[Federal Register Volume 72, Number 82 (Monday, April 30, 2007)]
[Rules and Regulations]
[Pages 21095-21099]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-7892]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 38

[Docket No. RM05-5-003; Order No. 676-B]


Standards for Business Practices and Communication Protocols for 
Public Utilities

Issued April 19, 2007.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Final rule.

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SUMMARY: The Federal Energy Regulatory Commission is amending its 
regulations under the Federal Power Act to incorporate by reference 
revisions to the Coordinate Interchange business practice standards 
(WEQ-004) adopted by the Wholesale Electric Quadrant (WEQ) of the North 
American Energy Standards Board (NAESB) on June 22, 2006. These 
standards identify the processes and communications necessary to 
coordinate energy transfers that cross boundaries between entities 
responsible for balancing load and generation.
    Incorporating these revised standards by reference into the 
Commission's regulations will ensure that the Coordinate Interchange 
business practice standards incorporated by reference in the 
Commission's regulations are compatible with the North American 
Electric Reliability Council's Interchange Scheduling and Coordination 
Reliability Standards that the Commission approved as mandatory and 
enforceable Reliability Standards in Order No. 693.

DATES: This Final Rule will become effective May 30, 2007. The 
incorporation of the standard is approved by the Director of the 
Federal Register on May 30, 2007. Implementation of the standards is 
required the later of the date on which the NERC standards become 
mandatory or the effective date of this rule.

FOR FURTHER INFORMATION CONTACT:

Patricia Schaub (technical issues), Office of Energy Markets and 
Reliability, Federal Energy Regulatory Commission, 888 First Street, 
NE., Washington, DC 20426, (202) 502-6816.
Kay Morice (technical issues), Office of Energy Markets and 
Reliability, Federal Energy Regulatory Commission, 888 First Street, 
NE., Washington, DC 20426, (202) 502-6507.
Gary D. Cohen (legal issues), Office of the General Counsel, Federal 
Energy Regulatory Commission, 888 First Street, NE., Washington, DC 
20426, (202) 502-8321.

SUPPLEMENTARY INFORMATION:
Before Commissioners: Joseph T. Kelliher, Chairman; Suedeen G. Kelly, 
Marc Spitzer, Philip D. Moeller, and Jon Wellinghoff.

    1. The Federal Energy Regulatory Commission (Commission) is 
amending its regulations under the Federal Power Act (FPA) \1\ to 
incorporate by reference revisions to the Coordinate Interchange 
business practice standards (WEQ-004) adopted by the Wholesale Electric 
Quadrant (WEQ) of the North American Energy Standards Board (NAESB) on 
June 22, 2006. These standards identify the processes and 
communications necessary to coordinate energy transfers that cross 
boundaries between entities responsible for balancing load and 
generation.
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    \1\ 16 U.S.C. 791a, et seq.
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I. Background

