MEMORANDUM OF UNDERSTANDING 

BETWEEN 

THE FEDERAL ENERGY REGULATORY COMMISSION 

AND 

THE ELECTRICITY AND GAS MARKET SURVEILLANCE COMMISSION 

OF JAPAN 

1. The Federal Energy Regulatory Commission (FERC) has exclusive jurisdiction 

within the United States over, among other things, the transmission of electric 

energy in interstate commerce and the sale of electric energy at wholesale in 

interstate commerce by public utilities, as described in section 20 l of the Federal 

Power Act (FPA), 16 U.S.C. § 824; and the transportation of natural gas in 

interstate commerce and certain sales in interstate commerce of natural gas for 

resale as set forth in section l of the Natural Gas Act (NGA), 15 U.S.C. § 717, and 

section 60l(a) of the Natural Gas Policy Act (NGPA), 15 U.S.C. § 343l(a); 

certain other transportation and sales of natural gas authorized pursuant to section 

311 of the NGPA, 15 U.S.C. § 3371; and reliability of the bulk-power system 

pursuant to section 215 of the FPA, 16 U.S.C. § 8240. 

2. The Electricity and Gas Market Surveillance Commission (EGC) was established 

in Japan under the Minister of Economy, Trade and Industry, as described in 

Article 66-2 of the Electricity Business Act, in order to strengthen monitoring of 

the electricity, gas and heat power trading market for the liberalization of energy 

market reform. 

EGC has the authority to: 

( l) collect reports, conduct on-site inspections, provide recommendations to 

businesses, and exercise sole authority in mediation/arbitration; and 

(2) make suggestions/proposals to the Minister of Economy, Trade and 

Industry regarding the policy related to electricity, gas and heat power 

business. 

EGC conducts appropriate monitoring of the electricity, gas and heat power 

market and enforces strict regulations to ensure neutrality of electricity and gas 

networks. 

3. In recognition of the regulatory responsibilities and common interests of both 

FERC and EGC (hereinafter the "Participants") and the benefits to both 

organizations that result from sharing information about the markets they oversee 

and their regulatory experiences and practices, the Participants hereby declare 

their intent to cooperate and share information pursuant to this Memorandum of 

Understanding (MOU). 
4. The Participants intend that cooperation under this MOU may include, but is not 

limited to, the following: 

a. Sharing by EGC, at FERC's request, of information and data related to: 

i. EGC's monitoring and investigative processes and methods; and 

11. EGC's market monitoring and oversight activities, including, but not 

limited to, staff insights and analyses. 

b. Sharing by FERC, at EGC's request, of information and data related to: 

i. FERC's monitoring and investigative processes and methods; and 

11. FERC's market monitoring and oversight activities, including, but not 

limited to, staff insights and analyses. 

c. Discussion of energy issues of mutual interest related to the United States and 

Japanese energy markets. 

d. Joint visits that could include FERC, EGC, and other regulatory entities. 

e. Meetings, webinars, workshops, teleconferences, training activities, and/or 

email exchanges. 

5. Each Participant to this Memorandum of Understanding (hereinafter "MOU") 

should keep any information furnished by the other Participant in accordance with 

this MOU (hereinafter "Information") non-public, and should not disclose or make 

Information provided in confidence available to any other person or entity except 

pursuant to the applicable laws and regulations of the United States and Japan, or 

by consent of the other Participant. 

6. If a third party subsequently requests the Participant receiving Information in 

accordance with this MOU to disclose or otherwise produce Information, the said 

Participant should consult with the other Participant prior to responding to the 

third-party request. 

7. This MOU is not intended to be a binding contract or agreement enforceable in a 

court of law or in an administrative forum, and it is not intended to impose any 

legal commitments on either Participant. ft is intended only to establish a process 

for further cooperation between the Participants. 
L 

8. Nothing contained in this MOU requires either Participant to take any action that 

would be inconsistent with any existing or future laws, regulations, and policy 

directives applicable to it. 

9. The Participants bear their own respective shares of financial costs of participating 

in the activities under this MOU, unless they decide otherwise. All activities are 

subject to approval of funding by each Participant. 

10. This MOU is expected to become operative when signed by each of the 

Participants. This MOU may be modified at any time by the mutual consent of the 

Participants. The Participants intend that any such modification be set forth in 

writing. The Participants intend that either of them may discontinue cooperation 

under the MOU at any time, but should endeavor to provide thirty (30) days 

written notice to the other. During this period, the Participants should make goodfaith efforts to resolve any disagreement. 

Signed at ______ , on September 28, 2016 in the English language. 

Mr. Norman Bay, Chairman Date 

Federal Energy Regulatory Commission 

Dr. Tatsuo Hatta, Chairman Date 

Electricity and Gas Market Surveillance Commission 

Ministry of Economy, Trade and Industry