FY 2009 

PERFORMANCE AND 

ACCOUNTABILITY REPORT 

FEDERAL ENERGY REGULATORY COMMISSION 

NOVEMBER 2009 

Jon Wellinghoff 

Chairman 

Table of Contents 

Letter from the Chairman.............................................................................................................1 

Management’s Discussion and Analysis......................................................................................3 

Introduction......................................................................................................................................4 

Organizational Structure ..................................................................................................................4 

Strategic Plan Overview ..................................................................................................................6 

Strategies for Carrying Out the Commission’s Responsibilities .....................................................7 

Business Plan ...................................................................................................................................9 

Full Cost Recovery ..........................................................................................................................9 

Program Performance Overview......................................................................................................9 

Financial Performance Overview ..................................................................................................18 

Controls, Systems, and Legal Compliance ....................................................................................22 

Possible Future Effects of Existing Events and Conditions...........................................................26 

Limitations of the Financial Statements ........................................................................................26 

Improper Payments Information Act Reporting ............................................................................26 

Financial Section..........................................................................................................................27 

Message from the Chief Financial Officer.....................................................................................28 

Independent Auditors’ Report........................................................................................................30 

Balance Sheets ...............................................................................................................................34 

Statements of Net Cost...................................................................................................................35 

Statements of Changes in Net Position..........................................................................................36 

Statements of Budgetary Resources...............................................................................................37 

Statements of Custodial Activity ...................................................................................................39 

Notes to Financial Statements........................................................................................................40 

Performance Report ....................................................................................................................57 

Introduction....................................................................................................................................58 

Performance Measurement Data for Energy Infrastructure: 

FY 2006 – FY 2009 .......................................................................................................................59 

Performance Measurement Data for Competitive Markets: 

FY 2006 – FY 2009 .......................................................................................................................74 

Performance Measurement Data for Enforcement: 

FY 2006 – FY 2009 .......................................................................................................................85 

Performance Measurement Data for Supporting Initiatives: 

FY 2006 – FY 2009 .......................................................................................................................92 

Appendix A: Organizational Chart..........................................................................................105 

Appendix B: FY 2006 – 2011 Strategic Plan ...........................................................................109 

Appendix C: Statutory Authority.............................................................................................113 

Appendix D: Acronym Glossary...............................................................................................117 

FEDERAL ENERGY REGULATORY COMMISSION 

WASHINGTON. DC 20426 

OFFICE OF THE CHAIRMAN 

Letter from Chairman Wellinghoff 

I am pleased to present the Federal Energy Regulatory Commission Performance and 

Accountability Report for fiscal year 2009. This report was prepared in accordance with 

the guidelines set forth in Office of Management and Budget Circular A-136 and Section 

230 of Circular A-II. 

This report details the progress the Commission has made in achieving its mission to 

regulate and oversee energy industries in the economic, environmental, and safety 

interests of the American public. The strategic goals, objectives, and strategies that 

support the Commission's mission are included in Appendix B. 

The Commission has completed evaluations of its management controls and financial 

management systems and, based on these evaluations, I am providing a statement of 

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. In addition, I can provide assurance that the performance information 

contained in this repoli is complete and reliable and describes the results achieved 

towards our goals. 

Sincerely, 

\~r' r Jon WelLin 

Ch 'rman 

Fed . ral Energy Regulatory Commission 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

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Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

Management’s 

Discussion and Analysis 

(Unaudited) 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

4 

Introduction 

In accordance with the guidelines set forth in Office of Management and Budget (OMB) Circular 

A-136 and Section 230 of Circular A-11, this report presents the Federal Energy Regulatory 

Commission’s (the Commission’s, FERC’s) fiscal year (FY) 2009 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 2006 through 2009. 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 2009. Approximately 1,396 full time equivalents (FTEs) 

carried out the Commission’s mission in FY 2009 using a budget of $273.4 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 Chair 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 ten 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. 

The Commission modified its organizational structure in FY 2009. The Commission established 

its tenth office, the Office of Energy Policy and Innovation on May 4, 2009. Formerly a division 

within the Office of Energy Market Regulation, this new office provides leadership in the 

development and formulation of policies and regulations to address emerging issues affecting 

wholesale and interstate energy markets. An organizational chart, as of June 30, 2009, is 

included in Appendix A. The following is a brief description of the ten offices and their 

operational roles. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

5

Office of Administrative Law Judges - Resolves contested cases as directed by the 

Commission either through impartial hearing and decision or through negotiated settlement, 

ensuring that the rights of all parties are preserved. 

Office of Administrative Litigation - Litigates or otherwise resolves cases set for hearing. 

Represents the public interest and seeks to litigate or settle cases in an equitable manner while 

ensuring the outcomes are consistent with Commission policy. The Dispute Resolution Service is 

located within this office and provides neutral, third-party assistance using alternative dispute 

resolution methods to parties in regulatory and environmental conflict; trains staff and energy 

stakeholders in collaborative problem-solving tools to develop and ensure a reliable 

infrastructure. 

Office of Electric Reliability - Oversees the development and review of mandatory reliability 

and security standards; ensures compliance with the approved mandatory standards by the users, 

owners and operators of the bulk power system. 

Office of Energy Market Regulation - Provides technical and policy advice on matters 

involving markets, tariffs and rates relating to electric, natural gas and oil pipeline facilities and 

services as well as demand response, energy efficiency, distributed generation, renewable energy 

issues, greenhouse gas emissions policies and advanced technologies relevant to the grid and 

wholesale markets. 

Office of External Affairs - Responsible for all external communications with the public and 

media for the Commission. 

Office of Energy Policy and Innovation - Issues, coordinates and develops proposed policy 

reforms to address emerging issues affecting wholesale and interstate energy markets, including 

such areas as climate change, the integration of renewable resources, and the deployment of 

demand response and distributed resources, smart grid and other advanced technologies. 

Office of Energy Projects - Fosters economic and environmental benefits for the Nation 

through the approval and oversight of hydroelectric, natural gas (including pipelines, storage and 

liquefied natural gas facilities) and electric transmission projects that are in the public interest. 

Office of Enforcement - Protects customers through understanding markets and their regulation, 

timely identifying and remedying market problems, assuring compliance with rules and 

regulations, and detecting violations and crafting appropriate remedies, including civil penalties. 

Office of the Executive Director - Provides administrative support services to the Commission 

including human resources, procurement, information technology, organizational management, 

financial and logistic functions. 

Office of the General Counsel - Provides legal services to the Commission. Represents the 

Commission before the courts and Congress and is responsible for the legal aspects of the 

Commission’s activities. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

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Mission

Regulate and oversee energy industries in the 

economic, environmental, and safety interests of the 

American public. 

Vision

Abundant, reliable energy in a 

fair competitive market. 

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 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 C. The Commission’s vision is to 

promote abundant, reliable energy in a fair, competitive market thereby supporting a strong, 

stable national economy. To accomplish this, the Commission has three main goals: 

1. Energy Infrastructure 

Goal: Promote the Development of a Strong Energy Infrastructure. 

This goal encourages investment in the infrastructure needed to sustain energy markets by 

expediting the decision-making process, maintaining regulatory and cost certainty, and 

protecting the energy infrastructure. This goal, which focuses on infrastructure, covers many of 

the Commission’s important responsibilities such as, pipeline certificates, hydropower licenses 

and preliminary permits, liquefied natural gas (LNG) siting and inspections, compliance 

activities, environmental and other licensing conditions, dam safety inspections and most rate 

determinations. This goal also captures the Commission’s responsibilities over the reliability of 

the interstate transmission grid. 

2. Competitive Markets 

Goal: Support Competitive Markets. 

This goal focuses on the competitive forces within the electric and gas markets, and the rules that 

govern those markets. This involves the Commission employing best practices in market rules, 

promoting transparency in electric and gas markets, and reforming market policies where 

necessary. Along with some traditional work in the area of rate determinations, this goal 

includes various initiatives to address market power. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

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3. Enforcement 

Goal: Prevent Market Manipulation. 

This goal ensures that competitive energy markets benefit the Nation over the long run by 

ensuring that the Commission will identify and remedy energy market problems. This entails 

recognizing problems quickly and addressing them before they become severe. Effective 

internal compliance programs within companies and self-policing will also help achieve this 

goal. The Commission will conduct traditional investigations and apply its expanded penalty 

authority where appropriate. 

The Commission’s Strategic Plan also includes several initiatives that support each of the 

strategic goals. These initiatives include functions such as enhancing the talents and skills of the 

staff through recruitment and training; building effective, customer-friendly information 

technology services; supporting the Commission with logistics and financial services; and 

strengthening strategic management processes. Additionally, the initiatives include the 

Commission’s litigation, alternative dispute resolution services, communication, outreach and 

other collaboration efforts. 

As the Commission works to achieve its mission, its focus remains on five guiding principles: 

organizational excellence, due process and transparency, regulatory certainty, stakeholder 

involvement, and timeliness. Whether the Commission is adjudicating a rate filing, ruling on a 

permit application, or developing a new policy, it strives to meet these criteria as a means of 

ensuring that each of its actions is consistent with the public interest. 

Strategies for Carrying Out the Commission’s Responsibilities 

The backbone of the Commission’s work is to ensure that energy infrastructure is developed in 

the public interest and that wholesale electric and natural gas rates are just and reasonable and 

not unduly discriminatory or preferential. As early as 1986, the Commission promoted effective 

competition in the wholesale markets it regulates by establishing rules for open access to 

transmission facilities. Over time, the natural gas and electric industries transformed from 

companies using their monopoly-owned transportation and transmission facilities to supply all 

the needs of their own wholesale customers, to companies providing competing suppliers and 

wholesale customers with open and non-discriminatory access to their facilities, under 

Commission-approved tariffs. This allows independent suppliers to compete for natural gas and 

electric energy sales and to offer market choices for customers at wholesale. The development 

and operation of regional transmission organizations (RTOs), independent transmission system 

operators (ISOs), and independent transmission companies in the electric industry and market 

hubs in the gas industry has increased competitive opportunities in the provision of services for 

buying and selling energy. The Commission monitors wholesale power and natural gas markets 

to ensure that its policies mitigate market power. 

Regulation and competition work in concert and the Commission relies on a combination of both 

to carry out its duties across industries. While the Commission encourages competitive 

wholesale markets, they continue to be subject to the Commission’s regulatory oversight. The 

Commission’s energy market regulation will continue to refine market operations so competition 

encourages investment in infrastructure in a manner that is efficient and protects customers. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

8 

In addition to the regulation and oversight of energy markets, the Commission must respond 

timely to requests for infrastructure development to meet the growing demand for energy. The 

Commission’s authority applies when companies propose to expand or construct additional 

hydropower, LNG, natural gas pipelines, storage, and related facilities, and electric transmission 

lines. In an effort to reduce the amount of time it takes to process an application, a perceived 

barrier to investment, the Commission has expedited the licensing and certification process of 

these facilities by having Commission staff actively participate in projects that undergo the prefiling process. Pre-filing allows the environmental review process to start earlier in the project 

review and allows the public, government agencies, and other stakeholders to get involved at a 

time when fundamental decisions are being made, all of which helps to open the communication 

earlier in the project review process so problems can be averted later in the process. The 

Commission’s participation and initiative in these efforts have allowed for the filing of more 

complete applications which enables more efficient and expeditious licensing actions by the 

Commission. 

To protect and improve the reliability and security of the Nation’s bulk power system, the 

Commission will oversee the development and review of mandatory reliability and security 

standards. The Commission will achieve this through active involvement in the standards 

development process of the Electric Reliability Organization (ERO) and review of all reliability 

standards filed by the ERO. The Commission will provide extensive oversight of the ERO 

processes and compliance efforts to ensure firm, fair, and consistent implementation of, and 

compliance with, the approved mandatory reliability standards, including cyber and physical 

security. FERC will also join or lead incident and alleged violation analyses and/or 

investigations following bulk-power system incidents or complaints. The Commission will also 

track and review all alleged violations, mitigation plans, and proposed penalties and conduct 

ERO and regional entity performance reviews and audits. Finally, the Commission will review 

all notices of appeal of ERO compliance registry decisions. 

The Commission will rely on its Reliability Monitoring Center and its 24/7 emergency message 

system to monitor the integrity of the system continuously. In addition, FERC will monitor the 

reliability and adequacy planning of the bulk-power system by evaluating the ERO’s and 

Regional Entities’ short-term and long-term reliability assessments for compliance with 

reliability planning standards as well as the adequacy of the bulk-power system and evaluating 

siting applications within the DOE designated National Interest Electric Transmission Corridors. 

To ensure that jurisdictional infrastructure projects are safe, the Commission performs detailed 

safety and security analysis during its comprehensive review of a proposal for a new LNG or 

hydropower facility. The Commission also monitors and inspects these projects throughout the 

life cycle to ensure safety and security compliance. During construction, Commission staff 

engineers frequently inspect a project and once construction is complete, the Commission 

follows inspection schedules depending on the type of facility. In addition, all LNG and 

hydropower facilities are required to coordinate with federal, state and local agencies and 

develop emergency response plans. 

For the ongoing success of market operations and infrastructure development, the Commission 

must ensure that all of its rules and regulations are followed by regulated entities, and those 

doing business with regulated entities. Among the most notable, FERC has codified Market 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

9

Behavior Rules and the prohibition of energy market manipulation. In addition to actively 

monitoring compliance, the Commission also supports and strongly encourages regulated entities 

to maintain effective internal monitoring and compliance programs. If an entity is found to be in 

violation of any rules or regulation, the Commission has established factors it will consider when 

assessing civil penalties or developing remedies. This allows the Commission’s enforcement to 

be fair; a key component of the Commission’s approach to enforcement. The Commission has 

provided greater due process to industry by, for example, providing a no-action letter process and 

increasing the opportunities for companies to resolve disputed matters during the course of an 

audit. To facilitate fair and equitable compliance and enforcement efforts, the Commission 

conducts outreach efforts with the regulated community and adjusts enforcement polices where 

appropriate. 

On September 30, 2009, the Commission submitted to Congress its updated Strategic Plan which 

will serve as a guide through fiscal year 2014. During this update process, the Commission 

reassessed its, mission, strategic goals and objectives. The Commission identified strategies and 

realigned resources to accomplish the updated mission of assisting consumers in obtaining 

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

regulatory and market means. In the updated Strategic Plan, the Commission has two strategic 

goals: 

• Just and Reasonable Rates, Terms and Conditions: Ensure that rates, terms and conditions are 

just, reasonable and not unduly discriminatory or preferential. 

• Infrastructure: Promote the development of safe, reliable, and efficient infrastructure that 

serves the public interest. 

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, due dates, priorities, 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 2009, 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 Federal Power Act (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 a few of 

the Commission’s key achievements during FY 2009. The performance measures and targets 

were selected from the Commission’s FY 2009 Performance Budget Request. A complete list of 

the Commission’s performance measurement data for fiscal years 2006 through 2009 is included 

in the Performance Report section of this report. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

10 

Performance Measurement Data for Energy Infrastructure

Goal: Promote the Development of a Strong Energy Infrastructure 

Market and Financial Regulation Accomplishments 

Performance Measure Performance Target Results

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. 

In FY 2009, the Commission advanced its goal of stimulating investment in needed transmission 

infrastructure by approving applications for incentive rate treatment of 17 transmission projects 

to build over 7,000 miles of transmission lines at a total cost over $27 billion. Included in these 

applications were a number of proposals for 765 kV high-voltage transmission projects. The 

Green Power Express is one such proposal approved in April 2009. This $12 billion project will 

add 3,000 miles of transmission to the electric grid. This project aims to connect major 

population centers in Midwestern states with the large quantities of renewable generation present 

in nearby rural areas. 

Performance Measure Performance Target Results

Timeliness of processing cost 

recovery cases (including prudentlyincurred 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 

▪ Target not met; 50% (2 of 4) filed 

within 12 months of Briefs Opposing 

Exceptions. 

In FY 2009, the Commission promoted nondiscriminatory access to energy markets by allowing 

flexibility in rate design. For example, wind and other renewable resources are often “locationconstrained” and do not have the flexibility to locate near existing transmission lines. To 

recognize this difference among transmission customers and reduce barriers to development of 

renewable resources, the Commission approved a proposal by Southwest Power Pool (SPP) in 

June 2009, which allows SPP to change their transmission cost allocation for wind resources and 

to designate them as “network resources.” This designation makes more of the costs associated 

with wind resource projects eligible for “base plan” funding, or funding for certain network 

upgrades that are included in and constructed under the SPP transmission expansion plan. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

11

In February 2009, the Commission revised the criteria it uses for evaluating merchant 

transmission projects and rates. At times, merchant transmission projects find it difficult to 

compete with existing transmission owners, as the existing transmission facilities may be 

subsidized by other sectors of the utilities’ businesses. To help promote the development of 

transmission projects, the Commission introduced the concept of an anchor shipper to the 

process. Revising the way it evaluates negotiated-rate applications for merchant transmission 

lines, the Commission for the first time allowed developers to pre-subscribe half the capacity of 

their proposed lines to an anchor customer. This policy is particularly beneficial for large and 

costly projects of the type required for efficiently serving location-constrained renewable energy 

resources. 

Performance Measure Performance Target Results

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.

The Commission launched its EQR Price Analysis in FY 2009. On an ongoing basis and in 

support of the Commission’s market-based rate program, the Commission analyzes price, 

volume, and contract data to determine whether reported sales indicate that a seller may be 

charging excessive rates. Transactions that are outside expected ranges, as defined by the market, 

are investigated. Sellers that routinely charge high market-based rate prices relative to other 

sellers are identified and their sales scrutinized. 

Other Significant Market and Financial Regulation Accomplishments

In July 2009, the Commission proposed to modify its contract reporting requirements for (1) 

intrastate pipelines providing interstate services pursuant to section 311 of the Natural Gas 

Policy Act of 1978 and (2) Hinshaw pipelines providing interstate services subject to the 

Commission’s Natural Gas Act jurisdiction pursuant to blanket certificates issued under section 

284.224 of the Commission’s regulations. The Commission proposed to increase the availability 

and usefulness of the transactional information reported by intrastate and Hinshaw pipelines by 

requiring that the existing annual section 284.126(b) transactional reports be filed on a quarterly 

basis. In addition, the Commission proposed to require that the quarterly reports (1) include 

certain additional types of information and cover storage transactions as well as transportation 

transactions, (2) be filed in a uniform electronic format and posted on the Commission’s web 

site, and (3) be public and not be filed with information redacted as privileged. These proposals 

are intended to improve market transparency without making it unduly burdensome for intrastate 

and Hinshaw pipelines to participate in interstate markets. 

FY 2009 was also the inaugural filing year for FERC Form No. 552, Annual Report of Natural 

Gas Transactions. In FY 2009, approximately 1,100 filers submitted a Form No. 552, including 

approximately 300 which required follow up by Commission staff. The Commission staff also 

drafted a list of the most common filing errors and continues to work with companies to 

determine if they are required to file the Form No. 552. In response to requests by industry 

officials, Commission staff updated Commission’s website in March 2009 to include a list of 

Frequently Asked Questions regarding Form No. 552. The guidance provides details on 

reporting requirements, fixed price trades, energy management agreements, exchange for 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

12 

physical transactions, physical basis transactions, Nymex Trigger and Nymex Plus transactions, 

cashouts, unprocessed gas, pre-bidweek transactions and take or release contracts. 

Reliability Accomplishments 

Performance Measure Performance Target Results

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. 

In FY 2009, the Commission reviewed and approved the business plans and budgets for North 

American Electric Reliability Corporation, as the Electric Reliability Organization (the ERO) 

and for the eight Regional Entities, as well as the budget for the Western Interconnection 

Regional Advisory Body. However, the Commission expressed concern that the ERO’s budget 

may not provide adequate funding for certain activities, and conditioned acceptance of the North 

American Electric Reliability Corporation (NERC) budget on a compliance filing that provided 

further explanation regarding funding levels by the ERO and a possible supplemental request for 

funding. Also, the order directed that additional information be supplied to the Commission to 

help the Commission assess the accomplishments achieved under the business plans. 

Additional accomplishments in the Reliability Program Logistics & Security:

In FY 2009 the Commission reviewed and approved version 2 of the Critical Infrastructure 

Protection (CIP) Reliability Standards while concurrently directing significant modifications,1

which pertain to cyber security protections for the bulk power system. These CIP Reliability 

Standards represent NERC’s first phase of revisions to comply with the Commission directives 

contained in Order No. 706 and they will become effective on April 1, 2010. In addition, the 

Commission reviewed and approved the remaining 51 violation risk factors associated with the 

CIP Reliability Standards that had been directed for revision or completion by Order No. 706. 

