144 FERC ¶ 61,043

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 38 and 284

[Docket No. RM13-17-000]

Communication of Operational Information Between Natural Gas Pipelines and Electric

Transmission Operators

(Issued July 18, 2013)

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Federal Energy Regulatory Commission (Commission) is proposing 

to revise Parts 38 and 284 of the Commission’s regulations to provide explicit authority 

to interstate natural gas pipelines and public utilities that own, operate, or control 

facilities used for the transmission of electric energy in interstate commerce to share nonpublic, operational information with each other for the purpose of promoting reliable 

service or operational planning on either the public utility’s or pipeline’s system. 

DATES: Comments are due [insert date 30 days after publication in the FEDERAL 

REGISTER].

ADDRESSES: Comments, identified by docket number, may be filed in the following 

ways: 

• Electronic Filing through http://www.ferc.gov. Documents created electronically 

using word processing software should be filed in native applications or print-toPDF format and not in a scanned format.
Docket No. RM13-17-000 - 2 -

• Mail/Hand Delivery: Those unable to file electronically may mail or hand-deliver 

comments to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street, NE, Washington, DC 20426.

Instructions: For detailed instructions on submitting comments and additional 

information on the rulemaking process, see the Comment Procedures Section of this 

document

FOR FURTHER INFORMATION CONTACT:

Caroline Daly (Technical Information)

Office of Energy Policy & Innovation

888 First Street, NE

Washington, DC 20426

(202) 502-8931

caroline.daly@ferc.gov

Anna Fernandez (Legal Information)

Office of the General Counsel

888 First Street, NE

Washington, DC 20426

(202) 502-6682

anna.fernandez@ferc.gov

SUPPLEMENTARY INFORMATION:
144 FERC ¶ 61,043

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Communication of Operational Information Between 

Natural Gas Pipelines and Electric Transmission 

Operators

Docket No. RM13-17-000

NOTICE OF PROPOSED RULEMAKING

(Issued July 18, 2013)

1. In this Notice of Proposed Rulemaking, the Commission is proposing to revise 

Parts 38 and 284 of the Commission’s regulations to provide explicit authority to

interstate natural gas pipelines and public utilities that own, operate, or control facilities 

used for the transmission of electric energy in interstate commerce to share non-public, 

operational information with each other for the purpose of promoting reliable service or

operational planning on either the public utility’s or pipeline’s system.1 This proposal 

will help ensure the reliability of pipeline and public utility transmission service by 

permitting transmission operators to share the information that they deem necessary to 

promote the reliability and integrity of their systems with each other. However, 

 1 For ease of reference, we will refer to these parties collectively as “transmission 

operators.”
Docket No. RM13-17-000 - 2 -

recipients of that non-public, operational information would be subject to a No-Conduit 

Rule that prohibits subsequent disclosure of that information to an affiliate or third party.

I. Background

2. In recent years, reliance on natural gas as a fuel for electric generation has steadily 

increased.2

 This trend is expected to continue into the future, resulting in greater 

interdependence between the natural gas and electric industries.3

 Several events over the 

 2 See, e.g., Energy Information Administration, Fuel Competition in Power 

Generation and Elasticities of Substitution (June 2012); Richard Smead, All Industry 

Segments Working for Success in Growing Gas-Fired Generation (Nov. 15, 2012), 

available at http://www.navigant.com/insights/library/energy/2012/gas_fired_generation/; 

ISO-NE, Addressing Gas Dependence at 3 (July 2012) (reliance on natural gas-fired 

electricity in the region increased from five percent in 1990 to 51 percent in 2011), 

available at http://www.isone.com/committees/comm_wkgrps/strategic_planning_discussion/materials/natural-gaswhite-paper-draft-july-2012.pdf.

3 See, e.g., North American Electric Reliability Corporation, 2013 Special 

Reliability Assessment: Accommodating an Increased Dependence on Natural Gas for 

Electric Power; Phase II: A Vulnerability and Scenario Assessment for the North 

American Bulk Power System at 1 (May 2013) (“Over the past decade, natural gas-fired 

generation rose significantly from 17 percent to 25 percent of U.S. power generation and 

is now the largest fuel source for generation capacity. Gas use is expected to continue to 

increase in the future, both in absolute terms and as a share of total power generation and 

capacity.”), available 

at http://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_PhaseII

_FINAL.pdf; Energy Information Administration, Annual Energy Outlook 2013 Early 

Release Overview (2013) (showing electric generation from natural gas rising from 

13 percent in 1993 to 30 percent in 2040), available 

at http://www.eia.gov/forecasts/aeo/er/early_elecgen.cfm; The New England State 

Committee on Electricity, Natural Gas Infrastructure and Electric Generation: A Review 

of Issues Facing New England (Dec. 14, 2012), available at

http://www.nescoe.com/uploads/Phase_I_Report_12-17-2012_Final.pdf.
Docket No. RM13-17-000 - 3 -

last few years, such as the Southwest Cold Weather Event,

4 show the crucial 

interconnection between natural gas pipelines and electric transmission operators and the 

need for robust communication between these industry sectors to ensure that both 

systems operate safely and effectively for the benefit of their customers. While entities 

from both industries have already begun efforts to improve coordination, further sharing 

of non-public, operational information between transmission operators could enhance 

system reliability and contingency planning in both industries. 

3. On February 15, 2012, the Commission issued a notice in Docket No. AD12-12-

000 requesting comments on various aspects of gas-electric interdependence and 

coordination in response to questions posed by members of the Commission.5

 In order to 

better understand the interface between the electric and natural gas pipeline industries and 

identify areas for improved coordination, the questions covered a variety of topics 

including market structure and rules, scheduling, communications, infrastructure and 

 4 See FERC/NERC, Report on Outages and Curtailments During the Southwest 

Cold Weather Event of February 1-5, 2011 (2011), available at

http://www.ferc.gov/legal/staff-reports/08-16-11-report.pdf.

5 Coordination Between Natural Gas and Electricity Markets, Docket No. AD12-

12-000 (Feb. 15, 2012) (Notice Assigning Docket No. and Requesting Comments) 

(available at http://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=12893828). See 

also Commissioner Philip D. Moeller, Request for Comments of Commissioner Moeller 

on Coordination between the Natural Gas and Electricity Markets (Feb. 3, 2012), 

available at http://www.ferc.gov/about/com-mem/moeller/moellergaselectricletter.pdf; 

Commissioner Cheryl A. LaFleur, Statement regarding Standards for Business Practices 

for Interstate Natural Gas Pipelines (Feb. 16, 2012), available at 

http://www.ferc.gov/media/statements-speeches/lafleur/2012/02-16-12-lafleur-G-1.asp.
Docket No. RM13-17-000 - 4 -

reliability. In response to the notice, the Commission received comments from 

79 entities, with some raising concerns that current laws, regulations, or tariffs may 

hinder the sharing of such information.

