Chairman Jon Wellinghoff

FEDERAL ENERGY 

REGULATORY COMMISSION

PERFORMANCE & ACCOUNTABILITY REPORT

FISCAL YEAR 2013
FEDERAL ENERGY REGULATORY COMMISSION 

WASHINGTON. DC 20426 

OFFICE OF THE CHAIRMAN 

November 12, 2013 

Letter from Chairman Wellinghoff 

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

Performance and Accountability Report for fiscal year 2013. This report was prepared in 

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

Number (No.) A-136 and Part 6 of Circular No. A-11. 

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

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

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

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

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. 
FY 2013 Performance & Accountability Report

TABLE OF CONTENTS

STRATEGIC PLAN OVERVIEW i

MANAGEMENT’S DISCUSSION AND ANALYSIS 1

Introduction 2

Organizational Structure 2

Strategic Plan Overview 4

Strategies for Carrying Out the Commission’s Responsibilities 6

Business Plan 7

Full Cost Recovery 7

Program Performance Overview 8

Financial Performance Overview 23

Controls, Systems, and Legal Compliance 26

Possible Future Effects of Existing Events and Conditions 28

Limitations of the Financial Statements 28

FINANCIAL SECTION 29

Message from the Chief Financial Officer 30

Independent Auditors’ Report 32

Balance Sheets 35

Statements of Net Cost 36

Statements of Changes in Net Position 37

Statements of Budgetary Resources 38

Statements of Custodial Activity 40

Notes to Financial Statements 41

Other Information 56

PERFORMANCE REPORT 57

Introduction 58

Historic Performance Data: 

Energy Infrastructure: FYs 2008 - 2009 59

Competitive Markets: FYs 2008 - 2009 66

Enforcement: FYs 2008 - 2009 69

Supporting Initiatives: FYs 2008 - 2009 73

Current Performance Data: 

Just and Reasonable Rates, Terms and Conditions: FYs 2010 - 2013 78

Infrastructure: FYs 2010 - 2013 88

APPENDIX A: STATUTORY AUTHORITY 93

APPENDIX B: ACRONYM LISTING 95
Page i

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. 

Provide for the reliable operation of the bulk power system through oversight 

of the development and implementation of mandatory and enforceable 

standards.
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Management’s

Discussion and Analysis

(Unaudited)
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INTRODUCTION

In accordance with the guidelines set forth in 

the Office of Management and Budget 

(OMB) Circular Number (No.) A-136 and 

Section 230 of Circular No. A-11, this report 

presents the Federal Energy Regulatory

Commission’s (the Commission, FERC) 

fiscal years (FY) 2013 and 2012 audited 

annual financial statements and program 

performance report. The financial section 

includes the Commission’s audited balance 

sheets, statements of net cost, changes in 

net position, budgetary resources, custodial 

activity, and notes to the financial 

statements. The performance report section

includes performance measurement data for 

fiscal years 2008 through 2013. 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 2013. 

Approximately 1,450 full time equivalents 

(FTEs) carried out the Commission’s mission 

in FY 2013 using a budget of $289.3 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 

twelve separate functional offices; each 

responsible for carrying out specific portions 

of the Commission’s responsibilities. The 

offices work in close coordination to 

effectively carry out the Commission’s 

statutory authority. 

An organizational chart, including a brief 

description of each office, is included below.
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Office of Administrative Law Judges

and Dispute Resolution (ALJDR)

Resolves contested cases as directed by the 

Commission effectively, efficiently and 

expeditiously, either through impartial hearing 

and decision or through negotiated settlement, 

ensuring that the rights of all parties are 

preserved. Assists interested parties engaged 

in disputes together to promote consensual 

decision making through services such as 

mediation, negotiation and facilitation.

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 a timely, 

efficient and equitable manner while ensuring 

the outcomes are consistent with Commission 

policy.

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 Infrastructure Security 

(OEIS)

Provides leadership, expertise and assistance 

to the Commission to identify, communicate 

and seek comprehensive solutions to potential 

risks to FERC-jurisdictional facilities from cyber 

attacks and such physical threats as 

electromagnetic pulses.

Office of Energy Market Regulation (OEMR) 

Analyzes filings submitted by electric utilities, 

and natural gas and oil pipelines to ensure that 

rates, terms and conditions of service are just 

and reasonable and not unduly discriminatory 

or preferential. Provides support to the 

Commission on matters involving market 

design relating to electric, natural gas, and oil 

pipeline services. Analyzes filings submitted by 

the Electric Reliability Organization (ERO) 

dealing with its budget, rules of procedure, and 

bylaws.

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 
FY 2013 Performance & Accountability Report

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resources, and the deployment of demand 

response and distributed resources, smart grid 

and other advanced technologies.

Office of Energy Projects (OEP)

Fosters economic and environmental benefits 

for the nation through the approval and 

oversight of hydroelectric and natural gas 

pipeline energy projects that are in the public 

interest.

Office of Enforcement (OE)

Serves the public interest by guiding the 

evolution and operation of energy markets to 

ensure effective regulation and protecting 

customers through understanding markets and 

their regulation, timely identifying and 

remedying market problems, assuring 

compliance with rules and regulations, and 

detecting and crafting penalties to address 

market manipulation.

Office of External Affairs (OEA)

Responsible for communications and public 

relations of the Commission. Provides 

informational and educational services to 

Congress; federal, state and local 

governments; the news media and the public; 

and regulated industries, consumer and public 

interest groups. This office also is the 

Commission’s liaison with foreign 

governments.

Office of the Executive Director (OED)

Provides administrative support services to the 

Commission including human resources, 

procurement, information technology, 

organizational management, financial, logistics 

and others.

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 all proceedings before 

the Commission, notices of proceedings are 

given, and from which all official actions are 

issued by the Commission. Promulgates and 

publishes all orders, rules, and regulations of 

the Commission and prescribes the issuance 

date for these unless such date is prescribed 

by the Commission.

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. The Commission issued a 

revised plan in March 2013 as allowed by 

the GPRA Modernization Act of 2010. The 

Commission found during its review that the 

Strategic Plan continues to reflect 

appropriately the direction of the 

Commission. The full Strategic Plan can be 

found at www.ferc.gov. 

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:
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Goal 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; 

employing robust audit and investigation 

programs; and, where appropriate, 

exercising the Commission’s civil penalty 

authority as a deterrent to violations.

Goal 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, 

and authorizing liquefied natural gas (LNG)

facilities. 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.

The Commission has an important role in 

providing for the reliable operation of the 

bulk power system. Under section 215 of the 

Federal Power Act (FPA), the Commission 

certified, and now oversees, the ERO. The 

ERO develops and enforces mandatory 

reliability standards, subject to the review 

and approval by the Commission. Section 

215 defines a "reliability standard" as 

including "requirements for the operation of 

existing bulk-power system facilities, 

including cyber security protection, and the 

design of planned additions or 

modifications..." These standards, if 

approved by the Commission, apply to 

utilities that own or operate the bulk-power 

system. The Commission also monitors 

system disturbances to identify near- and 

long-term issues affecting generation and 

transmission. 

Spanning across these responsibilities is the 

Commission’s commitment to the security of 

the transmission system, oil and gas 

pipelines, LNG facilities and hydropower 

infrastructure. With the newly created Office 

of Energy Infrastructure Security (OEIS), the 

Commission will leverage its existing 

resources in a coordinated manner to 

provide leadership, expertise, and 

assistance in identifying, communicating, 

and seeking comprehensive solutions to 

significant potential cyber and physical 

security risks to the energy infrastructure 

under the Commission’s jurisdiction. Using 

the Commission’s current authorities under 

the FPA, the Natural Gas Act, and the 

Interstate Commerce Act, the office will 

identify current and emerging defense and 

mitigation strategies for cyber and physical 

security threats to energy infrastructure.

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.
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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 nondiscriminatory market access to all supplyside and demand-side energy resources. 

Improving the competitiveness of these 

markets is important because it encourages 

new entry among supply-side and demandside 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.

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 transmissionrelated 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, and authorizing LNG facilities. 

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 (RIDM) into the dam safety 

program. 
FY 2013 Performance & Accountability Report

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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 oversees the development 

and review of mandatory reliability and 

security standards. The Commission 

achieves this through active involvement in 

the standards development process of the 

ERO and review of all reliability standards 

filed by the ERO. The Commission provides

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 standards. The 

Commission also joins or leads incident and 

alleged violation analyses and/or 

investigations following bulk-power system 

incidents or complaints. The Commission 

also tracks and reviews all alleged violations, 

mitigation plans, and proposed penalties and 

conducts ERO and regional entity 

performance reviews and audits.

With respect to protecting the energy 

infrastructure, the Commission will 

concentrate its efforts in four areas: 

• developing recommendations for 

identifying and communicating mitigating 

alternatives for potential cyber and 

physical security threats to Commission 

jurisdictional energy infrastructure; 

• offering assistance, expertise and advice 

to other federal and state agencies, and 

jurisdictional utilities, for identifying and 

communicating mitigating alternatives for 

cyber and physical security threats to 

Commission jurisdictional energy 

infrastructure;

• contributing to interagency and 

intelligence-related coordination and 

collaboration efforts with appropriate 

federal, state agencies and industry 

representatives on cyber and physical 

security matters related to Commission 

jurisdictional energy infrastructure; and

• conducting outreach to improve the 

exchange of information with private sector 

owners, users and operators of the energy 

delivery systems, regarding identification, 

communication and mitigation of cyber and 

physical threats to Commission 

jurisdictional energy infrastructure.

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 2013, the 

Commission reported actual FTE usage at a 

detailed activity level in its Business Plan, 

which improved offices’ ability to organize 

and allocate resources effectively.

FULL COST RECOVERY

The Commission recovers the full cost of its 

operations through annual charges and filing 

fees assessed on the industries it regulates 

as authorized by the FPA and the Omnibus 

Budget Reconciliation Act of 1986. The 

Commission deposits this revenue into the 

Treasury as a direct offset to its 

appropriation, resulting in no net 

appropriations.
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PROGRAM PERFORMANCE OVERVIEW

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

the Commission’s key achievements during FY 2013. The performance measures and targets were 

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

performance measurement data for fiscal years 2008 through 2013 is included in the Performance 

Report section of this report.

GOAL 1: JUST AND REASONABLE RATES, TERMS AND CONDITIONS 

OBJECTIVE 1.1: REGULATORY AND MARKET MEANS

Ensure implementation of appropriate regulatory and market means for establishing rates

STRATEGY 1

Establish rules that enhance competition by allowing non-discriminatory market access to all supply 

side and demand-side energy resources

Performance Measure 1

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

will be identified and eliminated.

Year Target Result

FY 2013 Implement Final Rule as appropriate

Target Met. The Commission issued an order 

on the sixth and remaining initial compliance 

filing related to Order No. 745, Demand 

Response Compensation in Organized 

Wholesale Energy Markets (Docket No. 

ER11-4338-000).

Performance Measure 2

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

appropriate, implemented in organized wholesale electric markets.

Year Target Result

FY 2013 Monitor implementation and performance

Target Met. The Commission issued an order 

on the sixth and remaining initial compliance 

filing related to Order No. 745, Demand 

Response Compensation in Organized 

Wholesale Energy Markets. 

Further, the Commission on February 21, 

2013, issued a Final Rule (Order No. 676-G) 

adopting Standards for Business Practices 

and Communications Protocols for Public 

Utilities.
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Performance Measure 3 

All resources that are technically capable of providing needed ancillary services have the 

opportunity to provide those services.

Year Target Result

FY 2013 Monitor implementation and performance

Target Met. The Commission issued orders 

on the two remaining compliance filings 

associated with Order No. 755, Frequency 

Regulation Compensation in the Organized 

Wholesale Power Markets. Further, a filing by 

a regional transmission organization (RTO)

not initially subject to Order No. 755 was 

made in FY 2013 and is pending Commission 

action.

Further supporting this measure, the 

Commission issued Order No. 784, adopting 

the notice of proposed rulemaking (NOPR) on 

Third Party Provision of Ancillary Services; 

Accounting for Financial Reporting for New 

Electric Storage Technologies.

Performance Measure 4 

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

as appropriate, implemented in Commission-jurisdictional markets.

Year Target Result

FY 2013 Monitor implementation and performance

Target Met. On December 20, 2012 and 

September 19, 2013, the Commission issued 

orders on rehearing of Order No. 764, 

Integration of Variable Energy Resources. 

The Commission also extended the deadline 

for submission of compliance filings from 

September 11, 2013 to November 12, 2013. 

(Remainder of page intentionally left blank.)
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STRATEGY 2

Promote operational efficiency in wholesale markets through the exploration and encouragement of 

the use of software and hardware that will optimize market operations

Performance Measure 5 

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

software and optimization of hardware.

Year Target Result

FY 2013 Monitor implementation and performance

Target Met. The Commission held a meeting 

on Potential Improvements in Computational 

Models for Markets of the Future to Enhance 

the Efficiency of Independent System 

Operators (ISO) Markets in 2025 on May 2, 

2013. The Commission also held a Technical 

Conference on Increasing Real-Time and 

Day-Ahead Market Efficiency Through 

Improved Software (AD10-12-004) on June 

24-26, 2013. 

STRATEGY 3

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

ISOs/RTOs

Performance Measure 6 

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

using a common set of metrics.

Year Target Result

FY 2013 Establish appropriate common metrics 

between ISOs/RTOs and non-ISOs/RTOs

Target Met. Staff issued a report specifying 

performance metrics for regions outside ISO 

and RTO markets. The metrics in this report 

are a subset of the ISO and RTO performance 

metrics and therefore represent common 

metrics that are applicable to all regions. 
FY 2013 Performance & Accountability Report

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OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2013

OBJECTIVE 1.1: REGULATORY AND MARKET MEANS

• In FY 2013, the Commission issued a 

number of orders addressing filings to 

facilitate the integration of the Entergy,

Services Inc. operating companies into the 

Midcontinent Independent System 

Operator, Inc. (MISO) regional 

transmission organization and markets, 

which is planned to take place in 

December 2013.

• In October 2012, the Commission 

conditionally approved Southwest Power 

Pool, Inc.’s (SPP’s) Day 2 market 

proposal, the Integrated Marketplace, 

which includes day-ahead and real-time 

energy and operating reserve markets with 

locational marginal pricing, financial 

transmission rights, virtual transactions, 

and a revised market power mitigation 

plan.

• In FY 2013, the Commission addressed a 

number of challenging issues related to 

buyer-side market power mitigation in 

organized capacity markets, including in 

February, orders addressing exemptions 

for state-sponsored public policy projects, 

including renewable resources, in a 

complaint filed by New England States 

Committee on Electricity against ISO New 

England, Inc. (ISO-NE) and a related ISONE compliance filing and, in May an order 

addressing PJM Interconnection LLC’s 

(PJM) proposed revisions to its provisions 

for granting exemptions to the Minimum 

Offer Price Rule. 

• In May 2013, following an investigation 

under section 206 of the FPA, the 

Commission issued an order requiring 

reforms to the MISO transmission owners’ 

formula rate protocols to ensure that the 

transmission owners provide adequate 

information to the Commission and 

interested parties to demonstrate that they 

are accurately implementing their formula 

rates.

• At its June 2013 public meeting, the 

Commission invited PJM, MISO, and the 

relevant state entities to discuss the 

difficult issues related to the capacity 

deliverability across the PJM and MISO 

seam and then urged that the region 

propose milestones. In September 2013, 

the RTOs submitted an informational filing 

to provide a description of, and schedule 

for, Joint and Common Market initiatives. 

• In June 2013, the Commission approved 

the California Independent System 

Operator Corporation’s (CAISO’s) 

proposed implementation agreement to 

establish contractual terms under which 

CAISO will configure and expand its realtime energy market for use as energy 

imbalance service by PacifiCorp and its 

transmission customers across six states.

• In FY 2013, Commission staff developed 

the “2013 Annual Assessment of Demand 

Response and Advanced Metering 

Infrastructure” staff report. This report 

assesses electricity demand response 

resources, including those available from 

all consumer classes, as required by the 

Energy Policy Act of 2005 (EPAct 2005) 

section 1252(e)(3).

• A technical conference on Centralized 

Capacity Markets in RTOs/ISOs (AD13-7-

000) was held September 25, 2013 to 

consider how current centralized capacity 

market rules and structures are supporting 

the procurement and retention of 

resources necessary to meet future 

reliability and operational needs in 19 

states and the District of Columbia.

• On January 17, 2013, the Commission 

issued a notice of proposed rulemaking for 

Small Generator Interconnection 

Agreements and Procedures (Docket No. 

RM13-2-000). The NOPR proposed 

reforms intended to reduce the time and 

cost to process small generator 

interconnection requests and allow for 

more efficient interconnection of these 

resources to benefit customers. 

• A technical workshop about Small 

Generator Interconnection Agreements 

and Procedures (RM13-2-000) was held 

March 27, 2013. This workshop is 

convened to give stakeholders the 

opportunity to discuss the proposed 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 12

reforms to the pro forma Smart Grid 

Interoperability Panel and the pro forma 

Small Generator Interconnection 

Agreement and other related issues.

• In March 2013, the Commission issued a 

final rule amending the filing requirements 

for natural gas pipeline companies that 

choose to recover Commission-assessed 

annual charges through an annual charge 

adjustment (ACA) clause. Natural gas 

pipeline companies utilizing an ACA clause 

are no longer required to make separate 

annual tariff filings, but must now 

incorporate the Commission-authorized 

annual charge unit rate by reference to 

that rate, as published on the 

Commission’s website. 

• In July 2013, the Commission issued a 

final rule adding optional filing procedures 

for intrastate natural gas pipelines 

providing transportation service in 

interstate commerce pursuant to section 

311 of the Natural Gas Policy Act of 1978. 

The new optional filing procedures permit 

uncontested filings to be approved sixty 

days after being filed.

• In May 2013, the Commission issued a 

final rule revising its regulations 

concerning the form, composition, and 

filing of rates and charges by interstate oil 

pipelines for transportation in interstate 

commerce.

• In July 2013, the Commission issued a 

final rule changing the reporting 

requirements for the Annual Cost of 

Service Based Analysis Schedule in the oil 

pipeline industry’s annual report, the FERC 

Form No. 6. The modifications require 

reporting of additional financial information 

regarding the pipeline’s investment or rate 

base, regulated cost of capital for debt and 

equity capital, and composite income tax 

rate related to the regulated provision for 

income taxes. The additional data will 

allow both the Commission and industry 

stakeholders to more accurately analyze 

the financial performance of the oil 

pipelines.

• Commission staff negotiated settlements 

resulting in cumulative annual savings of 

approximately $263 million and one-time 

savings of approximately $124 million for 

American energy consumers, including:

natural gas pipeline proceedings which 

provide approximately $137 million in 

annual savings to the pipeline’s customers; 

a settlement of an oil pipeline case that will 

result in savings of over $100 million over 

a five year period and a separate oil 

pipeline proceeding which secured 

approximately $17 million in refunds for the 

pipeline’s customers.

• Commission staff fostered settlements 

which provide for the recovery of costs 

associated with seven new transmission 

projects that reflect the inclusion of five 

transmission rate incentives and will 

enable the integration and transfer of 

renewable energy across the Midwest.

• Commission staff facilitated fifteen 

settlements among various parties that

had entered into short-term energy 

transactions in the Pacific Northwest 

during the Western energy crisis in 2001,

ending a history of long, protracted 

litigation for these parties.

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FY 2013 Performance & Accountability Report

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OBJECTIVE 1.2: OVERSIGHT AND ENFORCEMENT

Increase compliance with the Commission’s rules and deter market manipulation.