    2. NAESB is a non-profit standards development organization 
established in January 2002 that serves as an industry forum for the 
development and promotion of business practice standards that promote 
an efficient marketplace for wholesale and retail natural gas and 
electricity. Since 1995, NAESB and its predecessor, the Gas Industry 
Standards Board, have been accredited members of the American National 
Standards Institute (ANSI), complying with ANSI's requirements that its 
standards reflect a consensus of the affected industries.
    3. NAESB's standards include business practices that streamline the 
transactional processes of the natural gas and electric industries, as 
well as communication protocols and related standards designed to 
improve the efficiency of communication within each industry. NAESB 
supports all four quadrants of the gas and electric industries--
wholesale gas, wholesale electric, retail gas, and retail electric. All 
participants in the gas and electric industries are eligible to join 
NAESB and participate in standards development.
    4. NAESB's procedures are designed to ensure that all industry 
members can have input into the development of a standard, whether or 
not they are members of NAESB, and each standard NAESB adopts is 
supported by a consensus of the relevant industry segments.
    5. The Coordinate Interchange business practice standards (WEQ-004) 
facilitate the transfer of electric energy between entities responsible 
for balancing load and generation (Balancing Authorities). The term 
``Interchange'' in this context refers to energy transfers across 
boundaries between Balancing Authorities. The Coordinate Interchange 
business practice standards identify the processes needed to facilitate 
interchange transactions, and specify the arrangements and data to be 
communicated to the entity responsible for authorizing implementation 
of interchange transactions (Interchange Authority).
    6. The revised Coordinate Interchange business practice standards 
(WEQ-004) being adopted in this Final Rule replace the earlier version 
of these standards previously incorporated by reference in the 
Commission's regulations in Order No. 676.\2\ The standards that the 
Commission incorporated by reference into regulations in Order No. 676 
were designed to be consistent with the Version 0 reliability standards 
of the North American Electric Reliability Council (NERC) dealing with 
Coordinate Interchange.
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    \2\ Standards for Business Practices and Communication Protocols 
for Public Utilities, Order No. 676, 71 FR 26199 (May 4, 2006), FERC 
Stats. & Regs., Regulations Preambles ] 31,216 (Apr. 25, 2006), 
reh'g denied, Order No. 676-A, 116 FERC ] 61,255 (2006).
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    7. In April, August, and November 2006, NERC filed proposed 
reliability standards for Commission approval under section 215 of the 
FPA, including Version 1 and Version 2 standards governing Interchange 
Scheduling and Coordination (INT Reliability Standards).
    8. On June 22, 2006, the WEQ membership ratified revised Coordinate 
Interchange standards to keep the WEQ's Coordinate Interchange business 
practices consistent with the applicable NERC INT Reliability 
Standards. On November 16, 2006, NAESB filed its revised Coordinate 
Interchange standards with the Commission.
    9. On February 20, 2007, the Commission issued a notice of proposed 
rulemaking to assure that the Commission's business practice standards 
and reliability standards on Coordinate Interchange would continue

[[Page 21096]]

to be consistent.\3\ The Coordinate Interchange NOPR proposed that the 
Commission incorporate by reference the revised Coordinate Interchange 
business practice standards (WEQ-004) adopted by the WEQ on June 22, 
2006.
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    \3\ Standards for Business Practices and Communication Protocols 
for Public Utilities, Notice of Proposed Rulemaking, 72 FR 8318 
(Feb. 27, 2007), FERC Stats. & Regs. ] 32,612 (Feb. 20, 2007) 
(Coordinate Interchange NOPR).
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    10. In addition, the Coordinate Interchange NOPR noted that NAESB's 
standards correspond to NERC's Version 1 INT Reliability Standards, and 
invited comment on whether NERC's Version 2 INT Reliability Standards 
necessitate any additional business practice standards beyond those 
discussed in the NOPR.
    11. The WEQ revised its Coordinate Interchange business practice 
standards for three main reasons: (1) To incorporate business practice 
standards that had previously been included by NERC in its proposed 
reliability standards; (2) to modify the definitions and standards to 
better integrate with NERC's corresponding reliability standards; and 
(3) to eliminate an appendix and update standards to reflect current 
operating conditions in the Eastern and Western Interconnections, and 
within the Electric Reliability Council of Texas (ERCOT).
    12. On March 16, 2007, the Commission approved NERC's INT 
Reliability Standards as mandatory and enforceable reliability 
standards in Order No. 693.\4\
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    \4\ Mandatory Reliability Standards for the Bulk-Power System, 
Order No. 693, Final Rule, 72 FR 16416 (April 4, 2007), FERC Stats. 
& Regs. ] 31,242 at P 795 through P 887 (Mar. 16, 2007).
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    13. On March 28, 2007, the New York Independent System Operator, 
Inc. (NYISO) filed comments in response to the Coordinate Interchange 
NOPR expressing its general support for NAESB's revisions to the WEQ-
004 Standard and stating that it has no objection to incorporating the 
revised standards into the NYISO's Open Access Transmission Tariff 
(OATT) and Market Administration and Control Area Services Tariff 
(Services Tariff). NYISO requests, however, that the Final Rule not 
upset any existing waivers of the WEQ-004 Standard the Commission has 
already granted to entities. NYISO's comments were the only comments 
filed in response to the Coordinate Interchange NOPR.