4. During August 2012, the Commission convened five regional conferences for the 

purpose of exploring these issues and obtaining further information from the electric and 

natural gas industries regarding coordination between the industries. Representatives 

from a cross-section of both industries attended the regional conferences, with total 

attendance exceeding 1,200 registrants. Among the topics discussed at the conferences 

were communications, coordination, and information-sharing. Participants at multiple 

conferences again expressed concern that Commission rules and policies could be 

impeding further efforts to improve communication between the industries.6

 Some 

natural gas pipelines and Regional Transmission Organizations and Independent System 

Operators (RTOs/ISOs) also noted that, although they make significant amounts of 

operational information publicly available, there is reluctance to share information on a 

more granular level because of concerns about violating statutory prohibitions against 

undue preference for any customer or customer class.7 

 6 See FERC Staff Report on Gas-Electric Coordination Technical Conferences

(Nov. 2012), available at http://www.ferc.gov/legal/staff-reports/11-15-12-

coordination.pdf (November 15 Staff Report).

7 November 15 Staff Report at 24.
Docket No. RM13-17-000 - 5 -

5. On November 15, 2012, the Commission issued an order directing further 

technical conferences and reports.8

 In the November 15 Order, the Commission 

acknowledged the concerns regarding communications between the two industries, but 

found that there was little specific discussion of potential clarifications or potential 

changes to the Commission’s regulations.9

 The Commission, therefore, directed 

Commission staff to convene a technical conference to identify areas in which additional 

Commission guidance or potential regulatory changes could be considered. 10

6. Pursuant to the November 15 Order, on December 7, 2012, a Notice of Request 

for Comments and Technical Conference to be held on February 13, 2013 was issued on

information sharing and communication issues between the natural gas and electricity 

industries.11 Interested parties were asked to file comments prior to the technical 

conference on three questions related to communications and information sharing. 

Twenty-seven comments were filed in response to the Notice of Request for Comments 

 8 Coordination Between Natural Gas and Electricity Markets, 141 FERC ¶ 61,125 

(2012) (November 15 Order). 

9 Id. P 5.

10 Id.

11 Coordination between Natural Gas and Electricity Markets, Docket No. AD12-

12-000 (Dec. 7, 2012) (Notice Of Request for Comments and Technical Conference) 

(http://www.ferc.gov/EventCalendar/Files/20121207134434-AD12-12-000TC1.pdf); 

77 Fed. Reg. 74180 (Dec. 13, 2012) (http://www.gpo.gov/fdsys/pkg/FR-2012-12-

13/pdf/2012-30063.pdf).
Docket No. RM13-17-000 - 6 -

and Technical Conference,

12 and more than 350 persons, representing a cross-section of 

industry, registered for the technical conference. 

7. In response to the Notice of Request for Comments and Technical Conference,

and at the February 13 technical conference itself, natural gas and electric industry 

participants described a variety of actions that are currently being taken to improve 

communications and information sharing between the two industries. However, several 

entities acknowledged that system reliability and contingency planning could be further 

enhanced by the sharing of non-public, operational information directly between 

transmission operators.13 Several transmission operators pointed out that there is general 

reluctance to share such information because of concerns that doing so could be a 

violation of current laws, regulations or tariffs.14 For example, INGAA stated that there 

 12 A list of commenters with the abbreviations used to identify them is attached as 

an Appendix.

13 See, e.g., MISO Comments, Docket No. AD12-12-000, at 3 (filed Jan. 7, 2013), 

6; ISO-NE Comments, Docket No. AD12-12-000, at 4 (filed Jan. 7, 2013); SPP 

Comments, Docket No. AD12-12-000, at 5 (filed Jan. 7, 2013); PJM Comments, Docket 

No. AD12-12-000, at 3 (filed Jan. 11, 2013); MidAmerican Comments, Docket No. 

AD12-12-000, at 9-10 (filed Jan. 7, 2013); BPA Comments, Docket No. AD12-12-000, at 

6 (filed Jan. 7, 2013); NYTOs Comments, Docket No. AD12-12-000, at 4 (filed Jan. 7, 

2013); AGA Comments, Docket No. AD12-12-000, at 4 (filed Jan. 7, 2013); National 

Grid Comments, Docket No. AD12-12-000, at 8 (filed Jan. 7, 2013).

14 See, e.g., Spectra Comments, Docket No. AD12-12-000, at 3-5 (filed Jan. 7, 

2013); MISO Comments, Docket No. AD12-12-000, at 5 (filed Jan. 7, 2013); INGAA 

Comments, Docket No. AD12-12-000, at 9-11 (filed Jan. 7, 2013); ISO-NE Comments, 

Docket No. AD12-12-000, at 4 (filed Jan. 7, 2013); PJM Comments, Docket No. AD12-

12-000, at 4 (filed Jan. 11, 2013).
Docket No. RM13-17-000 - 7 -

is some risk that a pipeline could be subject to an allegation of undue discrimination in 

violation of section 4 of the Natural Gas Act (NGA) if it provides an electric transmission 

operator with non-public transmission information with respect to any transportation or 

sale of natural gas without contemporaneously disclosing that information to all other 

shippers or potential shippers.15 MidAmerican and AGA also expressed concerns that the 

Standards of Conduct16 or the Commission’s prohibition on “undue discrimination” may 

present a real or perceived barrier to effective participation in certain table-top reliability 

exercises or emergency or system planning exercises among regional stakeholders. 17

Accordingly, INGAA and several others requested that, in order to facilitate the exchange 

of information between transmission operators, the Commission should more clearly 

identify the types of operational information that may be shared between transmission 

operators and clarify that the sharing of such information does not violate the prohibition 

against undue discrimination.18 

 15 INGAA Comments, AD12-12-000, at 11 (filed Jan. 7, 2013).

16 18 CFR Part 358 (2012).

17 MidAmerican Comments, Docket No. AD12-12-000, at 8 (filed Jan. 7, 2013); 

AGA Comments, Docket No. AD12-12-000, at 8 (filed Jan. 7, 2013).

18 INGAA Comments, Docket No. AD12-12-000, at 11 (filed Jan. 7, 2013). See 

also NYTOs, Docket No. AD12-12-000, at 4, 9 (filed Jan. 7, 2013); MidAmerican 

Comments, Docket No. AD12-12-000, at 10 (filed Jan. 7, 2013); AGA Comments, 

Docket No. AD12-12-000, at 4 (filed Jan. 7, 2013); Spectra Comments, Docket 

No. AD12-12-000, at 5 (filed Jan. 7, 2013).
Docket No. RM13-17-000 - 8 -

8. While electric generators generally did not oppose the sharing of such information, 

they, together with other entities, expressed concern about the communication of 

generator-specific information between an electric transmission operator and a pipeline 

operator without the generator’s knowledge. For example, We Energies asserted that 

excluding the generator operator from discussions between RTOs/ISOs and natural gas 

pipelines regarding the status of a generator’s fuel supplies will increase the risk that 

generator capability will be misrepresented.19 We Energies also stated that a generating

unit’s-specific market sensitive information, such as run times and dispatch levels

provided to a pipeline by the RTO prior to the generator having arranged for any needed 

incremental gas transportation requirements, could provide the pipeline with a 

competitive advantage over the generator in pricing its transportation services to that 

generator.