STRATEGY 1

Promote internal compliance programs and self-reporting of violations

Performance Measure 8 

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

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

Year Target Result

FY 2013 55%

Target Met. 90% (18 out of 20) of compliance 

programs found to be adequate to 

demonstrate a culture of compliance.

In FY 2013, the Commission completed the review of 20 jurisdictional companies’ compliance 

programs as they related to the focus of the audits. In reviewing these compliance programs, the 

Commission determined that 90 percent of companies (18 out of 20) adequately demonstrated a 

culture of compliance. The Commission continues to see increased awareness of the benefits of 

strong compliance programs based on the Commission’s publicly issued audit reports and outreach 

efforts encouraging stronger compliance. In particular, the Commission is encouraged by proactive 

measures to enhance existing compliance programs and a general increase in cooperation on audits.

Performance Measure 9 

By FY 2014, 70 percent of compliance programs reviewed through investigations that involve 

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

Year Target Result

FY 2013 55%

Target Met. In 55% (10 out of 18) of the 

relevant cases, the Commission found 

compliance programs in place at the time of 

the violation to be sufficiently robust as to 

merit credit to reduce or eliminate penalties.

In FY 2013, the Commission finalized 18 settlements of investigations on a range of violations within 

the Commission’s jurisdiction, for example, violations of the anti-manipulation rule, Reliability 

Standards, prior filing requirements, open access transmission tariff requirements, hydroelectric facility 

licenses, and other rules, regulations and orders. Commission staff also opened 16 investigations in 

FY 2013 and continued dozens of other investigations involving potential market manipulation and 

other Commission regulations and tariff violations. 

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FY 2013 Performance & Accountability Report

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STRATEGY 2

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

Performance Measure 10 

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

approach.

Year Target Result

FY 2013 80% Target Met. 98% (47 out of 48) of audits 

planned using a risk-based approach.

During FY 2013, the Commission planned to conduct 48 audits of public utilities and natural gas 

pipeline companies. Of the 48 planned audits included in the Commission’s annual audit plan, the 

Commission used a risk-based methodology to plan 98 percent of the audits (47 out of 48). In FY 

2013, the Commission completed 29 audits which resulted in the issuance of 360 recommendations 

for corrective actions to public utilities and natural gas pipeline companies. During FY 2013, 

Commission audits resulted in $15 million in refunds and savings to utility ratepayers. 

The use of a risk-based audit approach was key to maximizing the use of staff resources, while at the 

same time selecting audit candidates that pose the most risk of not complying with the Commission’s 

statutes, orders, policies, rules, and regulations.

OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2013

OBJECTIVE 1.2: OVERSIGHT AND ENFORCEMENT

• The Commission issued Order No. 770 to 

change the process for filing Electric 

Quarterly Reports (EQR) and adopting a 

web-based approach to filing EQRs. The 

new approach serves the public and 

enhances market transparency by 

upgrading the EQR software from an 

outmoded, ineffective, and unsustainable 

system. Market transparency is enhanced 

under the new software by ensuring that 

filed data is screened for formatting and 

errors before it is made public. 

• In FY 2013, the Commission fully 

implemented the data collection regimen 

prescribed in Order No. 760 for five of the 

six organized markets; New York 

Independent System Operator (NYISO)

requested and was granted additional time 

to comply. Each organized market 

submits to the Commission, on a daily 

basis, its latest data on relating to physical 

and virtual offers and bids, market awards, 

resource outputs, marginal cost estimates, 

shift factors, financial transmission rights, 

internal bilateral contracts, uplift, and 

interchange pricing. Since the beginning 

of the fiscal year, the Commission has 

collected over 2 billion lines of data. While 

much of this data is considered market 

sensitive and is not available to the public, 

the Commission is using this data to 

screen for improper behavior within the 

markets. 

• In FY 2013, the Commission fully 

implemented Order No. 771 which 

required participants in electric markets to 

grant Commission access, on a non-public 

and ongoing basis, to the complete 

electronic tags (e-Tags) used to schedule 

the transmission of electric power 

interchange transactions in wholesale 

markets. This Order was implemented 

with minimal burden on market participants 

in that the organization that maintains the 

e-Tag clearance system adjusted the 

submission process to automatically 

include the Commission as a party on all 

e-Tags. The Commission was able to 

begin accessing and analyzing all new eTags on the rule’s effective date of March 

15, 2013.

• In January 2013, the Commission 

approved a settlement between OE and 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 15

Deutsche Bank, for a $1.5 million civil 

penalty and $172,645 in disgorgement that 

resolved an order show cause proceeding 

involving alleged violations of the FPA and 

the Commission’s anti-manipulation rule 

and accuracy requirements.

• In March 2013, the Commission approved 

a settlement between OE and Rumford 

Paper Company, for a $10 million civil 

penalty and over $2.8 million in 

disgorgement, that resolved an order to 

show cause proceeding initiated in July 

2012 involving alleged violations of the 

FPA and the Commission’s antimanipulation rule. Separately, in August 

2013 the Commission resolved three 

related orders to show cause involving 

Lincoln Paper and Tissue, Competitive 

Energy Services, LLC, and Richard 

Silkman through issuance of penalty 

assessment orders confirming OE’s 

findings of violations of the FPA and the 

Commission’s anti-manipulation rule.

• In July 2013, the Commission approved a 

settlement between OE and J.P. Morgan 

Venture Energy Corporation (JPMVEC), 

resolving allegations of violations of the 

FPA, the Commission’s anti-manipulation 

rule, and the CAISO and MISO tariffs 

concerning twelve separate JPMVEC 

schemes. 

• In July 2013, the Commission resolved an 

October 2012 order to show cause 

proceeding against Barclays Bank, PLC 

and four of its traders by issuing a penalty 

assessment order confirming OE staff’s 

findings of violations of the FPA and the 

Commission’s anti-manipulation rule. 

• In July 2013, the US Court of Appeals for 

the District of Columbia upheld a June 

2011 Commission order granting summary 

judgment and assessing a penalty 

confirming OE staff’s findings of violations 

after issuing an order to show cause in the 

Quntum Energy/Kourouma matter. 

• In August 2013, the Commission issued an 

order to show cause in the BP America 

Inc. matter involving alleged violations of 

the Natural Gas Act and the Commission’s 

anti-manipulation rule.

• In November 2012, the Commission 

launched investigations into the rates 

charged by two interstate natural gas 

pipeline companies to determine whether 

the companies’ revenues were 

substantially over-recovering the cost of 

providing services, resulting in unjust and 

unreasonable rates charged to customers. 

The Commission’s investigations stem 

from its annual review of the cost and 

revenue information submitted by 

interstate natural gas companies in their 

annual financial report to the Commission, 

the FERC Form No. 2. These two 

investigations resulted in uncontested 

settlements resolving all issues and 

providing annual savings of $45 million to

customers. 

• In FY 2013, the Commission issued a 

Notice of Inquiry (NOI) on Enhanced 

Natural Gas Market Transparency on 

November 15, 2012 to seek comment on 

whether the Commission should obtain 

physical natural gas sales data directly 

from market participants.

• In November 2012, the Commission 

suspended JPMVEC’s market-based rate 

authority to sell energy, capacity and 

ancillary services in wholesale electricity 

markets for six-months beginning April 1, 

2013, for submitting false or misleading 

information to the Commission and CAISO 

in violation of section 35.41(b) of the 

Commission’s regulations. 

• In FY 2013, the Commission received 81 

self-reports of violations. Staff reviewed 

every self-report promptly to determine if 

any warranted opening an investigation.

• In FY 2013, the Commission received 158 

calls to its Enforcement Hotline, each of 

which received prompt attention. Two of 

these calls resulted in the opening of an 

investigation.

• In June 2013, the Commission authorized 

the proposed merger of Entergy 

Corporation and ITC Holdings Corporation 

as being consistent with the public interest 

and meeting the Commission’s merger 

policy. The order also facilitated the 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 16

complex integration of the new companies’ 

transmission assets into MISO.

• In FY 2013, the Commission commenced 

27 audits to ensure compliance with 

Commission regulations in the areas of 

formula rates, market-based rates, gas 

tariffs, transmission incentives, demand 

response, mergers, nuclear 

decommissioning, accounting, and 

reporting. 

• The Commission completed audits of two 

major utilities involved with compliance 

with transmission incentive requirements 

and integrating significant alternative 

power generation in the western 

interconnect, Southern Californian Edison 

and Pacific Gas & Electric.

• In FY 2013, Commission staff has 

continued to perform surveillance and 

analysis of data relating to physical natural 

gas and electric power markets and 

related financial products by developing 

and implementing surveillance tools to 

detect potential manipulation, 

anticompetitive behavior, and other 

anomalous activity. Specifically, staff

developed and routinely ran screening 

mechanisms for market data related to 

daily and monthly natural gas trading at 

over 80 hubs. Electric market screens for 

both organized and exchange traded 

markets utilizing incoming Order 760 

related data, EQR data, and exchange 

data were also routinely run. Screen 

activities resulted in a number of 

Memorandum of Understanding (MOU)

requests to other government agencies, 

fact finding outreach to market 

participants, and referral of matters for 

investigation to the Commission’s Division 

of Investigation. 

• In FY 2013, Commission staff identified 

potential subjects of nonpublic 

investigations, conducted forensic analysis 

of complex market data and information to 

assist in determining whether manipulation 

or other improper conduct occurred or is 

occurring. 

GOAL 2: INFRASTRUCTURE

OBJECTIVE 2.1: INFRASTRUCTURE DEVELOPMENT AND SITING

Increase efficient infrastructure consistent with demand

STRATEGY 1

Encourage new electric transmission facilities that advance efficient transmission system operation

Performance Measure 11 

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

technologies.

Year Target Result

FY 2013 35%

Target Met. Of the 25 projects that met the 

criteria, 16 (64%) incorporated advanced 

technologies.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 17

STRATEGY 2

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

Performance Measure 12 

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

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

solutions involving any of generation, transmission, and demand resources.

Year Target Result

FY 2013 Monitor implementation and performance

Target Met. In FY 2013, the Commission 

issued fifteen orders addressing all of the 

initial regional compliance filings. Also, 

Commission staff attended, in person and 

through teleconference, various Order No. 

1000 open meetings held in each 

transmission planning region. At these 

meetings, staff provided assistance to public 

utilities, stakeholders and other interested 

parties regarding the interregional compliance 

requirements of Order No. 1000. 

STRATEGY 3

Promote efficient design and operation of natural gas facilities

Performance Measure 13 

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

feasibility of installing waste heat recovery systems.

Year Target Result

FY 2013 80%

Target Met. Between FYs 2010 and 2013, 

Commission staff examined a total of 81% of 

the Commission’s jurisdictional natural gas 

companies (129 of 159) for feasibility of 

installing waste heat recovery systems. In FY 

2013 specifically, Commission staff examined 

31 companies.

The Commission continued its efforts to explore ways to improve the efficiency in the design and 

operation of jurisdictional natural gas facilities. Between FYs 2010 through 2013, Commission staff 

examined 81 percent of the Commission’s jurisdictional natural gas companies for feasibility of 

installing waste heat recovery systems. By the end of FY 2013, 25 jurisdictional pipelines have 

identified 75 stations that meet the initial requirements for feasibility. Commission staff also conducted 

quarterly reviews of Electronic Bulletin Boards to gauge participation across the industry, and reviewed 

the FERC Form 567, annual flow diagrams, to identify which companies have facilities that may be 

candidates for waste heat recovery efforts in future years.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 18

OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2013

OBJECTIVE 2.1: INFRASTRUCTURE DEVELOPMENT AND SITING

• In FY 2013, the Commission approved rate 

incentives for 6 projects, totaling 484 miles 

of new transmission and a billion dollar 

investment in infrastructure.

• The Commission issued 35 orders 

authorizing 3,210 MW megawatts of 

hydroelectric capacity, including 50 MW of 

new capacity and authorization of the first 

tidal energy device in the nation, which is 

now operating in Cobscook Bay, Maine. 

Thirty-four National Environmental Policy 

Act (NEPA) documents and 12 study plan 

determinations were also issued, including 

a study plan for the controversial SusitnaWatana Project, the first large, new dam 

proposed in the U.S. in decades. 

• The Commission issued 449 

environmental documents supporting the 

authorization of more than 3,800 Million 

cubic feet per day (MMcf/d) of natural gas 

pipeline capacity and over 56,000 MMcf of 

new natural gas storage capacity. 

• The Commission approved the final design 

for the Sabine Liquefaction Project, the 

first LNG project authorized to export U.S. 

gas to both free-trade and non-free-trade 

agreement countries.

• In January 2013, the Commission issued a 

Policy Statement to clarify and refine its

policies to facilitate the development of 

new merchant transmission projects and 

new nonincumbent, cost-based, 

participant-funded transmission projects.

The Policy Statement provided more 

flexibility in the allocation of capacity for 

customers and transmission developers, 

while adhering to open access policies. 

• In August 2013, the Commission accepted 

Lake Erie Clean Power Connector’s 

application, inter alia, to sell transmission 

rights at negotiated rates on a 60-mile, 

2000 MW high-voltage direct current 

merchant transmission project that 

originates in Ontario, Canada and 

terminates in Erie, Pennsylvania. This 

was the first filing submitted under the 

Commission’s merchant policy statement 

(Docket Nos. AD12-9 and AD11-11). 

• Technical conferences on Coordination 

between Natural Gas and Electricity 

Markets (AD12-12-000) were held 

February 13, 2013 and April 25, 2013. 

The February 13, 2013 technical 

conference solicited stakeholder input 

regarding information sharing and 

communications issues between natural 

gas and electric power industry entities 

while the April 25, 2013 technical 

conference focused on natural gas and 

electric scheduling, and issues related to 

whether and how natural gas and electric 

industry schedules could be harmonized in 

order to achieve the most efficient 

scheduling systems for both industries.

• On July 18, 2013, a NOPR was issued for 

Communication of Operational Information 

between Natural Gas Pipelines and 

Electric Transmission Operators (RM13-

17-000). This NOPR intended to promote 

reliable service and operational planning 

by removing potential barriers to 

communication between interstate natural 

gas pipelines and electric transmission 

operators. 

• The Commission hosted an information 

exchange with Canada on marine and 

hydrokinetic (MHK) technologies, and cohosted a symposium with DOE on the 

findings of recent MHK research. 

• The Commission continued to conduct 

outreach meetings with the hydropower 

industry. The focus of the recreation 

workshops was to assist licensees in 

completing the FERC Form 80 which is a 

compilation of recreation facilities and user 

data. The workshops also encouraged 

discussion on the development of 

recreational opportunities at FERC 

projects. The shoreline management 

workshop assisted licensees in dealing 

with increased pressures for development 

around FERC reservoirs in conjunction 

with environmental, safety, and security 

concerns. The workshops provided an 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 19

educational forum to assist licensees in 

understanding the Commission’s policies 

and how they can implement their 

licenses. 

• The Commission established successful 

working relationship with other agencies to 

facilitate interagency cooperation, 

including a draft MOU with the California 

State Water Resources Control Board for 

the coordination of ILP pre-filing activities; 

an MOU with the USCG on interagency 

cooperation on MHK projects; two 

committees established by the American 

Petroleum Institute to develop guidelines 

for recommended practices for the design, 

operation, and integrity management of 

natural gas storage facilities; and the 

Communication Security, Reliability, and 

Interoperability Council to provide technical 

assistance to the FCC on MHK projects 

and subsea cables. 

OBJECTIVE 2.2: SAFETY

Minimize risk to the public.

STRATEGY 1

Incorporate risk-informed decision making into the dam safety program

Performance Measure 14 

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

program.

Year Target Result

FY 2013 Finalize policy and technical guidelines

Target Met. Ten chapters finalizing the policy 

and technical guidelines on the use of Risk 

Informed Decision Making in the 

Commission’s Dam Safety Program have 

been completed.

The Commission finalized ten chapters of policy and technical guidance to incorporate risk-informed 

decision-making into its dam safety program. This guidance was developed in an open, collaborative 

process with representatives of the hydropower industry, including FERC-regulated licensees. These 

guidelines will continue to enhance and evolve the dam safety program and we will better understand 

the potential failure modes of dams as well as understand the potential consequences these failure 

modes have on life, health, and property. Through the use of risk methodologies, the Commission will 

also improve its ability to evaluate risk reduction alternatives. 

OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2013

OBJECTIVE 2.2: SAFETY

• The Commission, in response to increased 

interest in LNG exports, established 

protocols and processes with the United 

States Department of Transportation

(USDOT) and the United States Coast 

Guard (USCG) to address jurisdictional 

and regulatory issues and ensure proper 

oversight of non-conventional LNG 

liquefaction and storage facilities. In 

addition, based on sound engineering 

principles and peer review, the 

Commission validated the USDOT’s LNG 

fire model to ensure the credibility of our 

safety review of LNG facilities. 

• The Commission completed over 68 dam 

safety remediations costing licensees over 

$489 million; detected possible dam safety 

deficiencies at 539 dams, which are under 

investigation or remediation; and 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 20

completed 2,150 dam safety engineering 

inspections, 8,370 engineering evaluations 

and studies, 170 independent inspection 

report reviews, and 110 Emergency Action 

Plan tests, all to ensure the safety of 

jurisdictional dams and the people who live 

and recreate at them.

OBJECTIVE 2.3: RELIABILITY

Provide for the reliable operation of the bulk power system through oversight of the development and 

implementation of mandatory and enforceable standards.

STRATEGY 1

Process reliability standards in a timely manner

Performance Measure 15 

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

percent of the time.

Year Target Result

FY 2013 80%

Target Met. 100% of filed reliability 

standards have orders issued within 18 

months (includes regional and Critical 

Infrastructure Protection (CIP) standards).

STRATEGY 2

Monitor, audit, and enforce Reliability Standards

Performance Measure 16 

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

frequency of repeat violations by at least 10 percent.

Year Target Result

FY 2013 Identify number of repeat violations using 

NOPs

Target Met. The Commission developed a 

report, tracking and analyzing repeat 

violations.

STRATEGY 3

Identify reliability parameters that affect goals of reducing carbon and increasing the penetration of 

renewable energy resources on the electric transmission grid

Performance Measure 17 

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

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

finalized.

Year Target Result

FY 2013 Present analysis to industry

Target Met. The Commission received and 

reviewed industry comments in response to 

the Commission-issued report on Frequency 

Response.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 21

OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2013

OBJECTIVE 2.3: RELIABILITY

• The Commission approved the ERO’s filed 

definition of “bulk electric system” to help 

ensure consistency in identifying and 

registering components of the bulk electric 

system that are subject to the approved 

Reliability and CIP Standards across the 

country. 

• The Commission directed the North 

American Electric Reliability Corporation 

(NERC) to develop Reliability Standards to 

mitigate the impact of geomagnetic 

disturbances (GMD) on the reliability of the 

Bulk-Power System. 

• The Commission approved the ERO’s 

proposed revisions to the Reliability 

Standard for Transmission Vegetation 

Management. This Standard was 

developed to require vegetation 

management practices that effectively 

protect against vegetation-related 

transmission outages. 

• The Commission proposed to approve 

Version 5 of the ERO’s CIP Standards, 

which pertain to the cyber security of the 

bulk electric system. CIP version 5 

includes new cyber security controls and 

extends the scope of the systems that are 

protected by the CIP Standards. 

• The Commission proposed to retire 34 

requirements within 19 Reliability 

Standards that (1) provide little protection 

for Bulk-Power System reliability or (2) are 

redundant with other aspects of the 

Reliability Standards. The Commission 

also proposed to withdraw 42 Commission 

directives for the ERO to develop 

modifications to Reliability Standards. The 

directives at issue have either been 

addressed in some other manner, are 

redundant with another directive or provide 

general guidance as opposed to a specific 

directive. 

• In FY 2013, the Commission reviewed 57 

notices of penalty by the ERO addressing 

1,095 violations of Reliability Standards. 

