UNITED STATES OF AMERICA 

FEDERAL ENERGY REGULATORY COMMISSION 

18 CFR Parts 366 and 385 

(Docket No. RM06-25-000; Order No. 685) 

Electronic Filing of FERC Form No. 60 

(Issued October 19, 2006) 

AGENCY: Federal Energy Regulatory Commission. 

ACTION: Final Rule. 

SUMMARY: In this Final Rule, the Federal Energy Regulatory Commission 

(Commission) is amending its regulations to further implement the Public Utility Holding 

Company Act of 2005 (PUHCA 2005). Specifically, the Commission is providing for 

electronic filing of the currently-effective FERC Form No. 60, Annual Report of 

Centralized Service Companies, for the 2006 and 2007 reporting years, to be filed by 

May 1, 2007 and May 1, 2008, respectively. No changes are being made to the currentlyeffective FERC Form No. 60 itself. The Commission has concluded that the automation 

of the FERC Form No. 60 filing will yield significant benefits, including reduced cost of 

data entry and retrieval, overall reduction of reporting burden, more timely analysis and 

publication of data, and increased data analysis capability. 

EFFECTIVE DATE: The Final Rule will become effective [insert 60 days after 

publication in the FEDERAL REGISTER].
Docket No. RM06-25-000 - 2 - 

FOR FURTHER INFORMATION CONTACT: 

Julia A. Lake (Legal Information) 

Office of the General Counsel – Energy Markets 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

Telephone: (202) 502-8370 

E-mail: julia.lake@ferc.gov 

Michelle Veloso (Technical Information) 

Division of Financial Regulation 

Office of Enforcement 

Federal Energy Regulatory Commission 

888 First Street, N.E. 

Washington, D.C. 20426 

Telephone: (202) 502-8363 

E-mail: michelle.veloso@ferc.gov 

SUPLEMENTARY 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. 

Electronic Filing of FERC Form No. 60 Docket No. RM06-25-000 

ORDER NO. 685 

FINAL RULE 

(October 19, 2006) 

1. The Federal Energy Regulatory Commission (Commission) is amending its 

regulations to further implement the Public Utility Holding Company Act of 2005 

(PUHCA 2005). Specifically, the Commission is providing for electronic filing of the 

currently-effective FERC Form No. 60, Annual Report of Centralized Service 

Companies, adopted in Order No. 667,1

 for the 2006 and 2007 reporting years, to be filed 

 1

 Order No. 667, 70 FR 75592 (Dec. 20, 2005), FERC Stats. & Regs., Regulations 

Preambles 2001-2005 ¶ 31,197 (2005), order on reh’g, Order No. 667-A, 70 FR 28446 

(May 16, 2006), FERC Stats. & Regs. ¶ 31,213 (2006), order on reh’g, Order No. 667-B, 

71 FR 42750 (July 28, 2006), FERC Stats. & Regs., ¶ 31,224 (2006). 
Docket No. RM06-25-000 - 2 -

by May 1, 2007 and May 1, 2008, respectively.2

 No changes are being made to data 

reported in the currently-effective FERC Form No. 60 itself. 

Background

2. On August 8, 2005, the Energy Policy Act of 2005 (EPAct 2005)3

 was signed into 

law. In relevant part, it repealed the Public Utility Holding Company Act of 1935 

(PUHCA 1935)4

 and enacted the Public Utility Holding Company Act of 2005 (PUHCA 

2005),5

 which, with one exception not relevant here, became effective on February 8, 

2006 (six months from the date of enactment). The intent of Congress in EPAct 2005 

was to repeal the Securities and Exchange Commission’s (SEC) regulatory regime 

established by PUHCA 1935 and to rely on this Commission and state regulatory 

authorities to protect energy customers, by supplementing the Commission’s books and 

records authority under the Federal Power Act (FPA) and the Natural Gas Act (NGA) 

 2

 We note that, contemporaneously with this Final Rule, we are issuing, in Docket 

No. RM06-11-000, a Final Rule adding a new Uniform System of Accounts (USofA) for 

Centralized Service Companies, adding new records retention requirements for holding 

companies and service companies, and revising FERC Form No. 60, Annual Report for 

Centralized Service Companies to provide for financial reporting consistent with the new 

USofA. The Final Rule in that docket provides that revised FERC Form No. 60 will be 

filed electronically beginning with the 2008 reporting year and subsequent reporting 

years. See Financial Accounting, Reporting and Records Retention Requirements Under 

the Public Utility Holding Company Act of 2005, Order No. 684, published elsewhere in 

this issue of the Federal Register, FERC Stats. & Regs. ¶ 31,229 (2006). 