20 National Grid stated that commercially sensitive information from 

individual generators should not be shared with natural gas pipeline representatives or 

affiliates that sell or buy wholesale electric power or market natural gas.21 

9. Some commenters expressed concern regarding the potential harm to industry 

participants or the potential for improper use of material resulting from increased 

 19 We Energies Comments, Docket No. AD12-12-000, at 3 (filed Jan. 7, 2013).

20 We Energies Comments, Docket No. AD12-12-000, at 5 (filed Jan. 7, 2013).

21 National Grid Comments, Docket No. AD12-12-000, at 8-9 (filed Jan. 7, 2013).
Docket No. RM13-17-000 - 9 -

communications.22 For example, MidAmerican stated that customer specific information 

is commercially sensitive and must be subject to strict limitations, including appropriate 

protocols ensuring that generator unit-specific gas usage and transportation information is 

not publicly posted or disclosed to non-directly connected pipelines. AF&PA stated that 

generally information that is potentially commercially sensitive should only be 

disseminated when there is an articulable and rational reason to expect such exchanges 

would further improve reliability or efficiency on either or both systems.23 In addition, 

APGA argued that transportation information provides the potential for gaming, market 

manipulation, and other violations of the NGA and Federal Power Act (FPA). EPSA 

asserted that, when system operators share information with natural gas pipelines, 

pipelines should have appropriate limitations on who has access to this information. 

EPSA stated that specific guidelines are needed when the same person at a pipeline who 

sells and schedules capacity could have access to shared information.24 NYTOs noted 

that, since generators and fuel managers in New York are merchant entities, there is 

potential for misuse of confidential information (for example, whether a generator is 

 22 See, e.g., MidAmerican Comments, Docket No. AD12-12-000, at 10 (filed 

Jan. 7, 2013); APGA Comments, Docket No. AD12-12-000, at 5 (filed Jan. 7, 2013); 

AEP Comments, Docket No. AD12-12-000, at 7 (filed Jan. 7, 2013); AF&PA Comments, 

Docket No. AD12-12-000, at 2 (filed Jan. 7, 2013); EPSA Comments, Docket No. AD12-

12-000, at 7 (filed Jan. 7, 2013).

23 AF&PA Comments, Docket No. AD12-12-000, at 5 (filed Jan. 7, 2013). 

24 EPSA Comments, Docket No. AD12-12-000, at 7 (filed Jan. 7, 2013).
Docket No. RM13-17-000 - 10 -

critical to maintain reliability) to the extent it is shared as part of these communications. 25 

NYTOs stated that they would not support disclosure of market-sensitive information 

unless strong measures were in place to prevent and punish market abuses.

II. Discussion 

10. Communications occur today in the normal course of business between 

transmission operators and those communications serve a valuable and necessary purpose 

to help ensure reliability. In an effort to provide certainty to the industry and remove 

barriers –real or perceived—to the sharing of non-public, operational information, the 

Commission proposes to revise its regulations to authorize expressly the exchange of 

non-public, operational information between electric transmission operators and interstate 

natural gas pipelines. The Commission intends to remove any barriers to the sharing of 

non-public, operational information, not just during emergencies, but also for day-to-day 

operations, planned outages, and scheduled maintenance. However, in consideration of 

the concerns regarding the exchange of non-public operational information, the 

Commission also proposes to adopt a No-Conduit Rule which prohibits recipients of the

non-public, operational information from subsequently disclosing or being a conduit for 

subsequently disclosing that information to any other entity.26 Moreover, to the extent 

 25 NYTOs Comments, Docket No. AD12-12-000, at 7 (filed Jan. 7, 2013).

26 Conduct and Affiliate Restrictions. See 18 CFR 358.6 and 18 CFR 35.39(g). 

Moreover, the Commission determined in Order No. 717 that the No-Conduit Rule was a 

critical component of the regulatory scheme of the Standards of Conduct. See Standards 

 

 

(continued...)
Docket No. RM13-17-000 - 11 -

that an electric transmission operator or pipeline has a tariff provision which precludes a

communication that would otherwise be authorized under the proposed regulations, it 

would have to make a filing under the FPA or NGA to revise that provision to permit 

such exchanges of information. 

11. The Commission has structured the proposed regulations to provide significant 

flexibility to individual transmission operators—who have the most insight and 

knowledge of their systems—to determine what non-public operational information, if 

any, would promote reliable service on their systems, without fear of violating the 

Commission’s prohibitions on undue discrimination and undue preference or such an 

exchange being considered an unjust or unreasonable practice. Notably, the Commission 

is proposing a permissive approach to the sharing of non-public information. To the 

extent this voluntary approach proves inadequate to promote reliable service or

operational planning on natural gas pipelines and electric transmission systems, the 

Commission may revisit the need to require certain communications or information 

sharing between transmission operators in the future.

A. Undue Discrimination or Preference

12. To provide context for the proposed regulations discussed below, the Commission 

first reviews the existing statutory and regulatory requirements applicable to 

 

of Conduct for Transmission Providers, Order No. 717, 73 FR 63796 (Oct. 27, 2008), 

FERC Stats. & Regs. ¶ 31,280, at P 198 (2008).
Docket No. RM13-17-000 - 12 -

communications between the gas and electric industries. Both the FPA and the 

comparable provisions of the NGA prohibit undue discrimination or preference.27 

Specifically, section 205(b) of the FPA provides that no public utility:

shall, with respect to any transmission or sale subject to the 

jurisdiction of the Commission, (1) make or grant any undue

preference or advantage to any person or subject any person 

to any undue prejudice or disadvantage, or (2) maintain any 

unreasonable difference in rates, charges, service, facilities, or 

in any other respect, either as between localities or as between 

classes of service.28 

13. FPA section 205(b) and NGA section 4(b) do not forbid preferences, advantages 

and prejudices per se.29 Rather, FPA section 205(b) and NGA section 4(b) prohibit 

“undue” preferences, advantages and prejudices.30 A difference in treatment is not 

unduly discriminatory when the difference is justified.31 In interpreting FPA section 

205(b) and NGA section 4(b), the courts have held that transmission providers cannot 

 27 16 U.S.C. 824d(b) (2006); 15 U.S.C. 717c(b) (2006). 

28 The language of the NGA is virtually identical. 15 U.S.C. 717c(b) (2006).

29 See, e.g., Cities of Bethany v. FERC, 727 F.2d 1131, 1139 (D.C. Cir.), cert. 

denied, 469 U.S. 917, 105 S.Ct. 293, 83 L.Ed.2d 229 (1984).

30 See, e.g., Boroughs of Chambersburg v. FERC, 580 F.2d 573, 577 (D.C. Cir. 

1978).

