FY 2010 

PERFORMANCE AND 

ACCOUNTABILITY REPORT 

FEDERAL ENERGY REGULATORY COMMISSION 

NOVEMBER 2010 

Jon Wellinghoff 

Chairman 

FEDERAL ENERGY REGULATORY COMMISSION 

WASHINGTON. DC 20426 

OFFICE OF THE CHA IRMAN 

Letter from Chairman Wellinghoff 

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

Performance and Accountability Report for fiscal year 2010. This report was prepared in 

accordance with the guidelines set forth in Office of Management and Budget Circular A136 and Section 230 of Circular A-II. 

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

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

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

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

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 report is complete and reliable and describes the results achieved 

towards our goals. 

Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

 

TABLE OF CONTENTS 

STRATEGIC PLAN OVERVIEW i

MANAGEMENT’S DISCUSSION AND ANALYSIS 1

Introduction 3 

Organizational Structure 3 

Strategic Plan Overview 5 

Business Plan 8 

Full Cost Recovery 8 

Program Performance Overview 8 

Financial Performance Overview 22 

Controls, Systems, and Legal Compliance 26 

Possible Future Effects of Existing Events and Conditions 28 

Limitations of the Financial Statements 28 

Improper Payments Information Act Reporting 29 

FINANCIAL SECTION 31

Message from the Chief Financial Officer 33 

Independent Auditors’ Report 35 

Balance Sheets 39 

Statements of Net Cost 40 

Statements of Changes in Net Position 41 

Statements in Budgetary Resources 42 

Statements of Custodial Acitivty 44 

Notes to Financial Statements 45 

PERFORMANCE REPORT 63 

Introduction 65 

Historic Performance Measurement Data: 

Energy Infrastructure: FYs 2006 - 2009 66 

Historic Performance Measurement Data: 

Competitive Markets: FYs 2006 - 2009 80 

Historic Performance Measurement Data: 

Enforcement: FYs 2006 - 2009 90 

Historic Performance Measurement Data: 

Supporting Initiatives: FYs 2006 – 2009 97 

Current Performance Measurement Data: 

Just and Reasonable Rates, Terms, and Conditions: FY 2010 109 

Current Performance Measurement Data: 

Infrastructure: FY 2010 112 

APPENDIX A: STATUTORY AUTHORITY 115

APPENDIX B: ACRONYM 119 

THE FEDERAL ENERGY REGULATORY COMMISSION’S MISSION

RELIABLE, EFFICIENT, AND SUSTAINABLE ENERGY FOR CONSUMERS

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

at a reasonable cost through appropriate regulatory and market means. 

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

Ensure that rates, terms and conditions are just, reasonable and 

not unduly discriminatory or preferential. 

Objective 1.1: Regulatory and Market Means. 

Ensure implementation of appropriate regulatory and 

market means for establishing rates. 

Objective 1.2: Oversight and Enforcement. 

Increase compliance with the Commission’s rules and 

deter market manipulation. 

GOAL 2: INFRASTRUCTURE. 

Promote the development of safe, reliable and efficient infrastructure 

that serves the public interest. 

Objective 2.1: Infrastructure Development and Siting. 

Increase efficient infrastructure consistent with demand. 

Objective 2.2: Safety. 

Minimize risk to the public. 

Objective 2.3: Reliability. 

Maintain the reliability of the electric transmission grid. 

i 

Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

 

Page 1 

Management’s 

Discussion and Analysis 

(Unaudited) 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report

Page 2 

This page intentionally left blank. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

 

Page 3 

Introduction 

In accordance with the guidelines set forth in the 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, FERC) fiscal year (FY) 2010 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 2010. 

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 2010. Approximately 1,452 full time equivalents (FTEs) 

carried out the Commission’s mission in FY 2010 using a budget of $298.0 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 eleven 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 on December 6, 2009. The Commission 

established its eleventh office, the Office of the Secretary, formerly a division within the Office 

of the Executive Director. An organizational chart, including a brief description of each office, 

is included below. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report

Page 4 

Office of Administrative Law Judges (ALJ): 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 (OAL): 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 (DRS) is located within OAL and provides neutral, third-party assistance using 

alternative dispute resolution (ADR) 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 (OER): 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 (OEMR):Deals with matters involving markets, tariffs 

and rates relating to electric, natural gas, and oil pipeline facilities and services. 

Office of Energy Policy and Innovation (OEPI): 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. 

Office of Energy Projects (OEP): Fosters economic and environmental benefits for the Nation 

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

and liquefied natural gas (LNG) facilities), and electric transmission projects that are in the 

public interest. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

 

Page 5 

Office of Enforcement (OE): 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 External Affairs (OEA): Responsible for all external communications with the public 

and media for the Commission. 

Office of the Executive Director (OED): Provides administrative support services to the 

Commission including human resources (HR), procurement, information technology (IT), 

organizational management, financial, and logistic functions. 

Office of the General Counsel (OGC): 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. 

Office of the Secretary (OSEC): Serves as the official focal point through which all filings are 

made for proceedings before the Commission. 

Strategic Plan Overview 

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

vitally on energy. The Commission has an important role in the development of a reliable 

energy infrastructure and in the protection of wholesale customers from unjust and unreasonable 

rates and undue discrimination and preference. The Commission draws its authority from 

various statutes and laws, which are listed in Appendix A. 

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

will serve as a guide through fiscal year 2014. As part of the update process, the Commission 

realigned its resources and activities with its key statutory authorities. This resulted in an 

updated mission statement and two strategic goals. 

The Commission’s mission is to assist consumers in obtaining reliable, efficient and sustainable 

energy services at a reasonable cost through appropriate regulatory and market means. To 

accomplish this, the Commission focuses on two goals: 

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

are just, reasonable and not unduly discriminatory or preferential. 

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

conditions for wholesale sales and transmission of electric energy and natural gas are just and 

reasonable and not unduly discriminatory or preferential. The Commission uses a combination of 

regulatory and market means to achieve this goal, including reviewing tariffs and making rate 

determinations. Oversight of the energy markets and enforcement of the associated laws, rules 

and regulations are essential complements to the regulatory and market means. The Commission 

uses a balanced approach in its oversight and enforcement efforts, including: educating affected 

entities about market rules and other regulations; promoting internal compliance programs; 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 6 

employing robust audit and investigation programs; and, where appropriate, exercising the 

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

2. Infrastructure: Promote the development of safe, reliable and efficient energy infrastructure 

that serves the public interest. 

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

that operates efficiently, safely and reliably. The Commission has siting authority that includes 

licensing non-federal hydropower projects, certificating interstate natural gas pipelines and 

storage projects, authorizing LNG facilities, and, in certain circumstances, permitting electric 

transmission lines. The Commission relies primarily on physical inspections of facilities to 

ensure the safety of LNG and non-federal hydropower facilities throughout the entire life cycle 

of a project: design review, construction and operation. Further, the Commission promotes 

efficient operation of energy infrastructure by encouraging, for example, the use of new 

technologies, and other procedures that may enhance economic efficiency. 

Lastly, the Commission has an important role in maintaining the reliability of the electric 

transmission grid. The Commission established, and now oversees, the Electric Reliability 

Organization (ERO). The ERO develops and enforces mandatory reliability and cyber security 

standards, subject to the review and approval by the Commission. The Commission also 

monitors system disturbances to identify near and long-term issues affecting generation and 

transmission. 

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 Commission’s two core functions are to ensure that wholesale electric and natural gas rates 

are just and reasonable and not unduly discriminatory or preferential and that energy 

infrastructure is developed in the public interest. To achieve these goals, the Commission will 

employ several strategies which are summarized below. 

The organized wholesale electric markets represent one area in which the Commission relies on 

regulatory and market means to ensure that rates are just and reasonable and not unduly 

discriminatory or preferential. The Commission will establish rules that enhance competition by 

allowing non-discriminatory market access to all supply-side and demand-side energy resources. 

Improving the competitiveness of these markets is important because it encourages new entry 

among supply-side and demand-side resources, spurs innovation and deployment of new 

technologies, improves operating performance, and exerts downward pressure on cost. Notable 

benefits also stem from more broadly diversifying the fuels used to generate electricity. In 

executing its authority, the Commission will take steps to ensure a level playing field in 

jurisdictional markets for all types of resources. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 7 

In an effort to increase compliance with rules and to deter market manipulation, the Commission 

will promote internal compliance programs and self-reporting of violations by regulated entities. 

The Commission has provided guidance on elements of an effective compliance program and 

will review compliance programs as part of routine compliance audits. In addition, the 

Commission will further this strategy by giving companies credit against settlements if a robust 

compliance program was in effect when the violation occurred. In cases where a company is 

given a reduced civil penalty, the settlement agreement should be made known to the industry in 

order to encourage others to adopt and implement robust and thorough compliance programs. 

In addition to the regulation and oversight of energy markets, the Commission aims to increase 

efficient infrastructure consistent with demand. The Commission is employing the use of 

incentive rates, the adoption of smart grid standards and other transmission-related activities to 

try to increase the number of electric transmission projects that incorporate advanced 

technologies. The Commission also supports an open and transparent electric transmission 

planning process in order to increase infrastructure efficiency. 

A significant portion of the Commission’s role in energy infrastructure development stems from 

siting authority that includes licensing non-federal hydropower projects, certificating interstate 

natural gas pipelines and storage projects, authorizing LNG facilities, and, in certain 

circumstances, permitting electric transmission lines. Throughout all of these processes, the 

Commission’s goal is to expedite application processing without compromising environmental 

responsibilities or public participation. Reconciling these interests, however, remains a 

significant challenge. The Commission believes that issues are best addressed openly and early 

in the application process. The Commission encourages, and sometimes requires, project 

proponents to engage in early involvement of state and federal agencies, Indian tribes, affected 

landowners and the public. 

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

safety 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. The Commission is working to develop and incorporate risk-informed decision 

making into the dam safety program. This transition could have several positive impacts on the 

Commission’s dam safety program including, among others, a better understanding of potential 

failure modes, a better understanding of the consequences of potential failure modes on life, 

health and property, and an improved ability to evaluate risk reduction alternatives. 

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 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. The Commission will 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 8 

also join or lead incident and alleged violation analyses and/or investigations following bulkpower 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. 

Business Plan 

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

Strategic Plan’s goals and objectives. This increases internal accountability by enabling 

management to link individual office responsibility and budget resources to Commission 

activities. The Business Plan is an iterative process that helps to identify which activities are 

leading the Commission towards achieving particular goals and objectives. During FY 2010, 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 several of 

the Commission’s key achievements during FY 2010. The performance measures and targets 

were selected from the Commission’s FYs 2009 – 2014 Strategic Plan. A complete list of the 

Commission’s performance measurement data for fiscal years 2006 through 2010 is included in 

the Performance Report section of this report. 

Performance Measurement Data for Strategic Goal 1: 

Just and Reasonable Rates, Terms and Conditions 

Ensure that Rates, Terms and Conditions are Just, Reasonable, and 

Not Unduly Discriminatory or Preferential. 