3

 Energy Policy Act of 2005, Pub. L. 109-58, 119 Stat. 594 (2005). 

4

 15 U.S.C. 79a et seq.

5

 EPAct 2005 at 1261 et seq.
Docket No. RM06-25-000 - 3 -

(and by enhancing the Commission’s already significant authority over public utility 

mergers, acquisitions and dispositions of jurisdictional facilities6

). 

3. On December 8, 2005, the Commission issued Order No. 667, adding a new 

Subchapter U and Part 366 to Title 18 of the Code of Federal Regulations to implement 

PUHCA 2005.7

 Among other things, the Commission required centralized service 

companies8

 to file an annual financial report, the new FERC Form No. 60.9 Specifically, 

every centralized service company in a holding company system,10 i.e., was not a special-

 6

 Id. at 1289. 

7

 See supra note 1. 

8

 “Service companies” are defined in 18 CFR 366.1 as “any associate company 

within a holding company system organized specifically for the purpose of providing 

non-power goods or services or the sale of goods or construction work to any public 

utility in the same holding company system.” “Centralized service companies” are 

defined in 18 CFR 367.1(a)(7) as a service company that provides services such as 

administrative, managerial, financial, accounting, recordkeeping, legal or engineering 

services, which are sold, furnished, or otherwise provided (typically for a charge) to other 

companies in the same holding company system. Centralized service companies are 

different from other service companies that only provide a discrete good or service. 

9

 See Order No. 667, FERC Stats. & Regs. ¶ 31,197 at P 82-88 (codified at 

18 CFR 366.23). 

10 As defined in 18 CFR 366.1, holding company means (i) any company that 

directly or indirectly owns, controls, or holds, with power to vote, 10 percent or more of 

the outstanding voting securities of a public-utility company or of a holding company of 

any public-utility company; and (ii) any person, determined by the Commission, after 

notice and opportunity for hearing, to exercise directly or indirectly (either alone or 

pursuant to an arrangement or understanding with one or more persons) such a 

controlling influence over the management or policies of any public-utility company or 

holding company as to make it necessary or appropriate for the rate protection of utility 

 (continued...) 

 
Docket No. RM06-25-000 - 4 -

purpose company (such as, a fuel supply company or a construction company) that 

provides non-power goods or services to a Commission-jurisdictional public utility or 

natural gas company, was required to file with the Commission by May 1, 2006 and by 

May 1 each year thereafter, FERC Form No. 60, for the prior calendar year.11

4. Centralized service companies began filing FERC Form No. 60 beginning with the 

2005 reporting year, due by May 1, 2006.12 They filed FERC Form No. 60 in a paper 

format because, at the time Order No. 667 was issued, the Commission had not 

developed the form submission software to permit electronic filing. 

Discussion

5. The Commission’s regulations provide for electronic filing of annual reports 

submitted by entities subject to Commission jurisdiction, including: FERC Form No. 1, 

Annual Report of Major Electric Utilities, Licensees and Others; FERC Form No. 2, 

Annual Report for Major Natural Gas Companies; FERC Form No. 2-A, Annual Report 

for Nonmajor Natural Gas Companies; and FERC Form No. 6, Annual Report of Oil 

 

customers with respect to rates that such person be subject to the obligations, duties and 

liabilities imposed by this subtitle upon holding companies. 

11 See 18 CFR 366.23(a). 

12 The Commission provided centralized service companies in holding company 

systems exempted by the SEC from the reporting requirements of PUHCA 1935 a 

transition period for reporting years 2005 and 2006 during which time they need not file 

FERC Form No. 60. See 18 CFR 366.23(b). 
Docket No. RM06-25-000 - 5 -

Pipeline Companies.13 The electronic filing of these annual reports yields significant 

benefits, including reduced cost of data entry and retrieval, overall reduction of reporting 

burden, more timely analysis and publication of data, and increased data analysis 

capability.14 And, in general, filers and users alike agree that electronic filing of these 

annual reports yields significant benefits in terms of process simplification and savings of 

time and expense.15 

6. Electronic filing of the currently-effective FERC Form. No. 60 should result in 

similar benefits.16 The Commission, therefore, will require centralized service companies 

to file the currently-effective FERC Form No. 60 in an electronic medium for the 2006 

and 2007 reporting years, to be filed by May 1, 2007 and May 1, 2008, respectively. 

