Chairman Jon Wellinghoff 

FEDERAL ENERGY 

REGULATORY COMMISSION

PERFORMANCE & ACCOUNTABILITY REPORT

FISCAL YEAR 2011

FY 2011 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 5 

Business Plan 6 

Full Cost Recovery 6 

Program Performance Overview 7 

Financial Performance Overview 21 

Controls, Systems, and Legal Compliance 24 

Possible Future Effects of Existing Events and Conditions 26 

Limitations of the Financial Statements 26 

Improper Payments Information Act Reporting 26 

FINANCIAL SECTION 27 

Message from the Chief Financial Officer 28 

Independent Auditors’ Report 31 

Balance Sheets 34 

Statements of Net Cost 35 

Statements of Changes in Net Position 36 

Statements in Budgetary Resources 37 

Statements of Custodial Acitivty 39 

Notes to Financial Statements 40 

PERFORMANCE REPORT 54 

Introduction 55 

Historic Performance Data: 

Energy Infrastructure: FYs 2006 - 2009 56 

Competitive Markets: FYs 2006 - 2009 71 

Enforcement: FYs 2006 - 2009 81 

Supporting Initiatives: FYs 2006 – 2009 88 

Current Performance Data: 

Just and Reasonable Rates, Terms, and Conditions: FYs 2010 - 2011 100 

Infrastructure: FYs 2010 - 2011 105 

APPENDIX A: STATUTORY AUTHORITY 108 

APPENDIX B: ACRONYM LISTING 110 
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. 

Maintain the reliability of the electric transmission grid. 
This page intentionally left blank.
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 1

Management’s 

Discussion and Analysis 

(Unaudited) 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 2

INTRODUCTION 

In accordance with the guidelines set forth in 

the Office of Management and Budget 

(OMB) Circular No. A-136 and Section 230 

of Circular No. A-11, this report presents the 

Federal Energy Regulatory Commission’s 

(the Commission, FERC) fiscal years (FY) 

2011 and 2010 audited annual financial 

statements and program performance report. 

The financial section includes the 

Commission’s audited balance sheets, 

statements of net cost, changes in net 

position, budgetary resources, custodial 

activity, and notes to the financial 

statements. The performance report section 

includes performance measurement data for 

fiscal years 2006 through 2011. 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 2011. 

Approximately 1,467 full time equivalents 

(FTEs) carried out the Commission’s mission 

in FY 2011 using a budget of $298 million. 

ORGANIZATIONAL STRUCTURE 

The Federal Energy Regulatory Commission 

is an independent regulatory agency within 

the U.S. Department of Energy (DOE). The 

Commission’s statutory authority centers on 

major aspects of the Nation’s wholesale 

electric, natural gas, hydroelectric, and oil 

pipeline industries. 

The Commission was created through the 

Department of Energy Organization Act on 

October 1, 1977. At that time, the Federal 

Power Commission (FPC), the 

Commission’s predecessor that was 

established in 1920, was abolished and the 

Commission inherited most of the FPC’s 

regulatory mission. 

FERC is composed of up to five 

commissioners who are appointed by the 

President of the United States with the 

advice and consent of the Senate. 

Commissioners serve staggered five-year 

terms and have an equal vote on regulatory 

matters. To avoid any undue political 

influence or pressure, no more than three 

commissioners may belong to the same 

political party. One member of the 

Commission is designated by the President 

to serve as Chair and as FERC's 

administrative head. FERC’s decisions are 

not reviewed by the President or Congress, 

maintaining FERC's independence as a 

regulatory agency, and providing for fair and 

unbiased decisions. 

In addition to the Chairman and four 

Commissioners, FERC is organized into 

eleven separate functional offices; each 

responsible for carrying out specific portions 

of the Commission’s responsibilities. The 

offices work in close coordination to 

effectively carry out the Commission’s 

statutory authority. 

An organizational chart, including a brief 

description of each office, is included below. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 3

Office of Administrative Law Judges 

(OALJ) 

Resolves contested cases as directed by the 

Commission either through impartial hearing 

and decision or through negotiated settlement, 

ensuring that the rights of all parties are 

preserved. 

Office of Administrative Litigation (OAL) 

Litigates or otherwise resolves cases set for 

hearing. Represents the public interest and 

seeks to litigate or settle cases in an equitable 

manner while ensuring the outcomes are 

consistent with Commission policy. The 

Dispute Resolution Service (DRS) is located 

within OAL and provides neutral, third-party 

assistance using alternative dispute resolution 

(ADR) methods to parties in regulatory and 

environmental conflict; trains staff and energy 

stakeholders in collaborative problem-solving 

tools to develop and ensure a reliable 

infrastructure. 

Office of Electric Reliability (OER) 

Oversees the development and review of 

mandatory reliability and security standards; 

ensures compliance with the approved 

mandatory standards by the users, owners, 

and operators of the bulk power system. 

Office of Energy Market Regulation (OEMR) 

Deals with matters involving markets, tariffs 

and rates relating to electric, natural gas, and 

oil pipeline facilities and services. 

Office of Energy Policy and Innovation 

(OEPI) 

Issues, coordinates, and develops proposed 

policy reforms to address emerging issues 

affecting wholesale and interstate energy 

markets, including such areas as climate 

change, the integration of renewable 

resources, and the deployment of demand 

response. 

Office of Energy Projects (OEP) 

Fosters economic and environmental benefits 

for the Nation through the approval and 

oversight of hydroelectric, natural gas, 

(including pipelines, storage, and liquefied 

natural gas (LNG) facilities), and electric 

transmission projects that are in the public 

interest. 

Office of Enforcement (OE) 

Protects customers through understanding 

markets and their regulation, timely identifying 

and remedying market problems, assuring 

compliance with rules and regulations, and 

detecting violations and crafting appropriate 

remedies, including civil penalties. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 4

Office of External Affairs (OEA) 

Responsible for all external communications 

with the public and media for the Commission. 

Office of the Executive Director (OED) 

Provides administrative support services to the 

Commission including human resources, 

procurement, information technology, 

organizational management, financial, and 

logistic functions. 

Office of the General Counsel (OGC) 

Provides legal services to the Commission. 

Represents the Commission before the courts 

and Congress and is responsible for the legal 

aspects of the Commission’s activities. 

Office of the Secretary (OSEC) 

Serves as the official focal point through which 

all filings are made for proceedings before the 

Commission.

STRATEGIC PLAN OVERVIEW 

The United States has the world’s most 

durable market economy, every sector of 

which depends vitally on energy. The 

Commission has an important role in the 

development of a reliable energy 

infrastructure and in the protection of 

wholesale customers from unjust and 

unreasonable rates and undue discrimination 

and preference. The Commission draws its 

authority from various statutes and laws, 

which are listed in Appendix A. 

On September 30, 2009, the Commission 

submitted to Congress its updated Strategic 

Plan which will serve as a guide through 

fiscal year 2014. 

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: 

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, 

authorizing LNG facilities, and, in certain 

circumstances, permitting electric 

transmission lines. The Commission relies 

primarily on physical inspections of facilities 

to ensure the safety of LNG and non-federal 

hydropower facilities throughout the entire 

life cycle of a project: design review, 

construction and operation. Further, the 

Commission promotes efficient operation of 

energy infrastructure by encouraging, for 

example, the use of new technologies, and 

other procedures that may enhance 

economic efficiency. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 5   

Lastly, the Commission has an important 

role in maintaining the reliability of the 

electric transmission grid. The Commission 

established, and now oversees, the Electric 

Reliability Organization (ERO). The ERO 

develops and enforces mandatory reliability 

and cyber security standards, subject to the 

review and approval by the Commission. 

The Commission also monitors system 

disturbances to identify near- and long-term 

issues affecting generation and 

transmission. 

As the Commission works to achieve its 

mission, its focus remains on five guiding 

principles: organizational excellence, due 

process and transparency, regulatory 

certainty, stakeholder involvement, and 

timeliness. Whether the Commission is 

adjudicating a rate filing, ruling on a permit 

application, or developing a new policy, it 

strives to meet these criteria as a means of 

ensuring that each of its actions is consistent 

with the public interest. 

STRATEGIES FOR CARRYING OUT THE COMMISSION’S RESPONSIBILITIES

The Commission’s two core functions are to 

ensure that wholesale electric and natural 

gas rates are just and reasonable and not 

unduly discriminatory or preferential and that 

energy infrastructure is developed in the 

public interest. To achieve these goals, the 

Commission will employ several strategies 

which are summarized below. 

The organized wholesale electric markets 

represent one area in which the Commission 

relies on regulatory and market means to 

ensure that rates are just and reasonable 

and not unduly discriminatory or preferential. 

The Commission will establish rules that 

enhance competition by allowing 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, authorizing LNG facilities, and, in 

certain circumstances, permitting electric 

transmission lines. Throughout all of these 

processes, the Commission’s goal is to 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 6   

expedite application processing without 

compromising environmental responsibilities 

or public participation. Reconciling these 

interests, however, remains a significant 

challenge. The Commission believes that 

issues are best addressed openly and early 

in the application process. The Commission 

encourages, and sometimes requires, 

project proponents to engage in early 

involvement of state and federal agencies, 

Indian tribes, affected landowners and the 

public. 

To ensure that jurisdictional infrastructure 

projects are safe, the Commission performs 

a detailed safety analysis during its 

comprehensive review of a proposal for a 

new LNG or hydropower facility. The 

Commission also monitors and inspects 

these projects throughout the life cycle to 

ensure safety and security compliance. 

During construction, Commission staff 

engineers frequently inspect a project and 

once construction is complete, the 

Commission follows inspection schedules 

depending on the type of facility. In addition, 

all LNG and hydropower facilities are 

required to coordinate with federal, state and 

local agencies and develop emergency 

response plans. The Commission is working 

to develop and incorporate risk-informed 

decision making into the dam safety 

program. 

This transition could have several positive 

impacts on the Commission’s dam safety 

program including, among others, a better 

understanding of potential failure modes, a 

better understanding of the consequences of 

potential failure modes on life, health and 

property, and an improved ability to evaluate 

risk reduction alternatives. 

To protect and improve the reliability and 

security of the Nation’s bulk power system, 

the Commission will oversee the 

development and review of mandatory 

reliability and security standards. The 

Commission will achieve this through active 

involvement in the standards development 

process of the ERO and review of all 

reliability standards filed by the ERO. The 

Commission will provide extensive oversight 

of the ERO processes and compliance 

efforts to ensure firm, fair, and consistent 

implementation of, and compliance with, the 

approved mandatory reliability standards, 

including cyber and physical security. The 

Commission will also join or lead incident 

and alleged violation analyses and/or 

investigations following bulk-power system 

incidents or complaints. The Commission 

will also track and review all alleged 

violations, mitigation plans, and proposed 

penalties and conduct ERO and regional 

entity performance reviews and audits. 

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 2011, the 

Commission reported actual FTE usage at a 

detailed activity level in its Business Plan, 

which improved offices’ ability to organize 

and allocate resources effectively. 

FULL COST RECOVERY 

The Commission recovers the full cost of its 

operations through annual charges and filing 

fees assessed on the industries it regulates 

as authorized by the Federal Power Act 

(FPA) and the Omnibus Budget 

Reconciliation Act of 1986. The Commission 

deposits this revenue into the Treasury as a 

direct offset to its appropriation, resulting in 

no net appropriations. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 7   

PROGRAM PERFORMANCE OVERVIEW 

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

the Commission’s key achievements during FY 2011. 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 2006 through 2011 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 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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 8   

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 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 regional transmission 

organizations (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. 

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 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 independent system operators (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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 9   

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 2011 

Issue a notice of inquiry/notice of 

proposed rulemaking 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. 

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 2011 

Pursue voluntary adoption of best 

practices by RTOs/ISOs; if appropriate, 

issue Policy Statement and/or a notice of 

inquiry/notice of proposed rulemaking 

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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 10   

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 2011 

Explore and develop appropriate 

operational and financial metrics for nonISO/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. 

In October 2010 Commission staff issued a report on the final metrics for RTOs and ISOs which 

satisfied the FY 2010 performance target. In December 2010, each of the RTOs and ISOs submitted 

a report with data for each of these metrics covering the period 2005-2009. Based on staff's analysis 

of this data, the Chairman issued a report to Congress in April 2011 to communicate the benefits of 

RTOs and ISOs and, where appropriate, identify possible changes to address any performance 

concerns. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 11   

STRATEGY 4 

Promote broad participation, including the use of alternative dispute resolution services, in the 

Commission’s processes and procedures 

Performance Measure 7 

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

collaborative processes first. 

Year Target Result 

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. 

OTHER NOTEWORTHY ACCOMPLISHMENTS IN OBJECTIVE 1.1: 

REGULATORY AND MARKET MEANS 

 In FY 2011, the Commission completed 

the implementation of Order No. 714, 

which requires all public utilities, natural 

gas pipelines, oil pipelines and power 

administrations to file their tariffs, tariff 

revisions and rate change applications 

electronically. Further, the Commission 

staff completed scanning and archiving the 

paper tariffs filed prior to the 

implementation of Order No. 714. The 

adoption of an electronic tariff system 

provides for a more efficient document 

processing system as well as providing a 

user-friendly interface from which the 

Commission, its staff, and the public may 

retrieve and review tariffs. The 

Commission received over 700 electronic 

baseline tariff filings during FY 2011. 

 In December 2010, the Commission 

completed its third five-year review of the 

oil pricing index established in Order No. 

561 and set a new price index to calculate 

annual changes to ceiling levels for oil 

pipeline rates for the five-year period 

beginning July 1, 2011. 

 In October 2010, the Commission issued 

Order No. 741, which required that the 

RTOs and ISOs reform their credit policies 

or demonstrate that their existing tariff 

satisfies the new regulations. This final 

rule balances the need for market liquidity 

with appropriate risk management, 

ensuring the safety of transactions within 

RTO and ISO organized markets. All 

RTOs and ISOs submitted compliance 

filings in June 2011, and the Commission 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 12   

issued orders conditionally accepting these 

filings in September 2011. 

 In FY 2011, Commission staff drafted 

several rulemakings to increase 

transparency in electric markets. In one 

notice of proposed rulemaking, the 

Commission is seeking to require quarterly 

reporting by large entities not subject to 

Section 205 of the Federal Power Act. In 

another notice of proposed rulemaking, the 

Commission is seeking to improve the 

monitoring of interchange transactions by 

providing the Commission access to eTags which are used to schedule 

transactions in organized markets. 

 The Energy Policy Act of 2005 (EPAct 

2005) section 1252(e)(3) requires the 

Commission to prepare and publish an 

annual report, by appropriate region, that 

assesses electric demand-response 

resources, including those available from 

all consumer classes. In February 2011, 

the Commission published the fifth annual 

report. Consistent with the Commission’s 

past practice, the report is based on a 

survey sent to more than 3,400 companies 

in the United States. More than 1,750 

companies that serve 78 percent of the 

retail customers responded to the survey. 

 In FY 2011, Commission staff achieved 

settlements which resulted in $200 million 

in annual savings and in addition, achieved 

a one-time savings of $535 million for 

American energy consumers. 

 Commission staff negotiated a settlement 

which facilitated a utility’s seamless 

transfer of membership from one RTO into 

another. 

 47% of calls to the Dispute Resolution 

Services Hotline were resolved through 

alternative dispute resolution processes. 

 Commission staff provided training to 

land agents in a large natural gas 

pipeline company on negotiating 

effectively with landowners in difficult 

situations regarding pipeline siting and 

restoration. 

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 2011 25% 

Target met. The Commission found that 63% 

(5/8) of compliance programs were adequate 

to demonstrate a culture of compliance. 

In FY 2011, the Commission completed the review of 8 jurisdictional companies’ (companies) 

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

programs, the Commission found that 63 percent were found to be adequate to demonstrate a culture 

of compliance. The Commission is encouraged that jurisdictional companies have taken numerous 

steps on their own initiative to enhance their existing compliance programs based on the 

Commission’s publicly issued audit reports. Further, the companies often update their compliance 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 13   

programs as they undertake corrective actions based on the results of the Commission’s audit 

engagement. 

Performance Measure 9 

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 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. 

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 2011 60% 

Target met. 85% (57/67) of the audits were 

planned by the Commission staff using a riskbased approach. 

During FY 2011, the Commission’s annual audit plan included 67 audits of public utilities and natural 

gas pipeline companies. Of the 67 planned audits, the Commission used a risk-based methodology to 

plan 85 percent of the audits. 

In FY 2011, the Commission completed 55 audits which resulted in the issuance of 294 

recommendations for corrective actions to public utilities and natural gas pipeline companies. 

Specifically, these audits resulted in $96 million in refunds and savings to utility ratepayers. The use 

of the risk-based audit approach was key to maximizing efficiency. 

OTHER NOTEWORTHY ACCOMPLISHMENTS IN OBJECTIVE 1.2: 

OVERSIGHT AND ENFORCEMENT 

 In FY 2011, the Commission upheld the 

litigated victories in two major manipulation 

cases. In April 2011, the Commission 

affirmed the initial decision of the 

administrative law judge (ALJ) and 

imposed a $30 million penalty against Mr. 

Brian Hunter. In May 2011, the 

Commission also affirmed the initial 

decision of the ALJ in the ISO 

NE/Blumenthal matter, consistent with 

staff’s litigated position. Rehearings are 

pending before the Commission on both of 

these matters. 

 The Commission opened nine new 

investigations and continues to investigate 

open cases involving possible market 

manipulation or tariff violations. In 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 14   

addition, the Commission launched two 

investigations into the rates charged by 

two interstate natural gas companies to 

determine whether unjust and 

unreasonable rates were charged to 

customers. The Commission's 

investigations stem from reviews of Annual 

Form 2 cost of service and revenue 

information submitted by interstate natural 

gas pipeline companies for 2008 and 

2009. Both investigations resulted in 

uncontested settlements resolving all 

issues and providing benefits to the 

customers such as reduced fuel 

reimbursement percentages or revenue 

sharing arrangements with pipeline 

customers. 

 In January 2011, the Commission issued 

an order that increases transparency in 

investigations by authorizing the Director 

of the Office of Enforcement to issue a 

public notice of alleged violation after staff 

preliminarily determines that a violation 

has occurred. Several such notices have 

been issued. 

 In FY 2011, the Commission received 106 

self-reports of violations. This level of selfreports illustrates the continued level of 

compliance by the industry. 

 In FY 2011, the Commission’s 

Enforcement Hotline received 122 calls, 

most of which resulted in informal 

resolution. Two hotline calls resulted in 

the Commission opening investigations. 

 In FY 2011, Commission staff 

implemented a policy to reduce the burden 

on entities filing the Electric Quarterly 

Report (EQR) by limiting the requirement 

which will improve the accuracy of future 

EQR filings. 

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 2011 10% 

Target met. Of the projects that met the 

criteria, 67% (10/15) incorporated advanced 

technologies. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 15   

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 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 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. 

In September 2011, Commission staff held three informational conferences to discuss the 

requirements of Order No. 1000 for transmission planning, nonincumbent developers, interregional 

coordination, and cost allocation. The first conference focused on compliance issues related to RTOs 

and ISOs. The second and third conferences focused on compliance issues related to non-RTO/ISO 

regions in the Eastern Interconnection and in the Western Interconnection. 

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 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. 

In FY 2011, Commission staff met its target by examining 32 companies in FY 2011, for a total of 65 

companies, or 40 percent, of the Commission’s jurisdictional natural gas companies for feasibility of 

installing waste heat recovery systems. Staff considered any pipeline company that has a tariff on file 

with the Commission to be jurisdictional, resulting in 159 companies by the end of FY 2011. It is 

important to note that every year the number of jurisdictional pipelines change. This is due to new 

companies being created, existing companies merging, or the Commission finding a company, upon 

request, to be non-jurisdictional caused by changing circumstances. 

