UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Part 358 

( Docket No. RM07-6-000; Order No. 690 

(Issued January 9, 2007) 

AGENCY: Federal Energy Regulatory Commission. 

ACTION: Interim Rule 

SUMMARY: This interim rule responds to the decision of the United States Court of 

Appeals for the District of Columbia vacating and remanding the standards of conduct 

rule, Order No. 2004, as it relates to interstate natural gas pipelines, in National Fuel Gas 

Supply Corporation v. FERC, 468 F.3d 831 (D.C. Cir. 2006). The court objected to the 

Federal Energy Regulatory Commission’s (Commission’s) expansion of the prior 

standards of conduct to include energy affiliates, and vacated the entire rule as it relates 

to natural gas pipelines. The interim rule repromulgates the standards of conduct that 

were not challenged before the court on an interim basis while the Commission considers 

how to respond to the court’s decision on a permanent basis. 

EFFECTIVE DATE: This rule will become effective January 9, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Deme Anas 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street, N.E. 
Docket No. RM07-6-000 

Washington, D.C. 20426 

Telephone: (202) 502-8178 

E-mail: demetra.anas@ferc.gov 

Stuart Fischer 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

Telephone: (202) 502-8517 

E-mail: stuart.fischer@ferc.gov 

SUPPLEMENTARY INFORMATION:
UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

 

Before Commissioners: Joseph T. Kelliher, Chairman; 

 Suedeen G. Kelly, Marc Spitzer, 

 Philip D. Moeller, and Jon Wellinghoff. 

Standards of Conduct for Transmission Providers Docket No. RM07-6-000 

 

INTERIM RULE 

ORDER NO. 690 

I. Introduction

1. The Federal Energy Regulatory Commission (Commission) is promulgating 

interim standards of conduct regulations that govern the relationship between natural gas 

transmission providers and their marketing affiliates to respond to the decision of the 

United States Court of Appeals for the District of Columbia concerning the Standards of 

Conduct for Transmission Providers under Order No. 2004.1

 In National Fuel Gas 

 

1

 On November 25, 2003, the Commission added Part 358 to the Commission’s 

regulations adopting standards of conduct that apply uniformly to natural gas and electric 

utility transmission providers. Standards of Conduct for Transmission Providers, Order 

No. 2004, FERC Stats. & Regs., Regulations Preambles ¶ 31,155 (2003), order on reh’g, 

Order No. 2004-A, III FERC Stats. & Regs. ¶ 31,161 (2004), 107 FERC ¶ 61,032 

(2004), order on reh’g, Order No. 2004-B, III FERC Stats. & Regs. ¶ 31,166 (2004), 

108 FERC ¶ 61,118 (2004), order on reh’g, Order No. 2004-C, 109 FERC ¶ 61,325 

(2004), order on reh’g, Order No. 2004-D, 110 FERC ¶ 61,320 (2005), vacated and 

remanded as it applies to natural gas pipelines, National Fuel Gas Supply Corporation v. 

FERC, 468 F.3d 831 (D.C. Cir. 2006). 
Docket No. RM07-6-000 2

Supply Corporation v. FERC (National Fuel),2

 the court found that the Commission did 

not support the standards of conduct’s expansive definition of energy affiliates and 

vacated Order Nos. 2004, 2004-A, 2004-B, 2004-C and 2004-D (collectively referred to 

as Order No. 2004) as applied to natural gas pipelines, and remanded the orders to the 

Commission.3

 Specifically, the court rejected the Commission’s attempt to extend the 

standards of conduct beyond pipelines’ relationships with their marketing affiliates to 

govern pipelines’ relationships with numerous non-marketing affiliates, such as 

producers, gatherers, and local distribution companies (energy affiliates). In light of this 

finding, the court found moot the other issues raised on appeal.4

2. The purpose of this order is to repromulgate the standards of conduct not 

challenged in the National Fuel appeal in the interim while the Commission considers 

how to respond to the court’s decision on a permanent basis. To that end the 

Commission plans to issue a Notice of Proposed Rulemaking (NOPR) in the very near 

future. The interim rule will thus help eliminate any uncertainty about how the standards 

of conduct apply to natural gas transmission providers while the Commission develops a 

final rule. 

 2

 National Fuel slip op. at 4 [published cite not yet available] 

3

 National Fuel, slip op. at 4. Order No. 2004 was not appealed as it applies to 

electric utility transmission providers. 

4

 National Fuel, slip op. at 4. 
Docket No. RM07-6-000 3

3. The Commission believes that this interim rule is consistent with the court’s 

decision in National Fuel and meets the standards for an interim rule without notice and 

comment under the Administrative Procedure Act as set out in the court's opinion in MidTex Electric Cooperative, Inc. v. FERC (Mid-Tex).5

 In Mid-Tex, the court reviewed the 

Commission's interim rule regarding the construction work in progress (CWIP) accounts 

for electric utilities that had previously been vacated and remanded by the court.6

 

Despite objections to the interim CWIP rule, the court upheld the interim rule as 

consistent with the letter and spirit of its previous ruling.7

 The court concluded that the 

Commission could reasonably infer that should it become necessary or proper to provide 

a regulation prior to its full reconsideration of the CWIP issue, it may do so if it addresses 

the issues raised by the court.8

4. The Mid-Tex court also concluded that the Commission had good cause to adopt 

an interim rule without prior notice and comment.9

 The Administrative Procedure Act 

permits rulemaking without prior notice and comment when an agency “for good cause 

... finds that notice and public procedure are impracticable, unnecessary, or contrary to 

 5

 Mid-Tex Electric Cooperative, Inc. v. FERC, 822 F.2d 1123 (D.C. Cir. 1987). 

6

 Mid-Tex Electric Cooperative, Inc. v. FERC, 773 F.2d 327 (D.C. Cir. 1985). 

7

 Mid-Tex, at 1129-30. 

8

 Mid-Tex, at 1130. 

9

 Mid-Tex, at 1132. 
Docket No. RM07-6-000 4

the public interest.”10 In its order adopting the interim rule regarding CWIP, the 

Commission emphasized three factors for foregoing prior notice and comment. First, the 

Commission stressed both the interim nature of the CWIP rule and the ongoing public 

process in formulating a permanent CWIP policy. Second, the Commission observed that 

the fundamental policy underlying the CWIP had been accepted by the court. Third, the 

Commission took notice that an interim rule was needed to avoid regulatory confusion. 