7. No changes are being made to the information reported in the currently-effective 

FERC Form No. 60. However, the Commission will need to make minor formatting 

changes to the currently-effective FERC Form No. 60 to facilitate the development of 

form submission software. These minor changes will include the placement of 

 13 See 18 CFR 385.2011. 

14 See, e.g., Electronic Filing of FERC Form No. 1, Order No. 574, 60 FR 1716 

(Jan. 5, 1995), FERC Stats. & Regs. ¶ 31,013 at 31,257 (1995). 

15 Id. at 31,256-57. 

16 We note that, contemporaneously with this Final Rule, we are issuing a Final 

Rule in Docket No. RM06-11-000 that provides for electronic filing of a revised FERC 

Form No. 60 beginning with the 2008 reporting year. Commenters in that rulemaking 

docket did not oppose the Commission’s proposal to require electronic filing of the 

revised form. See supra note 2. 
Docket No. RM06-25-000 - 6 -

instructions for each schedule at the top of each page, updating certain schedules so that 

the data and information is reported in a structured format on the schedule, renumbering 

of certain pages, and updating the General Instructions to the form to clarify that the 

respondents will no longer file two paper copies of the FERC Form No. 60, but rather the 

respondents will be required to use the form submission software to file the form. 

8. In a separate notice, instructions will be provided concerning how a centralized 

service company may register as a respondent and download the form submission 

software for use in filing the FERC Form No. 60. 

Information Collection Statement

9. Office of Management and Budget (OMB) regulations require OMB to approve 

certain information collection requirements imposed by an agency.17 The Final Rule will 

not change the reporting requirements in the currently-effective FERC Form No. 60. 

This rule, therefore, is not subject to OMB review. The Commission is submitting a copy 

of the Final Rule to OMB for information purposes only. Interested persons may obtain 

information on these reporting requirements by contacting the Federal Energy Regulatory 

Commission, 888 First Street, N.E., Washington, D.C. 20426 [Attn: Michael Miller, 

Information Services Division, (202) 502-8415]. Comments on the requirements of this 

rule can be sent to the Office of Information and Regulatory Affairs of OMB [Attn: Desk 

 17 5 CFR 1320.11. 
Docket No. RM06-25-000 - 7 -

Officer for the Federal Energy Regulatory Commission; phone, (202) 395-4650, fax: 

(202) 395-27285, e-mail: oira_submission@omb.eop.gov]. 

Environmental Analysis

10. Commission regulations require that an Environmental Assessment or an 

Environmental Impact Statement be prepared for any Commission action that may have a 

significant adverse effect on the human environment.18 The Commission has 

categorically excluded certain actions from this requirement as not having a significant 

effect on the human environment.19 No environmental consideration is necessary for the 

promulgation of a rule that is clarifying, corrective or procedural.20 Because the 

electronic filing requirement for the currently-effective FERC Form No. 60 adopted in 

this Final Rule is merely procedural, no environmental statement is necessary. 

Regulatory Flexibility Act Certification

11. The Regulatory Flexibility Act of 1980 (RFA)21 generally requires either a 

description and analysis of a rule that will have a significant economic impact on a 

substantial number of small entities or a certification that the rule will not have a 

 18 Regulations Implementing the National Environmental Policy Act, Order No. 

486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. ¶ 30,783 (1987) (codified at 

18 CFR part 380). 

19 18 CFR 380.4. 

20 18 CFR 380.4(a)(2)(ii). 

21 5 U.S.C. 601-612. 
Docket No. RM06-25-000 - 8 -

significant economic impact on a substantial number of small entities. Most centralized 

service companies and holding companies to which this Final Rule applies would not fall 

within the RFA’s definition of small entity.22 Consequently, the Commission certifies 

that this Final Rule will not have a “significant economic impact on a substantial number 

of small entities.” 

Document Availability

12. 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, N.E., Room 2A, 

Washington D.C. 20426. 

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

the Commission’s document management system, eLibrary. The full text of this 

document is available on eLibrary in PDF and Microsoft Word format for viewing, 

 22 5 U.S.C. 601(3), citing to section 3 of the Small Business Act, 15 U.S.C. 632. 

Section 3 of the Small Business Act defines a “small business concern” as a business that 

is independently owned and operated and that is not dominant in its field of operation. 