Staff identified the pipeline companies, reviewed existing Electronic Bulletin Boards (EBBs) and 

FERC Form 567s, for information regarding feasibility of waste heat recovery projects, and entered the 

data into its database. Pipeline companies are not currently required to post information regarding 

waste heat feasibility on their EBBs, however, many of the companies do. Additionally, just as the 

total number of jurisdictional pipeline companies changes, the information on EBBs changes. These 

changes can be attributed to expansions on a system, abandoned facilities, as well as the operational 

history for a given pipeline. Staff is aware of these issues and made adjustments where necessary. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 16   

OTHER NOTEWORTHY ACCOMPLISHMENTS IN OBJECTIVE 2.1: 

INFRASTRUCTURE DEVELOPMENT AND SITING 

 During FY 2011, the Commission 

completed environmental reviews of 357 

natural gas pipeline projects, a 4 percent 

increase over FY 2010, resulting in the 

authorization of nearly 3.2 billion cubic feet 

(Bcf) of pipeline capacity and 165 Bcf of 

storage capacity. Because the 

environmental review process for these 

projects is often complex and lengthy, 

timely completion of National 

Environmental Policy Act (NEPA) 

documents and compliance programs are 

critical to the Commission’s objective of 

increasing efficient infrastructure. On 

average, the Commission completed the 

NEPA documents on major projects 5.9 

months after the filing of an application. 

 The Commission conducted 540 

inspections during construction of pipeline 

and LNG facilities. Through a variety of 

compliance programs, the Commission 

ensured that project sponsors maintained 

robust environmental compliance 

programs, independently monitored 

construction activities to protect the 

environment, identified corrective actions 

needed, and responded to stakeholder 

concerns. 

 The Commission also established new 

procedures for Native American 

consultation and established projectspecific contacts with 371 Native American 

tribes. In the advancement of the Alaskan 

Natural Gas Pipeline Act project, the 

Commission completed several key 

activities including attending the project 

sponsor’s required open houses, meeting 

with agency and Native Alaskan tribal 

groups and issuing the Notice of Intent to 

begin the environmental scoping process. 

 The Commission implemented the Small 

Hydropower Action Plan and successful 

FERC/Colorado Memorandum of 

Understanding (MOU) on small 

hydropower in FY 2011. Specifically, the 

Commission staff: 1) added information to 

the small hydro website to address 

stakeholder needs; 2) held webinars and 

outreach sessions to explain contents of 

the website, clarify qualifications for 

conduit or 5 megawatt exemptions, and 

dispel the myth that licensing takes too 

long; and 3) increased outreach with other 

states, such as Rhode Island, that have an 

interest in an MOU similar to Colorado’s. 

As a result of this effort, Commission staff 

issued licenses and exemptions 

expeditiously, such as the Humphreys 

Project, which was issued in just over two 

months from application filing. 

 The Commission continued to foster the 

orderly and environmentally sound 

development of hydrokinetic technologies. 

Specific activities included: 1) issued 

NEPA documents on the first wave project 

(Reedsport) and the first tidal project 

(Roosevelt Island); 2) worked with 

stakeholders to determine information 

needs for the first pilot projects (Admiralty 

Inlet and Cobscook Bay); 3) updated the 

FERC/Bureau of Ocean Energy 

Management, Regulation and Enforcement 

guidance to coordinate scoping and NEPA 

for proposed projects on the outer 

continental shelf; and 4) processed 

competitive preliminary permit applications 

for 105 sites spanning 850 miles of the 

Mississippi River. These activities 

promote the potential of this new industry 

by reducing barriers to its development in 

coordination with key stakeholders. 

 The Commission also completed an MOU 

with the U.S. Army Corps of Engineers to 

coordinate evaluation of an unprecedented 

number of proposals to add non-federal 

hydropower at Corps dams. Early 

participation of Corps, as agreed to in 

MOU, should ensure issues and 

information needs are identified early and 

projects are processed expeditiously. 

 In December 2010, the Commission 

approved two orders to further its efforts to 

get needed transmission built. The first 

order accepted the California Independent 

System Operator Corporation’s revised 

transmission planning process designed to 

support development of new transmission 

facilities to meet state renewable portfolio 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 17   

standards and state and federal public 

policy goals. The second order accepted 

the Midwest Independent Transmission 

System Operator Inc.’s revised regional 

cost allocation methodology. 

 The lack of adequate transmission facilities 

creates a significant barrier to trade 

between markets and among regions. To 

encourage greater investment in the 

Nation’s transmission infrastructure, 

Congress directed the Commission in the 

Energy Policy Act of 2005 to adopt rules 

making incentive rate treatments available 

for electric transmission infrastructure 

investments that meet certain criteria, for 

example, if a proposed transmission 

project alleviates congestion. Incentive 

rate treatments granted pursuant to those 

rules include, for example, recovery of 

increased return on equity, recovery of 100 

percent of construction work in progress, 

and recovery of prudently incurred costs 

for projects that are abandoned for 

reasons beyond the utility’s control. In FY 

2011, the Commission approved rate 

incentives for 15 projects, totaling 2,637 

miles of new transmission and a $12.7 

billion investment in infrastructure. 

 On May 19, 2011, a Notice of Inquiry was 

issued on Promoting Transmission 

Investment through Pricing Reform, 

focusing on certain aspects of the 

Commission’s transmission incentive 

regulations and policies, such as the 

factors the Commission should consider in 

evaluating an application for incentives, 

the obstacles faced by transmission 

developers, which incentives are best 

suited to addressing those obstacles, how 

the Commission should consider changes 

in cost estimates, and what other factors 

should the Commission consider in 

implementing the law. 

 A technical conference was held March 15, 

2011 to obtain further information to aid 

the Commission in considering issues 

related to the ownership of and priority 

access rights to new participant-funded 

transmission projects. In particular, staff 

explored with interested parties issues 

related to priority rights to use transmission 

infrastructure developed under various 

new business models in two specific 

contexts: independent and/or merchant 

transmission and generator lead lines were 

discussed. In both contexts, participants 

were encouraged to identify and discuss 

the appropriate balance between the 

Commission's requirements for open 

access and the needs of project 

developers. Participants were also 

encouraged to propose and discuss 

specific regulatory alternatives that are 

consistent with the Commission’s open 

access policies and its statutory 

responsibility to ensure that rates, terms, 

and conditions of service are just and 

reasonable and not unduly discriminatory 

or preferential. 

 On July 19, 2011, the Commission issued 

an order on the smart grid standards 

posted by the National Institute of 

Standards and Technology (NIST) as 

ready for consideration by the 

Commission. The July 19 order followed a 

technical conference convened by the 

Commission on January 31, 2011. The 

purpose of that conference was to obtain 

information to aid the Commission’s 

determination of whether there is 

“sufficient consensus” that the standards 

posted by NIST are ready for Commission 

consideration in a rulemaking proceeding, 

as directed by section 1305(d) of the 

Energy Independence and Security Act of 

2007. In the July 19 Order the 

Commission found that there is insufficient 

consensus to institute a rulemaking 

proceeding to adopt the posted standards 

and encouraged utilities, smart grid 

product manufacturers, regulators and 

others to actively participate in the NIST 

interoperability framework process. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 18   

OBJECTIVE 2.2: SAFETY 

Minimize risk to the public. 

STRATEGY 1 

Incorporate risk-informed decision making (RIDM) 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 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. 

The delay resulted from the separation of a key staff person who was integral to the risk-informed 

decision making program. This delay was resolved in June 2011; three full-time employees are now 

dedicated to this program and the effort is moving forward once again. Training is expected to occur 

in early FY 2012 and the assessment of FERC’s inventory of dams will be completed during FY 2012. 

The Commission does not believe that the FY 2011 delays will negatively impact progress on the FY 

2012 goal to determine if RIDM is consistent with FERC’s regulatory process. 

OBJECTIVE 2.3: RELIABILITY 

Maintain the reliability of the electric transmission grid. 

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 2011 75% 

Target met. 97% of proposed reliability 

standards have been processed with orders 

issued within 18 months. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 19   

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 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. 

STRATEGY 3 

Identify reliability parameters that affect national 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 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 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 internal report on Frequency 

Response was issued in January 2011. The 

North American Electric Reliability 

Corporation’s (NERC) Reliability Metrics Work 

Group adopted Frequency Response as a 

reliability parameter to track on a trial basis. 

OTHER NOTEWORTHY ACCOMPLISHMENTS IN OBJECTIVE 2.3: 

RELIABILITY 

In FY 2011, the Commission participated, or is 

currently participating in, the development and 

interpretation of Reliability and Critical 

Infrastructure Protection (CIP) Standards. In 

FY 2011, the Commission issued the following: 

 The Commission directed changes to the 

definition of the term “Bulk Electric 

System” to help ensure consistency in 

identifying and registering components of 

the bulk electric system that are subject to 

the approved Reliability Standards across 

the country. 

 The Commission approved four 

interpretations of the CIP standards and 

approved the Violation Risk Factors and 

Violation Severity Levels for current CIP 

standards. 

 The Commission developed an order 

approving revisions to NERC’s Rules of 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 20   

Procedure to allow it to approve/rewrite 

standards to comply with FERC directives 

when ballots fail. 

 The Commission and the North American 

Electric Reliability Corporation (NERC) 

issued a joint staff report making 

recommendations to help prevent a 

recurrence of rolling blackouts and natural 

gas curtailments experienced by 

customers in the Southwest during 

extreme cold weather in February 2011 

(AD11-9-000). The task force found a 

majority of the electric outages and gas 

shortages were due to weather-related 

causes and inadequate winterization 

procedures, practices, and preparedness 

by both generators and gas producers. 

 Following a November 2010 reliability 

compliance technical conference, the 

Commission initiated extensive pre-filing 

work with NERC to reduce its violation 

backlog through an “Administrative 

Citation” Notice of Penalty process. The 

streamlined format allows violations that 

had a minimal impact on the reliability of 

the Bulk-Power System to be filed as a 

single line on a spreadsheet, avoiding the 

preparation of as much as 50 pages of 

documentation for each Notice of Penalty. 

 Commission staff concluded technical 

analyses on two Part 1b investigations: 1) 

Grand River Dam Authority (GRDA), 

(IN11-7-000), the result of which was a 

settlement with GRDA including a 

$350,000 penalty plus mitigation measures 

and compliance improvements; and 2) 

Western Electricity Coordinating Council 

(WECC), (IN11-1-000), which resulted in a 

settlement with WECC including a 

$350,000 penalty plus mitigation and 

reliability enhancement measures. 

 In January 2011, the Commission’s Office 

of Electric Reliability issued a study 

entitled “Use of Frequency Response 

Metrics to Assess the Planning and 

Operating Requirements for Reliable 

Integration of Variable Renewable 

Generation.” The study developed and 

tested metrics to model the reliability 

effects on the nation’s bulk electric system 

stemming from changes to the electric 

generation mix, including the integration of 

substantial amounts of renewable 

generation, and demand response. After 

the study was issued, Commission staff 

conducted considerable outreach with the 

electric industry on the value of this new 

tool in planning the future design of the 

grid. 

 In FY 2011, the ERO filed 453 notices of 

penalty addressing 2,112 violations of 

Reliability Standards. The notices of 

penalty include 49 filings identifying 197 

violations of Reliability Standards Critical 

Infrastructure Protection and cyber security 

for the bulk power grid. Each of the 

notices of penalty was reviewed and 

analyzed by Commission staff as required 

by law. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 21   

FINANCIAL PERFORMANCE OVERVIEW 

As of September 30, 2011, 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. 

The Commission’s FY 2011 new budget 

authority was $298 million. There was no 

change in budget authority over FY 2010. 

Additional funds available to obligate in FY 

2011 were $11.8 million from prior-year 

unobligated appropriations and $2.5 million of 

prior-year obligations that were subsequently 

de-obligated in the current year. The sum of 

all operating funds available to obligate in FY 

2011 was $312.3 million. Separately, the 

Commission receives an appropriation from 

Congress to pay states the fees it collected for 

the occupancy and use of public lands. In FY 

2010, a number of licensees raised issues 

regarding the fee basis of the FY 2010 

assessment that resulted in significant 

increases to their respective charges. As a 

result, the Commission did not assess fees in 

FY 2010. However in FY 2011, the 

Commission decided to assess fees utilizing 

the FY 2008 fee basis until it makes a final 

determination on any new fee basis. 

Therefore, in FY 2011, the Commission 

assessed fees for both FYs 2010 and 2011, 

and the Commission requested a payment to 

the states appropriation from Congress for FY 

2011 of $5.8 million covering both FYs 2010 

and 2011. 

Consistent with the requirements of the 

Omnibus Budget Reconciliation Act of 1986, 

as amended, the Commission collected fees to 

offset 100% of its budget authority in FY 2011. 

Costs by Function. The Commission 

incurred costs of $315.9 million in FY 2011, 

which was an increase of $13.3 million over FY 

2010. Approximately 72 percent of costs were 

used for salaries and benefits. The remaining 

28 percent was used to obtain technical 

assistance for the Commission's principal 

regulatory programs, to cover operating 

expenses, staff travel, and reimbursable work. 

Salaries and benefits increased by $5.9 million 

since 2010 while the net effect on the other 

cost categories was an increase of $7.4 

million. 

Costs by Function (millions)

Costs FY 2011 FY 2010

Salaries and Benefits $229.1 $223.2

Travel/Transportation 3.8 3.6

Rent/Comm/Utilities 22.7 23.1

Contract Support 45.7 47.2

Printing/Supplies/Other 14.6 5.5

Total Costs $315.9 $302.6

Audit Results. The Commission received an 

unqualified audit opinion on its FY 2011 

financial statements. This was the eighteenth 

consecutive year the Commission has 

received an unqualified opinion. For FY 2011, 

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 

$70.9 million as of September 30, 2011. This is 

a decrease of $41 million from September 30, 

2010. The assets reported in the 

Commission's Balance Sheet are summarized 

in the Asset Summary table. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 22   

Assets Summary (millions)

Assets FY 2011 FY 2010

Fund Balance with 

Treasury $54.6 $64.7

Accounts Receivable, 

net 9.0 39.4

Property and 

Equipment, net 7.3 7.8

Total Assets $70.9 $111.9

The Fund Balance with Treasury represents 

the Commission's largest asset of $54.6 million 

as of September 30, 2011, a decrease of 

$10.1 million from the FY 2010 balance. The 

decrease is primarily from payments made 

from our disgorged profits and payment under 

protest funds in FY 2011. 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 $9.0 million as of September 30, 2011. This 

balance represents the outstanding amounts 

due from either annual charges, civil penalties 

or other penalties issued by the Commission to 

entities under its regulation. The $30.4 million 

net decrease is primarily due to the accrual of 

unbilled land fees in the PY which were 

assessed and collected in the current year and 

the collection of outstanding PY disgorged 

profits receivables in the FY 2011. 

The Property and Equipment, net was $7.3 

million as of September 30, 2011, a decrease 

of $0.5 million from FY 2010. The balance is 

comprised of the net value of the 

Commission’s equipment, furniture, leasehold 

improvements, and computer hardware and 

software. The $0.5 million net decrease is 

primarily due to the depreciation of assets 

throughout the year. 

The Commission's liabilities were $50.5 million 

as of September 30, 2011. The Liabilities 

Summary table shows a decrease in total 

liabilities of $38.6 million from FY 2010. The 

decrease is primarily the result of the accrual 

of unbilled land fees in FY 2010 that were not 

assessed during the FY, for which the 

collections are due to other entities and a 

higher payroll accrual in FY 2010. 

The $50.5 million balance consists primarily of 

accrued expenditures for payroll, benefits and 

operating expenses. 

Liabilities Summary (millions) 

Liabilities FY 2011 FY 2010

Accounts Payable $18.7 $14.6

Federal Employee 

Benefits 3.8 10.7

Other Liabilities 28.0 63.8

Total Liabilities $50.5 $89.1

The difference between total assets and total 

liabilities is net position. The Commission’s 

net position was approximately $20.4 million 

as of September 30, 2011. The decrease in 

net position in FY 2011 compared to FY 2010 

is the result of the amount of adjusted annual 

charges assessed by the Commission which 

impacted the cumulative results of operations 

and lower unexpended appropriations due to 

reduced capital purchases compared to FY 

2010. 

Net Position Summary (millions)

Position FY 2011 FY 2010

Unexpended 

Appropriations $30.1 $31.9

Cumulative Results of 

Operations (9.7) (9.1)

Total Net Position $20.4 $22.8

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. Net costs by strategic goal are shown in 

the Net Cost of Operations table. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 23   

Net Cost of Operations

Operation FY 2011 FY 2010

Just and Reasonable 

Rates, Terms, and 

Conditions 

$0 $0

Infrastructure 0 12,573

Net Cost of Operations $0 $12,573

The Commission's net cost of operations for 

FYs 2011 and 2010 were $0 and $12,573, 

respectively. The Commission is a full cost 

recovery agency and recovers all of its cost 

through the allocated annual charges to the 

entities that it regulates. In FY 2010, the 

Commission adjusted the impact of a prioryear revenue accrual, which resulted in costs 

being higher than revenue. 

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 decrease in net position 

in FY 2011 compared to FY 2010 is the result 

of the amount of adjusted annual charges 

assessed by the Commission which impacted 

the cumulative results of operations and lower 

unexpended appropriations due to reduced 

capital purchases compared to FY 2010. 

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 2011, the 

Commission had budgetary resources 

available of $318.1 million, the majority of 

which was derived from new spending 

authority. This represents an increase of $10 

million over FY 2010 budgetary resources 

available of $308.1 million. The unobligated 

budget authority available at September 30, 

2011 was $20 million, which is an increase of 

$8.4 million from the FY 2010 amount of $11.6 

million. 

The status of budgetary resources includes 

obligations incurred of $298.2 million, or 93.7% 

percent of funds available. Similarly, FY 2010 

obligations incurred were $296.3 million or 

96.1% percent of funds available. Total net 

outlays for FY 2011 were $(31.5) million, which 

represents an $11.2 million decrease from FY 

2010 net outlays of $(42.7) million. The 

decrease from last year is a result of 

approximately $18 million in higher gross 

outlays due to increased budgetary resources 

and a $6.7 million increase in distributed 

offsetting receipts in FY 2011 compared to FY 

2010 due to an increase in costs and the 

collections of those assessed cost. 

 

Analysis of the Statement of Custodial 

Activity 

The Statement of Custodial Activity displays 

the total Custodial Revenue and the 

Disposition of Collections related to that 

revenue activity. This statement ensures that 

revenue billed and collected by the 

Commission on behalf of other federal 

agencies will not be reported twice as revenue 

on the consolidated government’s Statement 

of Net Cost. In FY 2011, the Commission 

reported $27.9 million in custodial revenue as 

of September 30, 2011 compared to $54.5 

million in FY 2010. The majority of the 

decrease over FY 2010 is due to fewer civil 

penalties billed in FY 2011 to entities under the 

Commission’s regulation and higher accrual 

assessment of federal land fees reported in FY 

2010.
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 24   

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; and 

 Debt Collection Improvement Act of 1996. 

Integrity Act Statement 

During Fiscal Year 2011, the Commission focused its efforts on assisting consumers in 

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

regulatory and market means. In fulfilling this mission, the commission has pursued 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 auditors' FY 2011 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, 

2011. 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, 2011, are operating effectively.

