

To accomplish our goals, we must manage our resources efficiently and integrate our budget, performance 

measures, and management controls to improve performance and accountability. Our OMB A-123 internal 

control program is helping us accomplish this by monitoring our financial, human capital and information 

resources to safeguard our assets, improve the integrity of our reporting, and use our resources more 

effectively in reaching our goals. Problems that impede our progress or our ability to safeguard our assets 

continue to be brought to the attention of management and are addressed appropriately.

For example, this year the Commission became aware of an incident where internal processes regarding the 

treatment of certain energy infrastructure information may not have been followed, contributing to confusion 

as to the proper protected status of sensitive information that the Commission created with respect to the 

nation's electric grid, as well as to the disclosure beyond relevant industry and government officials of parts of 

that information. Although the Commission believes that this incident was a unique occurrence and that its 

current internal processes are reasonable, the Commission quickly took steps to evaluate this matter and 

ensure appropriate controls are in place. At the Commission's request, the Department of Energy Inspector 

General (DOE IG) is conducting a review of both the particular incident, in which the Commission treated the 

information at issue as Critical Energy Infrastructure Information, as well as the existing Commission controls 

for sensitive energy infrastructure information. As recommended by the DOE IG, the Commission requested a 

classification determination of the information at issue from relevant classification authorities, which stated 

that they view the information as sensitive but unclassified. Prior to completion of the IG’s review, the 

Commission has already taken steps to enhance further its protection of sensitive energy infrastructure 

information. It is making procedural modifications to ensure this information is treated securely throughout its 

mandated retention cycle and is providing additional guidance to employees regarding the appropriate 

treatment and disclosure of CEII. Moreover, the Commission will seek to implement any recommendations 

provided by the IG upon the issuance of its final report in this matter. 

More generally, the Commission's internal control program enhances our ability to safeguard government 

assets from fraud, waste and abuse. We will continue to maintain a strong management control system. The

Commission's management is responsible for establishing and maintaining effective internal control and 
FY 2014 Performance and Accountability Report 

Federal Energy Regulatory Commission 

Page 34

financial management systems that meet the objectives of the Federal Managers' Financial Integrity Act 

(FMFIA). In accordance with OMB Circular No. A-123-Management's Responsibility for Internal Controls, we 

evaluated the effectiveness and efficiency of our internal controls over operations and our compliance with 

applicable laws and regulations as of September 30, 2014. Based on the results of this evaluation, the 

Commission identified a material weakness due to one instance of noncompliance of following federal 

accounting standards (i.e., GAAP), which resulted in restating the FY 2013 Balance Sheet and Statement of 

Changes in Net Position to correct a material misstatement. Other than this exception, the Commission can 

provide reasonable assurance that its internal controls over the effectiveness and efficiency over operations 

and compliance with laws and regulations were operating effectively in its design and operation as of 

September 30, 2014. 

In addition, the Commission assessed the effectiveness of internal controls over financial reporting, which 

includes the safeguarding of assets, and our compliance with applicable laws and regulations in accordance 

with the requirements of OMB Circular A-123, Appendix A. The results of this assessment found one material 

weakness in the design of our controls over financial reporting. This exception resulted in the restatement of 

the FY 2013 Statement of Net Position and Balance Sheet to correct a material misstatement. Other than this 

exception, the Commission can provide reasonable assurance that its internal controls over financial reporting 

as of June 30, 2014, are operating effectively. 

Furthermore, the Federal Financial Management Improvement Act (FFMIA) requires agencies to implement 

and maintain financial management systems that are substantially in compliance with federal financial 

management system requirements, federal accounting standards promulgated by the Federal Accounting 

Standards Advisory Board (FASAB), and the U.S. Standard General Ledger (USSGL) at the transaction level. The 

evaluation results of the Commission’s review indicated one instance of noncompliance related to federal 

accounting standards as noted above. Other than this exception, the results found the Commission to be in 

substantial compliance with FFMIA. 

Cheryl A. LaFleur 

Chairman 

Federal Energy Regulatory Commission 

November 2014 

Federal Managers’ Financial Integrity Act of 1982

The Federal Managers' Financial Integrity Act of 1982 (Integrity Act) mandates that agencies establish controls 

that reasonably ensure that: (i) obligations and costs comply with applicable laws; (ii) assets are safeguarded 

against waste, loss, unauthorized use, or misappropriation; and (iii) revenues and expenditures are properly 

recorded and accounted for. This act encompasses program, operational, and administrative areas as well as 

accounting and financial management. The Integrity Act requires the Chairman to provide an annual assurance 

statement on the adequacy of management controls and conformance of financial systems with Government 

wide standards. 

Management Control Review Program.

Annually, managers throughout the Commission are responsible for ensuring that effective controls are 

implemented in their areas of responsibilities. Each office director and regional administrator prepared an 

annual assurance statement that identified any control weaknesses that required the attention of the 

Chairman. These statements were based on various sources and included:

 Management knowledge gained from the daily operation of agency programs and reviews; 

 Management reviews; 

 Annual performance plans; and, 
FY 2014 Performance and Accountability Report 

Federal Energy Regulatory Commission 

Page 35

 Inspector General and Government Accountability Office reports. 

The Commission's ongoing management control program requires, among other things, that management 

control deficiencies be integrated into office action plans. The action plan process has provisions for periodic 

updates and attention from senior managers. The management control information in these plans, combined 

with the individual assurance statements discussed previously, provides the framework for monitoring and 

improving the agency's management controls on an ongoing basis. 

FY 2014 Integrity Act Results

The Commission evaluated its internal controls over financial reporting for the fiscal year ending September 30, 

2014. Based on the results of this evaluation, the Commission identified one instance of noncompliance. As a 

result of an error related to the reporting of unexpended appropriations in the FY 2013 financial statements, 

the Commission’s FY 2013 Balance Sheet and Statement of Changes in Net Position were restated to correct a 

material misstatement. Other than this exception, the Commission’s internal controls are operating effectively 

and no other material weaknesses were found in the design or operation of our internal controls. 

FY 2014 OMB Circular No. A-123, Appendix A 

The Commission evaluated its internal controls over financial reporting for the fiscal year ending September 30, 

2014. Based on the results of this evaluation, the Commission provides reasonable assurance that internal 

controls over financial reporting were operating effectively, as of June 30, 2014, with the exception of the 

financial reporting process, where a material weakness has been identified. 

Federal Financial Management Improvement Act of 1996

The Federal Financial Management Improvement Act of 1996 (FFMIA) requires each agency to implement and 

maintain systems that comply substantially with: (i) FFMIA system requirements, (ii) applicable Federal 

accounting standards, and (iii) the U.S. standard general ledger at the transaction level. The FFMIA requires the 

Chairman to determine whether the agency's financial management systems comply with the FFMIA and to 

develop remediation plans for systems that do not comply. 

FY 2014 FFMIA Results. 

As of September 30, 2014, the Commission evaluated its financial management system to determine if it 

complied with applicable Federal requirements and accounting standards required by FFMIA. As a result of this 

evaluation, the Commission identified one instance of a noncompliance with applicable Federal accounting 

standards (i.e., GAAP). As a result, the Commission’s FY 2013 Balance Sheet and Statement of Changes in Net 

Position were restated to correct a material misstatement. Other than this exception, the results found the 

Commission to be in substantial compliance with FFMIA. 

Prompt Payment Act 

The Prompt Payment Act requires Federal agencies to make timely payments to vendors for supplies and 

services, to pay interest penalties when payments are made after the due date, and to take cash discounts 

when they are economically justified. As of September 30, 2014, the Commission made 98 percent of its 

payments, that were subject to the Prompt Payment Act, on-time. The Commission incurred $924.84 in 

interest penalties in FY 2014 and $209.64 in FY 2013. The agency made 100 percent of its vendor payments 

electronically in FY 2014. 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 36

Debt Collection Improvement Act of 1996 

The Debt Collection Improvement Act of 1996 was enacted to enhance the ability of the Federal Government 

to service and collect debts. The agency goal is to maintain the delinquent debt owed to the Commission at 

year-end at less than two percent of its current annual billings. As of September 30, 2014, delinquent debt was 

approximately $0.8 million, which is approximately one quarter of a percent of its current annual billings. The 

Commission continues to aggressively pursue the collection of delinquent debt and continues to meet the 

requirement that all eligible delinquent debt over 120 days is referred to the U.S. Treasury for collection.

Improper Payments Information Act (IPIA) Reporting

The Commission has performed a review of its payments through September 30, 2014 and it has processed 99 

percent of its payments without error. The Commission found only 54 erroneous payments out of 5,828 total 

payments. The value of those erroneous payments totaled $0.5 million out of total payments of $56.5 million 

for FY 2014.

POSSIBLE FUTURE EFFECTS OF EXISTING EVENTS AND CONDITIONS

Certain hydroelectric licensees have filed appeals claiming the Commission erroneously accepted certain “other 

agency costs” (costs incurred by Other Federal agencies in administering Part I of the FPA component of the 

licensees’ annual charges) in its calculation of FY annual charges. In addition, certain licensees have filed 

appeals against their hydropower administrative annual charges to seek a partial or 100% municipal 

exemption. The combined liability of these appeals total $4.3 million and $4.7 million as of September 30, 2014 

and 2013, respectively, and is included herein as revenue collected under protest. The FY 2014 liability is fully 

funded and therefore poses no adverse or material future effect on the Commission’s financial position. 

In addition, the Commission has one Equal Employment Opportunity and two Freedom of Information Act 

cases pending where the probability of success for the claimants is reasonably possible. The amount of 

monetary relief in the EEO case could total $125,000, as of September 30, 2014. The monetary relief in the two

FOIA cases could total $50,000 each, as of September 30, 2014. 

LIMITATIONS OF THE FINANCIAL STATEMENTS

The financial statements have been prepared to report the financial position and results of operations of the 

FERC, pursuant to the requirements of 31 U.S.C. 3515(b). While the statements have been prepared from the 

books and records of the Commission in accordance with accounting principles generally accepted in the 

United States of America for Federal entities and the formats prescribed by OMB, the statements are in 

addition to the financial reports used to monitor and control budgetary resources which are prepared from the 

same books and records. The statements should be read with the realization that they are for a component of 

the U.S. Government, a sovereign entity. One implication of this is that liabilities cannot be liquidated without 

legislation that provides resources to do so.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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Financial Section
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 38

FEDERAL ENERGY REGULATORY COMMISSION

WASHINGTON, DC 20426

Office of the 

Executive Director

Message from the Chief Financial Officer

I am pleased to present the Federal Energy Regulatory Commission’s (Commission) comparative financial 

results for fiscal years 2014 and 2013. The accompanying financial statements and related notes fairly present 

the Commission’s financial position and were prepared in conformity with accounting principles generally 

accepted in the United States of America, and requirements set forth in Office of Management and Budget 

(OMB) Circular No. A-136, Financial Reporting Requirements.

During FY 2014, the Commission continued to focus on its statutory responsibilities. Through strict adherence 

to its primary mission, the Commission assisted consumers in obtaining reliable, efficient, and sustainable 

energy services at a reasonable cost through appropriate regulatory and market means. In fulfilling this 

mission, the Commission continued to establish policies and processes designed to ensure that rates, terms 

and conditions for wholesale sales and transmission of electric energy and natural gas are just, reasonable and 

not unduly discriminatory or preferential. Additionally, the agency took action to continually promote the 

development of safe, reliable, and efficient energy infrastructure that serves the public interest.

My organization focused on core responsibilities that supported mission accomplishment through 

organizational excellence. In this regard, we maintained a robust internal control environment which 

facilitated compliance with an extensive regulatory framework. We continued to implement innovative 

processes which optimized productivity and delivered required goods and services to our 

customers. Moreover, we have built and maintained a highly-skilled workforce that successfully executed 

operational and policy requirements. This strategic approach to managing our acquisition and financial 

functions has aligned my organization’s efforts with the broader mission of the agency. This Performance and 

Accountability Report further demonstrates this vital alignment of resources to agency mission.

Additionally, I would like to offer the following achievements to demonstrate the effectiveness and efficiency 

of the Commission’s acquisition and financial functions. 

• The Commission obtained an unmodified opinion on its financial statements for the 21st consecutive 

year. In addition, it strengthened its internal control program by continuing on-going self-assessment efforts as 

required by OMB Circular No. A-123, Management’s Responsibility for Internal Control. During its assessment, 

the Commission identified one material weakness in the design of its controls over financial reporting that 

resulted in the restatement of the FY 2013 Commission’s Statement of Changes in Net Position and Balance 

Sheet. Other than this exception, the Commission has reasonable assurance that its internal controls over 

financial reporting were operating effectively during FY 2014.

• The Commission collected over $323.0 million in offsetting receipts during the fiscal year, which was 

more than $19.0 million in excess of its statutory collections requirements. In FY 2014, the Financial

Management staff issued 100 percent of the related regulatory assessments electronically to jurisdictional 

entities and hydropower. 

• The Commission awarded over 25 percent of its total contract dollars to small, women-owned and 

minority businesses.

• The Commission updated its strategic plan as required by the GPRA Modernization Act of 2010. The 

updated plan captures all of the major functions of the Commission and aligns the Commission’s work within 
FY 2014 Performance and Accountability Report 

three strategic goals: (1) Just and Reasonable Rates, Terms and Conditions; (2) Safe, Reliable, Secure, and 

Efficient Infrastructure; and (3) Mission Support through Organizational Excellence. 

Our keen focus on program performance and significant financial accomplishments demonstrate the high 

regard we have for accountability and public disclosure. This report demonstrates a lasting commitment to 

fulfill our fiduciary responsibilities to Commission stakeholders. I am proud of the role my organization has 

played in being effective and efficient stewards protecting the interests of the American public. 

W. Do 

Chief Financial Officer 

Federal Energy Regulatory Commission 

November 24, 2014 

Federal Energy Regulatory Commission 

Page 39 
KPMG LLP

Suite 12000

1801 K Street, NW 

Washington, DC 20006

KPMG LLP is a Delaware limited liability partnership,

the U.S. member firm of KPMG International Cooperative

(“KPMG International”), a Swiss entity.

Independent Auditors’ Report

The Federal Energy Regulatory Commission and the 

Inspector General, United States Department of Energy 

Report on the Financial Statements 

We have audited the accompanying financial statements of the Federal Energy Regulatory Commission 

(the Commission), which comprise the balance sheets as of September 30, 2014 and 2013, and the related 

statements of net cost, changes in net position, budgetary resources, and custodial activity for the years 

then ended, and the related notes to the financial statements. 

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in 

accordance with U.S. generally accepted accounting principles; this includes the design, implementation, 

and maintenance of internal control relevant to the preparation and fair presentation of financial statements 

that are free from material misstatement, whether due to fraud or error. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted 

our audits in accordance with auditing standards generally accepted in the United States of America; the 

standards applicable to financial audits contained in Government Auditing Standards issued by the 

Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin No. 14-

02, Audit Requirements for Federal Financial Statements. Those standards and OMB Bulletin No. 14-02 

require that we plan and perform the audit to obtain reasonable assurance about whether the financial 

statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the 

financial statements. The procedures selected depend on the auditors’ judgment, including the assessment 

of the risks of material misstatement of the financial statements, whether due to fraud or error. In making 

those risk assessments, the auditor considers internal control relevant to the Commission’s preparation and 

fair presentation of the financial statements in order to design audit procedures that are appropriate in the 

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s

internal control. Accordingly, we express no such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant accounting estimates 

made by management, as well as evaluating the overall presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 

audit opinion. 

Attachment
Opinion on the Financial Statements 

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of the Federal Energy Regulatory Commission as of September 30, 2014 and 2013, and 

its net costs, changes in net position, budgetary resources, and custodial activity for the years then ended in 

accordance with U.S. generally accepted accounting principles. 

Emphasis of Matter 

As discussed in Note 18 to the financial statements, the 2013 financial statements have been restated to 

correct a misstatement. Our opinion is not modified with respect to this matter.

Other Matters 

Required Supplementary Information 

U.S. generally accepted accounting principles require that the information in the Management’s Discussion 

and Analysis section be presented to supplement the financial statements. Such information, although not a 

part of the financial statements, is required by the Federal Accounting Standards Advisory Board who 

considers it to be an essential part of financial reporting for placing the financial statements in an 

appropriate operational, economic, or historical context. We have applied certain limited procedures to the 

required supplementary information in accordance with auditing standards generally accepted in the United 

States of America, which consisted of inquiries of management about the methods of preparing the 

information and comparing the information for consistency with management’s responses to our inquiries, 

the financial statements, and other knowledge we obtained during our audits of the financial statements. 

We do not express an opinion or provide any assurance on the information because the limited procedures 

do not provide us with sufficient evidence to express an opinion or provide any assurance. 

Other Information

Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. 