• In November 2012, the Commission 

issued an order directing the NERC to 

develop and file by February 2013 written 

criteria for determining whether a NERC 

reliability activity is eligible to be funded 

under FPA section 215, so that the 

Commission can ensure that all NERC’s 

activities funded pursuant to FPA section 

215 are statutory. In April 2013, the 

Commission approved NERC’s proposed 

criteria with modifications. 

• Commission staff concluded the following 

audits of utility compliance with the 

reliability standards: (1) in PA11-21-000, 

an audit of PJM’s compliance with CIP 

Standards and performance as a 

Transmission Operator and Transmission 

Planner; (2) in PA12-17-000, an audit of 

Bonneville Power Administration’s 

compliance with CIP and bulk electric 

system operations and planning standards; 

and (3) in PA12-11-000, an audit of Salt 

River Project’s compliance with CIP and 

bulk electric system operations and 

planning standards. These audits resulted 

in several recommendations of reliability 

enhancement measures, and the 

Commission is monitoring implementation 

by the entities.

• The Commission also finalized the NERC 

audit and settlement and monitored the 

progress of the implementation of over 

90% of the audit report recommendations.

• In FY 2013, Commission staff completed 

three Regional Entity (RE) budget audits 

including the audits of the Midwest 

Reliability Organization (MRO), 

ReliabilityFirst (RFE), and the SouthEast 

Reliability Corporation (SERC). The REs 

have already implemented nearly all audit 

recommendations.

• In FY 2013, Commission staff issued 

expansive audit reports of two additional 

Regional Entities – the Western Electric 

Coordinating Council (WECC) and the 

Northeast Power Coordinating Council 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 22

(NPCC), which included not only budget 

areas but also operations under the ERO 

Delegation Agreements between the REs 

and NERC.

• The Commission opened 8 new 

investigations in FY 2013 involving 

potential reliability violations.

OTHER NOTEWORTHY ACCOMPLISHMENTS DURING FY 2013 IN GOAL 2

The Commission established the Office of 

Energy Infrastructure Security to leverage its 

existing resources in a coordinated manner 

to provide leadership, expertise, and 

assistance in identifying, communicating, 

and seeking comprehensive solutions to 

significant potential cyber and physical 

security risks to the energy infrastructure 

under the Commission’s jurisdiction. It also 

uses the Commission’s current authorities 

under the FPA, the Natural Gas Act, and the 

Interstate Commerce Act to identify current 

and emerging defense and mitigation 

strategies for cyber and physical security 

threats to energy infrastructure. 

Through this new office, the Commission has 

already made several noteworthy 

accomplishments that support all three 

Objectives in Goal 2.

• The Commission staff has conducted 

modeling of power system facilities and 

convened meetings with the applicable 

industry owners and operators to review 

the results. In addition, staff discussed its 

modeling with the Department of 

Homeland Security to help it accomplish 

Section 9 of the President’s February 12, 

2013 Executive Order.

• The Commission staff performed two 

proactive on-site physical security reviews 

and, with Department of Defense, one 

reactive physical security review and 

provided detailed recommendations for 

security improvements to the infrastructure 

owners. In addition, staff has conducted 

one system network architectural review to 

address cyber vulnerabilities to prevent 

attacks and plans to conduct several more 

network reviews as requested by industry 

entities.

• The Commission staff has participated in 

more than twenty security threat briefings 

and presentations communicate potential 

cyber and physical security risks and 

mitigation strategies to the energy 

infrastructure under the Commission’s 

jurisdiction. These briefings were 

performed in collaboration with 

Department of Homeland Security, 

Department of Energy, Department of 

Defense, Federal Bureau of Investigation, 

Nuclear Regulatory Commission, and 

others in the intelligence community as 

well as the State Commissions who also 

have jurisdictional oversight of the energy 

infrastructure.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 23

FINANCIAL PERFORMANCE OVERVIEW

As of September 30, 2013, 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 to fund its 

operations that is available until expended. Of 

the Commission’s full appropriation of $304.6 

million in FY 2013, $15.3 million was 

sequestered and identified as temporarily 

unavailable which resulted in the 

Commission’s FY 2013 new budget authority 

being $289.3 million. Additional funds 

available to obligate in FY 2013 were $20.9 

million from prior-year unobligated 

appropriations and $0.8 million of prior-year 

obligations that were subsequently deobligated in the current year. The sum of all 

operating funds available to obligate in FY 

2013 was $311.0 million. Separately, the 

Commission receives an appropriation from 

Congress to pay states the fees it collected for 

the occupancy and use of public lands. The 

Commission’s payment to states budget 

authority for FY 2013 was $3.0 million, which 

included a $0.2 million sequestered amount 

that was identified as temporarily unavailable. 

Consistent with the requirements of the 

Omnibus Budget Reconciliation Act of 1986, 

as amended, the Commission collected fees to 

offset 100% of its budget authority in FY 2013.

Costs by Function. The Commission 

incurred costs of $305.2 million in FY 2013, 

which was a decrease of $5.2 million from FY 

2012. Approximately 75 percent of costs were 

used for salaries and benefits. The remaining 

25 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 to $227.8

million since 2012 while the net effect on the 

other cost categories was a decrease of $6.2

million. 

Costs by Function (millions)

Costs FY 2013 FY 2012

Salaries and Benefits $227.8 $226.8

Travel/Transportation 2.8 3.8

Rent/Comm/Utilities 24.9 25.8

Contract Support 43.8 43.4

Printing/Supplies/Other 5.9 10.6

Total Costs $305.2 $310.4

Audit Results. The Commission received an 

unmodified audit opinion on its FY 2013 

financial statements. This was the twentieth 

consecutive year the Commission has 

received an unmodified opinion. For FY 2013, 

no material weaknesses or significant 

deficiencies were identified by the audit.

Financial Statement Highlights. The 

Commission's financial statements summarize 

the financial activity and financial position of 

the agency. The financial statements and 

footnotes appear in the financial section of this 

report. 

Analysis of the Balance Sheet

The Commission's assets were approximately 

$117.6 million as of September 30, 2013. This 

is a decrease of $66.7 million from September 

30, 2012. The assets reported in the 

Commission's Balance Sheet are summarized 

in the Asset Summary table on the next page.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 24

Assets Summary (millions)

Assets FY 2013 FY 2012

Fund Balance with 

Treasury $76.4 $163.6

Accounts Receivable, 

net 29.1 11.3

Property and 

Equipment, net 12.1 9.4

Total Assets $117.6 $184.3

The Fund Balance with Treasury represents 

the Commission's largest asset of $76.4 million 

as of September 30, 2013, a decrease of 

$87.2 million from the FY 2012 balance. The 

decrease is primarily due to the following: a 

decrease resulting from a $104 million 

disbursement of the FY 2012 settlement of 

market manipulation to participating settlement 

parties, and an increase resulting in $2.4 

million revenue under protest being higher due 

to hydropower licensees protesting a portion of 

the Commission’s FY 2013 annual charges. It 

is also due to an increase of $15.3 million 

sequestered appropriated funds that were 

unavailable for obligation, and an increase in 

payments to states not yet disbursed in FY 

2013 due to sequestration. 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 $29.1 million as of September 30, 2013. 

This balance represents the outstanding 

amounts due from annual charges, civil 

penalties or other penalties issued by the 

Commission to entities under its regulation. 

The $17.8 million net increase in FY 2013 

compared to FY 2012 is primarily due to a 

higher outstanding balance for Hydropower 

administration receivables of $3.7 million and 

$14.2 million more in civil and other penalties 

imposed by the Commission.

The Property and Equipment, net was $12.1 

million as of September 30, 2013, an increase 

of $2.7 million from FY 2012. The balance is 

comprised of the net value of the 

Commission’s equipment, furniture, leasehold 

improvements, computer hardware and 

software. The $2.7 million net increase is 

primarily due to the on-going development of 

the internal software and related capital items. 

The Commission's liabilities were $75.1 million 

as of September 30, 2013. The Liabilities 

Summary table shows a decrease in total 

liabilities of $90.8 million from FY 2012. The 

decrease is primarily due to the payment of 

$104 million in the disgorged funds disbursed 

in FY 2013. The decrease is offset by higher 

civil penalties of $14.5 million yet to be paid 

out. The $75.1 million balance consists 

primarily of accrued expenditures for payroll, 

benefits, operating expenses, and collected 

disgorged funds. 

Liabilities Summary (millions)

Liabilities FY 2013 FY 2012

Accounts Payable $13.4 $15.0

Federal Employee 

Benefits 5.2 4.7

Resources 

Transferable to 

Treasury and Other 

Federal Entities

21.1 3.3

Accrued Leave 14.7 14.3

Other Liabilities 20.7 128.6

Total Liabilities $75.1 $165.9

The difference between total assets and total 

liabilities is the net position. The 

Commission’s net position was approximately 

$42.6 million as of September 30, 2013. The 

increase in net position in FY 2013 compared 

to FY 2012 is the result of fewer resources 

expended by the Commission in FY 2013 as 

compared to FY 2012 and the impact of

current year billings offset by over collections 

in FY 2012.

Net Position Summary (millions)

Position FY 2013 FY 2012

Unexpended 

Appropriations $49.8 $37.6

Cumulative Results of 

Operations (7.2) (19.2)

Total Net Position $42.6 $18.4
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 25

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 (dollars)

Operation FY 2013 FY 2012

Just and Reasonable 

Rates, Terms, and 

Conditions

$(19,406) $0

Infrastructure (16,229) 0

Net Cost of 

Operations ($35,635) $0

The Commission's net cost of operations for 

FY 2013 was ($35,635) as a result of unbilled 

prior year reimbursable costs. 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.

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 increase in net position in 

FY 2013 compared to FY 2012 is the result of 

fewer resources expended by the Commission 

in FY 2013 as compared to FY 2012 and the 

impact of current year billings offset by over 

collections in FY 2012.

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 2013, the 

Commission had budgetary resources 

available of $314.0 million, the majority of 

which was derived from new spending 

authority. This represents a decrease of $15.0

million over FY 2012 budgetary resources 

available of $329.0 million. 

The status of budgetary resources includes 

obligations incurred of $292.6 million, or 93.2% 

percent of funds available. Similarly, FY 2012 

obligations incurred were $308.1 million or 

93.7% percent of funds available. The 

unobligated budget authority available at 

September 30, 2013 was $21.4 million, which 

is an increase of $0.5 million from the FY 2012 

amount of $20.9 million.

Total net outlays for FY 2013 were $(305.7) 

million, which represents a $126.6 million 

increase from FY 2012 net outlays of $(179.1) 

million. The increase from last year is a result 

of approximately $11.1 million in lower gross 

outlays and a $115.4 million increase in 

distributed offsetting receipts in FY 2013 

compared to FY 2012. The increase in

distributed offsetting receipts was largely due 

to a $147.7 million increase in civil penalty 

collections in FY 2013 netted by $32 million

less in excess appropriations.

Analysis of the Statement of Custodial 

Activity

The Statement of Custodial Activity displays 

the total Custodial Revenue and Disposition of 

Collections related to that revenue activity. 

This statement ensures that revenue billed and 

collected by the Commission on behalf of other 

federal agencies will not be reported twice as 

revenue on the consolidated government’s

Statement of Net Cost. In FY 2013, the 

Commission reported $341.6 million in 

custodial revenue as of September 30, 2013

compared to $179.2 million in FY 2012. The 

majority of the increase over FY 2012 is due to 

the collection of higher civil penalties in the 

amount of $147.7 million charged to entities 

under the Commission’s regulation for FY 

2013 and subsequently transferred to the U.S. 

Treasury.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

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 Circular No. A-123;

• Federal Financial Management Improvement Act of 1996;

• Prompt Payment Act;

• Debt Collection Improvement Act of 1996; and

• Improper Payments Information Act (IPIA)

Management Assurances

During Fiscal Year 2013, 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 Circular No. 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 external auditors’ FY 2013 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 No. A-123, Management's 

Responsibility for Internal Controls, we evaluated the effectiveness and efficiency of our internal 

controls over operations and our compliance with applicable laws and regulations as of September 30, 

2013. 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 No. 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, 2013, are operating effectively.

Furthermore, an evaluation of the financial management system for the Commission has also been 

conducted in accordance with federal guidelines. The results of the review indicate that the system 

conforms to federal financial management system requirements. The financial management system 

evaluation did not disclose any material weaknesses.

 

Jon Wellinghoff

Chairman

Federal Energy Regulatory Commission

November 2013
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 27

Federal Managers’ Financial Integrity Act of 

1982

The Federal Managers' Financial Integrity Act 

of 1982 (Integrity Act) mandates that agencies 

establish controls that reasonably ensure that: 

(i) obligations and costs comply with applicable 

laws; (ii) assets are safeguarded against 

waste, loss, unauthorized use, or 

misappropriation; and (iii) revenues and 

expenditures are properly recorded and 

accounted for. This act encompasses 

program, operational, and administrative areas 

as well as accounting and financial 

management. The Integrity Act requires the 

Chairman to provide an annual assurance 

statement on the adequacy of management 

controls and conformance of financial systems 

with Government wide standards.

Management Control Review Program.

Annually, managers throughout the 

Commission are responsible for ensuring that 

effective controls are implemented in their 

areas of responsibilities. Each office director 

and regional administrator prepared an annual 

assurance statement that identified any control 

weaknesses that required the attention of the 

Chairman. These statements were based on 

various sources and included:

• Management knowledge gained from the 

daily operation of agency programs and 

reviews;

• Management reviews;

• Annual performance plans; and,

• 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 2013 Integrity Act Results. 

The Commission evaluated its management 

control systems for the fiscal year ending 

September 30, 2013. 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 2013 OMB Circular No. A-123, 

Appendix A

The Commission evaluated its internal controls 

over financial reporting for the fiscal year 

ending September 30, 2013. 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 Financial Management 

Improvement Act of 1996

The Federal Financial Management 

Improvement Act of 1996 (FFMIA) requires 

each agency to implement and maintain 

systems that comply substantially with: (i) 

FFMIA system requirements, (ii) applicable 

Federal accounting standards, and (iii) the 

U.S. standard general ledger at the transaction 

level. The FFMIA requires the Chairman to 

determine whether the agency's financial 

management systems comply with the FFMIA 

and to develop remediation plans for systems 

that do not comply. Our review of the 

Commission’s financial management system in 

FY 2013 demonstrated that we fully comply 

with this act.

FY 2013 FFMIA Results.

As of September 30, 2013, the Commission 

evaluated its financial management system to 

determine if it complied with applicable Federal 

requirements and accounting standards 

required by FFMIA. 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 FFMIA.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 28

Prompt Payment Act

The Prompt Payment Act requires Federal 

agencies to make timely payments to vendors 

for supplies and services, to pay interest 

penalties when payments are made after the 

due date, and to take cash discounts when 

they are economically justified. As of 

September 30, 2013, the Commission made 

99.4% of its payments, that were subject to the 

Prompt Payment Act, on-time. The 

Commission incurred $209.64 in interest 

penalties in FY 2013 and $0.00 in FY 2012. 

The agency made 100% of its vendor 

payments electronically in FY 2013.

Debt Collection Improvement Act of 1996 

The Debt Collection Improvement Act of 1996 

was enacted to enhance the ability of the 

Federal Government to service and collect 

debts. The agency goal is to maintain the 

delinquent debt owed to the Commission at 

year-end at less than two percent of its current 

annual billings. As of September 30, 2013, 

delinquent debt was approximately $6.7 

million, which is approximately two 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.

Improper Payments Information Act (IPIA) 

Reporting

The Commission has performed a review of its 

payments through September 30, 2013 and it 

has processed 99% of its payments without 

error. The Commission found only 89 

erroneous payments out of 6,350 total 

payments. The value of those erroneous 

payments totaled $2,367,150 out of total 

payments of $158,939,296 for FY 2013.

POSSIBLE FUTURE EFFECTS OF EXISTING EVENTS AND CONDITIONS

Certain hydroelectric licensees have filed 

appeals claiming the Commission erroneously 

accepted certain “other agency costs” (costs 

incurred by Other Federal agencies in 

administering Part I of the FPA component of 

the licensees’ annual charges) in its calculation 

of FY annual charges. In addition, certain 

licensees have filed appeals against their 

hydropower administrative annual charges to 

seek a partial or 100% municipal exemption.

The combined liability of these appeals total 

$4.7 million and $2.2 million as of September 

30, 2013 and 2012, respectively, and is 

included herein as revenue collected under 

protest. The FY 2013 liability is fully funded 

and therefore poses no adverse or material 

future effect on the Commission’s financial 

position. 

In addition, the Commission has two Equal 

Employment Opportunity cases pending where 

the probability of success for the claimant is 

reasonably possible. The amount of monetary 

relief in one case could total $125,000, as of 

September 30, 2013. The amount of monetary 

relief in the other case could total $100,000, as 

of September 30, 2013. 

LIMITATIONS OF THE FINANCIAL STATEMENTS

The financial statements have been prepared 

to report the financial position and results of 

operations of the FERC, pursuant to the 

requirements of 31 U.S.C. 3515(b). While the 

statements have been prepared from the 

books and records of the Commission in 

accordance with accounting principles 

generally accepted in the United States of 

America for Federal entities and the formats 

prescribed by OMB, the statements are in 

addition to the financial reports used to monitor 

and control budgetary resources which are 

prepared from the same books and records. 

The statements should be read with the 

realization that they are for a component of the 

U.S. Government, a sovereign entity. One 

implication of this is that liabilities cannot be 

liquidated without legislation that provides 

resources to do so.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 29

Financial Section
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 30

FEDERAL ENERGY REGULATORY COMMISSION

WASHINGTON, DC 20426

Office of the 

Executive Director

Message from the Chief Financial Officer

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

comparative financial results for fiscal years 2013 and 2012. The accompanying financial statements 

and related notes fairly present the Commission’s financial position and were prepared in conformity 

with accounting principles generally accepted in the United States of America, and requirements set 

forth in Office of Management and Budget (OMB) Circular No. A-136, Financial Reporting 

Requirements.

During FY 2013, the Commission continued to focus on its statutory responsibilities. Through 

strict adherence to its primary mission, the Commission assisted consumers in obtaining reliable, 

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

market means. In fulfilling this mission, the Commission continued to establish policies and processes 

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

energy and natural gas are just, reasonable and not unduly discriminatory or preferential. Additionally, 

the agency took action to continually promote the development of safe, reliable, and efficient energy 

infrastructure that serves the public interest. 

My organization focused on core responsibilities that supported mission accomplishment and 

maximized resource utilization. In this regard, we maintained a robust internal control environment 

which facilitated compliance with an extensive regulatory framework. We continued to implement 

innovative processes which optimized productivity and delivered required goods and services to our 

customers. Moreover, we have built and maintained a highly-skilled workforce that successfully 

executed operational and policy requirements. This strategic approach to managing our acquisition 

and financial functions has aligned my organization’s efforts with the broader mission of the agency. 

This Performance and Accountability Report further demonstrates this vital alignment of resources to 

agency mission.

Additionally, I would like to offer the following achievements to demonstrate the effectiveness 

and efficiency of the Commission’s acquisition and financial functions. 

• The Commission obtained an unmodified opinion on its financial statements for the 20th 

consecutive year. In addition, it strengthened its internal control program by continuing on-going selfassessment efforts as required by OMB Circular No. A-123, Management’s Responsibility for Internal 

Control. The Commission has reasonable assurance that its internal controls over financial reporting 

were operating effectively during FY 2013.

• The Commission collected over $304 million in offsetting receipts during the fiscal year. 

Financial management staff issued 100% of the related regulatory assessments electronically to 

jurisdictional entities and hydropower licensees. As a result of these efforts, the Commission exceeded 

its statutory collection requirements to offset its annual appropriation by more than $279 thousand.