The Small Business Size Standards component of the North American Industry 

Classification System (NAICS) defines a small electric utility as one that, including its 

affiliates, is primarily engaged in the generation, transmission, and/or distribution of 

electric energy for sale and whose total electric output for the preceding fiscal year did 

not exceed four million MWh. NAICS defines a small natural gas pipeline company as 

one that transports natural gas and whose annual receipts (total income plus cost of goods 

sold) did not exceed $6.5 million dollars for the preceding year. 13 CFR 121.201. 
Docket No. RM06-25-000 - 9 -

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. 

14. User assistance is available for eLibrary and the Commission's website during 

normal business hours. For assistance, please contact FERC Online Support at 1-866-

208-3676 (toll free) or 202-502-6652 (e-mail at FERCOn-lineSupport@ferc.gov) or the 

Public Reference Room at 202-502-8371, TTY 202-502-8659 (e-mail at 

public.referenceroom@ferc.gov ). 

Administrative Findings And Effective Date

15. The Administrative Procedure Act (APA)23 requires rulemakings to be published 

in the Federal Register. The APA also mandates that an opportunity for comments be 

provided when an agency promulgates regulations. However, notice and comment are 

not required under the APA when the agency for good cause finds that notice and public 

procedure thereon are impracticable, unnecessary or contrary to the public interest.24

16. The Commission finds that notice and comment are unnecessary for this 

rulemaking. As explained above, this Final Rule is merely procedural in nature. The 

Commission is not revising the data the centralized service companies file in the 

currently-effective FERC Form No. 60. The Commission is merely requiring electronic 

filing of the currently-effective FERC Form No. 60. The Commission, therefore, finds 

 23 5 U.S.C. 551-59. 

24 5 U.S.C. 553(B); see, e.g., Mid-Tex Electric Cooperative, Inc. v. FERC, 

822 F.2d 1123 (D.C. Cir. 1987). 
Docket No. RM06-25-000 - 10 -

good cause to make this Final Rule effective [insert date that is 60 days after publication 

in the FEDERAL REGISTER]. 

Congressional Notification

17. The provisions of the Small Business Regulatory Enforcement Fairness Act of 

199625 regarding Congressional review of Final Rules does not apply to this Final Rule, 

because the rule concerns agency procedure and practice and will not substantially affect 

the substantive rights of non-agency parties.26

List of subjects

18 CFR Part 366

Electric power 

Natural gas 

Reporting and recordkeeping requirements 

18 CFR Part 385

Administrative practice and procedure 

Electric power 

Penalties 

Pipelines 

Reporting and recordkeeping requirements 

By the Commission. 

( S E A L ) 

 Magalie R. Salas, 

 Secretary. 

 25 5 U.S.C. 801. 

26 5 U.S.C. 804(3)(B). 
Docket No. RM06-25-000 - 11 -

 In consideration of the foregoing, the Commission amends parts 366 and 385, 

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

PART 366 – PUBLIC UTILITY HOLDING COMPANY ACT OF 2005

1. The authority citation for part 366 is revised to read as follows: 

Authority: 42 U.S.C. 16451-16463. 

2. In § 366.23, paragraph (a)(1) is revised to read as follows: 

§ 366.23 FERC Form No. 60, Annual reports of service companies, and FERC61, Narrative description of service company functions.

 (a) General. (1) FERC Form No. 60. Unless otherwise exempted or granted a 

waiver by Commission rule or order pursuant to §§ 366.3 and 366.4, every centralized 

service company (see § 367.2 of this chapter) in a holding company system must file an 

annual report, FERC Form No. 60, as provided in § 369.1 of this chapter. Every report 

must be submitted on the FERC Form No. 60 then in effect and must be prepared in 

accordance with the instructions incorporated in that form. 

 * * * * * 

PART 385 – RULES OF PRACTICE AND PROCEDURE

3. The authority citation for part 385 is revised to read as follows: 

Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16 U.S.C.791a825v, 2601-2645; 28 U.S.C. 2461; 31 U.S.C. 3701, 9701; 42 U.S.C. 7101-7352, 16441, 

16451-16463; 49 U.S.C. 60502; 49 App. U.S.C. 1-85 (1988). 
Docket No. RM06-25-000 - 12 -

4. In § 385.2011, paragraph (a)(9) is added and paragraph (c)(3) is revised to read as 

follows: 

§ 385.2011 Procedures for filing on electronic media (Rule 2011). 

 (a) * * * 

 (9) FERC Form No. 60, Annual report of centralized service companies. 

 * * * * * 

 (c) What to file. * * * 

 (3) With the exception of the Form Nos. 1, 2, 2-A, 6 and 60, the electronic 

media must be accompanied by the traditional prescribed number of paper copies. 

 * * * * *