In order to assure that no cyber security regulatory gap occurs in the application of the CIP 

Reliability Standards, the Commission proposed and issued Order No. 706-B in March 2009 

clarifying that the facilities within a nuclear generation plant in the United States that are not 

regulated by the U.S. Nuclear Regulatory Commission (NRC) are subject to compliance with the 

mandatory CIP standards. The Commission directed the ERO to establish a stakeholder process 

to determine the appropriate implementation timetable for nuclear power plants, and to submit a 

compliance filing to the Commission within 180 days of the date of the order, and is now 

addressing that compliance filing. In addition, on September 2, 2009, the Commission and the 

NRC executed a Memorandum of Agreement which outlines their cooperation and 

communication on matters of mutual interest such as the enforcement of CIP Reliability 

Standards at nuclear power plants. Further, the Commission participated in the discussions 

 

1

 CIP-002-2 Critical Cyber Asset Identification, CIP-003-002 Security Management Controls, 

CIP-004-002 Personnel & Training, CIP-005-002 Electronic Security Perimeters, CIP-006-002 

Physical Security Perimeters, CIP-007-002 System Security Management, CIP-008-002 Incident 

Reporting and Response Planning, and CIP-009-002 Recovery Plans for Critical Cyber Assets. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

13

encouraged by Order No. 706-B between the ERO and the NRC on the development of a 

memorandum of understanding on enforcement of the CIP standards. 

In FY 2009, some of the requirements of the eight approved CIP Reliability Standards became 

mandatory, enforceable and auditable compliant. During this first year, Commission staff attended 

as “observers” six Cyber Security audits of registered entities led by the Regional Entities. In 

addition, the Commission participated in approximately four compliance violation investigations 

and reviewed mitigation plans and proposed Notices of Penalty related to subsequent violations of 

the CIP Reliability Standards. 

Additional accomplishments in Reliability Standards: 

The Commission issued two notice of proposed rulemakings related to reliability standards that 

were particularly significant: 

 Modeling data and analysis reliability standards related to available transmission 

capability - proposes to approve several reliability standards related to the calculation of 

available transmission capability, as directed in Order Nos. 890 and 693. This farreaching set of issues focuses on many aspects of electric reliability and competitive 

markets, and thus required considerable coordination among numerous offices and 

specialties within the Commission. 

 PRC-023 (Special Protection System Misoperations) – addresses an important 

recommendation from the Blackout Report 2relating to the proper use of protective 

relays. Among other critical issues, the final rule will address jurisdictional issues and 

applicability concerns and help to ensure that reliability standards properly apply to 

components of the Bulk Electric System that affect reliability. 

Performance Measure Performance Target Results

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. 

Commission staff has worked extensively with ERO and Regional Entity Compliance staff to help 

improve the quality of audits and investigations. This includes establishing a weekly conference 

call with ERO compliance staff to discuss and resolve current compliance issues. Discussions 

through this forum led to greater timeliness and effectiveness of the ERO’s compliance 

investigations, including the initiation of a compliance inquiry process, improved auditing 

procedures, and processes to reduce the ERO’s backlog of alleged violations. This also included 

participating with ERO staff on 45 investigations and inquiries into possible violations of the 

Reliability Standards arising from Bulk-Power System incidents or disturbances. 

 2 Final Report on the August 14, 2003 Blackout in the United States and Canada dated April 2004 by the U.S.-

Canada Power System Outage Task Force
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

14 

Additional Significant Accomplishments in Reliability Compliance:

On September 24, 2009, Commission staff achieved a settlement between staff and Florida 

Power & Light Company of all Reliability Standards violations arising from the Florida 

Blackout. This was the first reliability-related Commission Part 1b investigation and it resulted 

in a $25 million penalty and extensive compliance measures to address concerns relating to a 

range of Reliability Standards, including improving frequency response, operator training and 

certification, equipment maintenance, operating procedures, and communications. 

Commission staff developed and drafted an international data sharing protocol agreement 

concerning cross-border compliance violation investigations between FERC staff and the staff of 

the Manitoba Department of Science, Technology, Energy and Mines, signed on behalf of FERC 

staff on December 4, 2008. 

Additional accomplishments of Bulk Power System Analysis:

The Commission expanded the abilities of the Reliability Monitoring Center to provide near realtime wide-area monitoring of the nation’s bulk power system. Through the Situational 

Awareness for FERC, NERC and the Regions program, each NERC Region provided data in a 

geospatial format to display the power flows on the various transmission paths and 

interconnections. The need for increased situational awareness was cited as a contributing factor 

in the August 2004 Blackout Report. 

Other Significant Reliability Program Accomplishments

The Commission reviewed approximately 260 filings in docketed rate proceedings to evaluate 

their engineering aspects and potential reliability implications to the Bulk Power System. The 

engineering issues examined include but were not limited to: (1) contingency reserve 

requirements; (2) reliability issues associated with industry tariff revisions; (3) generator reactive 

power and voltage control requirements; (4) transmission and generation facility 

interconnections and associated cost allocation; (5) interconnection of renewable generation 

resources; (6) various characteristics and performance criteria of generators such as ramping, 

derating and outages; (7) dynamic scheduling, eTag and OASIS matters; and (8) Reliability Must 

Run agreements; (9) market power analyses; (10) transmission and advanced transmission 

technology rate incentives; (11) demand response/load modifying resources; and (12) 

transmission loading relief reliability standard. The Commission also completed review of 

approximately 40 compliance filings to determine whether they met Order No. 890’s 

requirements with respect to the available transmission capacity calculation, and directed 

additional compliance filings because the filing failed to satisfy one of the requirements. 

Other Significant Accomplishments: Smart Grid

In 2009, the Commission issued a Policy Statement to provide guidance on the development and 

adoption of smart grid interoperability standards. Smart grid technologies can enable customers 

to receive information about the cost and impact of their consumption of electricity and enhance 

the ability of utilities to improve reliability, reduce outages, and increase the efficiency of the 

grid. The Policy Statement identified priorities for the development of standards to facilitate 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

15

smart grid deployment, providing guidance to the National Institute of Standards in Technology 

in its work to prepare smart grid standards for Commission review. The functional areas that the 

Commission identified as priorities for standard development are: Wide-Area Situational 

Awareness, Demand Response, Electric Storage and Electric Vehicles. The cross-cutting areas 

identified are: a common semantic framework for communications and coordination across intersystem interfaces; and cyber security. The Commission’s reliability program staff focused on 

cyber security protections for the Smart Grid so that the devices and systems developed for it 

will be protected from exploitation while improving the operation of the bulk power system. The 

Policy Statement also established an interim rate policy to encourage early investment in smart 

grid infrastructure 

Other Significant Accomplishments: Hydrokinetic Technologies

Working within the existing regulations, FERC continued to foster the orderly and 

environmentally sound development of hydrokinetic technology. The Commission negotiated an 

memorandum of understanding between the Commission and the Department of the Interior, 

which resolved the long-standing jurisdictional dispute over siting hydrokinetic projects on the 

Outer Continental Shelf (OCS) and provided a cohesive process to accelerate the development of 

renewable energy on the OCS in an environmentally sensitive manner. The Commission also 

successfully negotiated a memorandum of understanding with the Governors of Washington and 

Maine and their respective state agency executives to coordinate procedures and schedules for 

review of hydrokinetic energy projects in Washington. In coordination with the U.S. Army 

Corps of Engineers, U. S. Coast Guard, U.S. Fish and Wildlife Service and the U.S. 

Environmental Protection Agency, FERC developed an innovative “lead project” approach to 

achieve efficiencies for an unprecedented number of hydrokinetic projects proposed to be located 

on the Mississippi River between St. Louis and New Orleans. There are nine pending 

hydrokinetic projects engaged in pre-filing and 12,192 megawatt (MW) of potential hydrokinetic 

capacity proposed in 166 issued preliminary permits. 

Other Significant Accomplishments: Natural Gas Storage Capacity

To meet the growing demand for natural gas, the Commission must respond to these applications 

in a timely manner. In FY 2009, FERC approved 203.4 billion cubic feet (Bcf) of natural gas 

storage capacity. At the end of FY 2009, total working gas in storage in the United States was 

approximately 3,716 Bcf, approximately 500 Bcf above the five year historical range.
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

16 

Performance Measurement Data for Competitive Markets

Goal: Support Competitive Markets 

Performance Measure Performance Target Results

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 

With the October 2008 issuance of Order No. 719, “Wholesale Competition in Regions with 

Organized Electric Markets,” the Commission amended its regulations under the Federal Power 

Act to improve the operation of organized wholesale electric markets. The changes aim to 

improve the operation of organized wholesale electric markets in the areas of: (1) demand 

response and market pricing during periods of operating reserve shortage; (2) long-term power 

contracting; (3) market-monitoring policies; and (4) the responsiveness of RTOs and ISOs to 

their customers and other stakeholders, and ultimately to the consumers who benefit from and 

pay for electricity services. In July 2009, the Commission reaffirmed on rehearing that, because 

demand response directly affects wholesale rates, reducing barriers to demand response in 

organized wholesale electric markets helps the Commission to fulfill its responsibility to ensure 

those rates are just and reasonable. 

The Commission has continued to implement its Order No. 890 transmission planning principles, 

conducting outreach, reviewing related filings, and obtaining stakeholder and customer input to 

help RTOs and ISOs refine their planning processes. In September 2009, the Commission 

convened regional conferences on transmission planning to assess the Order No. 890 

transmission planning processes. The conferences focused on existing transmission planning 

processes and promoting discussion of the progress of current processes. The conferences 

included discussion on whether existing transmission planning processes adequately consider 

needs and solutions on a regional or interconnection-wide basis to ensure adequate and reliable 

supplies at just and reasonable rates. Additionally, the conferences allowed discussion of 

whether existing processes are sufficient to meet emerging challenges to the transmission 

system, such as the development of interregional transmission facilities, the integration of large 

amounts of location-constrained generation, and the interconnection of distributed energy 

resources into the electricity grid. 

The Commission further encouraged the participation of demand response in energy markets by 

proposing to adopt North American Energy Standards Board business practice standards in 

September 2009. These standards categorize various demand response products and services and 

to support the measurement and verification of these products and services in wholesale electric 

energy markets. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

17

Performance Measure Performance Target Results

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. 

The Commission issued a Policy Statement on Compliance that emphasized the 

importance for regulated entities of developing adequate compliance measures. Where 

companies have active and effective compliance programs supported by senior 

management that identify, remediate, and report compliance lapses, the Commission may 

reduce or even eliminate penalties in certain cases. As part of its investigation of possible 

violations, the Commission reviews the compliance measures taken by the subject of the 

investigation, and includes information on compliance with its recommendations. 

Other Significant Accomplishments

The Commission also fulfilled its statutory requirement under the Energy Independence and 

Security Act of 2007 to prepare a National Assessment of Demand Response Potential, which 

the Commission submitted to Congress in June 2009. The Assessment is the first national 

analysis of demand response done on a state-by-state basis. The report estimated demand 

response potential by analyzing how customers in each state respond to changing prices, and 

how their responses vary with climate, customer type, the type of demand response program, and 

other factors. The Assessment also identified an extensive list of barriers to fuller 

implementation of demand response and made a number of recommendations for overcoming 

these barriers. 

Performance Measurement Data for Enforcement

Goal: Prevent Market Manipulation 

Performance Measure Performance Target Results

Percentage of market manipulation 

enforcement investigations 

completed 

75% within two years of initiation 

Target met and exceeded. All market 

manipulation investigations 

completed in FY2009 were 

completed within two years. 

In FY 2009, the Commission issued 21 orders approving settlements, collected more than $77 

million in civil penalties and disgorged profits, increased efforts surrounding the enforcement of 

reliability standards, and encouraged regulated entities to improve their compliance practices. 

Five market manipulation cases reached significant milestones in FY 2009. Three cases were set 

for hearings before Administrative Law Judges, with one case settling on the eve of the hearing 

with a record $30 million settlement. In two other cases currently pending before the 

Commission, the Commission issued orders to show cause why penalties should not be imposed 

for alleged manipulation. 

In other matters involving alleged manipulation, the Commission authorized the release of two 

staff reports on investigations of potential manipulation in which staff found no manipulation. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

18 

The release of the staff reports provides information to the public about the circumstances of the 

transactions and why the conduct investigated did not constitute manipulation. 

FY 2009 marks the first year in which the majority of new investigations opened by the 

Commission involved potential market manipulation. 

Performance Measure Performance Target Results

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. 

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. 

In FY 2009, the Commission completed 28 audits of public utilities and natural gas pipeline and 

storage companies. The audits focused on reliability, RTOs and ISOs, Open Access 

Transmission Tariffs, gas tariff compliance, the Public Utility Holding Company Act of 2005, 

preservation of records, Fuel Adjustment Clauses, Order No. 890, and various Commission 

reporting requirements and regulations. 

These 28 audits resulted in 112 recommendations for corrective action and included $2.4 million 

in recoveries from accounting and billing adjustments. The Commission was successful in 

overseeing jurisdictional companies’ implementation of 100 percent of its recommendations to 

correct the areas of noncompliance discovered during the audit engagements within 6 months. 

The Commission continues to require jurisdictional companies to implement compliance plans to 

ensure compliance with the Commission’s regulatory requirements, including requirements to 

undertake comprehensive training of employees, periodic self-auditing, and establishing and 

monitoring of processes, practices, and procedures. 

Financial Performance Overview 

As of September 30, 2009, 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 receives an appropriation from Congress that is available 

until expended. The Commission’s FY 2009 new budget authority was $273.5 million. This 

represents an increase in new budget authority of approximately $13.0 million over FY 2008. 

Additional funds available to obligate in FY 2009 were $16.7 million from prior-year 

unobligated appropriations and $0.7 million of prior-year obligations that were subsequently deobligated in the current year. The sum of all funds available to obligate in FY 2009 was $290.9 

million. Additionally, the Commission receives an appropriation from Congress to pay states the 

fees it collected for the occupancy and use of public lands. The payments to states appropriation 

in FY 2009 was $3.4 million. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

19

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 2009. 

Costs by Function. The Commission incurred costs of $288.4 million in FY 2009, which was 

an increase of $34.2 million over FY 2008. Approximately 70 percent of costs were used for 

salaries and benefits. The remaining 30 percent was used to obtain technical assistance for the 

Commission's principal regulatory programs, to cover operating expenses, staff travel, and 

reimbursable work. Salaries and benefits increased by $22 million over 2008 while the net affect 

on the other cost categories was an increase of $12.2 million. 

Costs by Function (millions) 

Costs FY 2009 FY 2008 

Salaries and Benefits $202.6 $180.6 

Travel/Transportation 3.7 3.6 

Rent/Comm/ Utilities 23.1 22.3 

Contract Support 44.8 37.2 

Printing/Supplies/Other 14.2 10.5 

Total Costs $288.4 $254.2 

Audit Results. The Commission received an unqualified audit opinion on its FY 2009 financial 

statements. This was the sixteenth consecutive year the Commission has received an unqualified 

opinion. For FY 2009, no material weaknesses were identified by the audit. 

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 $91.3 million as of September 30, 2009. This is a 

decrease of $10.6 million from September 30, 2008. The assets reported in the Commission's 

Balance Sheet are summarized in the Asset Summary table. 

Assets Summary (millions) 

Assets FY 2009 FY 2008 

Fund Balance with Treasury $63.5 $72.7 

Accounts Receivable, net 23.0 22.9 

Property and Equipment, net 4.8 6.3 

Total Assets $91.3 $101.9 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

20 

The Fund Balance with Treasury represents the Commission's largest asset of $63.5 million as of 

September 30, 2009, a decrease of $9.2 million from the FY 2008 balance. This balance 

represents appropriated funds, collected penalties and other funds maintained at the Treasury 

until final disposition is determined. The decrease from FY 2009 to FY 2008 is primarily due to 

disposition of disgorged profits. 

The Accounts Receivable, net has a balance of $23.0 million as of September 30, 2009. This 

balance represents the outstanding amounts due from either annual charges, civil penalties or 

other penalties issued by the Commission to entities under its regulation. 

The Property and Equipment, net was $4.8 million as of September 30, 2009, a decrease of $1.5 

million from FY 2008. The balance is comprised of the net value of the Commission’s 

equipment, furniture, leasehold improvements, and computer hardware and software. The $1.5 

million net decrease is primarily due to the decrease in Property and Equipment resulting from 

the depreciation of assets throughout the year. 

The Commission's liabilities were $75.2 million as of September 30, 2009. The Liabilities 

Summary table shows a decrease in total liabilities of $12.2 million from FY 2008. The $75.2 

million balance is primarily the result of accrued expenditures for payroll, benefits and operating 

expenses. The Commission also has $17.4 million in penalties issued to entities under its 

regulation that were found guilty of market manipulation that are subsequently due to other 

entities. 

Liabilities Summary (millions) 

Liabilities FY 

2009 

FY 

2008 

Accounts Payable $17.8 16.4 

Federal Employee Benefits 10.2 7.7 

Other Liabilities 47.2 63.3 

Total Liabilities $75.2 $87.4 

The difference between total assets and total liabilities is net position. The Commission’s net 

position was approximately $16.1 million as of September 30, 2009. The increase in net position 

in FY 2009 compared to FY 2008 is the result of the amount of adjusted annual charges assessed 

by the Commission which impacted the cumulative results of operations. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

21

Net Position Summary (millions) 

Position FY 2009 FY 2008 

Unexpended Appropriations $20.1 $24.6 

Cumulative Results of Operations (4.0) (10.1) 

Total Net Position $16.1 $14.5 

Analysis of the Statement of Net Cost 

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 Net Cost of Operations table. 

Net Cost of Operations

Operation FY 2009 FY 2008 

Energy Infrastructure $(3,296) $0 

Competitive Markets (527) 0 

Enforcement (571) 0 

Net Cost of Ops $(4,394) $0 

The Commission's net cost of operations for FY 2009 was ($4,394). The Commission is a full 

cost recovery agency and recovers all of its cost through the allocated annual charges to the 

entities that it regulates. In FY 2009, the Commission billed and collected some PY 

reimbursable costs. 

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. Net position is affected by changes in its two components: Cumulative Results of 

Operations and Unexpended Appropriations. The overall increase in Net Position of $1.6 

million is the result of the amount of adjusted annual charges assessed by the Commission which 

impacted the cumulative results of operations for FY 2009 compared to FY 2008. 

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 obligations to total outlays. For FY 2009, the Commission had 

budgetary resources available of $294.3 million, the majority of which was derived from new 

spending authority. This represents an increase of $26.7 million over FY 2008 budgetary 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

22 

resources available of $267.6 million. The unobligated budget authority available at September 

30, 2009 was $7 million, which is a decrease of $9.8 million from the FY 2008 amount of $16.8 

million. 

The status of budgetary resources includes obligations incurred of $285.9 million, or 97 percent 

of funds available. Similarly, FY 2008 obligations incurred were $250.9 million or 94 percent of 

funds available. Total net outlays for FY 2009 were $(47.5) million, which represents a $19.3 

million decrease from FY 2008 net outlays of $(66.8) million. The decrease from last year is a 

result of approximately $40 million in higher gross outlays offset by $20 million in higher 

offsetting collections and distributed receipts in FY 2009 compared to FY 2008. 

Analysis of the Statement of Custodial Activity 

The Statement of Custodial Activity displays the total Custodial Revenue and the 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 2009, the Commission 

reported $69.0 million in custodial revenue as of September 30, 2009 compared to $55.6 million 

in FY 2008. The majority of the increase over FY 2008 is due to more civil penalties billed in 

FY 2009 to entities under the Commission’s regulation. 

Controls, Systems, and Legal Compliance 

This section provides information on the Commission's compliance with the: 

 Federal Managers' Financial Integrity Act of 1982; 

 Federal Financial Management Improvement Act of 1996; 

 Prompt Payment Act; 

 Debt Collection Improvement Act of 1996; and 

 Revised OMB A-123. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

23

Integrity Act Statement 

During Fiscal Year 2009, the Commission focused it efforts on four fundamental 

Commission responsibilities: developing needed energy infrastructure, fostering competitive 

energy markets, overseeing reliability standards and effectively enforcing both market and 

reliability rules. 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 continue to be 

brought to the attention of management and resolved within the Commission at the appropriate level. The 

auditors' FY 2009 report on the Commission's internal control structure disclosed no material weaknesses 

and no instances of noncompliance with laws and regulations. We will continue to maintain a strong 

management control system. 