The Letter from the Chairman, Message from the Chief Financial Officer, Other Information - Schedule of 

Spending, Performance Report section, and the Appendices of the Performance and Accountability Report 

are presented for purposes of additional analysis and are not a required part of the financial statements. 

Such information has not been subjected to the auditing procedures applied in the audits of the financial 

statements, and accordingly, we do not express an opinion or provide any assurance on them. 

Other Reporting Required by Government Auditing Standards 

Internal Control Over Financial Reporting 

In planning and performing our audit of the financial statements as of and for the year ended September 30, 

2014, we considered the Commission’s internal control over financial reporting (internal control) to 

determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our 

opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of 

the Commission’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 

Commission’s internal control. We did not test all internal controls relevant to operating objectives as 

broadly defined by the Federal Managers’ Financial Integrity Act of 1982. 

Our consideration of internal control was for the limited purpose described in the preceding paragraph and 

was not designed to identify all deficiencies in internal control that might be material weaknesses or 

significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have 

not been identified. However, as described in Exhibit I, we identified a deficiency in internal control that 

we consider to be a material weakness. 

Attachment
A deficiency in internal control exists when the design or operation of a control does not allow management 

or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, 

misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in 

internal control such that there is a reasonable possibility that a material misstatement of the entity’s 

financial statements will not be prevented, or detected and corrected, on a timely basis. A significant 

deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a 

material weakness, yet important enough to merit attention by those charged with governance. We consider 

the deficiency described in Exhibit I to be a material weakness. 

Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the Commission’s financial statements are free 

from material misstatement, we performed tests of its compliance with certain provisions of laws, 

regulations, and contract agreements, noncompliance with which could have a direct and material effect on 

the determination of financial statement amounts, and certain provisions of other laws and regulations 

specified in OMB Bulletin No. 14-02. However, providing an opinion on compliance with those provisions 

was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our 

tests of compliance disclosed no instances of noncompliance or other matters that are required to be 

reported under Government Auditing Standards or OMB Bulletin No. 14-02. 

We also performed tests of its compliance with certain provisions referred to in Section 803(a) of the 

Federal Financial Management Improvement Act of 1996 (FFMIA). Providing an opinion on compliance 

with FFMIA was not an objective of our audit, and accordingly, we do not express such an opinion. The 

results of our tests of FFMIA disclosed instances, described in the accompanying Exhibit I, in which the 

Commission’s financial management systems did not substantially comply with the applicable Federal 

accounting standards. The results of our tests of FFMIA disclosed no instances in which the Commission’s 

financial management systems did not substantially comply with the Federal financial management 

systems requirements and United States Government Standard General Ledger at the transaction level. 

Commission’s Response to Findings

The Commission’s response to the findings identified in our audit is described in Exhibit I. The 

Commission’s response was not subjected to the auditing procedures applied in the audit of the financial 

statements and, accordingly, we express no opinion on the response. 

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication described in the Other Reporting Required by Government Auditing 

Standards section is solely to describe the scope of our testing of internal control and compliance and the 

result of that testing, and not to provide an opinion on the effectiveness of the Commission’s internal 

control or compliance. Accordingly, this communication is not suitable for any other purpose. 

Washington, D.C. 

November 24, 2014 

Attachment
Independent Auditors’ Report

Exhibit I – Material Weakness 

Financial Reporting 

Management’s review and knowledge of the financial statements preparation and presentation, as well as 

the journal entries supporting the underlying transactions related to Appropriations, were not adequately 

designed at a sufficient level of detail to include a review to prevent, or detect and correct, material 

misstatements in FY 2014 related to proper accounting/reporting in accordance with Federal accounting 

standards. Similarly, this ineffective control environment existed in FY2013, which allowed a material 

error to occur and not be detected and corrected in the prior year financial statements. 

During our review of the fiscal year 2014 draft financial statements, we identified a material change in 

amounts between the fiscal years 2014 and 2013 presentation of the comparative balance sheets and 

statements of changes in net position. Furthermore, the draft financial statements and related notes did not 

include a disclosure or explanation that there had been a change in how the Commission was accounting 

for the unexpended appropriation. We identified this as a material weakness in the Commission’s internal 

controls over financial reporting related to the accounting for appropriations. 

The Commission receives and uses an annual appropriation from Congress for “necessary expenses ... to 

carry out the provisions of the Department of Energy Organization Act.” The 2014 appropriation law 

(Public Law 113-76) further provides that the sum appropriated from the general fund “shall be reduced as 

revenues are received during fiscal year 2014 so as to result in a final fiscal year appropriation from the 

general fund estimated at not more than $-0-.” The United States Treasury, based on this appropriation, 

issues a warrant to the Commission to pay its expenses. This same provision to receive and repay an

appropriation was also included in previous years’ authorizing legislation. 

The Commission receives and uses the appropriation during the year to operate (i.e., to pay for salaries and 

expenses). Consistent with the requirements of the Omnibus Budget Reconciliation Act of 1986, the 

Commission also collects revenues for fees, annual charges and other services during the year to offset 

100% of its budget authority (i.e., offsetting collections). At year end, the Commission repays the Treasury 

the full amount of the appropriation by using offsetting collections for the appropriations used throughout 

the year, plus returning any unused portion of the appropriation, resulting in no remaining unexpended 

appropriations. The Commission also transfers to Treasury the amount of offsetting collections in excess of 

the appropriations. The remaining unused offsetting collections become a financing source to replace the 

unused portion of the appropriation. 

During review of its authorizing legislation in FY 2014, the Commission determined it had been 

incorrectly accounting for the appropriations in the current fiscal year by carrying over from one year to the 

next the residual “unexpended appropriations” instead of reflecting “unexpended appropriations” at the end 

of the year at $-0-. The Commission initially believed the accounting for and presentation of the 

appropriations and offsetting collections only affected FY 2014 and prepared journal entries at year end to 

reflect the change in FY 2014 balances. However, based upon our review of the draft FY 2014 statement of 

changes in net position and audit testing performed on the underlying FY 2014 accounting transactions 

related to appropriations we identified errors that resulted in incorrect amounts reported in the FY 2014 and 

FY 2013 balance sheets and statements of changes in net position. Management reviewed the identified 

errors and corrected FY 2014 accounting transactions to properly present the Unexpended Appropriations 

in FY 2014 and also agreed the FY 2013 balance sheet and statement of changes in net position were in 

error and that a restatement of that year was required. 

The effect of the restatement is described in more detail in Footnote 18 to the Commission’s FY 2014 and 

2013 financial statements. In summary, the September 30, 2013 Unexpended Appropriations reported of 

Attachment
$49,840,825 should have been reported at $-0- and the Cumulative Results of Operations reported of 

$(7,280,772) should have been reported at $42,560,053. 

In addition to the material weakness in internal control, the deficiency resulted in instances of 

noncompliance with U.S. generally accepted accounting principles, and consequently, noncompliance with 

Federal Financial Management Improvement Act of 1996 (FFMIA) in which financial management 

systems did not substantially comply with the applicable Federal accounting standards. 

Recommendation: Develop training to improve the knowledge of technical matters related to financial 

reporting of budgetary resources for those who are preparing and reviewing journal entries, as well as 

preparing and reviewing the financial statements and increase the level of detail in the review of 

appropriations, related journal entries, and the financial statements. 

Management’s response:

We concur with this finding. The Commission’s Chief Financial Officer will ensure appropriate 

Commission staff is adequately trained to enhance their knowledge of technical accounting matters related 

to the accounting and reporting of budgetary resources. Furthermore, as part of the enhanced training, the 

Chief Financial Officer will document the procedures necessary for specific accounting transactions to be 

used in accounting for the Commission’s complex and/or unique financial transactions related to both 

budgetary and proprietary accounting in addition to an increased level of detail review of accounting for 

and presentation of budgetary resources. 

Attachment
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 45

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FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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FEDERAL ENERGY REGULATORY COMMISSION

Balance Sheet

As of September 30, 2014 and 2013

(in dollars)

2014 2013 (as restated)

Assets (note 3):

Intragovernmental:

Fund balance with Treasury (note 4) $ 90,789,268 $ 76,415,467 

Accounts receivable (note 5) 51,529 40,592

Total intragovernmental 90,840,797 76,456,059

Accounts receivable, net (note 5) 9,383,725 29,132,143

Property and equipment, net (note 6) 12,613,725 12,060,878

Total assets $ 112,838,247 $ 117,649,080

Liabilities:

Intragovernmental:

Accounts payable $ 1,748,539 $ 2,024,877

Other (note 7):

Accrued payroll and benefits 1,060,763 876,171

Resources transferable to Treasury and other

Federal entities 1,482,834 21,135,545

Workers' compensation payable (note 9) 779,273 777,328

Total intragovernmental 5,071,409 24,813,921

Accounts payable 13,165,720 11,408,629

Other (note 7):

Accrued payroll and benefits 4,657,481 4,296,995

Collections due to states (note 13) 4,303,639 3,064,076

Revenue collected under protest (note 11) 4,273,755 4,677,480 

Refunds and other amounts due 4,536,551 432,517

Accrued leave (note 9) 14,597,109 14,676,007

FECA Actuarial Liability (note 9) 3,619,514 3,884,643

Resources transferable to other entities from 

disgorged funds 7,834,759 7,834,759

Total liabilities 62,059,937 75,089,027

Commitments and Contingencies (note 11)

Net Position:

Unexpended appropriations - other funds (note 18) - -

Cumulative results of operations - other funds (note 18) 50,778,310 42,560,053

Total net position 50,778,310 42,560,053

Total liabilities and net position $ 112,838,247 $ 117,649,080

The accompanying notes are an integral part of these statements.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 47

The accompanying notes are an integral part of these statements.

FEDERAL ENERGY REGULATORY COMMISSION

Statement of Net Cost

For Years Ended September 30, 2014 and 2013

(in dollars)

2014 2013

Program costs:

 Regulation:

 Just and Reasonable Rates, Terms,

 & Conditions (note 14): 

 Gross costs $ 144,564,347 $ 166,209,235 

 Less: earned revenue 144,564,347 166,228,641

 Net program costs $ - $ (19,406) 

 Infrastructure (note 14):

 Gross costs $ 103,563,920 $ 138,997,815 

 Less: earned revenue 103,567,291 139,014,044 

 Net program costs $ (3,371) $ (16,229) 

 Mission Support (note 14): 

 Gross costs $ 58,661,393 $ -

 Less: earned revenue 58,661,393 - 

 Net program costs $ - $ -

 Total (note 14):

 Gross costs $ 306,789,660 $ 305,207,050 

 Less: earned revenue 306,793,031 305,242,685 

 Net Cost of Operations $ (3,371) $ (35,635) 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 48

FEDERAL ENERGY REGULATORY COMMISSION

Statement of Changes in Net Position

For Years Ended September 30, 2014 and 2013

(in dollars)

2014 2013 (as restated)

Cumulative Results of Operations:

Beginning balances $ 42,560,053 $ (19,197,481) 

Adjustments:

Correction of errors (note 18) - 37,566,059

Beginning balances, as adjusted 42,560,053 18,368,578

Budgetary Financing Sources:

Appropriations used 292,743,193 292,325,234 

Other Financing Sources (Non-Exchange):

 Transfers – out to Treasury without reimbursement (299,421,726) (282,105,305)

 Imputed financing from costs absorbed by others (note 10) 14,893,419 13,935,911 

Total Financing Sources 8,214,886 24,155,840

Net Cost of Operations 3,371 35,635

Net Change 8,218,257 24,191,475

Cumulative Results of Operations $ 50,778,310 $ 42,560,053

Unexpended Appropriations:

Beginning balances $ - $ 37,566,059 

 Adjustments

Correction of errors (note 18) - (37,566,059)

Beginning balances, as adjusted - -

Budgetary Financing Sources:

 Appropriations received 304,600,000 304,600,000 

 Appropriations used (292,743,193) (292,325,234)

 Other Adjustments (11,856,807) (12,274,766)

 Total Budgetary Financing Sources - -

Total Unexpended Appropriations $ - $ -

Net Position $ 50,778,310 $ 42,560,053

The accompanying notes are an integral part of these statements.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 49

FEDERAL ENERGY REGULATORY COMMISSION

Statement of Budgetary Resources

For Years Ended September 30, 2014 and 2013

(in dollars)

2014 2013

Budgetary Resources:

Unobligated balance, brought forward, Oct 1 $ 21,431,669 $ 20,897,888 

Recoveries of prior year unpaid obligations 1,898,682 798,727 

Unobligated balance from prior year budget activity, net 23,330,351 21,696,615 

 Appropriations 4,005,028 2,985,827 

 Spending authority from offsetting collections 304,774,768 289,313,760

Total budgetary resources $ 332,110,147 $ 313,996,202

Status of Budgetary Resources:

Obligations incurred (note 15) $ 304,437,132 $ 292,564,533

Unobligated balances, end of year:

Apportioned 27,594,710 21,431,669

Unapportioned 78,305 -

Total unobligated balance, end of year 27,673,015 21,431,669 

Total budgetary resources $ 332,110,147 $ 313,996,202

Change in Obligated Balance:

Unpaid Obligations:

Unpaid obligations, brought forward, Oct 1 $ 34,518,470 $ 36,415,201 

Obligations incurred 304,437,132 292,564,533

Outlays gross (293,675,495) (293,662,537)

Recoveries of prior year unpaid obligations (1,898,682) (798,727)

Unpaid obligations, end of year 43,381,425 34,518,470

Uncollected payments:

 Uncollected payments, Federal sources, brought forward, Oct 1 (46,059) (117,909)

 Change in uncollected payments, Federal sources (151,189) 71,850

Uncollected payments, Federal sources, end of year (197,248) (46,059)

Memorandum (non-add) entries:

Obligated balance, start of year $ 34,472,411 $ 36,297,292

Obligated balance, end of year $ 43,184,177 $ 34,472,411

continued on the next page
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 50

Budget Authority and Outlays, Net:

Budget authority, gross $ 308,779,796 $ 292,299,587

Actual Offsetting collections (304,623,579) (304,708,818)

Change in uncollected customer payments from 

 Federal Sources (151,189) 71,850

Budget authority, net $ 4,005,028 $ (12,337,381)

Outlays, gross $ 293,675,495 $ 293,662,537

Actual Offsetting collections (304,623,579) (304,708,818)

Outlays, net (10,948,084) (11,046,281)

Less: Distributed offsetting receipts (31,952,802) (294,674,362)

Agency outlays, net $ (42,900,886) $ (305,720,643)

The accompanying notes are an integral part of these statements.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 51

FEDERAL ENERGY REGULATORY COMMISSION

Statement of Custodial Activity

For Years Ended September 30, 2014 and 2013

(in dollars)

2014 2013

Revenue Activity:

 Sources of Collections:

Cash collections:

 Annual Charges $ 31,190,700 $ 32,977,829

 Other 12,249,758 294,386,000

Accrual adjustments (14,757,932) 14,216,016

Total custodial revenue (note 12) 28,682,526 341,579,845

Disposition of Collections:

Transferred to others:

United States Army – Corps of Engineers (8,352,794) (8,343,409)

Department of Interior (8,316,839) (7,102,342)

United States Treasury (22,623,450) (308,854,069)

Various states (4,147,375) (3,064,009)

Decrease (increase) in Amounts Yet to be transferred 14,757,932 (14,216,016)

Total Disposition of Collections (28,682,526) (341,579,845)

Net Custodial Activity $ - $ -

The accompanying notes are an integral part of these statements.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 52

NOTES TO FINANCIAL STATEMENTS

September 30, 2014 and 2013

(1) Description of Reporting Entity

The Federal Energy Regulatory Commission (the Commission) is an independent Federal agency that 

oversees key operating functions of the United States’ natural gas and oil pipeline transportation, electric 

utility and hydroelectric power industries.

The Commission was created through the Department of Energy Organization Act on October 1, 1977. The 

Commission’s predecessor, the Federal Power Commission (FPC), established in 1920, was abolished, and 

the Commission inherited most of FPC’s regulatory mission.

The Commission administers laws and regulations involving key energy issues. These include the 

transportation and sale of natural gas and oil in interstate commerce; regulation of electric utility 

wholesale rates and transactions; licensing and inspection of private, municipal, and state hydroelectric 

projects; and oversight of related environmental matters.

The Commission’s main legal authority is derived from the Federal Power Act of 1935, the Energy Policy 

Act of 2005, the Natural Gas Act of 1938, the Natural Gas Policy Act of 1978, the Interstate Commerce Act 

and the Public Utility Regulatory Policies Act of 1978.

On March 4 2014, the Commission submitted to Congress its updated Strategic Plan which will serve as a 

guide through FY 2018. As part of the update process, the Commission reviewed and updated its strategic 

objectives to align its core functions and authorities with the intended outcome. Further, the Commission 

added a third goal to capture management initiatives and responsibilities related to public trust, 

transparency and communication. The Commission reviewed its resource alignment and made changes 

where appropriate. 

