140 FERC ¶ 61,202

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

18 CFR Part 375

[Docket No. RM12-20-000; Order No. 766]

Delegation of Authority Regarding Electric Reliability Organization’s Budget, 

Delegation Agreement, and Policy and Procedure Filings

(Issued September 20, 2012)

AGENCY: Federal Energy Regulatory Commission.

ACTION: Final Rule.

SUMMARY: The Commission is issuing this Final Rule to revise its delegations of 

authority to align with an internal Commission reorganization, which reassigned certain 

responsibilities for specific Electric Reliability Organization (ERO) filings. In particular, 

this Final Rule transfers delegated authority, from the Director of the Commission’s 

Office of Electric Reliability to the Director of the Commission’s Office of Energy 

Market Regulation, to act on ERO filings pertaining to ERO annual budgets, ERO

delegation agreements, and ERO policies and procedures.

EFFECTIVE DATE: This Rule will become effective [insert date of publication in the 

FEDERAL REGISTER].
Docket No. RM12-20-000 - ii –

FOR FURTHER INFORMATION CONTACT:

Christine A. Powell

Office of the General Counsel

Federal Energy Regulatory Commission

Room 104-04

888 First Street, NE

Washington, DC 20426

202-502-6608

SUPPLEMENTARY INFORMATION:
140 FERC ¶ 61,202

UNITED STATES OF AMERICA

FEDERAL ENERGY REGULATORY COMMISSION

Before Commissioners: Jon Wellinghoff, Chairman;

 Philip D. Moeller, John R. Norris,

 Cheryl A. LaFleur, and Tony T. Clark.

Delegation of Authority Regarding Electric Reliability 

Organization’s Budget, Delegation Agreement, and Policy 

and Procedure Filings

Docket No. RM12-20-000

ORDER NO. 766

FINAL RULE

(Issued September 20, 2012)

I. Background

1. The Energy Policy Act of 2005 added section 215 to the Federal Power Act

(FPA), which requires a Commission-certified Electric Reliability Organization (ERO) to 

develop mandatory and enforceable Reliability Standards, subject to Commission review 

and approval. 1

 Under this section, the ERO must, among other things, “allocate equitably 

reasonable dues, fees, and other charges among end users for all activities under this 

section,”2 and the Commission also must issue regulations authorizing the ERO to enter 

 1 16 U.S.C. 824o.

2 Id. 824o(c)(2)(B).
Docket No. RM12-20-000 - 2 -

into an agreement to delegate authority to a Regional Entity if the Regional Entity meets 

certain conditions.3

 

2. In Order No. 672, the Commission adopted regulations in accordance with FPA

sections 215(c)(2)(B) and 215(e)(4): 39.4, Funding of the Electric Reliability 

Organization; 39.8, Delegation to a Regional Entity; and 39.10, Changes to an Electric 

Reliability Organization Rule or Regional Entity Rule.

4

 

3. Section 39.4 of the Commission’s regulations requires the ERO to file with the 

Commission its proposed annual budget for statutory and non-statutory activities 

130 days before the beginning of its fiscal year.5

 This filing must also contain the line 

item budgets of each Regional Entity for statutory and non-statutory activities, and 

include supporting materials, including the ERO’s and each Regional Entity’s complete 

business plan and organization chart, and an explanation of the proposed collection of all 

dues, fees and charges and the proposed expenditure of funds collected.6 After notice 

and opportunity for hearing, the Commission will issue an order accepting, rejecting, 

remanding or modifying the ERO’s proposed budget and business plan no later than 

 3 Id. 840o(e)(4). 

4 Id.

5 18 CFR 39.4(b).

6 Id.
Docket No. RM12-20-000 - 3 -

sixty days in advance of the beginning of the ERO’s fiscal year. 7 If the ERO requires 

additional funding before or after the fiscal budget review process, it may file with the 

Commission for authority to collect a special assessment; it must demonstrate that the 

request is pursuant to an unforeseen, extraordinary circumstance.

8

4. Section 39.8 of the Commission’s regulations requires the ERO to submit to the 

Commission for Commission approval any proposal to delegate the ERO’s authority to a 

Regional Entity for the purpose of proposing or enforcing Reliability Standards. 9

 

Alternatively, if a Regional Entity is unable to negotiate a delegation agreement with the 

ERO within a reasonable amount of time, it may apply to the Commission to assign to it 

the ERO’s authority.10

5. Section 39.10 of the Commission’s regulations requires the ERO to file with the 

Commission for Commission approval any proposed organization rule or rule change,

including any Regional Entity rule or rule change.

11

 7 Id. 39.4(c).

8 Id. 39.4(d).

9 18 CFR 39.8.