Objective 1.1: Regulatory and Market Means: Ensure implementation of appropriate 

regulatory and market means for establishing rates. 

Strategy: Establish rules that enhance competition by allowing non-discriminatory market 

access to all supply-side and demand-side energy resources 

Long Term Strategic Performance Goal

Further barriers to participation by demand resources in organized wholesale electric markets 

will be identified and eliminated. 

FY 2010 Performance Target

Evaluate Independent System Operator/Regional Transmission Organization (ISO/RTO) filings 

on barriers to demand response. Complete and submit National Action Plan on Demand 

Response 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 9 

FY 2011 Performance Target

As appropriate, issue a NOPR on further steps to eliminate barriers to demand resources, 

including steps identified in National Action Plan on Demand Response 

FY 2012 Performance Target 

As appropriate, issue Final Rule on further steps to eliminate barriers to demand resources 

FY 2010 Result: Target Met. 

Active participation by customers in organized wholesale energy markets through demand 

reductions helps to increase competition in those markets. To reduce barriers to this 

participation, the Commission issued Order No. 719 in 2008, which directed RTOs and ISOs 

operating organized wholesale electric markets to identify barriers to comparable treatment of 

demand response resources. In FY 2010, the Commission issued orders evaluating 6 filings 

submitted by RTOs and ISOs to identify barriers to demand response and to comply with other 

requirements of Order No. 719. 

Commission staff also completed and published on June 17, 2010, a National Action Plan on 

Demand Response setting forth strategies and activities to identify requirements for technical 

assistance to states, to design and identify requirements for implementation of a national 

communications program, and to develop or identify analytical tools and materials for use by 

customers, states, and demand response providers. 

Long Term Strategic Performance Goal

Best practices for demand response products and procedures will be explored and, as 

appropriate, implemented in organized wholesale electric markets. 

FY 2010 Performance Target

Perform outreach with ISOs/RTOs, demand response providers, and others; as appropriate, issue 

NOPR on best practices 

FY 2011 Performance Target

As appropriate, issue Final Rule on best practices 

FY 2012 Performance Target

Implement Final Rule as appropriate 

FY 2010 Result: Target Met. 

Commission staff engaged in outreach between October 1, 2009 and January 31, 2010 with 

RTOs/ISOs, demand response providers, retail industry, technology providers and state 

regulators regarding practices affecting demand response products and procedures. One of the 

best practices identified concerned the level of compensation paid to demand response resources 

participating in wholesale electricity markets. On March 18, 2010, the Commission issued a 

notice of proposed rulemaking (NOPR) entitled Demand Response Compensation in Wholesale 

Electric Markets (Docket No. RM10-17). Demand response, acting as a resource in organized 

wholesale electric markets, can create opportunities to improve the functioning and 

competitiveness of such markets by reducing the need to dispatch higher-priced generation, 

thereby lowering clearing prices, and by supporting system reliability and addressing resource 

adequacy. The Commission is therefore examining whether existing compensation mechanisms 

for demand response resources must be reformed in order to provide stable competitive pricing 

structures in the organized wholesale electric markets. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 10 

Long Term Strategic Performance Goal

All resources technically capable of providing needed ancillary services will have the 

opportunity to provide those services. 

FY 2010 Performance Target

Perform outreach to identify the need for modification or creation of additional ancillary 

services, and issue NOPR, as appropriate 

FY 2011 Performance Target

As appropriate, issue Final Rule on ancillary service products and procedures 

FY 2012 Performance Target

Implement Final Rule as appropriate 

FY 2010 Result: Target Not Met. 

Commission staff engaged in outreach between October 1, 2009 and June 30, 2010 with 

RTOs/ISOs, storage and other technology providers, industrial customers, and research 

organizations regarding the need for modification or creation of additional ancillary services to 

ensure all resources technically capable of providing those products have the opportunity to do 

so. On January 21, 2010, the Commission issued a Notice of Inquiry seeking public comment on 

the extent to which reforms are necessary to ensure that wholesale electricity tariffs, including 

those governing ancillary services, remain just, reasonable and not unduly discriminatory 

(Integration of Variable Energy Resources, Docket No. RM10-11-000). The Commission 

received over 2,000 pages of comments from industry, state and federal agencies, and consumer 

interests, which are being analyzed by Commission staff to determine the need to modify 

existing, or create additional, ancillary services through a NOPR. Because of the large number 

of comments, more time is needed to develop specific proposals to include in a NOPR. Work on 

a NOPR proposal will continue into the FY 2011. Although the Commission did not issue the 

NOPR in FY 2010, it will not have a negative impact on achieving subsequent targets or overall 

program performance. 

Long Term Strategic Performance Goal

Market reforms which will allow renewable resources to compete fairly will be explored and, as 

appropriate, implemented in Commission-jurisdictional markets. 

FY 2010 Performance Target

Perform outreach with industry and issue staff white paper identifying potential need for and 

types of market reforms 

FY 2011 Performance Target

Issue a NOI/NOPR on market reforms, if appropriate 

FY 2012 Performance Target

Issue Final Rule on market reforms, if appropriate 

FY 2010 Result: Target Met and Exceeded. 

The Commission staff conducted outreach between October 1, 2009 and June 30, 2010 with 

RTOs/ISOs, storage and other technology providers, industrial customers, and research 

organizations regarding the need for modification to grid operations and organized wholesale 

markets to integrate renewable resources, such as wind generation. After the outreach was 

completed, the Commission determined a Notice of Inquiry could be issued in lieu of a staff 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 11 

white paper and still achieve the same purpose. The Commission issued a Notice of Inquiry, 

which was the FY 2011 Performance Target, ahead of schedule on January 21, 2010. This NOI 

is seeking comment on the integration of variable energy (renewable) resources (Integration of 

Variable Energy Resources, Docket No. RM10-11-000). Commission staff is now reviewing 

over 2,000 pages of comments. 

Strategy: Promote operational efficiency in wholesale markets through the exploration and 

encouragement of the use of software and hardware that will optimize market operations 

Long Term Strategic Performance Goal

By FY 2014, efficiency in market operations will be enhanced through deployment of new 

software and optimization of hardware. 

FY 2010 Performance Target

Internal release of staff white paper; industry outreach, including technical conferences, to 

identify best practices 

FY 2011 Performance Target: 

Pursue voluntary adoption of best practices by RTOs/ISOs; if appropriate, issue Policy Statement 

and/or NOI/NOPR 

FY 2012 Performance Target: 

Follow-up workshops on best practices implementation; issue Final Rule, if relevant 

FY 2010 Result: Target Met. 

In FY 2010, Commission staff explored opportunities to enhance operational efficiency in 

jurisdictional markets through the deployment of new modeling software and optimization of 

market operations. By improving efficiency in the use of computational methods and identifying 

ways in which the operation of utility assets can be optimized, the Commission seeks to enhance 

operational efficiency to the benefit of all public utility customers. Staff held three conferences 

in June 2010 to gather information from the public regarding modeling and software 

enhancements and, on July 29, 2010, delivered a white paper to the Commission’s Chief of Staff 

outlining opportunities for further work on this project. 

Strategy: Develop and implement a common set of performance metrics for markets within 

and outside of ISOs/RTOs 

Long Term Strategic Performance Goal

By FY 2014, the performance of markets within and outside of ISOs/RTOs will be measured 

using a common set of metrics. 

FY 2010 Performance Target

Explore and develop appropriate operational and financial metrics for ISOs/RTOs 

FY 2011 Performance Target: 

Explore and develop appropriate operational and financial metrics for non-ISO/RTO regions 

FY 2012 Performance Target: 

Establish appropriate common metrics between ISOs/RTOs and non-ISOs/RTOs 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 12 

FY 2010 Result: Target Not Met. 

During FY 2010, Commission staff worked with RTO and ISO staff, stakeholders and other 

experts to develop standardized metrics to track the performance of RTOs and ISOs and 

transactions in the markets they administer. Proposed metrics were made publicly available for 

comment in February 2010, and Commission staff has reviewed comments submitted on the 

proposed metrics. While the final metrics were not issued during FY 2010, this had no adverse 

impact on the program. The Commission expects to release the final metrics in early FY 2011 

and to collect data from the RTOs and ISOs shortly thereafter. These final metrics will measure 

performance with respect to a number of areas, including: reliability standards, customer costs, 

demand response market penetration, and transmission investment. 

Strategy: Promote broad participation, including the use of alternative dispute resolution 

services, in the Commission’s processes and procedures 

Long Term Strategic Performance Goal

By FY 2014, appropriate filings and issues will employ alternative dispute resolution and 

collaborative processes first. 

FY 2010 Performance Target

Develop guidelines/tariff provisions to apply to filings/issues amenable to consensual resolution 

FY 2011 Performance Target

Implement rules setting forth guidelines/tariff provisions and initiate pilot programs 

FY 2012 Performance Target 

Conduct study to determine if pilot program should be expanded 

FY 2010 Result: Target Not Met 

During FY 2010, staff reviewed and categorized two years of recent Commission orders which 

set cases for consensual resolution/hearing. Internal dialogue with senior staff and program 

managers provided additional understanding into the types of cases which may be amenable to 

consensual resolution. Through these efforts, a baseline of the types of cases and issues that the 

Commission traditionally sets for consensual resolution/hearing was established. 

Following this internal communication, staff identified a list of approximately 30 external 

stakeholders who could provide valuable insight to the guideline development process. 

Acquiring the input from these external stakeholders has taken significantly more time than 

anticipated because the number of external parties is much higher than originally planned. The 

meetings that have occurred to date have been very productive and the Commission staff will 

continue to meet with the remaining parties throughout the first and second quarters of FY 2011. 

Although the Commission did not finalize the guidelines in FY 2010, it will not have a negative 

impact on overall program performance. The Commission staff will work diligently in FY 2011 

to incorporate into the guidelines the external parties’ feedback. Further, the Commission will 

make every effort to initiate the pilot in the second half of FY 2011 in accordance with the 

established target date. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 13 

Other Noteworthy Accomplishments in Objective 1.1: Regulatory and Market Means

 In FY 2010 the Commission began implementing Order No. 714, which requires all public 

utilities, natural gas pipelines, oil pipelines and power administrations to file their tariffs, 

tariff revisions and rate change applications electronically. The adoption of electronic tariff 

filing provides the framework for a more efficient document processing system as well as 

providing a user-friendly interface from which the Commission, its staff, and the public may 

retrieve and review tariffs. The Commission has received over 1,000 electronic baseline 

tariff filings during FY 2010. 

 In September 2010, the Commission issued a final rule which will make electricity markets 

more efficient by permanently lifting the price cap for all reassignments of firm transmission 

capacity by wholesale electric transmission customers. The final rule comes after the 

Commission reviewed comments on an April NOPR and based on a staff report that 

summarized the findings of a 30-month study of the competitive effects of removing the 

price cap for reassigned electric transmission capacity. The report found that in markets in 

which pricing differentials were available, the reassignment prices comported with pricing 

differentials between those markets, indicating that resale prices reflect market fundamentals 

rather than the exercise of market power. 