 

Jon Wellinghoff 

Chairman 

Federal Energy Regulatory Commission 

September 2011 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 25   

Federal Managers Financial Integrity Act 

The Federal Managers' Financial Integrity Act 

of 1982 (Integrity Act) mandates that agencies 

establish controls that reasonably ensure that: 

(i) obligations and costs comply with applicable 

law; (ii) assets are safeguarded against waste, 

loss, unauthorized use, or misappropriation; 

and (iii) revenues and expenditures are 

properly recorded and accounted for. This act 

encompasses program, operational, and 

administrative areas as well as accounting and 

financial management. The Integrity Act 

requires the Chairman to provide an assurance 

statement on the adequacy of management 

controls and conformance of financial systems 

with Government wide standards. 

Management Control Review Program 

Managers throughout the Commission are 

responsible for ensuring that effective controls 

are implemented in their areas of 

responsibilities. Each office director and 

regional administrator prepared an annual 

assurance statement that identified any control 

weaknesses that required the attention of the 

Chairman. These statements were based on 

various sources and included: 

 Management knowledge gained from the 

daily operation of agency programs and 

reviews; 

 Management reviews; 

 Annual performance plans; and, 

 Inspector General and Government 

Accountability Office reports. 

The Commission's ongoing management 

control program requires, among other things, 

that management control deficiencies be 

integrated into office action plans. The action 

plan process has provisions for periodic 

updates and attention from senior managers. 

The management control information in these 

plans, combined with the individual assurance 

statements discussed previously, provides the 

framework for monitoring and improving the 

agency's management controls on an ongoing 

basis. 

FY 2011 Integrity Act Results 

The Commission evaluated its management 

control systems for the fiscal year ending 

September 30, 2011. 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 2011 OMB Circular No. A-123 Results 

The Commission evaluated its internal controls 

over financial reporting for the fiscal year 

ending September 30, 2011. 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

The Federal Financial Management 

Improvement Act of 1996 (FFMIA) requires 

each agency to implement and maintain 

systems that comply substantially with: (i) 

Federal financial management system 

requirements, (ii) applicable Federal 

accounting standards, and (iii) the U.S. 

Government standard general ledger at the 

transaction level. The FFMIA requires the 

Chairman to determine whether the agency's 

financial management systems comply with 

the FFMIA and to develop remediation plans 

for systems that do not comply. Our review of 

the Commission’s financial management 

system in FY 2011 demonstrated that we fully 

comply with this act. 

FY 2011 Improvement Act Results 

As of September 30, 2011, the Commission 

evaluated its financial management system to 

determine if it complied with applicable federal 

requirements and accounting standards 

required by the Improvement Act. We found 

that the Commission’s financial management 

system was in substantial compliance with the 

federal financial management system 

requirements, applicable Federal accounting 

standards and the U.S. standard general 

ledger at the transaction level. In making this 

determination, we undertook financial reporting 

tests of the system and reviewed entries at the 

transaction level, and determined compliance 

with Federal requirements and accounting 

standards required by the Improvement Act. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 26   

Prompt Payment. The Prompt Payment Act 

requires Federal agencies to make timely 

payments to vendors for supplies and services, 

to pay interest penalties when payments are 

made after the due date, and to take cash 

discounts when they are economically justified. 

As of September 30, 2011, the Commission 

made 100% of its payments, that were subject 

to the Prompt Payment Act, on-time. The 

Commission incurred $0.00 in interest 

penalties in FY 2011, which was a decrease 

compared to the FY 2010 amount of $9,812. 

The agency made 100% of its vendor 

payments electronically in FY 2011. 

Debt Collection. The Debt Collection 

Improvement Act of 1996 was enacted to 

enhance the ability of the Federal Government 

to service and collect debts. The agency goal 

is to maintain the delinquent debt owed to the 

Commission at year-end at less than two 

percent of its current annual billings. As of 

September 30, 2011, delinquent debt was $0.6 

million, which were approximately two-tenths 

of a percent of its current annual billings. The 

Commission continues to aggressively pursue 

the collection of delinquent debt and continues 

to meet the requirement that all eligible 

delinquent debt over 180 days is referred to 

the U.S. Treasury for collection. 

POSSIBLE FUTURE EFFECTS OF EXISTING EVENTS AND CONDITIONS 

As of September 30, 2011, the Commission 

has no pending litigation or contingent 

liabilities. 

LIMITATIONS OF THE FINANCIAL STATEMENTS 

The financial statements have been prepared 

to report the financial position and results of 

operations of the FERC, pursuant to the 

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

statements have been prepared from the 

books and records of the Commission in 

accordance with accounting principles 

generally accepted in the United States of 

America for Federal entities and the formats 

prescribed by OMB, the statements are in 

addition to the financial reports used to monitor 

and control budgetary resources which are 

prepared from the same books and records. 

The statements should be read with the 

realization that they are for a component of the 

U.S. Government, a sovereign entity. One 

implication of this is that liabilities cannot be 

liquidated without legislation that provides 

resources to do so. 

IMPROPER PAYMENTS INFORMATION ACT (IPIA) REPORTING 

The Commission has performed a review of its 

payments through September 30, 2011 and it 

has processed 99% of its payments without 

error. The Commission found only 75 

erroneous payments out of 7,641 total 

payments. 

The value of those erroneous payments 

totaled $570,271 out of total payments of 

$75,063,492 for fiscal year 2011.

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 27   

Financial Section
   

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 2011 and 2010. 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 2011, the Commission continued to focus on achievement of its mission. This mission 

requires the Commission to assist consumers in obtaining reliable, efficient, and sustainable energy 

services at reasonable cost through appropriate regulatory and market means. Fulfilling this mission 

involves the pursuit of two primary goals. First, the Commission will continue to establish policies and 

processes which strive 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 will take appropriate action to continually promote the development of safe, 

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

My organization has played a critical role in supporting this mission. We have worked closely with 

program officials to secure sufficient resources which directly support the accomplishment of these 

goals. The current economic climate calls for fiscal austerity in the execution of agency programs. My 

role as the agency’s primary steward requires me to ensure our financial resources are utilized in the 

most efficient and effective manner. This Performance and Accountability Report effectively 

demonstrates the manner in which the Commission leveraged its limited resources to meet its stated 

objectives. 

In addition to the contributions my organization made to directly supporting the agency’s mission, there 

are additional achievements that I find noteworthy. 

 The Commission obtained an unqualified opinion on its financial statements for the 18th 

consecutive year. In addition, it strengthened its internal control program by continuing on-going 

self-assessment efforts as required by OMB Circular No. A-123, Management’s Responsibility for 

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

financial reporting were operating effectively during FY 2011. 

 The Commission collected over $334 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 statutory collection requirements to offset its annual appropriation by more than $36 

million. 

 The Commission awarded over 37% of its total contract dollars to small, women-owned and 

minority businesses. It exceeded its performance target by 2%. 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 11%. It exceeded the administration 

established target for FY 2011 of 10%. 

 

FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 30   

This page intentionally left blank.
Independent Auditors' Report

The Federal Energy Regulatory Commission and the

Inspector General, United States Department of Energy: 

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

Commission) as of September 30, 2011 and 2010, and the related statements of net cost, changes in net 

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

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

financial statements. In connection with our fiscal year 2011 audit, we also considered the Commission's 

internal control over financial reporting and tested the Commission's compliance with certain provisions of 

applicable laws, regulations, and contracts that could have a direct and material effect on these financial 

statements.

Summary

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

statements as of and for the years ended September 30, 2011 and 2010, are presented fairly, in all material 

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

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

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

weaknesses. We did not identify any deficiencies in internal control over financial reporting that we 

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

this report.

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

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

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

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

amended.

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

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

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

responsibilities.

Opinion on the Financial Statements

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

September 30, 2011 and 2010, and the related statements of net cost, changes in net position, budgetary 

resources, and custodial activity for the years then ended.

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

financial position of the Federal Energy Regulatory Commission as of September 30, 2011 and 2010, and 

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

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

KPMG LLP 

2001 M Street, NW 

Washington, DC 20036-3389 

KPMG LLP is a Delaware limited liability partnership, 

the U.S. member firm of KPMG International Cooperative 

(“KPMG International”), a Swiss entity. 
Federal Energy Regulatory Commission

November 4, 2011

Page 2 of 3 

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

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

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

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

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

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

whole. The information in the Performance Report section and the Appendices of the Performance and 

Accountability Report are presented for purposes of additional analysis and are not required as part of the 

financial statements. This information has not been subjected to auditing procedures and, accordingly, we 

express no opinion on it.

Internal Control Over Financial Reporting

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

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

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

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

the entity's financial statements will not be prevented, or detected and corrected on a timely basis. 

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

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

over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. In our 

fiscal year 2011 audit, we did not identify any deficiencies in internal control over financial reporting that 

we consider to be material weaknesses, as defined above.

We noted certain additional matters that we will report to management of the Commission in a separate 

letter.

 

Compliance and Other Matters

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

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

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

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

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

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

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

Ledger at the transaction level.

* * * * * * *

Responsibilities

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

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

the Commission. 

Auditors' Responsibilities. Our responsibility is to express an opinion on the fiscal year 2011 and 2010

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

November 4, 2011

Page 3 of 3 

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

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

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

amended, require that we plan and perform the audits to obtain reasonable assurance about whether the 

financial statements are free of material misstatement. An audit includes consideration of internal control 

over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, 

but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control 

over financial reporting. Accordingly, we express no such opinion.

An audit also includes:

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

statements;

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

• Evaluating the overall financial statement presentation.

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

In planning and performing our fiscal year 2011 audit, we considered the Commission's internal control 

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

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

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

financial statements, but not for the purpose of expressing an opinion on the effectiveness of the 

Commission's internal control over financial reporting. Accordingly, we do not express an opinion on the 

effectiveness of the Commission's internal control over financial reporting. Furthermore, we did not test all 

controls relevant to operating objectives as broadly defined by the Federal Managers' Financial Integrity 

Act of 1982. 

As part of obtaining reasonable assurance about whether the Commission's fiscal year 2011 financial 

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

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

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

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

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

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

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

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

______________________________

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

Department of Energy's Office of Inspector General, OMB, the U.S. Government Accountability Office, 

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

specified parties.

November 4, 2011
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 34   

FEDERAL ENERGY REGULATORY COMMISSION 

Balance Sheets 

As of September 30, 2011 and 2010 

(in dollars) 

2011 2010 

Assets (note 3): 

Intragovernmental: 

Fund balances with Treasury (note 4) $ 54,600,682 $ 64,730,901 

Accounts receivable (note 5) 1,941 3,372,794 

Total intragovernmental 54,602,623 68,103,695 

Accounts receivable, net (note 5) 9,076,833 36,011,946 

Property and equipment, net (note 6) 7,265,682 7,823,851 

Total assets $ 70,945,138 $ 111,939,492 

Liabilities: 

Intragovernmental: 

Accounts payable $ 3,281,152 $ 2,418,114 

Other (note 7): 

Accrued payroll and benefits 606,598 1,835,569 

Resources transferable to Treasury and other 

Federal entities 1,179,285 18,456,550 

Workers' compensation payable (note 9) 583,653 581,363 

Total intragovernmental 5,650,688 23,291,596 

Accounts payable 15,467,725 12,196,686 

Other (note 7): 

Accrued payroll and benefits 3,190,631 8,899,401 

Collections due to states 1,566,870 5,693,477 

Commitments and contingencies (note 11) - 51,000 

Revenue collected under protest 187,575 6,219,698 

Refunds and other amounts due 89,089 188,125 

Accrued leave (note 9) 14,053,693 14,184,567 

FECA Actuarial Liability (note 9) 2,466,002 2,337,916 

Resources transferable to other entities from 

disgorged funds 7,847,489 16,108,453 

Total liabilities 50,519,762 89,170,919 

Net Position: 

Unexpended appropriations - other funds 30,147,320 31,897,786 

Cumulative results of operations - other funds (9,721,944) (9,129,213)

Total net position 20,425,376 22,768,573 

Total liabilities and net position $ 70,945,138 $ 111,939,492 

The accompanying notes are an integral part of these statements. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 35   

FEDERAL ENERGY REGULATORY COMMISSION 

Statements of Net Cost 

For Years Ending September 30, 2011 and 2010 

(in dollars) 

Program costs: 2011 2010 

 Regulation: 

 Just and Reasonable Rates, Terms, 

 & Conditions (note 14): 

 Gross costs $ 176,895,475 $ 167,223,279 

 Less: earned revenue 176,895,475 167,223,279 

 Net program costs $ - $ - 

 Infrastructure (note 14): 

 Gross costs $ 139,024,817 $ 135,410,599 

 Less: earned revenue 139,024,817 135,398,026 

 Net program costs $ - $ 12,573 

 Total (note 14): 

 Gross costs $ 315,920,292 $ 302,633,878 

 Less: earned revenue 315,920,292 302,621,305 

 Net program costs $ - $ 12,573 

The accompanying notes are an integral part of these statements. 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 36   

FEDERAL ENERGY REGULATORY COMMISSION 

Statements of Changes in Net Position 

For Years Ending September 30, 2011 and 2010 

(in dollars)

 

2011 2010 

Cumulative Results of Operations: 

Beginning balances $ (9,129,213) $ (4,017,948)

Appropriations used 299,750,466 286,237,887 

Other Financing Sources (Non-Exchange): 

 Transfers – out to Treasury without reimbursement (315,885,244) (307,502,383)

 Imputed financing from costs absorbed by others (note 10) 15,542,047 16,165,804 

 Total Financing Sources (592,731) (5,098,692)

Net Cost of Operations - (12,573)

Net Change (592,731) (5,111,265)

Cumulative Results of Operations $ (9,721,944) $ (9,129,213)

Unexpended Appropriations: 

Beginning balances $ 31,897,786 $ 20,135,673 

Budgetary Financing Sources: 

 Appropriations received 298,000,000 298,000,000 

 Appropriations used (299,750,466) (286,237,887)

 Total Budgetary Financing Sources (1,750,466) 11,762,113 

Total Unexpended Appropriations $ 30,147,320 $ 31,897,786 

Net Position $ 20,425,376 $ 22,768,573 

 

 

 

 

The accompanying notes are an integral part of these statements. 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 37   

FEDERAL ENERGY REGULATORY COMMISSION 

Statements of Budgetary Resources 

For Years Ending September 30, 2011 and 2010 

(in dollars) 

2011 2010 

Budgetary Resources: 

Unobligated balance, beginning of period $ 11,791,937 $ 8,389,692 

Recoveries of prior year unpaid obligations 2,530,760 1,699,338 

Budgetary authority 

Appropriation 5,790,138 - 

Collected 298,034,503 298,017,863 

Change in unfilled customer orders 

Without advance from Federal Sources 1,012 103 

Subtotal 303,825,653 298,017,966 

Total Budgetary Resources $ 318,148,350 $ 308,106,996 

Status of Budgetary Resources: 

Obligations incurred: (note 15) 

Direct $ 298,139,919 $ 296,297,093 

Reimbursable 35,516 17,966 

Subtotal 298,175,435 296,315,059 

Unobligated balances available and apportioned 

Apportioned 19,972,915 11,630,401 

Unobligated balance not available - 161,536 

Total status of budgetary resources $ 318,148,350 $ 308,106,996 

Change in Obligated Balance: 

Obligated balance, net 

Unpaid obligations, brought forward, October 1 $ 45,548,555 $ 39,800,875 

Less: Uncollected customer payments from 

 Federal sources, brought forward, October 1 (39,935) (39,832)

Total unpaid obligated balance, net 45,508,620 39,761,043 

 

 

 

 

 

 The accompanying notes are an integral part of these statements. 

 

 

 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 38   

Obligations incurred net $ 298,175,435 $ 296,315,059 

Less: Gross outlays (306,855,420) (288,868,042)

Less: Recoveries of prior year unpaid 

 obligations, actual (2,530,760) (1,699,338)

Change in uncollected customer payments 

 from Federal sources (1,012) (103)

 

Obligations balance, net, end of period 

Unpaid obligations 34,337,808 45,548,555 

Less: Uncollected customer payments from 

 from Federal sources (40,947) (39,935)

Total, unpaid obligated balance, net, 

 end of period $ 34,296,861 $ 45,508,620 

Net Outlays: 

Gross outlays $ 306,855,420 $ 288,868,042 

Less: Offsetting collections (298,034,503) (298,017,863)

Less: Distributed offsetting receipts (40,279,404) (33,583,397)

Net outlays $ (31,458,487) $ (42,733,218)

 

 

 

The accompanying notes are an integral part of these statements. 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 39   

FEDERAL ENERGY REGULATORY COMMISSION 

Statements of Custodial Activity 

For Years Ending September 30, 2011 and 2010 

(in dollars) 

 

 2011 2010 

Sources of collections: 

Cash collections – annual charges $ 47,566,629 $ 34,470,800

Accrual adjustment (19,648,365) 20,031,461

 Total custodial revenue (note 12) 27,918,264 54,502,261

Disposition of collections: 

Transferred to others: 

United States Army – Corps of 

 Engineers (9,288,982) (4,450,406)

 Department of Interior (12,949,513) (1,058,915)

 United States Treasury (19,456,212) (35,239,228)

 Various states (5,831,575) -

Decrease (increase) in Amounts Yet to be 

 transferred 19,608,018 (13,753,712)

 Net Custodial Activities $ - $ -

 

 

The accompanying notes are an integral part of these statements. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 40   

NOTES TO FINANCIAL STATEMENTS 

September 30, 2011 and 2010 

(1) Description of Reporting Entity 

The Federal Energy Regulatory Commission 

(the Commission) is an independent Federal 

agency that oversees key operating functions 

of the United States’ natural gas and oil 

pipeline transportation, electric utility and 

hydroelectric power industries. 

The Commission was created through the 

Department of Energy’s (DOE) Organization 

Act on October 1, 1977. The Commission’s 

predecessor, the Federal Power Commission 

(FPC), established in 1920, was abolished, 

and the Commission inherited a significant 

portion of FPC’s energy agenda. 

The Commission administers laws and 

regulations involving key energy issues. These 

include the transportation and sale of natural 

gas and oil in interstate commerce; regulation 

of electric utility wholesale rates and 

transactions; licensing and inspection of 

private, municipal, and state hydroelectric 

projects; and oversight of related 

environmental matters. 

The Commission’s main legal authority is 

derived from the Federal Power Act of 1935 

(FPA), the Natural Gas Act of 1938, the 

Natural Gas Policy Act of 1978, and the Public 

Utility Regulatory Policies Act of 1978. 

On September 30, 2009, The Commission 

submitted to Congress its updated Strategic 

Plan which will serve as a guide through fiscal 

year 2014. As part of the update process, the 

Commission realigned its resources and 

activities with its key statutory authorities. This 

resulted in an updated mission statement and 

two strategic goals. 

The Commission’s activities are separated into 

the following two goals: 

Just and Reasonable Rates, Terms and 

Conditions. One of the Commission’s 

fundamental statutory responsibilities is to 

ensure that rates, terms and conditions for 

wholesale sales and transmission of electric 

energy and natural gas are just and 

reasonable and not unduly discriminatory or 

preferential. The Commission uses a 

combination of regulatory and market means 

to achieve this goal, including reviewing tariffs 

and making rate determinations. Oversight of 

the energy markets and enforcement of the 

associated laws, rules and regulations are 

essential complements to the regulatory and 

market means. The Commission uses a 

balanced approach in its oversight and 

enforcement efforts, including: educating 

affected entities about market rules and other 

regulations; promoting internal compliance 

programs; employing robust audit and 

investigation programs; and, where 

appropriate, exercising the Commission’s civil 

penalty authority as a deterrent to violations. 

