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ADMINISTRATIVE 

ARRANGEMENT 

Between 

The United States Federal Energy Regulatory Commission 

and 

the Directorate-General for Energy of the European Commission 

Concerning Cooperation and the Exchange of Information Related 

to the Field of Wholesale Energy Market Regulation 

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ADMINISTRATIVE ARRANGEMENT CONCERNING 

COOPERATION AND EXCHANGE OF INFORMATION BETWEEN 

THE UNITED STATES FEDERAL ENERGY REGULATORY COMMISSION 

ANDTHE 

DIRECTORATE-GENERAL FOR ENERGY 

OF THE EUROPEAN COMMISSION 

Having regard to the role of the Federal Energy Regulatory Commission of the 

United States (FERC) in regulating, monitoring and oversight of Wholesale Energy 

Markets and in reviewing proposals to build liquefied natural gas terminals and 

interstate natural gas pipelines; 

Having regard to the role of the Directorate-General for Energy of the European 

Commission (DG Energy) in drafting proposals on the further development of 

integrated wholesale electricity and gas markets in the European Union, in 

developing the network codes and in monitoring the application of European Union 

law as it applies to electricity and gas markets; 

Recognising that, in the field of energy market regulation, FERC and the DG 

Energy share convergent interests in ensuring the stability and transparency of 

Wholesale Energy Markets, the further development of the necessary electricity 

and gas infrastructures given significant changes in the resource mix, including the 

integration of variable energy resources into the electricity system, and that 

therefore a regular exchange of information on these issues would be of mutual 

benefit; 

Taking into account the Memorandum of Understanding signed on 6 January 2015 

between the FERC and the European Union's Agency for the Co-operation of 

Energy Regulators on co-operation and exchange of information on areas falling 

under their respective regulatory mandates; 

Recalling that this Administrative Arrangement (AA) Concerning Cooperation and 

Exchange of Information Between the United States Federal Energy Regulatory 

Commission and the Directorate-General for Energy of the European Commission 

is without prejudice to the respective competences of the Member States of the 

European Union and the European Union institutions and does not create legal 

obligations in respect of the European Union and its Member States. 

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FERC and DG Energy share the following understandings: 

SECTION 1: 

DEFINITIONS 

1. "Authority" means FERC or the DG Energy (together the Authorities). 

2. "Wholesale Energy Market" means a wholesale electricity or gas market 

subject to the regulation, monitoring, and/or oversight by either Authority. 

3. "Person" means a natural or legal person. 

SECTION 2: 

GENERAL PROVISIONS 

1. This AA does not create any legally binding obligations, confer any rights, or 

supersede domestic laws. This AA does not confer upon any Person the right 

or ability directly or indirectly to obtain, suppress, or exclude any 

information or a request for assistance under this AA. 

2. This AA does not affect any right of each Authority to communicate with, or 

obtain information or documents from, any Person subject to their 

jurisdiction that is located in the territory of the other Authority. 

3. This AA does not prejudice, limit or alter the terms and conditions of any 

bilateral or multilateral Memora!].da of Understanding or other arrangements 

concerning cooperation between or among either Authority and any 

regulators from Member States of the European Union or from the United 

States. 

4. The Authorities, within the framework of this AA, intend to cooperate in 

good faith and in full respect of their regulatory or legal duties in relation to 

the issues listed in this AA. 

5. FERC and the DG Energy, unless otherwise mutually decided, intend to bear 

their own respective shares of financial costs of participating in the activities 

under this AA. All such activities would be subject to approval of funding by 

each Authority involved. 

SECTION 3: 

SCOPE OF COOPERATION AND THE EXCHANGE OF INFORMATION 

FERC and the DG Energy affirm their intent: 

1. To have regular consultations and exchange of information on ex1stmg 

energy market regulation at a technical level, and to share best practices such 

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as methods, techniques and standards to face emerging challenges of the 

respective energy markets, including but not limited to: 

• the development of new market designs; 

• issues of capacity and resource adequacy; 

• zonal and nodal pricing; 

• coordination between transmission system operators; 

• transmission planning and cost allocation; 

• integration into the electric grid of variable energy resources, distributed 

energy resources, and demand response; 

• natural gas infrastructure, including liquefied natural gas facilities; and 

• natural gas scheduling practices and market operations. 

Such exchange of information may include studies that have been prepared 

by or for the account of either Authority. 

2. To have regular consultations and exchange of information and best practices 

referred to in point 1 above on ensuring electricity grid stability, including on 

the integration of variable energy resources into the electricity system and on 

efficient and well-coordinated transmission system operation. 

3. To consider the possibility of short-term staff exchanges, the details of which 

may be discussed between the Authorities. 

4. To protect, to the extent permitted by law, non-public information shared 

under this AA and obtain prior consent by the other Authority before 

disclosing non-public information received from the other Authority, except 

where disclosure is required by law. The Authority intending disclosure of 

non-public information received from the other authority is expected, to the 

extent legally permissible and practically possible, to inform the Authority 

originally providing the information about the planned disclosure within a 

reasonable amount of time prior to such disclosure. 

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SECTION 4: 

MODIFICATIONS AND EFFECTIVE DATE 

1. Modifications to this AA should be made in writing with the written consent 

of both Authorities. 

2. Cooperation in accordance with this AA becomes effective on the date that 

both Authorities have signed this AA. 

SECTION 5: 

DISCONTINUATION 

1. An Authority should endeavour to provide 30 days written notice of its intent 

to discontinue cooperation under this AA. If either Authority gives such 

notice, cooperation and assistance under this AA should continue with 

respect to all requests for assistance that were made, or information provided 

before the date on which the AA is discontinued (as indicated in the notice 

but no earlier than the date the notice is sent) until the requesting Authority 

notifies the other Authority that the matter for which it sought assistance is 

closed. 

2. In the event of the discontinuation of this AA, information obtained under 

this AA should continue to be treated confidentially in the manner prescribed 

under Section 3( 4). 

Norman C. Bay, 

Chairman of the 

} atory Commission 

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