II. Discussion

    14. In this Final Rule, the Commission is amending its regulations 
under the FPA to incorporate by reference revisions to the Coordinate 
Interchange business practice standards (WEQ-004) adopted by the 
Wholesale Electric Quadrant (WEQ) of the North American Energy 
Standards Board (NAESB) on June 22, 2006.\5\ These standards update the 
business practice standards used by the electric industry so that they 
will dovetail with the reliability standards the Commission has 
approved. Adoption of these revised business practice standards ensures 
that public utilities comply with a consistent set of standards. To 
ensure such coordination, public utilities will be required to comply 
with these standards on the later of the date on which the NERC 
standards become mandatory or the effective date of this rule. We are 
pleased with the cooperation and coordination between NAESB and NERC. 
We appreciate the efforts that these organizations and the industry 
have made together to ensure that reliability standards and business 
practice standards work harmoniously.
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    \5\ The specific standards developed by the WEQ that we are 
incorporating by reference in this Final Rule are as follows: 
Coordinate Interchange (WEQ-004, June 22, 2006) including Purpose, 
Applicability, and Standards 004-0 through 004-17.2, and 004-A 
through 004-D.
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    15. In its revised reliability standards, NERC deleted certain 
business practice requirements with the expectation that NAESB would 
include these business practices in its business practice standards.\6\
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    \6\ The deleted NERC standards include Requirements R1.1, R3, 
R4, and R5 of INT-001-0, which relate to the timing and content of 
e-tags, and Requirement R1.1.3 of INT-003-0, which addresses ramp 
starting time and duration. See Mandatory Reliability Standards for 
the Bulk Power System, Notice of Proposed Rulemaking, 71 FR 64,770 
(Nov. 3, 2006), FERC Stats. & Regs. ] 32,608 at 32,913 & note 3 
(2006).
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    16. The revised Coordinate Interchange business practice standards 
the WEQ adopted to replace the deleted NERC standards include:
    <bullet> WEQ Standards 004-1 and 004-3.1 replace NERC INT-001-0 
Requirement R1.1. The revised WEQ standards address how requests for 
Interchange should be made and who is responsible for submitting such 
requests.
    <bullet> WEQ Standards 004-3, 004-5, 004-8.1, and 004-8.2 replace 
NERC's INT-001-0 Requirement R3. These standards establish the timing 
requirements for submitting requests for Interchange. The WEQ's timing 
table (Appendix D referenced in WEQ Standard 004-8.1) has been revised 
to better match up with the timing table in NERC's INT-005-1.
    <bullet> WEQ Standard 004-5 replaces NERC's INT-001-0 Requirement 
R4. This standard addresses the data that should be included in a 
request for Interchange and who is responsible for ensuring that these 
data are included in the request for Interchange.
    <bullet> WEQ Standard 004-12 replaces NERC's INT-001-0 Requirement 
R5. This standard requires that parties involved in an Interchange must 
have personnel and facilities on site and immediately available to 
receive notification of changes to the Interchange.
    <bullet> WEQ Standards 004-17, 004-17.1, and 004-17.2 replace 
NERC's INT-003-0 Requirement R1.1.3. These standards establish the 
default ramp rates that apply to an Interchange unless otherwise agreed 
to by the parties involved.
    17. The WEQ also modified the Coordinate Interchange definitions 
and business practice standards to better coordinate with NERC's INT 
Reliability Standards. This follows the Commission's directive in Order 
No. 676 that, ``[i]n future versions of the standards, NAESB should use 
the NERC definitions relating to reliability.'' \7\ The modifications 
include:
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    \7\ Order No. 676 at P 40.
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    <bullet> New and revised definitions, such as changing 
``Reliability Authority'' to ``Reliability Coordinator''.
    <bullet> Changes to definitions resulting from WEQ's efforts to 
match the language used in NERC's ``Glossary of Terms Used in 
Reliability Standards'' (Glossary) where appropriate. For example, the 
WEQ added a definition for ``Arranged Interchange'' using the same 
language as NERC.
    <bullet> Changes to definitions, such as the ``Request for 
Interchange'' definition, where the words are not identical, but are 
compatible with NERC's, facilitating coordination with the NERC INT 
Reliability Standards but reflecting the different responsibilities of 
the two organizations.
    <bullet> Changes to definitions, where NERC does not have a 
corresponding definition in its Glossary, but the WEQ modified its 
definitions, such as the ``Approval Entity'' definition, to reflect the 
definition changes previously discussed.
    <bullet> Changes to delete definitions no longer needed in the 
Coordinate Interchange business practice standards or that had been 
replaced by other definitions. Deleted definitions include: ``Checkout 
Process''; ``Interchange Transaction''; ``Interchange Transaction 
Tag''; ``Interconnection''; ``Market Operator''; ``Scheduling Agent''; 
and ``Transmission Service Provider''.
    <bullet> Changes to the Coordinate Interchange business practice 
standards made to better coordinate with NERC's