31 See Metropolitan Edison Co. v. FERC, 595 F.2d 851, 857 (D.C. Cir. 1979). See 

also Transmission Agency of N. California v. FERC, 628 F.3d 538, 549 (D.C. Cir. 2010)

(citing Ark. Elec. Energy Consumers v. FERC, 290 F.3d 362, 367 (D.C. Cir. 2002) and

Elec. Consumers Res. Council v. FERC, 747 F.2d 1511, 1515 (D.C. Cir. 1984)).
Docket No. RM13-17-000 - 13 -

treat similarly situated customers differently32 and that the disparate treatment of two 

customer classes does not in and of itself result in an undue preference or advantage or in 

an unreasonable difference in service if the customer classes are not similarly situated. 33 

Whether a preference is “undue” depends on the specific facts of the behavior and the 

circumstances to determine whether disparities exist and whether those disparities are 

rationally justified.34 The Commission’s Standards of Conduct seek to deter undue 

discrimination by prohibiting the exchanges of information between transmission 

providers and their marketing functions in certain situations.35 The comments in the 

proceeding in Docket No. AD12-12-000 focus on the applicability of both the statutory 

prohibitions on undue discrimination and the Standards of Conduct.

14. The first issue is whether the statutory restrictions in the FPA and NGA regarding 

undue discrimination or unjust and unreasonable acts and practices prevent the exchange 

of information between operators of pipeline transportation systems and electric 

 32 See Transmission Agency of N. California v. FERC, 628 F.3d at 549 (citing 

Sacramento Mun. Util. Dist. v. FERC, 474 F.3d 797, 802 (D.C. Cir. 2007)).

33 See, e.g., Sw. Elec. Coop., Inc. v. FERC, 347 F.3d 975, 981 (D.C. Cir.

2003). See also Michigan Consolidated Gas Co. v. FPC, 203 F.2d 895, 901 (3d Cir. 

1953) and Complex Consol. Edison Co. of New York, Inc. v. FERC, 165 F.3d 992, 

1012 (D.C. Cir. 1999).

34 See St. Michaels Utilities Comm'n v. Fed. Power Comm'n, 377 F.2d 912, 915 

(4th Cir. 1967). 

35 Order No. 717, FERC Stats. & Regs. ¶ 31,280 at P 3.
Docket No. RM13-17-000 - 14 -

transmission operators. The Commission believes that the sharing of non-public, 

operational information between public utilities and natural gas pipelines for the purpose 

of promoting reliable service or operational planning is reasonable and not unduly 

discriminatory or preferential. The undue discrimination provisions apply to ensure that 

similarly situated customers are not subject to disparate rates or terms and conditions of 

service. As discussed below, transmission operators are not similarly situated to other 

customers because they require access to non-public scheduling and other types of 

information from a variety of sources to help them ensure the reliability and integrity of 

the transportation and transmission systems. In addition, natural gas pipelines are 

generally not customers of electric transmission operators. Likewise, in the case of 

RTOs/ISOs, they are not shippers on pipelines. We recognize that some vertically 

integrated transmission owners may have marketing function employees or affiliates, 

such as generators or local distribution companies who handle gas transactions. 

However, putting in place the proposed No-Conduit rule will serve as a safeguard to 

ensure that the transmission owners comply with the prohibitions against undue 

discrimination or preference with respect to their marketing function or affiliated 

entities.

36

 36 The Standards of Conduct at 18 CFR 358.6 and 358.7 govern the preferential 

sharing of transmission function information from a transmission provider to its 

marketing function employees as defined in 18 CFR 358.3(c).
Docket No. RM13-17-000 - 15 -

15. In order to operate natural gas pipelines and electric transmission systems 

effectively, transmission operators historically and necessarily have shared non-public 

information with other parties operating transportation or transmission facilities. For 

example, pipeline operators routinely exchange nomination and scheduling information 

with other pipeline operators and with upstream and downstream entities (that may be 

shippers on the pipeline) to confirm transportation nomination requests and to coordinate 

flows between the parties.37 Transmitting electric utilities similarly coordinate the 

sharing of non-public interchange schedule information on a routine basis through

mechanisms such as, for example, e-Tags.38 This coordination helps ensure the safe and 

reliable transmission of electric power across a region. 

 37 The nomination process initiates the flow of gas with the natural gas 

transportation service provider. The natural gas transportation service provider then 

confirms the flow of natural gas with the corresponding upstream and downstream 

entities. Once the natural gas quantities are confirmed, the natural gas transportation 

service provider sends the scheduled quantities information to the shipper.

38

e-Tags are used by applicable Balancing Authorities, Reliability Coordinators, 

Interchange Authorities, Transmission Service Providers, Purchasing-Selling Entities, 

Generator-Providing Entities, and Load-Serving Entities to coordinate interchange 

schedules. See, e.g., NAESB Wholesale Electric Quadrant (WEQ) Business Practice 

Standards (Coordinate Interchange) requirement 004-2 (“Until other means are adopted 

by NAESB, the primary method of submitting the RFI [Request for Interchange] shall be 

an e-Tag communicated to and managed by the Sink BA’s [Balancing Authority] 

registered e-Tag authority service using protocols compliant with the Version 1.8.1 

Electronic Tagging Functional Specification.”) and applicability section ("The 

Coordinate Interchange Business Practice Standards apply to BA [Balancing Authority], 

RC [Reliability Coordinator], IA [Interchange Authority], Transmission Service Provider, 

PSE [Purchasing-Selling Entity], GPE [Generator-Providing Entity], Load-Serving Entity 

 

 

(continued...)
Docket No. RM13-17-000 - 16 -

16. Likewise, in Order No. 698, the Commission authorized the exchange of

operational information between the industries.39 There, the Commission incorporated 

North American Energy Standards Board (NAESB) Wholesale Gas Quadrant (WGQ) 

Standard 0.3.12 into its regulations. This standard requires a generator and its directly 

connected natural gas pipeline(s) to “establish procedures to communicate material 

changes in circumstances that may impact hourly flow rates.”40 In addition, this standard 

ensures that natural gas pipelines have relevant planning information to assist in 

maintaining the operational integrity and reliability of pipeline service, as well as to 

provide gas-fired power plant operators with information as to whether hourly flow 

deviations can be honored. NAESB Wholesale Electric Quadrant (WEQ) Standard 011-

 

[LSE], and any TPSE [a PSE whose transmission approval rights are cited].") NAESB 

WEQ Business Practice Standards (Version 003), published July 31, 2012.

39 Standards for Business Practices for Interstate Natural Gas Pipelines; 

Standards for Business Practices for Public Utilities, Order No. 698, FERC Stats. 

& Regs. ¶ 31,251 (2007),order on clarification and reh’g, Order No. 698-A, 121 FERC 

¶ 61,264 (2007). In Order No. 698, the Commission incorporated by reference standards 

adopted by NAESB.

40 NAESB WGQ Version 2.0 Business Practice Standard 0.3.12. See also 

Standards for Business Practices for Interstate Natural Gas Pipelines, Order No. 587-V, 

FERC Stats. & Regs. ¶ 31,332 (cross-referenced at 140 FERC ¶ 61,036) (2012), 

(incorporating by reference the Version 2.0 WGQ Business Practice Standards) (to be 

codified at 18 CFR 284.12).
Docket No. RM13-17-000 - 17 -

1.6, also incorporated in the Commission’s regulations,41 requires that ISOs, RTOs, and 

other independent system operators establish written operational communication 

procedures with the appropriate pipeline to be implemented when an extreme condition 

occurs. 