5. Guided by the standards in Mid-Tex, the Commission has structured this interim 

rule in accordance with the court’s decision in National Fuel while the Commission 

conducts a public notice and comment process for promulgating a final rule. The 

Commission has adhered to both the letter and the spirit of the court's decision in 

National Fuel by fashioning an interim rule under which the standards of conduct do not 

apply to the relationship between natural gas transmission providers and energy affiliates, 

which is the aspect of the standards of conduct that the court found infirm. 

6. The issuance of this interim rule is also consistent with the three factors articulated 

in Mid-Tex for issuing an interim rule without prior notice and comment under the 

Administrative Procedures Act. First, the Commission stresses that the instant interim 

rule is not intended to serve as a permanent rule and that it is commencing a rulemaking 

proceeding through the issuance in the very near future of a NOPR. Second, the interim 

rule follows both the letter and spirit of the court’s opinion in National Fuel because, for 

 10 5 U.S.C. § 553(b)(3)(B) (2000). 
Docket No. RM07-6-000 5

natural gas pipelines, it eliminates the provisions of Order No. 2004 that were subject to 

appeal and instead adopts provisions originally promulgated in Order No. 497, which was 

upheld in relevant part by the court in Tenneco Gas v. FERC.

11 Third, the Commission 

needs to issue an interim rule to avoid regulatory confusion. When the Commission 

adopted Order No. 2004, it rescinded the standards of conduct promulgated by Order No. 

497.12 Because National Fuel vacated Order No. 2004 as applied to natural gas 

transmission providers, there are no existing regulations governing the relationship 

between natural gas transmission providers and their marketing affiliates. This interim 

rule repromulgates rules from Order No. 2004 that were not challenged on appeal. With 

respect to provisions that were challenged, as noted, the Commission is temporarily readopting the standards of conduct provisions promulgated under Order No. 497. 

Otherwise, there would be no rules in place governing the relationship between natural 

gas pipelines and their affiliates --- a situation which the Commission believes would not 

 11 Inquiry Into Alleged Anticompetitive Practices Related to Marketing Affiliates 

of Interstate Pipelines, Order No. 497, 53 Fed. Reg. 22,139 (1988), FERC Stats. & Regs., 

Regulations Preambles 1986-1990 ¶ 30,820 (1988); Order No. 497-A, order on reh’g, 

54 Fed. Reg. 52,781 (1989), FERC Stats & Regs., Regulations Preambles 1986-1990 

¶ 30,868 (1989); Order No. 497-B, order extending sunset date, 55 Fed.Reg. 53,291 

(1990), FERC Stats. & Regs., Regulations Preambles 1986-1990 ¶ 30,908 (1990); Order 

No. 497-C, order extending sunset date, 57 Fed. Reg. 9 (1992), FERC Stats. & Regs., 

Regulations Preambles 1991-1996 ¶ 30,934 (1991), reh’g denied, 57 Fed. Reg. 5815 

(1992), 58 FERC ¶ 61,139 (1992); aff’d in part and remanded in part sub nom. Tenneco 

Gas v. FERC, 969 F.2d 1187 (D.C. Cir. 1992).

12 Order No. 2004 (in the description of the revisions to Title 18 of the Code of 

Federal Regulations). 
Docket No. RM07-6-000 6

be in the public interest as such rules have for almost two decades played an important 

role in the agency’s program to ensure non-discriminatory access by pipeline customers 

to competitive wellhead markets. 

7. Accordingly, in this interim rule, for natural gas transmission providers, the 

Commission modifies the regulations originally promulgated by Order No. 2004 

consistent with the court’s decision and issues appealed. The interim regulations will 

make clear that the standards of conduct apply to the relationship between natural gas 

transmission providers and marketing affiliates, and that the standards of conduct will not 

govern the relationship between natural gas transmission providers and their other energy 

affiliates. Because Order No. 2004 defined marketing differently than Order 

No. 497, the Commission is revising the definition of marketing consistent with Order 

No. 497.13 

8. Although the court did not consider petitioners’ appeals with respect to specific 

sections of part 358 as it vacated Order No. 2004 based on the lack of record support for 

the new definition of energy affiliate, the interim regulations will treat each of the 

sections challenged on appeal as if the court had held those sections infirm as well. 

Specifically, for natural gas transmission providers, the interim rule will: (1) omit 

 13 Since the standards of conduct will no longer govern the relationship between 

natural gas transmission providers and their energy affiliates, this addresses the issue 

concerning the scope of the energy affiliate exception for local distribution companies 

appealed by National Fuel Gas Distribution Corporation and National Fuel Gas Supply 

raised in National Fuel. 
Docket No. RM07-6-000 7

restrictions on shared risk management activities and employees14 and (2) revise the 

requirement to post all discretionary acts.15 Also raised on appeal were two issues 

discussed in the preamble of Order No. 2004, but not codified in regulatory text. Here, 

too, although the court did not consider these issues, the Commission will incorporate 

into this preamble modifications consistent with petitioners’ appeals of Order No. 2004 

as if the court had ruled in their favor. Specifically, the Commission will (1) allow 

natural gas transmission providers to treat lawyers as permissibly shared employees; and 

(2) not require newly certificated natural gas pipeline transmission providers to observe 

the standards of conduct until they commence transmission services. 

9. In the very near future, the Commission will issue a NOPR, which will seek 

comments on adopting permanent changes to Part 358 consistent with National Fuel. As 

a result, the Commission expects that the provisions in the interim rule will remain in 

effect until we have completed the rulemaking process for a final rule for Standards of 

Conduct for Transmission Providers. The Commission further expects the process for 

adopting a final rule to proceed without delay. 

 14 18 CFR 358.4(a)(6) (2006). 

15 18 CFR 385.5(c)(4) (2006). 
Docket No. RM07-6-000 8

II. Background

A. Order No. 2004

10. Prior to Order No. 2004, the Commission had two separate sets of regulations 

governing standards of conduct for transmission providers. The regulations applicable to 

natural gas pipelines were issued in Order No. 497 in 1988,16 pursuant to the agency’s 

statutory authority under sections 4 and 5 of the Natural Gas Act.17 In 1996, the 

Commission issued Order No. 889, 18 which created standards of conduct regulations 

applicable to electric public utilities under sections 205 and 206 of the Federal Power 

Act.19 Both rules had the same goal: to prevent transmission providers from exercising 

their control over transmission to engage in undue discrimination or preference in favor 

of their marketing affiliates over non-affiliates. Both rules employed the same general 

approach: requiring employees engaged in transmission services to function 

independently from employees of its marketing affiliates and imposing prohibitions 

 16 See supra note 10. 

17 15 U.S.C. §§ 717c and 717d (2000). See also 18 CFR former part 161 (2003). 