[[Page 21097]]

INT Reliability Standards. The standards were modified to: (1) 
incorporate the revised definitions; (2) provide greater detail, as in 
WEQ Standard 004-3; (3) add new standards to clarify and better 
coordinate with NERC, such as in WEQ Standard 004-2.2; and (4) delete 
standards that are no longer appropriate, such as WEQ Standard 004-1.2.
    18. The Coordinate Interchange business practices standards were 
also modified to reflect the current business practices of the Eastern 
and Western Interconnections and ERCOT. Language previously included in 
Appendix A was moved to Coordinate Interchange business practice 
standards 004-3, 004-3.1, and 004-8.2.
    19. NYISO requests that the Commission not overturn any existing 
waivers of the WEQ-004 Standard that the Commission previously granted 
to entities. NYISO states that, in an order issued on November 16, 
2006, the Commission granted it waivers of certain NAESB business 
practice standards, including certain portions of the WEQ-004 
Standard.\8\ NYISO points to the waiver it received of WEQ-004-8.1 and 
Appendices A, B and D, to the extent these components of the WEQ-004 
Standard govern physical transmission capacity reservations. In 
requesting that waiver, the NYISO explained that such standards would 
not be applicable in the locational-based marginal price (LBMP) market 
it operates. NYISO also maintains that entities should not have to 
reapply for waivers they have already obtained.
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    \8\ New York Independent System Operator, Inc., 117 FERC ] 
61,197 (2006).
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    20. As we stated in Order No. 676, when parties seek regional or 
generic variations of the standards, they should raise their concerns 
in the WEQ standard development process:
    Now that the WEQ is developing these standards, we prefer that 
initially all regional and other generic requests for variances, 
such as to accommodate different business models, be raised during 
the WEQ standards development process, and we encourage 
participation by all interested persons in that process. * * * By 
first submitting the request to the WEQ during development of the 
standard, the request may be resolved during the WEQ process. Even 
if the request is not resolved by the WEQ, the process will help 
create a record should the requester seek a variance or waiver when 
the standard is presented to the Commission.\9\
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    \9\ Order No. 676 at P 78.

    21. We are very pleased that since the issuance of Order No. 676, 
parties have sought to raise their regional differences at NAESB, and 
this effort has resulted in consideration of these issues in the 
revised Coordinate Interchange Standards that we are adopting in this 
Final Rule.\10\ For example, the WEQ-004 Coordinate Interchange 
standards have been significantly revised, incorporating regional 
business practices for the Eastern, Western and ERCOT regions. NAESB 
also has voted to add a voting segment for ISOs/RTOs so these 
organizations can have any variance or other issues related to their 
business model addressed through the NAESB process. Having the industry 
determine such variances is preferable to having these issues raised in 
individual waiver requests with the Commission.
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    \10\ See, supra, discussion in P 18.
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    22. Because the Coordinate Interchange standards for which parties 
have previously been granted waivers have been revised as discussed 
above, we find that it will be necessary for all entities who have 
received waiver of any of the Coordinate Interchange standards to file 
to request a waiver of the revised standard. While we recognize the 
burden of having parties reapply for waivers, we cannot rule on 
individual waiver requests in a generic rulemaking proceeding and 
cannot determine without a specific waiver request whether any of the 
changes made by NAESB to the coordinate interchange standards have 
resolved any of the issues that gave rise to our grant of a waiver of 
the prior standard. As we stated in Order No. 676, utilities will not 
be required to comply with any standard for which they request waiver 
until we act on the waiver request.\11\ However, small entities that 
have obtained waiver of the Order No. 676 standards because they meet 
the criteria for small public utility waivers provided in Order No. 676 
need not apply for a waiver of the revised Coordinate Interchange 
standards, because their waivers were predicated on their status as 
small entities, which has not changed.\12\
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    \11\ Order No. 676 at P 102.
    \12\ Order No. 676 at P 85-87.
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    23. Parties seeking waivers of the requirements of this Order must 
file a request on or before the implementation date for this rule, 
specifying the exact provisions of the standards for which the waiver 
is sought, and including a full statement of the reasons the applicant 
believes such a waiver would be appropriate. The request should cover 
only the Coordinate Interchange business practice standards; waivers of 
other business practice standards remain unaffected by this Order.