17. Sharing of operational information between natural gas pipelines and electric 

transmission operators is akin to the sharing of operational information among 

interconnected parties. Both the natural gas pipelines and the electric transmission 

operators need to know whether scheduled transactions on their respective systems will 

be honored by the other. This sharing of information is crucial to the effective operations 

of both systems and is not the type of private sharing of information with select 

customers at which the undue discrimination provisions of the respective statutes were 

targeted.

18. There are already several safeguards in place to protect against undue 

discrimination. For example, while non-public operational information may be useful for 

planning, transmission operators cannot deviate from the terms of their tariffs, and cannot 

operate in an unduly discriminatory manner.42 Interstate natural gas pipelines and 

 41 18 CFR Part 38 (2012).

42 See ISO New England Inc., 142 FERC ¶ 61,058, at P 23 (2013) (available 

capacity must be dispatched “consistent with the pipeline’s tariff” and “[t]he pipelines are 

required to allocate available capacity on a not unduly discriminatory basis among the 

various requestors of capacity”).
Docket No. RM13-17-000 - 18 -

electric transmission operators are also subject to the same limitations on sharing 

information with their marketing function employees as provided under the Standards of 

Conduct.43 Moreover, we are proposing additional safeguards as discussed below.

19. Based on the critical need for such exchanges of information to promote the 

reliability and the operational integrity of industries the Commission regulates, and the 

protections against undue discrimination, we find that the exchange of non-public, 

operational information between transmission operators does not violate the statutory 

prohibitions on undue discrimination or preference as discussed herein.

B. Clarification Regarding Table-Top Exercises

20. Several comments requested clarification of the applicability of the Standards of 

Conduct and statutory prohibition against undue discrimination to exchanges of 

information with regard to table-top exercises involving marketing affiliates of 

transmission providers and inter-industry participants. The Standards of Conduct govern, 

among other things, communications between interstate natural gas pipelines and their 

employees and affiliates that engage in marketing functions, and public utilities that own 

or operate electric transmission facilities and their employees and affiliates that engage in 

marketing functions.44 As the Commission has previously stated, the Standards of 

Conduct apply to communications only within the same organization (in other words, 

 43 18 CFR 358.6 and 358.7.

44 18 CFR 358.1(a) and (b) (2012). 
Docket No. RM13-17-000 - 19 -

between the affiliated entities of a single corporate family) and therefore, do not limit 

communications between unaffiliated pipelines and electric transmission providers. 45

21. Under the Standards of Conduct, marketing function employees may participate in 

table-top exercises that include a wide range of industry participants who will have equal 

access to non-public transmission information. However, as the Commission has 

explained, non-public transmission information cannot be provided during private tabletop exercises involving only the transmission provider and marketing function employees 

since they would receive preferential access to non-public transmission information or

preferential access to transmission facilities.46

C. Revisions to Regulations 

22. Consistent with the foregoing discussion of existing statutes and regulations, to 

provide additional certainty to transmission operators regarding the permissibility of

sharing of non-public, operational information, the Commission is proposing to revise its

regulations to authorize expressly the exchange of non-public, operational information 

between electric transmission operators and interstate natural gas pipelines.

47 Proposed 

 45 November 15 Order, 141 FERC ¶ 61,125 at P 6. See also 18 CFR 358.1.

46 See Ameren Services Co., et al., 86 FERC ¶ 61,079, at 61,290 (1999). See also 

South Carolina Electric and Gas Co., 111 FERC ¶ 61,217 (2005).

47 The proposed regulations also recognize the existing exchanges of information 

among pipelines and among electric transmission operators that promote reliable service 

or operational planning.
Docket No. RM13-17-000 - 20 -

section 38.3 applies to any public utility that owns, operates, or controls facilities used for 

the transmission of electric energy in interstate commerce subject to a No-Conduit Rule. 

Similar changes are proposed in section 284.12(b), which applies to any interstate 

pipeline.48 

1. Permissible Disclosure of Non-Public, Operational Information

23. Proposed sections 38.3(a) and 284.12(b)(4) authorize public utilities providing 

transmission service and natural gas pipelines to share non-public, operational 

information when such information is for the purpose of promoting reliable service or

operational planning. The term “non-public, operational information” is information that 

is not publicly posted, yet helps transmission operators to operate and maintain either a 

reliable pipeline system or a reliable electric transmission system on a day-to-day basis, 

as well as during emergency conditions or for operational planning. Non-public, 

operational information may also include generator, pipeline, or transmission-specific 

information. In using the term “non-public, operational information,” the Commission 

intends that transmission operators would be permitted to share information dealing with 

actual, anticipated, or potential effects on the ability to provide electric and gas service 

based on the respective operator’s experience and understanding of the operational 

 48 While the Commission also regulates interstate service provided by intrastate 

pipelines, Hinshaw pipelines, and local distribution companies, the companies themselves 

are subject to state regulation and may exchange information subject to whatever state 

regulations govern their operations.
Docket No. RM13-17-000 - 21 -

capability and customer demands on their respective systems. Examples of such 

information include, but are not limited to, the following types of information: 

• real-time and anticipated system conditions that have or are anticipated to impact 

natural gas transportation by changing near term gas flows; 

• actual and anticipated electric service interruptions to gas compressor locations;

• verification that there is sufficient pipeline operational capability available at a 

specific delivery point to change the quantity of natural gas delivered to the 

generator as identified by the electric transmission operator; 

• actual and projected gas transportation restrictions to electric generators; 

• real-time actual flow and point operational capacity data at all receipt and delivery 

points; real-time pipeline pressure at all receipt and delivery points; 

• nominated and scheduled quantities of shippers who are or who supply gas-fired 

generators; and,

• scheduled dates and duration of generator, pipeline, and transmission maintenance 

and planned outages.

 

24. The Commission is not proposing a specific list of non-public, operational 

information that can be shared in order to provide flexibility to individual operators—

who have the most insight and knowledge of their systems—to determine what 

operational information, if any, would promote reliable service or operational planning

on their systems. The Commission seeks comment on the scope of the non-public, 

operational information transmission operators may share under the proposed regulations, 

including the specific categories of information identified above. 

25. The Commission recognizes that the provisions of this proposal apply only to 

communications between pipelines and electric transmission operators and that natural 

gas-fired generators may have relevant information regarding their capabilities to acquire 

natural gas not available to a pipeline. Therefore, the Commission seeks comment on 

whether additional regulations are needed to require a generator to share necessary 
Docket No. RM13-17-000 - 22 -

information with its electric transmission operator to inform it of the possibility that the 

generator’s natural gas service may be disrupted. For example, the Commission seeks 

comment on whether a generator should be required, at the request of the electric 

transmission operator, to provide its electric transmission operator with information 

pertaining to any communications received from a natural gas pipeline regarding 

potential failures by the generator to conform to flow rates or nominations. In addition, 

the Commission seeks comment on whether the proposed rule should require that, to the 

extent the non-public, operational information exchanged between transmission operators

involves customer-specific information (such as information about individual generators), 

the transmission operators must seek to include the customer as part of a three-way 

communication.49 If so, the Commission seeks comment on how such a requirement 

could be implemented.