The Commission’s activities are separated into the following three goals: 

Just and Reasonable Rates, Terms and Conditions

One of the Commission’s fundamental statutory responsibilities is to ensure that rates, terms and 

conditions for wholesale sales and transmission of electric energy and natural gas are just and reasonable 

and not unduly discriminatory or preferential. The Commission uses a combination of regulatory and 

market means to achieve this goal, including: reviewing and analyzing tariffs and other filings; establishing 

rules and policy that will result in appropriate rates; and employing competitive forces through markets. 

Oversight of the energy markets and enforcement of the associated laws, rules and regulations are 

essential complements to the regulatory and market means. The Commission uses a balanced approach in 

its oversight and enforcement efforts, including: conducting surveillance and analysis of market trends 

and data; educating affected entities about market rules and other regulations; promoting internal 

compliance programs; employing robust audit and investigation programs; and, where appropriate, 

exercising the Commission’s civil penalty authority as a deterrent to violations. 

Safe, Reliable, Secure and Efficient Infrastructure

The Commission plays an important role in the development of a strong energy infrastructure that 

operates efficiently, safely and reliably. The Commission authorizes the construction and operation of 

interstate natural gas pipelines and storage projects, liquefied natural gas (LNG) facilities, and non-federal 

hydropower projects. Other Commission responsibilities include ensuring the safety of non-federal 

hydropower projects and LNG facilities throughout their entire life cycle; overseeing the development and 

review of, as well as compliance with, mandatory reliability and security standards for the bulk power 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 53

system; and collaborating with regulated entities and other federal and state governmental agencies to 

identify and seek solutions to cyber and physical threats to FERC-jurisdictional infrastructure. 

Mission Support Through Organizational Excellence 

The public interest is best served when the Commission operates in an efficient, responsive and 

transparent manner. The Commission achieves this operational state by maintaining processes and 

providing services in accordance with governing statutes, authoritative guidance, and prevailing best 

practices.

Cost Recovery

As described below, the Commission recovers 100 percent of its annual budget authority from offsetting 

collections through annual charges and filing fees which are authorized by the Omnibus Budget 

Reconciliation Act of 1986 and other laws.

Annual Charges

The Commission recovers its administrative program costs through allocated annual charges to the 

entities it regulates, regardless of the number or type of services rendered to any particular entity during 

the year. The annual charge assessed in a fiscal year is based on an estimate of costs to be incurred during 

that year. Final program costs are determined from year-end accounting reports and time distribution 

reports by office and program. The difference in assessments that results from estimated versus final 

program costs is an adjustment to the following fiscal year’s assessments. The authority and related 

implementation methods for the annual changes are summarized as follows:

Hydropower

Authority – Section 10(e) of FPA makes the general provision that licensees under Part I of FPA shall pay 

reasonable annual charges to compensate the Federal government for the costs of administering Part I.

Implementation – The methods for assessing annual charges to hydropower licensees are codified at 18 

Code of Federal Regulations (C.F.R.) Part 11. Costs are prorated based on capacity (municipal projects), on 

capacity and generation (non-municipal projects), or on a flat rate per horsepower under 1,000 (minor 

projects).

Gas, Electric, and Oil

Authority – Section 3401 of the Omnibus Budget Reconciliation Act of 1986 provides that the Commission 

shall “assess and collect fees and annual charges in any fiscal year in amounts equal to all of the costs 

incurred by the Commission in that fiscal year.” It further provides that “fees or annual charges assessed 

shall be computed on the basis of methods that the Commission determines, by rule, to be fair and 

equitable.”

Implementation – The methods for assessing annual charges to gas and oil pipelines and to electric 

utilities and power marketing administrations are codified at 18 C.F.R. Parts 382.201 - 203. Costs are 

prorated to gas pipelines based on volume transported and sold, to electric utilities and power marketing 

administrations based on energy sold, and to oil pipelines based on operating revenues.

Filing Fees

Filing fees are calculated annually. Regulated entities pay the current fee when filing with the Commission 

for a specific service. The fees are based on the average time spent to perform the particular type of 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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service and the average cost per employee, including salary, benefits, and indirect costs. Fee structure 

and procedures are codified in 18 C.F.R. Part 381.

The Independent Offices Appropriations Act of 1952 (IOAA) authorizes agencies to prescribe regulations 

establishing charges for services, benefits, or items of value provided by an agency. In establishing a fee 

under the IOAA, the Commission must:

 Identify the service for which the fee is to be assessed;

 Explain why that particular service benefits an identifiable recipient more than it benefits the general 

public;

 Base the fee on as small a category of service as possible; and

 Demonstrate what direct and indirect costs are incurred by the Commission in rendering the service.

Section 3401 of the Omnibus Budget Reconciliation Act of 1986 also provides for fees and annual charges 

“computed on the basis of methods that the Commission determines, by rule, to be fair and equitable.”

(2) Summary of Significant Accounting Policies

(a) Basis of Presentation

The accompanying financial statements have been prepared to report the financial position of the 

Commission and its net costs, changes in net position, budgetary resources, and custodial activity in 

accordance with accounting principles generally accepted in the United States of America applicable to

Federal government entities.

These financial statements have also been prepared in accordance with the form and content for financial 

statements specified by OMB Circular No. A-136, Financial Reporting Requirements.

The financial statements include all activity related to the Commission’s portion of appropriation 

(89X0212), including the budget authority allotted by DOE to other DOE agencies. In addition, the 

Commission receives small allotments from DOE appropriation (89X5105). Both of the Commission’s 

appropriations relate to budget functional classification code 276, Energy Information Policy and 

Regulation and (89X5105) appropriations relate to budget functional classification code 806, Energy 

Information Policy and Regulation.

Entity assets disclosed in notes 3 and 5 include those assets that the Commission has the authority to use 

in its operations.

Non-entity assets disclosed in notes 3 and 5 include those assets that result from the Commission’s 

custodial billing activities for other Federal agencies, including the U.S. Army Corps of Engineers, the 

Treasury and the U.S. Department of Interior.

(b) Budgets and Budgetary Accounting

Congress annually adopts budget authority that provides the Commission with authority to use funds 

from the Treasury to meet its operating and capital expenditure requirements. The budget authority is 

not restricted to use in a specific fiscal year. All revenue from annual charges and filing fees in excess of 

its’ budget authority is remitted to the Treasury when received.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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(c) Basis of Accounting

The Commission’s financial statements are prepared using the accrual method of accounting. The accrual 

method of accounting requires recognition of the financial effects of transactions, events, and 

circumstances in the period(s) when those transactions, events, and circumstances occur, regardless of 

when cash is received or paid. The Commission also uses budgetary accounting to facilitate compliance 

with legal constraints and to monitor its budget authority at the various stages of execution, including 

allotment, obligation, and eventual outlay.

(d) Revenue and Financing Sources

As described above, the Commission is granted budget authority from offsetting collections. The 

Commission receives an appropriated amount from the Treasury general fund at the beginning of the 

fiscal year, which is used for its operating and capital expenditures. Throughout the year, the Commission 

collects monies through annual charges and filing fees and returns the appropriated amount to the 

Treasury general fund at year-end. The offsetting collections serve as the financing source for any 

unexpended budget authority. 

The Commission recognizes revenue for hydropower, gas, oil, and electric annual charges when earned. 

Annual charges are based on estimated current year program costs and adjustments from the prior year. 

At year-end, the Commission records a financial statement adjustment to accurately reflect the amount to 

be billed or credited to regulated entities based on the difference between the charges and the actual 

program costs for the year. The Commission adjusts the subsequent year’s charge for such amount.

The Commission recognizes an imputed financing source for the estimated annual pension, life and health 

insurance costs in excess of contributions made by the Commission during the year. These costs will 

ultimately be funded by the Office of Personnel Management.

Reimbursable work agreement revenue is recognized when the related services are rendered.

Transfers-out represent receipts collected and remitted to the Treasury during the year and net accounts 

receivable that, once collected, will be returned to the Treasury, less any amounts due to regulated 

entities for the excess of estimated and billed costs over actual costs incurred.

(e) Fund Balance with Treasury

The Commission does not maintain cash in commercial bank accounts. Cash receipts and disbursements 

are processed by the Treasury. The balance of funds with the Treasury represents funds that are available 

to pay current liabilities and finance authorized purchase commitments relative to goods or services that 

have not been received and monies held in suspense until final disposition is determined.

(f) Allowance for Doubtful Accounts

The Commission calculates its allowance for doubtful accounts using historical collection data and specific 

account analysis.

(g) Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. The Commission capitalizes 

property and equipment purchases (other than furniture and software) with a cost greater than $25,000 

and a total useful life exceeding two years. The Commission capitalizes individual furniture purchases with 

a cost greater than $50,000 and bulk furniture purchases related to the acquisition of newly leased space 

or total renovation of existing Commission space with a cost greater than $250,000. The Commission also 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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capitalizes commercially purchased or internally developed software with a cost greater than $100,000 

and leasehold improvements over $250,000 that are related to initial move-ins, build-outs of newly leased 

space, and/or a complete renovation of already leased space. Depreciation is calculated based on an 

estimated useful life of the shorter of 20 years or the life of the lease for leasehold improvements, 10

years for furniture, 2 to 5 years for commercially purchased or internally developed software, and 5 years 

for all remaining assets. Expenditures for repairs and maintenance are charged to program costs as 

incurred.

(h) Liabilities

Liabilities represent amounts owed by the Commission as the result of transactions or events that have 

occurred as of year-end. Liabilities for which Congress has not appropriated funds are disclosed in note 9 

as liabilities not covered by budgetary resources.

(i) Workers’ Compensation Payable

The Federal Employees Compensation Act (FECA) provides income and medical cost protection to cover 

Federal civilian employees injured on the job, employees who have incurred a work-related occupational 

disease and beneficiaries of employees whose death is attributable to a job-related injury or occupational 

disease. Claims incurred for benefits for the Commission’s employees under FECA are administered by the 

United States Department of Labor (DOL) and are ultimately paid by the Commission. The workers’ 

compensation payable represents billings from DOL that are unpaid at year-end. 

(j) Collections Due to States 

The Commission disburses 37.5% of the fees it collects from licensees for the occupancy and use of public 

lands to affected states in the year following collection. These collections are initially deposited into the 

Treasury’s miscellaneous receipts fund.

(k) Revenue Collected Under Protest

Revenue collected under protest is deferred and recorded as a liability until the protest is resolved.

(l) Accrued Leave

Annual leave is accrued as a liability as it is earned. The accrual is reduced as leave is taken. Each year, the 

balance in the accrued annual leave account is adjusted to reflect current year pay rates. To the extent 

that the current or prior year appropriations are not available to fund annual leave earned but not taken, 

funding will be obtained from future appropriations. Sick leave and other types of nonvested leave are 

charged to expense as the leave is used.

(m) Disgorged Funds

The Commission seeks to detect abuses of market power or statutory or rule violations by investigating 

observed market anomalies, complaints, and referrals from regional transmission organizations and/or 

independent system operators, and by conducting both targeted and random audits. Once the 

Commission identifies violations, it applies remedies to mitigate the effects of market power, requires 

disgorgement of unjust profits where appropriate, and imposes civil penalties or other sanctions when 

available under existing laws. The Commission records disgorged funds as a liability until they are 

disbursed to appropriate entities
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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(n) Net Position Accounts

Cumulative results of operations – Represents the Commission’s net results of operations since inception, 

including (1) the amount in the fund balance with Treasury from spending authority from offsetting 

collections less outstanding payables, (2) the cost of property and equipment acquired that has been 

financed by prior-year appropriations or financing sources, less accumulated depreciation, and (3) the 

amount of appropriated funding that will be needed in future periods to liquidate liabilities incurred 

through the current fiscal year. Funding for these items is generally received in the year that amounts 

become due and payable.

(o) Tax Status

The Commission, as a Federal agency, is not subject to Federal, state, or local income taxes, and 

accordingly, no provision for income tax is recorded.

(p) Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the 

United States of America requires management to make estimates and assumptions that affect the 

reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of 

the financial statements. Also affected are the reported amounts of revenues and expenses during the 

reporting period. Actual results could differ from these estimates.

(q) Comparative Data 

In FY 2014, the Commission identified three strategic goals and attributed costs to each of those goals; as 

compared to FY 2013 the Commission attributed costs across two strategic goals. As a result of the 

additional goal in FY 2014, the attributed costs are not directly comparable between the two years 

presented.

(3) Non-Entity Assets

 Non-entity assets at September 30, 2014 and 2013 consisted of:

2014 2013

Intragovernmental:

Fund balance with Treasury:

 Collections due to states $ 4,303,639 $ 3,064,009 

 Revenue collected under protest 4,273,755 4,677,480

 Miscellaneous receipts held in suspense 114,584 432,518

Total Fund balance with Treasury assets 8,691,978 8,174,007

Accounts receivable, net (note 5) 8,690,988 22,867,762

Total intragovernmental non-entity assets 17,382,966 31,041,769

Total entity assets 95,455,281 86,607,311

Total assets $ 112,838,247 $ 117,649,080
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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(4) Fund Balance with Treasury

Fund balance with Treasury at September 30, 2014 and 2013 consisted of:

2014 2013

Fund Balances:

 General funds $ 82,097,290 $ 68,241,460

 Other:

 Collections due to states 4,303,639 3,064,009

 Revenue collected under protest 4,273,755 4,677,480

 Miscellaneous receipts held in suspense 114,584 432,518

 Total $ 90,789,268 $ 76,415,467

Status of Fund Balance with Treasury:

 Unobligated balance:

 Available $ 27,397,686 $ 21,307,527

 Unavailable 15,621,819 15,479,472

 Obligated balance not yet disbursed 43,381,425 34,518,470

 Non-budgetary fund balance with 

 Treasury 4,388,338 5,109,998

 Total $ 90,789,268 $ 76,415,467

The amounts listed above in the 'Unobligated balance: Unavailable' line are sequestered for FY 2013 and 

FY 2014, and are not currently available for Commission use. 

(5) Accounts Receivable, net

Entity and non-entity accounts receivable at September 30, 2014 and 2013 consisted of:

2014

Annual Charges Other Total

Entity

Uncollected billings $ 626,605 $ 70,198 $ 696,803

Unbilled billings - - -

Uncollected intragovernmental billings - 51,529 51,529

Allowance for doubtful accounts - (4,066) (4,066)

 Total entity accounts receivable, net 626,605 117,661 744,266

Non-entity

Uncollected billings 203,227 507,766,527 507,969,754

Allowance for doubtful accounts - (499,278,766) (499,278,766)

Total non-entity accounts receivable, net (note 3) 203,227 8,487,761 8,690,988

 Total accounts receivable, net $ 829,832 $ 8,605,422 $ 9,435,254

continued on the next page
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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2013

Annual 

Charges Other Total

Entity

Uncollected billings $ 6,102,608 $ 68,727 $ 6,171,335

Unbilled billings 98,050 - 98,050

Uncollected intragovernmental billings - 40,592 40,592

Allowance for doubtful accounts - (5,004) (5,004)

 Total entity accounts receivable, net 6,200,658 104,315 6,304,973

Non-entity

Uncollected billings 256,584 508,139,944 508,396,528

Allowance for doubtful accounts - (485,528,766) (485,528,766)

Total non-entity accounts receivable, net 256,584 22,611,178 22,867,762

 Total accounts receivable, net $ 6,457,242 $ 22,715,493 $ 29,172,735

As of September 30, 2014, there were four civil penalty cases, totaling $466.8 million, that have elected to 

have the district court procedures of section 31(d)(3)(a) of the Federal Power Act (FPA) apply. Under these 

proceedings, the district court of the United States may rule to find these defendants not liable for the 

imposed civil penalty in whole or part. Until final determination of the district courts, the Commission is 

not allowed under the FPA to collect any imposed civil penalties, and therefore these cases are included in 

the Allowance for Doubtful Accounts. 

