Federal Register / Vol. 79, No. 141 / Wednesday, July 23, 2014 / Rules and Regulations 42663 

inspection and any resulting repairs done 

before the effective date of this AD using 

procedures different from those specified in 

M7 Aerospace LLC SA227 Series Commuter 

Category Service Bulletin CC7–53–005, dated 

November 15, 2013; and M7 Aerospace LLC 

SA227 Series Service Bulletin 227–53–009, 

dated November 15, 2013, may apply for an 

alternative method of compliance (AMOC) 

following the instructions in paragraph (m) of 

this AD. 

(l) Paperwork Reduction Act Burden 

Statement 

A federal agency may not conduct or 

sponsor, and a person is not required to 

respond to, nor shall a person be subject to 

a penalty for failure to comply with a 

collection of information subject to the 

requirements of the Paperwork Reduction 

Act unless that collection of information 

displays a current valid OMB Control 

Number. The OMB Control Number for this 

information collection is 2120–0056. Public 

reporting for this collection of information is 

estimated to be approximately 5 minutes per 

response, including the time for reviewing 

instructions, completing and reviewing the 

collection of information. All responses to 

this collection of information are mandatory. 

Comments concerning the accuracy of this 

burden and suggestions for reducing the 

burden should be directed to the FAA at: 800 

Independence Ave. SW., Washington, DC 

20591, Attn: Information Collection 

Clearance Officer, AES–200. 

(m) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Fort Worth Airplane 

Certification Office, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or local 

Flight Standards District Office, as 

appropriate. If sending information directly 

to the manager of the ACO, send it to the 

attention of the person identified in the 

Related Information section of this AD. 

(2) Before using any approved AMOC, 

notify your appropriate principal inspector, 

or lacking a principal inspector, the manager 

of the local flight standards district office/

certificate holding district office. 

(n) Related Information 

For more information about this AD, 

contact Andrew McAnaul, Aerospace 

Engineer, FAA, ASW–150 (c/o San Antonio 

MIDO), 10100 Reunion Place, Suite 650, San 

Antonio, Texas 78216; phone: (210) 308– 

3365; fax: (210) 308–3370; email: 

andrew.mcanaul@faa.gov. 

(o) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) M7 Aerospace LLC SA227 Series 

Commuter Category Service Bulletin CC7– 

53–005, dated November 15, 2013. 

(ii) M7 Aerospace LLC SA227 Series 

Service Bulletin 227–53–009, dated 

November 15, 2013. 

(3) For M7 Aerospace LLC service 

information identified in this AD, contact M7 

Aerospace LLC, 10823 NE Entrance Road, 

San Antonio, Texas 78216; phone: (210) 824– 

9421; fax: (210) 804–7766; Internet: http://

www.m7aerospace.com; email: MetroTech@

M7Aerospace.com. 

(4) You may view this service information 

at FAA, Small Airplane Directorate, 901 

Locust, Kansas City, Missouri 64106. For 

information on the availability of this 

material at the FAA, call 816–329–4148. 

(5) You may view this service information 

that is incorporated by reference at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

202–741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

Issued in Kansas City, Missouri, on July 14, 

2014. 

Kelly A. Broadway, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2014–17053 Filed 7–22–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2014–0159; Directorate 

Identifier 2014–NE–01–AD; Amendment 39– 

17905; AD 2014–15–03] 

RIN 2120–AA64 

Airworthiness Directives; Pratt & 

Whitney Canada Corporation 

Turboprop Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for certain 

serial number Pratt & Whitney Canada 

Corporation (P&WC) model PW150A 

turboprop engines. This AD requires 

rerouting of the igniter cables and 

installation of new support brackets. 

This AD was prompted by reports of 

damage to a high-pressure fuel line, 

which could result in a high-pressure 

fuel leak into the engine nacelle. We are 

issuing this AD to prevent high-pressure 

fuel leaks, which could cause engine 

fire and damage to the engine and the 

airplane. 

DATES: This AD becomes effective 

August 27, 2014. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of August 27, 2014. 

ADDRESSES: For service information 

identified in this AD, contact Pratt & 

Whitney Canada Corp., 1000 MarieVictorin, Longueuil, Quebec, Canada, 

J4G 1A1; phone: (800) 268–8000; fax: 

(450) 647–2888; Internet: www.pwc.ca. 