2. Limitations on Disclosure

26. The Commission is proposing several protections, in addition to the existing 

protections described above, to ensure that any non-public, operational information 

shared under these proposed regulations remains confidential, and to ensure that 

information is shared among transmission owners in a manner that is consistent with the 

prohibition on undue discrimination. Proposed sections 38.3(b) and 284.12(b)(4)(ii)

 49 The Commission notes that communications between transmission operators 

and generators are not covered by this proposed rule; transmission operators may always 

discuss generator-specific information with the relevant generator.
Docket No. RM13-17-000 - 23 -

adopt a No-Conduit Rule that prohibits all public utilities and natural gas pipelines, as 

well as their employees, contractors, consultants, or agents, from disclosing, or using 

anyone as a conduit for the disclosure of, non-public, operational information they

receive under this proposed rule to a third party.50 Sections 38.3(b) and 284.12.(b)(4)(ii) 

similarly prohibits the disclosure of such non-public, operational information to 

marketing function employees, as that term is defined in § 358.3 of the Commission’s 

regulations.

51 Proposed sections 38.3(b) and 284.12(b)(4)(ii) do not prohibit 

communications between transmission operators covered by this rule. As discussed 

previously, together with the requirements that natural gas pipelines and transmission 

owners abide by their tariffs, these additional disclosure limitations should adequately 

protect against the harmful disclosure of non-public information and undue 

discrimination.52

 50 The Commission does not believe the existing No-Conduit Rule under the 

Standards of Conduct will sufficiently limit the disclosure of the information received 

under this proposed rule. The proposed No-Conduit Rule has a broader prohibition on 

disclosure, since it applies to all third parties, not just marketing function employees. 

Furthermore, the Standards of Conduct, and thus the No-Conduit Rule under the 

Standards of Conduct, do not apply to RTOs/ISOs. Therefore, the Commission is 

proposing a No-Conduit Rule in this part of the regulations that is tailored to the entities 

and information covered by the proposed rule, and extends the disclosure prohibition to 

non-affiliates.

51 Since RTOs/ISOs do not have marketing function employees as defined in the 

Standards of Condut, this provision would not apply to them. 

52 Unauthorized disclosure of any non-public, operational information may subject 

the entity or individual making the prohibited disclosure to the enforcement provisions of 

 

 

(continued...)
Docket No. RM13-17-000 - 24 -

27. We Energies and EPSA expressed concerns that generator-specific non-public 

information provided to a pipeline by an electric transmission operator prior to the 

generator having arranged for any needed incremental gas transportation requirements 

could provide the pipeline with a competitive advantage over the generator in pricing 

transportation services. We see no need to propose additional protections regarding 

pipeline transportation at this time. Interstate pipelines are required to allocate service, 

on a not unduly discriminatory basis, based on their tariffs, at a rate not exceeding the just 

and reasonable rate on file. Pipelines are not required to discount services, and if they 

choose to discount, are permitted to obtain information from any source to demonstrate 

that the shipper requesting the discount has competitive alternatives.53

III. Information Collection Statement

28. The following collection of information contained in the Proposed Rule is subject 

to review by the Office of Management and Budget (OMB) under section 3507(d) of the 

 

the FPA and NGA, including potential civil penalties. See section 22 of the NGA, 

15 U.S.C. 717t2-1 (2006), and section 316A of the FPA, 16 U.S.C. 825o-1 (2006).

53 See Associated Gas Distributors v. FERC, 824 F.2d 981 (D.C. Cir. 1987) 

(permitting selective discounting only when justified by competitive alternatives and 

elastic demand conditions); Williston Basin Interstate Pipeline Co., 85 FERC ¶ 61,247

(1998). Consistent with that policy, in the next rate case after providing discounts, the 

Commission only permits pipelines to reduce their rate design volumes to reflect 

discounting upon a showing that the discounts they offered were required by competition. 

See, e.g., Panhandle Eastern Pipe Line Co., Opinion No. 395, 71 FERC ¶ 61,228, at 

61,867 (1995) (requiring documentation from its customers justifying their need for any 

discounts that they request); Panhandle Eastern Pipe Line Co., Opinion No. 404, 

74 FERC ¶ 61,109, at 61,405 (1996).
Docket No. RM13-17-000 - 25 -

Paperwork Reduction Act of 1995 (PRA).54 OMB’s regulations require that OMB 

approve certain reporting and recordkeeping requirements (collections of information). 55 

Upon approval of a collection of information, OMB will assign an OMB control number 

and expiration date. Respondents subject to the information collection requirements of 

this rule will not be penalized for failing to respond to this collection of information 

unless the collection of information displays a valid OMB control number.

29. The Commission will submit the information collection requirements to OMB for 

its review and approval under section 3507(d) of the PRA. The communications 

permitted under this proposed rule are not mandatory. The proposed rule would clarify 

that the requirements of the FPA and NGA do not prohibit certain voluntary 

communications between transmission providers.56 Comments are solicited on the need 

for this information, whether the information will have practical utility, the accuracy of 

the provided burden estimate, ways to enhance the quality, utility, and clarity of the 

 54 44 U.S.C. 3507(d) (2006).

55 5 CFR 1320.11 (2012).

56 The OMB regulations, 5 CFR 1320.3, provide that “voluntary” collections of 

information must be reported to OMB. The regulations do not define what is meant by 

voluntary, but it appears that the term was included to ensure review of agency’s issuing 

voluntary surveys to the public. See J. Lubbers, Paperwork Redux: The (Stronger) 

Paperwork Reduction Act of 1995, 49 Admin, L. Rev. 111,119 (1997). While this 

justification for the requirement does not appear to apply to an interpretation of a 

statutory requirement, we nonetheless are submitting this NOPR to OMB as a collection 

of information.
Docket No. RM13-17-000 - 26 -

information to be collected, and any suggested methods for minimizing the respondent’s 

burden, including the use of automated information techniques.

30. Public Reporting Burden: The proposed communications and information sharing 

are voluntary, take place between various industry entities (and are not submitted to the 

Commission), and are intended to promote reliable service or operational planning. 

While the extent of such communications likely will vary significantly across the 

country, the following estimates represent an expected average. The annual estimates 

reflect burden for operational contacts and emergencies.
Docket No. RM13-17-000 - 27 -

FERC-923, Communication of Operational Information Between 

Natural Gas Pipelines and Electricity Transmission Operators,

as proposed in NOPR in Docket No. RM13-1757

Type of Entity

(1)

No. of 

Respondents 

(2)

Number of 

Responses 

Per 

Respondent58

(3)

Average

Burden 

Hours 

per 

Response

(4)

Total Annual 

Burden Hours

(2)*(3)*(4)=(5)

Total Annual Cost)59

(5)*($60.41/hr.)=(6)

Public Utility 

Transmission 

Provider 13260 12 0.50 792 $47,845

Interstate Natural 

Gas Pipelines 13761 12 0.50 822 $49,657

Total 269 12 0.50 1,614 $97,502

Title: Communication of Operational Information between Natural Gas Pipelines and 

Electricity Transmission Operators.