(6) Property and Equipment, net

Property and equipment and related accumulated depreciation at September 30, 2014 and 2013 

consisted of:

2014

Acquisition 

Amount

Accumulated 

Depreciation Net

Equipment $ 6,873,710 $ 5,333,965 $ 1,539,745

Furniture 11,500,547 9,974,937 1,525,610

Leasehold improvements 11,713,238 9,897,264 1,815,974

ADP software 19,442,500 17,605,317 1,837,183

Construction in process - - -

Internal software in development 5,895,213 - 5,895,213

Capital leases 29,000 29,000 -

 Total property and equipment, net $ 55,454,208 $ 42,840,483 $ 12,613,725

continued on the next page
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 60

2013

Acquisition 

Amount

Accumulated 

Depreciation Net

Equipment $ 6,089,933 $ 4,471,667 $ 1,618,266 

Furniture 11,500,547 9,731,969 1,768,578

Leasehold improvements 11,713,238 9,200,510 2,512,728

ADP software 19,442,500 16,699,141 2,743,359

Construction in process 313,035 - 313,035 

Internal software in development 3,104,912 - 3,104,912

Capital leases 29,000 29,000 -

 Total property and equipment, net $ 52,193,165 $ 40,132,287 $ 12,060,878 

(7) Other Liabilities

Other liabilities at September 30, 2014 and 2013 consisted of:

2014

Current Non-Current Total

Intragovernmental

 Accrued payroll and benefits $ 1,060,763 $ - $ 1,060,763

 Resources transferable to Treasury 

 and other Federal entities 1,482,834 - 1,482,834

 Workers' compensation payable (note 9) 384,155 395,118 779,273

 Total other intragovernmental liabilities 2,927,752 395,118 3,322,870

Accrued payroll and benefits 4,657,481 - 4,657,481

Collections due to states 4,303,639 - 4,303,639

Revenue collected under protest 4,273,755 - 4,273,755

Refunds and other amounts due 4,536,551 - 4,536,551

Accrued leave (note 9) 14,597,109 - 14,597,109

FECA Actuarial Liability (note 9) - 3,619,514 3,619,514

Resources transferable to other entities

 from disgorged funds 7,834,759 - 7,834,759

 Total other liabilities $ 43,131,046 $ 4,014,632 $ 47,145,678

continued on the next page
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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2013

Current Non-Current Total

Intragovernmental

 Accrued payroll and benefits $ 876,171 $ - $ 876,171 

 Resources transferable to Treasury 

 and other Federal entities 21,135,545 - 21,135,545 

 Workers' compensation payable 78,404 698,924 777,328 

 Total other intragovernmental liabilities 22,090,120 698,924 22,789,044 

Accrued payroll and benefits 4,296,995 - 4,296,995 

Collections due to states 3,064,076 - 3,064,076 

Revenue collected under protest 4,677,480 - 4,677,480 

Refunds and other amounts due 432,517 - 432,517 

Accrued leave 14,676,007 - 14,676,007 

FECA Actuarial Liability - 3,884,643 3,884,643 

Resources transferable to other entities 

 from disgorged funds 7,834,759 - 7,834,759 

 Total other liabilities $ 57,071,954 $ 4,583,567 $ 61,655,521 

Resources transferable to Treasury and other Federal entities represent future collections on accounts 

receivable that will be forwarded to Treasury upon receipt.

Revenue collected under protest represents monies that, once the protest is resolved, may either be 

recognized as revenue by the Commission or returned to the protesting entity.

Refunds and other amounts due represent monies that ultimately will be returned to entities due to 

overpayments of prior billings and interim reporting of deferred revenues.

Resources transferable to other entities from disgorged funds represents monies that will be disbursed to 

specific entities in the future.

(8) Leases

The General Services Administration (GSA) enters into lease agreements for government buildings and 

maintains those lease agreements. The Commission pays GSA a standard level users charge for the 

annual rental of building space, of which Commission Headquarters is in Washington, DC and several 

other regional offices are located in various parts of the country. The standard level users charge 

approximates the commercial rental rates for similar properties. The Commission generally executes an 

occupancy agreement with GSA, which normally includes a requirement to give 30-120 days notice to 

vacate. Expenses incurred for building leases amounted to $22.3 million and $22.2 million for the years

ended September 30, 2014 and 2013, respectively. 

The table on the next page identifies minimum lease amounts that the Commission may be liable for in 

the future based on current agreements or current negotiations to renew existing lease agreements. The 

Commission also anticipates to renew expiring leases that are not currently in negotiations, for similar 

terms and conditions upon the expiration of those current agreements.

continued on the next page
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 62

Real Property Operating Leases – Future Payments

Fiscal Year GSA Non-GSA Total

FY 2015 $ 14,072,690 $ 46,374 $ 14,119,064 

FY 2016 19,818,923 35,695 19,854,618 

FY 2017 19,821,317 35,695 19,857,012 

FY 2018 19,675,985 25,288 19,701,273 

FY 2019 19,448,496 - 19,448,496 

Beyond FY 2019 110,497,516 - 110,497,516 

 Total future minimum lease payments $ 203,334,927 $ 143,052 $ 203,477,979 

(9) Liabilities Not Covered by Budgetary Resources

Liabilities not covered by budgetary resources at September 30, 2014 and 2013 consisted of:

2014 2013

Intragovernmental 

 Workers' compensation payable (note 7) $ 779,273 $ 777,328 

 Total intragovernmental 779,273 777,328 

Accrued leave (note 7) 14,597,109 14,676,007 

FECA Actuarial Liability (note 7) 3,619,514 3,884,643

 Total liabilities not covered by budgetary resources $ 18,995,896 $ 19,337,978

(10) Employee Benefits

Commission employees participate in either the Civil Service Retirement System (CSRS) or the Federal 

Employees’ Retirement System (FERS). Employees participating in CSRS contribute 7% of their basic pay to 

the plan, and the Commission makes a matching contribution. For employees participating in the FERS 

program hired before January 1, 2013, the Commission makes a contribution of 11.9% of basic pay. For 

employees participating in the FERS-Revised Annuity Employees (RAE) program hired after January 1, 

2013, the Commission makes a contribution of 9.6% of basic pay. For employees participating in the FERSFurther Revised Annuity Employees (FRAE) program hired after December 31, 2013, the Commission 

makes a contribution of 9.6%.

On January 1, 1987, FERS went into effect pursuant to Public Law 99 335. Most employees hired after 

December 31, 1983, are automatically covered by FERS and Social Security. Employees hired prior to 

January 1, 1984, could elect either to join FERS and Social Security or remain in CSRS. FERS offers a 

savings plan in which the Commission automatically contributes 1% of employees’ basic pay and matches 

any employee contribution up to an additional 4% of basic pay. For most employees hired since 

December 31, 1983, the Commission also contributes the employer’s matching share for Social Security. 

Public Law 112-96, Section 5001 of the "Middle Class Tax Relief and Job Creation Act of 2013,” makes a 

significant change to the FERS program. Beginning January 1, 2013, new employees under FERS-RAE will 

contribute 3.1% of their basic salaries compared to 0.8% contributed by employees hired prior to January 

1, 2013. Furthermore, new employees hired after December 31, 2013 under FERS-FRAE will contribute 

4.4% of their basic salaries compared to the contribution rates of FERS and FERS-RAE employees.

continued on the next page
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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The actuarial present value of accumulated benefits, assets available for benefits, and unfunded pension 

liability of CSRS and FERS is not allocated to individual departments and agencies and is, therefore, not 

disclosed by the Commission. For the years ended September 2014 and 2013 both plans cost 

approximately $18.0 million and $17.9 million, respectively. The total imputed costs for pension, life and 

health insurance recognized by the Commission for FY 2014 and FY 2013 are $14.9 million and $13.9 

million, respectively and will ultimately be funded through the Office of Personnel Management. 

(11) Commitments and Contingencies 

Certain hydroelectric licensees have filed appeals claiming the Commission erroneously accepted certain 

“other agency costs” (costs incurred by Other Federal agencies in administering Part I of the FPA 

component of the licensees’ annual charges) in their calculation of FY annual charges. In addition, certain 

licensees have filed appeals against their hydropower administrative annual charges to seek a partial or 

100 percent municipal exemption. The combined liabilities of these appeals total $4.3 million and $4.7 

million as of September 30, 2014 and 2013, respectively, and are included herein as revenue collected 

under protest. The FY 2014 liability is fully funded and therefore poses no adverse or material future 

effect on the Commission’s financial position. 

In addition, the Commission has one Equal Employment Opportunity and two Freedom of Information Act 

cases pending where the probability of success for the claimants is reasonably possible. The amount of 

monetary relief in the EEO case could total $125,000, as of September 30, 2014. The monetary relief in 

the two FOIA cases could total $50,000 each, as of September 30, 2014. 

(12) Custodial Activity

The Commission currently bills regulated companies annual charges as a custodian for certain Federal 

agencies. These agencies include the United States Army Corps of Engineers, the Department of Interior’s 

Bureau of Reclamation, and the Treasury. Accrual accounting is used to account for the Commission’s 

custodial activities. The receivables are maintained by the Commission, and the collections are processed 

to each Federal agency on a monthly basis. In addition to the annual charges, penalty and administrative 

costs are assessed on past-due bills and remitted to the Treasury when received. For FY 2014 and FY 2013, 

these custodial collections totaled approximately $43.4 million and $327.4 million, respectively.

(13) Funds from Dedicated Collections

In accordance with the Federal Accounting Standards Advisory Board’s Statement on Federal Financial 

Accounting Standards (SFFAS) No. 27 and as amended by SFFAS No. 43, the Commission is required to 

report separately on the Balance Sheets and Statements of Changes in Net Position, the non-exchange 

revenue, other financing sources, of operations and net position attributable to funds from dedicated 

collections. In addition, the Commission must disclose the fund for which it has program management 

responsibility. The Commission’s Collections Due to States fund meets the criteria for funds from 

dedicated collections, however, these funds are custodial in nature and therefore do not impact the 

equity sections of the Balance Sheet’s net position or the Statement of Changes in Net Position. The 

balances as of September 30, 2014 and 2013 were $4.3 million and $3.1 million, respectively.

Fund 89X5105 and 895105 pertains to the Use of Government lands. "Reasonable annual charges for 

recompensing the United States for the use, occupancy, and enjoyment of its lands or its other property 

will be fixed by the Commission." 18 C.F.R. CH 1, part 11.2(a).

The Commission disposes of the charges arising from licenses in accordance with USC, Title 16, CH 12, Part 

I, Sec 810 “All other charges arising from licenses hereunder, except charges fixed by the Commission for 

the purpose of reimbursing the United States for the costs of administration of this subchapter, shall be 

continued on the next page
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 64

paid into the Treasury of the United States and credited to Miscellaneous Receipts. 37.5 per centum of 

the charges arising from licenses hereunder for the occupancy and use of national forests and public lands 

from development within the boundaries of any State shall be paid by the Secretary of the Treasury to 

such state.”

(14) Intragovernmental Costs and Exchange Revenue

Costs classified as “Intragovernmental” represent the cost of goods or services obtained from Federal 

entities. Costs classified as “Public” represent the cost of goods or services obtained from non-federal 

entities. Revenues classified as “Intragovernmental earned” are generated when the buyer and seller of 

services are Federal entities. Revenues classified as “Public earned” are generated when the buyer of 

services is a non-federal entity.

Intragovernmental costs and exchange revenue at September 30, 2014 and 2013 consisted of:

2014 2013

Just and Reasonable Rates, Terms, & Conditions

 Intragovernmental costs $ 31,268,753 $ 35,904,725 

 Public costs 113,295,594 130,304,510 

 Total Just and Reasonable Rates, Terms, 

 and Conditions costs 144,564,347 166,209,235 

 

 Intragovernmental earned revenue 16,302 57,525 

 Public earned revenue 144,548,045 166,171,116 

 Total Just and Reasonable Rates, Terms, 

 and Conditions earned revenues 144,564,347 166,228,641 

Infrastructure

 Intragovernmental costs 22,399,999 30,026,480 

 Public costs 81,163,921 108,971,335 

 Total Infrastructure costs 103,563,920 138,997,815 

 

 Intragovernmental earned revenue 46,191 48,107 

 Public earned revenue 103,521,100 138,965,937 

 Total Infrastructure earned revenues 103,567,291 139,014,044 

Mission Support

 Intragovernmental costs 12,688,250 - 

 Public costs 45,973,143 - 

 Total Infrastructure costs 58,661,393 - 

 Intragovernmental earned revenue 6,615 -

 Public earned revenue 58,654,778 - 

 Total Infrastructure earned revenues 58,661,393 - 

Costs

 Intragovernmental costs 66,357,002 65,931,205 

 Public costs 240,432,658 239,275,845 

 Total costs 306,789,660 305,207,050 

continued on the next page
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 65

Revenue

 Earned intragovernmental revenue 69,108 105,632 

 Earned public revenue 306,723,923 305,137,053 

 Total earned revenue $ 306,793,031 $ 305,242,685 

In FY 2014, the Commission identified three strategic goals and attributed costs to each of 

those goals; as compared to FY 2013 the Commission attributed costs across two strategic goals. As 

a result of the additional goal in FY 2014, the attributed costs are not directly comparable 

between the two years presented. 

 

(15) Apportionment Categories of Obligations Incurred

Apportionment categories of obligations incurred as of September 30, 2014 and 2013 consisted of:

2014 2013

Category A:

 Direct $ 304,262,587 $ 292,527,564

 Reimbursable 174,545 36,968 

Total obligations incurred $ 304,437,132 $ 292,564,533

Category A apportionments distribute budgetary resources by fiscal quarters.

(16) Explanation of Differences Between the Statement of Budgetary Resources and the Budget of the 

United States Government 

The Commission had no differences between the Statement of Budgetary Resources and the Budget of 

the United States as of September 30, 2013. The statement can be reconciled to the President’s budget 

by combining both of the budgets for Federal Energy Regulatory Commission (89-0212-0-1-176) and 

Payments to States under Federal Power Act (89-5105-0-2-806). The reconciliation as of September 30, 

2014 is not presented, because the submission of the FY 2014 budget occurs after publication of these 

financial statements. The Commission’s Budget Appendix can be found under the DOE on the OMB 

website (http://www.whitehouse.gov/omb/budget) and will be available in early February 2015.

(17) Undelivered Orders at the End of the Period

Undelivered orders are obligations made by the Commission for services and purchases that have not 

been received and accepted as of the balance sheet date. The amount of Commission budgetary 

resources reported as undelivered orders as of September 30, 2014 and 2013 were $19.0 million and 

$13.3 million, respectively.

(18) Restatement

In FY 2014, through review of its authorization legislation (Public Law 113-76), the Commission 

determined that unexpended appropriations at year-end should be zero and therefore an error existed in 

the prior year. Management corrected the error as presented in the following table. 

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FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 66

Balance as 

reported in 

FY 2013 

financial 

statements Restatement

Balance 

(as restated)

Balance Sheet

Net Position:

 Unexpended appropriations - other funds $ 49,840,825 $ (49,840,825) $ -

 Cumulative results of operations-other funds (7,280,772) 49,840,825 42,560,053

Total net position $ 42,560,053 $ - $ 42,560,053 

Statement of Changes in Net Position

Cumulative Results of Operations:

Beginning balances $ (19,197,481) $ - $ (19,197,481)

 Adjustments: 

 Correction of errors - 37,566,059 37,566,059

 Beginning balances, as adjusted (19,197,481) 37,566,059 18,368,578 

Budgetary Financing Sources:

Appropriations used 292,325,234 - 292,325,234

 

Other Financing Sources (Non-Exchange): 

Transfers – out to Treasury without reimbursement (294,380,071) 12,274,766 (282,105,305)

Imputed financing from costs absorbed by others (note 10) 13,935,911 - 13,935,911 

Total Financing Sources 11,881,074 12,274,766 24,155,840

Net Cost of Operations 35,635 - 35,635

Net Change 11,916,709 12,274,766 24,191,475

Cumulative Results Operations $ (7,280,772) $ 49,840,825 $ 42,560,053

Unexpended Appropriations:

Beginning balances $ 37,566,059 $ - $ 37,566,059

 Adjustments: 

Correction of errors - (37,566,059) (37,566,059)

Beginning balances, as adjusted 37,566,059 (37,566,059) -

Budgetary Financing Sources: 

Appropriations received 304,600,000 - 304,600,000

Appropriations used (292,325,234) - (292,325,234)

Other adjustments - (12,274,766) (12,274,766)

Total Budgetary Financing Sources 12,274,766 (12,274,766) -

Total Unexpended Appropriations $ 49,840,825 $ (49,840,825) $ -

Net Position $ 42,560,053 $ - $ 42,560,053
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 67

(19) Reconciliation of Net Cost of Operations to Budget

The objective of this information is to provide an explanation of the differences between budgetary and 

financial (proprietary) accounting. This is accomplished by means of a reconciliation of budgetary 

obligations and non-budgetary resources available to the reporting entity with its net cost of operations.