You may view this service information 

at the FAA, Engine & Propeller 

Directorate, 12 New England Executive 

Park, Burlington, MA. For information 

on the availability of this material at the 

FAA, call (781) 238–7125. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2014– 

0159; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this AD, the mandatory 

continuing airworthiness information 

(MCAI), the regulatory evaluation, any 

comments received, and other 

information. The address for the Docket 

Office (phone: (800) 647–5527) is 

Document Management Facility, U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE., Washington, 

DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Wego Wang, Aerospace Engineer, 

Engine Certification Office, FAA, Engine 

& Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

phone: (781) 238–7134; fax: (781) 238– 

7199; email: wego.wang@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to the specified products. The 

NPRM was published in the Federal 

Register on April 10, 2014 (79 FR 

19844). The NPRM proposed to correct 

an unsafe condition for the specified 

products. The MCAI states: 

There have been reports of damage in 

excess of acceptable criteria to the highpressure fuel line from the P&WC PW150A 

engine flowmeter to the flow divider. Damage 

has included fretting wear through contact 

with the engine igniter cables. The contact is 

the result of incorrectly routed igniter cables. 

While there has been no report of associated 

fuel leakage, the fretting wear, if undetected, 

could progress to a point where highpressure fuel would leak into the engine 

nacelle. 

Comments 

We gave the public the opportunity to 

participate in developing this AD. We 

considered the comment received. 

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42664 Federal Register / Vol. 79, No. 141 / Wednesday, July 23, 2014 / Rules and Regulations 

Request To Clarify Definition of Shop 

Visit 

One commenter requested that we 

clarify the definition of shop visit 

because the igniter cables are on the 

exterior of the engine and no 

disassembly is required to gain access to 

the igniter cables. 

We agree. We changed the definition 

of shop visit in paragraph (f) of this AD 

to be when an engine is inducted into 

the shop to perform maintenance. 

Conclusion 

We reviewed the available data, 

including the comment received, and 

determined that air safety and the 

public interest require adopting this AD 

with the changes described previously. 

We determined that these changes will 

not increase the economic burden on 

any operator or increase the scope of 

this AD. 

Costs of Compliance 

We estimate that this AD affects 180 

engines installed on airplanes of U.S. 

registry. We also estimate that it would 

take about 1 hour per engine to comply 

with this AD. The average labor rate is 

$85 per hour. Required parts cost about 

$682 per engine. Based on these figures, 

we estimate the cost of this AD on U.S. 

operators to be $138,060. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this AD will not 

have federalism implications under 

Executive Order 13132. This AD will 

not have a substantial direct effect on 

the States, on the relationship between 

the national government and the States, 

or on the distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this AD: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

the DOT Regulatory Policies and 

Procedures (44 FR 11034, February 26, 

1979), 

(3) Will not affect intrastate aviation 

in Alaska to the extent that it justifies 

making a regulatory distinction, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 14 CFR part 39 as 

follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD): 

2014–15–03 Pratt & Whitney Canada 

Corporation: Amendment 39–17905; 

Docket No. FAA–2014–0159; Directorate 

Identifier 2014–NE–01–AD. 

(a) Effective Date 

This AD becomes effective August 27, 

2014. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to Pratt & Whitney Canada 

Corporation (P&WC) model PW150A 

turboprop engines, serial number PCE– 

FA0916 and earlier. 

(d) Reason 

This AD was prompted by reports of 

damage to a high-pressure fuel line, which 

could result in a high-pressure fuel leak into 

the engine nacelle. We are issuing this AD to 

prevent high-pressure fuel leaks, which 

could cause engine fire and damage to the 

engine and the airplane. 

(e) Actions and Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(1) At the next shop visit, but before 36 

months from the effective date of this AD, 

reroute the igniter cables and install new 

support brackets in accordance with 

paragraph 3.B., Accomplishment 

Instructions, of P&WC Service Bulletin (SB) 

No. PW150–72–35274, Revision 1, dated May 

3, 2012. 

(2) Reserved. 

(f) Definition 

For the purpose of this AD, a shop visit is 

when the engine is inducted into the shop to 

perform maintenance. 

(g) Credit for Previous Action 

If you performed the actions in paragraph 

(e) of this AD before the effective date of this 

AD using P&WC SB No. PW150–72–35274, 

Initial Issue, dated March 23, 2012, you met 

the requirements of this AD. 

(h) Alternative Methods of Compliance 

(AMOCs) 

The Manager, Engine Certification Office, 

FAA, may approve AMOCs to this AD. Use 

the procedures found in 14 CFR 39.19 to 

make your request. 