Objective 1.2: Oversight and Enforcement: Increase compliance with the Commission’s rules 

and deter market manipulation. 

Strategy: Promote internal compliance programs and self-reporting of violations 

Long Term Strategic Performance Goal

By FY 2014, 70 percent of company compliance programs reviewed on Commission audits for 

the audit focus areas are found to be adequate to demonstrate a culture of compliance. 

FY 2010 Performance Target

10% 

FY 2011 Performance Target 

25% 

FY 2012 Performance Target 

40% 

FY 2010 Result: Target Met. 

50% (2 out of 4) of compliance programs were found to demonstrate an adequate culture of 

compliance. 

Because this performance measure is new for FY 2010, only audits that were started and 

completed in FY 2010 were included. In determining which audits would be included in the 

universe for this measure, the Commission developed general guidelines. In order to maintain 

consistency over time, only large, multi-scope audits will be included in this measure’s universe. 

Small, single-scope audits would not have the scope and breadth to make a determination on a 

company’s overall culture of compliance. Of the four audits that met these criteria, two were 

found to demonstrate an adequate culture of compliance. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 14 

The Commission’s strategy of encouraging the development of compliance programs in order to 

increase companies’ compliance with its requirements is showing early success. Although few 

companies were included in the calculation of this result, the Commission has already observed 

that a number of companies have begun reviewing their compliance programs and taking 

corrective action prior to the start of an audit and prior to the issuance of an audit report. 

Long Term Strategic Performance Goal

70 percent of compliance programs reviewed through investigations that involve a penalty are 

found to be sufficiently robust to merit credit to reduce the penalty. 

FY 2010 Performance Target

10% 

FY 2011 Performance Target 

25% 

FY 2012 Performance Target 

40% 

FY 2010 Result: Target Met. 

During FY 2010 the Commission completed 77 matters involving violations subject to penalties, 

including review of company compliance programs as they relate to the violations examined. In 

26 percent of these cases (20 out of 77) the Commission found compliance programs in place at 

the time of the violation to be sufficiently robust as to merit credit to reduce or eliminate 

penalties. 

Strategy: Use a risk-based approach to plan and prioritize audits of jurisdictional 

companies 

Long Term Strategic Performance Goal

By FY 2014, 80 percent of the Commission’s audit program will be planned using a risk-based 

approach. 

FY 2010 Performance Target

40% 

FY 2011 Performance Target 

60% 

FY 2012 Performance Target 

80% 

FY 2010 Result: Target Met. 55% (52 out of 94) audits planned using a risk-based approach. 

In FY 2010, the Commission completed 25 audits of public utilities, natural gas pipeline 

companies, and regional reliability entities. Of the 25 audits completed, 12 were planned using a 

risk based approach. The remaining 13 audits began prior to FY 2010 when the risk-based 

approach was established as a requirement. These 25 audits resulted in 210 recommendations 

for corrective action which resulted in $1.7 million in refunds and $2.3 million in recoveries 

from accounting and billing adjustments. The success of these audits is a direct result of the 

implementation of the Commission’s strategy to increase emphasis on risk-based audit planning. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 15 

By emphasizing audit selection in the highest risk areas and of the highest risk companies, the 

Commission is maximizing the efficiency of its audit resources. 

Other Noteworthy Accomplishments in Objective 1.2: Oversight and Enforcement

 In FY 2010 the Commission issued a Policy Statement on Penalty Guidelines that adopts a 

formula-based approach to determining penalties, modeled on the United States Sentencing 

Guidelines for fining organizations. The Commission made certain modifications to the 

Sentencing Guidelines to adapt them to violations of the Commission’s statutes, rules, and 

orders. The Penalty Guidelines were suspended while the Commission accepted public 

comments, which included requests for changes in the application of the Guidelines. In 

September 2010 the Commission reissued the Penalty Guidelines with modifications made in 

response to the comments the Commission received. The Penalty Guidelines will apply 

prospectively and bring increased fairness, consistency, and transparency to the 

determination of civil penalties. 

 The Commission issued an order to bring further transparency to ongoing investigations by 

authorizing issuance of a preliminary notice of violations when staff has completed its 

investigation and is prepared to recommend that sanctions be sought for the conduct 

investigated. The notice will inform the public of the identity of the subject of the 

investigation, the conduct involved, and the rules or requirements allegedly violated. 

 In FY 2010, the Commission transferred dispute-related calls pertaining to the construction 

and operation of jurisdictional infrastructure from the enforcement hotline to the dispute 

resolution helpline. By transferring the responsibility of these calls to the dispute resolution 

service, with its expertise in conflict resolution, and allowing the enforcement staff to focus 

on their priorities, the Commission will ensure an effective allocation of its resources that 

will better serve the public interest. Since assuming this responsibility on May 1, 2010, the 

Commission’s dispute resolution service has fielded 120 inquiries. Approximately one-third 

of these inquiries have been resolved; one-third have been referred to a more appropriate 

Commission office or other federal or state authority; and the remaining one-third of these 

inquiries are still active. 

Performance Measurement Data for Strategic Goal 2: 

Infrastructure 

Promote Development of Safe, Reliable, and Efficient Infrastructure 

that Serves the Public Interest. 

Objective 2.1: Infrastructure Development and Siting: Increase efficient infrastructure 

consistent with demand. 

Strategy: Encourage new electric transmission facilities that advance efficient transmission 

system operation 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 16 

Long Term Strategic Performance Goal

By FY 2014, 50 percent of all new transmission projects will incorporate advanced technologies. 

FY 2010 Performance Target

5% 

FY 2011 Performance Target

10% 

FY 2012 Performance Target 

20% 

FY 2010 Result: Target Met. 9 percent (1 out of 11) 

In FY 2010, the Commission acted on 11 requests for incentives or negotiated rate authority for 

new transmission. Of those 11 requests, the Commission found one project which included 

advanced transmission technologies. 

Strategy: Support electric transmission planning through the use of open and transparent 

processes that include analysis and consideration on a comparable basis of proposed 

solutions involving any of generation, transmission, and demand resources 

Long Term Strategic Performance Goal

By FY 2014, all public utilities will implement open and transparent transmission planning 

processes that meet the strategy. 

FY 2010 Performance Target

Assessment of transmission planning process best practices, including the potential for 

collaborative decision making, and issue NOPR, as appropriate (Assessment includes how 

options to transmission are considered.) 

FY 2011 Performance Target 

As appropriate, issue Final Rule on transmission planning process best practices 

FY 2012 Performance Target 

Implement Final Rule as appropriate 

FY 2010 Result: Target Met. 

To ensure that customers have access to power at reasonable rates, adequate and reliable 

infrastructure must be in place. To promote the development of that infrastructure, the 

Commission protects against unduly discriminatory treatment by requiring transmission 

providers to have open, transparent planning processes that consider customer needs, including 

public policy goals, such as renewable energy, and alternative solutions to meeting those needs. 

Increasing interest in accessing remote renewable generation resources and concerns over lack of 

transmission planning that spans multiple utility systems to support regional power flows 

prompted the Commission to seek comment from the public in October 2009 regarding the rules 

for transmission planning and cost allocation. Upon review of more than 3,000 pages of 

comments and significant staff-led outreach, staff prepared recommendations for Commission 

consideration that, ultimately, led to issuance of a NOPR on June 17, 2010 (Transmission 

Planning and Cost Allocation by Transmission Owning and Operating Public Utilities, Docket 

No. RM10-23-000). The NOPR proposes to require that public utility transmission providers 

develop transmission plans on a regional basis, develop mechanisms for sharing the costs of 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 17 

transmission lines that result from the plan, and improve coordination among neighboring 

transmission planning regions. 

Strategy: Promote efficient design and operation of natural gas facilities 

Long Term Strategic Performance Goal

By FY 2014, 100 percent of jurisdictional natural gas companies will be examined for feasibility 

of installing waste heat recovery systems. 

FY 2010 Performance Target

20% 

FY 2011 Performance Target

40% 

FY 2012 Performance Target 

60% 

FY 2010 Result: Target Met. 

In FY 2010, the Commission continued its efforts to explore ways to improve the efficiency in 

the design and operation of jurisdictional natural gas facilities. In FY 2010, Commission staff 

examined 44 (20%) of the Commission’s jurisdictional natural gas companies for feasibility of 

installing waste heat recovery systems. 

Other Noteworthy Accomplishments in Objective 2.1: Infrastructure Development and 

Siting

 In May 2010, the Commission conducted a technical conference on Energy Efficiency of 

Natural Gas Infrastructure and Operations. This conference brought together Commission 

staff, pipeline operators, customers, and developers to discuss energy efficiency technology. 

The conference provided a forum for the various parties to discuss their concerns and 

provide insight into the efficiency measures that are available and are currently viable for use 

in the industry. The result has been a continuous dialog with project sponsors that results in 

more openness and transparency in the certification process, which ensures due process for 

all effected parties. 

 The Commission continued in FY 2010 to foster the orderly and environmentally sound 

development of hydrokinetic technologies through various initiatives and activities. The 

Commission signed two memorandums of understanding including: one with Governor of 

California and Directors of state agencies to coordinate the procedures and schedules to 

review hydrokinetic projects off the coast of California; and another with the U.S. Coast 

Guard to coordinate the processing of a large number of proposed hydrokinetic projects in 

the Mississippi River. The Commission is serving as a team co-lead, with the Department of 

Energy and the Bureau of Ocean Energy Management, on the International Energy AgencyOcean Energy Systems Annex IV, which is gathering worldwide data on environmental 

effects, mitigation, and monitoring for hydrokinetic projects. Lastly, the Commission is 

processing two license applications and over 50 prefiling applications for hydrokinetic 

projects representing 6,300 megawatt. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 18 

These activities promote the potential of this new technology by reducing barriers to 

development through coordination with key stakeholders. In addition, the Commission 

organized a technical conference to explore issues related to licensing and exempting from 

licensing small hydropower projects. In response to comments, the Commission developed a 

user-friendly, web-based roadmap on selecting a project site, determining if a project is 

jurisdictional, selecting a FERC process, consulting with stakeholders, and preparing 

license/exemption applications using fill-in-the-blank templates. The website highlights 

projects which were licensed or exempted from licensing in less than one year and the 

reasons for their success. The launch of the website was followed by a webinar and regional 

outreach. The Commission also signed an unprecedented memorandum of understanding 

with the state of Colorado that will streamline procedures for authorizing small hydropower 

projects in Colorado. 

 The lack of adequate transmission facilities creates a significant barrier to trade between 

markets and among regions. To encourage greater investment in the Nation’s transmission 

infrastructure, Congress directed the Commission in the Energy Policy Act of 2005 to adopt 

rules making incentive rate treatments available for electric transmission infrastructure 

investments that meet certain criteria, for example, if a proposed transmission project 

alleviates congestion. Incentive rate treatments granted pursuant to those rules include, for 

example, recovery of increased return on equity, recovery of 100 percent of construction 

work in progress, and recovery of prudently incurred costs for projects that are abandoned 

for reasons beyond the utility’s control. In FY 2010, the Commission approved rate 

incentives for 10 projects, totaling 396 miles of new transmission and a $2.95 billion 

investment in infrastructure. 