2014 2013

Resources used to finance activities:

Budgetary resources obligated:

 Obligations incurred $ 304,437,132 $ 292,564,533 

 Less: spending authority from offsetting collections

 and prior year recoveries (306,673,450) (305,435,696)

 Obligations, net of offsetting collections

 and prior year recoveries (2,236,318) (12,871,163)

 Less: Distributed offsetting receipts (31,952,802) (294,674,362)

 Net obligations (34,189,120) (307,545,525)

Other resources:

 Transfers-out and other adjustments, net of

appropriations received (6,678,533) 10,219,929 

 Imputed financing from costs absorbed by others 14,893,419 13,935,911 

 Net other resources used to finance activities 8,214,886 24,155,840 

Total resources used to finance activities (25,974,234) (283,389,685) 

Resources (used to) or generating finance items not part of the

 net cost of operations: 

 Change in budgetary resources obligated for goods/

 services/benefits ordered but not yet provided (+/-) (5,634,628) (3,468,508) 

Budgetary offsetting receipts that do not affect the 

 net cost of operations 31,952,802 294,674,362

 Resources that finance the acquisition of assets (3,261,043) (4,852,735) 

 Payments to States (4,005,028) (2,907,745)

Total resources (used to) or generating finance items not part of the 

 net cost of operations 19,052,103 283,445,374 

Total resources used to finance the net cost of operations (6,922,131) 55,689

 continued on the next page
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 68

Costs that do not require resources:

Components requiring or (generating) resources in future periods:

 Increase (or decrease) in unfunded liabilities (342,083) 1,288,225

 Increase (or decrease) in exchange revenue receivable from the 

public 4,894,846 (3,641,200)

 Total components of net cost of operations that will 

 require or (generate) resources in future periods 4,552,763 (2,352,975)

 Components not requiring or generating resources:

 Depreciation and amortization 2,708,196 2,196,719 

 Other (342,199) 64,932 

 Total components of net cost of operations that will not 

 require or (generate) resources 2,365,997 2,261,651

 Total net cost of operations that do not require or 

 (generate) resources in the current period 6,918,760 (91,324)

 Net Cost of Operations $ (3,371) $ (35,635) 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 69

OTHER INFORMATION

FEDERAL ENERGY REGULATORY COMMISSION

Schedule of Spending (Unaudited)

For the Years Ended September 30, 2014 and 2013

(in millions)

FY 2014 FY 2013

What Money is Available to Spend?

Total Resources $ 332 $ 314

Less Amount Available but Not Agreed to be Spent 28 21

Total Amounts Agreed to be Spent $ 304 $ 293

How was the Money Spent/Issued?

Personnel Compensation $ 166 $ 165

Personnel Benefits 47 47

Benefits for Former Personnel - -

Travel and Transportation of Persons 3 3

Rent, Communication and Utilities 25 25

Printing and Reproduction 2 3

Other Contractual Services 43 42

Supplies and Materials 2 2

Equipment 3 3

Land and Structures - -

Grants, Subsidies and Contributions 3 3

Total Spending 294 293

Amounts Remaining to be Spent 10 -

Total Amounts Agreed to be Spent $ 304 $ 293

Who Did the Money Go to?

For Profit $ 89 $ 64

Government 39 53

Higher Education 1 2

Individuals 175 174

Total Amounts Agreed to be Spent $ 304 $ 293

The unaudited Schedule of Spending presents an overview of how and where the Commission spent its funding. 

What Money is Available to Spend? summarizes the funds the Commission obligated during the fiscal year, the 

total amount agreed to be spent being equivalent to the obligations incurred shown on the Statement of 

Budgetary Resources (SBR). For FY 2014, $298,611 was not available to be spent for Payment to States; however 

that amount is not presented on the Schedule of Spending due to rounding.

How Was the Money Spent? summarizes the actual gross cash outlays for the fiscal year, the total spending being 

equivalent to the gross outlays shown on the SBR. These gross outlays are categorized by the OMB Budget Object 

Class definitions found in OMB Circular No. A-11. 

Who did the Money go to? summarizes with whom the agencies are spending money and is based on obligations 

incurred as shown on the SBR. Outlays are not always made in the same fiscal year in which funds are obligated 

resulting in carryover obligated balances that will be disbursed in subsequent fiscal years. These timing differences 

are shown as increases/(decreases) in Amounts Remaining to be Spent.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 70

Performance Report

(Unaudited)
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 71

INTRODUCTION

In accordance with Government Performance and Results Act of 1993 (GPRA) and the GPRA Modernization Act of 

2010, the Commission developed its Strategic Plan, as well as its performance measures, to ensure it is fulfilling its 

mission. When comparing the planned and actual performance according to the guidelines set forth in Part 6 of 

OMB Circular No. A-11, the Commission:

• determined that its performance results are complete and reliable based on the fact that results are listed for 

every performance measure and target, that decision-makers use the information contained in the results “on 

an ongoing basis in the normal course of their duties,” and that the information contained in the results are 

derived via internal tracking mechanisms; and

• identified no “significant or material” performance shortfalls based on the fact that none of the Commission’s 

unmet performance measures or targets had an adverse effect on overall program performance. 

The tables on the following pages include the Commission’s complete performance measurement data for fiscal 

years 2009 through 2014.

As a result of the Commission’s updated FY 2009 – 2014 Strategic Plan, which went into effect on September 30, 

2009, the performance measures for fiscal years 2010 through 2014 are aligned with the Commission’s current 

Strategic Plan. The Performance Measures for fiscal year 2009 are aligned with previous versions of the 

Commission’s Strategic Plan.

The Commission did not engage in an independent program evaluation during FY 2014. However, the Commission 

is currently contracting with Energetics, Incorporated in order to develop an internal data validation and 

verification process and associated capabilities. During FY 2014, the Commission made a considerable effort to 

document data collection procedures for each strategic measure to ensure reported progress towards meeting 

Commission goals is valid, complete, accurate, consistent and timely. In FY 2015, the Commission will continue to 

build a strong data validation and verification framework by testing data collection processes and refining 

procedures.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 72

PERFORMANCE DATA FOR ENERGY INFRASTRUCTURE: FY 2009

FY 2009

Performance Measure Performance Target Results

Resolve Regulatory and Other Challenges to Needed Development

Timeliness of processing complete filings containing amendments to nonindependent electric transmission provider OATTs 

100% processed by statutory due date or 

applicant’s requested date, whichever is 

later 

Target Met. 100% of the 62 

amendments to non-RTO/ISO OATTs 

were completed within the 60-day 

statutory timeframe

Issue Alaska Gas Pipeline Reports to 

Congress 

Issue Reports in February and August 

2009 

Target Met. Reports issued in 

February and August 2009.

Percentage of pipeline certificate cases 

with no precedential issues completed 

▪ 90% of unprotested cases within 159 

days of filing 

▪ 90% of protested cases within 304 days 

of filing 

▪ Target Met. 96.8% of unprotested 

cases completed within 159 days of 

filing 

▪ Target Met. 100% of protested cases 

completed within 304 days of filing

Percentage of pipeline certificate cases 

of first impression or containing larger 

policy implications completed 

90% within 365 days of filing 

Target Met. 94.7% of first impression 

cases completed within 365 days of 

filing

Percentage of pipeline certificate cases 

requiring a major environmental assessment or EIS completed 90% within 480 days of filing Target Met. 100% of major cases 

completed within 480 days of filing

Percentage of NEPA documents completed for projects utilizing the pre-filing 

processes 

85% within 8 months of determining a 

pipeline or LNG facility application 

complete 

Target Met. 100% of NEPA 

documents completed for projects 

utilizing the pre-filing process within 8 

months of determining an application 

was complete

Percentage of qualifying LNG plants 

inspected during ongoing construction 

activity 

90% of plants inspected every 8 weeks 

Target Met. 100% of qualifying LNG 

plants were inspected at least once 

every 8 weeks during ongoing 

construction activity

Percentage of ILP pre-filing study plan 

determinations completed 

75% within 30 days of applicant filing 

revised study plan for Commission approval 

Target Met. 100% of determinations 

were completed within 30 days of 

applicant filing revised study plan for 

Commission approval

Percentage of infrastructure studies 

completed 

▪ 95% for regional and issue-based 

infrastructure conferences 

▪ 95% for Commission- and Congressional-directed studies 

▪ Target Met. 100% studies completed 

for regional and issue-based 

infrastructure conferences 

▪ Target Met. 100% studies completed 

for Commission- and Congressionaldirected studies

Percentage of electric transmission siting 

cases completed 90% within 365 days of filing

n/a. One electric transmission case 

entered the pre-filing stage, but it was 

withdrawn.

Timeliness of processing complete applications for incentive rates

▪ 100% of statutory cases processed 

within statutory deadlines or by applicant’s requested date, whichever is later 

▪ 80% of declaratory orders filed for 

Commission action within 180 days of 

filing date or by applicant’s requested 

date, whichever is later. 

▪ Target Met. 100% of the 15 statutory 

incentive rate cases were processed 

within the statutory timeframes

▪ Target met; 100% (6 of 6) of 

declaratory orders related to incentive 

rates were filed within target dates.

Timeliness of processing cost recovery 

cases (including prudently-incurred 

expenses to safeguard and enhance the 

reliability, security and safety of the 

energy infrastructure) 

▪ 100% of statutory cases processed 

within statutory deadlines or by applicant’s requested date, whichever is later 

▪ 90% of rate inserts for certificate cases 

processed within 30 days prior to lead 

office’s target date for completion of 

pipeline certificate case 

▪ 85% of cases that were set for hearing 

filed for Commission action within 12 

months of briefs opposing exceptions 

▪ Target Met. 100% of the 3,808 

statutory items, including cost 

recovery cases, were processed within 

the statutory deadlines

▪ Target Met. Provided timely rate 

inserts for 94% (47 out of 50) of the 

cases that were targeted for 

completion by the lead office during 

the fiscal year 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 73

FY 2009

Performance Measure Performance Target Results

▪ Target not met; 50% (2 of 4) filed 

within 12 months of Briefs Opposing 

Exceptions.

Timeliness of verification of EQR submissions Within 10 business days of filing due date 

Target Met. 100 percent of EQR 

submissions were verified within 10 

business days.

Percentage of Accounting Inserts completed for inclusion in merit orders on 

cost recovery proposals for new gas 

pipeline infrastructure 

95% 

Target Met. 100 percent of gas 

certificate accounting inserts were 

completed on time.

Percentage of financial accounting filings completed timely 75% within 60 days of filing date 

Target Met. 97 percent of financial 

accounting filings were completed on 

time.

Percentage of reporting requirement 

filings completed timely 75% within 60 days of filing date 

Target Met. 100 percent of reporting 

requirement filings was completed 

within 60 days.

Assure Reliability of Interstate Transmission Grid

Timely approval of ERO/RE budgets 

and business plans Complete by November 1, 2008 

Target Met. The draft order approving 

the 2009 ERO/RE budgets and 

business plans was issued in Docket 

No. RR08-6-000 on October 16, 2008. 

Timeliness of processing proposed reliability standards 

75% of filed proposed reliability standards 

are remanded or approved within 18 

months, unless found incomplete 

Target Met. 100% of filed reliability 

standards have orders issued within 18 

months. 

Review the performance of the ERO 

Complete within 12 months of the submission by the ERO of an assessment of 

its performance 

n/a. ERO performance assessment 

filing was made on July 20, 2009 in 

Docket No. RR09-7-000, with a 

targeted completion date of December 

2009.

Number of ERO Regional Entity compliance audits in which FERC participates 

At least one in each of the eight regions 

Target Met. Participated on 8 Regional 

Entity audits, one in each region, by 

June 25, 2009. 

Percentage of ERO / industry reliability 

readiness evaluations of Reliability 

Coordinators in which FERC participates 

75% 

N/A. The ERO/industry reliability 

readiness evaluations of Reliability 

Coordinators were discontinued in FY

2009.

Percentage of load served, included in 

ERO / industry reliability readiness 

evaluations, in which FERC participates 

35% 

Target Met. Participated in 2 readiness 

evaluations which represented 78% of 

load served.

Percentage of ERO penalty action rulings reviewed or tolled to prevent inappropriate rulings from going into effect 

by default 

100% 

Target Met. In FY 2009, 35 Notices of 

Penalty covering 83 violations were 

filed. All 35 were reviewed for 

appropriateness of the finding of 

violation and penalty and accepted by 

operation of law, with a public notice 

of each acceptance issued within the 

required period for Commission action.

Assess Notices of Alleged Violation and 

Sanction received from the ERO 

Review 60% of Notices of Alleged Violation and Sanction received from ERO 

within two weeks of receipt for appropriateness of sanction 

Target Met. In FY2009, 149 Notices 

of Alleged Violations and Sanctions 

covering 579 alleged violations were 

submitted through the portals. Each 

was reported on and recorded routinely 

by way of (1) The Overview of 

Reliability Orders, Matters and 

Deadlines Chart, and (2) The Pending 

Case Report prepared by the Division 

of Investigations. 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 74

FY 2009

Performance Measure Performance Target Results

Timeliness of reporting to the Commission on ERO and Regional Entity audits Within 120 days of the Commencement 

Letter 

Target Met. 100 percent (3/3) of 

Regional Entity audits reported to the 

Commission within 120 days.

Percentage of ERO and Regional Entity 

audit recommendations issued and implemented 90% within 6 months 

Target Met. 100 percent (20/20) of 

Regional Entity audit 

recommendations implemented in 6 

months.

Protect Safety at LNG and Hydropower Facilities

Percentage of high- and significant- -

hazard-potential dams inspected annually 90% 

Target Met. 90% of high- and 

significant- hazard-potential dams 

inspected

Percentage of high- and significanthazard-potential dams that either meet 

all current structural safety standards or 

are undergoing investigation or remediation 

90% 

Target Met. 90% of high- and 

significant hazard-potential dams either 

met all current structural safety 

standards or are undergoing 

investigation or remediation.

Percentage of LNG peak-shaving facilities inspected biennially 90% Target Met. 100% of LNG peakshaving facilities were inspected 

Percentage of LNG import terminals 

inspected annually 90% Target Met. 100% of the LNG import terminals were inspected

Percentage of qualifying dams that either 

comply with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s) 

90% Target Met. 90% of qualifying dams 

complied with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s) 

Control access to CEII 

No instances of improper access or improper denial affecting national security or 

Commission proceedings 

Target Met. No instances. 

Incorporate Environmental Considerations into Commission Decisions

Percentage of final inspection reports 

completed 75% within 4 months of inspection 

Target Met. 100% of final inspection 

reports completed within 4 months of 

inspection 

Timeliness of issuing environmental 

licensing requirements 

Licensing responsibility letters sent within 

60 days of license issuance date 

Target Met. All licensing 

responsibility letters sent within 60 

days of license issuance date 

Percentage of final NEPA documents 

issued for ALP/TLP cases: ▪ with 

settlement agreements ▪ without 

settlement agreements 

▪ 75% within 12 months of settlement 

filing date 

▪ 75% within 24 months of REA date 

▪ Target Met. 100% within 12 months 

of settlement filing date 

▪ Target Met. 100% within 24 months 

of REA date

Percentage of qualifying, major, onshore-pipeline projects inspected during 

ongoing construction activity 

90% of projects inspected at least once 

every four weeks 

Target Met. 97% of qualifying projects 

were inspected at least once every 4 

weeks.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 75

PERFORMANCE DATA FOR COMPETITIVE MARKETS: FY 2009

FY 2009

Performance Measure Performance Target Results

Employ Best Practices in Rules

Percentage of initial orders completed on 

third-party complaints 

▪ 75% filed with the Commission within 

60 days of the date of the answer or by 

complainant’s requested date, whichever 

is later 

▪ 90% filed with the Commission within 

180 days of the date of the answer, or by 

complainant’s requested date, whichever 

is later 

▪ Target met; 78% (28 of 36) filed within 

60 days. 

▪ Target met; 97% (35 of 36) filed within 

the 180 days.