 The Commission's management is responsible for establishing and maintaining effective internal 

control and financial management systems that meet the objectives of the Federal Managers' Financial 

Integrity Act (FMFIA). In accordance with OMB Circular 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, 2009. Based on the results 

of this evaluation, the Commission can provide reasonable assurance that its internal controls are 

operating effectively and that no material weaknesses were found in the design or operation of our 

internal controls. 

 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 no material weaknesses in the design or operation of our controls over financial reporting. The 

Commission can provide reasonable assurance that its internal controls over financial reporting as of 

September 30, 2009, are operating effectively. 

 

Jon Wellinghoff 

Chairman 

Federal Energy Regulatory Commission 

September 2009 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

24 

Federal Managers Financial Integrity Act 

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 

law; (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 assurance statement on the adequacy of 

management controls and conformance of financial systems with Government wide standards. 

Management Control Review Program 

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, 

 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 2009 Integrity Act Results 

The Commission evaluated its management control systems for the fiscal year ending September 

30, 2009. This evaluation provided reasonable assurance that the Commission’s management 

controls achieved their intended objectives. As a result, management concluded that the 

Commission did not have any material weaknesses in its programmatic or administrative 

activities. 

FY 2009 OMB A-123 Results 

The Commission evaluated its internal controls over financial reporting for the fiscal year ending 

September 30, 2009. Based on the results of this evaluation, the Commission can provide 

reasonable assurance that its internal controls are operating effectively and that no material 

weaknesses were found in the design or operation of our internal controls. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

25

Federal Financial Management Improvement Act 

The Federal Financial Management Improvement Act of 1996 (Improvement Act) requires each 

agency to implement and maintain systems that comply substantially with: (i) Federal financial 

management system requirements, (ii) applicable Federal accounting standards, and (iii) the U.S. 

Government standard general ledger at the transaction level. The Improvement Act requires the 

Chairman to determine whether the agency's financial management systems comply with the 

Improvement Act and to develop remediation plans for systems that do not comply. 

FY 2009 Improvement Act Results 

As of September 30, 2009, the Commission evaluated its financial management system to 

determine if it complied with applicable federal requirements and accounting standards required 

by the Improvement Act. We found that the Commission’s financial management system was in 

substantial compliance with the Federal financial management system requirements, applicable 

Federal accounting standards and the U.S. standard general ledger at the transaction level. In 

making this determination, we undertook financial reporting tests of the system and reviewed 

entries at the transaction level, and determined compliance with Federal requirements and 

accounting standards required by the Improvement Act. 

Prompt Payment. 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, 

2009, the Commission made 94% of its payments, that were subject to the Prompt Payment Act, 

on-time. The Commission incurred $3,864 in interest penalties in FY 2009, which was an 

increase compared to the FY 2008 amount of $304. The agency made 99% of its vendor 

payments electronically in FY 2009. 

Debt Collection. 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, 2009, delinquent debt was $0.3 million, which was 

approximately one-tenth 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 180 days is referred to the U.S. Treasury for collection. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

26 

Possible Future Effects of Existing Events and Conditions 

As of September 30, 2009, the Commission has a pending case where the probability of success 

is reasonably possible. The amount of monetary relief, if awarded, is estimated to be 

approximately $78,000. 

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. 

Improper Payments Information Act (IPIA) Reporting 

The Commission has performed a review of its payments through September 30, 2009 and it has 

processed 99% of its payments without error. The Commission found only 60 erroneous 

payments out of 9,120 total payments. The value of those erroneous payments totaled $39,108 

out of total payments of $84,236,070 for fiscal year 2009. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

27

Financial Section 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

28 

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 2009 and 2008. 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 A-136, Financial Reporting Requirements. 

 The Commission has maintained a continued focus on its primary mission to regulate 

energy industries in the economic, environmental and safety interest of the American 

public. Given the current economic climate prevailing in this country and the challenges 

it has placed before the very same individuals in which the Commission strives to protect, 

senior management has placed added emphasis on the effective management of the 

Commission’s limited resources. Specifically, the Commission has enhanced its 

acquisition processes to better leverage competitive forces to obtain goods and services. 

These process enhancements have facilitated the acquisition of engineering support 

services, information technology support services, and major hardware purchases at 

lower costs. Moreover, the Commission issued a new Strategic Plan on September 30, 

2009 that sets clear goals and objectives it will strive to reach over the next 5 years. In 

this plan, the Commission establishes key milestones and other performance targets that 

will demonstrate the Commission’s effectiveness at reaching its desired outcomes. 

Following are more achievements which demonstrate the Commission’s commitment 

to managing its financial resources effectively. 

 The Commission obtained an unqualified opinion on its principal financial statements 

for the 16th consecutive year. In addition, it strengthened its internal control program 

by continuing on-going self-assessment efforts as required by OMB Circular A-123, 

Management’s Responsibility for Internal Control. The Commission for the 4th 

consecutive year asserted reasonable assurance that its internal controls over financial 

reporting were operating effectively. 

 The Commission collected over $296 million in offsetting receipts during the fiscal 

year. Financial management staff issued 100% of the related regulatory assessments 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

29

electronically to jurisdictional entities and hydropower licensees. As a result of these 

efforts, the Commission exceeded statutory collection requirements to offset its 

annual appropriation by more than $23 million. 

 The Commission maintained effective and efficient financial management operations. 

It paid over 99% of its vendor invoices electronically while remitting 94% of these 

payments within statutorily mandated due dates at an error rate of less than 1%. 

Moreover, it collected 98% of established accounts receivable by their respective due 

dates. 

 The Commission awarded over 31% of its total contract dollars to small, womenowned and minority businesses. It exceeded its performance target by 6 %. The 

Commission values the pivotal role small businesses play in supporting the 

accomplishment of its mission. 

Our accomplishments indicate a keen focus on financial management, accountability 

and public disclosure. Senior leadership has promoted a culture of accountability 

throughout the agency that has resonated with all employees. This report demonstrates a 

lasting commitment to fulfill our fiduciary responsibilities to Commission stakeholders. I 

am proud of the role financial management staff has played in being effective stewards 

protecting the interests of the American public. 
KPMG LLP 

 M Street, NW 

rs’ Report 

Inspector General, United States Department of Energy: 

e Federal Energy Regulatory Commission (the 

e related statements of net cost, changes in net 

inafter referred to as “financial statements”) for 

press an opinion on the fair presentation of these 

nancial statements. In connection with our fiscal year 2009 audit, we also considered the Commission’s 

mission’s compliance with certain provisions of 

e a direct and material effect on these financial 

 stated in our opinion on the financial statements, we concluded that the Commission’s financial 

and for the years ended September 30, 2009 and 2008, are presented fairly, in all material 

 accepted accounting principles. 

gned to identify all deficiencies in 

 deficiencies, significant deficiencies, or material 

s in internal control over financial reporting that 

we consider to be material weaknesses as defined in the Internal Control Over Financial Reporting section 

of this report. 

The results of our tests of compliance with certain provisions of laws, regulations, and contracts disclosed 

no instances of noncompliance or other matters that are required to be reported herein under Government 

Auditing Standards, issued by the Comptroller General of the United States, and Office of Management and 

Budget (OMB) Bulletin Number (No.) 07-04, Audit Requirements for Federal Financial Statements, as 

amended. 

The following sections discuss our opinion on the Commission’s financial statements; our consideration of 

the Commission’s internal control over financial reporting; our tests of the Commission’s compliance with 

certain provisions of applicable laws, regulations, and contracts; and management’s and our 

responsibilities. 

Opinion on the Financial Statements 

We have audited the accompanying balance sheets of the Federal Energy Regulatory Commission as of 

September 30, 2009 and 2008, and the related statements of net cost, changes in net position, budgetary 

resources, and custodial activity for the years then ended. 

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, 2009 and 2008, and 

its net costs, changes in net position, budgetary resources, and custodial activity for the years then ended, 

in conformity with U.S. generally accepted accounting principles. 

KPMG LLP, a U.S. limited liability partnership, is the U.S. 

member firm of KPMG International, a Swiss cooperative. 

2001

Washington, DC 20036 

Independent Audito

The Federal Energy Regulatory Commission and the 

We have audited the accompanying balance sheets of th

Commission) as of September 30, 2009 and 2008, and th

position, budgetary resources, and custodial activity (here

the years then ended. The objective of our audits was to ex

fi

internal control over financial reporting and tested the Com

applicable laws, regulations, and contracts that could hav

statements. 

Summary 

As

statements as of 

respects, in conformity with United States (U.S.) generally

Our consideration of internal control over financial reporting was not desi

the internal control over financial reporting that might be

weaknesses. However, we did not identify any deficiencie
Federal Energy Regulatory Commission 

nalysis is not a required part of the financial 

quired by U.S. generally accepted accounting principles. 

rtain limited procedures, which consisted principally of inquiries of management 

 this information. However, we did not audit this 

. 

 opinion on the financial statements taken as a 

bility Report and the Appendices are presented 

part of the financial statements. This information 

ngly, we express no opinion on it. 

porting was for the limited purpose described in 

the Responsibilities section of this report and was not designed to identify all deficiencies in the internal 

inancial reporting that might be deficiencies, significant deficiencies, or material weaknesses. 

gn or operation of a control does not allow 

 the normal course of performing their assigned functions, to prevent, or 

 significant deficiency is a deficiency, or a 

s severe than a material weakness, yet important 

o merit attention by those charged with governance. A material weakness is a deficiency, or 

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. 

In our fiscal year 2009 audit, we did not identify any deficiencies in internal control over financial reporting 

that we consider to be material weaknesses as defined above. 

We noted certain additional matters that we have reported to management of the Commission in a separate 

letter. 

Compliance and Other Matters 

The results of our other tests of compliance as described in the Responsibilities section of this report, 

exclusive of those referred to in Federal Financial Management Improvement Act (FFMIA), disclosed no 

instances of noncompliance or other matters that are required to be reported herein under Government 

Auditing Standards or OMB Bulletin No. 07-04, as amended. 

The results of our tests of FFMIA disclosed no instances in which the Commission’s financial management 

systems did not substantially comply with the (1) Federal financial management systems requirements, (2) 

applicable Federal accounting standards, and (3) the United States Government Standard General Ledger at 

the transaction level. 

* * * * * * * 

November 6, 2009 

Page 2 of 4 

The information in the Management’s Discussion and A

statements, but is supplementary information re

We have applied ce

regarding the methods of measurement and presentation of

information and, accordingly, we express no opinion on it

Our audits were conducted for the purpose of forming an

whole. The information in the Performance and Accounta

for purposes of additional analysis and are not required as 

has not been subjected to auditing procedures and, accordi

Internal Control Over Financial Reporting 

Our consideration of the internal control over financial re

control over f

A deficiency in internal control exists when the desi

management or employees, in

detect and correct misstatements on a timely basis. A

combination of deficiencies, in internal control that is les

enough t
Federal Energy Regulatory Commission 

ble for the financial statements; establishing and 

th laws, regulations, and contracts applicable to 

rs’ Responsibilities. Our responsibility is to express an opinion on the fiscal year 2009 and 2008 

ts. We conducted our audits in accordance with 

iting standards generally accepted in the United States of America; the standards applicable to financial 

, issued by the Comptroller General of the United 

04, as amended. Those standards and OMB Bulletin No. 07-04, as 

perform the audits to obtain reasonable assurance about whether the 

 audit includes consideration of internal control 

edures that are appropriate in the circumstances, 

fectiveness of the Commission’s internal control 

opinion. 

An audit also includes: 

the amounts and disclosures in the financial 

cant estimates made by management; and 

ment presentation. 

We believe that our audits provide a reasonable basis for our opinion. 

In planning and performing our fiscal year 2009 audit, we considered the Commission’s internal control 

over financial reporting by obtaining an understanding of the Commission’s internal control, determining 

whether internal controls had been placed in operation, assessing control risk, and performing tests of 

controls as a basis for designing our auditing procedures for the purpose of expressing our opinion on the 

financial statements. We did not test all controls relevant to operating objectives as broadly defined by the 

Federal Managers’ Financial Integrity Act of 1982. The objective of our audit was not to express an 

opinion on the effectiveness of the Commission’s internal control over financial reporting. Accordingly, 

we do not express an opinion on the effectiveness of the Commission’s internal control over financial 

reporting. 

As part of obtaining reasonable assurance about whether the Commission’s fiscal year 2009 financial 

statements are free of material misstatement, we performed tests of the Commission’s compliance with 

certain provisions of laws, regulations, and contracts, noncompliance with which could have a direct and 

material effect on the determination of the financial statement amounts, and certain provisions of other 

laws and regulations specified in OMB Bulletin No. 07-04, as amended, including the provisions referred 

to in Section 803(a) of FFMIA. We limited our tests of compliance to the provisions described in the 

preceding sentence, and we did not test compliance with all laws, regulations, and contracts, applicable to 

the Commission. However, providing an opinion on compliance with laws, regulations, and contracts, was 

not an objective of our audit and, accordingly, we do not express such an opinion. 

______________________________ 

November 6, 2009 

Page 3 of 4 

Responsibilities 

Management’s Responsibilities. Management is responsi

maintaining effective internal control; and complying wi

the Commission. 

Audito

financial statements of the Commission based on our audi

aud

audits contained in Government Auditing Standards

States; and OMB Bulletin No. 07-

amended require that we plan and 

financial statements are free of material misstatement. An

over financial reporting as a basis for designing audit proc

but not for the purpose of expressing an opinion on the ef

over financial reporting. Accordingly, we express no such 

• Examining, on a test basis, evidence supporting 

statements; 

• Assessing the accounting principles used and signifi

• Evaluating the overall financial state
Federal Energy Regulatory Commission 

This report is intended solely mmission’s management, the 

rtment of Energy’s Office of Inspe l, OMB, the U.S. Government Accountability Office, 

and the U.S. Congress and is not intended to be and should not be used by anyone other than these 

specified parties. 

November 6, 2009 

Page 4 of 4 

 for the information and use of the Co

Depa ctor Genera

November 6, 2009 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

34 

2009 2008

Assets (note 3):

Intragovernmental:

Fund balances with Treasury (note 4) $ 63,517,742 $ 72,693,742 

Accounts receivable (note 5) 13,399 13,399

Total intragovernmental assets 63,531,141 72,707,141

Accounts receivable, net (note 5) 23,038,373 22,896,225

Property and equipment, net (note 6) 4,767,683 6,307,483 

Total assets $ 91,337,197 $ 101,910,849 

Liabilities:

Intragovernmental:

Accounts payable $ 2,983,283 $ 3,037,177 

Other (note 7):

Accrued payroll benefits 1,661,681 1,291,035 

Resources transferable to Treasury and other

Federal entities 6,891,089 478,500 

Miscellaneous receipts transferable to Treasury 5,254 7,193 

Workers' compensation payable (note 9) 540,739 850,484 

Total intragovernmental liabilities 12,083,985 5,662,450 

Accounts payable 14,777,141 13,346,630 Other (note 7):

Accrued payroll and benefits 8,529,456 6,397,959 

Collections due to states 33,603 - Commitments and contingencies (note 11) 78,000 100,000

Revenue collected under protest 5,918,701 - 

Refunds and other amounts due 3,256,910 10,534,131 

Accrued leave (note 9) 13,175,159 12,425,724 

Resources transferable to other entities from 

disgorged funds 17,366,517 38,905,088 

Total liabilities $ 75,219,471 $ 87,371,982 

Net Position:

Unexpended appropriations 20,135,673 24,646,344 

Cumulative results of operations (4,017,948) (10,107,477) 

Total net position $ 16,117,725 $ 14,538,867 

Total liabilities and net position $ 91,337,197 $ 101,910,849 

The accompanying notes are an integral part of these statements.

(in dollars)

FEDERAL ENERGY REGULATORY COMMISSION

Balance Sheets

As of September 30, 2009 and 2008
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

35

Program costs: 2009 2008

 Regulation:

 Energy Infrastructure(note 14):

 Gross costs $ 214,681,859 $ 194,110,589 

 Less: earned revenue 214,685,155 194,110,589 

 Net program costs $ (3,296) $ - 

 Competetive Markets (note 14):

 Gross costs $ 34,861,156 $ 30,313,293 

 Less: earned revenue 34,861,683 30,313,293 

 Net program costs $ (527) $ - 

 Enforcement (note 14):

 Gross costs $ 38,872,810 $ 29,818,284 

 Less: earned revenue 38,873,381 29,818,284 

 Net program costs $ (571) $ - 

 Total (note 14):

 Gross costs $ 288,415,825 $ 254,242,166 

 Less: earned revenue 288,420,219 254,242,166 

 Net program costs $ (4,394) $ - 

The accompanying notes are an integral part of these statements.

FEDERAL ENERGY REGULATORY COMMISSION

Statements of Net Cost

For the Years Ended September 30, 2009 and 2008

(in dollars)

 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

36 

 FEDERAL ENERGY REGULATORY COMMISSION

Statements of Changes in Net Position

For the Years Ended September 30, 2009 and 2008

(in dollars)

2009 2008

Cumulative Results of Operations:

Beginning balances $ (10,107,477) $ 2,410,871 

Budgetary Financing Sources:

Appropriations used 277,910,671 240,272,102

Other Financing Sources (Non-Exchange):

Transfers – out to Treasury without reimbursement (284,451,789) (263,440,238)

Imputed financing from costs absorbed by others (note 10) 12,626,253 10,649,788

Total Financing Sources 6,085,135 (12,518,348)

Net Cost of Operations 4,394 -

Net Change 6,089,529 (12,518,348)

Cumulative Results of Operations $ (4,017,948) $ (10,107,477) 

Unexpended Appropriations:

Beginning balances $ 24,646,344 $ 4,493,446 

Budgetary Financing Sources:

Appropriations received 273,400,000 260,425,000

Appropriations used (277,910,671) (240,272,102)

 Total Budgetary Financing Sources (4,510,671) 20,152,898

Total Unexpended Appropriations $ 20,135,673 $ 24,646,344 

Net Position $ 16,117,725 $ 14,538,867 

The accompanying notes are an integral part of these statements.
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

37

 FEDERAL ENERGY REGULATORY COMMISSION

Statements of Budgetary Resources

For the Years Ended September 30, 2009 and 2008

(in dollars)

2009 2008

Budgetary Resources:

Unobligated balance, beginning of period $ 16,783,887 $ 3,429,691 

Recoveries of prior year unpaid obligations 675,206 651,567 

Budgetary authority

Appropriation 3,384,427 3,127,077 

Collected 273,458,072 260,474,032 

Change in unfilled customer orders

Without advance from Federal Sources (4,394) (43,057) 

Subtotal 276,838,105 263,558,052 

Total Budgetary Resources $ 294,297,198 $ 267,639,310 

Status of Budgetary Resources:

Obligations incurred: (note 15)

Direct $ 285,853,828 $ 250,815,633 

Reimbursable 53,678 39,790 

Subtotal 285,907,506 250,855,423 

Unobligated balances available and apportioned

Apportioned 7,023,066 16,783,887 

Unobligated balance not available 1,366,626 

Total status of budgetary resources $ 294,297,198 $ 267,639,310 

Change in Obligated Balance:

Obligated balance, net

Unpaid obligations, brought forward, October 1 $ 31,987,901 $ 20,628,189 

Less: Uncollected customer payments from

 Federal sources, brought forward, October 1 (44,226) (87,283) 

Total unpaid obligated balance, net 31,943,675 20,540,906 

Obligations incurred, net 285,907,506 250,855,423 

Less: Gross outlays (277,419,325) (238,844,144) 

Less: Recoveries of prior year unpaid

 obligations, actual (675,206) (651,567) 

(Continued)
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

38 

Change in uncollected customer payments

 from Federal sources 4,394 (43,057) 

Obligations balance, net, end of period

Unpaid obligations 39,800,875 31,987,901 

Less: Uncollected customer payments from

 from Federal sources (39,832) (44,226) 

Total, unpaid obligated balance, net,

 end of period $ 39,761,044 $ 31,943,675 

Net Outlays:

Gross outlays $ 277,419,325 $ 238,844,144 

Less: Offsetting collections (273,458,072) (260,474,032) 

Less: Distributed offsetting receipts (51,434,365) (45,163,340) 

Net outlays $ (47,473,112) $ (66,793,228) 

The accompanying notes are an integral part of these statements.
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

39

 FEDERAL ENERGY REGULATORY COMMISSION

Statements of Custodial Activity

For the Years Ended September 30, 2009 and 2008

(in dollars)

2009 2008

Sources of collections:

Cash collections – annual charges $ 62,695,804 $ 56,548,067 

Accrual adjustment 6,277,748 (940,339)

Total custodial revenue (note 12) 68,973,552 55,607,728

Disposition of collections:

Transferred to others:

United States Army – Corps of Engineers (6,874,323) (7,743,045)

Department of Interior (6,726,135) (7,567,858) 

United States Treasury (38,948,424) (44,897,379) 

Various states (3,350,971) (3,127,077) 

Decrease (increase) in Amounts Yet to be transferred (6,283,021) 936,953 

Net Custodial Activities $ - $ - 

The accompanying notes are an integral part of these statements.
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

40 

FEDERAL ENERGY REGULATORY COMMISSION

Notes to Financial Statements 

September 30, 2009 and 2008 

(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’s (DOE) Organization Act 

on October 1, 1977. The Commission’s predecessor, the Federal Power Commission (FPC), 

established in 1920, was abolished, and the Commission inherited a significant portion of 

FPC’s energy agenda. 