Infrastructure. The Commission plays an 

important role in the development of a strong 

energy infrastructure that operates efficiently, 

safely and reliably. The Commission has siting 

authority that includes licensing non-federal 

hydropower projects, certificating interstate 

natural gas pipelines and storage projects, 

authorizing liquefied natural gas (LNG) 

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 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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 41   

Cost Recovery 

As described below, the Commission recovers 

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

Treasury (the Treasury) through annual 

charges and filing fees authorized by the 

Omnibus Budget Reconciliation Act of 1986 

and other laws. 

Annual Charges 

The Commission recovers most of its 

administrative program costs through allocated 

annual charges to the entities it regulates, 

regardless of the number or type of services 

rendered to any particular entity during the 

year. The annual charge assessed in a fiscal 

year is based on an estimate of costs to be 

incurred during that year. Final program costs 

are determined from year-end accounting 

reports and time distribution reports by office 

and program. The difference in assessments 

that results from estimated versus final 

program costs is an adjustment to the following 

fiscal year’s assessments. The authority and 

related implementation methods for the annual 

changes are summarized as follows: 

Hydropower 

Authority – Section 10(e) of FPA makes the 

general provision that licensees under Part I of 

FPA shall pay reasonable annual charges to 

compensate the federal government for the 

costs of administering Part I. 

Implementation – The methods for assessing 

annual charges to hydropower licensees are 

codified at 18 Code of Federal Regulations 

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

capacity (municipal projects), on capacity and 

generation (non-municipal projects), or on a 

flat rate per horsepower under 1,000 (minor 

projects). 

Gas, Electric, and Oil 

Authority – Section 3401 of the Omnibus 

Budget Reconciliation Act of 1986 provides 

that the Commission shall “assess and collect 

fees and annual charges in any fiscal year in 

amounts equal to all of the costs incurred by 

the Commission in that fiscal year.” It further 

provides that “fees or annual charges 

assessed shall be computed on the basis of 

methods that the Commission determines, by 

rule, to be fair and equitable.” 

Implementation – The methods for assessing 

annual charges to gas and oil pipelines and to 

electric utilities and power marketing 

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

382.201 – 203. Costs are prorated to gas 

pipelines based on volume transported 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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 42   

its net costs, changes in net position, 

budgetary resources, and custodial 

activity in accordance with accounting 

principles generally accepted in the 

United States of America applicable to 

federal government entities. 

These financial statements have also 

been prepared in accordance with the 

form and content for financial statements 

specified by Office of Management and 

Budget (OMB) Circular Number (No.) A136, 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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 43   

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 20 years 

for leasehold improvements, 10 years for 

furniture, 2 to 5 years for commercially 

purchased or internally developed 

software, and 5 years for all remaining 

assets. Expenditures for repairs and 

maintenance are charged to program 

costs as incurred. 

(h) Liabilities 

Liabilities represent amounts owed by 

the Commission as the result of 

transactions or events that have 

occurred as of year-end. Liabilities for 

which Congress has not appropriated 

funds are disclosed in note 9 as liabilities 

not covered by budgetary resources. 

(i) Workers’ Compensation Payable 

The Federal Employees Compensation 

Act (FECA) provides income and 

medical cost protection to cover federal 

civilian employees injured on the job, 

employees who have incurred a 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 50% of the 

fees it collects from licensees for the 

occupancy and use of public lands to 

affected states in the year following 

collection. These collections are initially 

deposited into the Treasury’s 

miscellaneous receipts fund. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 44   

(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 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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 45   

(3) Non-Entity Assets 

Non-entity assets at September 30, 2011 and 2010 consisted of: 

2011 2010 

 

Intragovernmental: 

 Accounts receivable $ - $ 3,338,427

 Fund balances with Treasury: 

 Collections due to states 1,566,070 271 

 Revenue collected under protest 187,575 6,219,698 

 Disgorged funds 12,730 1,022,448 

 Miscellaneous receipts held in suspense 89,089 188,125 

Total intragovernmental assets 1,855,464 10,768,969 

Accounts receivable, net 9,078,774 30,116,241 

 Total non-entity assets $ 10,934,238 $ 40,885,210 

Total entity assets 60,010,900 71,054,282 

 Total assets $ 70,945,138 $ 111,939,492 

(4) Fund Balance with Treasury 

Fund balance with Treasury at September 30, 2011 and 2010 consisted of: 

 2011 2010 

 

Fund Balances: 

 General: 

 Appropriated funds $ 52,745,218 $ 57,300,359 

 Other: 

 Revenue collected under protest 187,575 6,219,698 

 Disgorged funds 12,730 1,022,448 

 Miscellaneous receipts held in suspense 89,089 188,125 

 Collections Due to States 1,566,070 271 

 Total $ 54,600,682 $ 64,730,901 

Status of Fund Balance with Treasury 

 Unobligated balance: 

 Available $ 19,972,915 $ 11,630,401 

 Unavailable 289,959 7,551,945 

 Obligated balance not yet disbursed 34,337,808 45,548,555 

 Total $ 54,600,682 $ 64,730,901 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 46   

(5) Accounts Receivable, net 

Entity and non-entity accounts receivable at September 30, 2011 and 2010 consisted of: 

 2011 

Annual 

Charges Other Total 

Entity 

Uncollected billings $ 522,253 $ 85,294 $ 607,547 

Unbilled billings 49,776 - 49,776 

Uncollected intragovernmental billings - 1,941 1,941 

Allowance for doubtful accounts - (23,304) (23,304)

 Total entity accounts receivable, net 572,029 63,931 635,960 

 

Non-entity 

Uncollected billings 36,069 70,935,511 70,971,580 

Unbilled billings - - - 

Uncollected intragovernmental billings - - - 

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

Total non-entity accounts receivable, net 36,069 8,406,745 8,442,814 

 Total accounts receivable, net $ 608,098 $ 8,470,676 $ 9,078,774 

 2010 

Annual 

Charges Other Total 

Entity 

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

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

Uncollected intragovernmental billings 33,438 929 34,367 

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

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

 

Non-entity 

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

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

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

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

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

 Total accounts receivable, net $ 22,428,956 $ 16,955,784 $ 39,384,740 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 47   

(6) Property and Equipment, net 

Property and equipment and related accumulated depreciation at September 30, 2011 and 2010 

consisted of: 

 2011 

Acquisition 

Amount 

Accumulated 

Depreciation Net 

Equipment $ 5,173,374 $ 3,255,278 $ 1,918,096

Furniture 10,636,907 9,257,214 1,379,693

Leasehold improvements 11,713,238 7,807,004 3,906,234

ADP software 16,418,335 16,418,335 -

Construction in process 61,659 - 61,659

Capital assets 29,000 29,000 -

 Total Property and Equipment, net $ 44,032,513 $ 36,766,831 $ 7,265,682

 2010 

Acquisition 

Amount 

Accumulated 

Depreciation Net 

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

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

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

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

Construction in process - - - 

Capital assets 29,000 29,000 - 

 Total Property and Equipment, net $ 44,765,406 $ 36,941,555 $ 7,823,851 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 48   

(7) Other Liabilities 

Other liabilities at September 30, 2011 and 2010 consisted of: 

 2011 

Current Non-Current Total 

Intragovernmental 

 Accrued payroll and benefits $ 606,598 $ - $ 606,598 

Resources transferable to Treasury 

 and other Federal entities 1,179,285 - 1,179,285 

 Workers' compensation payable 288,134 295,519 583,653 

 Total other intragovernmental liabilities 2,074,017 295,519 2,369,535 

 

Accrued payroll and benefits 3,190,631 - 3,190,631 

Collections due to states 1,566,870 - 1,566,870 

Commitments and Contingencies - - - 

Revenue collected under protest 187,575 - 187,575 

Refunds and other amounts due 89,089 89,089 

Accrued leave 14,053,693 - 14,053,693 

FECA Actuarial Liability - 2,466,002 2,466,002 

Resources transferable to other entities from 

 disgorged funds 7,847,489 - 7,847,489 

 Total other liabilities $ 29,009,364 $ 2,761,521 $ 31,770,885 

 

 2010 

 Current Non-Current Total 

Intragovernmental 

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

Resources transferable to Treasury 

 and other Federal entities 18,456,550 - 18,456,550 

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

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

 

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

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

Commitments and Contingencies 51,000 - 51,000 

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

Refunds and other amounts due 188,125 - 188,125 

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

FECA Actuarial Liability - 2,337,916 2,337,916 

Resources transferable to other entities from 

 disgorged funds 16,108,453 - 16,108,453 

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

Resources transferable to Treasury represents future collections on accounts receivable that will be 

forwarded to Treasury upon receipt. 

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

protesting entities once the protest is resolved. 

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

overpayments of prior billings and other amounts due for miscellaneous activities, such as parking. 

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

to specific entities in the future. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 49   

(8) Leases 

The General Services Administration (GSA) 

enters into lease agreements for government 

buildings and maintains those lease 

agreements. The Commission pays GSA a 

standard level users charge for the annual 

rental of building space, of which Commission 

Headquarters is in Washington, DC and 

several other regional offices are located in 

various parts of the country. The standard 

level users charge approximates the 

commercial rental rates for similar properties. 

The Commission generally executes an 

occupancy agreement with GSA, which 

normally includes a requirement to give 30-120 

days notice to vacate. Expenses incurred for 

building leases amounted to $20.7 million and 

$20.7 million for periods ended September 30, 

2011 and 2010, respectively.

Real Property Operating Leases – Future Payments 

 

Fiscal Year GSA Non-GSA Total 

FY 2012 $ 13,677,350 $ 53,354 $ 13,730,704 

FY 2013 13,717,481 36,807 13,754,288 

FY 2014 13,480,515 12,269 13,492,784 

FY 2015 13,516,206 - 13,516,206 

FY 2016 16,829,346 - 16,829,346 

Beyond FY 2016 143,805,404 - 143,805,404 

 Total future minimum lease payments $ 215,026,302 $ 102,430 $ 215,128,732 

 

(9) Liabilities Not Covered by Budgetary Resources 

Liabilities not covered by budgetary resources at September 30, 2011 and 2010 consisted of: 

 2011 2010 

 Intragovernmental 

 Workers' compensation payable $ 583,653 $ 581,363 

 Total intragovernmental 583,653 581,363 

 

 Accrued leave 14,053,693 14,184,567 

 FECA Actuarial Liability 2,466,002 2,337,916 

 Total liabilities not covered by budgetary resources $ 17,103,348 $ 17,103,846 

(10) Pension Expense 

Commission employees participate in either 

the Civil Service Retirement System (CSRS) or 

the Federal Employees’ Retirement System 

(FERS). Employees participating in CSRS 

contribute 7% of their basic pay to the plan, 

and the Commission makes a matching 

contribution. For employees participating in 

the FERS program, the Commission makes a 

contribution of 11.7% of basic pay. 

On January 1, 1987, FERS went into effect 

pursuant to Public Law 99 335. Most 

employees hired after December 31, 1983, are 

automatically covered by FERS and Social 

Security. Employees hired prior to January 1, 

1984, could elect either to join FERS and 

Social Security or remain in CSRS. FERS 

offers a savings plan in which the Commission 

automatically contributes 1% of employees’ 

basic pay and matches any employee 

contribution up to an additional 4% of basic 

pay. For most employees hired since 

December 31, 1983, the Commission also 

contributes the employer’s matching share for 

Social Security. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 50   

The actuarial present value of accumulated 

benefits, assets available for benefits, and 

unfunded pension liability of CSRS and FERS 

is not allocated to individual departments and 

agencies and is, therefore, not disclosed by 

the Commission. Total pension expense paid 

by the Commission for both plans for fiscal 

years 2011 and 2010 was approximately $17.3 

million and $15.9 million, respectively as of 

September 30th. For fiscal years ended 

September 30, 2011 and 2010, an additional 

$15.5 million and $16.2 million, respectively, of 

pension and life and health insurance expense 

was recognized by the Commission for 

amounts that will ultimately be funded through 

the Office of Personnel Management. This 

amount is also recorded as an imputed 

financing source. 

(11) Commitments and Contingencies 

The Commission has no contingent liabilities to 

report as of September 30, 2011 as compared 

to $51,000 as of September 30, 2010. 

(12) Custodial Activity 

The Commission currently bills regulated 

companies annual charges as a custodian for 

certain Federal agencies. These agencies 

include the United States Army Corps of 

Engineers, the Department of Interior’s Bureau 

of Reclamation, and the Treasury. Accrual 

accounting is used to account for the 

Commission’s custodial activities. The 

receivables are maintained by the 

Commission, and the collections are 

processed to each Federal agency on a 

monthly basis. In addition to the annual 

charges, penalty and administrative costs are 

assessed on past-due bills and remitted to the 

Treasury when received. For fiscal years 

ending September 30, 2011 and 2010, these 

custodial collections totaled approximately 

$47.6 million and $34.5 million, respectively. 

For fiscal years ending September 30, 2011 

and 2010, custodial revenue totaled 

approximately $27.9 million and $54.5 million, 

respectively. 

 

(13) Earmarked Funds 

In accordance with the Federal Accounting 

Standards Advisory Board’s Statement on 

Federal Financial Accounting Standards 

(SFFAS) No. 27, Identifying and Reporting 

Earmarked Funds, the Commission is required 

to report separately on the Balance Sheets 

and Statements of Changes in Net Position, 

the non-exchange revenue, other financing 

sources, net cost of operations and net 

position attributable to earmarked funds. In 

addition, the Commission must disclose the 

earmarked fund for which it has program 

management responsibility. The 

Commission’s Collections Due to States fund 

meets the criteria for earmarked funds. The 

balances as of September 30, 2011 and 2010 

were $1.6 million and $0 respectively. 

 

Fund 89X5105 and 895105 pertains to the Use 

of Government lands. "Reasonable annual 

charges for recompensing the United States 

for the use, occupancy, and enjoyment of its 

lands or its other property will be fixed by the 

Commission." 18 CFR CH 1, part 11.2(a) 

 

The Commission disposes of the charges 

arising from licenses in accordance with USC, 

Title 16, CH 12, Part I, Sec 810 “All other 

charges arising from licenses hereunder, 

except charges fixed by the Commission for 

the purpose of reimbursing the United States 

for the costs of administration of this 

subchapter, shall be paid into the Treasury of 

the United States and credited to 

Miscellaneous Receipts. 37.5 per centum of 

the charges arising from licenses hereunder 

for the occupancy and use of national forests 

and public lands from development within the 

boundaries of any State shall be paid by the 

Secretary of the Treasury to such state” 

 

The Commission bills out of the receipt 

account 895105, requests a warrant for the 

amount of the collections, which is used to 

transfer the collections into the expenditure 

account, 89X5105. The actual payments to 

the states are made from account 89X5105. 

Since the earmarked funds managed by the 

Commission are custodial in nature, there are 

no equity balances to report on the financial 

statements as of September 30, 2011 and 

2010.
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 51   

(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, 2011 and 2010 consisted of: 

2011 2010 

Just and Reasonable Rates, Terms, & 

Conditions 

 Intragovernmental costs $ 34,953,335 $ 33,574,618 

 Public costs 141,942,140 133,648,661 

Total Just and Reasonable Rates, Terms, and 

 Conditions costs 176,895,475 167,223,279 

 

 Intragovernmental earned revenue 20,168 18,391 

 Public earned revenue 176,875,307 167,204,888 

Total Just and Reasonable Rates, Terms, and 

 Conditions earned revenues 176,895,475 167,223,279 

Infrastructure 

 Intragovernmental costs 27,468,754 27,472,813 

 Public costs 111,556,063 107,937,786 

Total Infrastructure costs 139,024,817 135,410,599 

 

 Intragovernmental earned revenue 51,362 20,440 

 Public earned revenue 138,973,455 135,377,586 

Total Infrastructure earned revenues 139,024,817 135,398,026 

Costs 

 Intragovernmental Costs 62,422,089 61,047,431 

 Public Costs 253,498,203 241,586,447 

Total Costs 315,920,292 302,633,878 

Revenue 

 Earned Intragovernmental Revenue 71,530 38,831 

 Earned Public Revenue 315,848,762 302,582,474 

Total Earned Revenue $ 315,920,292 $ 302,621,305 

(15) Apportionment Categories of Obligations Incurred 

Apportionment categories of obligations incurred as of September 30, 2011 and 2010 

consisted of: 

 2011 2010 

Category A: 

 Direct $ 298,139,919 $ 296,297,093 

 Reimbursable 35,516 17,966 

Total obligations incurred $ 298,175,435 $ 296,315,059 

Category A apportionments distribute budgetary resources by fiscal quarters. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 52   

(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, 2010. 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, 

2011 is not presented, because the 

submission of the FY 2013 budget occurs after 

publication of these financial statements. The 

Commission’s Budget Appendix can be found 

under the Department of Energy on the OMB 

website and will be available in February 2012 

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

(17) Undelivered Orders at the End of the 

Period 

Undelivered orders are obligations made by 

the Commission for services and purchases 

that have not been received and accepted as 

of the balance sheet date. The amount of 

Commission budgetary resources reported as 

undelivered orders as of September 30th for 

fiscal years 2011 and 2010 were $10.3 million 

and $20.2 million, respectively. 

(Remainder of page intentionally left blank.) 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 53   

(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. 

2011 2010 

Resources used to finance activities: 

Budgetary resources obligated: 

 Obligations incurred $ 298,175,435 $ 296,315,059 

 Less: spending authority from offsetting collections (300,566,275) (299,717,304)

 Obligations, net of offsetting collections (2,390,840) (3,402,245)

 Less: offsetting receipts (40,279,404) (33,583,397)

 Net obligations (42,670,244) (36,985,642)

Other resources: 

 Transfers-out, net of appropriations received (17,885,244) (4,615,912)

 Imputed financing from costs absorbed by others 15,542,047 16,165,804 

 Net other resources used to finance activities (2,343,197) 11,549,892 

Total resources used to finance activities (45,013,441) (25,435,750)

Resources used to finance items not part of the net 

 cost of operations 

 Change in budgetary resources obligated for goods/ 

 services/benefits ordered but not yet provided (+/-) 9,931,444 (8,370,229)

 Budgetary offsetting receipts that do not affect the net 

 cost of operations 40,279,404 33,583,397 

 Resources that finance the acquisition of assets (732,895) (5,237,132)

 Payments to States (5,790,062) (33,332)

Total resources used to finance items not part of the net 

cost of operations 43,687,891 19,942,704 

Total resources used to finance the net cost of operations (1,325,550) (5,493,046)

Components of the net cost of operations that will not 

 require or generate resources in the current period: 

Components requiring or generating resources in the 

future periods: 

 Increase in unfunded liabilities (51,499) 3,360,948 

 Total components of net cost of operations that will 

 require or generate resources (51,499) 3,360,948 

Components not requiring or generating resources: 

 Depreciation and amortization 1,632,015 2,180,964 

 Other (254,966) (36,293)

Total components of net cost of operations that will not 

 require or generate resources 1,377,049 2,144,671 

Total net cost of operations that do not require or 

 generate resources in the current period 1,325,550 5,505,619 

Net Cost of Operations $ - $ 12,573 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 54   

Performance Report 

(Unaudited) 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 55   

INTRODUCTION 

In accordance with Government 

Performance and Results Act of 1993, the 

Commission developed its Strategic and 

Business Plans, as well as its performance 

measures, to ensure it is fulfilling its mission. 

When comparing the planned and actual 

performance according to the guidelines set 

forth in Section 230 of OMB Circular A-11, 

the Commission: 

• determined that its performance 

results are complete and reliable based on 

the fact that results are listed for every 

performance measure and target, that 

decision-makers use the information 

contained in the results “on an ongoing basis 

in the normal course of their duties,” and that 

the information contained in the results are 

derived via internal tracking mechanisms; 

and 

• identified no “significant or material” 

performance shortfalls based on the fact that 

none of the Commission’s unmet 

performance measures or targets had an 

adverse effect on overall program 

performance.