Timeliness of review of proposed RTO/ 

ISO market rules 

100% by the statutory due date or the 

applicant’s requested date, whichever is 

later 

Target Met. 100% of the 221 filings 

from PJM, ISO New England, New 

York ISO, Southwest Power Pool, 

Midwest ISO, and California ISO were 

acted on by the statutory due dates

Timeliness of processing cases that 

encourage demand response in organized markets 

100% of statutory cases processed 

within statutory deadlines or by the 

applicant’s requested date, whichever is 

later 

Target Met. 100% of the 15 filings to 

encourage demand response were acted 

on by the statutory deadlines 

Industry and state outreach to increase 

Commission awareness and understanding on emerging energy issues 

Participate in and/or facilitate 10 sessions per quarter 

Target Met. Participated in and/or 

facilitated 23 sessions in the first quarter, 

24 sessions in the second quarter, 17 

sessions in the third quarter, and 11 

sessions in the fourth quarter of the 

fiscal year 

Reduce Barriers to Trade Between Markets and Among Regions

Timeliness of processing complete filings to reduce or eliminate border utility 

issues between markets 

100% processed by the statutory due 

date or applicant’s requested date, 

whichever is later 

Target Met. 100% of the 8 filings 

dealing with border utility issues 

between markets were completed by the 

statutory due dates 

Assure Proposed Mergers and Acquisitions are in the Public Interest

Timeliness of processing complete filings for the disposition, consolidation, or 

acquisition, under section 203 of the 

FPA, of jurisdictional facilities 

(including transactions involving certain 

transfers of generation facilities and 

public utility holding company transactions, and issues of cross subsidization 

or encumbrances of utility assets) 

100% processed within 180 days for 

non-major dispositions 100% processed 

within 360 days for major dispositions 

Target Met. 100% of the 95 non-major 

dispositions and the 1 major merger case 

were completed by the established 

deadlines

Address Market Power in Jurisdictional Wholesale Markets

Timeliness of processing initial electric 

market-based rate filings 

100% processed within 60 days of the 

filing date of a complete application or 

by applicant’s requested date, whichever 

is later 

Target Met. 100% of the 189 initial 

market-based rate applications were 

completed by the established target date

Revise and clarify Standards of Conduct Issue Final Rule by December 31, 2008 

Target Met. Order No. 717 revising 

Standards of Conduct for Transmission 

Providers issued October 16, 2008, and 

became effective November 26, 2008.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 76

PERFORMANCE DATA FOR ENFORCEMENT: FY 2009

FY 2009

Performance Measure Performance Target Results

Identify and remedy problems with structure and operations in energy markets

Regular monitoring of natural gas and 

electric markets with significant issues 

of market structure and operations identified 

Weekly reporting of significant issues of 

market structure and operations 

Target Met. The Division of Energy 

Market Oversight (DEMO) produced a 

Weekly Market Review (WMR) in 48 

weeks during FY 2008. The weeks during 

which we did not publish a WMR 

occurred during holiday periods. These 

WMRs included 24 special reports that 

provided in depth analysis of emerging 

market issues.

Timeliness of actions on significant 

issues identified by regular monitoring 

of natural gas and electric markets 

Within 6 months of completed report 

Target Met. The Division of Energy 

Market Oversight completed all items 

within 6 months.

Fully implement the Research in Market 

Oversight (RIMO) program 

Perform at least four RIMO projects per 

year 

Target Met. The Division of Energy 

Market Oversight hosted staff of Italy’s 

Regulatory Authority for Electricity and 

Gas. In addition, DEMO has hosted over 

ten foreign delegations and State Public 

Service Commission representatives in 

the Market Monitoring Center.

Establish clear and fair processes

Apply current clear and fair processes to 

investigations during the fiscal year 

Provide recommendations to the Commission for each proposed remedy and 

penalty with clear and consistent criteria 

Target Met. Submitted 

recommendations for civil penalties to 

be assessed on 16 subjects. Each 

recommendation included discussion of 

facts, analysis of applicable Policy 

Statement factors, and comparison to 

actions taken in similar cases.

Timeliness of reporting to the Commission on operational audits Within 120 days of the Commencement 

Letter 

Target Met. 100 percent (19/19) of 

operational audits reported to the 

Commission within 120 days.

Percentage of operational audit recommendations issued and implemented 90% within 6 months 

Target Met. 99 percent (75/76) of 

operational audit recommendations 

implemented in 6 months.

Timeliness of reporting to the Commission on financial audits Within 120 days of the Commencement 

Letter 

Target Met. 100 percent (9/9) of 

financial audits reported to the 

Commission within 120 days.

Percentage of financial audit recommendations issued and implemented 90% within 6 months 

Target Met. 100 percent (36/36) of 

financial audit recommendations 

implemented in 6 months.

Conduct investigations promptly and impose penalties where appropriate

Timeliness of initiating or deciding 

action on MMU referrals 80% acted on within 30 days 

Target Met. Four MMU referrals were 

received and all were acted on within 30 

days.

Percentage of enforcement investigations not involving market manipulation 

issues completed 

75% within one year of initiation 

Target Not Met. 41% of nonmanipulation investigations completed 

in FY 2009 (9 of 22) were completed 

within one year. This target was missed 

due to circumstances surrounding two 

major market manipulation cases in 

which management was required to shift 

staff resources from non-market 

manipulation cases to these two highprofile market manipulation cases. This 

did not have a negative impact on the 

performance of the enforcement 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

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FY 2009

Performance Measure Performance Target Results

program. To the contrary, the successful 

outcome of these market manipulation 

cases demonstrates the strength of the 

Commission’s enforcement program. 

The Commission has consistently met 

this target in previous years.

Percentage of market manipulation enforcement investigations completed 75% within two years of initiation 

Target Met. All market manipulation 

investigations completed in FY2009 

were completed within two years.

Percentage of Hotline calls resolved 70% within 2 weeks of initial contact 

Target Met. DOI received 502 Hotline 

calls and closed 485 Hotline matters. 

70.5% of the calls were resolved within 

two weeks of initial contact.

Encourage self-policing and -reporting of violations

Percentage of regulated entities audited 

to ensure internal compliance programs 

and processes are in place 

85% of regulated entities included in 

annual audit plan 

Target Met. 100 percent of regulated 

entities included in annual audit plan 

audited to ensure internal compliance 

programs and processes are in place.

Process complete requests for “No Action” Within 60 days of receipt of final request 

Target Not Met. Three out of four NoAction letters were issued in fewer than 

60 days; the fourth was issued in 69 

days. This did not have a negative 

impact on the program.

Timeliness of reporting on compliance 

issues raised by regulated entities Reports completed monthly 

Target Met. Compliance issues raised 

by regulated entities are reported 

monthly as part of the DOI Pending 

Case Report.

PERFORMANCE DATA FOR SUPPORTING INITIATIVES: FY 2009

FY 2009

Performance Measure Performance Target Results

Number of ADR requests and referrals 

addressed by DRS Increase number over FY 2004 

Target Met. In FY 2009, DRS addressed 

71 new ADR requests and referrals. FY 

2009 results exceeded the results of the 

base year, FY 2004, by 17 

requests/referrals. (In FY 2004 DRS 

received 54 total requests and referrals.)

Percentage of mediated or facilitated 

case that achieve partial or complete 

consensual agreement

75% 

Target Met. Of 18 cases DRS completed 

in FY 2009, all achieved consensual 

agreement through mediation and 

facilitation, resulting in a 100% success 

rate.

Favorable DRS customer satisfaction for 

casework and outreach 80% customer satisfaction rate 

Target Met. In FY 2009, customers for 

all casework and outreach services 

expressed favorable satisfaction with 

DRS. Of respondents to casework 

surveys, DRS received a 100% customer 

satisfaction rate. Of respondents to 

outreach surveys, DRS received a 91% 

customer satisfaction rate.

Number of outreach events (e.g., trainings, workshops, and presentations) to 

promote the use of dispute resolution 

skills 

Increase number over FY 2004 

Target Met. In FY 2009, DRS delivered 

24 outreach events, 13 more events than 

FY 2004’s 11 outreach events. (In FY 

2004, the DRS delivered 13 outreach 

events.)
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FY 2009

Performance Measure Performance Target Results

Of ADR processes concluded, percentage that resulted in savings of time and/ 

or money over traditional processes 

75% 

Target Met. 100% of respondents to 

casework surveys affirmed that 

involvement of DRS saved them time 

and/or money over traditional processes. 

Percentage of cases set for hearing that 

achieve partial or complete consensual 

agreement 

75% Target Met. 90%

Ensure timely and effective communication to all stakeholders 

▪ Issue 95% of press releases for important agency actions within 1 hour of 

action being taken 

▪ Post 95% of important and timesensitive agency actions on the 

Commission’s internet website within 1 

hour of issuance 

▪ Provide an initial and complete response to 70% of inquiries at the time of 

the receipt of the request 

▪ Develop webpages within the assigned 

timeframe to enhance and support the 

Commission’s initiatives and goals 

▪ Target Met. In FY 2009, 42 out of 43or 

99% of press releases were issued 

within 1 hour of action being taken.

▪ Target Met. In FY 2009, 4066 out of 

4066 or 100% of important agency 

actions were posted on the 

Commission’s internet website within 1 

hour of issuance. 

▪ Target Met. In FY 2009, the office 

provided an initial and complete 

response to 3476 out of 4753 or 73% of 

public inquiries at the time of receipt.

▪ Target Met. In FY 2009, this office 

developed 11 out of 11 web page 

requests. All were completed on 

schedule.

Enhance communication with National 

and International groups

▪ Provide responses to 95% of Congressional inquiries and briefing requests by 

the date requested or by 10 business 

days from the date of the request 

▪ Provide email notification of significant Commission actions to Congress 

within 1 to 2 business days of the underlying action along with briefing offers 

where appropriate 

▪ Provide timely and effective briefings 

to members of Congress and State Officials within the timeframe requested and 

initiate at least three briefings on top 

priority issues within timeframe appropriate to effect that issue 

▪ Provide email notification of outreach 

efforts (i.e., panel discussions, workshops, conferences or other forums) to 

State Officials and Governors within 3 

business days 

▪ Respond to 80% of international delegation meetings requests within 3 business days of rendering a decision 

▪ Target Met. In FY 2009, External 

Affairs responded to 100% (211 out of 

211) of congressional inquiries and 

briefing requests within 10 business 

days.

▪ Target Met. In FY 2009, 165 email 

notifications to members of Congress 

were sent out on top priority issues 

regarding significant Commission 

actions within 1 to 2 business days of the 

underlining action

▪ Target Met. In FY 2009, 46 briefings 

for Congress and State Officials were 

conducted on priority issues of natural 

gas pipelines, transmission planning and 

integration of renewables, demand 

response, and cyber security. 

▪ Target Met. In FY 2009, email 

notifications were sent out 

simultaneously for 142 out of 142 

(100%) Commission actions of interest 

to State regulatory agencies on 

significant Commission actions within 1 

to 2 business days of the underlining 

action. 

▪ Target Met. In FY 2009, OEA 

responded to and coordinated 52 

approved visits; 44 or 84.6% received 

responses within 3 business days.

Maintain an effective recruiting program 

▪ Increase retention rate of new hires 

over FY 2008 

▪ Hire 20% of interns into permanent 

positions 

▪ Implement a formal mid-career recruiting program by December 31, 2008 

 Target Met. The annualized 

retention rate of new hires 

increased from 91.7% (144/157) 

for FY 08 to 92.1% (187/203) for 

FY 09.

 Target Met. 34% (12 of 35) of 

interns from summer 2008 

program were converted in FY 09.

 Target Not Met. The formal four 

phase mid-level recruitment 

program strategy was launched on 

6/1/09. No negative impact by the 
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FY 2009

Performance Measure Performance Target Results

delay in meeting original date. 

Implement employee development programs 

▪ Launch competency based training 

program for mainstream occupations 

▪ Develop competency based training for 

all occupations 

 Target Met. Competency-based 

training needs assessment was 

conducted during April 2009.

 Target Not Met. The 

implementation of competency 

based training for all occupations 

was deferred, pending the selection 

and acquisition of a learning 

management system which will not 

be available until FY 2011 due to 

resource constraints. Accordingly, 

FERC will reevaluate its employee 

develop program measures for FY 

2010.

Maintain an effective performance management system 

▪ All employees and managers receive 

training annually 

▪ Provide feedback to managers to ensure ratings reflect meaningful distinctions between performance 

▪ High achievers are rewarded appropriately 

 Target Met. all employees and 

managers received Performance 

Management Training

 Target Met. Managers received 

feedback which explained 

meaningful distinctions between 

performance. 

 Target Met – The Commission’s 

analysis identified that on average, 

FERC rewarded:

o highly successful 

employees 31% higher 

monetary awards than 

fully successful 

employees;

o outstanding employees 

49% higher monetary 

awards than highly 

successful employees; 

and

o outstanding employees 

with 96% higher 

monetary awards than 

fully successful 

employees.

Ensure appropriate representation of 

women and minorities at all levels 

within the organization 

Increase over FY 2008 baseline 

▪ Target Not Met. FY09 percentage for 

women was 44.6%. Decreased 

percentage from FY08 by less than 1% 

(FY08 – 45.5%). Modify target for FY 

2010 and future years to be “Equal to or 

greater than Total Federal Workforce 

percentage.”

▪ Target Not Met. FY09 percentage for 

minorities was 32.3%. Decreased 

percentage from FY08 by less than 1% 

(FY08 – 32.9%). Modify target for FY 

2010 and future years to be “Equal to or 

greater than Total Federal Workforce 

percentage.”

Maintain reliable financial management 

systems which generate accurate and 

timely financial information to support 

operating, budget, and policy decisions 

▪ Unqualified audit opinion on financial 

statements 

▪ Unqualified assurance assertion on 

internal controls 

▪ Target Met – Received unqualified 

audit opinion on FY 09 principal 

statements 11/6/09.

▪ Target Met – Issued unqualified 

assurance assertion on controls in place 

as of 6/30/09.
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FY 2009

Performance Measure Performance Target Results

Manage acquisitions in accordance with 

federal requirements and ensure process 

provides for the efficient use of Commission resources 

▪ 25% of total procurement dollars 

awarded to small, women-owned, and 

minority businesses 

▪ 100% of qualified procurements are 

performance-based 

▪ Target Met. 33% of total available 

procurement dollars were awarded to 

small businesses during FY09. 

▪ Target Met. 100% of qualified FY09 

procurements were performance-based 

acquisitions.

PERFORMANCE DATA FOR JUST & REASONABLE RATES, TERMS AND 

CONDITIONS: FY 2010 – 2014

Further barriers to participation by demand resources in organized wholesale electric markets will be identified and 

eliminated.

Year Target Result

FY 2010

Evaluate ISO/RTO filings on barriers to demand 

response. Complete and submit National Action Plan on 

Demand Response

Target Met. In FY 2010, issued orders evaluating 6 

filings submitted by RTOs and ISOs to identify barriers 

to demand response and to comply with other 

requirements of Order No. 719. 

Completed and published on June 17, 2010, a National 

Action Plan on Demand Response (Docket No. AD09-

10)

FY 2011

As appropriate, issue Notice of Proposed Rulemaking 

on further steps to eliminate barriers to demand 

resources, including steps identified in National Action

Plan on Demand Response

Target Exceeded. On March 18, 2010, the Commission 

issued a notice of proposed rulemaking in Docket No. 

RM10-17-000, on Demand Response Compensation in 

Organized Wholesale Energy Markets, which proposed to 

eliminate a barrier to demand response resources 

receiving the same compensation as other supply-side 

resources selling into the organized wholesale electric 

market. The Commission was able meet the FY 2012 

target ahead of schedule and issued the final rule, Order 

No. 745, requiring that demand response resources be 

paid the same market-clearing price as other resources 

was issued on March 15, 2011. 

FY 2012 As appropriate, issue Final Rule on further steps to 

eliminate barriers to demand resources

Target Met. On December 15, 2011, the Commission 

issued Order 745-A, Demand Response Compensation in 

Organized Wholesale Energy Markets order on rehearing.

FY 2013 Implement Final Rule as appropriate

Target Met. The Commission issued an order on the 

sixth and remaining initial compliance filing related to 

Order No. 745, Demand Response Compensation in 

Organized Wholesale Energy Markets (Docket No. 

ER11-4338-000).

FY 2014 Monitor implementation and performance. Evaluate 

performance and seek changes as necessary

Target Met. Commission staff, as appropriate, monitored 

participation of demand response in organized wholesale 

markets. On May 23, 2014, in a split ruling in the case of 

Electric Power Supply Association v. FERC, No. 11-

1486 (D.C. Cir. May 23, 2014), the U.S. Court of 

Appeals for the District of Columbia Circuit (D.C. 

Circuit) vacated and remanded FERC’s final rule on 

demand response compensation in organized wholesale 

electric markets. On July 7, 2014, the Commission 

requested to rehearing en banc of the May 23, 2014 

decision. The court denied this request September 17, 

2014. On October 20, 2014, the D.C. Circuit granted 

FERC’s motion to stay the issuance of the court’s 

mandate during the period in which the court’s decision 

could be appealed to the U.S. Supreme Court.
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Best practices for demand response products and procedures will be explored and, as appropriate, implemented in 

organized wholesale electric markets.

Year Target Result

FY 2010

Perform outreach with ISOs/RTOs, demand response 

providers, and others; as appropriate, issue NOPR on 

best practices

Target Met. Engaged in outreach between October 1, 

2009 and January 31, 2010 with RTOs/ISOs, demand 

response providers, retail industry, technology providers 

and state regulators regarding practices affecting demand 

response products and procedures. One of the best 

practices identified concerned the level of compensation 

paid to demand response resources participating in 

wholesale electricity markets. On March 18, 2010, 

issued a notice of proposed rulemaking entitled Demand 

Response Compensation in Wholesale Electric Markets 

(Docket No. RM10-17).

FY 2011 As appropriate, issue Final Rule on best practices

Target Met. The Commission issued Order No. 745, 

Demand Response Compensation in Organized 

Wholesale Energy Markets, on March 15, 2011.Having 

identified a best practice used by some RTOs to 

compensate demand response resources at the same price 

received by other supply-side resources, such as 

generation, the final rule required all RTOs to pay 

comparable compensation to demand response resources 

in their own markets.