III. Implementation Dates and Procedures

    24. Utilities are required to implement the Coordinate Interchange 
standards that we are incorporating by reference in this Final Rule by 
the later of the date when the Reliability Standards that the 
Commission approved in Order No. 693 become mandatory or the effective 
date of this rule.
    25. To reduce the burden on filers, as we did in Order No. 676, 
although public utilities must fully comply with the requirements of 
this Final Rule as soon as it becomes effective, we are not requiring 
public utilities immediately to file revised open access transmission 
tariffs (OATTs) incorporating these changes. When NAESB files the next 
version of the WEQ's electric standards, if the Commission decides to 
incorporate the new version of the WEQ's electric standards in its 
regulations, public utilities will at that time be required to file 
revised OATTs including these standards.

IV. Notice of Use of Voluntary Consensus Standards

    26. Office of Management and Budget (OMB) Circular A-119 (section 
11) (February 10, 1998) provides that when a federal agency issues or 
revises a regulation containing a standard, the agency should publish a 
statement in the Final Rule stating whether the adopted standard is a 
voluntary consensus standard or a government-unique standard. In this 
rulemaking, the Commission is incorporating by reference voluntary 
consensus standards developed by the WEQ.

V. Information Collection Statement

    27. OMB's regulations in 5 CFR 1320.11 (2005) require that it 
approve certain reporting and recordkeeping requirements (collections 
of information) imposed by an agency. Upon approval of a collection of 
information, OMB assigns an OMB control number and an expiration date. 
Respondents subject to the filing requirements of this Final Rule will 
not be penalized for failing to respond to this collection of 
information unless the collection of information displays a valid OMB 
control number.
    28. This Final Rule will affect will affect the following existing 
data collection: Standards for Business Practices and Communication 
Protocols for Public Utilities (FERC-717)
    29. The following burden estimate is based on the projected costs 
for the industry to implement revisions to the WEQ's Coordinate 
Interchange standards (WEQ-004). The following

[[Page 21098]]

burden estimates cover compliance with this rule:

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                                                                     Number of
                 Data collection                     Number of     responses per     Hours per     Total number
                                                    respondents     respondent       response        of hours
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FERC-717........................................             220               1               8            1760
                                                 ---------------------------------------------------------------
    Totals......................................  ..............  ..............  ..............            1760
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    Total Annual Hours for Collection (Reporting and Recordkeeping, (if 
appropriate)) = 1760.
    Information Collection Costs: The Commission projects the average 
annualized cost for all respondents to be the following:\13\
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    \13\ The total annualized costs for the information collection 
is $264,000. This number is reached by multiplying the total hours 
to prepare responses (1760 hours) by an hourly wage estimate of $150 
(a composite estimate that includes legal, technical and support 
staff rates, $90+$35+$25). $264,000 = $150 x 1760.