10 Id. 39.8(f).

11 Id. 39.10(b).
Docket No. RM12-20-000 - 4 -

II. Discussion

6. Due to an internal Commission reorganization, the Office of Energy Market 

Regulation (OEMR) will be responsible to review ERO filings made pursuant to 

sections 39.4, 39.8, and 39.10 of the Commission’s regulations. Accordingly, this Final 

Rule revises the delegations to the Director of OEMR, contained in section 375.307, to 

add authority to act pursuant to delegated authority on filings made pursuant to the 

aforementioned sections; thus, it reassigns from the Director of the Office of Electric 

Reliability (OER) to the Director of OEMR the delegations authorizing OER to act 

pursuant to sections 39.4, 39.8, and 39.10.

7. New section 375.307(a)(2)(v) delegates to the Director of OEMR the authority to 

take appropriate action on budget, business plan, and special assessment filings made 

pursuant to section 39.4.

8. New section 375.307(a)(2)(vi) delegates to the Director of OEMR the authority to 

take appropriate action on proposed ERO or Regional Entity organization rules or rule 

changes made pursuant to section 39.10.

9. New section 375.307(a)(2)(vii) delegates to the Director of OEMR the authority to 

take appropriate action on delegation agreement filings by the ERO or a Regional Entity 

made pursuant to section 39.8. 

10. This Final Rule also revises that portion of section 375.303(a)(2)(i) stating that 

OER has the authority to approve revisions to ERO and Regional Entity rules or 

procedures, to reflect the change in Commission organization. 
Docket No. RM12-20-000 - 5 -

III. Information Collection Statement

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

certain information collection requirements imposed by agency rule.12 This Final Rule 

contains no new or revised information collections. Therefore, OMB review of this Final 

Rule is not required.

IV. Environmental Analysis

12. 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.

13 Excluded from this requirement are rules that are 

procedural, ministerial, or internal administrative and management actions, programs or 

decisions.

14 This Rule falls within this exception; consequently, no environmental 

consideration is necessary.

V. Regulatory Flexibility Act

13. The Regulatory Flexibility Act of 1980 (RFA)15 generally requires a description 

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

 12 5 CFR 1320.

13 Regulations Implementing the National Environmental Policy Act of 1969, 

Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. ¶ 30,783 (1987).

14 18 CFR 380.4(a)(1).

15 5 U.S.C. 601-612.
Docket No. RM12-20-000 - 6 -

number of small entities. This Final Rule concerns a matter of internal agency procedure 

and it will not have such an impact. An analysis under the RFA is therefore not required.

VI. Document Availability

14. 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.

15. 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 (i.e., the sub docket number, 000) in the docket number field.

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

normal business hours from FERC Online Support at (202) 502-6652 (toll free at 

(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.
Docket No. RM12-20-000 - 7 -

VII. Effective Date and Congressional Notification

17. The provisions of 5 U.S.C. 801 regarding Congressional review of Final Rules do 

not apply to this Final Rule because the rule concerns internal agency procedure and 

practice and will not substantially affect the rights of non-agency parties.

18. These regulations are effective on [insert date of publication in the Federal 

Register]. The Commission finds that notice and public comments are unnecessary 

because this Rule concerns only internal agency procedure and practice. Therefore the 

Commission finds good cause to waive the notice period otherwise required before the 

effective date of this Final Rule.

List of subjects in 18 CFR Part 375

The Commission

By the Commission.

( S E A L )

Kimberly D. Bose,

Secretary.
Docket No. RM12-20-000 - 8 -

In consideration of the foregoing, the Commission amends Part 375, Chapter I, Title 18, 

Code of Federal Regulations, as follows:

Part 375 – THE COMMISSION

1. The authority citation for Part 375 continues to read as follows:

Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717w, 3301-3432; 16 U.S.C. 791-

825r, 2601-2645; 42 U.S.C. 7101-7352.

2. Section 375.303(a)(2)(i) is revised to read as follows:

§ 375.303 Delegations to the Director of the Office of Electric Reliability.

* * * * *

(a)(2)(i) Approve uncontested applications. 

3. Section 375.307 is revised to add subsections (a)(2)(v), (vi) and (vii), and to 

modify subsection (a)(2)(iv), as follows:

§ 375.307 Delegations to the Director of the Office of Energy Market Regulation.

* * * * *

(a)(2)(iv) Sign and issue deficiency letters for filings under Federal Power Act 

sections 203, 204, 215, and 305(b).

(a)(2)(v) Take appropriate action on uncontested Electric Reliability Organization 

budget, business plan, and special assessment filings made pursuant to § 39.4 of this 

chapter.
Docket No. RM12-20-000 - 9 -

(a)(2)(vi) Take appropriate action on uncontested filings proposing Electric Reliability 

Organization or Regional Entity organization rules or rule changes made pursuant to 

§ 39.10 of this chapter.

(a)(2)(vii) Take appropriate action on uncontested delegation agreement filings by the 

Electric Reliability Organization or Regional Entity made pursuant to section 39.8 of this 

chapter. 

* * * * *