FY 2012 Implement Final Rule as appropriate

Target Met. The Commission has reviewed the filings 

made by six RTOs and ISOs to comply with Order No. 

745, Demand Response Compensation in Organized 

Wholesale Energy Markets. The Commission 

determined that implementation of the Final Rule as 

proposed by five of the six RTOs and ISOs is 

appropriate, subject to additional compliance 

requirements in some instances, and issued orders on 

these five compliance filings. The Commission is 

determining whether implementation of the Final Rule as 

proposed in the sixth compliance filing is appropriate. 

Further, the Commission addressed other best practices 

by issuing a notice of proposed rulemaking on Standards 

for Business Practice and Communication Protocols for 

Public Utilities - Wholesale Electric Quadrant Demand 

Response Standards on April 19, 2012.

FY 2013 Monitor implementation and performance

Target Met. The Commission issued an order on the 

sixth and remaining initial compliance filing related to 

Order No. 745, Demand Response Compensation in 

Organized Wholesale Energy Markets. 

Further, the Commission on February 21, 2013, issued a 

Final Rule (Order No. 676-G) adopting Standards for 

Business Practices and Communications Protocols for 

Public Utilities.
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Best practices for demand response products and procedures will be explored and, as appropriate, implemented in 

organized wholesale electric markets.

FY 2014 Evaluate performance and seek changes as necessary

Target Met. Commission staff, as appropriate, monitored 

participation of demand response in organized wholesale 

markets. On May 23, 2014, in a split ruling in the case of 

Electric Power Supply Association v. FERC, No. 11-

1486 (D.C. Cir. May 23, 2014), the U.S. Court of 

Appeals for the District of Columbia Circuit (D.C. 

Circuit) vacated and remanded FERC’s final rule on 

demand response compensation in organized wholesale 

electric markets. On July 7, 2014, the Commission 

requested to rehearing en banc of the May 23, 2014 

decision. The court denied this request September 17, 

2014. On October 20, 2014, the D.C. Circuit granted 

FERC’s motion to stay the issuance of the court’s 

mandate during the period in which the court’s decision 

could be appealed to the U.S. Supreme Court.

All resources that are technically capable of providing needed ancillary services have the opportunity to provide those 

services.

Year Target Result

FY 2010

Perform outreach to identify the need for modification 

or creation of additional ancillary services, and issue 

NOPR, as appropriate

Target Not Met. Engaged in outreach between October 1, 

2009 and June 30, 2010 with RTOs/ISOs, storage and 

other technology providers, industrial customers, and 

research organizations. On January 21, 2010, issued a 

Notice of Inquiry seeking public comment on the extent 

to which reforms are necessary to ensure that wholesale 

electricity tariffs, including those governing ancillary 

services, remain just, reasonable and not unduly 

discriminatory (Integration of Variable Energy 

Resources, Docket No. RM10-11-000). The Commission 

received over 2,000 pages of comments from industry, 

state & federal agencies, and consumer interests, which 

are being analyzed by Commission staff to determine the 

need to modify existing, or create additional, ancillary 

services through a NOPR. Because of the large number 

of comments, more time is needed to develop specific 

proposals to include in a NOPR. Work on a NOPR 

proposal will continue into the FY11. Although the 

Commission did not issue the NOPR in FY10, it will not 

have a negative impact on achieving future targets or 

overall program performance.

FY 2011 As appropriate, issue Final Rule on ancillary service 

products and procedures

Target Not Met. Until recently, generation resources 

provided all ancillary services used to support open 

access transmission services offered by transmissionowning utilities, RTOs and ISOs. New technologies, 

such as demand response and energy storage devices, are 

now available and capable of providing some needed 

ancillary services. A notice of inquiry was issued on 

Third-Party Provision of Ancillary Services; Accounting 

and Financial Reporting for New Electric Storage 

Technologies on June 15, 2011 (RM11-24-000). A 

notice of proposed rulemaking on Frequency Regulation 

Compensation in the Organized Wholesale Power 

Markets was issued on February 17, 2011.A draft final 

rule was submitted for the Commission’s consideration 

on September 29, 2011. This will not have a negative 

impact on program performance.
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Federal Energy Regulatory Commission

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All resources that are technically capable of providing needed ancillary services have the opportunity to provide those 

services.

Year Target Result

FY 2012 Implement Final Rule as appropriate

Target Met. The Commission issued Order Nos. 755 and 

755-A, Frequency Regulation Compensation in 

Organized Wholesale Power Markets on October 20, 

2011 and February 16, 2012, respectively. The 

Commission has reviewed the filings made by five RTOs 

and ISOs to comply with the Final Rule. The 

Commission determined that implementation of the Final 

Rule as proposed by three of the RTOs and ISOs is 

appropriate, subject to additional compliance 

requirements in some instances, and issued orders on 

these three compliance filings. The Commission is 

determining whether implementation of the Final Rule as 

proposed in the two remaining compliance filing is 

appropriate.

Further supporting this measure, the Commission issued 

a notice of proposed rulemaking on Third-Party 

Provision of Ancillary Services; Accounting and 

Financial Reporting for New Electric Storage 

Technologies on June 21, 2012.

FY 2013 Monitor implementation and performance

Target Met. The Commission issued orders on the two 

remaining compliance filings associated with Order No. 

755, Frequency Regulation Compensation in the 

Organized Wholesale Power Markets. Further, a filing 

by a regional transmission organization not initially 

subject to Order No. 755 was made in FY 2013 and is 

pending Commission action.

Further supporting this measure, the Commission issued 

Order No. 784, adopting the notice of proposed 

rulemaking on Third Party Provision of Ancillary 

Services; Accounting for Financial Reporting for New 

Electric Storage Technologies.

FY 2014 Evaluate performance and seek changes as necessary

Target Met. The Commission issued an order on 

clarification of Order No. 784 on February 20, 2014. The 

Commission has also approved compliance filings for all 

of the ISO/RTOs, except CAISO, as well as numerous 

compliance filings authorizing ancillary services sales in 

the bilateral markets.

Market reforms which will allow renewable resources to compete fairly will be explored and, as appropriate, 

implemented in Commission-jurisdictional markets.

Year Target Result

FY 2010

Perform outreach with industry and issue staff white 

paper identifying potential need for and types of market 

reforms

Target Met and Exceeded.Conducted outreach between 

October 1, 2009 and June 30, 2010 with RTOs/ISOs, 

storage and other technology providers, industrial 

customers, and research organizations. After the 

outreach was completed, the Commission determined a 

Notice of Inquiry could be issued in lieu of a staff white 

paper and still achieve the same purpose. On January 21, 

2010, issued an NOI seeking comment on the integration 

of variable energy (renewable) resources (Integration of 

Variable Energy Resources, Docket No. RM10-11-000).
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Federal Energy Regulatory Commission

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Market reforms which will allow renewable resources to compete fairly will be explored and, as appropriate, 

implemented in Commission-jurisdictional markets.

FY 2011 Issue a NOI/NOPR on market reforms, if appropriate

Target Met. The Commission issued a notice of 

proposed rulemaking, Integration of Variable Energy 

Resources (RM10-17-000) on November 18, 2010.

FY 2012 Issue Final Rule on market reforms, if appropriate

Target Met. On June 21, 2012, the Commission issued 

Order No. 764, Integration of Variable Energy 

Resources. 

FY 2013 Monitor implementation and performance

Target Met. On December 20, 2012 and September 19, 

2013, the Commission issued orders on rehearing of 

Order No. 764, Integration of Variable Energy 

Resources. 

The Commission also extended the deadline for 

submission of compliance filings from September 11, 

2013 to November 12, 2013.

FY 2014 Evaluate performance and seek changes as necessary

Target Met. The Commission has acted on 33 of 35 

filings submitted in compliance with Order No. 764. 

The Commission issued Order No. 792 on November 21, 

2013, implementing improvements in the process of 

interconnecting small generators and storage to the 

electric transmission grid.

By FY 2014, efficiency in market operations will be enhanced through deployment of new software and optimization of 

hardware.

Year Target Result

FY 2010

Internal release of staff white paper; industry outreach, 

including technical conferences, to identify best 

practices

Target Met. Explored opportunities to enhance 

operational efficiency in jurisdictional markets through 

the deployment of new modeling software and 

optimization of market operations. Staff held three 

conferences in June 2010 to gather information from the 

public regarding modeling and software enhancements. 

On July 29, 2010, delivered a white paper to the 

Commission’s Chief of Staff outlining opportunities for 

further work on this project. 

FY 2011

Pursue voluntary adoption of best practices by 

RTOs/ISOs; if appropriate, issue Policy Statement 

and/or NOI/NOPR

Target Met. A technical conference exploring best 

practices was convened on June 28-30, 2011.At the 

conference, market operators and others discussed best 

practices, software improvements and optimization 

processes. This forum allows for the diffusion of 

knowledge of useful best practices, reports to a wide 

audience on improvements under development, and 

provides useful information that market operators can use 

to access improvements in their own operations based on 

the best practices of their peers.
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Federal Energy Regulatory Commission

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By FY 2014, efficiency in market operations will be enhanced through deployment of new software and optimization of 

hardware.

FY 2012 Follow-up workshops on best practices implementation; 

issue Final Rule, if relevant

Target Met. On March 20, 2012, a workshop on best 

practices in software planning modeling was held.

A Final Rule is not relevant for this performance 

measure. In FY 2011, it was determined that a technical 

conference would be more effective in furthering 

implementation of best practices than initiating a 

rulemaking proceeding. Without a rulemaking 

proceeding in FY 2011, pursuance of a Final Rule in FY 

2012 was no longer relevant. Rather, staff held a followup workshop to identify best practices in the specific area 

of software planning modeling.

FY 2013 Monitor implementation and performance

Target Met. The Commission held a meeting on 

Potential Improvements in Computational Models for 

Markets of the Future to Enhance the Efficiency of 

Independent System Operators Markets in 2025 on May 

2, 2013. The Commission also held a Technical 

Conference on Increasing Real-Time and Day-Ahead 

Market Efficiency Through Improved Software (AD10-

12-004) on June 24-26, 2013. 

FY 2014 Evaluate performance and seek changes as necessary

Target Met. A meeting on ISO Market Design was held 

April 10, 2014 and a Technical Conference on Increasing 

Real-Time And Day-Ahead Market Efficiency Through 

Improved Software (AD10-12-005) was held June 23-25, 

2014.

By FY 2014, the performance of markets within and outside of ISOs/RTOs will be measured using a common set of 

metrics.3

Year Target Result

FY 2010 Explore and develop appropriate operational and 

financial metrics for ISOs/RTOs

Target Not Met.

During FY 2010, Commission staff worked with RTO 

and ISO staff, stakeholders and other experts to develop 

standardized metrics to track the performance of RTOs 

and ISOs and transactions in the markets they administer. 

Proposed metrics were made publicly available for 

comment in February 2010, and Commission staff has 

reviewed comments submitted on the proposed metrics. 

While the final metrics were not issued during FY 2010, 

this had no adverse impact on the program. The 

Commission expects to release the final metrics in early 

FY 2011 and to collect data from the RTOs and ISOs 

shortly thereafter. These final metrics will measure 

performance with respect to a number of areas, including: 

reliability standards, customer costs, demand response 

market penetration, and transmission investment.

 

3The FY 2012 Performance Target reflects an adjustment made to the Commission’s Strategic Plan as allowed by 

the GPRA Modernization Act of 2010.
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By FY 2014, the performance of markets within and outside of ISOs/RTOs will be measured using a common set of 

metrics.3

FY 2011 Explore and develop appropriate operational and 

financial metrics for non-ISO/RTO regions

Target Not Met. Commission staff has been engaged in a 

voluntary and collaborative process with a diverse group 

of non-RTO utilities to develop proposed operational and 

financial performance metrics for non-RTO regions. 

Outreach meetings were held in September 2011 with 

major industry organizations to discuss the proposed 

performance metrics. Following these outreach 

meetings, the proposed performance metrics will be 

issued for public comment. In FY 2012, Commission 

staff will issue a report that addresses the comments and 

recommends the final list of performance metrics. 

Participating non-RTO utilities will then issue their 

reports on these final metrics and Commission staff will 

issue a final report. While the final metrics were not 

issued during FY 2011, Commission staff is on schedule 

to issue final metrics in FY 2012 which will have no 

adverse impact on the program. Commission staff 

expects to release the final metrics and collect data from 

non-RTO utilities on these metrics by the third quarter of 

FY 2012.

FY 2012 Explore and develop appropriate operational and 

financial metrics for non-ISOs/RTO regions

Target Not Met. Beginning in FY 2011, Commission 

staff has been engaged in a voluntary and collaborative 

process with a diverse group of non-RTO utilities to 

develop proposed operational and financial performance 

metrics. It has taken longer than anticipated for this 

group to organize and reach consensus on a list of 

proposed metrics. In February 2012, the draft metrics 

were issued for public comment with an extended 

comment period of 75 days, 45 days longer than the 

typical 30 day comment period. Commission staff 

expects to issue in FY 2013 a report that will recommend 

a final list of performance metrics. This will not have a 

negative impact on program performance.

FY 2013 Establish appropriate common metrics between 

ISOs/RTOs and non-ISOs/RTOs

Target Met. Staff issued a report specifying performance 

metrics for regions outside ISO and RTO markets. The 

metrics in this report are a subset of the ISO and RTO 

performance metrics and therefore represent common 

metrics that are applicable to all regions. 

FY 2014 Monitor implementation and performance

Target Met. In FY 2014, staff issued a report measuring 

the performance of markets within and outside 

ISOs/RTOs using a common set of metrics.
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Page 87

By FY 2014, appropriate filings and issues will employ alternative dispute resolution and collaborative processes first.4

Year Target Result

FY 2010 Develop guidelines/tariff provisions to apply to 

filings/issues amenable to consensual resolution

Target Not Met. During FY 2010, staff reviewed and 

categorized two years of recent Commission orders 

which set cases for consensual resolution/hearing. 

Internal dialogue with senior staff and program managers 

provided additional understanding into the types of cases 

which may be amenable to consensual resolution. 

Through these efforts, a baseline of the types of cases and 

issues that the Commission traditionally sets for 

consensual resolution/hearing was established.

Following this internal communication, staff identified a 

list of approximately 30 external stakeholders who could 

provide valuable insight to the guideline development 

process. Acquiring the input from these external 

stakeholders has taken significantly more time than 

anticipated because the number of external parties is 

much higher than originally planned. The meetings that 

have occurred to date have been very productive and the 

Commission staff will continue to meet with the 

remaining parties throughout the first and second quarters 

of FY 2011. Although the Commission did not finalize 

the guidelines in FY 2010, it will not have a negative 

impact on overall program performance. The 

Commission staff will work diligently in FY 2011 to 

incorporate into the guidelines the external parties’ 

feedback. Further, the Commission will make every 

effort to initiate the pilot in the second half of FY 2011 in 

accordance with the established target date.

FY 2011 Implement rules setting forth guidelines/tariff 

provisions and initiate pilot programs

Target Not Met. The Commission was not able to meet 

this target due to the retirement of key management 

personnel during FY 2011. However, staff was able to 

make significant progress by meeting with 13 external 

stakeholder organizations. These organizations represent 

a broad spectrum of industries subject to Commission 

regulation. Their input was sought on new areas and 

types of issues where collaborative processes could foster 

the settlement of proceedings. Based on suggestions 

received in these meetings, staff prepared 

recommendations on additional issues and types of 

Commission proceedings where collaborative processes 

may be the most effective. Although the guidelines were 

not implemented in FY 2011, it will not have a negative 

impact on overall program performance.

FY 2012 Implement rules setting forth guidelines/tariff 

provisions and initiate pilot programs

Target Not Met. No additional measures for consensual 

resolution were identified as feasible; therefore, this 

measure is no longer applicable. This will not have a 

negative impact on program performance.

 

4The FY 2012 Performance Target reflects an adjustment made to the Commission’s Strategic Plan as allowed by 

the GPRA Modernization Act of 2010.
FY 2014 Performance and Accountability Report

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By FY 2014, 70 percent of company compliance programs reviewed on Commission audits for the audit focus areas are 

found to be adequate to demonstrate a culture of compliance.

Year Target Result

FY 2010 10%

Target Met. 50% (2/4) of compliance programs were 

found to demonstrate an adequate culture of compliance. 

Because this performance measure is new for FY 2010, 

only audits that were started and completed in FY 2010 

were included. In determining which audits would be 

included in the universe for this measure, the 

Commission developed general guidelines. In order to 

maintain consistency over time, only large, multi-scope 

audits will be included in this measure’s universe.

FY 2011 25%

Target Met. The Commission found that 63% (5/8) of 

compliance programs were adequate to demonstrate a 

culture of compliance.