Objective 2.2: Safety: Minimize risk to the public. 

Strategy: Incorporate risk-informed decision making (RIDM) into the dam safety program 

Long Term Strategic Performance Goal

By FY 2014, risk-informed decision making will be incorporated into the FERC dam safety 

program. 

FY 2010 Performance Target

Develop action plan 

FY 2011 Performance Target

Portfolio Risk Assessment of FERC dam inventory 

FY 2012 Performance Target 

Determine RIDM is consistent with regulatory process 

FY 2010 Result: Target Met. 

Risk assessment has been used in the safety assessment of many high consequence industries 

since the 1960s. Risk-informed decision-making has the potential to improve the Commission’s 

dam safety program in several ways. It will provide the capability to assess non-traditional 

failure modes, levelize risk across different loading conditions, focus inspections and 

surveillance on the specific potential failure modes and monitoring programs at the project and 

guide remediation projects to provide an overall reduced level of risk at Commission dams. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 19 

In FY 2010, the Commission developed and finalized its RIDM Action Plan which outlines the 

work efforts required over the next four years to incorporate RIDM into its dam safety program. 

In developing the plan, the Commission staff drew upon information sharing meetings with the 

Department of Interior – Bureau of Reclamation (Reclamation) and the U.S. Army Corps of 

Engineers (USACE). While writing its plan, Commission staff received training from 

Reclamation and examined their RIDM process. The Commission staff also reviewed USACE’s 

draft RIDM guidance documents and the methodology developed by New South Wales, 

Australia for their RIDM regulatory process. The Commission staff also attended RIDMspecific training during various dam safety conferences and workshops and reviewed other 

published documents related to RIDM. 

Objective 2.3: Reliability: Maintain the reliability of the electric transmission grid. 

Strategy: Process reliability standards in a timely manner 

Long Term Strategic Performance Goal

By FY 2014, proposed Reliability Standards will be processed in a timely manner at least 80 

percent of the time. 

FY 2010 Performance Target

75% 

FY 2011 Performance Target

75% 

FY 2012 Performance Target 

75% 

FY 2010 Result: Target Met. 

96% of filed reliability standards have orders issued within 18 months. 

In FY 2010, the Commission issued several noteworthy Orders affecting reliability. On 

September 16, 2010, the Commission issued a final rule on the Modeling, Data, and Analysis 

series of Reliability Standards related to Available Transfer Capability (Docket No. RD10-5-

000). This rule established enforceable reliability standards related to the calculation of available 

transmission capability, as directed in Order Nos. 890 and 693. 

On March 18, 2010, the Commission issued a final rule on the Transmission Relay Loadability 

Reliability Standard (Docket No. RM08-13-000). This rule implemented a Blackout Report 

recommendation by establishing relay setting requirements for load-responsive phase protection 

relays to ensure that those relays reliably detect and protect the electric network from all fault 

conditions, but do not limit transmission loadability or interfere with system operators’ actions. 

On March 31, 2010, the Commission issued a final rule on Critical Infrastructure Protection 

Reliability Standards, Version 3 (Docket No. RD09-7-002). This order closed several gaps in 

the cyber security standards previously identified by the Commission and established the 

implementation plan and schedule for Versions 2 and 3 of the cyber security standards. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 20 

Strategy: Monitor, audit and enforce reliability standards 

Long Term Strategic Performance Goal

By FY 2014, Reliability Standards will be enforced effectively, resulting in a reduction of the 

frequency of repeat violations by at least 10 percent. 

FY 2010 Performance Target

Establish tracking process 

FY 2011 Performance Target

Track violations per entity 

FY 2012 Performance Target 

Track violations per entity 

FY 2010 Result: Target Met. 

The Commission developed in FY 2010 a database to track violations from Notices of Penalty 

filed by the ERO. As part of this process, the Commission determined the measurable 

parameters (e.g., what constitutes a repeat violation over a designated time period) to facilitate a 

determination as to the observed rate of repeat violations of the Reliability Standards. 

Strategy: Identify reliability parameters that affect national goals of reducing carbon and 

increasing the penetration of renewable energy resources on the electric transmission grid 

Long Term Strategic Performance Goal

By FY 2014, reliability parameters that could affect national goals of reducing carbon and 

increasing the penetration of renewable energy resources on the electric transmission grid will be 

finalized. 

FY 2010 Performance Target

Establish contacts and develop research, data collection and reporting processes 

FY 2011 Performance Target

Track studies and identify or propose reliability parameters. Perform initial analysis to assess if 

they are feasible for the bulk power system 

FY 2012 Performance Target 

Track studies and identify or propose reliability parameters. Perform expanded analysis to assess 

if they are feasible for the bulk power system 

FY 2010 Result: Target Met. 

In FY 2010, Commission staff established approximately 100 industry contacts across the nation 

and internationally. The Commission has led and participated in the efforts to conduct technical 

studies on Frequency Response, Electromagnetic Pulse and the potential impact of early Coal 

Plant retirements due to potential regulations. The Frequency Response study may provide the 

basis for a frequency response metric to address the integration of renewable energy sources to 

the bulk power system. The Electromagnetic Pulse effort analyzed and studied electromagnetic 

threats and how they relate to the reliable operation of the U.S. bulk power system. In addition, 

Commission staff performed a cursory analysis of the potential retirement of coal fired 

generation and its effect on system reliability. This study provided information on the resulting 

reduction of capacity margins and reliability issues caused by the shut down of the at-risk coal 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 21 

units from possible environmental regulations. The research the Commission staff has done on 

complex and highly technical studies provide guidance and direction in establishing the 

parameters to protect and preserve reliability as industry integrates large amounts of renewable 

generation into the bulk power system. 

Other Noteworthy Accomplishment in Objective 2.3: Reliability

 Commission staff provided technical analysis for the Florida Blackout Part 1b investigation 

(Docket No. IN08-5-000). As a result, there was a settlement with Florida Power and Light 

Company including a $25 million penalty plus mitigation measures and compliance 

improvements and a $350,000 penalty for the Florida Reliability Coordinating Council. 

These were the first civil penalties under the Commission’s FPA section 215 reliability 

authority. 

*********** 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 22 

Financial Performance Overview 

As of September 30, 2010, 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 2010 new budget authority was $298.0 million. This 

represents an increase in new budget authority of approximately $24.6 million over FY 2009. 

Additional funds available to obligate in FY 2010 were $8.4 million from prior-year unobligated 

appropriations and $1.7 million of prior-year obligations that were subsequently de-obligated in 

the current year. The sum of all funds available to obligate in FY 2010 was $308.1 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 Commission did not assess those fees 

during the course of FY 2010. A number of licensees have raised issues regarding the fee basis 

of the FY 2009 assessment that resulted in significant increases to their respective charges. The 

Commission is currently weighing these issues against its mandated obligation to collect these 

fees. Therefore, the Commission did not request an appropriation from Congress for FY 2010. 

In FY 2011, the Commission plans to request an appropriation from Congress covering lands 

fees covering FY 2010 and FY 2011. 

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 2010. 

Costs by Function. The Commission incurred costs of $302.6 million in FY 2010, which was 

an increase of $14.2 million over FY 2009. Approximately 74 percent of costs were used for 

salaries and benefits. The remaining 26 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 $20.6 million over 2009 while the net 

affect on the other cost categories was a decrease of $6.4 million. 

Costs by Function (millions)

Costs FY 2010 FY 2009 

Salaries and Benefits $223.2 $202.6 

Travel/Transportation 3.6 3.7 

Rent/Comm/ Utilities 23.1 23.1 

Contract Support 47.2 44.8 

Printing/Supplies/Other 5.5 14.2 

Total Costs $302.6 $288.4 

Audit Results. The Commission received an unqualified audit opinion on its FY 2010 financial 

statements. This was the seventeenth consecutive year the Commission has received an 

unqualified opinion. For FY 2010, no material weaknesses were identified by the audit. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 23 

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 $111.9 million as of September 30, 2010. This is 

an increase of $20.6 million from September 30, 2009. The assets reported in the Commission's 

Balance Sheet are summarized in the Asset Summary table. 

Assets Summary (millions)

Assets FY 2010 FY 2009 

Fund Balance with Treasury $64.7 $63.5 

Accounts Receivable, net 39.4 23.0 

Property and Equipment, net 7.8 4.8 

Total Assets $111.9 $91.3 

The Fund Balance with Treasury represents the Commission's largest asset of $64.7 million as of 

September 30, 2010, an increase of $1.2 million from the FY 2009 balance. This balance 

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

until final disposition is determined. 

The Accounts Receivable, net has a balance of $39.4 million as of September 30, 2010. 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 $16.4 million net 

increase is primarily due to the accrual of unbilled land fees. 

The Property and Equipment, net was $7.8 million as of September 30, 2010, an increase of $3 

million from FY 2009. The balance is comprised of the net value of the Commission’s 

equipment, furniture, leasehold improvements, and computer hardware and software. The $3 

million net increase is primarily due to updating existing telecommunications equipment and 

furniture. 

The Commission's liabilities were $89.1 million as of September 30, 2010. The Liabilities 

Summary table shows an increase in total liabilities of $13.9 million from FY 2009. The 

increase is primarily the result of the accrual of unbilled FY 2010 land fees that were not 

assessed during the FY, for which the collections are due to other entities. The $89.1 million 

balance consists primarily of accrued expenditures for payroll, benefits and operating expenses. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 24 

 Liabilities Summary (millions) 

Liabilities FY 2010 FY 2009 

Accounts Payable $14.6 $17.8 

Federal Employee Benefits 10.7 10.2 

Other Liabilities 63.8 47.2 

Total Liabilities $89.1 $75.2 

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

position was approximately $22.8 million as of September 30, 2010. The increase in net position 

in FY 2010 compared to FY 2009 is the result of the amount of adjusted annual charges assessed 

by the Commission, higher unexpended appropriations due to unfilled staffing needs and capital 

purchases made which impacted the cumulative results of operations. 

 Net Position Summary (millions)

Position FY 2010 FY 2009 

Unexpended Appropriations $31.9 $20.1 

Cumulative Results of Operations (9.1) (4.0) 

Total Net Position $22.8 $16.1 

Analysis of the Statement of Net Cost 

The Statement of Net Cost presents the net cost of the Commission's two 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 2010 FY 2009 

Just and Reasonable Rates, 

Terms, and Conditions $0 $0 

Infrastructure 12,573 (4,394) 

Net Cost of Operations $12,573 $(4,394)
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 25 

The Commission's net cost of operations for FY 2010 was $12,573. 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 2010, the Commission adjusted the impact of a prior-year 

revenue accrual, which resulted in costs being higher than revenue. 