Action: Proposed FERC-923.

 57 Columns 5 and 6 are rounded.

58 The Commission estimates an annual average per entity of 12 responses 

(including electricity and gas emergency and/or operational contacts). 

59 The hourly costs (for salary plus benefits) are based on the Bureau of Labor 

Statistics Occupational Outlook Handbook, 2012-2013 edition (at 

http://www.bls.gov/ooh/). The estimated costs are $125,647 annually or $60.41 hourly. 

60 Of the 132 public utility transmission providers, 5 are considered “small” using 

the SBA definition.

61 The 2012 filings of the Forms 2 and 2A indicated that there are 137 interstate 

natural gas pipelines. Of those pipelines, eight (8) are considered small using the 

definition of the Small Business Administration (at 13 CFR 121.301), including the 

affiliate.
Docket No. RM13-17-000 - 28 -

OMB Control No.: To be determined (1902-TBD).

Respondents: Public electricity transmission providers; interstate natural gas pipelines.

Frequency of Responses: As needed.

Necessity of the Information: In this NOPR, the Commission is seeking comment on a 

proposal to revise Parts 38 and 284 of the Commission’s regulations to authorize electric 

transmission providers and interstate natural gas pipelines to share non-public, 

operational information for the purpose of promoting reliable service and operational 

planning. 

31. This proposal is intended to address industry concerns and thereby remove any 

barriers, real or perceived, to electric transmission operators and natural gas pipelines 

sharing necessary information. The Commission is not requiring that data be submitted 

to the Commission or to third parties. Rather, the Commission is removing actual or 

perceived barriers to voluntary communications and information sharing that might 

otherwise have been part of the normal business process. 

32. Internal Review: The Commission will submit the information collection 

requirements to OMB for its review and approval under section 3507(d) of the PRA. 

Comments are solicited on the need and utility for this information, and the accuracy of 

the provided burden estimate. 

33. Interested persons may obtain information on the reporting requirements by 

contacting the following: Federal Energy Regulatory Commission, 888 First Street, NE, 

Washington, DC 20426 [Attention: Ellen Brown, Office of the Executive Director, 

e-mail: DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873].
Docket No. RM13-17-000 - 29 -

Please send comments concerning the collection of information and the associated burden 

estimates to the Commission, and to the Office of Management and Budget, Office of 

Information and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer 

for the Federal Energy Regulatory Commission, phone: (202) 395-4638, fax: (202) 395-

7285]. For security reasons, comments to OMB should be submitted by e-mail to: 

oira_submission@omb.eop.gov. Comments submitted to OMB should include Docket 

Number RM13-17, FERC-923, and OMB Control Number 1902-TBD.

IV. Environmental Analysis

34. The Commission is required to prepare an Environmental Assessment or an 

Environmental Impact Statement for any action that may have a significant adverse effect 

on the human environment.62 The Commission concludes that neither an Environmental 

Assessment nor an Environmental Impact Statement is required for this Final Rule under 

section 380.4(a)(2)(ii) of the Commission’s regulations, which provides a categorical 

exemption for proposals for legislation and promulgation of rules that are clarifying, 

corrective, or procedural, or that do not substantively change the effect of legislation or 

regulations being amended.

63

 62 Regulations Implementing the National Environmental Policy Act of 1969, 

Order No. 486, 52 FR 47,897 (Dec. 17, 1987), FERC Stats. & Regs., Regulations 

Preambles 1986-1990 ¶ 30,783 (1987).

63 18 CFR 380.4(a)(2)(ii) (2012).
Docket No. RM13-17-000 - 30 -

V. Regulatory Flexibility Act Certification

35. The Regulatory Flexibility Act of 1980 (RFA)64 generally requires a description 

and analysis of proposed rules that will have significant economic impact on a substantial 

number of small entities. The RFA mandates consideration of regulatory alternatives that 

accomplish the stated objectives of a proposed rule and that minimize any significant 

economic impact on a substantial number of small entities. The Small Business 

Administration’s (SBA’s) Office of Size Standards develops the numerical definition of a 

small business.65 The SBA has established a size standard, for electric utilities, electric 

power distribution, and electric bulk power transmission and control, stating that a firm is 

small if, including its affiliates, it is primarily engaged in the transmission, generation 

and/or distribution of electric energy for sale and its total electric output for the preceding 

fiscal year did not exceed four million megawatt hours.66 For pipeline transportation of 

natural gas, the SBA defines a small entity as having a maximum annual receipt of $25.5 

million dollars. 67 The Commission estimates a total of 13 “small” entities68 (or 5% out 

of the total 269 entities) affected by the NOPR.

 64 5 U.S.C. 601-612 (2006).

65 13 CFR 121.101 (2012).

66 13 CFR 121.201, Sector 22, Subsector 221, Utilities & n.1. 

67 Based on 13 CFR 121.201, Sectors 48-49, Subsector 486, Pipeline 

Transportation, the annual receipts indicate the maximum allowed for a concern and its 

affiliates to be considered “small.”
Docket No. RM13-17-000 - 31 -

36. To address industry concerns, the Commission is removing actual or perceived 

barriers to communications and information sharing (that might otherwise have been part 

of the normal business process). This proposal will enable entities of all sizes to 

communicate voluntarily and to share non-public, operational information for the purpose 

of promoting reliable service or operational planning, thereby easing and improving the 

normal business process. The estimated annual cost of the proposal for each respondent, 

large or small, is $362.46.69 Accordingly, the Commission certifies that the revised 

requirements set forth in the Notice of Proposed Rulemaking will not have a significant 

economic impact on a substantial number of small entities, and no regulatory flexibility 

analysis is required.

VI. Comment Procedures

37. The Commission invites interested persons to submit comments on the matters and 

issues proposed in this notice to be adopted, including any related matters or alternative 

proposals that commenters may wish to discuss. Comments are due [INSERT DATE 30 

days after publication in the FEDERAL REGISTER]. Comments must refer to 

 68 Based on the SBA definitions and including affiliates, the number of “small” 

entities is estimated to be:

• for public utility transmission providers, 5 small public utilities; and

• for natural gas pipelines, 8 small interstate natural gas pipelines. 69 The estimated annual cost per respondent is $362.46 (12 annual responses X 

0.50hour/response X $60.41/hour).
Docket No. RM13-17-000 - 32 -

Docket No. RM13-17, and must include the commenter's name, the organization they 

represent, if applicable, and their address in their comments.