18 Open Access Same-Time Information System (Formerly Real-Time Information 

Network) and Standards of Conduct, Order No. 889, 61 FR 21737 (May 10, 1996), FERC 

Stats. & Regs., Regulations Preambles 1991-1996 ¶ 31,035 (Apr. 24, 1996); Order No. 

889-A, order on reh'g, 62 FR 12484 (Mar. 14, 1997), FERC Stats. & Regs., Regulations 

Preambles 1996-2000 ¶ 31,049 (Mar. 4, 1997); Order No. 889-B, reh'g denied, 62 FR 

64715 (Dec. 9, 1997), FERC Stats. & Regs., Regulations Preambles 1996-2000 ¶ 31,253 

(Nov. 25, 1997).

19 16 U.S.C. §§ 824d and 824e (2000). See also 18 CFR former section 37.4 

(2003). 
Docket No. RM07-6-000 9

restricting transmission providers from sharing certain information with their marketing 

affiliates. 

11. In Order No. 2004, the Commission revised the standards of conduct so that one 

set of standards of conduct applied uniformly to both natural gas pipelines and electric 

public utilities.20 The Commission also expanded the coverage of the standards of 

conduct to govern the relationships between transmission providers and energy affiliates.

21 Previously, the standards of conduct governed the relationship between transmission 

providers and their marketing affiliates.22 

B. Matters Appealed

12. Five issues were appealed from Order No. 2004: (1) extension of the standards of 

conduct to cover the relationship between natural gas transmission providers and their 

energy affiliates under section 358.3(d); (2) the scope of the restrictions on sharing risk 

management employees between the natural gas transmission providers and their 

 20 Order No. 2004 at P 8. 

21 The Commission defined energy affiliates as any affiliate that is engaged or 

involved in transmission transactions; manages or controls pipeline capacity; buys, sells, 

trades or administers natural gas in domestic energy or transmission markets; and 

engages in financial transactions relating to the sale or transmission of natural gas in such 

markets. 18 CFR 358.3(d) (2006). 

22 Under Order No. 497, marketing included affiliates and business divisions 

engaged in making sales for resale of natural gas in interstate commerce (former 18 CFR 

161.2(c)); and under Order No. 889, marketing covered affiliates and business divisions 

engaged in making sales for resale of electric energy in interstate commerce (18 CFR 

37.3(e)). 
Docket No. RM07-6-000 10

marketing/energy affiliates under section 358.4(a)(6); (3) the scope of the restrictions on 

sharing lawyers between natural gas transmission providers and their marketing/energy 

affiliates; (4) the scope of the requirement that natural gas transmission providers post all 

discretionary acts under section 358.5(c)(4); and (5) the timing as to when newly 

certificated pipelines become subject to the standards of conduct. 

C. The Court's Decision

13. In National Fuel, the court vacated Order No. 2004 as applicable to natural gas 

pipelines because of the expansion of the standards of conduct to include the new 

definition of energy affiliates. The court explained that the Commission relied on both 

theoretical grounds and on record evidence to justify this expansion. The court 

concluded that the Commission’s record evidence did not withstand scrutiny and, thus, 

concluded the expansion was arbitrary and capricious in violation of the Administrative 

Procedure Act.23 The court vacated Order No. 2004 as applicable to natural gas 

pipelines. In light of this disposition, the court did not address the other four issues raised 

on appeal regarding Order No. 2004. 

III. Discussion

 A. Partially Repromulgating Part 358

14. Much of Order No. 2004 codified case-by-case exceptions that had evolved during 

the implementation of Order Nos. 497 and 889, which were beneficial to the natural gas 

 23 National Fuel at 4. 
Docket No. RM07-6-000 11

transmission providers and not appealed. Some of the provisions under Order No. 2004 

that were not challenged on appeal included: codifying exceptions to the independent 

functioning requirement;24 revising information sharing prohibitions to reflect practical 

considerations25 and emergency circumstances;26 codifying a training requirement;27

revising and imposing new posting requirements to improve transparency;28 and requiring 

the transmission providers to designate a chief compliance officer.29 

15. This interim rule maintains one set of standards of conduct regulations for both the 

natural gas and electric utility industries. The Commission, however, is only making 

changes applicable to natural gas transmission providers consistent with National Fuel. 

Therefore, the interim rule makes inapplicable to natural gas transmission providers those 

portions of the standards of conduct that the court found unsupportable or that were 

challenged on appeal. However, it also repromulgates those sections that were not 

appealed and not found infirm. 

 24 18 CFR 358.4 (2006). 

25 18 CFR 358.5(b)(6) and (8) (2006). 

26 18 CFR 358.4(a)(2) (2006). 

27 18 CFR 358.4(e)(5) (2006). 

28 18 CFR 358.5(a) and (b) (2006). 

29 18 CFR 358.4(e)(6) (2006). 
Docket No. RM07-6-000 12

16. In response to several informal inquiries, the Commission also clarifies that 

waivers or exemptions that the Commission issued under Order No. 2004 are not 

negatively impacted by the National Fuel decision. 

 B. Natural gas transmission providers and their energy affiliates

17. Because the court’s decision focused on the Commission’s lack of evidence to 

support expanding the standards of conduct to govern the relationship between natural 

gas transmission providers and their energy affiliates, the interim rule adds a new 

provision stating that the standards of conduct do not govern the relationship between 

natural gas transmission providers and their energy affiliates. The effect of this change, 

along with the modification to the definition of marketing as discussed below, is that the 

standards of conduct for natural gas transmission providers will only govern the 

relationship between a transmission provider and its marketing affiliates, consistent with 

the prior standards of conduct before the adoption of Order No. 2004. New section 

358.1(e) reads as follows: 

The standards of conduct in this Part do not govern the relationship between a 

natural gas Transmission Provider as defined in § 358.3(a)(2) and its Energy 

Affiliates. 
Docket No. RM07-6-000 13

C. New definition of marketing affiliate

18. Order No. 2004 revised the definition of marketing affiliate previously codified by 

Order No. 497. As a result, the interim rule will promulgate regulations that mirror the 

exceptions to the definition of marketing that were found in Order No. 497.30 

Specifically, a new provision at section 358.3(l) provides as follows: 

Marketing or brokering means a sale of natural gas to any person or entity by a 

seller that is not an interstate pipeline, except when: (1) The seller is selling gas 

solely from its own production; (2) The seller is selling gas solely from its own 

gathering or processing facilities; or (3) The seller is an intrastate natural gas 

pipeline or a local distribution company making an on-system sale. 