The tables on the following pages include 

the Commission’s complete performance 

measurement data for fiscal years 2006 

through 2011. 

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 

and 2011 are aligned with the Commission’s 

current Strategic Plan. The Performance 

Measures for fiscal years 2006 – 2009 are 

aligned with previous versions of the 

Commission’s Strategic Plan. 

The Commission did not engage in an 

independent program evaluation during FY 

2011. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 56   

PERFORMANCE DATA FOR ENERGY INFRASTRUCTURE: FY 2006 - 2009 

FY 2006 

Performance Measurement Performance Target Result 

Develop strategic plan and timeline for 

transmission line siting group By August 31, 2006 

Target Met. The strategic plan and 

timeline were in place by August 31, 

2006. Steps have been taken to establish 

a transmission line siting group 

including: the issuance of a Notice of 

Proposed Rulemaking to establish the 

necessary rules and regulations to 

process applications filed with the 

Commission and posting openings to fill 

these essential positions. 

Issue final rules on mandatory pre-filing 

process for LNG terminal proposals 

Within 60 days of enactment of EPAct 

2005 

Target Met. The Commission issued 

regulations on the mandatory pre-filing 

process for LNG terminal proposals 

within 60 days of the enactment of 

EPAct 2005. The Pre-Filing Rule was 

issued on October 7, 2005 in Docket No. 

RM 05-31-000, Order 665; the effective 

date of the rule was November 17, 2005. 

Complete MOU with Secretary of 

Defense on coordination of LNG 

facilities affecting active military 

installations 

By March 31, 2006 

Target Not Met. Both DoD contacts 

retired or were transferred during 

negotiations. A new DoD contact was 

assigned in July 2006 and negotiations 

are underway again. This did not impact 

operations. 

Issue reports to Congress on Alaska 

Natural Gas Pipeline 

Reports issued in February 2006 and 

August 2006 

Target Met. Reports issued February 1 

and July 10, 2006. 

Establish rules for transmission 

infrastructure incentives Issue rules by August 8, 2006 

Target Met. Docket No. RM06-4-000; 

Final Rule, Order No. 679, “Promoting 

Transmission Investment through 

Pricing Reform,” issued July 20, 2006. 

Identify requirements for establishing a 

communications system with 

transmission owners and RTOs on status 

of transmission lines 

Issue report to Congress by February 4, 

2006 

Target Met. Report entitled “Steps to 

Establish a Transmission Monitoring 

System for Transmission Owners and 

Operators within the Eastern and 

Western Interconnections,” submitted to 

Congress on February 2, 2006. 

Establish process to review ERO 

proposed initial reliability standards By March 31, 2006 

Target Met. Developed a rulemaking 

process and timeline for addressing the 

initial reliability standards; the process 

and timeline were approved by the 

Commission in March 2006. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 57   

FY 2006 

Performance Measurement Performance Target Result 

Issue report to Congress on operator 

training By December 31, 2005 

Target Not Met. Although a 

comprehensive study of the current state 

of control room operator training across 

the bulk power system of the United 

States was completed in early 

December, the report has not yet been 

sent to Congress. The Commission is 

currently involved in a comprehensive 

rulemaking related to ERO reliability 

standards which will include standards 

related to operator training. This did not 

negatively impact operations. 

Percentage of qualifying, major, 

onshore-pipeline projects inspected 

during ongoing construction activity 

100% of projects inspected at least once 

every four weeks 100% 

Percentage of pipeline certificate cases 

with no precedential issues completed 

 90% of unprotested cases within 159 

days of filing 

 90% of protested cases within 304 

days of filing 

 94% 

 100% 

Percentage of pipeline certificate cases 

of first impression or containing larger 

policy implications completed 

90% within one year of filing 100% 

Percentage of pipeline certificate cases 

requiring a major environmental 

assessment or environmental impact 

statement completed 

90% within 18 months of filing 100% 

Percentage of qualifying LNG plants 

inspected during ongoing construction 

activity 

100% of plants inspected at least once 

every eight weeks 100% 

Percentage of LNG import terminals 

inspected 100% inspected annually 100% 

Percentage of LNG peak-shaving 

terminals inspected 50% inspected annually 50% 

Percentage of ILP pre-filing notices for 

NOI/PAD and initial scoping document 

issued 

85% within 60 days of NOI/PAD filing 100% 

Percentage of ILP pre-filing scoping 

meetings and site visits completed 85% within 90 days of NOI/PAD filing 100% 

Percentage of ILP pre-filing study plan 

determinations completed 85% within 315 days of NOI/PAD filing 100% 

Percentage of final NEPA documents 

issued for ALP/TLP cases with 

settlement agreements 

85% within 12 months 94% 

Percentage of final NEPA documents 

issued for ALP/TLP cases without 

settlement agreements 

85% within 24 months 94% 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 58   

FY 2006 

Performance Measurement Performance Target Result 

Percentage of non-independent 

transmission provider open access 

transmission tariffs that have standard 

generator interconnection procedures in 

compliance with Order No. 2003 and 

small generator final rule 

75% by September 30, 2006 

Target Met. 100% compliance with 

Order No. 2006, “Standardization of 

Small Generator Interconnection 

Agreements and Procedures,” issued 

May 12, 2005, was established through 

language contained in paragraph 544 of 

the Final Rule, as follows: “On the 

effective date of this Final Rule...the 

OATTs [open access transmission 

tariffs] of all non-independent 

Transmission Providers are deemed 

revised to include the Final Rule SGIP 

[Standard Generator Interconnection 

Procedures] and SGIA [Standard 

Generator Interconnection Agreement].” 

In accordance with other language in the 

same paragraph, no further amendment 

to include the SGIP and SGIA in a 

Transmission Provider’s OATT is 

required until compliance is due in the 

Commission’s pending rulemaking on 

Electronic Tariff Filings. 

Compliance with Order No. 2003 (large 

generator rule) was completed and 

reported on during FY 2005 (see 

previous results). 

Percentage of cases for cost recovery, 

new services, or changes to existing 

services processed 

 100% of NGA section 4 cases in 30 

days 

 100% of FPA section 205 cases in 60 

days 

Target Met. 100% of the more than 

3,350 statutory cases were completed by 

the statutory action date. 

Percentage of rate cases set for hearing 

completed according to the established 

schedule 

 75% of Track I cases in 29.5 weeks 

 75% of Track II cases in 47 weeks 

 75% of Track III cases in 63 weeks 

 There were no Track I cases 

 90% of Track II cases in 47 weeks 

 94% of Track III cases in 63 weeks 

Percentage of rate cases set for hearing 

that achieve partial or complete 

consensual agreement 

75% 78% 

Percentage of Commission Opinions 

issued once Briefs Opposing Exceptions 

to Initial Decisions are filed 

90% within 12 months 

Target met. 100% (10 of 10) Initial 

Decisions processed within 12 months of 

Briefs Opposing Exceptions. 

Percentage of merit orders accepting, 

modifying, or rejecting timely filed cost 

recovery proposals for new 

infrastructure submitted (including time 

for hearing, ADR, or settlement judge 

participation) 

95% by applicant request date 

Target Met. 96% of the 120 merit orders 

to resolve cost recovery proposals for 

new infrastructure were issued by 

statutory or requested date as applicable. 

In the case of gas pipeline certificate 

applications, contributed rate inserts to 

allow timely completion. 

Timeliness of issuing environmental 

licensing requirements 

Licensing responsibility letters sent 

within 45 business days of license 

issuance date 

Target Met. All licensing responsibility 

letters were issued within 45 days of 

license issuances. 

Percentage of NEPA documents 

completed for projects utilizing the prefiling processes 

85% within 8 months of determining a 

pipeline or LNG facility application 

complete 

100% 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 59   

FY 2006 

Performance Measurement Performance Target Result 

Participation in NERC / industry 

reliability readiness reviews 

 100% of the Reliability Coordinators 

 Large entities which represent 80% of 

the load served by all entities reviewed 

by NERC 

Target Met. FERC participated in 100% 

of NERC’s Reliability Coordinator 

reviews (5 of 5), and participated in 22 

readiness reviews of large entities which 

represent 94.5% (125,503 MW) of the 

load served by all entities reviewed by 

NERC (132,796 MW). 

Issue final rule on Electric Reliability 

Organization (ERO) certification and 

mandatory reliability standards 

enforcement 

Rule issued by February 4, 2006 

Target Met. Docket No. RM05-30-000; 

Final Rule, Order No. 672, “Rules 

Concerning Certification of the Electric 

Reliability Organization; and Procedures 

for the Establishment, Approval, and 

Enforcement of Electric Reliability 

Standards,” issued February 3, 2006. 

Percentage of new RTOs or ISOs 

performing reliability functions included 

in Orders No. 2000 or No. 888, 

respectively 

100% No new RTOs or ISOs were established 

during the performance period. 

Percentage of merit orders accepting, 

modifying, or rejecting timely filed 

proposals to recover prudently incurred 

reliability costs submitted (including 

time for hearing, ADR, or settlement 

judge participation) 

95% by applicant request date 

Target Met. 100% of the 394 merit 

orders to resolve cost recovery proposals 

for reliability were issued by statutory or 

requested date, as applicable. 

Percentage of merit orders accepting, 

modifying, or rejecting timely filed 

proposals to recover prudently incurred 

safety and security costs submitted 

(including time for hearing, ADR, or 

settlement judge participation) 

95% by applicant request date 

Target Met. 100% of the 20 relevant 

filings (i.e., oil pipelines) were 

completed by the statutory action date. 

Percentage of high- and significanthazard-potential dams inspected 

annually 

100% 100% 

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

all current structural safety standards or 

are undergoing investigation or 

remediation 

100% 100% 

Percentage of qualifying dams that either 

comply with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s) 

100% 100% 

Number of instances of unauthorized 

access to Critical Energy Infrastructure 

Information (CEII) 

No instances Target met. No instances. 

Number of complaints from CEII 

requesters on inability to participate in a 

proceeding due to failure to obtain CEII 

in a timely manner 

None Target met. None. 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 60   

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Resolve Regulatory and Other Challenges to Needed Development 

Issue Alaska Gas Pipeline Reports to 

Congress 

Issue Reports in February and August 

2007 

Target Met. Reports were issued on 

January 31 and August 15, 2007. 

Percentage of pipeline certificate cases 

with no precedential issues completed 

 90% of unprotested cases within 159 

days of filing 

 90% of protested cases within 304 

days of filing 

Targets Met. 

 98% of unprotested cases were 

completed within 159 days of filing. 

 100% of protested cases were 

completed within 304 days of filing. 

Percentage of pipeline certificate cases 

of first impression or containing larger 

policy implications completed 

90% within 365 days of filing 

Target Met. 100% of cases of first 

impression or larger policy implications 

were completed within 365 days of 

filing. 

Percentage of pipeline certificate cases 

requiring a major environmental 

assessment or environmental impact 

statement completed 

90% within 480 days of filing 

Target Met. 94% of cases requiring a 

major environmental assessment or 

environmental impact statement were 

completed within 480 days of filing. 

Percentage of qualifying LNG plants 

inspected during ongoing construction 

activity 

100% of plants inspected every 8 weeks 

Target Met. 100% of qualifying LNG 

plants (6 of 6) where construction was 

occurring were inspected at least every 8 

weeks. 

Percentage of ILP pre-filing study plan 

determinations completed 

85% within 150 days of applicant’s 

filing of the proposed study plan 

Target Met. 90% (9 out 10) ILP prefiling study plan determinations were 

completed within 150 days of 

applicant’s filing of the proposed study 

plan. 

Percentage of infrastructure studies 

completed 

 100% for regional and issue-based 

infrastructure conferences 

 100% for Commission- and 

Congressional-directed studies 

Targets Met. 

 100% of infrastructure studies 

completed for regional and issue-based 

conference. 

 100% of infrastructure studies 

completed for Commission- and 

Congressional-directed studies. 

Percentage of NEPA documents 

completed for projects utilizing the prefiling processes 

85% within 8 months of determining a 

pipeline or LNG facility application 

complete 

Target Met. Of the 18 projects that 

utilized the pre-filing process, 100% had 

final NEPA documents within 8 months 

of filing a complete application. 

Timeliness of filings processed 

containing amendments to nonindependent electric transmission 

provider OATTs 

Within 60 days of filing date or 

applicants’ requested date, whichever is 

later 

Target Met. All 126 amendments to 

non-RTO/ISO OATTs completed within 

60-day statutory timeframe. 

 

Encourage Investment and Effect Timely Cost Recovery 

Timeliness of applications processed for 

incentive rates under section 205 of the 

FPA 

Processed by the statutory deadline for 

rate filings or the applicants’ requested 

date, whichever is later 

Target Met. 100% of the 11 statutory 

incentive rates cases were processed 

within statutory timeframes. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 61   

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Process cost recovery cases within 

reasonable timeframes (including 

prudently-incurred expenses to 

safeguard and enhance the reliability, 

security and safety of the energy 

infrastructure) 

 100% of statutory cases addressed by 

Commission order within statutory 

deadlines 

 95% of certificate cases within 12 

months or applicants’ requested date, 

whichever is later 

 90% of cases set for hearing within 12 

months of briefs opposing exceptions 

Targets Met. 

 100% of all 3,164 statutory items, 

including cost recovery cases, were 

completed within statutory due dates. 

 In certificate work, 97%, or 60 of 62 

cases requiring rate inserts, were 

completed timely. Even in the cases that 

were unavoidably delayed—one due to 

Coast Guard involvement in approving 

LNG facility, and the other subject to 

environmental issues because the 

company did not use the NEPA prefiling process—the rate analyses were 

provided to the lead Office within the 

required time period. 

 

 100% issued within 12 months. 

Establish price volatility baseline By September 30, 2007 

Not Applicable. The Commission 

proposed to establish a price volatility 

baseline. The first step in this process 

was to determine what information was 

available and reasonable to collect. In 

FY 2007, staff reviewed available price 

data and concluded that a price volatility 

baseline was not feasible. Because of 

the lack of available data, this 

performance measure has been 

discontinued. 

Program performance was not 

negatively impacted as a result of not 

establishing a price volatility baseline. 

Establish out-of-merit dispatch baseline By September 30, 2007 

Not Applicable. The Commission 

proposed to establish an out-of-merit 

dispatch baseline. The first step in this 

process was to determine what 

information was available and 

reasonable to collect. In FY 2007, staff 

contacted transmission operators and 

found that their data is inconsistent 

across transmission systems and does 

not allow for meaningful analyses to 

establish this baseline. Because of the 

lack of consistent data, this performance 

measure has been discontinued. 

Program performance was not 

negatively impacted as a result of not 

establishing an out-of-merit dispatch 

baseline. 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 62   

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Assure Reliability of Interstate Transmission Grid 

Percentage of proposed reliability 

standards reviewed 100% 

Target Met. Docket No. RM06-16-000; 

Final Rule, Order No. 693, "Mandatory 

Reliability Standards for the Bulk-Power 

System," issued March 16, 2007, in 

which the Commission approved 83 of 

107 proposed Reliability Standards, and 

directed significant improvements to 56 

of those standards. The Commission 

also required submission of further 

information in order to evaluate the 

adequacy of the remaining 24 standards. 

The initial 83 standards became 

mandatory and enforceable on June 18, 

2007. 

In addition, the Commission approved 8 

regional standards in Docket No. RM07-

11-000; "Order Approving Regional 

Reliability Standards for the Western 

Interconnection and Directing 

Modifications," issued June 8, 2007. 

Develop procedures to review the 

performance of the ERO Complete by March 31, 2007 

Target Met. Procedures were outlined in 

Docket No. RM05-30-000; Final Rule, 

Order No. 672, "Rules Concerning 

Certification of the Electric Reliability 

Organization; and Procedures for the 

Establishment, Approval, and 

Enforcement of Electric Reliability 

Standards," issued February 3, 2006. 

Percentage of NERC / industry 

reliability readiness reviews of 

Reliability Coordinators in which FERC 

participates 

100% 

Target Met. FERC participated in all 4 

of NERC's Reliability Coordinator 

reviews. 

Percentage of load served, included in 

NERC / industry reliability readiness 

reviews, in which FERC participates 

50% 

Target Met. FERC participated in 22 

readiness reviews of large entities which 

represent just over 80% (332,244 MW) 

of the load served by all entities 

reviewed by NERC (414,101 MW). 

Percentage of ERO penalty action 

rulings reviewed to prevent 

inappropriate rulings from going into 

effect by default 

100% 

No activity, as the standards only 

became mandatory on June 18, 2007, 

and no ERO proposed penalties were 

filed in FY 2007. 

 

Protect Safety at LNG and Hydropower Facilities 

Percentage of high- and significanthazard-potential dams inspected 

annually 

100% 

Target Met. 100% of all high and 

significant hazard-potential dams were 

inspected annually. 

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 all high- and 

significant-hazard potential dams meet 

current structural standards or are 

undergoing investigation or remediation. 

Percentage inspected annually: 

 LNG import terminals 

 LNG peak-shaving facilities 

 100% 

 50% 

Targets Met. 

 All 5 of the operating LNG import 

terminals were inspected. 

6 of the 12 peak-shaving facilities 

were inspected. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 63   

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Percentage of LNG facilities that meet 

all current safety standards or are subject 

of a compliance letter 

100% 

Target Met. 100% of LNG facilities met 

all current safety standards or were 

subject to a compliance letter. 

Percentage of EIS documents that 

contain sections addressing safety for 

Hydropower Projects, LNG Facilities, 

Gas Pipeline Projects and Storage 

Facilities 

100% 

Target Met. 100% of EIS documents 

contain sections relating to safety for 

Hydropower Projects, LNG Facilities, 

Gas Pipeline Projects and Storage 

Facilities. 

Control access to Critical Energy 

Infrastructure Information 

No instances of improper access or 

improper denial affecting national 

security or Commission proceedings 

Target met. No instances. 

Percentage of qualifying dams that either 

comply with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s) 

100% 

Target Met. 100% of qualifying dams 

comply with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s). 

Percentage of LNG facility 

authorizations that incorporate 

consultation with all appropriate 

agencies on security related matters 

100% 

Target Met. 100% of LNG facility 

authorizations incorporate consultation 

with all appropriate agencies on security 

related matters. 

 

Incorporate Environmental Considerations into Commission Decisions 

Percentage of final NEPA documents 

issued for ALP/TLP cases: 

 with settlement agreements 

 without settlement agreements 

 85% within 12 months 

 85% within 24 months 

 Target Met. 100% of final NEPA 

documents (5 of 5) were issued within 

12 months for ALP/TLP cases with 

settlement agreements. 

 Target Met. 100% of final NEPA 

documents (16 of 16) were issued within 

24 months for ALP/TLP cases without 

settlement agreements. 

Timeliness of issuing environmental 

licensing requirements 

Licensing responsibility letters sent 

within 45 business days of license 

issuance date 

Target Met. All licensing responsibility 

letters were sent out within 45 business 

days of license issuance date. 

Percentage of qualifying, major, 

onshore-pipeline projects inspected 

during ongoing construction activity 

100% of projects inspected at least once 

every four weeks 

Target Met. Of the 30 pipeline projects 

under active construction in FY 2007, 

100% were inspected at least once every 

four weeks. 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 64   

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. 

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. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 65   

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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. 

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. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 66   

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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. 

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). 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 67   

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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 

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 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 68   

FY 2009 

Performance Measure Performance Target Results 

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. 

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 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 69   

FY 2009 

Performance Measure Performance Target Results 

2009. 

Number of ERO Regional Entity compliance audits in which FERC participates 

At least one in each of the eight regions 

Target met. Participated on 8 Regional 

Entity audits, one in each region, by 

June 25, 2009. 