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

will serve as a guide through fiscal year 2014. As part of the update process, the Commission 

realigned its resources and activities with its key statutory authorities. This resulted in an 

updated mission statement and two strategic goals. 

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 $6.7 

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

higher unexpended appropriations due to unfilled staffing needs and capital purchases made 

which impacted the cumulative results of operations. 

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 2010, the Commission had 

budgetary resources available of $308.1 million, the majority of which was derived from new 

spending authority. This represents an increase of $13.9 million over FY 2009 budgetary 

resources available of $294.2 million. The unobligated budget authority available at September 

30, 2010 was $11.6 million, which is an increase of $4.6 million from the FY 2009 amount of $7 

million. 

The status of budgetary resources includes obligations incurred of $296.3 million, or 96.2% 

percent of funds available. Similarly, FY 2009 obligations incurred were $285.9 million or 

97.1% percent of funds available. Total net outlays for FY 2010 were $(42.7) million, which 

represents a $4.7 million decrease from FY 2009 net outlays of $(47.5) million. The decrease 

from last year is a result of approximately $11.4 million in higher gross outlays due to an 

increased appropriation and a reduction in distributed offsetting receipts in FY 2010 compared to 

FY 2009. 

 

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 2010, the Commission 

reported $54.5 million in custodial revenue as of September 30, 2010 compared to $69 million in 

FY 2009. The majority of the decrease over FY 2009 is due to fewer civil penalties billed in FY 

2010 to entities under the Commission’s regulation. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 26 

Controls, Systems, and Legal Compliance 

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

 Federal Managers' Financial Integrity Act of 1982; 

 Revised OMB A-123 

 Federal Financial Management Improvement Act of 1996; 

 Prompt Payment Act; 

 Debt Collection Improvement Act of 1996; and 

Integrity Act Statement 

During Fiscal Year 2010, the Commission focused it efforts on assisting consumers in obtaining 

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

market means. In fulfilling this mission, the commission has pursued two primary goals. We have worked 

diligently to ensure that rates, terms and conditions for wholesale sales and transmission of electric energy 

and natural gas are just, reasonable and not unduly discriminatory or preferential. Moreover, we continue 

to promote the development of safe, reliable, and efficient energy infrastructure that serves the public 

interest. 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 2010 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, 2010. 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, 2010, are operating effectively. 

 

Jon Wellinghoff 

Chairman 

Federal Energy Regulatory Commission 

September 2010
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 27 

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 2010 Integrity Act Results 

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

30, 2010. 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 2010 OMB A-123 Results 

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

September 30, 2010. 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 2010 Performance and Accountability Report 

Page 28 

Federal Financial Management Improvement Act 

The Federal Financial Management Improvement Act of 1996 (FFMIA) 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 FFMIA requires the Chairman 

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

develop remediation plans for systems that do not comply. Our review of the Commission’s 

financial management system in FY 2010 demonstrated that we fully comply with this act. 

FY 2010 Improvement Act Results 

As of September 30, 2010, 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, 

2010, the Commission made 90% of its payments, that were subject to the Prompt Payment Act, 

on-time. The Commission incurred $9,811.51 in interest penalties in FY 2010, which was an 

increase compared to the FY 2009 amount of $3,864. The agency made 98.4% of its vendor 

payments electronically in FY 2010. 

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, 2010, delinquent debt was $0.5 million, which is 

approximately .002 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. 

Possible Future Effects of Existing Events and Conditions 

As of September 30, 2010, 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 $51,000. 

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 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 29 

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, 2010 and it has 

processed 99% of its payments without error. The Commission found only 93 erroneous 

payments out of 8,250 total payments. The value of those erroneous payments totaled $356,409 

out of total payments of $87,236,553 for fiscal year 2010. 

*********** 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 30 

This page intentionally left blank. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 31 

Financial Section 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 32 

This page intentionally left blank. 


KPMG LLP 

2001 M Street, NW 

Washington, DC 20036-3389 

KPMG LLP is a Delaware limited liability partnership, 

the U.S. member firm of KPMG International Cooperative 

(“KPMG International”), a Swiss entity. 

Independent Auditors’ Report 

The Federal Energy Regulatory Commission and the 

Inspector General, United States Department of Energy: 

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

Commission) as of September 30, 2010 and 2009, and the related statements of net cost, changes in net 

position, budgetary resources, and custodial activity (hereinafter referred to as “financial statements”) for 

the years then ended. The objective of our audits was to express an opinion on the fair presentation of 

these financial statements. In connection with our fiscal year 2010 audit, we also considered the 

Commission’s internal control over financial reporting and tested the Commission’s compliance with 

certain provisions of applicable laws, regulations, and contracts that could have a direct and material 

effect on these financial statements. 

Summary 

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

statements as of and for the years ended September 30, 2010 and 2009, are presented fairly, in all material 

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

Our consideration of internal control over financial reporting was not designed to identify all deficiencies 

in the internal control over financial reporting that might be deficiencies, significant deficiencies, or 

material weaknesses. We did not identify any deficiencies 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, 2010 and 2009, and the related statements of net cost, changes in net position, budgetary 

resources, and custodial activity for the years then ended. 
Federal Energy Regulatory Commission 

November 5, 2010 

Page 2 of 4 

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, 2010 and 2009, 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. 

The information in the Management’s Discussion and Analysis is not a required part of the financial 

statements, but is supplementary information required by U.S. generally accepted accounting principles. 

We have applied certain limited procedures, which consisted principally of inquiries of management 

regarding the methods of measurement and presentation of this information. However, we did not audit 

this information and, accordingly, we express no opinion on it. 

Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a 

whole. The information in the Performance Report and the Appendices are presented for purposes of 

additional analysis and are not required as part of the financial statements. This information has not been 

subjected to auditing procedures and, accordingly, we express no opinion on it. 

Internal Control Over Financial Reporting 

A deficiency in internal control exists when the design or operation of a control does not allow 

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

detect and correct misstatements on a timely basis. A material weakness is a deficiency, or 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. 

Our consideration of the internal control over financial reporting was for the limited purpose described in 

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

control over financial reporting that might be deficiencies, significant deficiencies, or material 

weaknesses. In our fiscal year 2010 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 dated November 5, 2010. 

Compliance and Other Matters 

The results of our 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.

* * * * * * * 
Federal Energy Regulatory Commission 

November 5, 2010 

Page 3 of 4 

Responsibilities 

Management’s Responsibilities. Management is responsible for the financial statements; establishing 

and maintaining effective internal control; and complying with laws, regulations, and contracts applicable 

to the Commission. 

Auditors’ Responsibilities. Our responsibility is to express an opinion on the fiscal year 2010 and 2009 

financial statements of the Commission based on our audits. We conducted our audits in accordance with 

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

financial audits contained in Government Auditing Standards, issued by the Comptroller General of the 

United States; and OMB Bulletin No. 07-04. Those standards and OMB Bulletin No. 07-04 require that 

we plan and perform the audits to obtain reasonable assurance about whether the financial statements are 

free of material misstatement. An audit includes consideration of internal control over financial reporting 

as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose 

of expressing an opinion on the effectiveness of the Commission’s internal control over financial 

reporting. Accordingly, we express no such opinion. 

An audit also includes: 

 Examining, on a test basis, evidence supporting the amounts and disclosures in the financial 

statements; 

 Assessing the accounting principles used and significant estimates made by management; and 

 Evaluating the overall financial statement presentation. 

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

In planning and performing our fiscal year 2010 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, but not for the purpose of expressing 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. Furthermore, we did not test 

all controls relevant to operating objectives as broadly defined by the Federal Managers’ Financial 

Integrity Act of 1982. 

As part of obtaining reasonable assurance about whether the Commission’s fiscal year 2010 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. 

______________________________ 
Federal Energy Regulatory Commission 

November 5, 2010 

Page 4 of 4 

This report is intended solely for the information and use of the Commission’s management, the 

Department of Energy’s Office of Inspector General, 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 5, 2010 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 39 

2010 2009

Assets (note 3):

Intragovernmental:

Fund balances with Treasury (note 4) $ 64,730,901 $ 63,517,742 

Accounts receivable (note 5) 3,372,794 13,399 

Total intragovernmental 68,103,695 63,531,141 

Accounts receivable, net (note 5) 36,011,946 23,038,373 

Property and equipment, net (note 6) 7,823,851 4,767,683 

Total assets $ 111,939,492 $ 91,337,197 

Liabilities:

Intragovernmental:

Accounts payable $ 2,418,114 $ 2,983,283 

Other (note 7):

Accrued payroll and benefits 1,835,569 1,661,681

Resources transferable to Treasury and other

Federal entities 18,456,550 6,891,089

Miscellaneous receipts transferable to Treasury - 7,193

Workers' compensation payable (note 9) 581,363 540,739

Total intragovernmental 23,291,596 12,083,985

Accounts payable 12,196,686 14,777,141

Other (note 7):

Accrued payroll and benefits 8,899,401 8,529,456 

Collections due to states 5,693,477 33,603 

Commitments and contingencies (note 11) 51,000 78,000 

Revenue collected under protest 6,219,698 5,918,701 

Refunds and other amounts due 2,526,041 3,256,910 

Accrued leave (note 9) 13,175,159 14,184,567 

Resources transferable to other entities from 

disgorged funds 16,108,453 17,366,517 

Total liabilities $ 89,170,919 $ 75,219,471 

Net Position:

Unexpended appropriations - other funds $ 31,897,786 20,135,673 

Cumulative results of operations - other funds (9,129,213) (4,017,948) 

Total net position $ 22,768,573 $ 16,117,725 

Total liabilities and net position $ 111,939,492 $ 91,337,197 

The accompanying notes are an integral part of these statements.