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 

(FPA), the Natural Gas Act of 1938, the Natural Gas Policy Act of 1978, and the Public 

Utility Regulatory Policies Act of 1978. 

The Commission’s activities are separated into the following three segments: 

Energy Infrastructure 

The Commission’s overall objective is to encourage investment in the infrastructure 

needed to sustain energy markets by removing roadblocks, providing cost recovery 

clarity and welcoming innovative thinking about rates and the use of new technology. 

By focusing on infrastructure, this segment covers many of the Commission’s 

important traditional activities, for example, pipeline certificates, hydropower 

licenses and preliminary permits, compliance activities, environmental and other 

licensing conditions, dam safety inspections and most rate determinations. 

Competitive Markets 

Another Commission objective is to complete the transition to competitive energy 

markets as comprehensively as possible. This requires the growth of certain new 

institutions, particularly clearly defined and independent regional transmission 

organizations (RTOs), to make electric markets work. The Commission also needs to 

establish balanced, self-enforcing market rules in wholesale electric markets, and 

encourage continued efforts by industry groups to standardize reliability and business 

practice standards, promote the use of demand-side participation in energy markets, 

and establish regional transmission planning. Along with some traditional work in the 

area of rate determinations, this segment includes work on initiatives begun in the 

last couple of years such as RTOs and new policies for natural gas. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

41

Enforcement 

The Commission also needs to ensure that competitive energy markets benefit the 

Nation over the long run. The Commission must offer the public and market 

participants credible assurance that the Commission will identify and remedy energy 

market problems to maintain just and reasonable rates. At the systemic level, the 

Commission needs to recognize problems before or when they develop and craft 

solutions quickly. Effective internal compliance programs within companies and selfpolicing will also help achieve this goal. The Commission will conduct traditional 

investigations and apply its expanded penalty authority when appropriate. 

Cost Recovery 

As described below, the Commission recovers 100% of its annual appropriation from the 

U.S. Treasury (the Treasury) through annual charges and filing fees authorized by the 

Omnibus Budget Reconciliation Act of 1986 and other laws. 

Annual Charges 

The Commission recovers most of 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 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

42 

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 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 Office of Management and Budget 

(OMB) Circular Number (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. 

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. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

43

(b) Budgets and Budgetary Accounting 

Congress annually adopts a budget appropriation that provides the Commission with 

authority to use funds from the Treasury to meet its operating and capital expenditure 

requirements. The appropriated funds are not restricted to use in a specific fiscal year. 

All revenue from annual charges and filing fees is remitted to the Treasury when 

received. 

(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 receives funds for its operating and capital 

expenditures through an appropriation allotment from DOE. For financial statement 

purposes, the appropriation allotment is recognized as a financing source when 

operating expenses (primarily salaries and benefits), other than depreciation, are 

incurred and when capital assets are purchased. 

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. Revenue is recognized for filing fees when received. 

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 appropriated funds that are available to pay current liabilities and 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

44 

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 (other than furniture) and equipment purchases with 

a cost greater than $25,000 and a total useful life exceeding two years. The 

Commission capitalizes furniture purchases with a cost greater than $50,000, and 

commercially purchased or internally developed software with a cost greater than 

$100,000. Depreciation is calculated based on an estimated useful life of 20 years 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. An actuarial estimate of unbilled claims is recorded by DOE 

at the departmental level and was not separately calculated for the Commission. 

(j) Collections Due to States 

The Commission disburses 50% 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. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

45

(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. 

(n) Net Position Accounts 

Net position account balances consist of the following components: 

Unexpended appropriations – Represents amounts of spending authority that are 

unobligated and available to the Commission, or obligated but not expended. 

Cumulative results of operations – Represents the Commission’s net results of 

operations since inception, including (1) the amount in the Special Receipts fund 

balance with Treasury, (2) the cost of property and equipment acquired that has 

been financed by appropriations, 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. 

 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

46 

9

(3) Non-Entity Assets 

Non-entity assets at September 30, 2009 and 2008 consisted of: 

2009 2008

Intragovernmental:

 Fund balances with treasury:

 Collections due to states $ 33,603 $ -

 Revenue collected under protest 5,918,701 -

 Disgorged funds 1,258,064 16,523,256

 Miscellaneous receipts held in suspense 960,056 214,752

 Special receipts fund 7,222,919 7,222,919

 Other 7,193 5,254

Total intragovernmental $ 15,400,536 $ 23,966,181 

Accounts receivable, net 22,640,111 22,673,141

 Total non-entity assets $ 38,040,647 $ 46,639,322 

Total entity assets 53,253,774 55,271,527

 Total assets $ 91,337,197 $ 101,910,84 

(4) Fund balance with Treasury 

Fund balance with Treasury at September 30, 2009 and 2008 consisted of: 

2009 2008

Fund Balances:

 General:

 Appropriated funds $ 48,117,206 $ 48,727,561 

 Other:

 Revenue collected under protest 5,918,701 -

 Disgorged funds 1,258,064 16,523,256

 Miscellaneous receipts held in suspense 960,056 214,752

 Special receipts fund 7,222,919 7,222,919

 Other 40,796 5,254

 Total $ 63,517,742 $ 72,693,742 

Status of Fund Balance with Treasury

 Unobligated balance:

 Available $ 7,023,066 $ 16,068,828 

 Unavailable 16,693,801 24,637,013

Obligated balance not yet disbursed 39,800,875 31,987,901

 Total $ 63,517,742 $ 72,693,742 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

47

(5) Accounts Receivable, net 

Entity and nonentity accounts receivable at September 30, 2009 and 2008 consisted of: 

2009

Annual Charges Other Total

Entity

Uncollected billings $ 320,305 $ 88,693 $ 408,998 

Uncollected intragovernmental billings - 13,399 13,399 

Allowance for doubtful accounts (468) (10,268) (10,736) 

 Total entity accounts receivable, net 319,837 91,824 411,661 

Non-entity

Uncollected billings 76,766 55,113,499 55,190,265 

Allowance for doubtful accounts (5,554) (32,544,600) (32,550,154) 

Total non-entity accounts receivable, net 71,212 22,568,899 22,640,111 

 Total accounts receivable, net $ 391,049 $ 22,660,723 $ 23,051,772 

2008

Annual Charges Other Total

Entity

Uncollected billings $ 4,262,767 $ 75,960 $ 4,338,727 

Uncollected intragovernmental billings - 13,399 13,399 

Allowance for doubtful accounts (4,115,170) (473) (4,115,643) 

 Total entity accounts receivable, net 147,597 88,886 236,483 

Non-entity

Uncollected billings 30,350 56,921,696 56,952,046 

Allowance for doubtful accounts - (34,278,905) (34,278,905) 

Total non-entity accounts receivable, net 30,350 22,642,791 22,673,141 

 Total accounts receivable, net $ 177,947 $ 22,731,677 $ 22,909,624 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

48 

(6) Property and Equipment, net 

Property and equipment and related accumulated depreciation at September 30, 2009 and 

2008 consisted of: 

2009

Acquisition Accumulated

Amount depreciation Net

Equipment $ 3,025,782 $ 2,659,908 $ 365,874 

Furniture 9,146,826 9,071,407 75,419 

Leasehold improvements 9,491,41 6 6,604,682 2,886,734

ADP software 17,863,793 16,424,137 1,439,656

Internal software developed - WIP - - -

Capital assets 29,000 29,000 -

 Total Property and Equipment, net $ 39,556,81 $ 34,789,134 7 $ 4,767,683 

2008

Acquisition Accumulated

Amount Depreciation Net

Equipment $ 2,631,985 $ 2,468,514 $ 163,471 

Furniture 9,070,773 9,070,773 - 

Leasehold improvements 9,491,415 6,130,111 3,361,304 

ADP software 14,917,698 17,034,785 2,117,087 

Internal software developed - WIP 655,955 - 655,955 

Capital assets 29,000 19,334 9,666

 Total Property and Equipment, net $ 38,913,913 $ 32,606,430 $ 6,307,483 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

49

(7) Other Liabilities 

Other liabilities at September 30, 2009 and 2008 consisted of: 

2009

Current Non-Current Total

Intragovernmental

 Accrued payroll and benefits $ 1,661,681 $ - $ 1,661,681 

 Resources transferable to Treasury and other Federal

 entities 6,891,089 - 6,891,089 

 Miscellaneous receipts transferable to Treasury - 7,193 7,193 

 Workers' compensation payable 245,220 295,519 540,739 

 Total intragovernmental liabilities 8,805,183 295,519 9,100,702 

Accrued payroll and benefits 8,529,456 - 8,529,456 

Collections due to states 33,603 - 33,603 

Commitments and Contingencies 78,000 - 78,000 

Revenue collected under protest 5,918,701 - 5,918,701 

Refunds and other amounts due 3,256,910 - 3,256,910 

Accrued leave 13,175,159 - 13,175,159 

Resources transferable to other entities from disgorged funds 1,258,064 16,108,453 17,366,517 

 Total other liablities $ 41,055,076 $ 16,403,972 $ 57,459,048 

2008

Current Non-Current Total

Intragovernmental

 Accrued payroll and benefits $ 1,291,035 - $ 1,291,035 

 Resources transferable to Treasury and other Federal

 entities 478,500 - 478,500 

 Miscellaneous receipts transferable to Treasury 5,254 - 5,254 

 Workers' compensation payable 605,264 245,220 850,484 

 Total intragovernmental liabilities 2,380,053 245,220 2,625,273 

Accrued payroll and benefits 6,397,959 - 6,397,959 

Collections due to states - - - 

Commitments and Contingencies 100,000 - 100,000 

Revenue collected under protest - - - 

Refunds and other amounts due 10,534,131 - 10,534,131 

Accrued leave 12,425,724 - 12,425,724 

Resources transferable to other entities from disgorged funds - 38,905,088 38,905,088 

 Total other liablities $ 31,837,867 $ 39,150,308 $ 70,988,175 

Resources transferable to Treasury represents future collections on accounts receivable that 

will be forwarded to Treasury upon receipt. 

Revenue collected under protest represents monies that may be forwarded to the 

Commission or protesting entities once the protest is resolved. 

Refunds and other amounts due represent monies that ultimately will be returned to entities 

due to overpayments of prior billings. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

50 

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 does not execute an agreement with 

GSA; the Commission, however, is normally required to give 30-120 days notice to vacate. 

Expenses incurred for building leases amounted to $21.7 million and $21.5 million for 

periods ended September 30, 2009 and 2008, respectively. 

Fiscal Year GSA Non-GSA Total

FY 2010 11,827,414 94,882 11,922,296

FY 2011 11,827,414 58,027 11,885,441

FY 2012 11,827,414 48,854 11,876,268

FY 2013 11,827,414 32,307 11,859,721

FY 2014 11,827,414 32,307 11,859,721

Beyond FY 2015 15,040,895 - 15,040,895

 Total future minimum lease payments $ 74,177,965 $ 266,377 $ 74,444,342 

Real Property Operating Leases - Future Payments

(9) Liabilities Not Covered by Budgetary Resources 

Liabilities not covered by budgetary resources at September 30, 2009 and 2008 consisted 

of: 

2009 2008

Intragovernmental

 Workers' compensation payable $ 540,739 $ 850,484 

Total intragovernmental 540,739 850,484

Accrued leave 13,175,159 12,425,724

 Total liabilities not covered by budgetary resources $ 13,715,898 $ 13,276,208 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

51

(10) Pension Expense

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, the Commission makes a 

contribution of 10.7% of basic pay. 

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. 

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. Total pension expense 

paid by the Commission for both plans for fiscal years 2009 and 2008 was approximately 

$14.6 million and $12.8 million, respectively as of September 30th. During fiscal years 

2009 and 2008 as of September 30th, an additional $12.6 million and $10.6 million, 

respectively, of pension and life and health insurance expense was recognized by the 

Commission for amounts that will ultimately be funded through the Office of Personnel 

Management. This amount is also recorded as an imputed financing source. 

(11) Commitments and Contingencies 

The Commission has a Freedom of Information Act pending where the probability of 

success for the claimants is reasonable possible. The amount of monetary relief, if 

awarded, would not exceed $78,000 as of September 30, 2009. 

(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 fiscal 

years 2009 and 2008, these custodial collections totaled approximately $62.7 million and 

$56.5 million, respectively as of September 30th. For fiscal years 2009 and 2008, custodial 

revenue totaled approximately $68.9 million and $55.6 million, respectively as of 

September 30th. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

52 

(13) Earmarked Funds 

In accordance with the Federal Accounting Standards Advisory Board’s Statement on 

Federal Financial Accounting Standards (SFFAS) No. 27, Identifying and Reporting 

Earmarked Funds, 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, net cost of operations and net position attributable to earmarked funds. In addition, 

the Commission must disclose the earmarked fund for which it has program management 

responsibility. The Commission’s Collections Due to States fund meets the criteria for 

earmarked funds. The balances as of September 30, 2009 and 2008 were $ 33,000 and $0 

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 CFR 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 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” 

 

The Commission bills out of the receipt account 895105, requests a warrant for the amount 

of the collections, which is used to transfer the collections into the expenditure account, 

89X5105. The actual payments to the states are made from account 89X5105. 

Since the earmarked funds managed by the Commission are custodial in nature, there are no 

equity balances to report on the financial statements as of September 30, 2009 and 2008. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

53

(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, 2009 and 2008 consisted of:

2009 2008

Energy Infrastructure:

 Intragovernmental costs $ 42,859,578 $ 39,344,434 

 Public costs 171,822,281 154,766,155 

Total Energy Infrastructure costs 214,681,859 194,110,589 

 

 Intragovernmental earned revenue 67,897 47,870 

 Public earned revenue 214,617,258 194,062,719 

Total Energy Infrastructure earned revenue 214,685,155 194,110,589 

Competitive Markets

 Intragovernmental costs 6,857,531 6,144,226 

 Public costs 28,003,625 24,169,067 

Total Competitive Markets costs 34,861,156 30,313,293 

 

 Intragovernmental earned revenue 10,863 7,476 

 Public earned revenue 34,850,820 30,305,817 

Total Competitive Markets earned revenue 34,861,683 30,313,293 

Enforcement

 Intragovernmental costs 7,428,994 6,043,892 

 Public costs 31,443,816 23,774,392 

Total Enforcement costs 38,872,810 29,818,284 

 

 Intragovernmental earned revenue 11,769 7,353 

 Public earned revenue 38,861,612 29,810,931 

Total Enforcement earned revenue 38,873,381 $ 29,818,284 

Costs

 Intragovernmental Costs 57,146,103 51,532,552 

 Public Costs 231,269,722 202,709,614 

Total Costs 288,415,825 254,242,166 

Revenue

 Intragovernmental Revenue 90,529 62,699 

 Public Revenue 288,329,690 254,179,467 

Total Revenue 288,420,219 254,242,166 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

54 

(15) Apportionment Categories of Obligations Incurred 

Apportionment categories of obligations incurred as of September 30, 2009 and 2008 

consisted of: 

2009 2008

Category A:

 Direct $ 285,853,828 $ 250,815,633 

 Reimbursable 53,678 39,790

Total obligations incurred $ 285,907,506 $ 250,855,423 

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, 2008. 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, 2009 is not presented, because the 

submission of the FY 2011 budget occurs after publication of these financial statements. 

The Commission’s Budget Appendix can be found under the Department of Energy on the 

OMB website (http://www.whitehouse.gov/omb/budget) and will be available in early 

February 2010. 

(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 30th for 

fiscal years 2009 and 2008 were $11.8 million and $7.9 million respectively. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

55

(18) 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. 

2009 2008

Resources used to finance activities:

Budgetary resources obligated:

Obligations incurred $ 285,907,506 $ 250,855,423 

Less: spending authority from offsetting collections (274,128,884) (261,082,542) 

Obligations, net of offsetting collections 11,778,622 (10,227,119) 

Less: offsetting receipts (51,434,365) (45,163,340) 

Net obligations (39,655,743) (55,390,459) 

Other resources:

Transfers-out, net of appropriations received (19,074,316) 6,183,584 

Imputed financing from costs absorbed by others 12,626,253 10,649,788 

Net other resources used to finance activities (6,448,063) 16,833,372 

Total resources used to finance activities (46,103,806) (38,557,087)

Resources used to finance items not part of the net cost of operations

Change in budgetary resources obligated for

goods/services/benefits ordered but not yet provided (+/-) (3,905,079) (6,778,893)

Budgetary offsetting receipts that do not affect the net

cost of operations 51,434,365 45,163,340

Resources that finance the acquisition of assets (642,903) (977,244)

Payments to States (3,384,427) (3,127,077)

Total resources used to finance items not part of the net cost of operations 43,501,956 34,280,126

Total resources used to finance the net cost of operations (2,601,850) (4,276,961)

Components of the net cost of operations that will not require or generate

 resources in the current period:

Components requiring or generating resources in the future periods:

Increase in unfunded liabilities 417,691 1,644,014

Total components of net cost of operations that will require or 417,691 1,644,014

generate resources
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

56 

Components not requiring or generating resources:

Depreciation and amortization 2,182,703 2,656,772 

Other (23,825) (2,938) 

Total components of net cost of operations that will not require or

generate resources 2,179,765 2,632,947 

Total net cost of operations that do not require or generate resources in

the current period 2,597,456 4,276,961 

Net Cost of Operations $ (4,394) $ - 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

57

Performance Report 

(Unaudited) 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

58 

Introduction 

In accordance with Government Performance and Results Act of 1993, the Commission 

developed its Strategic and Business Plans, 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 Section 230 of OMB Circular 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. 

In addition to the FY 2009 performance results that were highlighted in the 

Management’s Discussion and Analysis, the tables on the following pages include the 

Commission’s complete performance measurement data for fiscal years 2006 through 

2009. 

The Performance Measures for fiscal years 2005 through 2006 are aligned with the 

Commission’s former Strategic Plan. The Performance Measures for fiscal years 2007 

through 2009 are aligned with the Commission’s FY 2006 – 2011 Strategic Plan which 

was submitted to Congress on September 29, 2006. The FY 2006 – 2011 Strategic Plan 

can be found in Appendix B. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

59

Performance Measurement Data for Energy Infrastructure: FY 2006 – FY 2009

FY 2006 

Performance Measurement Performance Target Result 

Develop strategic plan and timeline for 

transmission line siting group By August 31, 2006 

Target Met. The strategic plan and timeline 

were in place by August 31, 2006. Steps 

have been taken to establish a transmission 

line siting group including: the issuance of a 

Notice of Proposed Rulemaking to establish 

the necessary rules and regulations to process 

applications filed with the Commission and 

posting openings to fill these essential 

positions. 

Issue final rules on mandatory pre-filing 

process for LNG terminal proposals Within 60 days of enactment of EPAct 2005 

Target Met. The Commission issued 

regulations on the mandatory pre-filing 

process for LNG terminal proposals within 60 

days of the enactment of EPAct 2005. The 

Pre-Filing Rule was issued on October 7, 

2005 in Docket No. RM 05-31-000, Order 

665; the effective date of the rule was 

November 17, 2005. 

Complete MOU with Secretary of Defense on 

coordination of LNG facilities affecting 

active military installations 

By March 31, 2006 

Target Not Met. Both DoD contacts retired 

or were transferred during negotiations. A 

new DoD contact was assigned in July 2006 

and negotiations are underway again. This 

did not impact operations. 

Issue reports to Congress on Alaska Natural 

Gas Pipeline 

Reports issued in February 2006 and August 

2006 

Target Met. Reports issued February 1 and 

July 10, 2006. 