• The Commission awarded over 27% of its total contract dollars to small, women-owned and 

minority businesses. Additionally, in responding to accountability initiatives established by the 

President, the Commission has reduced its combined share of dollars obligated on high risk contracts 

by 12%. This exceeded the administration’s established target for FY 2013 of 10%. 
FY 2013 Performance & Accountability Report 

Our keen focus on program performance and significant financial accomplishments demonstrate the 

high regard we have for accountability and public disclosure. This report demonstrates a lasting 

commitment to fulfill our fiduciary responsibilities to Commission stakeholders. I am proud of the role 

my organization has played in being effective stewards protecting the interests of the American public. 

W. Doug Foster, Jr. 

Chief Financial Officer 

Federal Energy Regulatory Commission 

November 12, 2013 

Federal Energy Regulatory Commission 

Page 31 
Independent Auditors’ Report

The Federal Energy Regulatory Commission and the 

Inspector General, United States Department of Energy

Report on the Financial Statements

We have audited the accompanying financial statements of the Federal Energy Regulatory Commission

(the Commission), which comprise the balance sheets as of September 30, 2013 and 2012, and the related

statements of net cost, changes in net position, budgetary resources, and custodial activity for the years 

then ended, and the related notes to the financial statements. 

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in 

accordance with U.S. generally accepted accounting principles; this includes the design, implementation, 

and maintenance of internal control relevant to the preparation and fair presentation of financial statements 

that are free from material misstatement, whether due to fraud or error. 

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted 

our audits in accordance with auditing standards generally accepted in the United States of America; the 

standards applicable to financial audits contained in Government Auditing Standards issued by the 

Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin No. 14-

02, Audit Requirements for Federal Financial Statements. Those standards and OMB Bulletin No. 14-02 

require that we plan and perform the audit to obtain reasonable assurance about whether the financial 

statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial statements. The procedures selected depend on the auditors’ judgment, including the assessment 

of the risks of material misstatement of the financial statements, whether due to fraud or error. In making 

those risk assessments, the auditor considers internal control relevant to the Commission’s preparation and 

fair presentation of the financial statements in order to design audit procedures that are appropriate in the 

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission’s 

internal control. Accordingly, we express no such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant accounting estimates 

made by management, as well as evaluating the overall presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 

audit opinion. 

KPMG LLP

Suite 12000

1801 K Street, NW 

Washington, DC 20006

KPMG LLP is a Delaware limited liability partnership,

the U.S. member firm of KPMG International Cooperative

(“KPMG International”), a Swiss entity.

Attachment
Federal Energy Regulatory Commission

November 12, 2013 

Page 2 of 3 

Opinion on the Financial Statements

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of the Federal Energy Regulatory Commission as of September 30, 2013 and 2012, and 

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

accordance with U.S. generally accepted accounting principles.

Other Matters

Required Supplementary Information

U.S. generally accepted accounting principles require that the information in the Management’s Discussion 

and Analysis section be presented to supplement the financial statements. Such information, although not a 

part of the financial statements, is required by the Federal Accounting Standards Advisory Board who 

considers it to be an essential part of financial reporting for placing the financial statements in an 

appropriate operational, economic, or historical context. We have applied certain limited procedures to the

required supplementary information in accordance with auditing standards generally accepted in the United 

States of America, which consisted of inquiries of management about the methods of preparing the 

information and comparing the information for consistency with management’s responses to our inquiries, 

the financial statements, and other knowledge we obtained during our audits of the financial statements. 

We do not express an opinion or provide any assurance on the information because the limited procedures 

do not provide us with sufficient evidence to express an opinion or provide any assurance. 

Other Information

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

The Schedule of Spending, information in the Performance Report section, the Appendices of the 

Performance and Accountability Report, the Letter from Chairman Wellinghoff and the Message from the 

Chief Financial Officer are presented for purposes of additional analysis and are not a required part of the 

financial statements. Such information has not been subjected to the auditing procedures applied in the 

audits of the financial statements, and accordingly, we do not express an opinion or provide any assurance 

on them. 

Other Reporting Required by Government Auditing Standards

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Commission’s internal 

control over financial reporting (internal control) to determine the audit procedures that are appropriate in 

the circumstances for the purpose of expressing our opinion on the financial statements, but not for the 

purpose of expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, 

we do not express an opinion on the effectiveness of the Commission’s internal control. We did not test all 

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

Integrity Act of 1982. 

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

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

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

of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of 

Attachment (continued)
Federal Energy Regulatory Commission

November 12, 2013 

Page 3 of 3 

the Commission’s financial statements will not be prevented, or detected and corrected on a timely basis. A 

significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe 

than a material weakness, yet important enough to merit attention by those charged with governance. 

Our consideration of internal control was for the limited purpose described in the first paragraph of this 

section and was not designed to identify all deficiencies in internal control that might be material 

weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any 

deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses 

may exist that have not been identified. 

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Commission’s financial statements are free 

from material misstatement, we performed tests of its compliance with certain provisions of laws, 

regulations, and contracts, noncompliance with which could have a direct and material effect on the 

determination of financial statement amounts, and certain provisions of other laws and regulations 

specified in OMB Bulletin No. 14-02. However, providing an opinion on compliance with those provisions 

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

tests of compliance disclosed no instances of noncompliance or other matters that are required to be 

reported herein under Government Auditing Standards or OMB Bulletin No. 14-02. 

We also performed tests of its compliance with certain provisions referred to in Section 803(a) of the 

Federal Financial Management Improvement Act of 1996 (FFMIA). Providing an opinion on compliance 

with FFMIA was not an objective of our audit, and accordingly, we do not express such an opinion. The 

results of our tests of FFMIA disclosed 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.

Purpose of the Other Reporting Required by Government Auditing Standards

The purpose of the communication described in the Other Reporting Required by Government Auditing 

Standards section is solely to describe the scope of our testing of internal control and compliance and the 

result of that testing, and not to provide an opinion on the effectiveness of the Commission’s internal 

control or compliance. Accordingly, this communication is not suitable for any other purpose. 

Washington, D.C. 

November 12, 2013 

Attachment (continued)
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 35

FEDERAL ENERGY REGULATORY COMMISSION

Balance Sheets

As of September 30, 2013 and 2012

(in dollars)

2013 2012

Assets (note 3):

Intragovernmental:

Fund balance with Treasury (note 4) $ 76,415,467 $ 163,574,245 

Accounts receivable (note 5) 40,592 78,903 

Total intragovernmental 76,456,059 163,653,148 

Accounts receivable, net (note 5) 29,132,143 11,208,573 

Property and equipment, net (note 6) 12,060,878 9,401,019 

Total assets $ 117,649,080 $ 184,262,740

Liabilities:

Intragovernmental:

Accounts payable $ 2,024,877 $ 1,928,095

Other (note 7):

Accrued payroll and benefits 876,171 845,903

Resources transferable to Treasury and other

Federal entities 21,135,545 3,278,395

Workers' compensation payable (note 9) 777,328 698,925

Total intragovernmental 24,813,921 6,751,318

Accounts payable 11,408,629 13,052,291

Other (note 7):

Accrued payroll and benefits 4,296,995 3,831,843 

Collections due to states 3,064,076 -

Revenue collected under protest 4,677,480 2,249,253 

Refunds and other amounts due 432,517 10,811,140 

Accrued leave (note 9) 14,676,007 14,308,471 

FECA Actuarial Liability (note 9) 3,884,643 3,042,357 

Resources transferable to other entities from 

disgorged funds 7,834,759 111,847,489

Total liabilities 75,089,027 165,894,162

Net Position:

Unexpended appropriations - other funds 49,840,825 37,566,059

Cumulative results of operations - other funds (7,280,772) (19,197,481)

Total net position 42,560,053 18,368,578

Total liabilities and net position $ 117,649,080 $ 184,262,740

The accompanying notes are an integral part of these statements.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 36

FEDERAL ENERGY REGULATORY COMMISSION

Statements of Net Cost

For Years Ending September 30, 2013 and 2012

(in dollars)

2013 2012

Program costs:

 Regulation:

 Just and Reasonable Rates, Terms,

 & Conditions (note 14): 

 Gross costs $ 166,209,235 $ 167,946,133

 Less: earned revenue 166,228,641 167,946,133

 Net program costs $ (19,406) $ -

 Infrastructure (note 14):

 Gross costs $ 138,997,815 $ 142,423,246

 Less: earned revenue 139,014,044 142,423,246

 Net program costs $ (16,229) $ -

 Total (note 14):

 Gross costs $ 305,207,050 $ 310,369,379

 Less: earned revenue 305,242,685 310,369,379

 Net Cost of Operations $ (35,635) $ -

The accompanying notes are an integral part of these statements.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 37

FEDERAL ENERGY REGULATORY COMMISSION

Statements of Changes in Net Position

For Years Ending September 30, 2013 and 2012

(in dollars)

2013 2012

Cumulative Results of Operations:

Beginning balances $ (19,197,481) $ (9,721,944)

Budgetary Financing Sources:

Appropriations used 292,325,234 297,181,261

Other Financing Sources (Non-Exchange):

 Transfers – out to Treasury without reimbursement (294,380,071) (320,976,897)

 Imputed financing from costs absorbed by others (note 10) 13,935,911 14,320,099 

Total Financing Sources 11,881,074 (9,475,537)

Net Cost of Operations 35,635 -

Net Change 11,916,709 (9,475,537)

Cumulative Results of Operations $ (7,280,772) $ (19,197,481)

Unexpended Appropriations:

Beginning balances $ 37,566,059 $ 30,147,320

Budgetary Financing Sources:

 Appropriations received 304,600,000 304,600,000 

 Appropriations used (292,325,234) (297,181,261)

 Total Budgetary Financing Sources 12,274,766 7,418,739

Total Unexpended Appropriations $ 49,840,825 $ 37,566,059

Net Position $ 42,560,053 $ 18,368,578

The accompanying notes are an integral part of these statements.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 38

FEDERAL ENERGY REGULATORY COMMISSION

Statements of Budgetary Resources

For Years Ending September 30, 2013 and 2012

(in dollars)

2013 2012

Budgetary Resources:

Unobligated balance, brought forward, Oct 1 $ 20,897,888 $ 19,972,915 

Recoveries of prior year unpaid obligations 798,727 1,218,246 

Unobligated balance from prior year budget activity, net 21,696,615 21,191,161 

 Appropriations 2,985,827 3,127,757 

 Spending authority from offsetting collections 289,313,760 304,686,540

Total budgetary resources $ 313,996,202 $ 329,005,458

Status of Budgetary Resources:

Obligations incurred (note 15) $ 292,564,533 $ 308,107,570 

Unobligated balances, end of year:

Apportioned 21,431,669 18,367,126

Unapportioned - 2,530,762

Total unobligated balance, end of year 21,431,669 20,897,888 

Total budgetary resources $ 313,996,202 $ 329,005,458 

Change in Obligated Balance:

Unpaid Obligations:

Unpaid obligations, brought forward, Oct 1 $ 36,415,201 $ 34,337,808 

Obligations incurred 292,564,533 308,107,570 

Outlays gross (293,662,537) (304,811,931)

Recoveries of prior year unpaid obligations (798,727) (1,218,246)

Unpaid obligations, end of year 34,518,470 36,415,201 

Uncollected payments:

 Uncollected pymts, Fed sources, brought forward, Oct 1 (117,909) (40,947)

 Change in uncollected pymts, Fed sources 71,850 (76,962)

Uncollected pymts, Fed sources, end of year (46,059) (117,909)

Memorandum (non-add) entries:

Obligated balance, start of year $ 36,297,292 $ 34,296,861

Obligated balance, end of year $ 34,472,411 $ 36,297,292 

continued on the next page
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 39

Budget Authority and Outlays, Net:

Budget authority, gross 292,299,587 307,814,297

Actual Offsetting collections (304,708,818) (304,609,578)

Change in uncollected customer payments from Federal

 sources 71,850 (76,962)

Budget authority, net $ (12,337,381) $ 3,127,757

Outlays, gross $ 293,662,537 $ 304,811,931

Actual Offsetting collections (304,708,818) (304,609,578)

Outlays, net (11,046,281) 202,353

Less: Distributed offsetting receipts (294,674,362) (179,321,698)

Agency outlays, net $ (305,720,643) $ (179,119,345)

The accompanying notes are an integral part of these statements.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 40

FEDERAL ENERGY REGULATORY COMMISSION

Statements of Custodial Activity

For Years Ending September 30, 2013 and 2012

(in dollars)

2013 2012

Revenue Activity:

 Sources of Collections:

Cash collections:

 Annual Charges $ 32,977,829 $ 31,581,917

 Other 294,386,000 146,701,529

Accrual adjustments 14,216,016 960,241

Total custodial revenue (note 12) 341,579,845 179,243,687

Disposition of Collections:

Transferred to others:

United States Army – Corps of 

 Engineers (8,343,409) (7,872,888)

Department of Interior (7,102,342) (7,074,799)

United States Treasury (308,854,069) (159,748,981)

Various states (3,064,009) (3,086,244)

Decrease (increase) in Amounts Yet to be

 transferred (14,216,016) (1,460,775)

Total Disposition of Collections (341,579,845) (179,243,687)

Net Custodial Activity $ - $ -

The accompanying notes are an integral part of these statements.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 41

NOTES TO FINANCIAL STATEMENTS

September 30, 2013 and 2012

(1) Description of Reporting Entity

The Federal Energy Regulatory Commission 

(the Commission) is an independent Federal 

agency that oversees key operating functions 

of the United States’ natural gas and oil 

pipeline transportation, electric utility, and 

hydroelectric power industries.

The Commission was created through the 

Department of Energy Organization Act on 

October 1, 1977. The Commission’s 

predecessor, the Federal Power Commission 

(FPC), established in 1920, was abolished, 

and the Commission inherited most of FPC’s 

regulatory mission.

The Commission administers laws and 

regulations involving key energy issues. These 

include the transportation and sale of natural 

gas and oil in interstate commerce; regulation 

of electric utility wholesale rates and 

transactions; licensing and inspection of 

private, municipal, and state hydroelectric 

projects; and oversight of related 

environmental matters.

The Commission’s main legal authority is 

derived from the Federal Power Act of 1935, 

the 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 FY 

2014. The Commission issued a revised plan 

in March 2013, as allowed by the GPRA 

Modernization Act of 2010. 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) 

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.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 42

Cost Recovery

As described below, the Commission recovers 

100% of its annual appropriation from the U.S. 

Department of the 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 its administrative 

program costs through allocated annual 

charges to the entities it regulates, regardless 

of the number or type of services rendered to 

any particular entity during the year. The 

annual charge assessed in a fiscal year is 

based on an estimate of costs to be incurred 

during that year. Final program costs are 

determined from year-end accounting reports 

and time distribution reports by office and

program. The difference in assessments that 

results from estimated versus final program 

costs is an adjustment to the following fiscal 

year’s assessments. The authority and related 

implementation methods for the annual 

changes are summarized as follows:

Hydropower

Authority – Section 10(e) of FPA makes the 

general provision that licensees under Part I of 

FPA shall pay reasonable annual charges to 

compensate the Federal government for the 

costs of administering Part I.

Implementation – The methods for assessing 

annual charges to hydropower licensees are 

codified at 18 Code of Federal Regulations 

(C.F.R.) Part 11. Costs are prorated based on 

capacity (municipal projects), on capacity and 

generation (non-municipal projects), or on a 

flat rate per horsepower under 1,000 (minor 

projects).

Gas, Electric, and Oil

Authority – Section 3401 of the Omnibus 

Budget Reconciliation Act of 1986 provides 

that the Commission shall “assess and collect 

fees and annual charges in any fiscal year in 

amounts equal to all of the costs incurred by 

the Commission in that fiscal year.” It further 

provides that “fees or annual charges 

assessed shall be computed on the basis of 

methods that the Commission determines, by 

rule, to be fair and equitable.”

Implementation – The methods for assessing 

annual charges to gas and oil pipelines and to 

electric utilities and power marketing 

administrations are codified at 18 C.F.R. Parts 

382.201 - 203. Costs are prorated to gas 

pipelines based on volume transported and 

sold, to electric utilities and power marketing 

administrations based on energy sold, and to 

oil pipelines based on operating revenues.

Filing Fees

Filing fees are calculated annually. Regulated 

entities pay the current fee when filing with the 

Commission for a specific service. The fees 

are based on the average time spent to 

perform the particular type of 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 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 43

its net costs, changes in net position, 

budgetary resources, and custodial 

activity in accordance with accounting 

principles generally accepted in the 

United States of America applicable to 

Federal government entities.

These financial statements have also 

been prepared in accordance with the 

form and content for financial statements 

specified by OMB Circular No. A-136, 

Financial Reporting Requirements.

The financial statements include all 

activity related to the Commission’s 

portion of appropriation (89X0212), 

including the budget authority allotted by 

DOE to other DOE agencies. In addition, 

the Commission receives small 

allotments from DOE appropriation 

(89X5105). Both of the Commission’s 

appropriations relate to budget functional 

classification code 276, Energy 

Information Policy and Regulation.

Entity assets disclosed in notes 3 and 5 

include those assets that the 

Commission has the authority to use in 

its operations.

Non-entity assets disclosed in notes 3 

and 5 include those assets that result 

from the Commission’s custodial billing 

activities for other Federal agencies, 

including the U.S. Army Corps of 

Engineers, the Treasury and the U.S. 

Department of Interior.

(b) Budgets and Budgetary 

Accounting

Congress annually adopts a budget 

appropriation that provides the 

Commission with authority to use funds 

from the Treasury to meet its operating 

and capital expenditure requirements. 

The appropriated funds are not restricted 

to use in a specific fiscal year. All 

revenue from annual charges and filing 

fees is remitted to the Treasury when 

received.

(c) Basis of Accounting

The Commission’s financial statements 

are prepared using the accrual method 

of accounting. The accrual method of 

accounting requires recognition of the 

financial effects of transactions, events, 

and circumstances in the period(s) when 

those transactions, events, and 

circumstances occur, regardless of when 

cash is received or paid. The 

Commission also uses budgetary 

accounting to facilitate compliance with 

legal constraints and to monitor its 

budget authority at the various stages of 

execution, including allotment, 

obligation, and eventual outlay.

(d) Revenue and Financing Sources

As described above, the Commission 

receives funds for its operating and 

capital expenditures through an 

appropriation allotment from DOE. For 

financial statement purposes, the 

appropriation allotment is recognized as 

a financing source when operating 

expenses (primarily salaries and 

benefits), other than depreciation, are 

incurred and when capital assets are 

purchased.

The Commission recognizes revenue for 

hydropower, gas, oil, and electric annual 

charges when earned. Annual charges 

are based on estimated current year 

program costs and adjustments from the 

prior year. At year-end, the Commission 

records a financial statement adjustment 

to accurately reflect the amount to be 

billed or credited to regulated entities 

based on the difference between the 

charges and the actual program costs for 

the year. The Commission adjusts the 

subsequent year’s charge for such 

amount. Revenue is recognized for filing 

fees when received.

The Commission recognizes an imputed 

financing source for the estimated 

annual pension, life and health 

insurance costs in excess of 

contributions made by the Commission 

during the year. These costs will 

ultimately be funded by the Office of 

Personnel Management.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 44

Reimbursable work agreement revenue 

is recognized when the related services 

are rendered.

Transfers-out represent receipts 

collected and remitted to the Treasury 

during the year and net accounts 

receivable that, once collected, will be 

returned to the Treasury, less any 

amounts due to regulated entities for the 

excess of estimated and billed costs 

over actual costs incurred.