D. Sharing of risk management employees

19. Prior to Order No. 2004, the standards of conduct were silent on whether a 

transmission provider could share risk management employees with its marketing 

affiliates. In reviewing the standards of conduct procedures submitted by Vector 

Pipeline, however, the Commission held that a natural gas pipeline could not share risk 

management employees if the functions included assessing the creditworthiness of a 

transmission customer.31 Subsequently, in Order No. 2004, the Commission reiterated 

that holding and permitted the sharing of risk management employees provided that they 

 30 Former 18 CFR 161.2(c) (2003). 

31 Vector Pipeline, L.P., 97 FERC ¶ 61,085 (2001). 
Docket No. RM07-6-000 14

were not “engaged in transmission functions or sales or commodity functions with their 

Marketing or Energy Affiliate.”32 INGAA appealed this issue. 

20. As mentioned above, the court did not address the risk management exception in 

the independent functioning requirement. Still, because it was raised as an issue on 

appeal, the Commission believes that to be faithful to the court’s decision, section 

358.4(a)(6) must be amended. Therefore, the Commission is adding, on an interim basis, 

a second sentence to that section as follows: 

 This provision does not apply to natural gas transmission providers. 

E. Discretionary tariff provision

21. In Order No. 2004, the Commission required the transmission provider to maintain 

a log detailing the circumstances and manner in which it exercised discretion under any 

terms of its tariff and post it on its OASIS or internet website.33 The regulatory language 

in Order No. 2004 was substantively identical to the requirement under Order No. 889, 

but it was different than the requirement under Order No. 497. Former section 161.3(k) 

promulgated under Order No. 497, required a pipeline to maintain a written log of 

waivers that the pipeline grants with respect to tariff provisions that provide for such 

discretionary waivers and provide the log to any person requesting it within 24 hours of 

the request. On appeal, one of the petitioners claimed that section 358.5(c)(4) was much 

 32 Order No. 2004 at P 112. See also 18 CFR 358.4(a)(6) (2006). 

33 18 CFR 358.5(c)(4) (2006). 
Docket No. RM07-6-000 15

broader than former section 161.3(k), arguing that there was a significant difference 

between granting waivers of tariff provisions that provide for such discretionary waivers 

(former section 161.3(k)) and exercising discretion under any terms of its tariff (section 

358.5(c)(4)). 

22. In response to the National Fuel decision, on an interim basis, the Commission is 

revising section 358.5(c)(4). First, we will make clear that 358.5(c)(4) only applies to 

electric public utility transmission providers and, second, we will adopt the language 

regarding discretionary waivers from Order No. 497 for natural gas transmission 

providers. Accordingly, we adopt the following language at section 358.5(c)(4): 

(i) Electric Transmission Providers must maintain a written log, available for 

Commission audit, detailing the circumstances and manner in which they 

exercised their discretion under any terms of the tariff. The information 

contained in this log is to be posted on the OASIS or Internet website within 24 

hours of when a Transmission Provider exercises its discretion under any terms 

of the tariff. 

(ii) Natural gas Transmission Providers must maintain a written log of waivers 

that the natural gas Transmission Provider grants with respect to tariff provisions 

that provide for such discretionary waivers and provide the log to any person 

requesting it within 24 hours of the request. 

23. The Commission recognizes that many natural gas transmission providers 

have put in place procedures to post information regarding discretionary waivers on 

their Internet websites. Of course, this is an acceptable means of complying with the 

requirement in lieu of providing the log to any person requesting it within 24 hours of 

the request. 
Docket No. RM07-6-000 16

F. Sharing of lawyers

24. With respect to the sharing of lawyers, under the Order No. 497 standards of 

conduct, lawyers were treated as permissibly shared employees.34 Order No. 2004 was 

silent as to the classification of lawyers. In Order No. 2004-A, the Commission clarified 

that a lawyer who participates in transmission policy decisions on behalf of a 

Transmission Provider would be considered a transmission function employee (and 

hence, not permissibly shared).35 Additionally, the Commission explained that lawyers 

may provide legal or regulatory advice in their traditional roles without becoming 

transmission function employees,36 but, an individual’s title of “lawyer” did not 

automatically exempt him/her from the independent functioning requirement. The 

Commission stated that if lawyers participate in transmission policy decisions on behalf 

of transmission providers, the Commission considers that participation to be a 

transmission function and the lawyers to be transmission function employees.37 

Following requests for clarification, the Commission stated that lawyers may provide 

 34 Order No. 497 at 31,142. 

35 Order No. 2004-A at P 157. 

36 Section 358.3(j) defines transmission function employee as an employee, 

contractor, consultant or agent of a transmission provider who conducts transmission 

system operations or reliability functions, including, but not limited to, those who are 

engaged in day-to-day duties and responsibilities for planning, directing, organizing or 

carrying out transmission-related operations. 

37 Order No. 2004-A at P 157. 
Docket No. RM07-6-000 17

legal or regulatory advice in their traditional roles without becoming transmission 

function employees, but to the extent that lawyers conduct transmission functions or are 

involved in planning, directing or organizing transmission functions, the lawyer’s status 

as a “lawyer” does not exempt him/her from also being transmission function 

employee.38 

25. This issue was appealed. In light of the court’s decision, the Commission clarifies 

that participating in business decisions by rendering legal advice does not make a lawyer 

a transmission function employee. Since this issue was discussed in the preamble to 

Order No. 2004, there is no regulatory text to adopt or revise. However, this clarification 

is intended to provide direction to the natural gas industry that the Commission will treat 

lawyers as permissibly shared employees for natural gas transmission providers. 