38. The Commission encourages comments to be filed electronically via the eFiling 

link on the Commission's web site at http://www.ferc.gov. The Commission accepts 

most standard word processing formats. Documents created electronically using word 

processing software should be filed in native applications or print-to-PDF format and not 

in a scanned format. Commenters filing electronically do not need to make a paper 

filing.

39. Commenters that are not able to file comments electronically must send an 

original of their comments to: Federal Energy Regulatory Commission, Secretary of the 

Commission, 888 First Street NE, Washington, DC 20426.

40. All comments will be placed in the Commission's public files and may be viewed, 

printed, or downloaded remotely as described in the Document Availability section 

below. Commenters on this proposal are not required to serve copies of their comments 

on other commenters.

VII. Document Availability

41. In addition to publishing the full text of this document in the Federal Register, the 

Commission provides all interested persons an opportunity to view and/or print the 

contents of this document via the Internet through the Commission's Home Page 

(http://www.ferc.gov) and in the Commission's Public Reference Room during normal 

business hours (8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street, NE, Room 2A, 

Washington DC 20426.
Docket No. RM13-17-000 - 33 -

42. From the Commission's Home Page on the Internet, this information is available 

on eLibrary. The full text of this document is available on eLibrary in PDF and 

Microsoft Word format for viewing, printing, and/or downloading. To access this 

document in eLibrary, type the docket number excluding the last three digits of this 

document in the docket number field.

43. User assistance is available for eLibrary and the Commission’s website during 

normal business hours from the Commission’s Online Support at 202-502-6652 (toll free 

at 1-866-208-3676) or email at ferconlinesupport@ferc.gov, or the Public Reference 

Room at (202) 502-8371, TTY (202) 502-8659. E-mail the Public Reference Room 

at public.referenceroom@ferc.gov.

List of subjects in 18 CFR Part 38

Conflict of interests, Electric power plants, Electric utilities, Incorporation by 

reference, Reporting and recordkeeping requirements.

List of subjects in 18 CFR Part 284

Incorporation by Reference, Natural gas, Reporting and recordkeeping requirements

By direction of the Commission.

Nathaniel J. Davis, Sr.,

Deputy Secretary.
Docket No. RM13-17-000 - 34 -

In consideration of the foregoing, the Commission proposes to amend Part 38 and 

Part 284, Chapter I, Title 18, Code of Federal Regulations, as follows:

PART 38 – BUSINESS PRACTICE STANDARDS AND COMMUNICATION 

PROTOCOLS FOR PUBLIC UTILITIES

1. The authority citation for Part 38 continues to read as follows:

Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42 U.S.C. 7101-

7352.

2. The heading of Part 38 is revised to read as follows:

PART 38—STANDARDS FOR PUBLIC UTILITY BUSINESS OPERATIONS 

AND COMMUNICATIONS

§ 38.1 [Removed]

3. Remove § 38.1.

§ 38.2 [Redesignated as § 38.1 ]

4. Redesignate § 38.2 as § 38.1

5. In newly redesignated § 38.1, paragraph (a) is revised to read as follows:

§ 38.1 Incorporation by reference of North American Energy Standards Board 

Wholesale Electric Quadrant standards.

(a) Any public utility that owns, operates, or controls facilities used for the 

transmission of electric energy in interstate commerce or for the sale of electric energy at 

wholesale in interstate commerce and any non-public utility that seeks voluntary 

compliance with jurisdictional transmission tariff reciprocity conditions must comply 

with the following business practice and electronic communication standards 
Docket No. RM13-17-000 - 35 -

promulgated by the North American Energy Standards Board Wholesale Electric 

Quadrant, which are incorporated herein by reference:

* * * * *

6. New § 38.2 is added to read as follows:

§ 38.2 Communication and Information Sharing Among Public Utilities and 

Pipelines

(a) Any public utility that owns, operates, or controls facilities used for the 

transmission of electric energy in interstate commerce is authorized to share non-public, 

operational information with a pipeline, as defined in § 284.12(b)(4), or another public 

utility covered by this section for the purpose of promoting reliable service or operational 

planning. 

(b) Except as permitted in paragraph (a), a public utility, as defined in § 38.2, and 

its employees, contractors, consultants, and agents are prohibited from disclosing, or 

using anyone as a conduit for the disclosure of, non-public, operational information 

received from a pipeline pursuant to § 284.12(b)(4) to a third party or to its marketing 

function employees as that term is defined in § 358.3(d). 

 

PART 284 – CERTAIN SALES AND TRANSPORTATION OF NATURAL GAS 

UNDER THE NATURAL GAS POLICY ACT OF 1978 AND RELATED 

AUTHORITIES

1. The authority citation for Part 284 continues to read as follows:

Authority: 15 U.S.C. 717-717z, 3301-3432; 42 U.S.C. 7101-7352; 43 U.S.C. 

1331-1356.
Docket No. RM13-17-000 - 36 -

2. In § 284.12, paragraph (b)(4) is added to read as follows:

(b) ***

(4) Communication and Information Sharing Among Pipelines and Public 

Utilities. 

(i) A pipeline is authorized to share non-public, operational information with a public 

utility, as defined in § 38.2(a) or another pipeline covered by this section, for the purpose 

of promoting reliable service or operational planning.

(ii) Except as permitted in paragraph (i), a pipeline and its employees, contractors, 

consultants, and agents are prohibited from disclosing, or using anyone as a conduit for 

the disclosure of, non-public, operational information received from a public utility 

pursuant to § 38.2 to a third party or to its marketing function employees as that term is 

defined in § 358.3(d). 
Docket No. RM13-17-000 - 37 -

Note: The following appendix will not appear in the Code of Federal Regulations.

Appendix

LIST OF COMMENTERS AND ABBREVIATIONS

Abbreviation Name

AEP American Electric Power Service Corporation

AF&PA American Forest & Paper Association

AGA American Gas Association

APGA American Public Gas Association

BPA Bonneville Power Administration

CAISO California Independent System Operator Corporation

EPSA Electric Power Supply Association

ERCOT Electric Reliability Council of Texas, Inc.

FES First Energy Solutions

INGAA Interstate Natural Gas Association of America

ISO-NE ISO New England, Inc.

MidAmerican MidAmerican Energy Holdings Company

MISO70 Midwest Independent Transmission System Operator, Inc.

 70 Effective April 26, 2013, MISO changed its name from “Midwest Independent 

Transmission System Operator, Inc.” to “Midcontinent Independent System Operator, 

Inc.”
Docket No. RM13-17-000 - 38 -

MMWEC Massachusetts Municipal Wholesale Electric Company

National Grid National Grid USA, Inc.

NE LDCs New England Local Distribution Companies

NERC North American Electric Reliability Corporation

NYISO New York Independent System Operator

NYTOs New York Transmission Owners

NIPSCO Northern Indiana Public Service Company 

PG&E Pacific Gas and Electric Company

PJM PJM Interconnection, L.L.C.

Texas PUC Public Utility Commission of Texas

SCE Southern California Edison Company

Spectra Spectra Energy Transmission, LLC

SPP Southwest Power Pool, Inc.

We Energies Wisconsin Electric Power Company and Wisconsin Gas LLC