(e) Fund Balance with Treasury

The Commission does not maintain cash 

in commercial bank accounts. Cash 

receipts and disbursements are 

processed by the Treasury. The balance 

of funds with the Treasury represents 

appropriated funds that are available to 

pay current liabilities and finance 

authorized purchase commitments 

relative to goods or services that have 

not been received and monies held in 

suspense until final disposition is 

determined.

(f) Allowance for Doubtful Accounts

The Commission calculates its 

allowance for doubtful accounts using 

historical collection data and specific 

account analysis.

(g) Property and Equipment

Property and equipment are stated at 

cost less accumulated depreciation. The 

Commission capitalizes property and 

equipment purchases (other than 

furniture and software) with a cost 

greater than $25,000 and a total useful 

life exceeding two years. The 

Commission capitalizes individual 

furniture purchases with a cost greater 

than $50,000 and bulk furniture 

purchases related to the acquisition of 

newly leased space or total renovation of 

existing Commission space with a cost 

greater than $250,000. The Commission 

also capitalizes commercially purchased 

or internally developed software with a 

cost greater than $100,000 and 

leasehold improvements over $250,000 

that are related to initial move-ins, buildouts of newly leased space, and/or a 

complete renovation of already leased 

space. Depreciation is calculated based 

on an estimated useful life of the shorter 

of 20 years or the life of the lease for 

leasehold improvements, 10 years for 

furniture, 2 to 5 years for commercially 

purchased or internally developed 

software, and 5 years for all remaining 

assets. Expenditures for repairs and 

maintenance are charged to program 

costs as incurred.

(h) Liabilities

Liabilities represent amounts owed by 

the Commission as the result of 

transactions or events that have 

occurred as of year-end. Liabilities for 

which Congress has not appropriated 

funds are disclosed in note 9 as liabilities 

not covered by budgetary resources.

(i) Workers’ Compensation Payable

The Federal Employees Compensation 

Act (FECA) provides income and 

medical cost protection to cover Federal 

civilian employees injured on the job, 

employees who have incurred a workrelated occupational disease and 

beneficiaries of employees whose death 

is attributable to a job-related injury or 

occupational disease. Claims incurred 

for benefits for the Commission’s 

employees under FECA are 

administered by the United States 

Department of Labor (DOL) and are 

ultimately paid by the Commission. The 

workers’ compensation payable 

represents billings from DOL that are 

unpaid at year-end. 

(j) Collections Due to States 

The Commission disburses 37.5% of the 

fees it collects from licensees for the 

occupancy and use of public lands to 

affected states in the year following 

collection. These collections are initially 

deposited into the Treasury’s 

miscellaneous receipts fund.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 45

(k) Revenue Collected Under Protest

Revenue collected under protest is 

deferred and recorded as a liability until 

the protest is resolved.

(l) Accrued Leave

Annual leave is accrued as a liability as it 

is earned. The accrual is reduced as 

leave is taken. Each year, the balance in 

the accrued annual leave account is 

adjusted to reflect current year pay rates. 

To the extent that the current or prior 

year appropriations are not available to 

fund annual leave earned but not taken, 

funding will be obtained from future 

appropriations. Sick leave and other 

types of nonvested leave are charged to 

expense as the leave is used.

(m) Disgorged Funds

The Commission seeks to detect abuses 

of market power or statutory or rule 

violations by investigating observed 

market anomalies, complaints, and 

referrals from regional transmission 

organizations and/or independent 

system operators, and by conducting 

both targeted and random audits. Once 

the Commission identifies violations, it 

applies remedies to mitigate the effects 

of market power, requires disgorgement 

of unjust profits where appropriate, and 

imposes civil penalties or other sanctions 

when available under existing laws. The 

Commission records disgorged funds as 

a liability until they are disbursed to 

appropriate entities.

(n) Net Position Accounts

Net position account balances consist of 

the following components:

Unexpended appropriations –

Represents amounts of spending 

authority that are unobligated and 

available to the Commission, or 

obligated but not expended.

Cumulative results of operations –

Represents the Commission’s net results 

of operations since inception, including 

(1) the amount in the Special Receipts 

fund balance with the Treasury, (2) the 

cost of property and equipment acquired 

that has been financed by 

appropriations, less accumulated 

depreciation, and (3) the amount of 

appropriated funding that will be needed 

in future periods to liquidate liabilities 

incurred through the current fiscal year. 

Funding for these items is generally 

received in the year that amounts 

become due and payable.

(o) Tax Status

The Commission, as a Federal agency, 

is not subject to Federal, state, or local 

income taxes, and accordingly, no 

provision for income tax is recorded.

(p) Use of Estimates

The preparation of financial statements 

in conformity with accounting principles 

generally accepted in the United States 

of America requires management to 

make estimates and assumptions that 

affect the reported amounts of assets 

and liabilities and disclosure of 

contingent assets and liabilities at the 

date of the financial statements. Also 

affected are the reported amounts of 

revenues and expenses during the 

reporting period. Actual results could 

differ from these estimates.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 46

(3) Non-Entity Assets

Non-entity assets at September 30, 2013 and 2012 consisted of:

2013 2012

Intragovernmental:

 Fund balance with Treasury:

 Collections due to states $ 3,064,009 $ -

 Revenue collected under protest 4,677,480 2,249,253

 Disgorged funds - 104,012,730

 Miscellaneous receipts held in suspense 432,518 117,083

Total intragovernmental assets 8,174,007 106,379,066

Accounts receivable, net 22,867,762 8,898,545

 Total non-entity assets 31,041,769 115,277,611

Total entity assets 86,607,311 68,985,129

 Total assets $ 117,649,080 $ 184,262,740

(4) Fund Balance with Treasury

Fund balance with Treasury at September 30, 2013 and 2012 consisted of:

2013 2012

Fund Balances:

 General:

 Appropriated funds $ 68,241,460 $ 57,195,179

 Other:

 Collections due to states 3,064,009 -

 Revenue collected under protest 4,677,480 2,249,253

 Disgorged funds - 104,012,730

 Miscellaneous receipts held in suspense 432,518 117,083

 Total $ 76,415,467 $ 163,574,245

Status of Fund Balance with Treasury:

 Unobligated balance:

 Available $ 21,307,527 $ 20,779,978

 Unavailable 15,479,472 -

 Obligated balance not yet disbursed 34,518,470 36,415,201

 Non-budgetary fund balance with Treasury 5,109,998 106,379,066

 Total $ 76,415,467 $ 163,574,245
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 47

(5) Accounts Receivable, net

Entity and non-entity accounts receivable at September 30, 2013 and 2012 consisted of:

2013

Annual 

Charges Other Total

Entity

Uncollected billings $ 6,102,608 $ 68,727 $ 6,171,335

Unbilled billings 98,050 - 98,050

Uncollected intragovernmental billings - 40,592 40,592

Allowance for doubtful accounts - (5,004) (5,004)

 Total entity accounts receivable, net 6,200,658 104,315 6,304,973

Non-entity

Uncollected billings 256,584 508,139,944 508,396,52

8

Allowance for doubtful accounts - (485,528,766

)

(485,528,76

6)

Total non-entity accounts receivable, net 256,584 22,611,178 22,867,762

 Total accounts receivable, net $ 6,457,242 $ 22,715,493 $ 29,172,735

 

2012

Annual 

Charges Other Total

Entity

Uncollected billings $ 2,214,609 $ 101,360 $ 2,315,969

Unbilled billings -

Uncollected intragovernmental billings - 78,903 78,903

Allowance for doubtful accounts - (5,941) (5,941)

 Total entity accounts receivable, net 2,214,609 174,322 2,388,931

Non-entity

Uncollected billings 479,279 70,948,032 71,427,311

Allowance for doubtful accounts - (62,528,766) (62,528,766

)

Total non-entity accounts receivable, net 479,279 8,419,266 8,898,545

 Total accounts receivable, net $ 2,693,888 $ 8,593,588 $ 11,287,476

In FY 2013 the Commission issued a Notice of Proposed Penalty against Barclays and its energy 

traders. Subsequently, the Commission recorded a $453 million Allowance for Loss on Accounts 

Receivable after Barclays and its energy traders elected to have the district court procedures of 

section 31(d)(3)(A) of the Federal Power Act (FPA) apply. Under these proceedings, the district 

court of the United States may rule to find Barclays and its energy traders not liable for the 

imposed civil penalty in whole or part. Until final determination of the district court, the 

Commission is not allowed under the FPA to collect any imposed civil penalties against Barclays 

and its energy traders.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 48

(6) Property and Equipment, net

Property and equipment and related accumulated depreciation at September 30, 2013 and 2012 

consisted of:

2013

Acquisition 

Amount

Accumulated 

Depreciation Net

Equipment $ 6,089,933 $ 4,471,667 $ 1,618,266 

Furniture 11,500,547 9,731,969 1,768,578

Leasehold improvements 11,713,238 9,200,510 2,512,728

ADP software 19,442,500 16,699,141 2,743,359

Construction in process 313,035 - 313,035 

Internal software developed 3,104,912 - 3,104,912

Capital leases 29,000 29,000 -

 Total property and equipment, net $ 52,193,165 $ 40,132,287 $ 12,060,878 

2012

Acquisition 

Amount

Accumulated 

Depreciation Net

Equipment $ 5,809,819 $ 3,675,552 $ 2,134,267

Furniture 11,500,547 9,489,000 2,011,547

Leasehold improvements 11,713,238 8,503,757 3,209,481

ADP software 16,238,259 16,238,259 -

Construction in process 2,045,724 - 2,045,724

Capital leases 29,000 29,000 -

 Total property and equipment, net $ 47,336,587 $ 37,935,568 $ 9,401,019
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 49

(7) Other Liabilities

Other liabilities at September 30, 2013 and 2012 consisted of:

2013

Current NonCurrent Total

Intragovernmental

 Accrued payroll and benefits $ 876,171 $ - $ 876,171 

 Resources transferable to Treasury 

 and other Federal entities 21,135,545 - 21,135,545 

 Workers' compensation payable 78,404 698,924 777,328

 Total other intragovernmental liabilities 22,090,120 698,924 22,789,044

Accrued payroll and benefits 4,296,995 - 4,296,995 

Collections due to states 3,064,076 - 3,064,076 

Revenue collected under protest 4,677,480 - 4,677,480 

Refunds and other amounts due 432,517 - 432,517 

Accrued leave 14,676,007 - 14,676,007 

FECA Actuarial Liability - 3,884,643 3,884,643 

Resources transferable to other entities

 from disgorged funds 7,834,759 - 7,834,759 

 Total other liabilities $ 57,071,954 $ 4,583,567 $ 61,655,521 

2012

Current NonCurrent Total

Intragovernmental

 Accrued payroll and benefits $ 845,903 $ - $ 845,903 

 Resources transferable to Treasury 

 and other Federal entities 3,278,395 - 3,278,395 

 Workers' compensation payable 115,272 583,653 698,925 

 Total other intragovernmental liabilities 4,239,570 583,653 4,823,223 

Accrued payroll and benefits 3,831,843 - 3,831,843 

Collections due to states - - - 

Revenue collected under protest 2,249,253 - 2,249,253 

Refunds and other amounts due 10,811,140 - 10,811,140 

Accrued leave 14,308,471 - 14,308,471 

FECA Actuarial Liability - 3,042,357 3,042,357 

Resources transferable to other entities 

 from disgorged funds 111,847,489 - 111,847,489 

 Total other liabilities $ 147,287,766 $ 3,626,010 $ 150,913,776 

Resources transferable to Treasury and other Federal entities represent future collections on accounts 

receivable that will be forwarded to Treasury upon receipt.

Revenue collected under protest represents monies that, once the protest is resolved, may either be 

recognized as revenue by the Commission or returned to the protesting entity.

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

overpayments of prior billings and other amounts due for miscellaneous activities.

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

specific entities in the future.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 50

(8) Leases

The General Services Administration (GSA) 

enters into lease agreements for government 

buildings and maintains those lease 

agreements. The Commission pays GSA a 

standard level users charge for the annual 

rental of building space, of which Commission 

Headquarters is in Washington, DC and 

several other regional offices are located in 

various parts of the country. The standard 

level users charge approximates the 

commercial rental rates for similar properties. 

The Commission generally executes an 

occupancy agreement with GSA, which 

normally includes a requirement to give 30-120 

days notice to vacate. Expenses incurred for 

building leases amounted to $22.2 million and 

$23.2 million for periods ended September 30, 

2013 and 2012, respectively.

Real Property Operating Leases – Future Payments

Fiscal Year GSA Non-GSA Total

FY 2014 $ 13,939,408 $ 12,269 $ 13,951,677 

FY 2015 13,975,096 - 13,975,096 

FY 2016 17,288,237 - 17,288,237 

FY 2017 17,290,630 - 17,290,630 

FY 2018 17,314,454 - 17,314,454 

Beyond FY 2018 116,040,821 - 116,040,821 

 Total future minimum lease payments $ 195,848,646 $ 12,269 $ 195,860,915 

(9) Liabilities Not Covered by Budgetary Resources

Liabilities not covered by budgetary resources at September 30, 2013 and 2012 consisted of:

2013 2012

Intragovernmental 

 Workers' compensation payable $ 777,328 $ 698,925

 Total intragovernmental 777,328 698,925

Accrued leave 14,676,007 14,308,471

FECA Actuarial Liability 3,884,643 3,042,357

 Total liabilities not covered by budgetary resources $ 19,337,978 $ 18,049,753

(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 hired before January 1,

2013, the Commission makes a contribution of 

11.9% of basic pay. For employees 

participating in the FERS-Revised Annuity 

Employees (RAE) program hired after January 

1, 2013, the Commission makes a contribution 

of 9.6% of basic pay. 

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 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 51

December 31, 1983, the Commission also 

contributes the employer’s matching share for 

Social Security. Public Law 112-96, Section 

5001 of the "Middle Class Tax Relief and Job 

Creation Act of 2012, makes a significant 

change to the FERS program. Beginning 

January 1, 2013, new employees under FERSRAE will contribute 3.1% of their basic salaries 

compared to 0.8% contributed by employees 

hired prior to January 1, 2013. 

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 FYs 2013 

and 2012 was approximately $17.9 million as 

of September 30, 2013 and 2012. Additionally, 

the Commission recognized $13.9 million and 

$14.3 million, respectively, of pension and life 

and health insurance expense as of 

September 30, 2013 and 2012, for amounts 

that will ultimately be funded through the U.S. 

Office of Personnel Management. This amount 

is also recorded as an imputed financing 

source.

(11) Commitments and Contingencies 

Certain hydroelectric licensees have filed 

appeals claiming the Commission erroneously 

accepted certain “other agency costs” (costs 

incurred by Other Federal agencies in 

administering Part I of the FPA component of 

the licensees’ annual charges) in their 

calculation of FY annual charges. In addition, 

certain licensees have filed appeals against 

their hydropower administrative annual 

charges to seek a partial or 100% municipal 

exemption. The combined liabilities of these 

appeals total $4.7 million and $2.2 million as of 

September 30, 2013 and 2012, respectively,

and are included herein as revenue collected 

under protest. The FY 2013 liability is fully 

funded and therefore poses no adverse or 

material future effect on the Commission’s 

financial position. 

In addition, the Commission has two Equal 

Employment Opportunity cases pending where 

the probability of success for the claimant is 

reasonably possible. The amount of monetary 

relief in one case could total $125,000, as of 

September 30, 2013. The amount of monetary 

relief in the other case could total $100,000, as 

of September 30, 2013. 

(12) Custodial Activity

The Commission currently bills regulated 

companies annual charges as a custodian for 

certain Federal agencies. These agencies 

include the United States Army Corps of 

Engineers, the Department of Interior’s Bureau 

of Reclamation, and the Treasury. Accrual 

accounting is used to account for the 

Commission’s custodial activities. The 

receivables are maintained by the 

Commission, and the collections are 

processed to each Federal agency on a 

monthly basis. In addition to the annual 

charges, penalty and administrative costs are 

assessed on past-due bills and remitted to the 

Treasury when received. For FY 2013 and FY 

2012, these custodial collections totaled 

approximately $327.4 million and $178.3 

million, respectively as of September 30th. For 

FY 2013 and FY 2012, custodial revenue 

totaled approximately $341.6 million and 

$179.2 million, respectively as of September 

30th.

(13) Funds from Dedicated Collections

In accordance with the Federal Accounting 

Standards Advisory Board’s Statement on 

Federal Financial Accounting Standards 

(SFFAS) No. 27 and as amended by SFFAS 

No. 43, the Commission is required to report 

separately on the Balance Sheets and 

Statements of Changes in Net Position, the 

non-exchange revenue, other financing 

sources, of operations and net position 

attributable to funds from dedicated 

collections. In addition, the Commission must 

disclose the fund for which it has program 

management responsibility. The Commission’s 

Collections Due to States fund meets the 

criteria for funds from dedicated collections. 

The balances as of September 30, 2013 and 

2012 were $3.1 million and $0 million, 

respectively. 

Fund 89X5105 and 895105 pertains to the Use 

of Government lands. "Reasonable annual 

charges for recompensing the United States 

for the use, occupancy, and enjoyment of its 

lands or its other property will be fixed by the 

Commission." 18 CFR CH 1, part 11.2(a).
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 52

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 funds from dedicated collections 

managed by the Commission are custodial in 

nature, there are no equity balances to report 

on the financial statements as of September 

30, 2013 and 2012.

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 53

(14) Intragovernmental Costs and Exchange Revenue

Costs classified as “Intragovernmental” represent the cost of goods or services obtained from 

Federal entities. Costs classified as “Public” represent the cost of goods or services obtained 

from non-federal entities. Revenues classified as “Intragovernmental earned” are generated 

when the buyer and seller of services are Federal entities. Revenues classified as “Public 

earned” are generated when the buyer of services is a non-federal entity.

Intragovernmental costs and exchange revenue at September 30, 2013 and 2012 consisted of:

2013 2012

Just and Reasonable Rates, Terms, & Conditions

 Intragovernmental costs $ 35,904,725 $ 35,620,037

 Public costs 130,304,510 132,326,096

 Total Just and Reasonable Rates, Terms, and

 Conditions costs 166,209,235 167,946,133

 

 Intragovernmental earned revenue 57,525 65,474 

 Public earned revenue 166,171,116 167,880,659 

 Total Just and Reasonable Rates, Terms, and

 Conditions earned revenues 166,228,641 167,946,133

Infrastructure

 Intragovernmental costs 30,026,480 30,206,836 

 Public costs 108,971,335 112,216,410 

 Total Infrastructure costs 138,997,815 142,423,246 

 

 Intragovernmental earned revenue 48,107 55,524 

 Public earned revenue 138,965,937 142,367,722 

 Total Infrastructure earned revenues 139,014,044 142,423,246 

Costs

 Intragovernmental costs 65,931,205 65,826,873 

 Public costs 239,275,845 244,542,506 

 Total costs 305,207,050 310,369,379 

Revenue

 Earned intragovernmental revenue 105,632 120,998 

 Earned public revenue 305,137,053 310,248,381 

 Total earned revenue $ 305,242,685 $ 310,369,379 

(15) Apportionment Categories of Obligations Incurred

Apportionment categories of obligations incurred as of September 30, 2013 and 2012 

consisted of:

2013 2012

Category A:

 Direct $ 292,527,564 $ 308,021,030 

 Reimbursable 36,968 86,540 

Total obligations incurred $ 292,564,533 $ 308,107,570 

Category A apportionments distribute budgetary resources by fiscal quarters.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 54

(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, 2012. 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, 

2013 is not presented, because the 

submission of the FY 2014 budget occurs after 

publication of these financial statements. The 

Commission’s Budget Appendix can be found 

under the DOE on the OMB website 

(http://www.whitehouse.gov/omb/budget) and 

will be available in early February 2014.