G. Timing of when a natural gas transmission provider 

 becomes subject to the standards of conduct

26. Under Order No 497, a natural gas transmission provider became subject to the 

standards of conduct when the transmission provider commenced transportation 

transactions with its marketing or brokering affiliate.39 In the preamble of Order No. 

2004, the Commission stated that newly formed transmission providers would become 

subject to the standards of conduct when the transmission providers begin soliciting 

business or negotiating contracts as those are activities which the Commission considers 

 38 Order No. 2004-B at P 74. 

39 Former 18 CFR 161.1 (2003). 
Docket No. RM07-6-000 18

transmission function activities. Since the timing of applicability of the standards of 

conduct was one of the items on appeal, the Commission will treat this issue as if the 

court had ruled against the Commission on this issue. As a result, the Commission will 

not require natural gas transmission providers to observe the standards of conduct until 

they commence transportation transactions with their marketing affiliates. Because this 

issue was discussed in the preamble to Order No. 2004, there is no regulatory text to 

adopt or revise. However, in the interim, the foregoing statement is intended to provide 

direction to the industry with respect to when the Commission will consider natural gas 

transmission provider subject to the standards of conduct. 

IV. Information Collection Statement

27. The Office of Management and Budget (OMB) regulations require approval of 

certain information collection requirements imposed by agency rules.40 Previously, the 

Commission submitted to OMB the information collection requirements arising from the 

standards of conduct adopted in Order No. 2004. OMB approved those requirements.41 

This interim rule does not impose any additional information collection burden on 

industry participants. 

 40 5 CFR 1320.11 (2006). 

41 Letter from OMB to the Commission (Jan. 20, 2004) (OMB Control Number 

1902-0157); “Notice of Action” letter from OMB to the Commission (Jan. 20, 2004) 

(OMB Control Number 1902-0173). 
Docket No. RM07-6-000 19

28. The Commission is submitting notification of the information collection 

requirements imposed in the Interim Rule to OMB for its review and approval under 

section 3507(d) of the Paperwork Reduction Act of 1995.42 Comments are solicited on 

the Commission’s need for this information, whether the information will have practical 

utility, the accuracy of provided burden estimates, ways to enhance the quality, utility, 

and clarity of the information to be collected, and any suggested methods of minimizing 

respondent’s burden, including the use of automated information techniques. 

29. OMB regulations require OMB to approve certain information collection 

requirements imposed by agency rule. The Commission is submitting notification of this 

proposed rule to OMB. 

Title: FERC- 592 

Action: Proposed Collection 

OMB Control No: 1902- 0157 

Respondents: Business or other for profit. 

Frequency of Responses: On occasion. 

Necessity of the Information: The information is necessary to ensure that all regulated 

transmission providers treat all transmission customers in a non-discriminatory basis. 

Internal Review: The Commission has reviewed the requirements pertaining to natural 

gas pipelines and determined the interim rule is necessary to avoid a regulatory gap. 

 42 44 U.S.C. § 3507(d) (2000). 
Docket No. RM07-6-000 20

30. These requirements conform to the Commission's plan for efficient information 

collection, communication, and management within the natural gas and electric public 

utility industries. The Commission has assured itself, by means of internal review, that 

there is specific, objective support for the burden estimates associated with the 

information requirements. 

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

contacting: Federal Energy Regulatory Commission, 888 First Street, N.E., Washington, 

D.C. 20426, [Attention: Michael Miller, Office of the Chief Information Officer], phone: 

(202) 502-8415, fax: (202) 208-2425, e-mail: Michael.miller@ferc.gov. Comments on 

the requirements of the proposed rule also may be sent to the Office of Information and 

Regulatory Affairs, Office of Management and Budget, Washington, D.C. 20503 

[Attention: Desk Officer for the Federal Energy Regulatory Commission]. 

V. Environmental Analysis

32. 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.43 The Commission has categorically excluded certain 

actions from these requirements as not having a significant effect on the human 

 43 Order No. 486, Regulations Implementing the National Environmental Policy 

Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. Preambles 1986-1990 ¶ 30,783 

(1987). 
Docket No. RM07-6-000 21

environment.44 The action proposed here falls within the categorical exclusions 

provided in the Commission’s regulations because this rule is clarifying and corrective 

and does not substantially change the effect of the regulations being amended.45 

Therefore, an environmental assessment is unnecessary and has not been prepared in this 

rulemaking. 

VI. Regulatory Flexibility Act

33. The Regulatory Flexibility Act of 198046 generally requires a description and 

analysis of final rules that will have significant economic impact on a substantial number 

of small entities. Because most transmission providers do not fall within the definition of 

“small entity,”47 the Commission certifies that this rule will not have a significant 

economic impact on a substantial number of small entities. 

VII. Document Availability

34. 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 FERC's Home Page 

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

 44 18 CFR 380.4 (2006). 

45 18 CFR 380.4(a)(2)(ii) and 380.4(a)(5) (2006). 

46 5 U.S.C. § 601-612 (2000). 

47 See 5 U.S.C. § 601(3) (2000). 
Docket No. RM07-6-000 22

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

Washington D.C. 20426. 

35. From FERC'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. 

36. User assistance is available for eLibrary and the FERC's website during normal 

business hours from our Help line at (202)502-8222 or the Public Reference Room at 

(202) 502-8371 Press 0, TTY (202)502-8659. E-Mail the Public Reference Room at 

public.referenceroom@ferc.gov. 

VIII. Effective Date and Congressional Notification

37. These regulations are effective on date of issuance. The Commission has 

determined, with the concurrence of the Administrator of the Office of Information and 

Regulatory Affairs of OMB, that this rule is not a “major rule” as defined in section 351 

of the Small Business Regulatory Enforcement Fairness Act of 1996. The Commission 

will submit the interim rule to both houses of Congress and the General Accounting 

Office.48 

 48 5 U.S.C. § 801(a)(1)(A) (2000). 
Docket No. RM07-6-000 23

List of subjects in 18 CFR Part 358

Natural Gas, Reporting and recordkeeping requirements 

By the Commission. 

( S E A L ) 

 Magalie R. Salas, 

 Secretary. 

 
Docket No. RM07-6-000 24

 In consideration of the foregoing, the Commission amends Part 358, 

Chapter I, Title 18, Code of Federal Regulations, as follows. 

Part 358 -- STANDARDS OF CONDUCT 

Sec. 