Establish rules for transmission infrastructure 

incentives Issue rules by August 8, 2006 

Target Met. Docket No. RM06-4-000; Final 

Rule, Order No. 679, “Promoting 

Transmission Investment through Pricing 

Reform,” issued July 20, 2006. 

Identify requirements for establishing a 

communications system with transmission 

owners and RTOs on status of transmission 

lines 

Issue report to Congress by February 4, 2006 

Target Met. Report entitled “Steps to 

Establish a Transmission Monitoring System 

for Transmission Owners and Operators 

within the Eastern and Western 

Interconnections,” submitted to Congress on 

February 2, 2006. 

Establish process to review ERO proposed 

initial reliability standards By March 31, 2006 

Target Met. Developed a rulemaking process 

and timeline for addressing the initial 

reliability standards; the process and timeline 

were approved by the Commission in March 

2006. 

Issue report to Congress on operator training By December 31, 2005 

Target Not Met. Although a comprehensive 

study of the current state of control room 

operator training across the bulk power 

system of the United States was completed in 

early December, the report has not yet been 

sent to Congress. The Commission is 

currently involved in a comprehensive 

rulemaking related to ERO reliability 

standards which will include standards related 

to operator training. This did not negatively 

impact operations. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

60 

FY 2006 

Performance Measurement Performance Target Result 

Percentage of qualifying, major, onshorepipeline projects inspected during ongoing 

construction activity 

100% of projects inspected at least once 

every four weeks 100% 

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 

 94% 

 100% 

Percentage of pipeline certificate cases of 

first impression or containing larger policy 

implications completed 

90% within one year of filing 100% 

Percentage of pipeline certificate cases 

requiring a major environmental assessment 

or environmental impact statement completed 

90% within 18 months of filing 100% 

Percentage of qualifying LNG plants 

inspected during ongoing construction 

activity 

100% of plants inspected at least once every 

eight weeks 100% 

Percentage of LNG import terminals 

inspected 100% inspected annually 100% 

Percentage of LNG peak-shaving terminals 

inspected 50% inspected annually 50% 

Percentage of ILP pre-filing notices for 

NOI/PAD and initial scoping document 

issued 

85% within 60 days of NOI/PAD filing 100% 

Percentage of ILP pre-filing scoping meetings 

and site visits completed 85% within 90 days of NOI/PAD filing 100% 

Percentage of ILP pre-filing study plan 

determinations completed 85% within 315 days of NOI/PAD filing 100% 

Percentage of final NEPA documents issued 

for ALP/TLP cases with settlement 

agreements 

85% within 12 months 94% 

Percentage of final NEPA documents issued 

for ALP/TLP cases without settlement 

agreements 

85% within 24 months 94% 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

61

FY 2006 

Performance Measurement Performance Target Result 

Percentage of non-independent transmission 

provider open access transmission tariffs that 

have standard generator interconnection 

procedures in compliance with Order No. 

2003 and small generator final rule 

75% by September 30, 2006 

Target Met. 100% compliance with Order 

No. 2006, “Standardization of Small 

Generator Interconnection Agreements and 

Procedures,” issued May 12, 2005, was 

established through language contained in 

paragraph 544 of the Final Rule, as follows: 

“On the effective date of this Final Rule...the 

OATTs [open access transmission tariffs] of 

all non-independent Transmission Providers 

are deemed revised to include the Final Rule 

SGIP [Standard Generator Interconnection 

Procedures] and SGIA [Standard Generator 

Interconnection Agreement].” In accordance 

with other language in the same paragraph, 

no further amendment to include the SGIP 

and SGIA in a Transmission Provider’s 

OATT is required until compliance is due in 

the Commission’s pending rulemaking on 

Electronic Tariff Filings. 

Compliance with Order No. 2003 (large 

generator rule) was completed and reported 

on during FY 2005 (see previous results). 

Percentage of cases for cost recovery, new 

services, or changes to existing services 

processed 

 100% of NGA section 4 cases in 30 days 

 100% of FPA section 205 cases in 60 days 

Target Met. 100% of the more than 3,350 

statutory cases were completed by the 

statutory action date. 

Percentage of rate cases set for hearing 

completed according to the established 

schedule 

 75% of Track I cases in 29.5 weeks 

 75% of Track II cases in 47 weeks 

 75% of Track III cases in 63 weeks 

 There were no Track I cases 

 90% of Track II cases in 47 weeks 

 94% of Track III cases in 63 weeks 

Percentage of rate cases set for hearing that 

achieve partial or complete consensual 

agreement 

75% 78% 

Percentage of Commission Opinions issued 

once Briefs Opposing Exceptions to Initial 

Decisions are filed 

90% within 12 months 

Target met. 100% (10 of 10) Initial 

Decisions processed within 12 months of 

Briefs Opposing Exceptions. 

Percentage of merit orders accepting, 

modifying, or rejecting timely filed cost 

recovery proposals for new infrastructure 

submitted (including time for hearing, ADR, 

or settlement judge participation) 

95% by applicant request date 

Target Met. 96% of the 120 merit orders to 

resolve cost recovery proposals for new 

infrastructure were issued by statutory or 

requested date as applicable. In the case of 

gas pipeline certificate applications, 

contributed rate inserts to allow timely 

completion. 

Timeliness of issuing environmental licensing 

requirements 

Licensing responsibility letters sent within 45 

business days of license issuance date 

Target Met. All licensing responsibility 

letters were issued within 45 days of license 

issuances. 

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 100% 

Participation in NERC / industry reliability 

readiness reviews 

 100% of the Reliability Coordinators 

 Large entities which represent 80% of the 

load served by all entities reviewed by NERC 

Target Met. FERC participated in 100% of 

NERC’s Reliability Coordinator reviews (5 of 

5), and participated in 22 readiness reviews of 

large entities which represent 94.5% (125,503 

MW) of the load served by all entities 

reviewed by NERC (132,796 MW). 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

62 

FY 2006 

Performance Measurement Performance Target Result 

Issue final rule on Electric Reliability 

Organization (ERO) certification and 

mandatory reliability standards enforcement 

Rule issued by February 4, 2006 

Target Met. Docket No. RM05-30-000; Final 

Rule, Order No. 672, “Rules Concerning 

Certification of the Electric Reliability 

Organization; and Procedures for the 

Establishment, Approval, and Enforcement of 

Electric Reliability Standards,” issued 

February 3, 2006. 

Percentage of new RTOs or ISOs performing 

reliability functions included in Orders No. 

2000 or No. 888, respectively 

100% No new RTOs or ISOs were established 

during the performance period. 

Percentage of merit orders accepting, 

modifying, or rejecting timely filed proposals 

to recover prudently incurred reliability costs 

submitted (including time for hearing, ADR, 

or settlement judge participation) 

95% by applicant request date 

Target Met. 100% of the 394 merit orders to 

resolve cost recovery proposals for reliability 

were issued by statutory or requested date, as 

applicable. 

Percentage of merit orders accepting, 

modifying, or rejecting timely filed proposals 

to recover prudently incurred safety and 

security costs submitted (including time for 

hearing, ADR, or settlement judge 

participation) 

95% by applicant request date 

Target Met. 100% of the 20 relevant filings 

(i.e., oil pipelines) were completed by the 

statutory action date. 

Percentage of high- and significant-hazardpotential dams inspected annually 100% 100% 

Percentage of high- and significant-hazardpotential dams that either meet all current 

structural safety standards or are undergoing 

investigation or remediation 

100% 100% 

Percentage of qualifying dams that either 

comply with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s) 

100% 100% 

Number of instances of unauthorized access 

to Critical Energy Infrastructure Information 

(CEII) 

No instances Target met. No instances. 

Number of complaints from CEII requesters 

on inability to participate in a proceeding due 

to failure to obtain CEII in a timely manner 

None Target met. None. 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

Resolve Regulatory and Other Challenges to Needed Development 

Issue Alaska Gas Pipeline Reports to Congress Issue Reports in February and August 2007 Target Met. Reports were issued on January 

31 and August 15, 2007. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

63

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

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 

Targets Met. 

 98% of unprotested cases were completed 

within 159 days of filing. 

 100% of protested cases were 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. 100% of cases of first 

impression or larger policy implications were 

completed within 365 days of filing. 

Percentage of pipeline certificate cases 

requiring a major environmental assessment or 

environmental impact statement completed 

90% within 480 days of filing 

Target Met. 94% of cases requiring a major 

environmental assessment or environmental 

impact statement were completed within 480 

days of filing. 

Percentage of qualifying LNG plants inspected 

during ongoing construction activity 100% of plants inspected every 8 weeks 

Target Met. 100% of qualifying LNG plants 

(6 of 6) where construction was occurring 

were inspected at least every 8 weeks. 

Percentage of ILP pre-filing study plan 

determinations completed 

85% within 150 days of applicant’s filing of 

the proposed study plan 

Target Met. 90% (9 out 10) ILP pre-filing 

study plan determinations were completed 

within 150 days of applicant’s filing of the 

proposed study plan. 

Percentage of infrastructure studies completed 

 100% for regional and issue-based 

infrastructure conferences 

 100% for Commission- and Congressionaldirected studies 

Targets Met. 

 100% of infrastructure studies completed 

for regional and issue-based conference. 

 100% of infrastructure studies completed 

for Commission- and Congressional-directed 

studies. 

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. Of the 18 projects that utilized 

the pre-filing process, 100% had final NEPA 

documents within 8 months of filing a 

complete application. 

Timeliness of filings processed containing 

amendments to non-independent electric 

transmission provider OATTs 

Within 60 days of filing date or applicants’ 

requested date, whichever is later 

Target Met. All 126 amendments to nonRTO/ISO OATTs completed within 60-day 

statutory timeframe. 

Encourage Investment and Effect Timely Cost Recovery 

Timeliness of applications processed for 

incentive rates under section 205 of the FPA 

Processed by the statutory deadline for rate 

filings or the applicants’ requested date, 

whichever is later 

Target Met. 100% of the 11 statutory 

incentive rates cases were processed within 

statutory timeframes. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

64 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Process cost recovery cases within reasonable 

timeframes (including prudently-incurred 

expenses to safeguard and enhance the 

reliability, security and safety of the energy 

infrastructure) 

 100% of statutory cases addressed by 

Commission order within statutory deadlines 

 95% of certificate cases within 12 months 

or applicants’ requested date, whichever is 

later 

 90% of cases set for hearing within 12 

months of briefs opposing exceptions 

Targets Met. 

 100% of all 3,164 statutory items, 

including cost recovery cases, were 

completed within statutory due dates. 

 In certificate work, 97%, or 60 of 62 cases 

requiring rate inserts, were completed timely. 

Even in the cases that were unavoidably 

delayed—one due to Coast Guard 

involvement in approving LNG facility, and 

the other subject to environmental issues 

because the company did not use the NEPA 

pre-filing process—the rate analyses were 

provided to the lead Office within the 

required time period. 

 

 100% issued within 12 months. 

Establish price volatility baseline By September 30, 2007 

Not Applicable. The Commission proposed 

to establish a price volatility baseline. The 

first step in this process was to determine 

what information was available and 

reasonable to collect. In FY 2007, staff 

reviewed available price data and concluded 

that a price volatility baseline was not 

feasible. Because of the lack of available 

data, this performance measure has been 

discontinued. 

Program performance was not negatively 

impacted as a result of not establishing a 

price volatility baseline. 

Establish out-of-merit dispatch baseline By September 30, 2007 

Not Applicable. The Commission proposed 

to establish an out-of-merit dispatch baseline. 

The first step in this process was to determine 

what information was available and 

reasonable to collect. In FY 2007, staff 

contacted transmission operators and found 

that their data is inconsistent across 

transmission systems and does not allow for 

meaningful analyses to establish this baseline. 

Because of the lack of consistent data, this 

performance measure has been discontinued. 

Program performance was not negatively 

impacted as a result of not establishing an 

out-of-merit dispatch baseline. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

65

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Assure Reliability of Interstate Transmission Grid 

Percentage of proposed reliability standards 

reviewed 100% 

Target Met. Docket No. RM06-16-000; Final 

Rule, Order No. 693, "Mandatory Reliability 

Standards for the Bulk-Power System," 

issued March 16, 2007, in which the 

Commission approved 83 of 107 proposed 

Reliability Standards, and directed significant 

improvements to 56 of those standards. The 

Commission also required submission of 

further information in order to evaluate the 

adequacy of the remaining 24 standards. 

The initial 83 standards became mandatory 

and enforceable on June 18, 2007. 

In addition, the Commission approved 8 

regional standards in Docket No. RM07-11-

000; "Order Approving Regional Reliability 

Standards for the Western Interconnection 

and Directing Modifications," issued June 8, 

2007. 

Develop procedures to review the performance 

of the ERO Complete by March 31, 2007 

Target Met. Procedures were outlined in 

Docket No. RM05-30-000; Final Rule, Order 

No. 672, "Rules Concerning Certification of 

the Electric Reliability Organization; and 

Procedures for the Establishment, Approval, 

and Enforcement of Electric Reliability 

Standards," issued February 3, 2006. 

Percentage of NERC / industry reliability 

readiness reviews of Reliability Coordinators 

in which FERC participates 

100% Target Met. FERC participated in all 4 of 

NERC's Reliability Coordinator reviews. 

Percentage of load served, included in NERC / 

industry reliability readiness reviews, in which 

FERC participates 

50% 

Target Met. FERC participated in 22 

readiness reviews of large entities which 

represent just over 80% (332,244 MW) of the 

load served by all entities reviewed by NERC 

(414,101 MW). 

Percentage of ERO penalty action rulings 

reviewed to prevent inappropriate rulings from 

going into effect by default 

100% 

No activity, as the standards only became 

mandatory on June 18, 2007, and no ERO 

proposed penalties were filed in FY 2007. 

Protect Safety at LNG and Hydropower Facilities 

Percentage of high- and significant-hazardpotential dams inspected annually 100% 

Target Met. 100% of all high and significant 

hazard-potential dams were inspected 

annually. 

Percentage of high- and significant-hazardpotential dams that either meet all current 

structural safety standards or are undergoing 

investigation or remediation 

100% 

Target Met. 100% of all high- and 

significant-hazard potential dams meet 

current structural standards or are undergoing 

investigation or remediation. 

Percentage inspected annually: 

 LNG import terminals 

 LNG peak-shaving facilities 

 100% 

 50% 

Targets Met. 

 All 5 of the operating LNG import 

terminals were inspected. 

6 of the 12 peak-shaving facilities were 

inspected. 

Percentage of LNG facilities that meet all 

current safety standards or are subject of a 

compliance letter 

100% 

Target Met. 100% of LNG facilities met all 

current safety standards or were subject to a 

compliance letter. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

66 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Percentage of EIS documents that contain 

sections addressing safety for Hydropower 

Projects, LNG Facilities, Gas Pipeline Projects 

and Storage Facilities 

100% 

Target Met. 100% of EIS documents contain 

sections relating to safety for Hydropower 

Projects, LNG Facilities, Gas Pipeline 

Projects and Storage Facilities. 

Control access to Critical Energy 

Infrastructure Information 

No instances of improper access or improper 

denial affecting national security or 

Commission proceedings 

Target met. No instances. 

Percentage of qualifying dams that either 

comply with EAP requirements or are 

conducting follow-up action(s) on outstanding 

item(s) 

100% 

Target Met. 100% of qualifying dams 

comply with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s). 

Percentage of LNG facility authorizations that 

incorporate consultation with all appropriate 

agencies on security related matters 

100% 

Target Met. 100% of LNG facility 

authorizations incorporate consultation with 

all appropriate agencies on security related 

matters. 

Incorporate Environmental Considerations into Commission Decisions 

Percentage of final NEPA documents issued 

for ALP/TLP cases: 

 with settlement agreements 

 without settlement agreements 

 85% within 12 months 

 85% within 24 months 

Targets Met. 

 100% of final NEPA documents (5 of 5) 

were issued within 12 months for ALP/TLP 

cases with settlement agreements. 

 100% of final NEPA documents (16 of 16) 

were issued within 24 months for ALP/TLP 

cases without settlement agreements. 

Timeliness of issuing environmental licensing 

requirements 

Licensing responsibility letters sent within 45 

business days of license issuance date 

Target Met. All licensing responsibility 

letters were sent out within 45 business days 

of license issuance date. 

Percentage of qualifying, major, onshorepipeline projects inspected during ongoing 

construction activity 

100% of projects inspected at least once 

every four weeks 

Target Met. Of the 30 pipeline projects under 

active construction in FY 2007, 100% were 

inspected at least once every four weeks. 

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

Resolve Regulatory and Other Challenges to Needed Development 

Timeliness of processing complete filings 

containing amendments to non-independent 

electric transmission provider OATTs 

100% processed by statutory due date or 

applicant’s requested date, whichever is later 

Target Met. 100% (125 out of 125) 

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 2008 Target Met. Reports were issued February 

19 and August 29, 2008. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

67

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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. 94% of unprotested pipeline 

certificate cases with no precedential issues 

were completed within 159 days of filing. 

Target Met. 100% of protested pipeline 

certificate cases with no precedential issues 

were 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. 97% of pipeline certificate 

cases of first impression or containing larger 

policy implications were completed within 

365 days of filing 

Percentage of pipeline certificate cases 

requiring a major environmental assessment or 

environmental impact statement completed 

90% within 480 days of filing 

Target Not Met. 75% (6 of 8) of pipeline 

certificate cases requiring a major 

environmental assessment or environmental 

impact state were completed within 480 

days of filing. Bradwood Landing Project 

(CP08-365-000, et al, issued September 18, 

2008) required additional time due to an 

unusually large number of environmental 

issues which resulted in processing delays 

beyond FERC’s control. This project was 

the first new LNG import terminal and 

related sendout pipeline to serve the Pacific 

Northwest. Broadwater Energy Project 

(CP06-54 issued March 20, 2008) also 

required additional time due to novel 

environmental issues which resulted in 

processing delays beyond FERC’s control. 

This project was the first floating terminal 

for the storage and delivery of liquefied 

natural gas in the United States. There were 

no adverse impacts as a result of these two 

delays. 

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. 87% of NEPA documents were 

completed within 8 months of determining a 

pipeline or LNG facility application was 

complete for projects utilizing the pre-filing 

process. 

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. 

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 ILP pre-filing study 

plans determinations were completed within 

30 days of the applicant filing a revised 

study plan. 

Percentage of infrastructure studies completed 

 95% for regional and issue-based 

infrastructure conferences 

 95% for Commission- and Congressionaldirected studies 

 Target Met. 100% of regional and issuebased infrastructure studies were completed 

for regional and issue-based infrastructure 

conferences. 

 Target Met. 100% of infrastructure 

conferences were completed for 

Commission- and Congressional-directed 

studies. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

68 

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

Encourage Investment and Effect Timely Cost Recovery 

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% (16 out of 16) 

statutory incentive rate cases were processed 

within the statutory timeframes. 

 Target Met. 100% filed within 180 days. 

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% (3,498 out of 3,499) 

statutory items, including cost recovery 

cases, were processed within statutory 

deadlines; only one filing missed its 

deadline by three business days 

 Target Met. 96% (55 out of 57) of rate 

inserts were processed within the 

appropriate timeframe. 

 Target Met. 100% filed within 12 months 

of briefs opposing exceptions. 

Timeliness of verification of EQR submissions Within 10 business days of filing due date Target Met. All 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% 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. 100% of financial accounting 

filings were completed within 60 days of 

filing date.

Percentage of reporting requirement filings 

completed timely 75% within 60 days of filing date Target Met. 99% of reporting requirement filings were completed within 60 days.

Assure Reliability of Interstate Transmission Grid 

Timely approval of ERO/RE budgets and 

business plans Complete by November 1, 2007 Target Met. Order was issued on October 18, 2007. 

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 Reliability Standards 

were remanded or approved within 18 

months of filing. 100% of Cyber Security 

Standards were approved within 18 months 

of being filed. 

Review the performance of the ERO 

Complete within 12 months of the submission 

by the ERO of an assessment of its 

performance 

N/A. The ERO’s submission is not due until 

July 2009. The Commission will review the 

performance of the ERO within 12 months 

of their submission. 

Percentage of ERO / industry reliability 

readiness evaluations of Reliability 

Coordinators in which FERC participates 

75% 

Target Met. Participated in 100% of 

ERO/industry reliability readiness 

evaluations of Reliability Coordinators (i.e., 

California-Mexico, Rocky Mountain-Desert 

Southwest, SPP, and ERCOT Reliability 

Coordinators). 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

69

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

Percentage of load served, included in ERO / 

industry reliability readiness evaluations, in 

which FERC participates 

35% 

Target Met. Participated in 11 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. 100% (37 out of 37) penalty 

action rulings were reviewed to prevent 

inappropriate rulings from going into effect. 