(17) Undelivered Orders at the End of the 

Period

Undelivered orders are obligations made by 

the Commission for services and purchases 

that have not been received and accepted as 

of the balance sheet date. The amount of 

Commission budgetary resources reported as 

undelivered orders as of September 30, 2013 

and 2012 were $13.3 million and $16.8 million, 

respectively.

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 55

(18) Reconciliation of Net Cost of Operations to Budget

The objective of this information is to provide an explanation of the differences between budgetary and financial 

(proprietary) accounting. This is accomplished by means of a reconciliation of budgetary obligations and non-budgetary 

resources available to the reporting entity with its net cost of operations.

2013 2012

Resources used to finance activities:

Budgetary resources obligated:

 Obligations incurred $ 292,564,533 $ 308,107,570 

 Less: spending authority from offsetting collections (305,435,696) (305,904,786)

 Obligations, net of offsetting collections (12,871,163) 2,202,784

 Less: Distributed offsetting receipts (294,674,362) (179,321,698)

 Net obligations (307,545,525) (177,118,914)

Other resources:

 Transfers-out, net of appropriations received 10,219,929 (4,561,167)

 Imputed financing from costs absorbed by others 13,935,911 14,320,099 

 Net other resources used to finance activities 24,155,840 9,758,932

Total resources used to finance activities (283,389,685) (167,359,982)

Resources (used to) or generating finance items not part of 

the net cost of operations 

 Change in budgetary resources obligated for goods/

 services/benefits ordered but not yet provided (+/-) (3,468,508) (6,493,767) 

Budgetary offsetting receipts that do not affect the net cost

 of operations 294,674,362 179,321,698

 Resources that finance the acquisition of assets (4,852,735) (3,803,906)

 Payments to States (2,907,745) (3,127,757)

Total resources (used to) or generating finance items not part 

of the net cost of operations 283,445,374 165,896,268 

Total resources used to finance the net cost of operations 55,689 (1,463,714)

Costs that do not require resources:

Components requiring or (generating) resources in future 

periods:

 Increase in unfunded liabilities 1,288,225 946,405

 Increase in exchange revenue receivable from the public (3,641,200) (1,187,846)

 Total components of net cost of operations that will 

 require or (generate) resources in future periods (2,352,975) (241,441)

Components not requiring or generating resources:

 Depreciation and amortization 2,196,719 1,668,570 

 Other 64,932 36,585

Total components of net cost of operations that will not 

 require or (generate) resources 2,261,651 1,705,155 

Total net cost of operations that do not require or 

 (generate) resources in the current period (91,324) 1,463,714

Net Cost of Operations $ (35,635) $ -
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 56

OTHER INFORMATION

FEDERAL ENERGY REGULATORY COMMISSION

Schedule of Spending (Unaudited)

For the Years Ended September 30, 2013 and 2012

(in millions)

FY 2013 FY 2012

What Money is Available to Spend?

Total Resources $ 314 $ 329

Less Amount Available but Not Agreed to be Spent 21 21

Total Amounts Agreed to be Spent $ 293 $ 308

How was the Money Spent/Issued?

Personnel Compensation $ 165 $ 167

Personnel Benefits 47 47

Benefits for Former Personnel - 1

Travel and Transportation of Persons 3 4

Rent, Communication and Utilities 25 25

Printing and Reproduction 3 2

Other Contractual Services 42 45

Supplies and Materials 2 2

Equipment 3 6

Land and Structures - 1

Grants, Subsidies and Contributions 3 5

Total Spending 293 305

Amounts Remaining to be Spent - 3

Total Amounts Agreed to be Spent $ 293 $ 308

Who Did the Money Go to?

For Profit $ 64 $ 63

Government 53 68

Higher Education 2 1

Individuals 174 176

Total Amounts Agreed to be Spent $ 293 $ 308

The unaudited Schedule of Spending presents 

an overview of how and where the 

Commission spent its funding. 

What Money is Available to Spend?

summarizes the funds the Commission 

obligated during the fiscal year, the total 

amount agreed to be spent being equivalent to 

the obligations incurred shown on the 

Statement of Budgetary Resources (SBR). For 

FY13, $156,264 was not available to be spent 

for Payment to States; however that amount is 

not presented on the Schedule of Spending 

due to rounding.

How Was the Money Spent? summarizes the 

actual gross cash outlays for the fiscal year, 

the total spending being equivalent to the 

gross outlays shown on the SBR. These gross 

outlays are categorized by the OMB Budget 

Object Class definitions found in Circular No. 

A-11. 

Who did the Money go to? summarizes with 

whom the agencies are spending money and 

is based on obligations incurred as shown on 

the SBR. Outlays are not always made in the 

same fiscal year in which funds are obligated 

resulting in carryover obligated balances that 

will be disbursed in subsequent fiscal years. 

These timing differences are shown as 

increases/(Decreases) in Amounts Remaining 

to be Spent.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 57

Performance Report

(Unaudited)
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 58

INTRODUCTION

In accordance with Government 

Performance and Results Act of 1993, the 

Commission developed its Strategic and 

Business Plans, as well as its performance 

measures, to ensure it is fulfilling its mission. 

When comparing the planned and actual 

performance according to the guidelines set 

forth in Part 6 of OMB Circular No. A-11, the 

Commission:

• determined that its performance 

results are complete and reliable based on 

the fact that results are listed for every 

performance measure and target, that 

decision-makers use the information 

contained in the results “on an ongoing basis 

in the normal course of their duties,” and that 

the information contained in the results are 

derived via internal tracking mechanisms; 

and

• identified no “significant or material” 

performance shortfalls based on the fact that 

none of the Commission’s unmet 

performance measures or targets had an 

adverse effect on overall program 

performance.

The tables on the following pages include 

the Commission’s complete performance 

measurement data for fiscal years 2008 

through 2013.

As a result of the Commission’s updated FY 

2009 – 2014 Strategic Plan, which went into 

effect on September 30, 2009, the 

performance measures for fiscal years 2010 

through 2013 are aligned with the 

Commission’s current Strategic Plan. The 

Performance Measures for fiscal years 2008

– 2009 are aligned with previous versions of 

the Commission’s Strategic Plan.

The Commission did not engage in an 

independent program evaluation during FY 

2013.

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 59

PERFORMANCE DATA FOR ENERGY INFRASTRUCTURE: FY 2008 - 2009

FY 2008

Strategy

Performance Measurement Performance Target Results

Resolve Regulatory and Other Challenges to Needed Development

Timeliness of processing complete 

filings containing amendments to nonindependent electric transmission 

provider OATTs

100% processed by statutory due date or 

applicant’s requested date, whichever is 

later

Target Met. 100% (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 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 prefiling 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.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 60

FY 2008

Strategy

Performance Measurement Performance Target Results

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 

Congressional-directed studies

 Target Met. 100% of regional and 

issue-based infrastructure studies were 

completed for regional and issue-based 

infrastructure conferences.

 Target Met. 100% of infrastructure 

conferences were completed for 

Commission- and Congressionaldirected 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.

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.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 61

FY 2008

Strategy

Performance Measurement Performance Target Results

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 significanthazard-potential dams inspected 

annually

100%

Target Met. 100% of high- and 

significant-hazard-potential dams were 

inspected.

Percentage of high- and significanthazard-potential dams that either meet 

all current structural safety standards or 

are undergoing investigation or 

remediation

100%

Target Met. 100% of high- and 

significant-hazard-potential dams met all 

current structural safety standards or are 

undergoing investigation or remediation.

Percentage of LNG import terminals 

inspected annually 90% Target Met. 100% of the LNG import terminals were inspected.

Percentage of LNG peak-shaving 

facilities inspected biennially 90%

Target Met. 100% of peak shaving 

plants were inspected according to the 

biennial schedule.

Percentage of LNG facilities that meet 

all current safety standards or are subject 

of a compliance letter

100%

Target Met. 100% of the LNG facilities 

either met all current safety standards or 

received a compliance letter.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 62

FY 2008

Strategy

Performance Measurement Performance Target Results

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, 

onshore-pipeline 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 nonindependent electric transmission provider OATTs 

100% processed by statutory due date or 

applicant’s requested date, whichever is 

later 

Target Met. 100% of the 62 

amendments to non-RTO/ISO OATTs 

were completed within the 60-day 

statutory timeframe

Issue Alaska Gas Pipeline Reports to 

Congress 

Issue Reports in February and August 

2009 

Target Met. Reports issued in 

February and August 2009.

Percentage of pipeline certificate cases 

with no precedential issues completed 

▪ 90% of unprotested cases within 159 

days of filing 

▪ 90% of protested cases within 304 days 

of filing 

▪ Target Met. 96.8% of unprotested 

cases completed within 159 days of 

filing 

▪ Target Met. 100% of protested cases 

completed within 304 days of filing

Percentage of pipeline certificate cases 

of first impression or containing larger 

policy implications completed 

90% within 365 days of filing 

Target Met. 94.7% of first impression 

cases completed within 365 days of 

filing

Percentage of pipeline certificate cases 

requiring a major environmental assessment or EIS completed 90% within 480 days of filing Target Met. 100% of major cases 

completed within 480 days of filing
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 63

FY 2009

Performance Measure Performance Target Results

Percentage of NEPA documents completed for projects utilizing the pre-filing 

processes 

85% within 8 months of determining a 

pipeline or LNG facility application 

complete 

Target Met. 100% of NEPA 

documents completed for projects 

utilizing the pre-filing process within 8 

months of determining an application 

was complete

Percentage of qualifying LNG plants 

inspected during ongoing construction 

activity 

90% of plants inspected every 8 weeks 

Target Met. 100% of qualifying LNG 

plants were inspected at least once 

every 8 weeks during ongoing 

construction activity

Percentage of ILP pre-filing study plan 

determinations completed 

75% within 30 days of applicant filing 

revised study plan for Commission approval 

Target Met. 100% of determinations 

were completed within 30 days of 

applicant filing revised study plan for 

Commission approval

Percentage of infrastructure studies 

completed 

▪ 95% for regional and issue-based 

infrastructure conferences 

▪ 95% for Commission- and Congressional-directed studies 

▪ Target Met. 100% studies completed 

for regional and issue-based 

infrastructure conferences 

▪ Target Met. 100% studies completed 

for Commission- and Congressionaldirected studies

Percentage of electric transmission siting 

cases completed 90% within 365 days of filing

n/a. One electric transmission case 

entered the pre-filing stage, but it was 

withdrawn.

Timeliness of processing complete applications for incentive rates

▪ 100% of statutory cases processed 

within statutory deadlines or by applicant’s requested date, whichever is later 

▪ 80% of declaratory orders filed for 

Commission action within 180 days of 

filing date or by applicant’s requested 

date, whichever is later. 

▪ Target Met. 100% of the 15 statutory 

incentive rate cases were processed 

within the statutory timeframes

▪ Target met; 100% (6 of 6) of 

declaratory orders related to incentive 

rates were filed within target dates.

Timeliness of processing cost recovery 

cases (including prudently-incurred 

expenses to safeguard and enhance the 

reliability, security and safety of the 

energy infrastructure) 

▪ 100% of statutory cases processed 

within statutory deadlines or by applicant’s requested date, whichever is later 

▪ 90% of rate inserts for certificate cases 

processed within 30 days prior to lead 

office’s target date for completion of 

pipeline certificate case 

▪ 85% of cases that were set for hearing 

filed for Commission action within 12 

months of briefs opposing exceptions 

▪ Target Met. 100% of the 3,808 

statutory items, including cost recovery 

cases, were processed within the 

statutory deadlines

▪ Target Met. Provided timely rate 

inserts for 94% (47 out of 50) of the 

cases that were targeted for completion 

by the lead office during the fiscal year 

▪ Target not met; 50% (2 of 4) filed 

within 12 months of Briefs Opposing 

Exceptions.

Timeliness of verification of EQR submissions Within 10 business days of filing due date 

Target Met. 100 percent of EQR 

submissions were verified within 10 

business days.

Percentage of Accounting Inserts completed for inclusion in merit orders on 

cost recovery proposals for new gas 

pipeline infrastructure 

95% 

Target Met. 100 percent of gas 

certificate accounting inserts were 

completed on time.

Percentage of financial accounting filings completed timely 75% within 60 days of filing date 

Target Met. 97 percent of financial 

accounting filings were completed on 

time.

Percentage of reporting requirement 

filings completed timely 75% within 60 days of filing date 

Target Met. 100 percent of reporting 

requirement filings were completed 

within 60 days.

Assure Reliability of Interstate Transmission Grid

Timely approval of ERO/RE budgets 

and business plans Complete by November 1, 2008 

Target Met. The draft order approving 

the 2009 ERO/RE budgets and 

business plans was issued in Docket 

No. RR08-6-000 on October 16, 2008. 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 64

FY 2009

Performance Measure Performance Target Results

Timeliness of processing proposed reliability standards 

75% of filed proposed reliability standards 

are remanded or approved within 18 

months, unless found incomplete 

Target Met. 100% of filed reliability 

standards have orders issued within 18 

months. 

Review the performance of the ERO 

Complete within 12 months of the submission by the ERO of an assessment of 

its performance 

n/a. ERO performance assessment 

filing was made on July 20, 2009 in 

Docket No. RR09-7-000, with a 

targeted completion date of December 

2009.

Number of ERO Regional Entity compliance audits in which FERC participates 

At least one in each of the eight regions 

Target Met. Participated on 8 Regional 

Entity audits, one in each region, by 

June 25, 2009. 

Percentage of ERO / industry reliability 

readiness evaluations of Reliability 

Coordinators in which FERC participates 

75% 

N/A. The ERO/industry reliability 

readiness evaluations of Reliability 

Coordinators were discontinued in FY

2009.

Percentage of load served, included in 

ERO / industry reliability readiness 

evaluations, in which FERC participates 

35% 

Target Met. Participated in 2 readiness 

evaluations which represented 78% of 

load served.

Percentage of ERO penalty action rulings reviewed or tolled to prevent inappropriate rulings from going into effect 

by default 

100% 

Target Met. In FY 2009, 35 Notices of 

Penalty covering 83 violations were 

filed. All 35 were reviewed for 

appropriateness of the finding of 

violation and penalty and accepted by 

operation of law, with a public notice 

of each acceptance issued within the 

required period for Commission action.

Assess Notices of Alleged Violation and 

Sanction received from the ERO 

Review 60% of Notices of Alleged Violation and Sanction received from ERO 

within two weeks of receipt for appropriateness of sanction 

Target Met. In FY2009, 149 Notices 

of Alleged Violations and Sanctions 

covering 579 alleged violations were 

submitted through the portals. Each 

was reported on and recorded routinely 

by way of (1) The Overview of 

Reliability Orders, Matters and 

Deadlines Chart, and (2) The Pending 

Case Report prepared by the Division 

of Investigations. 

Timeliness of reporting to the Commission on ERO and Regional Entity audits Within 120 days of the Commencement 

Letter 

Target Met. 100 percent (3/3) of 

Regional Entity audits reported to the 

Commission within 120 days.

Percentage of ERO and Regional Entity 

audit recommendations issued and implemented 90% within 6 months 

Target Met. 100 percent (20/20) of 

Regional Entity audit 

recommendations implemented in 6 

months.

Protect Safety at LNG and Hydropower Facilities

Percentage of high- and significant- -

hazard-potential dams inspected annually 90% 

Target Met. 90% of high- and 

significant- hazard-potential dams 

inspected

Percentage of high- and significanthazard-potential dams that either meet 

all current structural safety standards or 

are undergoing investigation or remediation 

90% 

Target Met. 90% of high- and 

significant hazard-potential dams either 

met all current structural safety 

standards or are undergoing 

investigation or remediation.

Percentage of LNG peak-shaving facilities inspected biennially 90% Target Met. 100% of LNG peakshaving facilities were inspected 

Percentage of LNG import terminals 

inspected annually 90% Target Met. 100% of the LNG import terminals were inspected
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 65

FY 2009

Performance Measure Performance Target Results

Percentage of qualifying dams that either 

comply with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s) 

90% Target Met. 90% of qualifying dams 

complied with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s) 

Control access to CEII 

No instances of improper access or improper denial affecting national security or 

Commission proceedings 

Target Met. No instances. 

Incorporate Environmental Considerations into Commission Decisions

Percentage of final inspection reports 

completed 75% within 4 months of inspection 

Target Met. 100% of final inspection 

reports completed within 4 months of 

inspection 

Timeliness of issuing environmental 

licensing requirements 

Licensing responsibility letters sent within 

60 days of license issuance date 

Target Met. All licensing 

responsibility letters sent within 60 

days of license issuance date 

Percentage of final NEPA documents 

issued for ALP/TLP cases: ▪ with 

settlement agreements ▪ without 

settlement agreements 

▪ 75% within 12 months of settlement 

filing date 

▪ 75% within 24 months of REA date 

▪ Target Met. 100% within 12 months 

of settlement filing date 

▪ Target Met. 100% within 24 months 

of REA date

Percentage of qualifying, major, onshore-pipeline projects inspected during 

ongoing construction activity 

90% of projects inspected at least once 

every four weeks 

Target Met. 97% of qualifying projects 

were inspected at least once every 4 

weeks.

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 66

PERFORMANCE DATA FOR COMPETITIVE MARKETS: FY 2008 - 2009

FY 2008

Strategy

Performance Measurement Performance Target Results

Employ Best Practices in Rules

Percentage of initial orders completed on 

third-party complaints

 75% filed with the Commission 

within 60 days of the date of the answer 

or by complainant’s requested date, 

whichever is later

 90% filed with the Commission 

within 180 days of the date of the 

answer, or by complainant’s requested 

date, whichever is later

 Target Met. 83% (40 of 48) filed 

within 60 days of the date of the answer.

 Target Met. 98% (47 of 48) filed 

within 180 days of the date of the 

answer.

Timeliness of review of proposed 

RTO/ISO market rules

100% by the statutory due date or the 

applicant’s requested date, whichever is 

later

Target Met. 100% (410 out of 410) 

filings from PJM, ISO-NE, NYISO, 

NEPOOL, SPP, Midwest ISO, and 

California ISO were acted on by 

statutory due dates

Percentage of proposed NAESB 

business practice standards rulemakings 

completed

100% of all proposed rulemakings 

within 12 months of receipt of 

comments

Target Met. The Commission issued 

one NAESB business practice standards 

rulemaking.

Docket No. RM05-5-005, NOPR issued 

April 21, 2008; Final Rule, Order No. 

676-C, “Standards for Business Practices 

and Communication Protocols for Public 

Utilities,” issued July 21, 2008 (three 

months later)

Timeliness of processing cases that 

encourage demand response in 

organized markets

100% of statutory cases processed 

within statutory deadlines, or by the 

applicant’s requested date, whichever is 

later

Target Met. 100% (10 out of 10) filings 

were acted on by statutory due dates.

Industry and state outreach to increase 

Commission awareness and 

understanding on emerging energy 

issues

Participate in and/or facilitate 10 

sessions per quarter

Target Met. Participated in and/or 

facilitated 34 sessions in first quarter, 36 

sessions in second quarter, 33 sessions in 

third quarter, and 28 sessions in fourth 

quarter.

Reduce Barriers to Trade Between Markets and Among Regions

Timeliness of processing complete 

filings to reduce or eliminate border 

utility issues between markets

100% processed by the statutory due 

date or applicant’s requested date, 

whichever is later

Target Met. 100% (6 out of 6) filings 

dealing with border utility issues 

between markets were completed by 

statutory due dates.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 67

FY 2008

Strategy

Performance Measurement Performance Target Results

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 

market-based rate filings

100% processed within 60 days of the 

filing date of a complete application or 

by applicant’s requested date, whichever 

is later

Target Met. 100% (156 out of 156) of 

initial market-based rate applications 

were completed by the established target 

date.