(in dollars)

FEDERAL ENERGY REGULATORY COMMISSION

Balance Sheets

As of September 30, 2010 and 2009
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 40 

Program costs: 2010 2009

 Regulation:

 Just and Reasonable Rates, Terms,

 and Conditions (note 14): 

 Gross costs $ 167,223,279 $ 168,566,947 

 Less: earned revenue 167,223,279 168,566,947 

 Net program costs $ - $ - 

 Infrastructure (note 14):

 Gross costs $ 135,410,599 $ 119,848,878 

 Less: earned revenue 135,398,026 119,853,272 

 Net program costs $ 12,573 $ (4,394) 

 Total 

 Gross costs $ 302,633,878 $ 288,415,825 

 Less: earned revenue 302,621,305 288,420,219 

 Net Cost of Operations $ 12,573 $ (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, 2010 and 2009

(in dollars)

 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 41 

 FEDERAL ENERGY REGULATORY COMMISSION

Statements of Changes in Net Position

For the Years Ended September 30, 2010 and 2009

(in dollars)

2010 2009

Cumulative results of operations:

Beginning balances $ (4,017,948) $ (10,107,477) 

Budgetary financing sources:

Appropriations used 286,237,887 277,910,671 

Other financing sources (Non-Exchange):

Transfers – out to Treasury without reimbursement (307,502,383) (284,451,789) 

Imputed financing from costs absorbed by others (note 10) 16,165,804 12,626,253 

Total Financing Sources (5,098,692) 6,085,135 

Net cost of operations (12,573) 4,394 

Net change (5,111,265) 6,089,529 

Cumulative results of operations $ (9,129,213) $ (4,017,948) 

Unexpended appropriations:

Beginning balances $ 20,135,673 $ 24,646,344 

Budgetary financing sources:

Appropriations received 298,000,000 273,400,000 

Appropriations used (286,237,887) (277,910,671) 

 Total budgetary financing sources 11,762,113 (4,510,671) 

Total unexpended appropriations $ 31,897,786 $ 20,135,673 

Net Position $ 22,768,573 $ 16,117,725 

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

FY 2010 Performance and Accountability Report 

Page 42 

 FEDERAL ENERGY REGULATORY COMMISSION

Statements of Budgetary Resources

For the Years Ended September 30, 2010 and 2009

(in dollars)

2010 2009

Budgetary Resources:

Unobligated balance, beginning of period $ 8,389,692 $ 16,783,887 

Recoveries of prior year unpaid obligations 1,699,338 675,206 

Budgetary authority

Appropriation - 3,384,427 

Collected 298,017,863 273,458,072 

Change in unfilled customer orders

Without advance from Federal Sources 103 (4,394) 

Subtotal 298,017,966 276,838,105 

Total Budgetary Resources $ 308,106,996 $ 294,297,198 

Status of Budgetary Resources:

Obligations incurred: (note 15)

Direct $ 296,297,093 $ 285,853,828 

Reimbursable 17,966 53,678 

Subtotal 296,315,059 285,907,506 

Unobligated balances available and apportioned

Apportioned 11,630,401 7,023,066 

Unobligated balance not available 161,536 1,366,626 

Total status of budgetary resources $ 308,106,996 $ 294,297,198 

Change in Obligated Balance:

Obligated balance, net

Unpaid obligations, brought forward, October 1 $ 39,800,875 $ 31,987,901 

Less: Uncollected customer payments from

 Federal sources, brought forward, October 1 (39,832) (44,226) 

Total unpaid obligated balance, net 39,761,043 31,943,675 

Obligations incurred net 296,315,059 285,907,506 

Less: Gross outlays (288,868,042) (277,419,325) 

Less: Recoveries of prior year unpaid

 obligations, actual (1,699,338) (675,206) 

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

FY 2010 Performance and Accountability Report 

Page 43 

The

Change in uncollected customer payments

 from Federal sources (103) 4,394

Obligations balance, net, end of period

Unpaid obligations 45,548,555 39,800,875

Less: Uncollected customer payments from

 from Federal sources (39,935) (39,832)

Total, unpaid obligated balance, net,

 end of period $ 45,508,620 $ 39,761,043 

Net Outlays:

Gross outlays $ 288,868,042 $ 277,419,325 

Less: Offsetting collections (298,017,863) (273,458,072)

Less: Distributed offsetting receipts (33,583,397) (51,434,365)

Net outlays $ (42,733,218) $ (47,473,112) 

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

FY 2010 Performance and Accountability Report 

Page 44 

 FEDERAL ENERGY REGULATORY COMMISSION

Statements of Custodial Activity

For the Years Ended September 30, 2010 and 2009

(in dollars)

2010 2009

Sources of collections:

Cash collections – annual charges $ 34,470,800 $ 62,695,804 

Accrual adjustment 20,031,461 6,277,748

Total custodial revenue (note 12) 54,502,261 68,973,552

Disposition of collections:

Transferred to others:

United States Army – Corps of Engineers (4,450,406) (6,874,323)

Department of Interior (7,567,858) (1,058,915) 

United States Treasury (44,897,379) (35,239,228) 

Various states - (3,350,971) 

Decrease (increase) in Amounts Yet to be transferred (13,753,712) (6,283,021) 

Net Custodial Activities $ - $ - 

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

FY 2010 Performance and Accountability Report 

Page 45 

FEDERAL ENERGY REGULATORY COMMISSION

Notes to Financial Statements 

September 30, 2010 and 2009 

(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. 

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

which will serve as a guide through fiscal year 2014. As part of the update process, the 

Commission realigned its resources and activities with its key statutory authorities. This 

resulted in an updated mission statement and two strategic goals. 

The Commission’s activities are separated into the following two goals: 

Just and Reasonable Rates, Terms and Conditions 

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

terms and conditions for wholesale sales and transmission of electric energy and natural 

gas are just and reasonable and not unduly discriminatory or preferential. The 

Commission uses a combination of regulatory and market means to achieve this goal, 

including reviewing tariffs and making rate determinations. Oversight of the energy 

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

complements to the regulatory and market means. The Commission uses a balanced 

approach in its oversight and enforcement efforts, including: educating affected entities 

about market rules and other regulations; promoting internal compliance programs; 

employing robust audit and investigation programs; and, where appropriate, exercising the 

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

Infrastructure 

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

infrastructure that operates efficiently, safely and reliably. The Commission has siting 

authority that includes licensing non-federal hydropower projects, certificating interstate 

natural gas pipelines and storage projects, authorizing liquefied natural gas (LNG) 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 46 

facilities, and, in certain circumstances, permitting electric transmission lines. The 

Commission relies primarily on physical inspections of facilities to ensure the safety of 

LNG and non-federal hydropower facilities throughout the entire life cycle of a project: 

design review, construction and operation. Further, the Commission promotes efficient 

operation of energy infrastructure by encouraging, for example, the use of new 

technologies, and other procedures that may enhance economic efficiency. 

Lastly, the Commission has an important role in maintaining the reliability of the electric 

transmission grid. The Commission established, and now oversees, the Electric Reliability 

Organization (ERO). The ERO develops and enforces mandatory reliability and cyber 

security standards, subject to the review and approval by the Commission. The 

Commission also monitors system disturbances to identify near and long-term issues 

affecting generation and transmission. 

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 yearend 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.” 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 47 

Implementation – The methods for assessing annual charges to gas and oil pipelines and 

to electric utilities and power marketing administrations are codified at 18 C.F.R. 

Parts 382.201-203. Costs are prorated to gas pipelines based on volume transported and 

sold, to electric utilities and power marketing administrations based on energy sold, and 

to oil pipelines based on operating revenues. 

Filing Fees 

Filing fees are calculated annually. Regulated entities pay the current fee when filing with the 

Commission for a specific service. The fees are based on the average time spent to perform the 

particular type of 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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 48 

Non-entity assets disclosed in notes 3 and 5 include those assets that result from the 

Commission’s custodial billing activities for other federal agencies, including the U.S. 

Army Corps of Engineers, the Treasury and the U.S. Department of Interior. 

(b) Reclassification 

Certain prior year amounts previously reported have been reclassified to conform to 

current year presentation in the Statement of Net Costs. Specifically, there was a 

reclassification of $288.4 million of revenue and costs from last year’s three reportable 

segments, Energy Infrastructure, Competitive Markets and Enforcement, to reflect the 

current year’s two reportable segments, Just and Reasonable Rates, Terms and Conditions 

and Infrastructure. 

(c) 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. 

(d) 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. 

(e) 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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 49 

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. 

(f) 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 finance 

authorized purchase commitments relative to goods or services that have not been 

received and monies held in suspense until final disposition is determined. 

(g) Allowance for Doubtful Accounts 

The Commission calculates its allowance for doubtful accounts using historical collection 

data and specific account analysis. 

(h) 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. 

(i) 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. 

(j) 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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 50 

(k) 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. 

(l) Revenue Collected Under Protest 

Revenue collected under protest is deferred and recorded as a liability until the protest is 

resolved. 

(m) 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. 

(n) 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. 

(o) 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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 51 

(p) 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. 

(q) 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 2010 Performance and Accountability Report 

Page 52 

(3) Non-Entity Assets 

Non-entity assets at September 30, 2010 and 2009 consisted of: 

2010 2009

Intragovernmental:

 Accounts receivable $ 3,338,427 $ -

 Fund balances with treasury:

 Collections due to states 271 33,603

 Revenue collected under protest 6,219,698 5,918,701

 Disgorged funds 1,022,448 1,258,064

 Miscellaneous receipts held in suspense 188,125 960,056

 Special receipts fund 7,222,919 - 

 Other - 7,193

Total intragovernmental $ 10,768,969 $ 15,400,536 

Accounts receivable, net 30,116,241 22,640,111 

 Total non-entity assets $ 40,885,210 $ 38,040,647 

Total entity assets 71,054,282 53,296,550

 Total assets $ $ 91,337,197 111,939,492 

(4) Fund balance with Treasury 

Fund balance with Treasury at September 30, 2010 and 2009 consisted of: 

2010 2009

Fund Balances:

 General:

 Appropriated funds $ 57,300,359 $ 48,117,206 

 Other:

 Revenue collected under protest 6,219,698 5,918,701

 Disgorged funds 1,022,448 1,258,064

 Miscellaneous receipts held in suspense 188,125 960,056

 Special receipts fund 7,222,919 - 

 Other 271 40,796

 Total $ 64,730,901 $ 63,517,742 

Status of Fund Balance with Treasury

 Unobligated balance:

 Available $ 11,630,401 $ 7,023,066 

 Unavailable 7,551,945 16,693,801

Obligated balance not yet disbursed 45,548,555 39,800,875

 Total $ 64,730,901 $ 63,517,742 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 53 

(5) Accounts Receivable, net 

Entity and nonentity accounts receivable at September 30, 2010 and 2009 consisted of: 

2010

Annual Charges Other Total

Entity

Uncollected billings $ $ 161,103 489,510 $ 650,613 

Unbilled billings 5,258,613 - 5,258,613 

Uncollected intragovernmental billings 33,438 929 34,367 

Allowance for doubtful accounts (468) (13,053) (13,521) 

 Total entity accounts receivable, net 5,781,093 148,979 5,930,072 

Non-entity

Uncollected billings 30,842 49,335,571 49,366,413 

Unbilled billings 13,284,147 - 13,284,147 

Uncollected intragovernmental billings 3,338,427 - 3,338,427 

Allowance for doubtful accounts (5,553) (32,528,766) (32,534,319) 

Total non-entity accounts receivable, net 16,647,863 16,806,805 33,454,668 

 Total accounts receivable, net $ $ 16,955,784 22,428,956 $ 39,384,740 

2009

Annual Charges Other Total

Entity

Uncollected billings $ $ 88,693 320,305 $ 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 $ $ 22,660,723 391,049 $ 23,051,772 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 54 

(6) Property and Equipment, net 

Property and equipment and related accumulated depreciation at September 30, 2010 and 2009 

consisted of: 

2010

Acquisition Accumulated

Amount depreciation Net

Equipment $ $ 3,013,082 5,311,666 $ 2,298,584 

Furniture 10,309,542 9,125,153 1,184,389 

Leasehold improvements 11,251,405 7,152,585 4,098,820 

ADP software 17,863,793 17,621,735 242,058 

Capital assets 29,000 29,000 - 

 Total Property and Equipment, net $ $ 36,941,555 44,765,406 $ 7,823,851 

2009

Acquisition Accumulated

Amount Depreciation Net

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

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

Leasehold improvements 9,491,416 6,604,682 2,886,734 

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

Capital assets 29,000 29,000 - 

 Total Property and Equipment, net $ $ 34,789,134 39,556,817 $ 4,767,683 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 55 

(7) Other Liabilities 

Other liabilities at September 30, 2010 and 2009 consisted of: 

2010

Current Non-Current Total

Intragovernmental

 Accrued payroll and benefits $ 1,835,569 $ - $ 1,835,569 

 Resources transferable to Treasury and other Federal

 entities 18,456,550 - 18,456,550 

 Miscellaneous receipts transferable to Treasury - - - 

 Workers' compensation payable 295,519 285,844 581,363 

 Total other intragovernmental liabilities 20,587,638 285,844 20,873,482 

Accrued payroll and benefits 8,899,401 - 8,899,401 

Collections due to states 5,693,477 - 5,693,477 

Commitments and Contingencies 51,000 - 51,000 

Revenue collected under protest 6,219,698 - 6,219,698 

Refunds and other amounts due 188,125 2,337,916 2,526,041 

Accrued leave 14,184,567 - 14,184,567 

Resources transferable to other entities from disgorged funds 16,108,453 - 16,108,453 

 Total other liablities $ $ 2,623,760 71,932,359 $ 74,556,119 

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 other 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 

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, the FECA Actuarial Liability and other amounts due for 

miscellaneous activities, such as parking. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 56 

Resources transferable to other entities from disgorged funds represents monies that will be 

disbursed to specific entities in the future. 