358.1 Applicability. 

358.2 General principles. 

358.3 Definitions. 

358.4 Independent functioning. 

358.5 Non-discrimination requirements. 

AUTHORITY: 15 U.S.C. 717–717w, 3301–3432; 16 U.S.C. 791–825r, 2601–2645; 31 

U.S.C. 9701; 42 U.S.C. 7101–7352. 

§ 358.1 Applicability. 

 (a) This part applies to any interstate natural gas pipeline that transports gas for 

others pursuant to subpart A of part 157 or subparts B or G of part 284 of this chapter. 

 (b) This part applies to any public utility that owns, operates, or controls facilities 

used for the transmission of electric energy in interstate commerce. 

 (c) This part does not apply to a public utility Transmission Provider that is a 

Commission-approved Independent System Operator (ISO) or Regional Transmission 

Organization (RTO). If a public utility transmission owner participates in a Commissionapproved ISO or RTO and does not operate or control its transmission facilities and has 
Docket No. RM07-6-000 25

no access to transmission, customer or market information covered by § 385.5(b), it may 

request an exemption from this part. 

 (d) A Transmission Provider may file a request for an exemption from all or some 

of the requirements of this part for good cause. 

 (e) The Standards of Conduct in this Part do not govern the relationship between a 

natural gas Transmission Provider as defined in § 358.3(a)(2)and its Energy Affiliates. 

§ 358.2 General principles. 

 (a) A Transmission Provider's employees engaged in transmission system 

operations must function independent from employees of its Marketing and Energy 

Affiliates. 

 (b) A Transmission Provider must treat all transmission customers, affiliated and 

non-affiliated, on a non-discriminatory basis, and must not operate its transmission 

system to preferentially benefit its Marketing or Energy Affiliates. 

§ 358.3 Definitions. 

 (a) Transmission Provider means: 

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

transmission of electric energy in interstate commerce; or 

 (2) Any interstate natural gas pipeline that transports gas for others pursuant to 

subpart A of part 157 or subparts B or G of part 284 of this chapter. 

 (3) A Transmission Provider does not include a natural gas storage provider 

authorized to charge market-based rates that is not interconnected with the jurisdictional 
Docket No. RM07-6-000 26

facilities of any affiliated interstate natural gas pipeline, has no exclusive franchise area, 

no captive ratepayers and no market power. 

 (b) Affiliate means: 

 (1) Another person that controls, is controlled by or is under common control with, 

such person. An Affiliate includes a division that operates as a functional unit, 

 (2) For any exempt wholesale generator, as defined under Section 32(a) of the 

Public Utility Holding Company Act of 1935, as amended, the same as provided in 

section 214 of the Federal Power Act. 

 (c) Control (including the terms "controlling," "controlled by," and "under 

common control with") as used in this part and § 250.16 of this chapter, includes, but is 

not limited to, the possession, directly or indirectly and whether acting alone or in 

conjunction with others, of the authority to direct or cause the direction of the 

management or policies of a company. A voting interest of 10 percent or more creates a 

rebuttable presumption of control. 

 (d) Energy Affiliate means an affiliate of a Transmission Provider that: 

 (1) Engages in or is involved in transmission transactions in U.S. energy or 

transmission markets; or 

 (2) Manages or controls transmission capacity of a Transmission Provider in U.S. 

energy or transmission markets; or 

 (3) Buys, sells, trades or administers natural gas or electric energy in U.S. energy 

or transmission markets; or 
Docket No. RM07-6-000 27

 (4) Engages in financial transactions relating to the sale or transmission of natural 

gas or electric energy in U.S. energy or transmission markets. 

 (5) A local distribution company division of an electric public utility Transmission 

Provider shall be considered the functional equivalent of an Energy Affiliate, unless it 

qualifies for the exemption in §358.3(d)(6)(v). 

 (6) An Energy Affiliate does not include: 

(i) A foreign affiliate that does not participate in U.S. energy markets; 

(ii) An affiliated Transmission Provider or an interconnected foreign 

affiliated natural gas pipeline that is engaged in natural gas transmission activities 

that are regulated by the state, provincial or national regulatory boards of the 

foreign country in which such facilities are located. 

(iii) A holding, parent or service company that does not engage in energy or 

natural gas commodity markets or is not involved in transmission transactions in 

U.S. energy markets; 

 (iv) An affiliate that purchases natural gas or energy solely for its own 

consumption. “Solely for its own consumption” does not include the purchase of natural 

gas or energy for the subsequent generation of electricity. 

 (v) A State-regulated local distribution company that acquires interstate 

transmission capacity to purchase and resell gas only for on-system sales, and otherwise 

does not engage in the activities described in section 358.3(d)(1), (2), (3) or (4), except to 
Docket No. RM07-6-000 28

the limited extent necessary to support on-system sales and to engage in de minimus

sales necessary to remain in balance under applicable pipeline tariff requirements. 

(vi) A processor, gatherer, Hinshaw pipeline or an intrastate pipeline that makes 

incidental purchases or sales of de minimus volumes of natural gas to remain in balance 

under applicable pipeline tariff requirements and otherwise does not engage in the 

activities described in §§ 358.3(d)(1), (2), (3) or (4). 

 (e) Marketing, sales or brokering means a sale for resale of natural gas or electric 

energy in interstate commerce. Sales and marketing employee or unit includes: 

 (1) An interstate natural gas pipeline's sales operating unit, to the extent provided 

in § 284.286 of this chapter, and 

 (2) A public utility Transmission Provider's energy sales unit, unless such unit 

engages solely in bundled retail sales. 

 (3) Marketing or sales does not include incidental purchases or sales of natural gas 

to operate interstate natural gas pipeline transmission facilities. 

 (f) Transmission means natural gas transportation, storage, exchange, backhaul, or 

displacement service provided pursuant to subpart A of part 157 or subparts B or G of 

part 284 of this chapter; and electric transmission, network or point-to-point service, 

reliability service, ancillary services or other methods of transportation or the 

interconnection with jurisdictional transmission facilities. 

 (g) Transmission Customer means any eligible customer, shipper or designated 

agent that can or does execute a transmission service agreement or can or does receive 
Docket No. RM07-6-000 29

transmission service, including all persons who have pending requests for transmission 

service or for information regarding transmission. 

 (h) Open Access Same-time Information System or OASIS refers to the Internet 

location where a public utility posts the information, by electronic means, required by 

part 37 of this chapter. 