FY 2009

Performance Measure Performance Target Results

Employ Best Practices in Rules

Percentage of initial orders completed on 

third-party complaints 

▪ 75% filed with the Commission within 

60 days of the date of the answer or by 

complainant’s requested date, whichever 

is later 

▪ 90% filed with the Commission within 

180 days of the date of the answer, or by 

complainant’s requested date, whichever 

is later 

▪ Target met; 78% (28 of 36) filed within 

60 days. 

▪ Target met; 97% (35 of 36) filed within 

the 180 days.

Timeliness of review of proposed RTO/ 

ISO market rules 

100% by the statutory due date or the 

applicant’s requested date, whichever is 

later 

Target Met. 100% of the 221 filings 

from PJM, ISO New England, New 

York ISO, Southwest Power Pool, 

Midwest ISO, and California ISO were 

acted on by the statutory due dates

Timeliness of processing cases that 

encourage demand response in organized markets 

100% of statutory cases processed 

within statutory deadlines or by the 

applicant’s requested date, whichever is 

later 

Target Met. 100% of the 15 filings to 

encourage demand response were acted 

on by the statutory deadlines 

Industry and state outreach to increase

Commission awareness and understanding on emerging energy issues 

Participate in and/or facilitate 10 sessions per quarter 

Target Met. Participated in and/or 

facilitated 23 sessions in the first quarter, 

24 sessions in the second quarter, 17 

sessions in the third quarter, and 11 

sessions in the fourth quarter of the 

fiscal year 

Reduce Barriers to Trade Between Markets and Among Regions

Timeliness of processing complete filings to reduce or eliminate border utility 

issues between markets 

100% processed by the statutory due 

date or applicant’s requested date, 

whichever is later 

Target Met. 100% of the 8 filings 

dealing with border utility issues 

between markets were completed by the 

statutory due dates 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 68

FY 2009

Performance Measure Performance Target Results

Assure Proposed Mergers and Acquisitions are in the Public Interest

Timeliness of processing complete filings for the disposition, consolidation, or 

acquisition, under section 203 of the 

FPA, of jurisdictional facilities 

(including transactions involving certain 

transfers of generation facilities and 

public utility holding company transactions, and issues of cross subsidization 

or encumbrances of utility assets) 

100% processed within 180 days for 

non-major dispositions 100% processed 

within 360 days for major dispositions 

Target Met. 100% of the 95 non-major 

dispositions and the 1 major merger case 

were completed by the established 

deadlines

Address Market Power in Jurisdictional Wholesale Markets

Timeliness of processing initial electric 

market-based rate filings 

100% processed within 60 days of the 

filing date of a complete application or 

by applicant’s requested date, whichever 

is later 

Target Met. 100% of the 189 initial 

market-based rate applications were 

completed by the established target date

Revise and clarify Standards of Conduct Issue Final Rule by December 31, 2008 

Target Met. Order No. 717 revising 

Standards of Conduct for Transmission 

Providers issued October 16, 2008, and 

became effective November 26, 2008.

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 69

PERFORMANCE DATA FOR ENFORCEMENT: FY 2008 - 2009

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)
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 70

FY 2008

Strategy

Performance Measure Target Results

Conduct investigations promptly and impose penalties where appropriate

Timeliness of initiating or deciding 

action on MMU referrals 80% acted on within 30 days Target Met. 100% acted on within 30 days.

Percentage of enforcement 

investigations not including market 

manipulation issues completed

75% within one year of initiation Target Met. 89% completed within one 

year of initiation.

Percentage of market manipulation 

enforcement investigations completed 75% within two years of initiation Target Met. 100% completed within two years of initiation.

Percentage of Hotline calls resolved 70% within 2 weeks of initial contact Target Met. 78% resolved within 2 

weeks of initial contact.

Encourage self-policing and -reporting of violations

Percentage of regulated entities audited 

to ensure internal compliance programs 

and processes are in place

85% of regulated entities included in 

annual audit plan Target Met. 97% (77 out of 79).

Process complete requests for “No 

Action” Within 60 days of receipt of final request

Target Met. All five requested noaction 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.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 71

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.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 72

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.

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 73

PERFORMANCE DATA FOR SUPPORTING INITIATIVES: FY 2008 - 2009

FY 2008

Performance Measure Performance Target Results

Number of ADR requests and referrals 

addressed by the Dispute Resolution 

Service (DRS)

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 

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 

 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. 
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 74

FY 2008

Performance Measure Performance Target Results

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 

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.

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 performance-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.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 75

FY 2008

Performance Measure Performance Target Results

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%.

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 timesensitive agency actions on the 

Commission’s internet website within 1 

hour of issuance 

▪ Provide an initial and complete response to 70% of inquiries at the time of 

the receipt of the request 

▪ Develop webpages within the assigned 

timeframe to enhance and support the 

Commission’s initiatives and goals 

▪ Target Met. In FY 2009, 42 out of 

43or 99% of press releases were issued 

within 1 hour of action being taken.

▪ Target Met. In FY 2009, 4066 out of 

4066 or 100% of important agency 

actions were posted on the 

Commission’s internet website within 1 

hour of issuance. 

▪ Target Met. In FY 2009, the office 

provided an initial and complete 

response to 3476 out of 4753 or 73% of 

public inquiries at the time of receipt.

▪ Target Met. In FY 2009, this office 

developed 11 out of 11 web page 

requests. All were completed on 

schedule.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 76

FY 2009

Performance Measure Performance Target Results

Enhance communication with National 

and International groups

▪ Provide responses to 95% of Congressional inquiries and briefing requests by 

the date requested or by 10 business 

days from the date of the request 

▪ Provide email notification of significant Commission actions to Congress 

within 1 to 2 business days of the underlying action along with briefing offers 

where appropriate 

▪ Provide timely and effective briefings 

to members of Congress and State Officials within the timeframe requested and 

initiate at least three briefings on top 

priority issues within timeframe appropriate to effect that issue 

▪ Provide email notification of outreach 

efforts (i.e., panel discussions, workshops, conferences or other forums) to 

State Officials and Governors within 3 

business days 

▪ Respond to 80% of international delegation meetings requests within 3 business days of rendering a decision 

▪ Target Met. In FY 2009, External 

Affairs responded to 100% (211 out of 

211) of congressional inquiries and 

briefing requests within 10 business 

days.

▪ Target Met. In FY 2009, 165 email 

notifications to members of Congress 

were sent out on top priority issues 

regarding significant Commission 

actions within 1 to 2 business days of the 

underlining action

▪ Target Met. In FY 2009, 46 briefings 

for Congress and State Officials were 

conducted on priority issues of natural 

gas pipelines, transmission planning and 

integration of renewables, demand 

response, and cyber security. 

▪ Target Met. In FY 2009, email 

notifications were sent out 

simultaneously for 142 out of 142 

(100%) Commission actions of interest 

to State regulatory agencies on 

significant Commission actions within 1 

to 2 business days of the underlining 

action. 

▪ Target Met. In FY 2009, OEA 

responded to and coordinated 52 

approved visits; 44 or 84.6% received 

responses within 3 business days.

Maintain an effective recruiting program 

▪ Increase retention rate of new hires 

over FY 2008 

▪ Hire 20% of interns into permanent 

positions 

▪ Implement a formal mid-career recruiting program by December 31, 2008 

• Target Met. The annualized 

retention rate of new hires 

increased from 91.7% (144/157) 

for FY 08 to 92.1% (187/203) for 

FY 09.

• Target Met. 34% (12 of 35) of 

interns from summer 2008 

program were converted in FY 09.

• Target Not Met. The formal four 

phase mid-level recruitment 

program strategy was launched on 

6/1/09. No negative impact by the 

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.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 77

FY 2009

Performance Measure Performance Target Results

Maintain an effective performance management system 

▪ All employees and managers receive 

training annually 

▪ Provide feedback to managers to ensure ratings reflect meaningful distinctions between performance 

▪ High achievers are rewarded appropriately 

• Target Met. all employees and 

managers received Performance 

Management Training

• Target Met. Managers received 

feedback which explained 

meaningful distinctions between 

performance. 

• Target Met – The Commission’s 

analysis identified that on average, 

FERC rewarded:

o highly successful 

employees 31% higher 

monetary awards than 

fully successful 

employees;

o outstanding employees 

49% higher monetary 

awards than highly 

successful employees; 

and

o outstanding employees 

with 96% higher 

monetary awards than 

fully successful 

employees.

Ensure appropriate representation of 

women and minorities at all levels 

within the organization 

Increase over FY 2008 baseline 

▪ Target Not Met. FY09 percentage for 

women was 44.6%. Decreased 

percentage from FY08 by less than 1% 

(FY08 – 45.5%). Modify target for FY 

2010 and future years to be “Equal to or 

greater than Total Federal Workforce 

percentage.”

▪ Target Not Met. FY09 percentage for 

minorities was 32.3%. Decreased 

percentage from FY08 by less than 1% 

(FY08 – 32.9%). Modify target for FY 

2010 and future years to be “Equal to or 

greater than Total Federal Workforce 

percentage.”

Maintain reliable financial management 

systems which generate accurate and 

timely financial information to support 

operating, budget, and policy decisions 

▪ Unqualified audit opinion on financial 

statements 

▪ Unqualified assurance assertion on 

internal controls 

▪ Target Met – Received unqualified 

audit opinion on FY 09 principal 

statements 11/6/09.

▪ Target Met – Issued unqualified 

assurance assertion on controls in place 

as of 6/30/09.

Manage acquisitions in accordance with 

federal requirements and ensure process 

provides for the efficient use of Commission resources 

▪ 25% of total procurement dollars 

awarded to small, women-owned, and 

minority businesses 

▪ 100% of qualified procurements are 

performance-based 

▪ Target Met. 33% of total available 

procurement dollars were awarded to 

small businesses during FY09. 

▪ Target Met. 100% of qualified FY09 

procurements were performance-based 

acquisitions.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 78

PERFORMANCE DATA FOR JUST & REASONABLE RATES, TERMS AND 

CONDITIONS: FY 2010 - 2013

Further barriers to participation by demand resources in organized wholesale electric markets will be identified and 

eliminated.

Year Target Result

FY 2010

Evaluate ISO/RTO filings on barriers to demand 

response. Complete and submit National Action Plan on 

Demand Response

Target Met. In FY 2010, issued orders evaluating 6 

filings submitted by RTOs and ISOs to identify barriers to 

demand response and to comply with other requirements 

of Order No. 719. 

Completed and published on June 17, 2010, a National 

Action Plan on Demand Response (Docket No. AD09-10)

FY 2011

As appropriate, issue Notice of Proposed Rulemaking on 

further steps to eliminate barriers to demand resources, 

including steps identified in National Action Plan on 

Demand Response

Target Exceeded. On March 18, 2010, the Commission 

issued a notice of proposed rulemaking in Docket No. 

RM10-17-000, on Demand Response Compensation in 

Organized Wholesale Energy Markets, which proposed to 

eliminate a barrier to demand response resources 

receiving the same compensation as other supply-side 

resources selling into the organized wholesale electric 

market. The Commission was able meet the FY 2012 

target ahead of schedule and issued the final rule, Order 

No. 745, requiring that demand response resources be 

paid the same market-clearing price as other resources 

was issued on March 15, 2011. 

FY 2012 As appropriate, issue Final Rule on further steps to 

eliminate barriers to demand resources

Target Met. On December 15, 2011, the Commission 

issued Order 745-A, Demand Response Compensation in 

Organized Wholesale Energy Markets order on rehearing.

FY 2013 Implement Final Rule as appropriate

Target Met. The Commission issued an order on the sixth 

and remaining initial compliance filing related to Order 

No. 745, Demand Response Compensation in Organized 

Wholesale Energy Markets (Docket No. ER11-4338-000).

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 79

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

organized wholesale electric markets.

Year Target Result

FY 2010

Perform outreach with ISOs/RTOs, demand response 

providers, and others; as appropriate, issue NOPR on 

best practices

Target Met. Engaged in outreach between October 1, 

2009 and January 31, 2010 with RTOs/ISOs, demand 

response providers, retail industry, technology providers 

and state regulators regarding practices affecting demand 

response products and procedures. One of the best 

practices identified concerned the level of compensation 

paid to demand response resources participating in 

wholesale electricity markets. On March 18, 2010, issued 

a notice of proposed rulemaking entitled Demand 

Response Compensation in Wholesale Electric Markets 

(Docket No. RM10-17).

FY 2011 As appropriate, issue Final Rule on best practices

Target Met. The Commission issued Order No. 745, 

Demand Response Compensation in Organized 

Wholesale Energy Markets, on March 15, 2011.Having 

identified a best practice used by some RTOs to 

compensate demand response resources at the same price 

received by other supply-side resources, such as 

generation, the final rule required all RTOs to pay 

comparable compensation to demand response resources 

in their own markets.

FY 2012 Implement Final Rule as appropriate

Target Met. The Commission has reviewed the filings 

made by six RTOs and ISOs to comply with Order No. 

745, Demand Response Compensation in Organized 

Wholesale Energy Markets. The Commission determined 

that implementation of the Final Rule as proposed by five 

of the six RTOs and ISOs is appropriate, subject to 

additional compliance requirements in some instances, 

and issued orders on these five compliance filings. The 

Commission is determining whether implementation of 

the Final Rule as proposed in the sixth compliance filing 

is appropriate. 

Further, the Commission addressed other best practices by 

issuing a notice of proposed rulemaking on Standards for 

Business Practice and Communication Protocols for 

Public Utilities - Wholesale Electric Quadrant Demand 

Response Standards on April 19, 2012.

FY 2013 Monitor implementation and performance

Target Met. The Commission issued an order on the sixth 

and remaining initial compliance filing related to Order 

No. 745, Demand Response Compensation in Organized 

Wholesale Energy Markets. 

Further, the Commission on February 21, 2013, issued a 

Final Rule (Order No. 676-G) adopting Standards for 

Business Practices and Communications Protocols for 

Public Utilities.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 80

All resources that are technically capable of providing needed ancillary services have the opportunity to provide those 

services.

Year Target Result

FY 2010

Perform outreach to identify the need for modification or 

creation of additional ancillary services, and issue 

NOPR, as appropriate

Target Not Met. Engaged in outreach between October 1, 

2009 and June 30, 2010 with RTOs/ISOs, storage and 

other technology providers, industrial customers, and 

research organizations. On January 21, 2010, issued a 

Notice of Inquiry seeking public comment on the extent 

to which reforms are necessary to ensure that wholesale 

electricity tariffs, including those governing ancillary 

services, remain just, reasonable and not unduly 

discriminatory (Integration of Variable Energy Resources, 

Docket No. RM10-11-000). The Commission received 

over 2,000 pages of comments from industry, state & 

federal agencies, and consumer interests, which are being 

analyzed by Commission staff to determine the need to 

modify existing, or create additional, ancillary services 

through a NOPR. Because of the large number of 

comments, more time is needed to develop specific 

proposals to include in a NOPR. Work on a NOPR 

proposal will continue into the FY11. Although the 

Commission did not issue the NOPR in FY10, it will not 

have a negative impact on achieving future targets or 

overall program performance.

FY 2011 As appropriate, issue Final Rule on ancillary service 

products and procedures

Target Not Met. Until recently, generation resources 

provided all ancillary services used to support open access 

transmission services offered by transmission-owning 

utilities, RTOs and ISOs. New technologies, such as 

demand response and energy storage devices, are now

available and capable of providing some needed ancillary 

services. A notice of inquiry was issued on Third-Party 

Provision of Ancillary Services; Accounting and 

Financial Reporting for New Electric Storage 

Technologies on June 15, 2011 (RM11-24-000). A notice 

of proposed rulemaking on Frequency Regulation 

Compensation in the Organized Wholesale Power 

Markets was issued on February 17, 2011.A draft final 

rule was submitted for the Commission’s consideration on 

September 29, 2011. This will not have a negative impact 

on program performance.

FY 2012 Implement Final Rule as appropriate

Target Met. The Commission issued Order Nos. 755 and 

755-A, Frequency Regulation Compensation in Organized 

Wholesale Power Markets on October 20, 2011 and 

February 16, 2012, respectively. The Commission has 

reviewed the filings made by five RTOs and ISOs to 

comply with the Final Rule. The Commission determined 

that implementation of the Final Rule as proposed by 

three of the RTOs and ISOs is appropriate, subject to 

additional compliance requirements in some instances, 

and issued orders on these three compliance filings. The 

Commission is determining whether implementation of 

the Final Rule as proposed in the two remaining 

compliance filing is appropriate.

Further supporting this measure, the Commission issued a 

notice of proposed rulemaking on Third-Party Provision 

of Ancillary Services; Accounting and Financial 

Reporting for New Electric Storage Technologies on June 

21, 2012.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 81

All resources that are technically capable of providing needed ancillary services have the opportunity to provide those 

services.

Year Target Result

FY 2013 Monitor implementation and performance

Target Met. The Commission issued orders on the two 

remaining compliance filings associated with Order No. 

755, Frequency Regulation Compensation in the 

Organized Wholesale Power Markets. Further, a filing by 

a regional transmission organization not initially subject 

to Order No. 755 was made in FY 2013 and is pending 

Commission action.

Further supporting this measure, the Commission issued 

Order No. 784, adopting the notice of proposed 

rulemaking on Third Party Provision of Ancillary 

Services; Accounting for Financial Reporting for New 

Electric Storage Technologies.

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 82

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

in Commission-jurisdictional markets.

Year Target Result

FY 2010

Perform outreach with industry and issue staff white 

paper identifying potential need for and types of market 

reforms

Target Met and Exceeded.Conducted outreach between 

October 1, 2009 and June 30, 2010 with RTOs/ISOs, 

storage and other technology providers, industrial 

customers, and research organizations. After the outreach 

was completed, the Commission determined a Notice of 

Inquiry could be issued in lieu of a staff white paper and 

still achieve the same purpose. On January 21, 2010, 

issued an NOI seeking comment on the integration of 

variable energy (renewable) resources (Integration of 

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

FY 2011 Issue a NOI/NOPR on market reforms, if appropriate

Target Met. The Commission issued a notice of proposed 

rulemaking, Integration of Variable Energy Resources 

(RM10-17-000) on November 18, 2010.

FY 2012 Issue Final Rule on market reforms, if appropriate Target Met. On June 21, 2012, the Commission issued 

Order No. 764, Integration of Variable Energy Resources. 

FY 2013 Monitor implementation and performance

Target Met. On December 20, 2012 and September 19, 

2013, the Commission issued orders on rehearing of 

Order No. 764, Integration of Variable Energy Resources. 

The Commission also extended the deadline for 

submission of compliance filings from September 11, 

2013 to November 12, 2013.

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 83

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

hardware.

Year Target Result

FY 2010

Internal release of staff white paper; industry outreach, 

including technical conferences, to identify best 

practices

Target Met.Explored opportunities to enhance operational 

efficiency in jurisdictional markets through the 

deployment of new modeling software and optimization 

of market operations. Staff held three conferences in June 

2010 to gather information from the public regarding 

modeling and software enhancements. On July 29, 2010, 

delivered a white paper to the Commission’s Chief of 

Staff outlining opportunities for further work on this 

project. 

FY 2011

Pursue voluntary adoption of best practices by 

RTOs/ISOs; if appropriate, issue Policy Statement 

and/or NOI/NOPR

Target Met. A technical conference exploring best 

practices was convened on June 28-30, 2011.At the 

conference, market operators and others discussed best 

practices, software improvements and optimization 

processes. This forum allows for the diffusion of 

knowledge of useful best practices, reports to a wide 

audience on improvements under development, and 

provides useful information that market operators can use 

to access improvements in their own operations based on 

the best practices of their peers.