(8) Leases 

The General Services Administration (GSA) enters into lease agreements for government 

buildings and maintains those lease agreements. The Commission pays GSA a standard level 

users charge for the annual rental of building space, of which Commission Headquarters is in 

Washington, DC and several other regional offices are located in various parts of the country. 

The standard level users charge approximates the commercial rental rates for similar properties. 

The Commission generally executes an occupancy agreement with GSA, which normally 

includes a requirement to give 30-120 days notice to vacate. Expenses incurred for building 

leases amounted to $20.7 million and $21.7 million for periods ended September 30, 2010 and 

2009, respectively. 

Fiscal Year GSA Non-GSA Total

FY 2011 $ 13,099,682 $ 62,527 $ 13,162,209 

FY 2012 13,174,104 53,354 13,227,458

FY 2013 12,996,481 36,807 13,033,288

FY 2014 12,666,667 12,269 12,678,936

FY 2015 12,666,667 - 12,666,667

Beyond FY 2015 17,615,668 - 17,615,668

 Total future minimum lease payments $ 82,219,269 $ 164,957 $ 82,384,226 

Real Property Operating Leases - Future Payments

(9) Liabilities Not Covered by Budgetary Resources 

Liabilities not covered by budgetary resources at September 30, 2010 and 2009 consisted of: 

2010 2009

Intragovernmental

 Workers' compensation payable $ 581,363 $ 540,739 

Total intragovernmental 581,363 540,739

Accrued leave 14,184,567 13,175,159

Other (FECA Actuarial Liability) 2,337,916 -

 Total liabilities not covered by budgetary resources $ 17,103,846 $ 13,715,898 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 57 

(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 2010 and 2009 was approximately $15.9 million and 

$14.6 million, respectively as of September 30th. During fiscal years 2010 and 2009 as of 

September 30th, an additional $16.2 million and $12.6 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 an Equal Employment Opportunity case pending where the probability of 

success for the claimant is reasonably possible. The amount of monetary relief, if awarded, 

would not exceed $51,000 as of September 30, 2010. 

(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 2010 and 2009, these custodial 

collections totaled approximately $34.5 million and $62.7 million, respectively as of September 

30th. For fiscal years 2010 and 2009, custodial revenue totaled approximately $54.5 million and 

$69.0 million, respectively as of September 30th. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 58 

(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, 2010 and 2009 were $ 0 and $33,000 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, 2010 and 2009. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 59 

(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, 2010 and 2009 consisted of:

2010 2009

Just and Reasonable Rates, Terms, & Conditions

 Intragovernmental costs $ 33,574,618 33,139,723 

 Public costs 133,648,661 135,427,224 

Total Just and Reasonable Rates, Terms, and 167,223,279 168,566,947 

 Conditions costs

 

 Intragovernmental earned revenue 18,391 18,825 

 Public earned revenue 167,204,888 168,548,122 

Total Just and Reasonable Rates, Terms, and 167,223,279 168,566,947 

 Conditions earned revenues

Infrastructure

 Intragovernmental costs 27,472,813 24,006,381 

 Public costs 107,937,786 95,842,497 

Total Infrastructure costs 135,410,599 119,848,878 

 

 Intragovernmental earned revenue 20,440 71,704 

 Public earned revenue 135,377,586 119,781,568 

Total Infrastructure earned revenues 135,398,026 119,853,272 

Costs

 Intragovernmental Costs 61,047,431 57,146,104 

 Public Costs 241,586,447 231,269,721 

Total Costs 302,633,878 288,415,825 

Revenue

 Earned Intragovernmental Revenue 38,831 90,529 

 Earned Public Revenue 302,582,474 288,329,690 

Total Earned Revenue 302,621,305 288,420,219 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 60 

(15) Apportionment Categories of Obligations Incurred 

Apportionment categories of obligations incurred as of September 30, 2010 and 2009 consisted 

of: 

2010 2009

Category A:

 Direct $ 296,297,093 $ 285,853,828

 Reimbursable 53,678 17,966 

Total obligations incurred $ 296,315,059 $ 285,907,506

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, 2009. 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, 2010 is not presented, because the submission of 

the FY 2012 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 2011. 

(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 2010 

and 2009 were $20.2 million and $11.8 million respectively. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 61 

(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. 

2010 2009

Resources used to finance activities:

Budgetary resources obligated:

Obligations incurred $ 296,315,059 $ 285,907,506 

Less: spending authority from offsetting collections (299,717,304) (274,128,884) 

Obligations, net of offsetting collections (3,402,245) 11,778,622 

Less: offsetting receipts (33,583,397) (51,434,365) 

Net obligations (36,985,642) (39,655,743) 

Other resources:

Transfers-out, net of appropriations received (4,615,912) (19,074,316) 

Imputed financing from costs absorbed by others 16,165,804 12,626,253 

Net other resources used to finance activities 11,549,892 (6,448,063) 

Total resources used to finance activities (25,435,750) (46,103,806) 

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 (+/-) (8,370,229) (3,905,079) 

Resources that fund expenses recognized in prior periods - - 

Budgetary offsetting receipts that do not affect the net

cost of operations 33,583,397 51,434,365 

Resources that finance the acquisition of assets (5,237,132) (642,903) 

Payments to States (33,332) (3,384,427) 

Total resources used to finance items not part of the net cost of operations 19,942,704 43,501,955 

Total resources used to finance the net cost of operations (5,493,046) (2,601,850) 

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 3,360,948 417,691 

Increase in exchange revenue receivable from the public - - 

Total components of net cost of operations that will require or 3,360,948 417,691 

generate resources
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 62 

Components not requiring or generating resources:

Depreciation and amortization 2,180,964 2,182,703 

Other (36,293) (2,937) 

Total components of net cost of operations that will not require or

generate resources 2,144,671 2,179,766 

Total net cost of operations that do not require or generate resources in

the current period 5,505,619 2,597,456 

Net Cost of Operations $ 12,573 $ (4,394) 

 

 

*********** 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 63 

Performance Report 

(Unaudited) 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 64 

This page intentionally left blank. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 65 

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 2010 performance results that were included 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. 

In accordance with OMB Circular A-11, the Commission updates its strategic plan every 

three years. As such, the performance measures for fiscal year 2010 are aligned with the 

Commission’s current Strategic Plan, which went into effect on September 30, 2009. The 

Performance Measures for fiscal years 2006 – 2009 are aligned with previous versions of the 

Commission’s Strategic Plan. 

The Commission did not engage in an independent program evaluation during FY 2010. In 

the spirit of OMB program evaluation efforts, the Commission has begun to develop an 

internal evaluation process to gauge progress in meeting its strategic goals in order to convey 

to stakeholders and policymakers the successes of our most important initiatives. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 66 

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 2010 Performance and Accountability Report 

Page 67 

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 2010 Performance and Accountability Report 

Page 68 

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 2010 Performance and Accountability Report 

Page 69 

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. 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 70 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

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. 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 71 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

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. 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 72 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

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. 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 73 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

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. 

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 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 74 

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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. 

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.
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 75 

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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). 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 76 

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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. 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 77 

FY 2009 

Performance Measure 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. 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 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 78 

FY 2009 

Performance Measure Performance Target Results 

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. 

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 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 79 

FY 2009 

Performance Measure Performance Target Results 

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 

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 2010 Performance and Accountability Report 

Page 80 

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 2010 Performance and Accountability Report 

Page 81 

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 2010 Performance and Accountability Report 

Page 82 

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 2010 Performance and Accountability Report 

Page 83 

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 2010 Performance and Accountability Report 

Page 84 

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 2010 Performance and Accountability Report 

Page 85 

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 2010 Performance and Accountability Report 

Page 86 

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. 

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 “holdharmless” 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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 87 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

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. 

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 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 88 

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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. 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 89 

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 

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 2010 Performance and Accountability Report 

Page 90 

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 2010 Performance and Accountability Report 

Page 91 

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 2010 Performance and Accountability Report 

Page 92 

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. 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 93 

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) 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 94 

FY 2008 

Strategy 

Performance Measure Target Results 

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. 

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.
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 95 

FY 2009 

Performance Measure Performance Target Results 

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. 

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.
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 96 

FY 2009 

Performance Measure Performance Target Results 

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 2010 Performance and Accountability Report 

Page 97 

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 2010 Performance and Accountability Report 

Page 98 

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 2010 Performance and Accountability Report 

Page 99 

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 2010 Performance and Accountability Report 

Page 100 

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 2010 Performance and Accountability Report 

Page 101 

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 2010 Performance and Accountability Report 

Page 102 

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 2010 Performance and Accountability Report 

Page 103 

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 2010 Performance and Accountability Report 

Page 104 

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 2010 Performance and Accountability Report 

Page 105 

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 2010 Performance and Accountability Report 

Page 106 

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 2010 Performance and Accountability Report 

Page 107 

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 2010 Performance and Accountability Report 

Page 108 

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. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 109 

Performance Measurement Data for Just and Reasonable Rates, Terms and 

Conditions: FY 2010

Performance Measure Performance Target Results 

Objective 1.1: Regulatory and Market Means: Ensure implementation of appropriate regulatory and market means for establishing 

rates. 

Further barriers to participation by demand 

resources in organized wholesale electric markets 

will be identified and eliminated. 

Evaluate ISO/RTO filings on barriers to 

demand response. Complete and submit 

National Action Plan on Demand Response 

Target Met. 