FY 2012 40%

Target Met. The Commission found that 67% (8 of 12) 

compliance programs were adequate to demonstrate a 

culture of compliance.

FY 2013 55%

Target Met. 90% (18 out of 20) of compliance programs 

found to be adequate to demonstrate a culture of 

compliance.

FY 2014 70% Target Met. 89% (17/19) of compliance programs found 

to be adequate to demonstrate a culture of compliance.

By 2014, 70 percent of compliance programs reviewed through investigations that involve a penalty are found to be 

sufficiently robust to merit credit to reduce the penalty.

Year Target Result

FY 2010 10%

Target Met. During FY 2010, 26 percent (20 out of 77) of 

the relevant cases, the Commission found compliance 

programs in place at the time of the violation to be 

sufficiently robust as to merit credit to reduce or 

eliminate penalties.

FY 2011 25%

Target Met. In 32% (32/100) of the relevant cases, the 

Commission found compliance programs in place at the 

time of the violation to be sufficiently robust as to merit 

credit to reduce or eliminate penalties.

FY 2012 40%

Target Met. In 43% of the relevant cases, the 

Commission found compliance programs in place at the 

time of the violation to be sufficiently robust as to merit 

credit to reduce or eliminate penalties.

FY 2013 55%

Target Met. In 55% (10 out of 18) of the relevant cases,

the Commission found compliance programs in place at 

the time of the violation to be sufficiently robust as to 

merit credit to reduce or eliminate penalties.

FY 2014 70%

Target Met. In 71% (5 out of 7) of the relevant cases, 

Commission staff found company compliance programs 

to merit credit to reduce or eliminate penalties.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 89

By FY 2014, 80 percent of the Commission’s audit program will be planned using a risk-based approach.

Year Target Result

FY 2010 40% Target Met. 55% (52/94) audits planned using a riskbased approach.

FY 2011 60% Target Met. 85% (57/67) of the audits were planned by 

the Commission staff using a risk-based approach.

FY 2012 80% Target Met. 88% (43/49) of the audits were planned by 

the Commission staff using a risk-based approach.

FY 2013 80% Target Met. 98% (47/48) of audits planned using a riskbased approach.

FY 2014 80% Target Met. 100% (33/33) of audits planned using a riskbased approach.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 90

PERFORMANCE DATA FOR INFRASTRUCTURE: FY 2010 – 2014

By FY 2014, 50 percent of all new transmission projects will incorporate advanced technologies.

Year Target Result

FY 2010 5%

Target Met. In FY 2010, the Commission acted on 11 

requests for incentives or negotiated rate authority for 

new transmission. Of those 11 requests, the Commission 

found one project (9 percent) which included advanced 

transmission technologies.

FY 2011 10% Target Met. Of the projects that met the criteria, 67% 

(10/15) incorporated advanced technologies.

FY 2012 20% Target Met. Of the projects that met the criteria 68% (17 

projects) incorporated advanced technologies.

FY 2013 35% Target Met. Of the 25 projects that met the criteria, 16 

(64%) incorporated advanced technologies.

FY 2014 50%

Target Met. Of the projects that met the criteria, 30

(61%) incorporated advanced technologies.

By 2014, all public utilities will implement open and transparent transmission planning processes that include analysis 

and consideration on a comparable basis of proposed solutions involving any of generation, transmission, and demand 

resources.

Year Target Result

FY 2010

Assessment of transmission planning process best 

practices, including the potential for collaborative 

decision making, and issue NOPR, as appropriate 

(Assessment includes how options to transmission are

considered.)

Target Met. Upon review of more than 3,000 pages of 

comments and significant staff-led outreach, staff 

prepared recommendations for Commission 

consideration that led to the issuance of a NOPR on June 

17, 2010 (Transmission Planning and Cost Allocation by 

Transmission Owning and Operating Public Utilities, 

Docket No. RM10-23-000).

FY 2011 As appropriate, issue Final Rule on transmission 

planning process best practices

Target Met. The Commission issued the final rule, Order 

No. 1000, Transmission Planning and Cost Allocation by 

Transmission Owning and Operating Public Utilities, 

(RM10-23-000) on July 17, 2011.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 91

By 2014, all public utilities will implement open and transparent transmission planning processes that include analysis 

and consideration on a comparable basis of proposed solutions involving any of generation, transmission, and demand 

resources.

FY 2012 Implement Final Rule as appropriate

Target Met. The Commission in Order No. 1000 

encouraged public utility transmission providers to 

engage in frequent dialogue with Commission staff to 

explore issues that are specific to each transmission 

planning region in preparing their compliance filings 

(which are due in October 2012). To facilitate that 

dialog, Commission staff identified regional meetings 

where public utilities intended to discuss compliance 

with Order No. 1000, and participated, by phone and inperson, at 173 of those meetings. Staff’s participation 

was both to monitor the progress of each region and to 

act as a resource for public utility transmission providers 

and stakeholders about issues related to Order No. 1000. 

In addition, staff was available to answer questions and 

meet with public utility transmission providers and 

stakeholders that had specific questions about Order No. 

1000 compliance. 

FY 2013 Monitor implementation and performance

Target Met. In FY 2013, the Commission issued fifteen 

orders addressing all of the initial regional compliance 

filings. Also, Commission staff attended, in person and 

through teleconference, various Order No. 1000 open 

meetings held in each transmission planning region. At 

these meetings, staff provided assistance to public 

utilities, stakeholders and other interested parties 

regarding the interregional compliance requirements of 

Order No. 1000. 

FY 2014 Evaluate performance and seek changes as necessary

Target Met. In FY 2014, the Commission issued orders 

on twelve second round regional compliance filings made 

by public utility transmission providers. The 

Commission has received and Commission staff have 

reviewed interregional compliance filings from all 

regions.

By FY 2014, 100 percent of jurisdictional natural gas companies will be examined for feasibility of installing waste heat 

recovery systems.

Year Target Result

FY 2010 20%

Target Met. In FY 2010, Commission staff examined 44 

(20 percent) of the Commission’s jurisdictional natural 

gas companies for feasibility of installing waste heat 

recovery systems. 

FY 2011 40%

Target Met. Commission staff examined a total of 40% 

of the Commission’s jurisdictional natural gas companies 

(65 of 159) for feasibility of installing waste heat 

recovery systems. In FY 2011 specifically, Commission 

staff examined 32 companies.

FY 2012 60%

Target Met. In FY 2012, Commission staff examined a 

total of 62% of the Commission’s jurisdictional natural 

gas companies (98 of 159) for feasibility of installing 

waste heat recovery systems. In FY 2012 specifically, 

Commission staff examined 33 companies. 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 92

By FY 2014, 100 percent of jurisdictional natural gas companies will be examined for feasibility of installing waste heat 

recovery systems.

FY 2013 80%

Target Met. Between FYs 2010 and 2013, Commission 

staff examined a total of 81% of the Commission’s 

jurisdictional natural gas companies (129 of 159) for 

feasibility of installing waste heat recovery systems. In 

FY 2013 specifically, Commission staff examined 31 

companies.

FY 2014 100%

Target Met. Between FYs 2010 and 2014, Commission 

staff examined a total of 100% of the Commission’s 

jurisdictional natural gas companies (169 of 169) for 

feasibility of installing waste heat recovery systems. In 

FY 2014 specifically, Commission staff examined 40 

companies.

By FY 2014, risk-informed decision making will be incorporated into the FERC dam safety program.

Year Target Result

FY 2010 Develop action plan

Target Met. In FY 2010, the Commission developed and 

finalized its RIDM Action Plan which outlines the work 

efforts required over the next four years to incorporate 

RIDM into its dam safety program.

FY 2011 Portfolio Risk Assessment of FERC dam inventory

Target Not Met. In FY 2011 the Commission did not 

complete the Portfolio Risk Assessment; however, the 

screening level portfolio risk assessment tool was 

finalized. 

FY 2012 Determine RIDM is consistent with regulatory process

Target Met. As a result of the Screening Level Portfolio 

Risk assessment of the Commission’s dams conducted in 

FY 2012, it was determined that RIDM could be 

incorporated into the Commission’s dam safety program. 

FY 2013 Finalize policy and technical guidelines

Target Met. Ten chapters finalizing the policy and 

technical guidelines on the use of Risk Informed 

Decision Making in the Commission’s Dam Safety 

Program have been completed.

FY 2014 Fully incorporate RIDM into the dam safety program

Target Met. RIDM has been incorporated into the FERC 

Dam Safety Program; licensees may request the use of 

RIDM, and, if the necessary conditions are met, the 

request will be approved. The chapters developed to date 

provide the necessary guidelines to implement RIDM in 

the FERC Dam Safety Program. The Commission will 

continue to seek input on the Engineering Guidelines and 

current comments on seven Engineering Guidelines 

chapters. The comment period on these chapters will end 

April of 2015. In addition, two pilot studies are 

underway, and it is expected that two more will be 

conducted within the next year. The Commission 

expects to continually improve upon the RIDM program 

to maintain the highest levels of engineering expertise 

available.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 93

By FY 2014, proposed Reliability Standards will be processed in a timely manner at least 80 percent of the time.

Year Target Result

FY 2010 75% Target Met.96% of filed reliability standards have orders 

issued within 18 months.

FY 2011 75% Target Met. 97% of proposed reliability standards have 

been processed with orders issued within 18 months.

FY 2012 75%

Target Met. 100% of filed reliability standards (including 

regional and CIP standards) have been processed with 

orders issued within 18 months.

FY 2013 80%

Target Met. 100% of filed reliability standards have 

orders issued within 18 months (includes regional and 

CIP standards).

FY 2014 80%

Target Met. 100% (26 of 26) of filed reliability standards 

have been processed with orders issued within 18 

months.

By FY 2014, Reliability Standards will be enforced effectively, resulting in a reduction of the frequency of repeat 

violations by at least 10 percent.

Year Target Result

FY 2010 Establish tracking process

Target Met. The Commission developed in FY 2010 a 

database to track violations from Notices of Penalty filed 

by the ERO. As part of this process, the Commission 

determined the measurable parameters (e.g., what 

constitutes a repeat violation over a designated time 

period) to facilitate a determination as to the observed 

rate of repeat violations of the Reliability Standards.

FY 2011 Track violations per entity

Target Met. Through the tracking mechanism established 

in FY 2010, staff has been tracking violations per entity 

during FY 2011 to analyze the current rate of violations 

and establish a baseline rate. A report analyzing the 

collected data from Notices of Penalty filed by the ERO 

was completed by 8/31/11.

FY 2012 Track violations per entity

Target Met. The annual report analyzing FY 2011 data 

was completed on December 2, 2011 and an additional 

mid-year report was completed on July 30, 2012.

FY 2013 Identify number of repeat violations using NOPs Target Met. The Commission developed a report, 

tracking and analyzing repeat violations.

FY 2014 Decrease repeat violations by 10%

Target Not Met. The cumulative repeat rate for FY 2014 

was 35.8%, which is above the target rate of 19.5%. The 

measure was not met due to several external factors, 

including NERC's shift away from increasing penalties as 

a deterrent and towards resource efficiency. 

Nevertheless, staff concluded that the overall reliability 

objective, protecting reliability by effectively enforcing 

the Reliability Standards, was met.
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 94

By FY 2014, reliability parameters that could affect national goals of reducing carbon and increasing the penetration of 

renewable energy resources on the electric transmission grid will be finalized.

Year Target Result

FY 2010 Establish contacts and develop research, data collection 

and reporting processes

Target Met. In FY 2010, Commission staff established 

approximately 100 industry contacts across the nation 

and internationally. The Commission has led and 

participated in the efforts to conduct technical studies on 

Frequency Response, Electromagnetic Pulse and the 

potential impact of early Coal Plant retirements due to 

potential regulations. The research the Commission staff 

has done on complex and highly technical studies provide 

guidance and direction in establishing the parameters to 

protect and preserve reliability as industry integrates 

large amounts of renewable generation into the bulk 

power system. 

FY 2011

Track studies and identify or propose reliability 

parameters. Perform initial analysis to assess if they are 

feasible for the bulk power system

Target Met. Commission staff performed and completed 

analyses on the Frequency Response study including 

identifying reliability parameters. The report on 

Frequency Response was issued in January 2011. 

NERC's Reliability Metrics Work Group adopted 

Frequency Response as a reliability parameter to track on 

a trial basis.

FY 2012

Track studies and identify or propose reliability 

parameters. Perform expanded analysis to assess if they 

are feasible for the bulk power system

Target Met. Commission staff tracked three studies 

identifying several reliability parameters and performed 

two expanded analyses to assess their feasibility. 

Specifically, staff 1) performed detailed technical 

analysis related to the Arizona-Southern California 

outages showing system operating limits, interconnection 

reliability operating limits, voltage collapse and special 

protection scheme reliability parameters were not 

appropriately considered; 2) tracked and conducted an 

expanded detailed analysis of the EPA regulations on the 

Bulk Power System and participated in the Commissionled technical conference; and 3) analyzed documentation 

and conducted a technical workshop on voltage 

coordination on high voltage grids to assess the 

feasibility of adjusting voltage reliability parameters.

FY 2013 Present analysis to industry

Target Met. The Commission received and reviewed 

industry comments in response to the Commission-issued 

report on Frequency Response.

FY 2014 Consider industry input and finalize the parameters

Target Met. After reviewing the industry comments in 

response to the Commission-issued report on Frequency 

Response, Commission staff determined that no changes 

to the parameters were warranted. 
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 95

Appendix A: Statutory Authority
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 96

Provided below is a listing of federal statutes applicable to the Commission. Links to these statutes are available 

on the Commission’s website at www.ferc.gov under Legal Resources.

Electric, Hydropower, & General Statutes

Federal Power Act

Energy Policy Act of 2005

Energy Policy Act of 1992

Power Plant & Industrial Fuel Use Act

Department of Energy Organization Act

Electric Consumers Protection Act (ECPA)

Electronic Freedom of Information Act of 1996

Energy Independence and Security Act of 2007 (EISA)

Public Utility Holding Company Act of 2005 (PUHCA)

Public Utility Regulatory Policies Act of 1978 (PURPA)

Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)

Information Technology Management Reform Act of 1996 (ITMRA/Clinger-Cohen Act)

Natural Gas Statutes

Natural Gas Act

Natural Gas Policy Act of 1978

Alaska Natural Gas Pipeline Act of 2004

Alaska Natural Gas Transportation Act of 1976

Outer Continental Shelf Lands Act of 1978 (OCSLA)

Natural Gas Wellhead Decontrol Act of 1989 (NGWDA)

Oil Statutes

Interstate Commerce Act

Oil Pipeline Regulatory Reform

Environmental and Other Statutes

Clean Air Act

Clean Water Act

Rivers and Harbors Act 

Endangered Species Act

Wild and Scenic Rivers Act

Coastal Zone Management Act 

National Historic Preservation Act 

Fish and Wildlife Coordination Act

National Environmental Policy Act (NEPA)
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 97

Appendix B: Acronym Listing
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 98

Acronym Full Description

ADR Alternative Dispute Resolution

CAISO California Independent System Operator

CSRS Civil Service Retirement System 

C.F.R. Code of Federal Regulations 

CIP Critical Infrastructure Protection

DOE Department of Energy

DOL Department of Labor 

DRS Dispute Resolution Service

EQR Electric Quarterly Report

ERO Electric Reliability Organization

FEVS Federal Employee Viewpoint Survey

FECA Federal Employees Compensation Act 

FERS Federal Employees’ Retirement System 

FERC Federal Energy Regulatory Commission

FFMIA Federal Financial Management Improvement Act of 1996 

FPA Federal Power Act

FPC Federal Power Commission

FFT Find, Fix, Track and Report

FY Fiscal Year

FTE Full Time Equivalent

FRAE Further Revised Annuity Employees 

GSA General Services Administration 

GPRA Government Performance and Results Act 

IOAA Independent Offices Appropriations Act of 1952 

ISO Independent System Operator

ISO-NE ISO New England

LNG Liquefied Natural Gas

MISO Midcontinent Independent System Operator

NEPA National Environmental Policy Act

NYISO New York Independent System Operator

NERC North American Electric Reliability Corporation

NOI Notice of Inquiry

NOPR Notice of Proposed Rulemaking

OE Office of Enforcement 

OMB Office of Management and Budget

OPM Office of Personnel Management 

PJM PJM Interconnection

RTO Regional Transmission Organization
FY 2014 Performance and Accountability Report

Federal Energy Regulatory Commission

Page 99

RAE Revised Annuity Employees 

RIDM Risk-informed Decision Making

SPP Southwest Power Pool

SBR Statement of Budgetary Resources 

SFFAS Statement on Federal Financial Accounting Standards 

SSR System Support Resources 

D.C. Circuit U.S. Court of Appeals for the District of Columbia Circuit 

WMR Weekly Market Review