FY 2012 Follow-up workshops on best practices implementation; 

issue Final Rule, if relevant

Target Met. On March 20, 2012, a workshop on best 

practices in software planning modeling was held.

A Final Rule is not relevant for this performance measure. 

In FY 2011, it was determined that a technical conference 

would be more effective in furthering implementation of 

best practices than initiating a rulemaking proceeding. 

Without a rulemaking proceeding in FY 2011, pursuance 

of a Final Rule in FY 2012 was no longer relevant. 

Rather, staff held a follow-up workshop to identify best 

practices in the specific area of software planning 

modeling.

FY 2013 Monitor implementation and performance

Target Met. The Commission held a meeting on Potential 

Improvements in Computational Models for Markets of 

the Future to Enhance the Efficiency of Independent 

System Operators Markets in 2025 on May 2, 2013. The 

Commission also held a Technical Conference on 

Increasing Real-Time and Day-Ahead Market Efficiency 

Through Improved Software (AD10-12-004) on June 24-

26, 2013. 

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 84

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

using a common set of metrics.1

Year Target Result

FY 2010 Explore and develop appropriate operational and 

financial metrics for ISOs/RTOs

Target Not Met.

During FY 2010, Commission staff worked with RTO 

and ISO staff, stakeholders and other experts to develop 

standardized metrics to track the performance of RTOs 

and ISOs and transactions in the markets they administer. 

Proposed metrics were made publicly available for 

comment in February 2010, and Commission staff has 

reviewed comments submitted on the proposed metrics. 

While the final metrics were not issued during FY 2010, 

this had no adverse impact on the program. The 

Commission expects to release the final metrics in early 

FY 2011 and to collect data from the RTOs and ISOs 

shortly thereafter. These final metrics will measure 

performance with respect to a number of areas, including: 

reliability standards, customer costs, demand response 

market penetration, and transmission investment.

FY 2011 Explore and develop appropriate operational and 

financial metrics for non-ISO/RTO regions

Target Not Met. Commission staff has been engaged in a 

voluntary and collaborative process with a diverse group 

of non-RTO utilities to develop proposed operational and 

financial performance metrics for non-RTO regions. 

Outreach meetings were held in September 2011 with 

major industry organizations to discuss the proposed 

performance metrics. Following these outreach meetings, 

the proposed performance metrics will be issued for 

public comment. In FY 2012, Commission staff will 

issue a report that addresses the comments and 

recommends the final list of performance metrics. 

Participating non-RTO utilities will then issue their 

reports on these final metrics and Commission staff will 

issue a final report. While the final metrics were not 

issued during FY 2011, Commission staff is on schedule 

to issue final metrics in FY 2012 which will have no 

adverse impact on the program. Commission staff 

expects to release the final metrics and collect data from 

non-RTO utilities on these metrics by the third quarter of 

FY 2012.

FY 2012 Explore and develop appropriate operational and 

financial metrics for non-ISOs/RTO regions

Target Not Met. Beginning in FY 2011, Commission 

staff has been engaged in a voluntary and collaborative 

process with a diverse group of non-RTO utilities to 

develop proposed operational and financial performance 

metrics. It has taken longer than anticipated for this 

group to organize and reach consensus on a list of 

proposed metrics. In February 2012, the draft metrics 

were issued for public comment with an extended 

comment period of 75 days, 45 days longer than the 

typical 30 day comment period. Commission staff 

expects to issue in FY 2013 a report that will recommend 

a final list of performance metrics. This will not have a 

negative impact on program performance.

FY 2013 Establish appropriate common metrics between 

ISOs/RTOs and non-ISOs/RTOs

Target Met. Staff issued a report specifying performance 

metrics for regions outside ISO and RTO markets. The 

metrics in this report are a subset of the ISO and RTO 

performance metrics and therefore represent common 

metrics that are applicable to all regions. 

 1

The FY 2012 Performance Target reflects an adjustment made to the Commission’s Strategic Plan as allowed 

by the GPRA Modernization Act of 2010.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 85

By FY 2014, appropriate filings and issues will employ alternative dispute resolution and collaborative processes first.2

Year Target Result

FY 2010 Develop guidelines/tariff provisions to apply to 

filings/issues amenable to consensual resolution

Target Not Met

During FY 2010, staff reviewed and categorized two 

years of recent Commission orders which set cases for 

consensual resolution/hearing. Internal dialogue with 

senior staff and program managers provided additional 

understanding into the types of cases which may be 

amenable to consensual resolution. Through these efforts, 

a baseline of the types of cases and issues that the 

Commission traditionally sets for consensual 

resolution/hearing was established.

Following this internal communication, staff identified a 

list of approximately 30 external stakeholders who could 

provide valuable insight to the guideline development 

process. Acquiring the input from these external 

stakeholders has taken significantly more time than 

anticipated because the number of external parties is 

much higher than originally planned. The meetings that 

have occurred to date have been very productive and the 

Commission staff will continue to meet with the 

remaining parties throughout the first and second quarters 

of FY 2011. Although the Commission did not finalize 

the guidelines in FY 2010, it will not have a negative 

impact on overall program performance. The 

Commission staff will work diligently in FY 2011 to 

incorporate into the guidelines the external parties’ 

feedback. Further, the Commission will make every 

effort to initiate the pilot in the second half of FY 2011 in 

accordance with the established target date.

FY 2011 Implement rules setting forth guidelines/tariff provisions 

and initiate pilot programs

Target Not Met. The Commission was not able to meet 

this target due to the retirement of key management 

personnel during FY 2011. However, staff was able to 

make significant progress by meeting with 13 external 

stakeholder organizations. These organizations represent 

a broad spectrum of industries subject to Commission 

regulation. Their input was sought on new areas and 

types of issues where collaborative processes could foster 

the settlement of proceedings. Based on suggestions 

received in these meetings, staff prepared 

recommendations on additional issues and types of 

Commission proceedings where collaborative processes 

may be the most effective. Although the guidelines were 

not implemented in FY 2011, it will not have a negative 

impact on overall program performance.

FY 2012 Implement rules setting forth guidelines/tariff provisions 

and initiate pilot programs

Target Not Met. No additional measures for consensual 

resolution were identified as feasible; therefore, this 

measure is no longer applicable. This will not have a 

negative impact on program performance.

 2

The FY 2012 Performance Target reflects an adjustment made to the Commission’s Strategic Plan as allowed 

by the GPRA Modernization Act of 2010.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 86

By FY 2014, 70 percent of company compliance programs reviewed on Commission audits for the audit focus areas are 

found to be adequate to demonstrate a culture of compliance.

Year Target Result

FY 2010 10%

Target Met. 50% (2/4) of compliance programs were 

found to demonstrate an adequate culture of compliance. 

Because this performance measure is new for FY 2010, 

only audits that were started and completed in FY 2010 

were included. In determining which audits would be 

included in the universe for this measure, the Commission 

developed general guidelines. In order to maintain 

consistency over time, only large, multi-scope audits will 

be included in this measure’s universe.

FY 2011 25%

Target Met. The Commission found that 63% (5/8) of 

compliance programs were adequate to demonstrate a 

culture of compliance.

FY 2012 40%

Target Met. The Commission found that 67% (8 of 12) 

compliance programs were adequate to demonstrate a 

culture of compliance.

FY 2013 55%

Target Met. 90% (18 out of 20) of compliance programs 

found to be adequate to demonstrate a culture of 

compliance.

By 2014, 70 percent of compliance programs reviewed through investigations that involve a penalty are found to be 

sufficiently robust to merit credit to reduce the penalty.

Year Target Result

FY 2010 10%

Target Met. During FY 2010, 26 percent (20 out of 77) of 

the relevant cases, the Commission found compliance 

programs in place at the time of the violation to be 

sufficiently robust as to merit credit to reduce or eliminate 

penalties.

FY 2011 25%

Target Met. In 32% (32/100) of the relevant cases, the 

Commission found compliance programs in place at the 

time of the violation to be sufficiently robust as to merit 

credit to reduce or eliminate penalties.

FY 2012 40%

Target Met. In 43% of the relevant cases, the 

Commission found compliance programs in place at the 

time of the violation to be sufficiently robust as to merit 

credit to reduce or eliminate penalties.

FY 2013 55%

Target Met. In 55% (10 out of 18) of the relevant cases, 

the Commission found compliance programs in place at 

the time of the violation to be sufficiently robust as to 

merit credit to reduce or eliminate penalties.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 87

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

Year Target Result

FY 2010 40% Target Met. 55% (52/94) audits planned using a riskbased approach.

FY 2011 60% Target Met. 85% (57/67) of the audits were planned by 

the Commission staff using a risk-based approach.

FY 2012 80% Target Met. 88% (43 of 49) of the audits were planned by 

the Commission staff using a risk-based approach.

FY 2013 80% Target Met. 98% (47 out of 48) of audits planned using a 

risk-based approach.

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FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 88

PERFORMANCE DATA FOR INFRASTRUCTURE: FY 2010 - 2013

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

Year Target Result

FY 2010 5%

Target Met. In FY 2010, the Commission acted on 11 

requests for incentives or negotiated rate authority for 

new transmission. Of those 11 requests, the Commission 

found one project (9 percent) which included advanced 

transmission technologies.

FY 2011 10% Target Met. Of the projects that met the criteria, 67% 

(10/15) incorporated advanced technologies.

FY 2012 20% Target Met. Of the projects that met the criteria 68% (17 

projects) incorporated advanced technologies.

FY 2013 35% Target Met. Of the 25 projects that met the criteria, 16 

(64%) incorporated advanced technologies.

By 2014, all public utilities will implement open and transparent transmission planning processes that include analysis 

and consideration on a comparable basis of proposed solutions involving any of generation, transmission, and demand 

resources.

Year Target Result

FY 2010

Assessment of transmission planning process best 

practices, including the potential for collaborative 

decision making, and issue NOPR, as appropriate 

(Assessment includes how options to transmission are 

considered.)

Target Met.Upon review of more than 3,000 pages of 

comments and significant staff-led outreach, staff 

prepared recommendations for Commission consideration 

that led to the issuance of a NOPR on June 17, 2010 

(Transmission Planning and Cost Allocation by 

Transmission Owning and Operating Public Utilities, 

Docket No. RM10-23-000).

FY 2011 As appropriate, issue Final Rule on transmission 

planning process best practices

Target Met. The Commission issued the final rule, Order 

No. 1000, Transmission Planning and Cost Allocation by 

Transmission Owning and Operating Public Utilities, 

(RM10-23-000) on July 17, 2011.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

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By 2014, all public utilities will implement open and transparent transmission planning processes that include analysis 

and consideration on a comparable basis of proposed solutions involving any of generation, transmission, and demand 

resources.

FY 2012 Implement Final Rule as appropriate

Target Met. The Commission in Order No. 1000 

encouraged public utility transmission providers to 

engage in frequent dialogue with Commission staff to 

explore issues that are specific to each transmission 

planning region in preparing their compliance filings 

(which are due in October 2012). To facilitate that dialog, 

Commission staff identified regional meetings where 

public utilities intended to discuss compliance with Order 

No. 1000, and participated, by phone and in-person, at 

173 of those meetings. Staff’s participation was both to 

monitor the progress of each region and to act as a 

resource for public utility transmission providers and 

stakeholders about issues related to Order No. 1000. In 

addition, staff was available to answer questions and meet 

with public utility transmission providers and 

stakeholders that had specific questions about Order No. 

1000 compliance. 

FY 2013 Monitor implementation and performance

Target Met. In FY 2013, the Commission issued fifteen 

orders addressing all of the initial regional compliance 

filings. Also, Commission staff attended, in person and 

through teleconference, various Order No. 1000 open 

meetings held in each transmission planning region. At 

these meetings, staff provided assistance to public 

utilities, stakeholders and other interested parties 

regarding the interregional compliance requirements of 

Order No. 1000. 

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FY 2013 Performance & Accountability Report

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

recovery systems.

Year Target Result

FY 2010 20%

Target Met.In FY 2010, Commission staff examined 44 

(20 percent) of the Commission’s jurisdictional natural 

gas companies for feasibility of installing waste heat 

recovery systems. 

FY 2011 40%

Target Met. Commission staff examined a total of 40% 

of the Commission’s jurisdictional natural gas companies 

(65 of 159) for feasibility of installing waste heat 

recovery systems. In FY 2011 specifically, Commission 

staff examined 32 companies.

FY 2012 60%

Target Met. In FY 2012, Commission staff examined a 

total of 62% of the Commission’s jurisdictional natural 

gas companies (98 of 159) for feasibility of installing 

waste heat recovery systems. In FY 2012 specifically, 

Commission staff examined 33 companies. 

FY 2013 80%

Target Met. Between FYs 2010 and 2013, Commission 

staff examined a total of 81% of the Commission’s 

jurisdictional natural gas companies (129 of 159) for 

feasibility of installing waste heat recovery systems. In 

FY 2013 specifically, Commission staff examined 31 

companies.

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

Year Target Result

FY 2010 Develop action plan

Target Met.In FY 2010, the Commission developed and 

finalized its RIDM Action Plan which outlines the work 

efforts required over the next four years to incorporate 

RIDM into its dam safety program.

FY 2011 Portfolio Risk Assessment of FERC dam inventory

Target Not Met. In FY 2011 the Commission did not 

complete the Portfolio Risk Assessment; however, the 

screening level portfolio risk assessment tool was 

finalized. 

FY 2012 Determine RIDM is consistent with regulatory process

Target Met. As a result of the Screening Level Portfolio 

Risk assessment of the Commission’s dams conducted in 

FY 2012, it was determined that RIDM could be 

incorporated into the Commission’s dam safety program. 

FY 2013 Finalize policy and technical guidelines

Target Met. Ten chapters finalizing the policy and 

technical guidelines on the use of Risk Informed Decision 

Making in the Commission’s Dam Safety Program have 

been completed.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

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By FY 2014, proposed Reliability Standards will be processed in a timely manner at least 80 percent of the time.

Year Target Result

FY 2010 75% Target Met.96% of filed reliability standards have orders 

issued within 18 months.

FY 2011 75% Target Met. 97% of proposed reliability standards have 

been processed with orders issued within 18 months.

FY 2012 75%

Target Met. 100% of filed reliability standards (including 

regional and CIP standards) have been processed with 

orders issued within 18 months.

FY 2013 80%

Target Met. 100% of filed reliability standards have 

orders issued within 18 months (includes regional and 

CIP standards).

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

violations by at least 10 percent.

Year Target Result

FY 2010 Establish tracking process

Target Met. The Commission developed in FY 2010 a 

database to track violations from Notices of Penalty filed 

by the ERO. As part of this process, the Commission 

determined the measurable parameters (e.g., what 

constitutes a repeat violation over a designated time 

period) to facilitate a determination as to the observed rate 

of repeat violations of the Reliability Standards.

FY 2011 Track violations per entity

Target Met. Through the tracking mechanism established 

in FY 2010, staff has been tracking violations per entity 

during FY 2011 to analyze the current rate of violations 

and establish a baseline rate. A report analyzing the 

collected data from Notices of Penalty filed by the ERO 

was completed by 8/31/11.

FY 2012 Track violations per entity

Target Met. The annual report analyzing FY 2011 data 

was completed on December 2, 2011 and an additional 

mid-year report was completed on July 30, 2012.

FY 2013 Identify number of repeat violations using NOPs Target Met. The Commission developed a report, 

tracking and analyzing repeat violations.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

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

renewable energy resources on the electric transmission grid will be finalized.

Year Target Result

FY 2010 Establish contacts and develop research, data collection 

and reporting processes

Target Met.In FY 2010, Commission staff established 

approximately 100 industry contacts across the nation and 

internationally. The Commission has led and participated 

in the efforts to conduct technical studies on Frequency 

Response, Electromagnetic Pulse and the potential impact 

of early Coal Plant retirements due to potential 

regulations. The research the Commission staff has done 

on complex and highly technical studies provide guidance 

and direction in establishing the parameters to protect and 

preserve reliability as industry integrates large amounts of 

renewable generation into the bulk power system. 

FY 2011

Track studies and identify or propose reliability 

parameters. Perform initial analysis to assess if they are 

feasible for the bulk power system

Target Met. Commission staff performed and completed 

analyses on the Frequency Response study including 

identifying reliability parameters. The report on 

Frequency Response was issued in January 2011. 

NERC's Reliability Metrics Work Group adopted 

Frequency Response as a reliability parameter to track on 

a trial basis.

FY 2012

Track studies and identify or propose reliability 

parameters. Perform expanded analysis to assess if they 

are feasible for the bulk power system

Target Met. Commission staff tracked three studies 

identifying several reliability parameters and performed 

two expanded analyses to assess their feasibility. 

Specifically, staff 1) performed detailed technical analysis 

related to the Arizona-Southern California outages 

showing system operating limits, interconnection 

reliability operating limits, voltage collapse and special 

protection scheme reliability parameters were not 

appropriately considered; 2) tracked and conducted an 

expanded detailed analysis of the EPA regulations on the 

Bulk Power System and participated in the Commissionled technical conference; and 3) analyzed documentation 

and conducted a technical workshop on voltage 

coordination on high voltage grids to assess the feasibility 

of adjusting voltage reliability parameters.

FY 2013 Present analysis to industry

Target Met. The Commission received and reviewed 

industry comments in response to the Commission-issued 

report on Frequency Response.
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

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Appendix A: Statutory Authority
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

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Provided below is a listing of federal statutes applicable to the Commission. Links to these statutes 

are available on the Commission’s website at www.ferc.gov under Legal Resources.

Electric, Hydropower, & General Statutes

Federal Power Act

Energy Policy Act of 2005

Energy Policy Act of 1992

Power Plant & Industrial Fuel Use Act

Department of Energy Organization Act

Electric Consumers Protection Act (ECPA)

Electronic Freedom of Information Act of 1996

Energy Independence and Security Act of 2007 (EISA)

Public Utility Holding Company Act of 2005 (PUHCA)

Public Utility Regulatory Policies Act of 1978 (PURPA)

Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)

Information Technology Management Reform Act of 1996 (ITMRA/Clinger-Cohen Act)

Natural Gas Statutes

Natural Gas Act

Natural Gas Policy Act of 1978

Alaska Natural Gas Pipeline Act of 2004

Alaska Natural Gas Transportation Act of 1976

Outer Continental Shelf Lands Act of 1978 (OCSLA)

Natural Gas Wellhead Decontrol Act of 1989 (NGWDA)

Oil Statutes

Interstate Commerce Act

Oil Pipeline Regulatory Reform

Environmental and Other Statutes

Clean Air Act

Clean Water Act

Rivers and Harbors Act 

Endangered Species Act

Wild and Scenic Rivers Act

Coastal Zone Management Act 

National Historic Preservation Act 

Fish and Wildlife Coordination Act

National Environmental Policy Act (NEPA)
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

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Appendix B: Acronym Listing
FY 2013 Performance & Accountability Report

Federal Energy Regulatory Commission

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Acronym Full Description

ADR Alternative Dispute Resolution

CAISO California Independent System Operator

CIP Critical Infrastructure Protection

DOE Department of Energy

DRS Dispute Resolution Service

ERO Electric Reliability Organization

EQR Electric Quarterly Report

FERC Federal Energy Regulatory Commission

FPA Federal Power Act

FPC Federal Power Commission

FTE Full Time Equivalent

FY Fiscal Year

ISO Independent System Operator

ISO-NE ISO New England

MISO Midcontinent Independent System Operator

MOU Memorandum of Understanding

LNG Liquefied Natural Gas

NEPA National Environmental Policy Act

NERC North American Electric Reliability Corporation

NOPR Notice of Proposed Rulemaking

NOI Notice of Inquiry

NYISO New York Independent System Operator

OMB Office of Management and Budget

PJM PJM Interconnection

RIDM Risk-informed Decision Making

RTO Regional Transmission Organization