In FY 2010, issued orders evaluating 6 

filings submitted by RTOs and ISOs to 

identify barriers to demand response 

and to comply with other requirements 

of Order No. 719. 

Completed and published on June 17, 

2010, a National Action Plan on 

Demand Response (Docket No. AD09-

10) 

Best practices for demand response products and 

procedures will be explored and, as appropriate, 

implemented in organized wholesale electric 

markets. 

Perform outreach with ISOs/RTOs, demand 

response providers, and others; as 

appropriate, issue NOPR on best practices 

Target Met. 

Engaged in outreach between October 

1, 2009 and January 31, 2010 with 

RTOs/ISOs, demand response 

providers, retail industry, technology 

providers and state regulators regarding 

practices affecting demand response 

products and procedures. One of the 

best practices identified concerned the 

level of compensation paid to demand 

response resources participating in 

wholesale electricity markets. On 

March 18, 2010, issued a notice of 

proposed rulemaking (NOPR) entitled 

Demand Response Compensation in 

Wholesale Electric Markets (Docket 

No. RM10-17). 

All resources technically capable of providing 

needed ancillary services will have the 

opportunity to provide those services. 

Perform outreach to identify the need for 

modification or creation of additional 

ancillary services, and issue NOPR, as 

appropriate 

Target Not Met. 

Engaged in outreach between October 

1, 2009 and June 30, 2010 with 

RTOs/ISOs, storage and other 

technology providers, industrial 

customers, and research organizations. 

On January 21, 2010, issued a Notice of 

Inquiry seeking public comment on the 

extent to which reforms are necessary 

to ensure that wholesale electricity 

tariffs, including those governing 

ancillary services, remain just, 

reasonable and not unduly 

discriminatory (Integration of Variable 

Energy Resources, Docket No. RM10-

11-000). The Commission received 

over 2,000 pages of comments from 

industry, state & federal agencies, and 

consumer interests, which are being 

analyzed by Commission staff to 

determine the need to modify existing, 

or create additional, ancillary services 

through a NOPR. Because of the large 

number of comments, more time is 

needed to develop specific proposals to 

include in a NOPR. Work on a NOPR 

proposal will continue into the FY11. 

Although the Commission did not issue 

the NOPR in FY10, it will not have a 

negative impact on achieving future 

targets or overall program performance. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 110 

Performance Measure Performance Target Results 

Market reforms which will allow renewable 

resources to compete fairly will be explored and, 

as appropriate, implemented in Commissionjurisdictional markets. 

Perform outreach with industry and issue staff 

white paper identifying potential need for and 

types of market reforms 

Target Met and Exceeded.Conducted 

outreach between October 1, 2009 and 

June 30, 2010 with RTOs/ISOs, storage 

and other technology providers, 

industrial customers, and research 

organizations. After the outreach was 

completed, the Commission determined 

a Notice of Inquiry could be issued in 

lieu of a staff white paper and still 

achieve the same purpose. On January 

21, 2010, issued an NOI seeking 

comment on the integration of variable 

energy (renewable) resources 

(Integration of Variable Energy 

Resources, Docket No. RM10-11-000). 

By FY 2014, efficiency in market operations will 

be enhanced through deployment of new software 

and optimization of hardware. 

Internal release of staff white paper; industry 

outreach, including technical conferences, to 

identify best practices 

Target Met. 

Explored opportunities to enhance 

operational efficiency in jurisdictional 

markets through the deployment of new 

modeling software and optimization of 

market operations. Staff held three 

conferences in June 2010 to gather 

information from the public regarding 

modeling and software enhancements. 

On July 29, 2010, delivered a white 

paper to the Commission’s Chief of 

Staff outlining opportunities for further 

work on this project. 

By FY 2014, the performance of markets within 

and outside of ISOs/RTOs will be measured using 

a common set of metrics. 

Explore and develop appropriate operational 

and financial metrics for ISOs/RTOs 

Target Not Met. 

During FY 2010, Commission staff 

worked with RTO and ISO staff, 

stakeholders and other experts to 

develop standardized metrics to track 

the performance of RTOs and ISOs and 

transactions in the markets they 

administer. Proposed metrics were 

made publicly available for comment in 

February 2010, and Commission staff 

has reviewed comments submitted on 

the proposed metrics. While the final 

metrics were not issued during FY 

2010, this had no adverse impact on the 

program. The Commission expects to 

release the final metrics in early FY 

2011 and to collect data from the RTOs 

and ISOs shortly thereafter. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 111 

Performance Measure Performance Target Results 

By FY 2014, appropriate filings and issues will 

employ alternative dispute resolution and 

collaborative processes first. 

Develop guidelines/tariff provisions to apply 

to filings/issues amenable to consensual 

resolution 

Target Not Met 

During FY 2010, staff reviewed and 

categorized two years of recent 

Commission orders which set cases for 

consensual resolution/hearing. Internal 

dialogue with senior staff and program 

managers provided additional 

understanding into the types of cases 

which may be amenable to consensual 

resolution. Through these efforts, a 

baseline of the types of cases and issues 

that the Commission traditionally sets 

for consensual resolution/hearing was 

established. 

Following this internal communication, 

staff identified a list of approximately 

30 external stakeholders who could 

provide valuable insight to the 

guideline development process. 

Acquiring the input from these external 

stakeholders has taken significantly 

more time than anticipated because the 

number of external parties is much 

higher than originally planned. The 

meetings that have occurred to date 

have been very productive and the 

Commission staff will continue to meet 

with the remaining parties throughout 

the first and second quarters of FY 

2011. Although the Commission did 

not finalize the guidelines in FY 2010, 

it will not have a negative impact on 

overall program performance. 

Objective 1.2: Oversight and Enforcement: Increase compliance with the Commission’s rules and deter market manipulation. 

By FY 2014, 70 percent of company compliance 

programs reviewed on Commission audits for the 

audit focus areas are found to be adequate to 

demonstrate a culture of compliance. 

10% 

50% (2/4) of compliance programs 

were found to demonstrate an adequate 

culture of compliance. 

Because this performance measure is 

new for FY 2010, only audits that were 

started and completed in FY 2010 were 

included. In determining which audits 

would be included in the universe for 

this measure, the Commission 

developed general guidelines. In order 

to maintain consistency over time, only 

large, multi-scope audits will be 

included in this measure’s universe. 

70 percent of compliance programs reviewed 

through investigations that involve a penalty are 

found to be sufficiently robust to merit credit to 

reduce the penalty. 

10% 

Target Met. 

During FY 2010, 26 percent (20 out of 

77) of the relevant cases, the 

Commission found compliance 

programs in place at the time of the 

violation to be sufficiently robust as to 

merit credit to reduce or eliminate 

penalties. 

By FY 2014, 80 percent of the Commission’s 

audit program will be planned using a risk-based 

approach. 

40% Target Met. 55% (52/94) audits planned 

using a risk-based approach. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 112 

Performance Measurement Data for Infrastructure: FY 2010

Performance Measure Performance Target Results 

Objective 2.1: Infrastructure Development and Siting: Increase efficient infrastructure consistent with demand. 

By FY 2014, 50 percent of all new transmission 

projects will incorporate advanced technologies. 5% 

Target Met. 

In FY 2010, the Commission acted on 

11 requests for incentives or negotiated 

rate authority for new transmission. Of 

those 11 requests, the Commission 

found one project (9 percent) which 

included advanced transmission 

technologies. 

By FY 2014, all public utilities will implement 

open and transparent transmission planning 

processes that meet the strategy. 

Assessment of transmission planning process 

best practices, including the potential for 

collaborative decision making, and issue 

NOPR, as appropriate (Assessment includes 

how options to transmission are considered.) 

Target Met. 

Upon review of more than 3,000 pages 

of comments and significant staff-led 

outreach, staff prepared 

recommendations for Commission 

consideration that led to the issuance of 

a NOPR on June 17, 2010 

(Transmission Planning and Cost 

Allocation by Transmission Owning 

and Operating Public Utilities, Docket 

No. RM10-23-000). 

By FY 2014, 100 percent of jurisdictional natural 

gas companies will be examined for feasibility of 

installing waste heat recovery systems. 

20% 

Target Met. 

In FY 2010, Commission staff 

examined 44 (20 percent) of the 

Commission’s jurisdictional natural gas 

companies for feasibility of installing 

waste heat recovery systems. 

Objective 2.2: Safety: Minimize risk to the public. 

By FY 2014, risk-informed decision making will 

be incorporated into the FERC dam safety 

program. 

Develop action plan 

Target Met. 

In FY 2010, the Commission developed 

and finalized its RIDM Action Plan 

which outlines the work efforts required 

over the next four years to incorporate 

RIDM into its dam safety program. 

Objective 2.3: Reliability: Maintain the reliability of the electric transmission grid. 

By FY 2014, proposed Reliability Standards will 

be processed in a timely manner at least 80 

percent of the time. 

75% 

Target Met. 

96% of filed reliability standards have 

orders issued within 18 months. 

By FY 2014, Reliability Standards will be 

enforced effectively, resulting in a reduction of 

the frequency of repeat violations by at least 10 

percent. 

Establish tracking process 

Target Met. 

The Commission developed in FY 2010 

a database to track violations from 

Notices of Penalty filed by the ERO. 

As part of this process, the Commission 

determined the measurable parameters 

(e.g., what constitutes a repeat violation 

over a designated time period) to 

facilitate a determination as to the 

observed rate of repeat violations of the 

Reliability Standards. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 113 

Performance Measure Performance Target Results 

By FY 2014, reliability parameters that could 

affect national goals of reducing carbon and 

increasing the penetration of renewable energy 

resources on the electric transmission grid will be 

finalized. 

Establish contacts and develop research, data 

collection and reporting processes 

Target Met. 

In FY 2010, Commission staff 

established approximately 100 industry 

contacts across the nation and 

internationally. The Commission has 

led and participated in the efforts to 

conduct technical studies on Frequency 

Response, Electromagnetic Pulse and 

the potential impact of early Coal Plant 

retirements due to potential regulations. 

The research the Commission staff has 

done on complex and highly technical 

studies provide guidance and direction 

in establishing the parameters to protect 

and preserve reliability as industry 

integrates large amounts of renewable 

generation into the bulk power system. 

*********** 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 114 

This page intentionally left blank. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 115 

Appendix A

Statutory Authority
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 116 

This page intentionally left blank. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 117 

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) 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 118 

This page intentionally left blank. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 119 

Appendix B 

Acronyms
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 120 

This page intentionally left blank. 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 121 

Acronym Full Description 

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 

GPRA Government Performance and Results Act of 1993 

ISO Independent System Operator 

LNG Liquefied Natural Gas 

MW megawatt 

NERC North American Electric Reliability Corporation 

NOPR Notice of Proposed Rulemaking 

OMB Office of Management and Budget 

RIDM Risk-informed Decision Making 

RTO Regional Transmission Organization 

USACE U.S. Army Corps of Engineers 
Federal Energy Regulatory Commission 

FY 2010 Performance and Accountability Report 

Page 122 

This page intentionally left blank.