 (i) Internet website refers to the Internet location where an interstate natural gas 

pipeline posts the information, by electronic means, required by §§ 284.12 and 284.13 of 

this chapter. 

 (j) Transmission Function employee means an employee, contractor, consultant or 

agent of a Transmission Provider who conducts transmission system operations or 

reliability functions, including, but not limited to, those who are engaged in day-to-day 

duties and responsibilities for planning, directing, organizing or carrying out 

transmission-related operations. 

(k) Marketing Affiliate means an Affiliate as that term is defined in § 358.3(b) or a 

unit that engages in marketing, sales or brokering activities as those terms are defined at 

§ 358.3(e). 

(l) Marketing or brokering means a sale of natural gas to any person or entity by a 

seller that is not an interstate pipeline, except when: 

 (1) The seller is selling gas solely from its own production; 

 (2) The seller is selling gas solely from its own gathering or processing 

facilities; or 
Docket No. RM07-6-000 30

 (3) The seller is an intrastate natural gas pipeline or a local distribution 

company making an on-system sale. 

§ 358.4 Independent functioning. 

 (a) Separation of functions.

(1) Except in emergency circumstances affecting system reliability, the 

transmission function employees of the Transmission Provider must function 

independently of the Transmission Provider's Marketing or Energy Affiliates’ employees. 

 (2) Notwithstanding any other provisions in this section, in emergency 

circumstances affecting system reliability, a Transmission Provider may take whatever 

steps are necessary to keep the system in operation. Transmission Providers must report 

to the Commission and post on the OASIS or Internet website, as applicable, each 

emergency that resulted in any deviation from the standards of conduct, within 24 hours 

of such deviation. 

 (3) The Transmission Provider is prohibited from permitting the employees of its 

Marketing or Energy Affiliates from: 

 (i) Conducting transmission system operations or reliability functions; and 

 (ii) Having access to the system control center or similar facilities used for 

transmission operations or reliability functions that differs in any way from the access 

available to other transmission customers. 

 (4) Transmission Providers are permitted to share support employees and field and 

maintenance employees with their Marketing and Energy Affiliates. 
Docket No. RM07-6-000 31

(5) Transmission Providers are permitted to share with their Marketing or Energy 

Affiliates senior officers and directors who are not “Transmission Function Employees” 

as that term is defined in § 358.3(j). A Transmission Provider may share transmission 

information covered by § 385.5(a) and (b) with its shared senior officers and directors 

provided that they do not participate in directing, organizing or executing transmission 

system operations or marketing functions; or act as a conduit to share such information 

with a Marketing or Energy Affiliate. 

(6) Transmission Providers are permitted to share risk management employees that 

are not engaged in Transmission Functions or sales or commodity Functions with their 

Marketing and Energy Affiliates. This provision does not apply to natural gas 

transmission providers. 

 (b) Identifying affiliates on the public Internet.

 (1) A Transmission Provider must post the names and addresses of Marketing and 

Energy Affiliates on its OASIS or Internet website. 

 (2) A Transmission Provider must post on its OASIS or Internet website, as 

applicable, a complete list of the facilities shared by the Transmission Provider and its 

Marketing and Energy Affiliates, including the types of facilities shared and their 

addresses. 

 (3) A Transmission Provider must post comprehensive organizational charts 

showing: 
Docket No. RM07-6-000 32

 (i) The organizational structure of the parent corporation with the relative 

position in the corporate structure of the Transmission Provider, Marketing and Energy 

Affiliates; 

 (ii) For the Transmission Provider, the business units, job titles and descriptions, 

and chain of command for all positions, including officers and directors, with the 

exception of clerical, maintenance, and field positions. The job titles and descriptions 

must include the employee's title, the employee's duties, whether the employee is 

involved in transmission or sales, and the name of the supervisory employees who 

manage non-clerical employees involved in transmission or sales. 

 (iii) For all employees who are engaged in transmission functions for the 

Transmission Provider and marketing or sales functions or who are engaged in 

transmission functions for the Transmission Provider and are employed by any of the 

Energy Affiliates, the Transmission Provider must post the name of the business unit 

within the marketing or sales unit or the Energy Affiliate, the organizational structure in 

which the employee is located, the employee's name, job title and job description in the 

marketing or sales unit or Energy Affiliate, and the employee's position within the chain 

of command of the Marketing or Energy Affiliate. 

 (iv) The Transmission Provider must update the information on its OASIS or 

Internet website, as applicable, required by §§ 358.4(b)(1), (2) and (3) within seven 

business days of any change, and post the date on which the information was updated. 
Docket No. RM07-6-000 33

 (v) The Transmission Provider must post information concerning potential 

merger partners as affiliates within seven days after the potential merger is announced. 

 (vi) All OASIS or Internet website postings required by part 358 must comply, as 

applicable, with the requirements of § 37.6 or §§ 284.12(a) and (c)(3)(v) of this chapter. 

 (c) Transfers. Employees of the Transmission Provider, Marketing or Energy 

Affiliates are not precluded from transferring among such functions as long as such 

transfer is not used as a means to circumvent the Standards of Conduct. Notices of any 

employee transfers between the Transmission Provider, on the one hand, and the 

Marketing or Energy Affiliates on the other, must be posted on the OASIS or Internet 

website, as applicable. The information to be posted must include: the name of the 

transferring employee, the respective titles held while performing each function (i.e., on 

behalf of the Transmission Provider, Marketing or Energy Affiliate), and the effective 

date of the transfer. The information posted under this section must remain on the 

OASIS or Internet website, as applicable, for 90 days. 

 (d) Books and records. A Transmission Provider must maintain its books of 

account and records (as prescribed under parts 101, 125, 201 and 225 of this chapter) 

separately from those of its Energy Affiliates and these must be available for 

Commission inspections. 
Docket No. RM07-6-000 34

 (e) Written procedures. 

 (1) By February 9, 2004, each Transmission Provider is required to file with the 

Commission and post on the OASIS or Internet website a plan and schedule for 

implementing the standards of conduct. 

 (2) Each Transmission Provider must be in full compliance with the Standards of 

Conduct by September 22, 2004. 

 (3) The Transmission Provider must post on the OASIS or Internet web site, 

current written procedures implementing the standards of conduct in such detail as will 

enable customers and the Commission to determine that the Transmission Provider is in 

compliance with the requirements of this section by September 22, 2004 or within 30 

days of becoming subject to the requirements of part 358. 