Percentage of ERO / industry reliability 

readiness evaluations of Reliability 

Coordinators in which FERC participates 

75% 

N/A. The ERO/industry reliability 

readiness evaluations of Reliability 

Coordinators were discontinued in 

FY2009. 

Percentage of load served, included in 

ERO / industry reliability readiness 

evaluations, in which FERC participates 

35% 

Target Met. Participated in 2 readiness 

evaluations which represented 78% of 

load served. 

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

by default 

100% 

Target met. In FY 2009, 35 Notices of 

Penalty covering 83 violations were 

filed. All 35 were reviewed for 

appropriateness of the finding of 

violation and penalty and accepted by 

operation of law, with a public notice 

of each acceptance issued within the 

required period for Commission action. 

Assess Notices of Alleged Violation and 

Sanction received from the ERO 

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

within two weeks of receipt for appropriateness of sanction 

Target met. In FY2009, 149 Notices of 

Alleged Violations and Sanctions 

covering 579 alleged violations were 

submitted through the portals. Each 

was reported on and recorded routinely 

by way of (1) The Overview of 

Reliability Orders, Matters and 

Deadlines Chart, and (2) The Pending 

Case Report prepared by the Division 

of Investigations. 

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

Letter 

Target met. 100 percent (3/3) of 

Regional Entity audits reported to the 

Commission within 120 days. 

Percentage of ERO and Regional Entity 

audit recommendations issued and implemented 90% within 6 months 

Target met. 100 percent (20/20) of 

Regional Entity audit 

recommendations implemented in 6 

months. 

Protect Safety at LNG and Hydropower Facilities

Percentage of high- and significant- -

hazard-potential dams inspected annually 90% 

Target Met. 90% of high- and 

significant- hazard-potential dams 

inspected 

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

all current structural safety standards or 

are undergoing investigation or remediation 

90% 

Target Met. 90% of high- and 

significant hazard-potential dams either 

met all current structural safety 

standards or are undergoing 

investigation or remediation. 

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

Percentage of LNG import terminals 

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

terminals were inspected 

Percentage of qualifying dams that either 

comply with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s) 

90% Target Met. 90% of qualifying dams 

complied with EAP requirements or are 

conducting follow-up action(s) on 

outstanding item(s) 

Control access to CEII 

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

Commission proceedings 

Target Met. No instances. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 70   

FY 2009 

Performance Measure Performance Target Results 

Incorporate Environmental Considerations into Commission Decisions

Percentage of final inspection reports 

completed 75% within 4 months of inspection 

Target Met. 100% of final inspection 

reports completed within 4 months of 

inspection 

Timeliness of issuing environmental 

licensing requirements 

Licensing responsibility letters sent within 

60 days of license issuance date 

Target Met. All licensing 

responsibility letters sent within 60 

days of license issuance date 

Percentage of final NEPA documents 

issued for ALP/TLP cases: ▪ with 

settlement agreements ▪ without 

settlement agreements 

▪ 75% within 12 months of settlement 

filing date 

▪ 75% within 24 months of REA date 

▪ Target Met. 100% within 12 months 

of settlement filing date 

▪ Target Met. 100% within 24 months 

of REA date 

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

ongoing construction activity 

90% of projects inspected at least once 

every four weeks 

Target Met. 97% of qualifying projects 

were inspected at least once every 4 

weeks. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 71   

PERFORMANCE DATA FOR COMPETITIVE MARKETS: FY 2006 - 2009 

FY 2006 

Performance Measurement Performance Target Data Source 

Review and propose revisions to OASIS 

standards By June 30, 2006 

Target Met. Docket No. RM05-5-000; 

Final Rule, Order No. 676, “Standards 

for Business Practices and 

Communication Protocols for Public 

Utilities,” issued April 25, 2006. 

Assess demand response Issue annual report by August 8, 2006 

Target Met. Staff report, “Assessment 

of Demand Response & Advanced 

Metering” (Docket No. AD-06-2-000) 

was delivered to Congress on August 4, 

2006. 

Issue final rule to implement PUHCA 

provisions of EPAct 2005 By January 31, 2006 Target Met. Final rule was issued on 

December 8, 2005. 

Issue rules governing market 

manipulation in electricity and gas 

markets 

By September 30, 2006 

Target Met. The final rule (Order 670) 

was issued January 19, 2006 and an 

order denying rehearing was issued 

March 22, 2006 in Docket Nos. RM06-

3, et al., Final Rule Prohibiting Energy 

Market Manipulation. 

Movement toward competitive markets 

in each region, including greater 

interregional coordination of broader, 

more efficient, and non-discriminatory 

energy markets 

Increase in: 

 new, independent regional 

transmission providers 

 coordination between RTOs or 

between RTOs and neighboring nonmember utilities 

Target Met. Some examples: 

 In order to create a more seamless 

administration between the tariffs of the 

Midwest ISO’s energy markets and the 

non-market operations of Mid-Continent 

Area Power Pool’s (MAPP) members 

that do not belong to the Midwest ISO, 

the Commission approved MAPP’s 

proposal to conform its Available 

Transfer Capability (ATC) calculation 

methodologies to provisions of the 

Seams Operating Agreement between 

MAPP and the Midwest ISO. 

 The Commission approved proposed 

revisions to the SPP/Midwest ISO Joint 

Operating Agreement (JOA) and to the 

Congestion Management Process (CMP) 

which is incorporated in the JOA to 

align them more closely with the JOA 

and CMP of the Midwest ISO/PJM. 

 Action was taken on Midwest ISO 

and PJM and their respective 

transmission owners’ proposed revisions 

to the JOA for allocating to customers in 

each RTO the cost of new transmission 

facilities that are built in one RTO but 

provide benefits to customers in the 

other RTO (the so-called cross-border 

facilities). 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 72   

FY 2006 

Performance Measurement Performance Target Data Source 

Increased presence at RTOs, to improve 

relationships with and knowledge of 

existing RTOs 

Creation and staffing of an office at any 

new RTO within 6 months of 

commencement of operations (including 

establishment of virtual office processes) 

No new RTOs were established during 

the performance period. All existing 

RTOs have either staff on location or a 

virtual office process in effect. 

Percentage of filings to establish RTOs, 

ISOs, or Independent Transmission 

Companies (ITCs) processed 

100% completed within 6 months of 

filing or before applicants’ proposed 

effective date (whichever is later) 

No filings were received to establish 

new RTOs, ISOs, or ITCs during the 

performance period.

RTO / ISO establishment of costeffective market design elements per 

Order No. 2000 

Within three years of commencement of 

operation, each approved RTO or ISO 

will implement (if cost effective): 

 firm transmission rights 

 resource adequacy approaches 

 regional independent grid operation 

 regional transmission planning 

process 

 appropriate market monitoring and 

market power mitigation 

 transparency and efficiency in 

congestion management 

 spot markets to meet customers’ realtime energy needs 

 fair cost allocation for existing and 

new transmission 

Target Met. With the exception of 

Southwest Power Pool (SPP), all 

RTOs/ISOs (PJM, ISO-NE, NY-ISO, 

Midwest ISO, and CAISO) have been 

operational over 3 years and all have 

implemented cost-effective market 

design elements. 

SPP has been operating as an RTO since 

November 1, 2004, and has received 

authorization during FY 2006 to 

commence a real-time energy imbalance 

market, as well as having received 

approvals for its market monitoring and 

mitigation plans. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 73   

FY 2006 

Performance Measurement Performance Target Data Source 

Demonstrable improvements in regional 

competitive market transparency and 

independence 

In each region of the country, there will 

be: 

 RTO adoption of additional marketoriented features, programs or rules 

 improvement of open access tariff to 

reduce entry barriers or eliminate undue 

discrimination 

 increase in the degree of transmission 

independence (ownership or control) 

from generation in regions primarily 

without RTOs 

Target Met. During FY 2006, the 

Commission acted on a number of 

proceedings related to improving 

competitive market transparency and 

independence. 

Some actions by the Commission will 

have nationwide impact. In May 2006, 

the Commission issued a notice of 

proposed rulemaking (NOPR) proposing 

amendments to its regulations and the 

pro forma OATT to ensure that 

transmission services are provided on a 

basis that is just, reasonable and not 

unduly discriminatory or preferential. 

The NOPR aims to strengthen the OATT 

and address deficiencies that have 

become apparent since its adoption 10 

years ago, particularly in the areas of 

available transfer capability calculation 

and transmission planning. 

In addition, the Commission approved 

four proposals by vertically integrated 

utilities (Duke, MidAmerican, Entergy, 

and Louisville Gas & Electric) to 

contract with an independent entity to 

serve as the independent coordinator of 

transmission (ICT). The ICT performs 

oversight over these utilities’ 

transmission systems, including 

authority to administer utilities’ OATT. 

Other actions taken on proceedings 

related to establishing new or revised 

market rules, rule changes in RTOs, and 

increased transmission independence 

were region-specific. For example: 

East 

In the New England area, the 

Commission issued an order accepting a 

proposal filed by ISO-NE and NEPOOL 

which included, most significantly, the 

addition of a locational component to the 

existing Forward Reserve Market and 

the coordination and optimization of 

pricing of energy and reserves in real 

time to be effective October 1, 2006, or 

later date. 

In addition, the Commission approved a 

contested settlement that provided an 

alternative to the Locational Installed 

Capacity mechanism called the Forward 

Capacity Market (FCM). The 

Commission found that the FCM, in 

conjunction with an interim mechanism, 

will provide the revenues needed by 

generators to preserve reliability in New 

England. The Commission also found 

that the forward looking nature of the 

FCM will provide appropriate price 

signals to investors when new 

infrastructure resources are necessary 

with sufficient lead time to allow that 

infrastructure to be put in place before 

reliability is sacrificed. 

(Continue on next page) 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 74   

FY 2006 

Performance Measurement Performance Target Data Source 

(continued from previous page) 

Demonstrable improvements in regional 

competitive market transparency and 

independence 

(continued from previous page) 

In each region of the country, there will 

be: 

 RTO adoption of additional marketoriented features, programs or rules 

 improvement of open access tariff to 

reduce entry barriers or eliminate undue 

discrimination 

 increase in the degree of transmission 

independence (ownership or control) 

from generation in regions primarily 

without RTOs 

(Continued from previous page) 

With respect to the PJM area, the 

Commission issued an initial order on 

PJM’s proposed reliability pricing model 

(RPM) designed to replace its existing 

capacity obligation rules. The 

Commission found the existing capacity 

rules to be unjust and unreasonable to 

ensure energy resources to meet 

reliability responsibilities, and 

established further procedures to resolve 

the remaining issues. At the same time, 

the Commission encouraged the parties 

to continue to seek a negotiated 

resolution, and offered the 

Commission’s settlement judge 

procedures to facilitate these 

discussions. 

Central 

For the Midwest ISO region, the 

Commission approved the continuation 

of mitigation in Broad Constrained 

Areas; action on proposed revisions to 

real-time revenues sufficiency guarantee 

(RSG) payments; approval of revised 

rules defining less-than-seasonal 

financial transmission right (FTR) 

entitlements for network resources; 

approval of contractual arrangements 

related to the market monitor and 

balancing authorities; as well as offering 

guidance on Midwest ISO’s future plans 

to implement ancillary service markets 

and an energy-only market. 

For the SPP region, the Commission 

provided guidance and approvals related 

to SPP’s proposal to establish a real-time 

energy imbalance market. 

Regarding revisions to the OATT, the 

Commission approved various revisions 

to the Midwest ISO’s creditworthiness 

provisions, reactive power requirements, 

as well as changes to the Midwest ISO 

pro forma interconnection agreement 

which reflect improvements or regional 

variations needed based upon its 

operational experience, including new 

pricing provisions. 

West 

In September 2006, the Commission 

conditionally approved the CAISO 

Market Redesign and Technology 

Upgrade (MRTU) market reforms and 

enhancements, such as a financially 

binding day-ahead market and more 

effective congestion management 

system. Elements of MRTU are 

intended to fix market design flaws, 

enhance reliability, better protect 

wholesale customers from price 

volatility and gaming, incorporate priceresponsive demand in the markets, and 

encourage construction of new 

resources. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 75   

FY 2006 

Performance Measurement Performance Target Data Source 

Percentage of section 203 applications 

processed 

98% completed within 90 days of the 

comments filing date 

Target Met. 100% of the 145 section 

203 corporate filings were processed by 

target completion dates in FY 2006. 

Issue final rule on RTO and ISO 

accounting to improve oversight of RTO 

and ISO costs 

By January 31, 2006 

Target met. A final order on RTO 

accounting and financial reporting was 

issued on December 16, 2005 in Docket 

RM04-12-000, Order No. 668. 

Percentage of market-based rate filings 

processed 

100% of new filings within 60 days of 

filing date 

Target Met. 100% of the 534 marketbased rate filings were completed by the 

targeted deadline in FY 2006. 

Percentage of competitive energy 

markets and market institution cases set 

for hearing completed according to the 

established schedule 

 75% of Track I cases in 29.5 weeks 

 75% of Track II cases in 47 weeks 

 75% of Track III cases in 63 weeks 

 There were no Track I cases 

 87% of Track II cases in 47 weeks 

 There were no Track III cases 

Percentage of competitive energy 

markets and market institution cases set 

for hearing that achieve partial or 

complete consensual agreement 

75% 100% 

Percentage of applications filed by 

RTOs and ISOs to revise market rules to 

not inhibit demand response processed 

100% within statutory deadlines

Target Met. The Commission processed 

all 5 filings involving demand response 

enhancements within the statutory 

deadlines: 

 PJM submitted agreements to enhance 

demand response in the PJM region in a 

number of ways, including allowing 

demand resources to participate in 

PJM’s ancillary services market by 

bidding into the PJM reserve markets. 

 ISO-NE’s Ancillary Services Market 

(ASM) Phase II will include measures 

allowing the owners of demand 

resources to bid their resources directly 

into the energy and reserve markets on 

an equal footing with generating 

resources. This change will establish the 

supporting market infrastructure that is 

needed to develop fully the potential for 

demand participation in the wholesale 

markets. 

 NYISO’s filing eliminated the sunset 

dates for NYISO’s Day-Ahead Demand 

Response Program and its Emergency 

Demand Response Program. 

 ISO-NE’s proposal to establish a 

demand response reserve pilot program 

to test whether certain resources can 

reliably provide 30-minute and 10-

minute Operating Reserve services. 

 CAISO’s MRTU tariff provides loads 

with demand response capability the 

opportunity to participate in the CAISO 

day-ahead, real-time, and ancillary 

services markets under comparable 

terms as supply. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 76   

FY 2006 

Performance Measurement Performance Target Data Source 

Support development of robust customer 

demand-side participation in energy 

markets in areas where it does not exist 

Meet at least annually to discuss demand 

response issues with appropriate state 

commission officials 

Target Met. Held technical conference 

on demand response in January 2006, 

where state representatives, including 

several state commissioners from all 

regions of the U.S., participated on 

panels. Met with NARUC officials in 

January 2006 to discuss Commission 

demand response report and seek their 

assistance in the FERC demand response 

and advanced metering survey. Met in 

April 2006 with Midwestern state 

officials, primarily Illinois 

Commissioners, on the development of a 

regional demand response initiative. 

Discussed demand response report with 

state officials and Commissioners at 

various events including the NARUC 

Winter Meeting in February 2006 and an 

EPRI Summer Seminar on Energy 

Efficiency and End-Use Technologies in 

August 2006. 

Percentage of proposed NAESB 

business practice standards rulemakings 

completed 

 100% of non-controversial 

rulemakings within 9 months 

 100% of controversial rulemakings 

within 12 months 

Target Met. During FY 2006, the 

Commission issued a final rule adopting 

the Wholesale Electric Quadrant’s 

controversial first set of business 

practice and communication standards 

within 12 months of receiving NAESB’s 

complete proposal. Docket No. RM05-

5-000; Final Rule, Order No. 676, 

“Standards for Business Practices and 

Communication Protocols for Public 

Utilities,” was issued April 25, 2006. 

Percentage of initial orders completed on 

third-party complaints 

 80% within 60 days 

 95% within 180 days 

 60-day target not met. 49% (28 of 57 

{1 projected}) issued within 60 days. 

This was an internal deadline, not 

statutorily based, and did not have a 

negative impact on operations. 

 180-day target met. 95% (49 {1 

projected} of 51 {1 projected}) issued 

within 180 days. 

Percentage of initial orders completed on 

fast track third-party complaints 90% within prescribed time frame Target Met. One filing was received and 

completed on time. 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Employ Best Practices In Market Rules 

Timeliness of review of proposed 

market rules 

By the statutory due date or the 

applicants’ requested date, whichever is 

later 

Target Met. All 358 filings from PJM, 

ISO-NE, NYISO, NEPOOL, SPP, 

Midwest ISO, and California ISO were 

acted on by statutory due dates. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 77   

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Percentage of proposed NAESB 

business practice standards rulemakings 

completed 

 100% of unopposed rulemakings 

within 9 months 

 100% of all rulemakings within 12 

months 

Targets Met. The Commission issued 

two NAESB business practice standards 

rulemakings during the fiscal year, both 

completed within 9 months of issuance 

of the notice of proposed rulemaking, as 

follows: 

Docket No. RM05-5-003; NOPR issued 

February 20, 2007; Final Rule, Order 

No. 676-B, "Standards for Business 

Practices and Communication Protocols 

for Public Utilities," issued April 19, 

2007; and 

Docket Nos. RM96-1-027 and RM05-5-

001; NOPR issued October 25, 2006; 

Final Rule, Order 698, "Standards for 

Business Practices for Interstate Natural 

Gas Pipelines; Standards for Business 

Practices for Public Utilities," issued 

June 25, 2007. 

Timeliness of applications processed on 

requests to encourage demand response 

in organized markets 

Within 60 days of filing date or 

applicants’ requested date, whichever is 

later 

Target Met. All 15 filings were acted on 

within 60-day statutory due dates. 

 

Reduce Barriers to Trade Between Markets and Among Regions 

Timeliness of review of filings to reduce 

or eliminate seams between organized 

markets 

By the statutory due date or the 

applicants’ requested date, whichever is 

later 

Target Met. All 10 filings dealing with 

seams issues were completed by 

statutory due dates. In addition, two 

major orders were issued related to the 

California ISO's Market Redesign 

Technology Update (MRTU) addressing 

seams issues between CAISO and 

neighboring systems in the Western 

Interconnect. A technical conference 

was held on December 15, 2006, in 

Phoenix, Arizona, to address these 

western seams issues; and on March 29, 

2007, a second conference was held in 

Washington, DC, to address eastern 

seams issues. 

Assure Proposed Mergers and Acquisition Are in the Public Interest 

Percentage of merger authorizations 

upheld by the courts 90% 

Target met. 100% of merger 

authorizations have been upheld by the 

courts. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 78   

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Percentage of merged applicants 

reporting on compliance with merger 

conditions imposed by the Commission 

100% 

Target Met. 100% of the 9 merger 

applicants reported on compliance, if or 

as applicable, with the four types of 

conditions—summary, notice of 

consummation, proposed accounting 

entries, and additional conditions—

imposed by the Commission. It should 

be noted that most of the “additional” 

conditions only require compliance in 

the event that the merger applicants 

subsequently take some specific action. 

For example, in 5 of the 9 mergers, the 

Commission imposed a “hold-harmless” 

condition, requiring that if the applicants 

seek to recover merger-related costs 

through jurisdictional rates, they must 

show offsetting merger-related cost 

savings. As of yet, none of the 

applicants have sought to recover any 

merger-related costs, so they haven’t 

needed to make a compliance filing. 