(i) Related Information 

(1) For more information about this AD, 

contact Wego Wang, Aerospace Engineer, 

Engine Certification Office, FAA, Engine & 

Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

phone: (781) 238–7134; fax: (781) 238–7199; 

email: wego.wang@faa.gov. 

(2) Refer to MCAI Transport Canada AD 

CF–2014–09, dated February 12, 2014, for 

more information. You may examine the 

MCAI in the AD docket on the Internet at 

http://www.regulations.gov/

#!documentDetail;D=FAA-2014-0159-0003. 

(j) Material Incorporated by Reference 

(1) The Director of the Federal Register 

approved the incorporation by reference 

(IBR) of the service information listed in this 

paragraph under 5 U.S.C. 552(a) and 1 CFR 

part 51. 

(2) You must use this service information 

as applicable to do the actions required by 

this AD, unless the AD specifies otherwise. 

(i) Pratt & Whitney Canada Corporation 

(P&WC) Service Bulletin No. PW150–72– 

35274, Revision 1, dated May 3, 2012. 

(ii) Reserved. 

(3) For P&WC service information 

identified in this AD, contact Pratt & Whitney 

Canada Corp., 1000 Marie-Victorin, 

Longueuil, Quebec, Canada, J4G 1A1; phone: 

(800) 268–8000; fax: (450) 647–2888; 

Internet: www.pwc.ca. 

(4) You may view this service information 

at FAA, Engine & Propeller Directorate, 12 

New England Executive Park, Burlington, 

MA. For information on the availability of 

this material at the FAA, call (781) 238–7125. 

(5) You may view this service information 

at the National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

(202) 741–6030, or go to: http://

www.archives.gov/federal-register/cfr/ibrlocations.html. 

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Federal Register / Vol. 79, No. 141 / Wednesday, July 23, 2014 / Rules and Regulations 42665 

1 16 U.S.C. 825d(a). 

2 Id. 

3Citizens Utils. Co., 84 FERC ¶ 61,158, at 61,864 

(1998) (Citizens). 

4 Id. at 61,864–65. 

5 Id. at 61,865 (footnotes omitted); see also 

Entergy Louisiana Inc., 114 FERC ¶ 61,060, at P 12 

(2006); Exelon Corp., 109 FERC ¶ 61,172, at P 8 

(2004); ALLETE, Inc., 107 FERC ¶ 61,041, at P 10 

(2004); Niagara Mohawk Holdings, Inc., 95 FERC ¶ 

61,381, at 62,416, order denying reh’g, 96 FERC ¶ 

61,144 (2001). 

6Niagara Mohawk Holdings, Inc., 99 FERC ¶ 

61,323, at P 10 (2002) (order on compliance filing 

accepting petitioner’s commitment not to pay 

dividends out of paid-in capital unless it had an 

investment grade credit rating for its long-term 

debt); Exelon Corp., 109 FERC ¶ 61,172 at P 9 

(requiring petitioner to maintain a minimum 

common equity balance of 30 percent of total 

capital). 

7See, e.g., 18 CFR pt. 101, Account 201, Common 

stock issued, and Account 211, Miscellaneous paidin capital. 

8See, e.g., National Grid plc, 117 FERC ¶ 61,080, 

at P 83 (2006), order denying reh’g, 122 FERC ¶ 

61,096 (2008); Ameren Corp., 131 FERC ¶ 61,240 

(2010); Duke Energy Ohio, Inc., 137 FERC ¶ 61,137 

(2011). 

Issued in Burlington, Massachusetts, on 

July 14, 2014. 

Thomas A. Boudreau, 

Acting Assistant Directorate Manager, Engine 

& Propeller Directorate, Aircraft Certification 

Service. 

[FR Doc. 2014–17204 Filed 7–22–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF ENERGY 

Federal Energy Regulatory 

Commission 

18 CFR Parts 2 and 35 

[Docket No. PL14–1–000] 

Payment of Dividends From Funds 

Included in Capital Account 

AGENCY: Federal Energy Regulatory 

Commission. 

ACTION: Policy statement. 

SUMMARY: The Commission issues this 

policy statement to provide guidance 

that the Federal Power Act (FPA) should 

be interpreted as not prohibiting the 

payment of dividends from funds 

included in capital account by any 

public utility that has a market-based 

rate tariff on file with the Commission, 

does not have captive customers, and 

does not provide transmission or local 

distribution services. The Commission 

has concluded that the payment of 

dividends from funds included in 

capital account by such public utilities 

does not implicate the concerns 

underlying the enactment of the 

provision of the FPA that prohibits the 

payment of dividends from funds 

included in capital account. Thus, it is 

unnecessary for any public utility that 

meets the criteria identified in this 

policy statement to file a petition for 

declaratory order in order to seek 

assurances that dividends paid from 

capital account are not unlawful under 

this provision of the FPA. 