They were accepted by operation of law, 

Guidance on Filing Notices of Penalty, 124 

FERC ¶ 61,015 (July 3, 2008) 

Protect Safety at LNG and Hydropower Facilities 

Percentage of high- and significant-hazardpotential dams inspected annually 100% Target Met. 100% of high- and significanthazard-potential dams were inspected. 

Percentage of high- and significant-hazardpotential dams that either meet all current 

structural safety standards or are undergoing 

investigation or remediation 

100% 

Target Met. 100% of high- and significanthazard-potential dams met all current 

structural safety standards or are undergoing 

investigation or remediation. 

Percentage of LNG import terminals inspected 

annually 90% Target Met. 100% of the LNG import terminals were inspected. 

Percentage of LNG peak-shaving facilities 

inspected biennially 90% 

Target Met. 100% of peak shaving plants 

were inspected according to the biennial 

schedule. 

Percentage of LNG facilities that meet all 

current safety standards or are subject of a 

compliance letter 

100% 

Target Met. 100% of the LNG facilities 

either met all current safety standards or 

received a compliance letter. 

Percentage of qualifying dams that either 

comply with EAP requirements or are 

conducting follow-up action(s) on outstanding 

item(s) 

100% 

Target Met. 100% of qualifying dams 

comply with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s). 

Control access to Critical Energy 

Infrastructure Information 

No instances of improper access or improper 

denial affecting national security or 

Commission proceedings 

Target Met. No instances. 

Incorporate Environmental Considerations into Commission Decisions 

Timeliness of issuing environmental licensing 

requirements 

Licensing responsibility letters sent within 60 

business days of license issuance date 

Target Met. All licensing responsibility 

letters were issued within 60 days of license 

issue date. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

70 

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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% of final NEPA 

documents were issued for ALP/TLP cases 

with settlement agreements within 12 

months of the settlement filing date 

 Target Met. 100% of final NEPA of final 

NEPA documents were issued for ALP/TLP 

cases without settlement agreements within 

24 months of the REA date 

Percentage of qualifying, major, onshorepipeline projects inspected during ongoing 

construction activity 

90% of projects inspected at least once every 

four weeks 

Target Met. 98% of qualifying, major, 

onshore-pipeline projects were inspected at 

least once every four weeks during ongoing 

construction activity. 

FY 2009 

Performance Measure Performance Target Results 

Resolve Regulatory and Other Challenges to Needed Development

Timeliness of processing complete filings 

containing amendments to non-independent 

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 prefiling 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 Congressionaldirected studies 

▪ Target Met. 100% studies completed 

for regional and issue-based 

infrastructure conferences 

▪ Target Met. 100% studies completed 

for Commission- and Congressionaldirected studies 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

71

FY 2009 

Performance Measure Performance Target Results 

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 

▪ 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 were 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 

FY2009. 

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. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

72 

FY 2009 

Performance Measure Performance Target Results 

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. 

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- hazardpotential dams inspected annually 90% 

Target Met. 90% of high- and 

significant- hazard-potential dams 

inspected 

Percentage of high- and significant- hazardpotential 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 followup 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 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

73

FY 2009 

Performance Measure Performance Target Results 

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. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

74 

Performance Measurement Data for Competitive Markets: FY 2006 – FY 2009

FY 2006 

Performance Measurement Performance Target Data Source 

Review and propose revisions to OASIS 

standards By June 30, 2006 

Target Met. Docket No. RM05-5-000; 

Final Rule, Order No. 676, “Standards for 

Business Practices and Communication 

Protocols for Public Utilities,” issued 

April 25, 2006. 

Assess demand response Issue annual report by August 8, 2006 

Target Met. Staff report, “Assessment of 

Demand Response & Advanced 

Metering” (Docket No. AD-06-2-000) was 

delivered to Congress on August 4, 2006. 

Issue final rule to implement PUHCA provisions 

of EPAct 2005 By January 31, 2006 Target Met. Final rule was issued on December 8, 2005. 

Issue rules governing market manipulation in 

electricity and gas markets By September 30, 2006 

Target Met. The final rule (Order 670) 

was issued January 19, 2006 and an order 

denying rehearing was issued March 22, 

2006 in Docket Nos. RM06-3, et al., Final 

Rule Prohibiting Energy Market 

Manipulation. 

Movement toward competitive markets in each 

region, including greater interregional 

coordination of broader, more efficient, and nondiscriminatory energy markets 

Increase in: 

 new, independent regional transmission 

providers 

 coordination between RTOs or between 

RTOs and neighboring non-member utilities 

Target Met. Some examples: 

 In order to create a more seamless 

administration between the tariffs of the 

Midwest ISO’s energy markets and the 

non-market operations of Mid-Continent 

Area Power Pool’s (MAPP) members that 

do not belong to the Midwest ISO, the 

Commission approved MAPP’s proposal 

to conform its Available Transfer 

Capability (ATC) calculation 

methodologies to provisions of the Seams 

Operating Agreement between MAPP and 

the Midwest ISO. 

 The Commission approved proposed 

revisions to the SPP/Midwest ISO Joint 

Operating Agreement (JOA) and to the 

Congestion Management Process (CMP) 

which is incorporated in the JOA to align 

them more closely with the JOA and CMP 

of the Midwest ISO/PJM. 

 Action was taken on Midwest ISO and 

PJM and their respective transmission 

owners’ proposed revisions to the JOA for 

allocating to customers in each RTO the 

cost of new transmission facilities that are 

built in one RTO but provide benefits to 

customers in the other RTO (the so-called 

cross-border facilities). 

Increased presence at RTOs, to improve 

relationships with and knowledge of existing 

RTOs 

Creation and staffing of an office at any new 

RTO within 6 months of commencement of 

operations (including establishment of virtual 

office processes) 

No new RTOs were established during the 

performance period. All existing RTOs 

have either staff on location or a virtual 

office process in effect. 

Percentage of filings to establish RTOs, ISOs, or 

Independent Transmission Companies (ITCs) 

processed 

100% completed within 6 months of filing or 

before applicants’ proposed effective date 

(whichever is later) 

No filings were received to establish new 

RTOs, ISOs, or ITCs during the 

performance period.
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

75

FY 2006 

Performance Measurement Performance Target Data Source 

RTO / ISO establishment of cost-effective market 

design elements per Order No. 2000 

Within three years of commencement of 

operation, each approved RTO or ISO will 

implement (if cost effective): 

 firm transmission rights 

 resource adequacy approaches 

 regional independent grid operation 

 regional transmission planning process 

 appropriate market monitoring and market 

power mitigation 

 transparency and efficiency in congestion 

management 

 spot markets to meet customers’ real-time 

energy needs 

 fair cost allocation for existing and new 

transmission 

Target Met. With the exception of 

Southwest Power Pool (SPP), all 

RTOs/ISOs (PJM, ISO-NE, NY-ISO, 

Midwest ISO, and CAISO) have been 

operational over 3 years and all have 

implemented cost-effective market design 

elements. 

SPP has been operating as an RTO since 

November 1, 2004, and has received 

authorization during FY 2006 to 

commence a real-time energy imbalance 

market, as well as having received 

approvals for its market monitoring and 

mitigation plans. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

76 

FY 2006 

Performance Measurement Performance Target Data Source 

Demonstrable improvements in regional 

competitive market transparency and 

independence 

In each region of the country, there will be: 

 RTO adoption of additional marketoriented features, programs or rules 

 improvement of open access tariff to 

reduce entry barriers or eliminate undue 

discrimination 

 increase in the degree of transmission 

independence (ownership or control) from 

generation in regions primarily without RTOs 

Target Met. During FY 2006, the 

Commission acted on a number of 

proceedings related to improving 

competitive market transparency and 

independence. 

Some actions by the Commission will 

have nationwide impact. In May 2006, 

the Commission issued a notice of 

proposed rulemaking (NOPR) proposing 

amendments to its regulations and the pro 

forma OATT to ensure that transmission 

services are provided on a basis that is 

just, reasonable and not unduly 

discriminatory or preferential. The NOPR 

aims to strengthen the OATT and address 

deficiencies that have become apparent 

since its adoption 10 years ago, 

particularly in the areas of available 

transfer capability calculation and 

transmission planning. 

In addition, the Commission approved 

four proposals by vertically integrated 

utilities (Duke, MidAmerican, Entergy, 

and Louisville Gas & Electric) to contract 

with an independent entity to serve as the 

independent coordinator of transmission 

(ICT). The ICT performs oversight over 

these utilities’ transmission systems, 

including authority to administer utilities’ 

OATT. 

Other actions taken on proceedings related 

to establishing new or revised market 

rules, rule changes in RTOs, and increased 

transmission independence were regionspecific. For example: 

East

In the New England area, the Commission 

issued an order accepting a proposal filed 

by ISO-NE and NEPOOL which included, 

most significantly, the addition of a 

locational component to the existing 

Forward Reserve Market and the 

coordination and optimization of pricing 

of energy and reserves in real time to be 

effective October 1, 2006, or later date. 

In addition, the Commission approved a 

contested settlement that provided an 

alternative to the Locational Installed 

Capacity mechanism called the Forward 

Capacity Market (FCM). The 

Commission found that the FCM, in 

conjunction with an interim mechanism, 

will provide the revenues needed by 

generators to preserve reliability in New 

England. The Commission also found that 

the forward looking nature of the FCM 

will provide appropriate price signals to 

investors when new infrastructure 

resources are necessary with sufficient 

lead time to allow that infrastructure to be 

put in place before reliability is sacrificed. 

(Continue on next page) 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

77

FY 2006 

Performance Measurement Performance Target Data Source 

(continued from previous page) 

Demonstrable improvements in regional 

competitive market transparency and 

independence 

(continued from previous page) 

In each region of the country, there will be: 

 RTO adoption of additional marketoriented features, programs or rules 

 improvement of open access tariff to 

reduce entry barriers or eliminate undue 

discrimination 

 increase in the degree of transmission 

independence (ownership or control) from 

generation in regions primarily without RTOs 

(Continued from previous page) 

With respect to the PJM area, the 

Commission issued an initial order on 

PJM’s proposed reliability pricing model 

(RPM) designed to replace its existing 

capacity obligation rules. The 

Commission found the existing capacity 

rules to be unjust and unreasonable to 

ensure energy resources to meet reliability 

responsibilities, and established further 

procedures to resolve the remaining 

issues. At the same time, the Commission 

encouraged the parties to continue to seek 

a negotiated resolution, and offered the 

Commission’s settlement judge 

procedures to facilitate these discussions. 

Central

For the Midwest ISO region, the 

Commission approved the continuation of 

mitigation in Broad Constrained Areas; 

action on proposed revisions to real-time 

revenues sufficiency guarantee (RSG) 

payments; approval of revised rules 

defining less-than-seasonal financial 

transmission right (FTR) entitlements for 

network resources; approval of contractual 

arrangements related to the market 

monitor and balancing authorities; as well 

as offering guidance on Midwest ISO’s 

future plans to implement ancillary service 

markets and an energy-only market. 

For the SPP region, the Commission 

provided guidance and approvals related 

to SPP’s proposal to establish a real-time 

energy imbalance market. 

Regarding revisions to the OATT, the 

Commission approved various revisions to 

the Midwest ISO’s creditworthiness 

provisions, reactive power requirements, 

as well as changes to the Midwest ISO pro 

forma interconnection agreement which 

reflect improvements or regional 

variations needed based upon its 

operational experience, including new 

pricing provisions. 

West

In September 2006, the Commission 

conditionally approved the CAISO Market 

Redesign and Technology Upgrade 

(MRTU) market reforms and 

enhancements, such as a financially 

binding day-ahead market and more 

effective congestion management system. 

Elements of MRTU are intended to fix 

market design flaws, enhance reliability, 

better protect wholesale customers from 

price volatility and gaming, incorporate 

price-responsive demand in the markets, 

and encourage construction of new 

resources. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

78 

FY 2006 

Performance Measurement Performance Target Data Source 

Percentage of section 203 applications processed 98% completed within 90 days of the 

comments filing date 

Target Met. 100% of the 145 section 203 

corporate filings were processed by target 

completion dates in FY 2006. 

Issue final rule on RTO and ISO accounting to 

improve oversight of RTO and ISO costs By January 31, 2006 

Target met. A final order on RTO 

accounting and financial reporting was 

issued on December 16, 2005 in Docket 

RM04-12-000, Order No. 668. 

Percentage of market-based rate filings processed 100% of new filings within 60 days of filing 

date 

Target Met. 100% of the 534 marketbased rate filings were completed by the 

targeted deadline in FY 2006. 

Percentage of competitive energy markets and 

market institution cases set for hearing completed 

according to the established schedule 

 75% of Track I cases in 29.5 weeks 

 75% of Track II cases in 47 weeks 

 75% of Track III cases in 63 weeks 

 There were no Track I cases 

 87% of Track II cases in 47 weeks 

 There were no Track III cases 

Percentage of competitive energy markets and 

market institution cases set for hearing that 

achieve partial or complete consensual agreement 

75% 100% 

Percentage of applications filed by RTOs and 

ISOs to revise market rules to not inhibit demand 

response processed 

100% within statutory deadlines

Target Met. The Commission processed 

all 5 filings involving demand response 

enhancements within the statutory 

deadlines: 

 PJM submitted agreements to enhance 

demand response in the PJM region in a 

number of ways, including allowing 

demand resources to participate in PJM’s 

ancillary services market by bidding into 

the PJM reserve markets. 

 ISO-NE’s Ancillary Services Market 

(ASM) Phase II will include measures 

allowing the owners of demand resources 

to bid their resources directly into the 

energy and reserve markets on an equal 

footing with generating resources. This 

change will establish the supporting 

market infrastructure that is needed to 

develop fully the potential for demand 

participation in the wholesale markets. 

 NYISO’s filing eliminated the sunset 

dates for NYISO’s Day-Ahead Demand 

Response Program and its Emergency 

Demand Response Program. 

 ISO-NE’s proposal to establish a 

demand response reserve pilot program to 

test whether certain resources can reliably 

provide 30-minute and 10-minute 

Operating Reserve services. 

 CAISO’s MRTU tariff provides loads 

with demand response capability the 

opportunity to participate in the CAISO 

day-ahead, real-time, and ancillary 

services markets under comparable terms 

as supply. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

79

FY 2006 

Performance Measurement Performance Target Data Source 

Support development of robust customer 

demand-side participation in energy markets in 

areas where it does not exist 

Meet at least annually to discuss demand 

response issues with appropriate state 

commission officials 

Target Met. Held technical conference on 

demand response in January 2006, where 

state representatives, including several 

state commissioners from all regions of 

the U.S., participated on panels. Met with 

NARUC officials in January 2006 to 

discuss Commission demand response 

report and seek their assistance in the 

FERC demand response and advanced 

metering survey. Met in April 2006 with 

Midwestern state officials, primarily 

Illinois Commissioners, on the 

development of a regional demand 

response initiative. Discussed demand 

response report with state officials and 

Commissioners at various events 

including the NARUC Winter Meeting in 

February 2006 and an EPRI Summer 

Seminar on Energy Efficiency and EndUse Technologies in August 2006. 

Percentage of proposed NAESB business practice 

standards rulemakings completed 

 100% of non-controversial rulemakings 

within 9 months 

 100% of controversial rulemakings within 

12 months 

Target Met. During FY 2006, the 

Commission issued a final rule adopting 

the Wholesale Electric Quadrant’s 

controversial first set of business practice 

and communication standards within 12 

months of receiving NAESB’s complete 

proposal. Docket No. RM05-5-000; Final 

Rule, Order No. 676, “Standards for 

Business Practices and Communication 

Protocols for Public Utilities,” was issued 

April 25, 2006. 

Percentage of initial orders completed on thirdparty complaints  80% within 60 days 

 95% within 180 days 

 60-day target not met. 49% (28 of 57 

{1 projected}) issued within 60 days. 

This was an internal deadline, not 

statutorily based, and did not have a 

negative impact on operations. 

 180-day target met. 95% (49 {1 

projected} of 51 {1 projected}) issued 

within 180 days. 

Percentage of initial orders completed on fast 

track third-party complaints 90% within prescribed time frame Target Met. One filing was received and completed on time. 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

Employ Best Practices In Market Rules 

Timeliness of review of proposed market 

rules 

By the statutory due date or the applicants’ 

requested date, whichever is later 

Target Met. All 358 filings from PJM, ISONE, NYISO, NEPOOL, SPP, Midwest ISO, 

and California ISO were acted on by statutory 

due dates. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

80 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Percentage of proposed NAESB business 

practice standards rulemakings completed 

 100% of unopposed rulemakings within 9 

months 

 100% of all rulemakings within 12 months 

Targets Met. The Commission issued two 

NAESB business practice standards 

rulemakings during the fiscal year, both 

completed within 9 months of issuance of the 

notice of proposed rulemaking, as follows: 

Docket No. RM05-5-003; NOPR issued 

February 20, 2007; Final Rule, Order No. 

676-B, "Standards for Business Practices and 

Communication Protocols for Public 

Utilities," issued April 19, 2007; and 

Docket Nos. RM96-1-027 and RM05-5-001; 

NOPR issued October 25, 2006; Final Rule, 

Order 698, "Standards for Business Practices 

for Interstate Natural Gas Pipelines; 

Standards for Business Practices for Public 

Utilities," issued June 25, 2007. 

Timeliness of applications processed on 

requests to encourage demand response in 

organized markets 

Within 60 days of filing date or applicants’ 

requested date, whichever is later 

Target Met. All 15 filings were acted on 

within 60-day statutory due dates. 

Reduce Barriers to Trade Between Markets and Among Regions 

Timeliness of review of filings to reduce or 

eliminate seams between organized markets 

By the statutory due date or the applicants’ 

requested date, whichever is later 

Target Met. All 10 filings dealing with seams 

issues were completed by statutory due dates. 

In addition, two major orders were issued 

related to the California ISO's Market 

Redesign Technology Update (MRTU) 

addressing seams issues between CAISO and 

neighboring systems in the Western 

Interconnect. A technical conference was 

held on December 15, 2006, in Phoenix, 

Arizona, to address these western seams 

issues; and on March 29, 2007, a second 

conference was held in Washington, DC, to 

address eastern seams issues. 

Assure Proposed Mergers and Acquisition Are in the Public Interest 

Percentage of merger authorizations upheld 

by the courts 90% Target met. 100% of merger authorizations have been upheld by the courts. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

81

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Percentage of merged applicants reporting on 

compliance with merger conditions imposed 

by the Commission 

100% 

Target Met. 100% of the 9 merger applicants 

reported on compliance, if or as applicable, 

with the four types of conditions—summary, 

notice of consummation, proposed accounting 

entries, and additional conditions—imposed 

by the Commission. 

It should be noted that most of the 

“additional” conditions only require 

compliance in the event that the merger 

applicants subsequently take some specific 

action. For example, in 5 of the 9 mergers, 

the Commission imposed a “hold-harmless” 

condition, requiring that if the applicants seek 

to recover merger-related costs through 

jurisdictional rates, they must show offsetting 

merger-related cost savings. As of yet, none 

of the applicants have sought to recover any 

merger-related costs, so they haven’t needed 

to make a compliance filing. 

Timeliness of processing applications 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) 

 Within 180 days for non-major mergers 

 Within 360 days for major mergers 

Targets Met. 

 100% of the 100 non-major dispositions 

were completed within 180 days. 

 100% of the 9 major merger cases were 

completed within 360 days. 

Address Market Power in Jurisdictional Wholesale Markets 

Revise open access transmission tariff Issue final rule by June 30, 2007 

Target Met. Docket Nos. RM05-17-000 and 

RM05-25-000; Final Rule, Order 890, 

"Preventing Undue Discrimination and 

Preference in Transmission Service," issued 

February 16, 2007. 

Timeliness of processing initial market-based 

rate filings 

Within 60 days of filing date or by 

applicant’s requested date, whichever is later 

Target Met. 100% of the 167 initial marketbased rate applications were completed by the 

established target date. 

Develop generation market power screens for 

electric market based rates Issue final rule by June 30, 2007 

Target Met. Docket No. RM04-7-000; Final 

Rule, Order 697, "Market-Based Rates for 

Wholesale Sales Of Electric Energy, Capacity 

And Ancillary Services By Public Utilities," 

issued June 21, 2007. 