Timeliness of processing applications 

for the disposition, consolidation, or 

acquisition under section 203 of the 

FPA, of jurisdictional facilities 

(including transactions involving certain 

transfers of generation facilities and 

public utility holding company 

transactions, and issues of cross 

subsidization or encumbrances of utility 

assets) 

 Within 180 days for non-major 

mergers 

 Within 360 days for major mergers 

Targets Met. 

 100% of the 100 non-major 

dispositions were completed within 180 

days. 

 100% of the 9 major merger cases 

were completed within 360 days. 

 

Address Market Power in Jurisdictional Wholesale Markets 

Revise open access transmission tariff Issue final rule by June 30, 2007 

Target Met. Docket Nos. RM05-17-000 

and RM05-25-000; Final Rule, Order 

890, "Preventing Undue Discrimination 

and Preference in Transmission 

Service," issued February 16, 2007. 

Timeliness of processing initial marketbased rate filings 

Within 60 days of filing date or by 

applicant’s requested date, whichever is 

later 

Target Met. 100% of the 167 initial 

market-based rate applications were 

completed by the established target date. 

Develop generation market power 

screens for electric market based rates Issue final rule by June 30, 2007 

Target Met. Docket No. RM04-7-000; 

Final Rule, Order 697, "Market-Based 

Rates for Wholesale Sales Of Electric 

Energy, Capacity And Ancillary 

Services By Public Utilities," issued 

June 21, 2007. 

Act timely on complaints 

80% within 60 days or, for fast-track 

cases only, within the designated 

timeframe 

Target not met; 78%. The performance 

goal was set at an approximate target 

level, and the deviation from that level is 

slight. There was no effect on overall 

program or activity performance. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 79   

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. 

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. 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 80   

FY 2008 

Strategy 

Performance Measurement Performance Target Results 

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 

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 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 81   

FY 2009 

Performance Measure Performance Target Results 

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. 

PERFORMANCE DATA FOR ENFORCEMENT: FY 2006 - 2009 

FY 2006 

Performance Measurement Performance Target Data Source 

Reduce duplicative information requests 

through coordination with CFTC 50% reduction by September 30, 2006 

Target met. Investigations coordinated 

with CFTC on all known cases of joint 

interest and there were no known 

duplicative information requests. 

Timeliness of verification of EQR 

submissions Within 10 business days of submission Target met. Verified within 10 business 

days. 

Review EQR submissions for 

completeness and contact companies 

that make up at least 80% of reported 

revenue for incomplete submissions 

Within 10 business days of submission 

Target met. Contacted 100% of 

companies in the EQR database that had 

filed incomplete submissions within 10 

business days of filing deadline. 

Conduct follow up reviews of companies 

that make up at least 80% of reported 

revenue on exercise of market power or 

market manipulation 

Within 60 days of final submission 

Target Met. Conducted follow-up 

reviews of EQR filers that make up at 

least 80% of reported revenue for the 

third quarter of 2005 for market 

manipulation or exercise of market 

power within 60 days of final 

submission. 

Timeliness of reporting to Commission 

on important market events 

Analysis complete within 60 days of 

event 

Target Met. Provided the Commission 

with seven presentations at open 

Commission meetings, 26 Weekly 

Market Reviews beginning in April 2006 

reviewing weekly market developments 

and performance, and seven end-of-day 

summaries on market conditions during 

heat waves in the summer of 2006. 

Percentage of Hotline calls resolved 60% within 2 weeks of initial contact 

Target Met. Since October 1, 2005, 

80% of hotline calls were resolved 

within two weeks of initial contact. 

Percentage of non-environmental, nontribal ADR processes (agreed to by 

parties) concluded 

75% within 120 days (convening and 

process) 

Target Met. The DRS completed 25 

cases in FY 2006 that were nonenvironmental and non-tribal, and in 

which the parties agreed to pursue an 

ADR process. Of these, 22 were 

completed within 120 days after being 

referred the DRS (88%) 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 82   

FY 2006 

Performance Measurement Performance Target Data Source 

Number of ADR requests and referrals 

to the Dispute Resolution Service 

Minimum number of requests and 

referrals equal to FY 2004 

Target Met. The DRS addressed 70 new 

requests or ongoing cases from a 

previous year, involving gas, electric, 

hydroelectric, oil, and pipeline matters. 

This represents a 29.6% increase over 

FY 2004 

Favorable Dispute Resolution Service 

customer satisfaction 80% customer satisfaction rate 

Target Met. For training given by DRS, 

customer satisfaction rate was 89%. For 

casework concluded in FY 2006, all 

participants who completed evaluations 

gave the DRS staff favorable comments, 

for a satisfaction rate of 100%. 

Percentage of market manipulation cases 

set for hearing completed according to 

the established schedule 

 75% of Track I cases in 29.5 weeks 

 75% of Track II cases in 47 weeks 

 75% of Track III cases in 63 weeks 

There were no Track I, II, or III cases 

Percentage of market manipulation cases 

set for hearing that achieve partial or 

complete consensual agreement 

75% 100% 

Timeliness of reporting to the 

Commission on operational audits 

85% reported to the Commission within 

120 days of Commencement Letter 

Target Met. Since the beginning of the 

rating year, 100% of operational audits 

were reported to the Commission within 

120 days of Commencement Letters. 

Percentage of operational audit 

recommendations issued and 

implemented 

85%

Target Met. 100% of operational audit 

recommendations have been issued and 

implemented. 

Timeliness of reporting to the 

Commission on financial audits 

85% reported to the Commission within 

120 days of Commencement Letter 

Target Met. Since the beginning of the 

rating year, 100% of financial audits 

were reported to the Commission within 

120 days of Commencement Letters. 

Percentage of financial audit 

recommendations issued and 

implemented 

85%

Target Met. 100% of financial audit 

recommendations have been issued and 

implemented. 

Timeliness of reporting to the 

Commission on Standards of Conduct 

compliance audits 

85% reported to the Commission within 

120 days of Commencement Letter 

No Standards of Conduct compliance 

audits were initiated during FY 2006. 

Percentage of Enforcement 

investigations completed 75% within one year 

Target Met. From October 1, 2005 to 

the present, 88% of cases were closed 

within one year (84% within 9 months 

and 60% within 6 months). 

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

 

Identify and Remedy Problems with Structure and Operations In Energy Markets 

Timeliness of verification of EQR 

submissions Within 10 business days of submission Target met. 100% verification within 10 

business days. 

Evaluate and improve the usefulness of 

EQR data 

 Issue a data dictionary for all 

undefined fields with restricted entries 

 Review the current EQR data 

structure and develop written 

recommendations for improvements 

Targets met. Issued Final Order in 

Docket No. RM01-8-006 on September 

24, 2007 which defined all EQR fields 

and improved EQR data structure. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 83   

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

Number of RTO and ISO MMU 

performance metrics Increase over FY 2006 

Target met. One new RTO and ISO 

MMU performance metric was 

developed in FY2007 (increasing the 

number of performance metrics from 11 

in FY 2006 to 12 in FY 2007). 

Timeliness of initiating or deciding 

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

Percentage of organized markets 

reviewed and market structure and 

operations problems or deficiencies 

identified 

100% reviewed and reports completed 

identifying market problems or 

deficiencies, if any, and recommended 

solutions 

Target met. 100% of organized markets 

reviewed in daily oversight meetings, 

including all RTO/ISO markets, 

NYMEX, ICE and other relevant 

markets. Results of continuing review 

communicated to Commissioners via 

Weekly Reports and to the public via the 

Market Oversight website and the State 

of the Markets Report. Seven major 

structure and operations problems were 

identified. 

Timeliness of actions on problems or 

discrepancies identified in reviews of 

organized markets 

With 6 months of completed report

Target met. Addressed all seven 

identified issues within six months of 

identification. Issues included: prices 

over $400 in West, lack of transparency 

for intrastate pipelines, lack of 

transparency for natural gas sales and 

purchases, need to clarify role of MMUs 

in RTOs, PJM/MISO transmission 

issues, CenterPoint data reporting, and 

Rockies Gas Prices. 

Publish annual assessment of 

infrastructure and market conditions for 

each region 

Complete by June 30, 2007 

Target met. The State of the Markets 

Report was completed in February 2007 

and detailed market and infrastructure 

issues for the country as a whole. In 

addition the Seasonal Assessment was 

published for electric power on May 17, 

2007, specifically addressing summer 

2007 and the new Market Oversight 

website provides updates and detailed 

information for each region on a 

monthly basis. 

Establish Clear and Fair Processes 

Improve Forensic Audits and 

Investigations information technology 

tools 

Implement capability to search e-mails 

and voice recordings by June 30, 2007 

Target met. The capability to search 

voice recordings was implemented 

beginning in September 2006 and the 

capability to search e-mails was 

implemented beginning in August 2006. 

Improve Forensic Audits and 

Investigations capabilities 

90% of enforcement and compliance 

staff participate in forensics training and 

interviewing skills by June 30, 2007 

Target met. 95% of enforcement and 

compliance staff received training on 

forensic interviewing and auditing. 

Classes were held in August 2005 and 

May 2006. 

Timeliness of reporting to the 

Commission on operational audits 

100% reported to the Commission 

within 120 days of Commencement 

Letter 

Target met. 100% of operational audits 

(24 out of 24 from 10/1/06 – 9/30/07) 

were reported to the Commission within 

120 days of the Commencement Letter. 

Percentage of operational audit 

recommendations issued and 

implemented 

90% 

Target met. 100% of operational audit 

recommendations issued were 

implemented within 6 months. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 84   

FY 2007 

Strategy 

Performance Measurement Performance Target Data Source 

Timeliness of reporting to the 

Commission on financial audits 

100% reported to the Commission 

within 120 days of Commencement 

Letter 

Target met. 100% of financial audits 

(43 out of 43 from 10/1/06 – 9/30/07) 

were reported to the Commission within 

120 days of the Commencement Letter. 

Percentage of financial audit 

recommendations issued and 

implemented 

90% 

Target met. 100% of financial audit 

recommendations issued were 

implemented within 6 months. 

 

Conduct Investigations Promptly and Impose Penalties Where Appropriate 

Percentage of enforcement 

investigations completed 75% within one year of initiation 

Target met. 94.8% of investigations 

were closed within a year of being 

initiated. 

Percentage of Hotline calls resolved 70% within 2 weeks of initial contact 

Target met. 75% of Hotline calls were 

resolved within 2 weeks of initial 

contact. 

 

Encourage Self-Policing and –Reporting of Violations 

Percentage of regulated entities audited 

to ensure internal compliance programs 

and processes are in place 

85% of regulated entities included in 

annual audit plan 

Target met. 95% of regulated entities 

included in the annual audit plan were 

audited (74 out of 78). 

Timeliness of responses to regulated 

entities seeking guidance and 

clarification on compliance issues 

Within 60 days 

Target met. Responded to 100% of 

regulated entities seeking guidance and 

clarification on compliance issues within 

60 days. 

Timeliness of completing 

recommendations on compliance issues 

raised by regulated entities 

Within 180 days, where Commission 

action is required 

Target met. 100% of recommendations 

to the Commission (where Commission 

action was required) were completed 

within 180 days of completing an 

investigation originated by a self report. 

Timeliness of reporting on compliance 

issues raised by regulated entities Reports completed monthly 

Target met. The Pending Case Report is 

issued at the end of each month and 

reports on compliance issues (i.e., self 

reports) raised by regulated entities. 

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. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 85   

FY 2008 

Strategy 

Performance Measure Target Results 

Complete transition of consolidated 

reporting to a web strategy Complete by June 30, 2008 

Target Met. The transition of this web 

strategy was completed in March 2008 

when the State of the Markets report was 

published to the Oversight page 

(http://www.ferc.gov/marketoversight/market-oversight.asp) on the 

external FERC website. 

Establish clear and fair processes 

Apply current clear and fair processes to 

investigations during the fiscal year 

Provide recommendations to the 

Commission for each proposed remedy 

and penalty with clear and consistent 

criteria 

Target met. The Commission was 

provided with a written memo and 

recommendations for each of the six 

settlements approved in FY 2008. 

Develop and provide further guidance to 

the industry on FERC’s expanded 

penalty authority 

By September 30, 2008 

Target met. The revised Policy 

Statement on Enforcement was issued on 

May 15, 2008. 

Timeliness of reporting to the 

Commission on operational audits 

Within 120 days of the Commencement 

Letter Target Met. 100% (30 out of 30) 

Percentage of operational audit 

recommendations issued and 

implemented 

90% within 6 months Target Met. 99% (94 out of 95) 

Timeliness of reporting to the 

Commission on financial audits 

Within 120 days of the Commencement 

Letter Target Met. 100% (37 out of 37) 

Percentage of financial audit 

recommendations issued and 

implemented 

90% within 6 months Target Met. 100% (23 out of 23) 

Conduct investigations promptly and impose penalties where appropriate 

Timeliness of initiating or deciding 

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

days. 

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. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 86   

FY 2008 

Strategy 

Performance Measure Target Results 

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.

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.
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 87   

FY 2009 

Performance Measure Performance Target Results 

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.

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. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 88   

PERFORMANCE DATA FOR SUPPORTING INITIATIVES: FY 2006 - 2009 

FY 2006 

Performance Measurement Performance Target Data Source 

Percentage of summer interns hired into 

permanent positions 30% 

Target Not Met. 14.3% of summer 

interns eligible to be rehired accepted 

offers of permanent employment. 

Conversions of summer interns have 

steadily declined since its high in 2003 

with 33%. As EPAct of 2005 

requirements have evolved, the need for 

skill sets not represented in the summer 

intern population has dictated hiring 

from other sources. This measure is 

omitted in 2007 and reduced in 2008 to 

20%. 

Implement entry-level Professional 

Development Program Complete by September 30, 2006 

Target Met. FERC Entry-Level 

Retention Program distributed to 

Program Offices in September 2006. 

Percentage of minorities among seniorlevel positions (GS-14, GS-15, SL, and 

SES positions) 

Increase over FY 2005 

Target Met. Percentage of minorities 

among senior-level positions increased 

by 1% over FY 2005. 

Implement Commission-wide Business 

Requirements guidelines Complete by September 30, 2006 

Target Met. Commission-wide Business 

Requirements Guidelines distributed to 

the Training Council in September 2006 

Reliability of IT infrastructure 99% network availability rate Target Met. 

FISMA compliance according to the 

Putnam scorecard Grade of “A” 

Target Met. FERC received a grade of 

an "A" based on the Putnam scorecard 

for its most recent FISMA report which 

ended September 30, 2006. 

Integrate the Business Plan, CPIC 

process, and IT architecture into the 

Commission’s Enterprise Architecture 

Complete by September 30, 2006 

Target Met. DCIO's current CPIC 

process requires all requests to map to 

the FERC Business Plan. Pursuant to 

the CPIC process Information 

Technology (IT) projects are approved 

or denied based on a number of criteria 

one being whether or not it supports the 

Commission's mission. Approved IT 

projects generate a Control Board action 

producing document. The data from the 

approved CCN is used to update the IT 

architecture which is entered into the 

Commission's Enterprise Architecture 

through the use of the Metis tool. 

Percentage of approved IT initiatives 

with supporting documentation per the 

Commission's CPIC process 

100% 

Target Met. The CPIC Investment 

Review Board approved 21 projects of 

which all 21 went through the CPIC 

review process. Therefore, 100% of the 

approved IT projects went through the 

CPIC approval process. 

Establish earned value management 

schedule and cost performance indices 

for all major projects 

Complete by September 30, 2006 

Target Met. As implemented in FERC 

Capability Maturity Model Integration 

level 2 (CMMI-2) policies and 

procedures, EVM is used to measure 

progress on major projects and major 

phases of multi-phased projects. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 89   

FY 2006 

Performance Measurement Performance Target Data Source 

Develop and implement automated 

Business plan Complete by September 30, 2006 

Target Not Met. Though Software 

development for Phase 2 of the Activity 

and Tracking Management System 

(ATMS) has been completed, the target 

was not met because extensive testing of 

Phase 2 due to integration with other 

eGovernment systems will push 

deployment to February 2007. Though 

Phase 2 will support business plan 

reporting that is integrated with the HR 

time reporting system (MAPS), that 

reporting will depend on requisite 

information (e.g. proper use of time 

reporting codes, MAPS data, etc.) input 

by FERC's program and other offices. 

And since full automation will require 

Commission-wide deployment (Phases 3 

and 4) and additional reporting 

requirements definition and software 

development, the target will not be fully 

met until ATMS Phase 4. Since manual 

processes for business planning will 

remain in place until they are replaced 

by an automated Business plan, there is 

no impact on operations or program 

performance. 

Percentage of qualified-procurements 

that are performance-based 100% 

Target Met. Of the 676 actions awarded 

during the period, a total of 78 actions 

were identified as performance-based. 

All 78 of these actions were awarded 

under performance-based contracts. 

Percentage of qualified-procurements 

that are advertised on-line 100% 

Target Met. Of the 676 actions awarded 

during the period, a total of 4 actions 

qualified for on-line advertisement, and 

all 4 actions were advertised on-line 

with Federal Business Opportunities 

(fedbizops.) 

Percentage of total procurement dollars 

awarded to small, women-owned, and 

minority businesses 

5% increase over FY 2005 

Target Met. In FY 2005, the 

Commission awarded 22% of its total 

procurement dollars to small, womenowned and minority businesses. In FY 

2006, the Commission awarded 34% of 

its total procurement dollars to these 

entities which constitutes a 12% increase 

over the FY 2005 performance level. 

Percentage of invoices paid via 

electronic funds transfer 99% 

Target Met. During FY 2006, the 

Commission paid 99% of its invoices via 

EFT. 

Percentage of payments in compliance 

with Prompt Payment Act deadlines 100% 

Target Not Met. During FY 2006, the 

Commission processed 94% of its 

payments in compliance with Prompt 

Payment Act deadlines. The primary 

cause was the Commission's acceptance 

of invoices during the FY 2006 

Continuing Resolution (October - 

December) which could not be paid. 

Since January, the Commission has 

processed 98% of its payments in 

compliance with Prompt Payment Act 

deadlines. 

Percentage of payments made without 

error 100% 

Target Not Met. During FY 2006, the 

Commission made 99% of its payments 

without error. The failure to meet this 

target did not have an adverse affect on 

overall program performance. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 90   

FY 2006 

Performance Measurement Performance Target Data Source 

Timeliness of collecting accounts 

receivable 90% of invoices collected by due dates 

Target Met. During FY 2006, the 

Commission collected 94% of its invoice 

balances by the stated due date. 

Complete and accurate annual financial 

statements 

Unqualified opinion on audited financial 

statements Target Met 

Percentage of filings capable of being 

received electronically 95% 

Target Not Met. 42% of all document 

types are currently capable of being 

received electronically. Meeting the 

target has been delayed because of two 

primary factors: 

1) The Commission has been 

responsive to industry feedback 

regarding the most efficient way for 

tariff filings to be filed electronically 

and has extended the prototyping and 

discussion of proposed solutions; and 

2) The Commission has delayed to 

improve infrastructure (supporting 

database, storage, server, and disaster 

recovery infrastructure). 

To mitigate the effects of the delay the 

Commission encourages the filing of 

non-eFiling-capable documents on 

digital media (CD, DVD); routinely 

accepts non-eFiling-capable documents 

electronically on an exception basis 

when requested by filers; and performs 

OCR and full-text indexing on 

documents submitted on paper. In 

addition, the Commission is actively 

planning and gathering requirements for 

an eFiling system release that will meet 

the target. Given the mitigation efforts, 

there have been no negative impacts on 

program performance or operations. 

Percentage of Commission orders 

approved during open meetings issued 99% within 5 business days 

Target Met. 321 agenda items were 

approved in open meeting during the 

rating period. All but 2 were issued 

within 5 business days. 