DATES: This policy will become effective 

July 23, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Eric Olesh (Technical Information), 

Office of Energy Market Regulation, 

888 First Street NE., Washington, DC 

20426, (202) 502–6524, eric.olesh@

ferc.gov. 

Antonia Frost (Legal Information), 

Office of General Counsel, 888 First 

Street NE., Washington, DC 20426, 

(202) 502–8085, antonia.frost@

ferc.gov. 

SUPPLEMENTARY INFORMATION: 

148 FERC ¶ 61,020 

Before Commissioners: Cheryl A. LaFleur, 

Acting Chairman; Philip D. Moeller, John 

R. Norris, and Tony Clark. 

Policy Statement 

Issued July 17, 2014. 

1. The Commission issues this policy 

statement to provide guidance that 

section 305(a) of the Federal Power Act 

(FPA) 1 should be interpreted as not 

prohibiting the payment of dividends 

from funds included in capital account 

by any public utility that has a marketbased rate tariff on file with the 

Commission, does not have captive 

customers, and does not provide 

transmission or local distribution 

services because the Commission has 

concluded that the payment of 

dividends from capital account by such 

public utilities does not appear to 

implicate the concerns underlying the 

enactment of FPA section 305(a). In 

issuing this policy statement, the 

Commission eliminates a regulatory 

burden otherwise applicable under FPA 

section 305(a) to certain public utilities 

that pay dividends from funds included 

in capital account. Thus, it is 

unnecessary for any public utility that 

meets the criteria identified in this 

policy statement to file a petition for 

declaratory order in order to seek 

assurances that dividends paid from 

capital account are not unlawful under 

FPA section 305(a). 

I. Background 

A. FPA Section 305(a) and Its 

Underlying Concerns 

2. FPA section 305(a) provides that it 

shall be unlawful for any officer or 

director of any public utility to 

participate in the making or paying of 

any dividends of such public utility 

from any funds properly included in 

capital account.2

3. In Citizens Utils. Co., the 

Commission noted that this provision of 

FPA section 305(a) had not previously 

been interpreted by the Commission or 

the courts, and that there was no 

explicit statement in the legislative 

history discussing the intent behind this 

provision.3 The Commission went on to 

explain, however, that Congress’ intent 

could be gleaned from the practices that 

led to the passage of the legislation,4

providing as an example: 

that sources from which cash dividends were 

paid were not clearly identified and that 

holding companies had been paying out 

excessive dividends on the securities of their 

operating companies. A key concern, thus, 

was corporate officials raiding corporate 

coffers for their personal financial benefit.5

In later cases, in order to ensure that 

the dividend pay-outs in question 

would not impair the liquidity and 

financial integrity of a public utility, the 

Commission has also often conditioned 

its grant of declaratory relief on the 

utility’s commitment to observe 

specified limitations on the amount of 

such dividends or on other financial 

commitments.6

B. Petitions for Declaratory Order 

Requesting Relief 

4. In cases in which a dividend (cash 

or otherwise) will be accounted for as a 

charge to stated, additional, or 

miscellaneous paid-in capital of a 

public utility,7 public utilities often 

filed petitions for declaratory orders in 

which the petitioner requests the 

Commission’s concurrence that, based 

upon the facts and circumstances 

presented, the making or paying of a 

proposed dividend will not implicate 

the concerns underlying the enactment 

of FPA section 305(a) and, therefore, 

will not violate FPA section 305(a). The 

majority of these petitions arose from 

three situations: (1) Cases involving 

utility mergers or acquisitions in which, 

due to the application of purchase 

accounting to the transaction, the 

retained earnings, which is the 

traditional source of dividends, of the 

acquired public utility is reclassified for 

balance sheet purposes as additional 

paid-in capital, without having any 

effect on cash otherwise available for 

paying future dividends; 8 (2) cases 

involving the distribution (or ‘‘spin-off’’) 

of the stock of a subsidiary or 

subsidiaries of a public utility, as the 

result of which, again for balance sheet 

purposes, the retained earnings of the 

public utility may be substantially 

reduced or eliminated, without having 

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