Act timely on complaints 80% within 60 days or, for fast-track cases 

only, within the designated timeframe 

Target not met; 78%. The performance goal 

was set at an approximate target level, and the 

deviation from that level is slight. There was 

no effect on overall program or activity 

performance. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

82 

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

Employ Best Practices in Rules 

Percentage of initial orders completed on thirdparty 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. 83% (40 of 48) filed 

within 60 days of the date of the 

answer. 

 Target met. 98% (47 of 48) filed 

within 180 days of the date of the 

answer.

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% (410 out of 410) 

filings from PJM, ISO-NE, NYISO, 

NEPOOL, SPP, Midwest ISO, and 

California ISO were acted on by 

statutory due dates 

Percentage of proposed NAESB business practice 

standards rulemakings completed 

100% of all proposed rulemakings within 12 

months of receipt of comments 

Target Met. The Commission issued 

one NAESB business practice standards 

rulemaking. 

Docket No. RM05-5-005, NOPR issued 

April 21, 2008; Final Rule, Order No. 

676-C, “Standards for Business 

Practices and Communication Protocols 

for Public Utilities,” issued July 21, 

2008 (three months later) 

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% (10 out of 10) 

filings were acted on by statutory due 

dates. 

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 34 sessions in first quarter, 

36 sessions in second quarter, 33 

sessions in third quarter, and 28 

sessions in fourth quarter. 

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% (6 out of 6) filings 

dealing with border utility issues 

between markets were completed by 

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% (142 out of 

142) of non-major dispositions 

were completed by the statutory 

deadlines 

 Target Met. 100% (7 out of 7) of 

major merger cases were 

completed by the statutory 

deadline. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

83

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

Address Market Power in Jurisdictional Wholesale Markets 

Timeliness of processing initial electric marketbased 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% (156 out of 156) of 

initial market-based rate applications 

were completed by the established 

target date. 

FY 2009 

Performance Measure Performance Target Results 

Employ Best Practices in Rules

Percentage of initial orders completed on thirdparty 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 nonmajor 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 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

84 

FY 2009 

Performance Measure Performance Target Results 

Address Market Power in Jurisdictional Wholesale Markets

Timeliness of processing initial electric marketbased 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. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

85

Performance Measurement Data for Enforcement: FY 2006 – FY 2009

FY 2006 

Performance Measurement Performance Target Data Source 

Reduce duplicative information requests 

through coordination with CFTC 50% reduction by September 30, 2006 

Target met. Investigations coordinated with 

CFTC on all known cases of joint interest and 

there were no known duplicative information 

requests. 

Timeliness of verification of EQR 

submissions Within 10 business days of submission Target met. Verified within 10 business days. 

Review EQR submissions for completeness 

and contact companies that make up at least 

80% of reported revenue for incomplete 

submissions 

Within 10 business days of submission 

Target met. Contacted 100% of companies in 

the EQR database that had filed incomplete 

submissions within 10 business days of filing 

deadline. 

Conduct follow up reviews of companies that 

make up at least 80% of reported revenue on 

exercise of market power or market 

manipulation 

Within 60 days of final submission 

Target Met. Conducted follow-up reviews of 

EQR filers that make up at least 80% of 

reported revenue for the third quarter of 2005 

for market manipulation or exercise of market 

power within 60 days of final submission. 

Timeliness of reporting to Commission on 

important market events Analysis complete within 60 days of event 

Target Met. Provided the Commission with 

seven presentations at open Commission 

meetings, 26 Weekly Market Reviews 

beginning in April 2006 reviewing weekly 

market developments and performance, and 

seven end-of-day summaries on market 

conditions during heat waves in the summer 

of 2006. 

Percentage of Hotline calls resolved 60% within 2 weeks of initial contact 

Target Met. Since October 1, 2005, 80% of 

hotline calls were resolved within two weeks 

of initial contact. 

Percentage of non-environmental, non-tribal 

ADR processes (agreed to by parties) 

concluded 

75% within 120 days (convening and 

process) 

Target Met. The DRS completed 25 cases in 

FY 2006 that were non-environmental and 

non-tribal, and in which the parties agreed to 

pursue an ADR process. Of these, 22 were 

completed within 120 days after being 

referred the DRS (88%) 

Number of ADR requests and referrals to the 

Dispute Resolution Service 

Minimum number of requests and referrals 

equal to FY 2004 

Target Met. The DRS addressed 70 new 

requests or ongoing cases from a previous 

year, involving gas, electric, hydroelectric, 

oil, and pipeline matters. This represents a 

29.6% increase over FY 2004 

Favorable Dispute Resolution Service 

customer satisfaction 80% customer satisfaction rate 

Target Met. For training given by DRS, 

customer satisfaction rate was 89%. For 

casework concluded in FY 2006, all 

participants who completed evaluations gave 

the DRS staff favorable comments, for a 

satisfaction rate of 100%. 

Percentage of market manipulation cases set 

for hearing completed according to the 

established schedule 

 75% of Track I cases in 29.5 weeks 

 75% of Track II cases in 47 weeks 

 75% of Track III cases in 63 weeks 

There were no Track I, II, or III cases 

Percentage of market manipulation cases set 

for hearing that achieve partial or complete 

consensual agreement 

75% 100% 

Timeliness of reporting to the Commission 

on operational audits 

85% reported to the Commission within 120 

days of Commencement Letter 

Target Met. Since the beginning of the rating 

year, 100% of operational audits were 

reported to the Commission within 120 days 

of Commencement Letters. 

Percentage of operational audit 

recommendations issued and implemented 85%

Target Met. 100% of operational audit 

recommendations have been issued and 

implemented. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

86 

FY 2006 

Performance Measurement Performance Target Data Source 

Timeliness of reporting to the Commission on 

financial audits 

85% reported to the Commission within 120 

days of Commencement Letter 

Target Met. Since the beginning of the rating 

year, 100% of financial audits were reported 

to the Commission within 120 days of 

Commencement Letters. 

Percentage of financial audit 

recommendations issued and implemented 85%

Target Met. 100% of financial audit 

recommendations have been issued and 

implemented. 

Timeliness of reporting to the Commission on 

Standards of Conduct compliance audits 

85% reported to the Commission within 120 

days of Commencement Letter 

No Standards of Conduct compliance audits 

were initiated during FY 2006. 

Percentage of Enforcement investigations 

completed 75% within one year 

Target Met. From October 1, 2005 to the 

present, 88% of cases were closed within one 

year (84% within 9 months and 60% within 6 

months). 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

Identify and Remedy Problems with Structure and Operations In Energy Markets 

Timeliness of verification of EQR 

submissions Within 10 business days of submission Target met. 100% verification within 10 business days.

Evaluate and improve the usefulness of EQR 

data 

 Issue a data dictionary for all undefined 

fields with restricted entries 

 Review the current EQR data structure and 

develop written recommendations for 

improvements 

Targets met. Issued Final Order in Docket 

No. RM01-8-006 on September 24, 2007 

which defined all EQR fields and improved 

EQR data structure.

Number of RTO and ISO MMU performance 

metrics Increase over FY 2006 

Target met. One new RTO and ISO MMU 

performance metric was developed in 

FY2007 (increasing the number of 

performance metrics from 11 in FY 2006 to 

12 in FY 2007). 

Timeliness of initiating or deciding action on 

MMU referrals 80% acted on within 30 days Target met. 100% acted on within 30 days. 

Percentage of organized markets reviewed 

and market structure and operations problems 

or deficiencies identified 

100% reviewed and reports completed 

identifying market problems or deficiencies, 

if any, and recommended solutions 

Target met. 100% of organized markets 

reviewed in daily oversight meetings, 

including all RTO/ISO markets, NYMEX, 

ICE and other relevant markets. Results of 

continuing review communicated to 

Commissioners via Weekly Reports and to 

the public via the Market Oversight website 

and the State of the Markets Report. Seven 

major structure and operations problems were 

identified. 

Timeliness of actions on problems or 

discrepancies identified in reviews of 

organized markets 

With 6 months of completed report

Target met. Addressed all seven identified 

issues within six months of identification. 

Issues included: prices over $400 in West, 

lack of transparency for intrastate pipelines, 

lack of transparency for natural gas sales and 

purchases, need to clarify role of MMUs in 

RTOs, PJM/MISO transmission issues, 

CenterPoint data reporting, and Rockies Gas 

Prices. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

87

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

Publish annual assessment of infrastructure 

and market conditions for each region Complete by June 30, 2007 

Target met. The State of the Markets Report 

was completed in February 2007 and detailed 

market and infrastructure issues for the 

country as a whole. In addition the Seasonal 

Assessment was published for electric power 

on May 17, 2007, specifically addressing 

summer 2007 and the new Market Oversight 

website provides updates and detailed 

information for each region on a monthly 

basis. 

Establish Clear and Fair Processes 

Improve Forensic Audits and Investigations 

information technology tools 

Implement capability to search e-mails and 

voice recordings by June 30, 2007 

Target met. The capability to search voice 

recordings was implemented beginning in 

September 2006 and the capability to search 

e-mails was implemented beginning in 

August 2006. 

Improve Forensic Audits and Investigations 

capabilities 

90% of enforcement and compliance staff 

participate in forensics training and 

interviewing skills by June 30, 2007 

Target met. 95% of enforcement and 

compliance staff received training on forensic 

interviewing and auditing. Classes were held 

in August 2005 and May 2006.

Timeliness of reporting to the Commission on 

operational audits 

100% reported to the Commission within 120 

days of Commencement Letter 

Target met. 100% of operational audits (24 

out of 24 from 10/1/06 – 9/30/07) were 

reported to the Commission within 120 days 

of the Commencement Letter.

Percentage of operational audit 

recommendations issued and implemented 90% 

Target met. 100% of operational audit 

recommendations issued were implemented 

within 6 months.

Timeliness of reporting to the Commission on 

financial audits 

100% reported to the Commission within 120 

days of Commencement Letter 

Target met. 100% of financial audits (43 out 

of 43 from 10/1/06 – 9/30/07) were reported 

to the Commission within 120 days of the 

Commencement Letter.

Percentage of financial audit 

recommendations issued and implemented 90% 

Target met. 100% of financial audit 

recommendations issued were implemented 

within 6 months.

Conduct Investigations Promptly and Impose Penalties Where Appropriate 

Percentage of enforcement investigations 

completed 75% within one year of initiation Target met. 94.8% of investigations were closed within a year of being initiated. 

Percentage of Hotline calls resolved 70% within 2 weeks of initial contact Target met. 75% of Hotline calls were 

resolved within 2 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. 95% of regulated entities 

included in the annual audit plan were audited 

(74 out of 78). 

Timeliness of responses to regulated entities 

seeking guidance and clarification on 

compliance issues 

Within 60 days 

Target met. Responded to 100% of regulated 

entities seeking guidance and clarification on 

compliance issues within 60 days. 

Timeliness of completing recommendations 

on compliance issues raised by regulated 

entities 

Within 180 days, where Commission action is 

required 

Target met. 100% of recommendations to the 

Commission (where Commission action was 

required) were completed within 180 days of 

completing an investigation originated by a 

self report. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

88 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

Timeliness of reporting on compliance issues 

raised by regulated entities Reports completed monthly 

Target met. The Pending Case Report is 

issued at the end of each month and reports 

on compliance issues (i.e., self reports) raised 

by regulated entities. 

FY 2008 

Strategy 

Performance Measure 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. 45 Weekly Market Reviews 

(WMR) were produced. In 2 other instances, 

market conditions were summarized at the 

Commission’s monthly meeting. In addition 

to the 45 WMRs published, 13 special reports 

providing in-depth analysis of emerging 

market issues were also published. 

Timeliness of actions on significant issues 

identified by regular monitoring of natural 

gas and electric markets 

Within 6 months of completed report Target Met. Actions on all significant issues 

were completed within 6 months. 

Complete transition of consolidated reporting 

to a web strategy Complete by June 30, 2008 

Target Met. The transition of this web 

strategy was completed in March 2008 when 

the State of the Markets report was published 

to the Oversight page 

(http://www.ferc.gov/marketoversight/market-oversight.asp) on the 

external FERC website. 

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. The Commission was provided 

with a written memo and recommendations 

for each of the six settlements approved in FY 

2008. 

Develop and provide further guidance to the 

industry on FERC’s expanded penalty 

authority 

By September 30, 2008 Target met. The revised Policy Statement on 

Enforcement was issued on May 15, 2008. 

Timeliness of reporting to the Commission on 

operational audits 

Within 120 days of the Commencement 

Letter Target Met. 100% (30 out of 30) 

Percentage of operational audit 

recommendations issued and implemented 90% within 6 months Target Met. 99% (94 out of 95) 

Timeliness of reporting to the Commission on 

financial audits 

Within 120 days of the Commencement 

Letter Target Met. 100% (37 out of 37) 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

89

FY 2008 

Strategy 

Performance Measure Target Results 

Percentage of financial audit 

recommendations issued and implemented 90% within 6 months Target Met. 100% (23 out of 23) 

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. 100% acted on within 30 days. 

Percentage of enforcement investigations not 

including market manipulation issues 

completed 

75% within one year of initiation Target Met. 89% completed within one year 

of initiation. 

Percentage of market manipulation 

enforcement investigations completed 75% within two years of initiation Target Met. 100% completed within two years of initiation. 

Percentage of Hotline calls resolved 70% within 2 weeks of initial contact Target Met. 78% resolved within 2 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. 97% (77 out of 79). 

Process complete requests for “No Action” Within 60 days of receipt of final request 

Target Met. All five requested no-action 

letters were all completed in less than 60 

days. 

Timeliness of reporting on compliance issues 

raised by regulated entities Reports completed monthly 

Target Met. Monthly pending case reports 

were issued for self-reports of compliance 

issues. 

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. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

90 

FY 2009 

Performance Measure Performance Target Results 

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 

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. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

91

FY 2009 

Performance Measure Performance Target Results 

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. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

92 

Performance Measurement Data for Supporting Initiatives: FY 2006 – FY 2009

FY 2006 

Performance Measurement Performance Target Data Source 

Percentage of summer interns hired into 

permanent positions 30% 

Target Not Met. 14.3% of summer interns 

eligible to be rehired accepted offers of 

permanent employment. 

Conversions of summer interns have steadily 

declined since its high in 2003 with 33%. As 

EPAct of 2005 requirements have evolved, 

the need for skill sets not represented in the 

summer intern population has dictated hiring 

from other sources. This measure is omitted 

in 2007 and reduced in 2008 to 20%. 

Implement entry-level Professional 

Development Program Complete by September 30, 2006 

Target Met. FERC Entry-Level Retention 

Program distributed to Program Offices in 

September 2006. 

Percentage of minorities among senior-level 

positions (GS-14, GS-15, SL, and SES 

positions) 

Increase over FY 2005 

Target Met. Percentage of minorities among 

senior-level positions increased by 1% over 

FY 2005. 

Implement Commission-wide Business 

Requirements guidelines Complete by September 30, 2006 

Target Met. Commission-wide Business 

Requirements Guidelines distributed to the 

Training Council in September 2006 

Reliability of IT infrastructure 99% network availability rate Target Met. 

FISMA compliance according to the Putnam 

scorecard Grade of “A” 

Target Met. FERC received a grade of an 

"A" based on the Putnam scorecard for its 

most recent FISMA report which ended 

September 30, 2006.

Integrate the Business Plan, CPIC process, 

and IT architecture into the Commission’s 

Enterprise Architecture 

Complete by September 30, 2006 

Target Met. DCIO's current CPIC process 

requires all requests to map to the FERC 

Business Plan. Pursuant to the CPIC process 

Information Technology (IT) projects are 

approved or denied based on a number of 

criteria one being whether or not it supports 

the Commission's mission. Approved IT 

projects generate a Control Board action 

producing document. The data from the 

approved CCN is used to update the IT 

architecture which is entered into the 

Commission's Enterprise Architecture 

through the use of the Metis tool. 

Percentage of approved IT initiatives with 

supporting documentation per the 

Commission's CPIC process 

100% 

Target Met. The CPIC Investment Review 

Board approved 21 projects of which all 21 

went through the CPIC review process. 

Therefore, 100% of the approved IT projects 

went through the CPIC approval process. 

Establish earned value management schedule 

and cost performance indices for all major 

projects 

Complete by September 30, 2006 

Target Met. As implemented in FERC 

Capability Maturity Model Integration level 2 

(CMMI-2) policies and procedures, EVM is 

used to measure progress on major projects 

and major phases of multi-phased projects. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

93

FY 2006 

Performance Measurement Performance Target Data Source 

Develop and implement automated Business 

plan Complete by September 30, 2006 

Target Not Met. Though Software 

development for Phase 2 of the Activity and 

Tracking Management System (ATMS) has 

been completed, the target was not met 

because extensive testing of Phase 2 due to 

integration with other eGovernment systems 

will push deployment to February 2007. 

Though Phase 2 will support business plan 

reporting that is integrated with the HR time 

reporting system (MAPS), that reporting will 

depend on requisite information (e.g. proper 

use of time reporting codes, MAPS data, etc.) 

input by FERC's program and other offices. 

And since full automation will require 

Commission-wide deployment (Phases 3 and 

4) and additional reporting requirements 

definition and software development, the 

target will not be fully met until ATMS Phase 

4. Since manual processes for business 

planning will remain in place until they are 

replaced by an automated Business plan, 

there is no impact on operations or program 

performance. 

Percentage of qualified-procurements that are 

performance-based 100% 

Target Met. Of the 676 actions awarded 

during the period, a total of 78 actions were 

identified as performance-based. All 78 of 

these actions were awarded under 

performance-based contracts. 

Percentage of qualified-procurements that are 

advertised on-line 100% 

Target Met. Of the 676 actions awarded 

during the period, a total of 4 actions 

qualified for on-line advertisement, and all 4 

actions were advertised on-line with Federal 

Business Opportunities (fedbizops.) 

Percentage of total procurement dollars 

awarded to small, women-owned, and 

minority businesses 

5% increase over FY 2005 

Target Met. In FY 2005, the Commission 

awarded 22% of its total procurement dollars 

to small, women-owned and minority 

businesses. In FY 2006, the Commission 

awarded 34% of its total procurement dollars 

to these entities which constitutes a 12% 

increase over the FY 2005 performance level. 

Percentage of invoices paid via electronic 

funds transfer 99% 

Target Met. During FY 2006, the 

Commission paid 99% of its invoices via 

EFT. 

Percentage of payments in compliance with 

Prompt Payment Act deadlines 100% 

Target Not Met. During FY 2006, the 

Commission processed 94% of its payments 

in compliance with Prompt Payment Act 

deadlines. The primary cause was the 

Commission's acceptance of invoices during 

the FY 2006 Continuing Resolution (October 

- December) which could not be paid. Since 

January, the Commission has processed 98% 

of its payments in compliance with Prompt 

Payment Act deadlines. 

Percentage of payments made without error 100% 

Target Not Met. During FY 2006, the 

Commission made 99% of its payments 

without error. The failure to meet this target 

did not have an adverse affect on overall 

program performance. 

Timeliness of collecting accounts receivable 90% of invoices collected by due dates 

Target Met. During FY 2006, the 

Commission collected 94% of its invoice 

balances by the stated due date. 

Complete and accurate annual financial 

statements 

Unqualified opinion on audited financial 

statements Target Met 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

94 

FY 2006 

Performance Measurement Performance Target Data Source 

Percentage of filings capable of being 

received electronically 95% 

Target Not Met. 42% of all document types 

are currently capable of being received 

electronically. Meeting the target has been 

delayed because of two primary factors: 

1) The Commission has been responsive to 

industry feedback regarding the most 

efficient way for tariff filings to be filed 

electronically and has extended the 

prototyping and discussion of proposed 

solutions; and 

2) The Commission has delayed to 

improve infrastructure (supporting 

database, storage, server, and disaster 

recovery infrastructure). 

To mitigate the effects of the delay the 

Commission encourages the filing of noneFiling-capable documents on digital media 

(CD, DVD); routinely accepts non-eFilingcapable documents electronically on an 

exception basis when requested by filers; and 

performs OCR and full-text indexing on 

documents submitted on paper. In addition, 

the Commission is actively planning and 

gathering requirements for an eFiling system 

release that will meet the target. Given the 

mitigation efforts, there have been no 

negative impacts on program performance or 

operations. 

Percentage of Commission orders approved 

during open meetings issued 99% within 5 business days 

Target Met. 321 agenda items were approved 

in open meeting during the rating period. All 

but 2 were issued within 5 business days. 