Percentage of Commission orders 

approved by notational vote issued 

99% within 1 business day of adoption 

date 

Target Not Met. 933 agenda items were 

approved through the notational process. 

40 items were issued after one day of 

adoption date; these were all issued on 

the following business day. Percentage 

is 96%. This is a remarkable 

accomplishment considering the 

significant increase in notational items 

during this appraisal period and the 

target did not change from last appraisal 

period. This did not have a negative 

impact on operations. 

Percentage of legally required notices 

issued 

95% within 3 business days of being 

posted on eLibrary 

Target Not Met. This measure includes 

notices for electric rate filings prepared 

by the Secretary; notices for other 

industries are prepared by program 

offices. Number of electric rate notices 

during the appraisal period is 2,667. Of 

these, 632, or 76%, were issued three 

days after filing was posted on eLibrary. 

This target was not met due to staff 

shortages. However, no Commission 

proceeding or action was negatively 

affected. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 91   

FY 2006 

Performance Measurement Performance Target Data Source 

Percentage of press releases on 

important agency actions issued 95% within 1 hour of order being issued 

Target Met. In FY 2006, 90 out of 92 or 

97.8% of press releases were issued 

within 1 hour of action being taken. 

Percentage of responses to public 

inquiries 

 60% within 3 business days 

 100% within 5 business days 

Target Met. In FY 2006, OEA 

responded to approximately 2,800 public 

inquiries. Over 90% of these inquiries 

were responded to within 1 business day 

of receipt. All public inquiries were 

responded to within 5 business days. 

Percentage of agency actions and timesensitive content posted on the FERC 

Internet Website 

95% within 1 hour of order being issued 

Target Met. In FY 2006, 3,159 of 3,201 

or 98.7% of important agency actions 

were posted on the Commission’s 

internet website within 1 hour of 

issuance. 

Timeliness of notices to NEB (Canada) 

and CRE (Mexico) of FERC activities 

pursuant to Memorandum of 

Understanding 

Within 1 business day 

Target Met. The NEB and CRE are 

routinely notified of significant 

Commission activities that impact their 

respective countries through emails with 

summaries and links to these orders 

within one business day of the order 

being issued.

Timeliness of regional hearings or 

conferences email notifications sent to 

State officials and Governors 

Within 1 business day No regional hearings/conferences took 

place during the review period. 

Submit FY 2005 Annual Report to 

Congress Complete by June 30, 2006 

Target Not Met. FY 2005 Annual 

Report has not been sent to Congress. 

The target was not met due to a 

significant change in the format of the 

Annual Report to improve the overall 

product by making it more targeted to 

the audience groups. The decision to reformat the Annual Report to track the 

agency’s Strategic Plan resulted in a 

significantly more time-consuming 

review process and an extended period 

for obtaining the content for the Annual 

Report. There were no negative impacts 

on operations. The process for the FY 

2006 Annual Report has already been 

initiated and the expectation is that the 

target will be met. 

Submit FY 2005 international exchange 

and training activity data to U.S. 

Department of State 

Complete by April 1, 2006 

Target Met. FY 2005 international 

exchange and training activity data was 

sent to the U.S. Department of State in 

March 2006. 

Submit FY 2005 FOIA Annual Report to 

Department of Justice Complete by February 1, 2006 

Target Met. FY 2005 FOIA Annual 

Report to the Department of Justice was 

submitted on January 27, 2006. 

Submit FY 2005 Information Quality 

Agency Annual Report to OMB Complete by January 1, 2006 

Target Met. FY 2005 Information 

Quality Agency Annual Report was 

submitted to OMB prior to January 1, 

2006. 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 92   

FY 2007 

Performance Measurement Performance Target Data Source 

Develop and implement a competencybased requirements framework Complete by January 31, 2007 

Target Met. Framework developed in 

January, 2007. Implementation ongoing 

with mainstream occupations. 

Percentage of women and/or minorities 

among all positions Increase over FY 2006 

Target Met. FY 2007 percentage for 

women was 52.9%. Increased 

percentage over FY06 by 8% (FY 2006 - 

44.5%). 

FY 2007 percentage for minority women 

was 20.6%. Increased percentage over 

FY06 by 1.1% (FY 2006 – 19.5%). 

Improve retention ratio of entry-level 

new hires Increase FY 2006 ratio by 10% 

Target Met. Retention ration for FY 

2007 hires was 100% (FY 2006 

percentage was 95%). 

Implement workforce planning tools Complete by September 30, 2007 

Target Met. Implemented Hiring Gap 

Spreadsheet and Personnel Status 

Report. Continue to prepare and publish 

the Human Capital Plan. 

Timeliness of submitting Fair Act 

Inventory to OMB per Circular A-76 

requirements 

Complete by June 30, 2007 Target Met. FY 2007 FAIR Act was 

submitted to OMB 6/30/07. 

Customers are satisfied with the use of 

eGovernment initiatives to interact with 

FERC 

90% 

Target Met. The customer satisfaction 

level for FERC eGov Services exceeds 

96% based on data collected from the 

external users surveys. 

Federal FTE time is mapped through 

systems to workload and strategic goals 

and objectives 

Fully implemented by September 30, 

2007 

Target Not met. With the deployment of 

ATMS Phase 2 in February FY07 the 

following offices are fully able to map 

workload to strategic goals and 

objectives using an enterprise-wide 

system: OAL, OED, OGC, and OEMR 

(now OEMR and OER). For the 

following offices, some divisions are 

able to map workload to strategic goals 

and objectives using an enterprise-wide 

system while other divisions can map 

workload to strategic goals and 

objectives but must continue to use 

legacy, departmental, and/or cuff 

systems: OEA, OALJ, OE, OEP. 

Mapping of workload in terms of FTE 

time requires both a revision of budget 

reporting codes and development of a 

report that correlates information in the 

enterprise-wide workload tracking 

system with information in the FERC 

HR system. The complete 

implementation of all ATMS phases will 

take longer than planned due to contract 

staffing reductions from funding 

shortages under a yearlong FY 2007 

continuing resolution and because the 

effort was underestimated. A detailed 

plan for ATMS Phase 3 is currently 

under review and the target may not be 

fully met in FY 2008. 

Align Commission costs to strategic 

objectives Complete by September 2007 

Target Met. The FY2009 Budget 

Request has been structured to map both 

FTEs and the Commissions costs to 

strategic objectives and was completed 

on September 10, 2007. 

Percentage of vendor payments made by 

established due dates 99% 

Target Not Met. During FY07, the 

Commission processed 97.1% (1897 out 

of 1953) of payments in compliance 

with Prompt Payment Act deadlines. 37 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 93   

FY 2007 

Performance Measurement Performance Target Data Source 

of the 56 late payments did not result in 

interest begin paid to the vendor. The 

failure to meet this target did not have an 

adverse affect on overall program 

performance. 

Percentage of payments made without 

error 100% 

Target Not Met. During FY 2007, the 

Commission made 99.7% of its 

payments without error. The failure to 

meet this target did not have an adverse 

affect on overall program performance. 

Timeliness of collecting accounts 

receivable that offset the Commission’s 

appropriation 

95% collected by due dates 

Target met. During FY 2007, the 

Commission collected 99.5% of its 

offsetting accounts receivable by their 

stated due date. 

Financial statements that present fairly, 

in all material aspects, the Commission’s 

financial position 

Unqualified audit opinion on FY 2006 

financial statements 

Target Met. Unqualified opinion 

received 

November, 2006 

Percentage of transactional case 

assessments or convening sessions 

concluded 

75% within 20 days 

Target Met. DRS completed 100% (41 

out of 41) transactional case assessments 

or convening sessions within 20 days 

after being referred to the DRS. 

Percentage of transactional ADR 

processes agreed to by parties concluded 

75% within 120 days total (convening 

and process) 

Target Met. Dispute Resolution Services 

completed 34 transactional processes or 

cases, both environmental and nonenvironmental in which parties agreed to 

pursue an ADR process. Of these, 31 

were completed within 120 days after 

being referred to the DRS (91%). 

Number of ADR requests and referrals to 

the Dispute Resolution Service 

Increase number over FY 2004 (base 

year) 

Target Met. DRS addressed a total of 79 

new requests or ongoing cases from a 

previous fiscal year involving gas, 

electric, hydropower, and pipelines. This 

represents a 46.3 % increase over 

FY2004, in which there were 54 new 

requests or ongoing cases. 

Favorable Dispute Resolution Service 

customer satisfaction for casework and 

outreach 

80% customer satisfaction rate 

Target Met. The DRS requests customer 

feedback through evaluations of 

casework processes, and training 

sessions. For casework concluded in 

FY2007, all participants who completed 

evaluations gave the DRS staff favorable 

comments, for a satisfaction rate of 

100%. 

In training sessions during FY2007, 

participant ranking for Course Content 

averaged 90%, Course Materials 

averaged 88%, and Instructor 

Effectiveness averaged 94%. 

Number of outreach events (e.g., 

trainings, workshops, and presentations) 

to promote the use of dispute resolution 

skills 

Increase number over FY 2004 (base 

year) 

Target Met. There were 65 active 

outreach projects in FY2007. This 

represents a 1.6 % increase over 2004 in 

which there were 64 projects. Note: The 

projects were both internal and external 

to FERC. 

Ensure timely and effective 

communication to all stakeholders 

 Issue 95% of press releases for 

important agency actions on the 

same day as the underlining action 

 Post 95% of important agency 

actions on the same day as the 

underlining action 

 Provide an initial and complete 

response to 70% of inquiries at the 

time of the receipt of the request 

 Develop webpages within the 

Targets Met. 

 In FY 2007, 80 out of 80 or 100% 

of press releases were issued within 

1 hour of action being taken. 

 In FY 2007, 3816 of 3820 or 99% 

of important agency actions were 

posted on the Commission’s 

internet website within 1 hour of 

issuance 

 In FY 2007, the office provided an 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 94   

FY 2007 

Performance Measurement Performance Target Data Source 

assigned timeframe to enhance and 

support the Commission’s 

initiatives and goals 

initial and complete response to 

2272 of 2791 or 81% of public 

inquiries at the time of receipt. 

 In FY 2007, the Commission 

developed the following webpages 

in the assigned timeframe: Market 

Oversight, Electric Competition, 

OATT Reform, Blanket 

Certificates, Transmission 

Investment, Pipeline, Hydrokinetic 

Energy, MOU, Policy Statement, 

Hydro licensing, Annual Charges, 

Career, Media form, and FOIA 

form. 

Enhance communication with National 

and International groups 

 Respond to 50% of Official 

Congressional correspondence 

within 10 business days 

 Provide email notification of 

significant Commission actions to 

Congress within 1 to 2 business 

days of the underlining action 

along with briefing offers where 

appropriate 

 Provide timely and effective 

briefings to members of Congress 

 Provide email notification of 

significant Commission actions to 

effected State regulatory agencies 

within 1 to 2 business days of the 

underlining action 

 Accommodate visitation requests 

from delegations from various 

countries and organizations 

Targets Met. 

 130 out of 205 pieces of official 

Congressional correspondence, or 

63%, were responded to within 10 

business days. 

 In FY 2007, email notifications to 

members of Congress were sent out 

on 340 significant Commission 

actions within 1 to 2 business days 

of the underlining action. Briefing 

offers were made on appropriate 

items. 

 In FY 2007, the Commission 

provided 38 briefings to members 

of Congress. 

 In FY 2007, 178 email notifications 

to State regulatory agencies were 

sent out on significant Commission 

actions within 1 to 2 business days 

of the underlining action. 

 In FY 2007, OEA hosted 71 visits 

from 75 countries and 

organizations. 

Percentage of cases set for hearing that 

achieve partial or complete consensual 

agreement 

75% 

Target Met. 88% of cases set for hearing 

achieved partial or complete consensual 

agreement. 

Percentage of cases set for hearing 

completed according to the established 

schedule 

 75% of Track I cases in 29.5 weeks 

 75% of Track II cases in 47 weeks 

 75% of Track III cases in 63 weeks 

Targets Met. 

 There were no Track I cases. 

 80% of Track II cases in 47 weeks. 

 88% of Track III cases in 63 weeks. 

Issue well-reasoned initial decisions, 

based on facts, law, and Commission 

policies which are upheld in whole or in 

part 

80% of initial decisions upheld in whole 

or in part 

Target Met. 91% of initial decisions 

were upheld in whole or in part. 

 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 95   

FY 2008 

Performance Measure Performance Target Results 

Number of ADR requests and referrals 

addressed by the Dispute Resolution 

Service 

Increase number over FY 2004 

Target Met. The DRS addressed 57 new 

ADR requests and referrals; 3 more than 

FY 2004. 

Percentage of mediated or facilitated 

case that achieve partial or complete 

consensual agreement 

75% 

Target Met. The DRS had a 90% (18 

out of 20) success rate in assisting 

parties achieve consensual resolution of 

cases. 

Favorable Dispute Resolution Service 

customer satisfaction for casework and 

outreach 

80% customer satisfaction rate 

Target Met. In trainings and workshops 

during the period, participant ranking for 

Course Content averaged 89% and 

Instructor Effectiveness 93%. For 

casework, all participants who 

completed evaluations gave the DRS 

staff favorable comments, for a 

satisfaction rate of 100%. 

Number of outreach events (e.g., 

trainings, workshops, and presentations) 

to promote the use of dispute resolution 

skills 

Increase number over FY 2004 

Target Not Met. The DRS delivered or 

assisted with 37 outreach events, equal 

to the number in FY 2004. The DRS 

met all of the outreach needs and there 

were no negative program impacts.

Of ADR processes concluded, 

percentage that resulted in savings of 

time and/or money over traditional 

processes 

75% 

Target Met. 100% of participants who 

completed a survey indicated that the 

use of ADR resulted in savings of time 

and/or money over traditional processes. 

Percentage of cases set for hearing that 

achieve partial or complete consensual 

agreement 

75% Target Met. 91% 

Ensure timely and effective 

communication to all stakeholders 

 Issue 95% of press releases for 

important agency actions within 1 

hour of action being taken 

 Post 95% of important and timesensitive agency actions on the 

Commission’s internet website 

within 1 hour of issuance 

 Provide an initial and complete 

response to 70% of inquiries at the 

time of the receipt of the request 

 Develop webpages within the 

assigned timeframe to enhance and 

support the Commission’s 

initiatives and goals 

 Target Met. 95% (71 out of 75) 

press releases were issued within 1 

hour of action being taken. 

 Target Met. 100% (4,004 out of 

4,005) important and timesensitive actions were posted 

within 1 hour of action being taken 

by the Commission. 

 Target Met. 74% (3,833 out of 

5,149) of inquiries were provided a 

complete response at the time of 

the receipt of the request. 

 Target met. 19 new web pages 

and/or sections on FERC.gov were 

developed within the assigned 

timeframe. 

Enhance communication with National 

and International groups 

 Provide responses to 95% of 

Congressional inquiries and 

briefing requests by the date 

requested or by 10 business days 

from the date of the request 

 Provide email notification of 

significant Commission actions to 

Congress within 1 to 2 business 

days of the underlying action along 

with briefing offers where 

appropriate 

 Provide timely and effective 

briefings to members of Congress 

and State Officials within the 

timeframe requested and initiate at 

least three briefings on top priority 

issues within timeframe 

appropriate to effect that issue 

 Provide email notification of 

outreach efforts (i.e., panel 

discussions, workshops, 

 Target Met. 100% (61 out of 61) 

briefings were held and (318 out of 

318) congressional inquiries were 

responded to within 10 business 

days of the request. 

 Target Met. Email notifications 

concerning 292 significant 

Commission actions were sent 

within 1 to 2 business days of the 

underlying action. 

 Target Met. 61 timely and 

effective briefings with members 

of Congress were held. Briefings 

on the top priority issues of cyber 

security; market manipulation; and 

transmission line siting were held 

within appropriate time frames. 

State officials were also briefed on 

these issues. 

 Target Met. Staff provided 19 

notifications of outreach efforts 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 96   

FY 2008 

Performance Measure Performance Target Results 

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 

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 performanced-based 

 Target Met. 31% of total 

procurement dollars awarded to 

small, women-owned and minority 

businesses. 

 Target met. 100% of all qualified 

procurements were performance 

based awards. 

Full implementation of FERC’s 

eGovernment initiatives Completed by September 30, 2008 

Target Met. eFiling 7.0 was completed 

by September 30, 2008. eFiling will 

increase the number of documents that 

can be submitted and provides a secure 

process for submitting Privileged and 

CEII materials. Also, ATMS 3.0 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 97   

FY 2008 

Performance Measure Performance Target Results 

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. 

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 signifi-

▪ 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 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 98   

FY 2009 

Performance Measure Performance Target Results 

cant 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 

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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 99   

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 

performanced-based 

▪ Target Met - 33% of total available 

procurement dollars were awarded to 

small businesses during FY09. 

▪ Target Met - 100% of qualified FY09 

procurements were performance-based 

acquisitions. 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 100   

PERFORMANCE DATA FOR JUST & REASONABLE RATES, TERMS AND 

CONDITIONS: FY 2010 - 2011 

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. 

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 (NOPR) 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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 101   

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. 

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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 102   

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. 

(Remainder of page intentionally left blank.) 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 103   

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

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. 

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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 104   

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% 

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. 

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. 

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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 105   

PERFORMANCE DATA FOR INFRASTRUCTURE: FY 2010 - 2011 

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. 

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. 

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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 106   

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. 

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. 

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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 107   

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 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 108   

Appendix A: Statutory Authority 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 109   

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

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

Electric, Hydropower, & General Statutes 

Federal Power Act 

Energy Policy Act of 2005 

Energy Policy Act of 1992 

Power Plant & Industrial Fuel Use Act 

Department of Energy Organization Act 

Electric Consumers Protection Act (ECPA) 

Electronic Freedom of Information Act of 1996 

Energy Independence and Security Act of 2007 (EISA) 

Public Utility Holding Company Act of 1935 and 2005 

Public Utility Regulatory Policies Act of 1978 (PURPA) 

Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) 

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

Natural Gas Statutes 

Natural Gas Act 

Natural Gas Policy Act of 1978 

Alaska Natural Gas Pipeline Act of 2004 

Alaska Natural Gas Transportation Act of 1976 

Outer Continental Shelf Lands Act of 1978 (OCSLA) 

Natural Gas Wellhead Decontrol Act of 1989 (NGWDA) 

Oil Statutes 

Interstate Commerce Act 

Oil Pipeline Regulatory Reform 

Environmental and Other Statutes 

Clean Air Act 

Clean Water Act 

Rivers and Harbors Act 

Endangered Species Act 

Wild and Scenic Rivers Act 

Coastal Zone Management Act 

National Historic Preservation Act 

Fish and Wildlife Coordination Act 

National Environmental Policy Act (NEPA) 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 110   

Appendix B: Acronym Listing 
FY 2011 Performance & Accountability Report

Federal Energy Regulatory Commission

Page 111   

Acronym Full Description 

ADR Alternative Dispute Resolution 

ALJ Administrative Law Judge 

Bcf Billion Cubic Feet 

CIP Critical Infrastructure Protection 

DOE Department of Energy 

DRS Dispute Resolution Service 

EBB Electronic Bulletin Boards 

EPAct 2005 Energy Policy Act of 2005 

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 

MOU Memorandum of Understanding 

LNG Liquefied Natural Gas 

NEPA National Environmental Policy Act 

NERC North American Electric Reliability Corporation 

NIST National Institute of Standards and Technology 

NOPR Notice of Proposed Rulemaking 

OMB Office of Management and Budget 

RIDM Risk-informed Decision Making 

RTO Regional Transmission Organization