 (4) Transmission Providers will distribute the written procedures to all 

Transmission Provider employees and employees of the Marketing and Energy Affiliates. 

(5) Transmission Providers shall train officers and directors as well as employees 

with access to transmission information or information concerning gas or electric 

purchases, sales or marketing functions. The Transmission Provider shall require each 

employee to sign a document or certify electronically signifying that s/he has participated 

in the training. 

 (6) Transmission Providers are required to designate a Chief Compliance Officer 

who will be responsible for standards of conduct compliance. 
Docket No. RM07-6-000 35

§ 358.5 Non-discrimination requirements. 

 (a) Information access. 

 (1) The Transmission Provider must ensure that any employee of its Marketing or

Energy Affiliate may only have access to that information available to the Transmission 

Provider's transmission customers (i.e., the information posted on the OASIS or Internet 

website, as applicable), and must not have access to any information about the 

Transmission Provider's transmission system that is not available to all users of an 

OASIS or Internet website, as applicable. 

 (2) The Transmission Provider must ensure that any employee of its Marketing or

Energy Affiliate is prohibited from obtaining information about the Transmission 

Provider's transmission system (including, but not limited to, information about available 

transmission capability, price, curtailments, storage, ancillary services, balancing, 

maintenance activity, capacity expansion plans or similar information) through access to 

information not posted on the OASIS or Internet website or that is not otherwise also 

available to the general public without restriction. 

 (b) Prohibited disclosure. 

 (1) An employee of the Transmission Provider may not disclose to its Marketing 

or Energy Affiliates any information concerning the transmission system of the 

Transmission Provider or the transmission system of another (including, but not limited 

to, information received from non-affiliates or information about available transmission 

capability, price, curtailments, storage, ancillary services, balancing, maintenance 
Docket No. RM07-6-000 36

activity, capacity expansion plans, or similar information) through non-public 

communications conducted off the OASIS or Internet website, through access to 

information not posted on the OASIS or Internet Website that is not contemporaneously 

available to the public, or through information on the OASIS or Internet website that is 

not at the same time publicly available. 

 (2) A Transmission Provider may not share any information, acquired from nonaffiliated transmission customers or potential non-affiliated transmission customers, or 

developed in the course of responding to requests for transmission or ancillary service on 

the OASIS or Internet website, with employees of its Marketing or Energy Affiliates, 

except to the limited extent information is required to be posted on the OASIS or Internet 

website in response to a request for transmission service or ancillary services. 

 (3) If an employee of the Transmission Provider discloses information in a manner 

contrary to the requirements of § 358.5(b)(1) and (2), the Transmission Provider must 

immediately post such information on the OASIS or Internet web site. 

 (4) A non-affiliated transmission customer may voluntarily consent, in writing, to 

allow the Transmission Provider to share the non-affiliated customer's information with a 

Marketing or Energy Affiliate. If a non-affiliated customer authorizes the Transmission 

Provider to share its information with a Marketing or Energy Affiliate, the Transmission 

Provider must post notice on the OASIS or Internet website of that consent along with a 

statement that it did not provide any preferences, either operational or rate-related, in 

exchange for that voluntary consent.
Docket No. RM07-6-000 37

 (5) A Transmission Provider is not required to contemporaneously disclose to all 

transmission customers or potential transmission customers information covered by 

§ 358.5(b)(1) if it relates solely to a Marketing or Energy Affiliate’s specific request for 

transmission service. 

 (6) A Transmission Provider may share generation information necessary to 

perform generation dispatch with its Marketing and Energy Affiliate that does not include 

specific information about individual third party transmission transactions or potential 

transmission arrangements. 

 (7) Neither a Transmission Provider nor an employee of a Transmission Provider 

is permitted to use anyone as a conduit for sharing information covered by the 

prohibitions of §§ 358.5(b)(1) and (2) with a Marketing or Energy Affiliate. A 

Transmission Provider may share information covered by §§358.5(b)(1) and (2) with 

employees permitted to be shared under §§ 358.4(a)(4), (5) and (6) provided that such 

employees do not act as a conduit to share such information with any Marketing or 

Energy Affiliates. 

 (8) A Transmission Provider is permitted to share information necessary to 

maintain the operations of the transmission system with its Energy Affiliates. 

 (c) Implementing tariffs. 

 (1) A Transmission Provider must strictly enforce all tariff provisions relating to 

the sale or purchase of open access transmission service, if these tariff provisions do not 

permit the use of discretion. 
Docket No. RM07-6-000 38

 (2) A Transmission Provider must apply all tariff provisions relating to the sale 

or purchase of open access transmission service in a fair and impartial manner that treats 

all transmission customers in a non-discriminatory manner, if these tariff provisions 

permit the use of discretion. 

 (3) A Transmission Provider must process all similar requests for transmission in 

the same manner and within the same period of time. 

 (4) (i) Electric Transmission Providers must maintain a written log, available for 

Commission audit, detailing the circumstances and manner in which they exercised their 

discretion under any terms of the tariff. The information contained in this log is to be 

posted on the OASIS or Internet website within 24 hours of when a Transmission 

Provider exercises its discretion under any terms of the tariff. 

 (ii) Natural gas Transmission Providers must maintain a written log of waivers 

that the natural gas Transmission Provider grants with respect to tariff provisions that 

provide for such discretionary waivers and provide the log to any person requesting it 

within 24 hours of the request. 

 (5) The Transmission Provider may not, through its tariffs or otherwise, give 

preference to its Marketing or Energy Affiliate, over any other wholesale customer in 

matters relating to the sale or purchase of transmission service (including, but not limited 

to, issues of price, curtailments, scheduling, priority, ancillary services, or balancing). 
Docket No. RM07-6-000 39

(d) Discounts. 

 Any offer of a discount for any transmission service made by the Transmission 

Provider must be posted on the OASIS or Internet website contemporaneous with the 

time that the offer is contractually binding. The posting must include: the name of the 

customer involved in the discount and whether it is an affiliate or whether an affiliate is 

involved in the transaction, the rate offered; the maximum rate; the time period for which 

the discount would apply; the quantity of power or gas upon which the discount is based; 

the delivery points under the transaction; and any conditions or requirements applicable 

to the discount. The posting must remain on the OASIS or Internet website for 60 days 

from the date of posting.