Percentage of Commission orders approved 

by notational vote issued 99% within 1 business day of adoption date 

Target Not Met. 933 agenda items were 

approved through the notational process. 40 

items were issued after one day of adoption 

date; these were all issued on the following 

business day. Percentage is 96%. This is a 

remarkable accomplishment considering the 

significant increase in notational items during 

this appraisal period and the target did not 

change from last appraisal period. This did 

not have a negative impact on operations. 

Percentage of legally required notices issued 95% within 3 business days of being posted 

on eLibrary 

Target Not Met. This measure includes 

notices for electric rate filings prepared by the 

Secretary; notices for other industries are 

prepared by program offices. Number of 

electric rate notices during the appraisal 

period is 2,667. Of these, 632, or 76%, were 

issued three days after filing was posted on 

eLibrary. This target was not met due to staff 

shortages. However, no Commission 

proceeding or action was negatively affected. 

Percentage of press releases on important 

agency actions issued 95% within 1 hour of order being issued 

Target Met. In FY 2006, 90 out of 92 or 

97.8% of press releases were issued within 1 

hour of action being taken. 

Percentage of responses to public inquiries  60% within 3 business days 

 100% within 5 business days 

Target Met. In FY 2006, OEA responded to 

approximately 2,800 public inquiries. Over 

90% of these inquiries were responded to 

within 1 business day of receipt. All public 

inquiries were responded to within 5 business 

days. 

Percentage of agency actions and timesensitive content posted on the FERC Internet 

Website 

95% within 1 hour of order being issued 

Target Met. In FY 2006, 3,159 of 3,201 or 

98.7% of important agency actions were 

posted on the Commission’s internet website 

within 1 hour of issuance. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

95

FY 2006 

Performance Measurement Performance Target Data Source 

Timeliness of notices to NEB (Canada) and 

CRE (Mexico) of FERC activities pursuant to 

Memorandum of Understanding 

Within 1 business day 

Target Met. The NEB and CRE are routinely 

notified of significant Commission activities 

that impact their respective countries through 

emails with summaries and links to these 

orders within one business day of the order 

being issued.

Timeliness of regional hearings or 

conferences email notifications sent to State 

officials and Governors 

Within 1 business day No regional hearings/conferences took place 

during the review period. 

Submit FY 2005 Annual Report to Congress Complete by June 30, 2006 

Target Not Met. FY 2005 Annual Report has 

not been sent to Congress. The target was not 

met due to a significant change in the format 

of the Annual Report to improve the overall 

product by making it more targeted to the 

audience groups. The decision to re-format 

the Annual Report to track the agency’s 

Strategic Plan resulted in a significantly more 

time-consuming review process and an 

extended period for obtaining the content for 

the Annual Report. There were no negative 

impacts on operations. The process for the 

FY 2006 Annual Report has already been 

initiated and the expectation is that the target 

will be met. 

Submit FY 2005 international exchange and 

training activity data to U.S. Department of 

State 

Complete by April 1, 2006 

Target Met. FY 2005 international exchange 

and training activity data was sent to the U.S. 

Department of State in March 2006. 

Submit FY 2005 FOIA Annual Report to 

Department of Justice Complete by February 1, 2006 

Target Met. FY 2005 FOIA Annual Report 

to the Department of Justice was submitted 

on January 27, 2006. 

Submit FY 2005 Information Quality Agency 

Annual Report to OMB Complete by January 1, 2006 

Target Met. FY 2005 Information Quality 

Agency Annual Report was submitted to 

OMB prior to January 1, 2006. 

FY 2007 

Performance Measurement Performance Target Data Source 

Develop and implement a competency-based 

requirements framework Complete by January 31, 2007 

Target Met. Framework developed in 

January, 2007. Implementation 

ongoing with mainstream occupations. 

Percentage of women and/or minorities among all 

positions Increase over FY 2006 

Target Met. FY 2007 percentage for 

women was 52.9%. Increased 

percentage over FY06 by 8% (FY 2006 

- 44.5%). 

FY 2007 percentage for minority 

women was 20.6%. Increased 

percentage over FY06 by 1.1% (FY 

2006 – 19.5%). 

Improve retention ratio of entry-level new hires Increase FY 2006 ratio by 10% 

Target Met. Retention ration for FY 

2007 hires was 100% (FY 2006 

percentage was 95%). 

Implement workforce planning tools Complete by September 30, 2007 

Target Met. Implemented Hiring Gap 

Spreadsheet and Personnel Status 

Report. Continue to prepare and publish 

the Human Capital Plan. 

Timeliness of submitting Fair Act Inventory to 

OMB per Circular A-76 requirements Complete by June 30, 2007 Target Met. FY 2007 FAIR Act was submitted to OMB 6/30/07. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

96 

FY 2007 

Performance Measurement Performance Target Data Source 

Customers are satisfied with the use of 

eGovernment initiatives to interact with FERC 90% 

Target Met. The customer satisfaction 

level for FERC eGov Services exceeds 

96% based on data collected from the 

external users surveys. 

Federal FTE time is mapped through systems to 

workload and strategic goals and objectives Fully implemented by September 30, 2007 

Target Not met. With the deployment 

of ATMS Phase 2 in February FY07 the 

following offices are fully able to map 

workload to strategic goals and 

objectives using an enterprise-wide 

system: OAL, OED, OGC, and OEMR 

(now OEMR and OER). For the 

following offices, some divisions are 

able to map workload to strategic goals 

and objectives using an enterprise-wide 

system while other divisions can map 

workload to strategic goals and 

objectives but must continue to use 

legacy, departmental, and/or cuff 

systems: OEA, OALJ, OE, OEP. 

Mapping of workload in terms of FTE 

time requires both a revision of budget 

reporting codes and development of a 

report that correlates information in the 

enterprise-wide workload tracking 

system with information in the FERC 

HR system. The complete 

implementation of all ATMS phases 

will take longer than planned due to 

contract staffing reductions from 

funding shortages under a yearlong FY 

2007 continuing resolution and because 

the effort was underestimated. A 

detailed plan for ATMS Phase 3 is 

currently under review and the target 

may not be fully met in FY 2008. 

Align Commission costs to strategic objectives Complete by September 2007 

Target Met. The FY2009 Budget 

Request has been structured to map 

both FTEs and the Commissions costs 

to strategic objectives and was 

completed on September 10, 2007. 

Percentage of vendor payments made by 

established due dates 99% 

Target Not Met. During FY07, the 

Commission processed 97.1% (1897 

out of 1953) of payments in compliance 

with Prompt Payment Act deadlines. 

37 of the 56 late payments did not result 

in interest begin paid to the vendor. 

The failure to meet this target did not 

have an adverse affect on overall 

program performance. 

Percentage of payments made without error 100% 

Target Not Met. During FY 2007, the 

Commission made 99.7% of its 

payments without error. The failure to 

meet this target did not have an adverse 

affect on overall program performance. 

Timeliness of collecting accounts receivable that 

offset the Commission’s appropriation 95% collected by due dates 

Target met. During FY 2007, the 

Commission collected 99.5% of its 

offsetting accounts receivable by their 

stated due date. 

Financial statements that present fairly, in all 

material aspects, the Commission’s financial 

position 

Unqualified audit opinion on FY 2006 

financial statements 

Target Met. Unqualified opinion 

received 

November, 2006 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

97

FY 2007 

Performance Measurement Performance Target Data Source 

Percentage of transactional case assessments or 

convening sessions concluded 75% within 20 days 

Target Met. DRS completed 100% (41 

out of 41) transactional case 

assessments or convening sessions 

within 20 days after being referred to 

the DRS. 

Percentage of transactional ADR processes agreed 

to by parties concluded 

75% within 120 days total (convening and 

process) 

Target Met. Dispute Resolution Services 

completed 34 transactional processes or 

cases, both environmental and nonenvironmental in which parties agreed 

to pursue an ADR process. Of these, 31 

were completed within 120 days after 

being referred to the DRS (91%). 

Number of ADR requests and referrals to the 

Dispute Resolution Service Increase number over FY 2004 (base year) 

Target Met. DRS addressed a total of 

79 new requests or ongoing cases from a 

previous fiscal year involving gas, 

electric, hydropower, and pipelines. 

This represents a 46.3 % increase over 

FY2004, in which there were 54 new 

requests or ongoing cases. 

Favorable Dispute Resolution Service customer 

satisfaction for casework and outreach 80% customer satisfaction rate 

Target Met. The DRS requests 

customer feedback through evaluations 

of casework processes, and training 

sessions. For casework concluded in 

FY2007, all participants who completed 

evaluations gave the DRS staff 

favorable comments, for a satisfaction 

rate of 100%. 

In training sessions during FY2007, 

participant ranking for Course Content 

averaged 90%, Course Materials 

averaged 88%, and Instructor 

Effectiveness averaged 94%. 

Number of outreach events (e.g., trainings, 

workshops, and presentations) to promote the use 

of dispute resolution skills 

Increase number over FY 2004 (base year) 

Target Met. There were 65 active 

outreach projects in FY2007. This 

represents a 1.6 % increase over 2004 in 

which there were 64 projects. Note: 

The projects were both internal and 

external to FERC. 

Ensure timely and effective communication to all 

stakeholders 

 Issue 95% of press releases for 

important agency actions on the same 

day as the underlining action 

 Post 95% of important agency actions 

on the same day as the underlining 

action 

 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 

Targets Met. 

 In FY 2007, 80 out of 80 or 100% 

of press releases were issued 

within 1 hour of action being 

taken. 

 In FY 2007, 3816 of 3820 or 99% 

of important agency actions were 

posted on the Commission’s 

internet website within 1 hour of 

issuance 

 In FY 2007, the office provided an 

initial and complete response to 

2272 of 2791 or 81% of public 

inquiries at the time of receipt. 

 In FY 2007, the Commission 

developed the following webpages 

in the assigned timeframe: Market 

Oversight, Electric Competition, 

OATT Reform, Blanket 

Certificates, Transmission 

Investment, Pipeline, Hydrokinetic 

Energy, MOU, Policy Statement, 

Hydro licensing, Annual Charges, 

Career, Media form, and FOIA 

form. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

98 

FY 2007 

Performance Measurement Performance Target Data Source 

Enhance communication with National and 

International groups 

 Respond to 50% of Official 

Congressional correspondence within 10 

business days 

 Provide email notification of significant 

Commission actions to Congress within 

1 to 2 business days of the underlining 

action along with briefing offers where 

appropriate 

 Provide timely and effective briefings to 

members of Congress 

 Provide email notification of significant 

Commission actions to effected State 

regulatory agencies within 1 to 2 

business days of the underlining action 

 Accommodate visitation requests from 

delegations from various countries and 

organizations 

Targets Met. 

 130 out of 205 pieces of official 

Congressional correspondence, or 

63%, were responded to within 10 

business days. 

 In FY 2007, email notifications to 

members of Congress were sent 

out on 340 significant Commission 

actions within 1 to 2 business days 

of the underlining action. Briefing 

offers were made on appropriate 

items. 

 In FY 2007, the Commission 

provided 38 briefings to members 

of Congress. 

 In FY 2007, 178 email 

notifications to State regulatory 

agencies were sent out on 

significant Commission actions 

within 1 to 2 business days of the 

underlining action. 

 In FY 2007, OEA hosted 71 visits 

from 75 countries and 

organizations. 

Percentage of cases set for hearing that achieve 

partial or complete consensual agreement 75% 

Target Met. 88% of cases set for 

hearing achieved partial or complete 

consensual agreement. 

Percentage of cases set for hearing completed 

according to the established schedule 

 75% of Track I cases in 29.5 weeks 

 75% of Track II cases in 47 weeks 

 75% of Track III cases in 63 weeks 

Targets Met. 

 There were no Track I cases. 

 80% of Track II cases in 47 weeks. 

 88% of Track III cases in 63 weeks. 

Issue well-reasoned initial decisions, based on 

facts, law, and Commission policies which are 

upheld in whole or in part 

80% of initial decisions upheld in whole or in 

part 

Target Met. 91% of initial decisions 

were upheld in whole or in part. 

FY 2008 

Performance Measure Performance Target Results 

Number of ADR requests and referrals addressed 

by the Dispute Resolution Service Increase number over FY 2004 

Target Met. The DRS addressed 57 

new ADR requests and referrals; 3 

more than FY 2004. 

Percentage of mediated or facilitated case that 

achieve partial or complete consensual agreement 75% 

Target Met. The DRS had a 90% (18 

out of 20) success rate in assisting 

parties achieve consensual resolution of 

cases. 

Favorable Dispute Resolution Service customer 

satisfaction for casework and outreach 80% customer satisfaction rate 

Target Met. In trainings and workshops 

during the period, participant ranking 

for Course Content averaged 89% and 

Instructor Effectiveness 93%. For 

casework, all participants who 

completed evaluations gave the DRS 

staff favorable comments, for a 

satisfaction rate of 100%. 

Number of outreach events (e.g., trainings, 

workshops, and presentations) to promote the use 

of dispute resolution skills 

Increase number over FY 2004 

Target Not Met. The DRS delivered or 

assisted with 37 outreach events, equal 

to the number in FY 2004. The DRS 

met all of the outreach needs and there 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

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FY 2008 

Performance Measure Performance Target Results 

were no negative program impacts.

Of ADR processes concluded, percentage that 

resulted in savings of time and/or money over 

traditional processes 

75% 

Target Met. 100% of participants who 

completed a survey indicated that the 

use of ADR resulted in savings of time 

and/or money over traditional 

processes. 

Percentage of cases set for hearing that achieve 

partial or complete consensual agreement 75% Target Met. 91% 

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. 95% (71 out of 75) 

press releases were issued within 

1 hour of action being taken. 

 Target Met. 100% (4,004 out of 

4,005) important and timesensitive actions were posted 

within 1 hour of action being 

taken by the Commission. 

 Target Met. 74% (3,833 out of 

5,149) of inquiries were provided 

a complete response at the time of 

the receipt of the request. 

 Target met. 19 new web pages 

and/or sections on FERC.gov 

were developed within the 

assigned timeframe. 

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 meeting requests within 3 

business days of rendering a decision 

 Target Met. 100% (61 out of 61) 

briefings were held and (318 out 

of 318) congressional inquiries 

were responded to within 10 

business days of the request. 

 Target Met. Email notifications 

concerning 292 significant 

Commission actions were sent 

within 1 to 2 business days of the 

underlying action. 

 Target Met. 61 timely and 

effective briefings with members 

of Congress were held. Briefings 

on the top priority issues of cyber 

security; market manipulation; 

and transmission line siting were 

held within appropriate time 

frames. State officials were also 

briefed on these issues. 

 Target Met. Staff provided 19 

notifications of outreach efforts 

within 3 business days, and within 

at least 30 days’ notice of public 

meetings for two additional 

outreach items. 

 Target Met. 82% (40 out of 47) 

of requests were responded to 

within 3 business days. 

Maintain an effective recruiting program 

 Recruit at least 3 students each from at 

least 4 target universities 

 Increase new hires from recruiting 

program by 10 over FY 2007 

 Hire 20% of interns into permanent 

positions 

 Target Met. A total of 19 

students were recruited from 4 

target universities. 

 Target Met. 58 new hires in FY 

2008; 41 more than FY 2007 

 Target Met. 36% (4 out of 11) of 

summer interns from FY 2007 

hired in FY 2008. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

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FY 2008 

Performance Measure Performance Target Results 

Implement employee development programs 

 Launch leadership development 

program 

 Develop competency based training for 

mainstream occupations 

 Target Met. The LDP was 

launched in October 2007. 15 

candidates will graduate from 

program in February 2009. 

 Target Met. A competency 

assessment tool for competency 

based training needs analysis was 

launched in September 2008 and 

will be included in the FY 2009 

Central Training Fund 

prioritization. 

Maintain an effective performance management 

system 

 All employees receive training annually 

 Provide feedback to managers to ensure 

ratings reflect meaningful distinctions 

between performance 

 High achievers are rewarded 

appropriately 

 Target Met. FERC NonSupervisory Employees received 

training in August and September 

2008. 

 Target Met. All FERC managers 

received feedback on ratings and 

training on meaningful 

distinctions during the 

corresponding rating cycle of their 

program office. 

 Target Met. Report analysis 

shows that higher monetary 

awards are commensurate with 

higher performance ratings. 

Ensure appropriate representation of women and 

minorities at all levels within the organization Increase over FY 2007 baseline 

 Target Not Met. 

 Women. The representation of 

women was 45.5% in FY 2008, a 

7.4% decrease from FY 2007. 

 Minorities. Overall, the 

representation of minorities was 

32.7% in FY 2008, a 0.5% 

decrease from FY 2007. 

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. Unqualified opinion 

received November 6, 2008. 

 Target Met. Unqualified 

assurance asserted over internal 

controls September 12, 2008. 

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 

performanced-based 

 Target Met. 31% of total 

procurement dollars awarded to 

small, women-owned and 

minority businesses. 

 Target met. 100% of all qualified 

procurements were performance 

based awards. 

Full implementation of FERC’s eGovernment 

initiatives Completed by September 30, 2008 

Target Met. eFiling 7.0 was completed 

by September 30, 2008. eFiling will 

increase the number of documents that 

can be submitted and provides a secure 

process for submitting Privileged and 

CEII materials. Also, ATMS 3.0 

successfully developed the 

infrastructure to capture the tracking of 

all docketed and non-docketed work. 

Customer satisfaction with eGov 

services was over 90%. 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

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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.) 

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 time-sensitive 

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 

▪ 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 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

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FY 2009 

Performance Measure Performance Target Results 

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 

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 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 
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

103

FY 2009 

Performance Measure Performance Target Results 

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. 

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 

performanced-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. 
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Appendix A 

Organizational Chart 
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Federal Energy Re

FY 2009 Performance and A
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Appendix B 

Strategic Plan 
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Federal Energy Regulatory Commission

Strategic Plan FY 2006 – FY 2011

Mission

Regulate and oversee energy industries in the economic, environmental, 

and safety interests of the American public.

Vision

Abundant, reliable energy in a fair competitive market.

Guiding Principles that Strengthen the Commission’s 

Overall Performance

To fulfi ll its Mission, the Federal Energy Regulatory Commission commits to...

Organizational Excellence

Use resources effi ciently and effectively to achieve its strategic priorities.

Due Process & Transparency

Complete regulatory proceedings in an open and fair manner, consistent with 

established regulations.

Regulatory Certainty

Provide regulatory certainty through consistent Commission approaches and actions.

Stakeholder Involvement

Ensure that interested parties are informed and provided an appropriate 

opportunity to participate in Commission proceedings.

Timeliness

Act on regulatory matters in an expeditious manner.
Goal 1: Energy Infrastructure

Promote the Development of a Strong Energy Infrastructure

Objective A: Stimulate Appropriate Infrastructure Development

 • Resolve regulatory and other challenges to needed development

 • Encourage investment and effect timely cost recovery

Objective B: Maintain a Reliable and Safe Infrastructure

 • Assure reliability of interstate transmission grid

 • Protect safety at LNG and hydropower facilities

 • Incorporate environmental considerations into Commission decisions

Goal 2: Competitive Markets

Support Competitive Markets

Objective A: Develop Rules that Encourage Fair and Effi cient Competitive Markets

 • Employ best practices in market rules

 • Reduce barriers to trade between markets and among regions

Objective B: Prevent Accumulation and Exercise of Market Power

 • Assure proposed mergers and acquisitions are in the public interest

 • Address market power in jurisdictional wholesale markets

Goal 3: Enforcement

Prevent Market Manipulation

Objective A: Provide Vigilant Oversight

 • Identify and remedy problems with structure and operations in energy markets

Objective B: Provide Firm but Fair Enforcement

 • Establish clear and fair processes

 • Conduct investigations promptly and impose penalties where appropriate

 • Encourage self-policing and -reporting of violations
Federal Energy Regulatory Commission 

FY 2009 Performance and Accountability Report 

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Appendix C 

Statutory Authority
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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 1935 and 2005

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) 
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Appendix D 

Acronyms
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Acronym Full Description 

Bcf Billion Cubic Feet 

CIP Critical Infrastructure Protection 

DOE Department of Energy 

ERO Electric Reliability Organization 

FERC Federal Energy Regulatory Commission 

FPA Federal Power Act 

FPC Federal Power Commission 

FTE Full Time Equivalent 

FY Fiscal Year 

ISO Independent Transmission System Operator 

LNG Liquefied Natural Gas 

MW megawatt 

NERC North American Electric Reliability Corporation 

NRC U.S. Nuclear Regulatory Commission 

OCS Outer Continental Shelf 

OMB Office of Management and Budget 

RTO Regional Transmission Organization 

SPP Southwest Power Pool