------------------------------------------------------------------------
                                                               FERC-717
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Annualized Capital/Startup Costs...........................     $264,000
Annualized Costs (Operations & Maintenance)................          N/A
                                                            ------------
    Total Annualized Costs.................................      264,000
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    30. The Commission sought comments on the burden of complying with 
the requirements imposed by these requirements. No comments addressed 
the reporting burden were filed.
    31. The Commission's regulations adopted in this rule are necessary 
to establish a more efficient and integrated wholesale electric power 
grid. Requiring such information ensures both a common means of 
communication and common business practices that provide entities 
engaged in the wholesale transmission of electric power with timely 
information and uniform business procedures across multiple 
transmission providers. These requirements conform to the Commission's 
goal for efficient information collection, communication, and 
management within the electric power industry. The Commission has 
assured itself, by means of its internal review, that there is 
specific, objective support for the burden estimates associated with 
the information requirements.
    32. OMB regulations \14\ require it to approve certain information 
collection requirements imposed by agency rule. The Commission is 
submitting notification of this Final Rule to OMB. These information 
collections are mandatory requirements.
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    \14\ 5 CFR 1320.11.
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    Title: Standards for Business Practices and Communication Protocols 
for Public Utilities (FERC-717) (formerly Open Access Same Time 
Information System).
    Action: Proposed collection.
    OMB Control No.: 1902-0173.
    Respondents: Business or other for profit, (Public Utilities--Not 
applicable to small businesses.).
    Frequency of Responses: One-time implementation (business 
procedures, capital/start-up).
    Necessity of the Information: This rule will upgrade the 
Commission's business practice and communication protocols (methods by 
which computers coordinate their communications) governing Coordinate 
Interchange transactions to complement the NERC INT Reliability 
Standards approved by the Commission in Order No. 693. The 
implementation of these standards and regulations is necessary to 
increase the efficiency of the wholesale electric power grid. The 
standards being adopted define procedures for market participants to 
request the implementation of Interchange Transactions or agreements to 
transfer energy from a seller to a buyer that crosses one or more 
Balancing Authority boundaries.
    33. The information collection requirements of this Final Rule are 
based on the transition from transactions being made under the 
Commission's existing business practice standards governing Coordinate 
Interchange transactions to conducting such transactions under the 
revised Coordinate Interchange standards (WEQ-004) adopted in this 
rule. The implementation of these data requirements will help the 
Commission carry out its responsibilities under the FPA. The Commission 
will use the data in rate proceedings to review rate and tariff changes 
by public utilities, for general industry oversight, and to supplement 
the documentation used during the Commission's audit process.
    34. Interested persons may obtain information on the reporting 
requirements by contacting: Federal Energy Regulatory Commission, Attn: 
Michael Miller, Office of the Executive Director, 888 First Street, 
NE., Washington, DC 20426, Tel: (202) 502-8415 / Fax: (202) 273-0873, 
E-mail: <a href="/cdn-cgi/l/email-protection#4924202a21282c2567242025252c3b092f2c3b2a672e263f"><span class="__cf_email__" data-cfemail="81ece8e2e9e0e4edafece8edede4f3c1e7e4f3e2afe6eef7">[email protected]</span></a>.

or by contacting: Office of Information and Regulatory Affairs, Office 
of Management and Budget, Washington, DC 20503, Attention: Desk Officer 
for the Federal Energy Regulatory Commission. (Re: OMB Control Nos. 
1902-0096 & 1902-0173) , Tel: (202) 395-4650, E-mail: <a href="/cdn-cgi/l/email-protection#f59a9897aa868097989c86869c9a9b86b59a9897db909a85db929a83"><span class="__cf_email__" data-cfemail="107f7d724f6365727d796363797f7e63507f7d723e757f603e777f66">[email protected]</span></a>.

VI. Environmental Analysis

    35. 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.\15\ As the 
Commission stated in the Interchange NOPR, the Commission has 
categorically excluded certain actions from this requirement as not 
having a significant effect on the human environment. Included in this 
categorical exclusion are rules that are clarifying, corrective, or 
procedural, or that do not substantially change the effect of the 
regulations being amended.\16\ The categorical exclusion also includes 
information gathering, analysis, and dissemination.\17\ The 
requirements imposed by this Final Rule fall within categorical 
exclusions in the Commission's regulations for rules that are 
clarifying, corrective, or procedural, for information gathering, 
analysis, and dissemination, and for sales, exchange, and 
transportation of electric power that requires no construction of 
facilities.\18\ As a result, neither an environmental impact statement 
nor an environmental assessment is required.
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    \15\ Regulations Implementing the National Environmental Policy 
Act, Order No. 486, 52 FR 47897, FERC Stats. & Regs., Regulations 
Preambles 1986-1990 ] 30,783 (1987).
    \16\ 18 CFR 380.4(a)(2)(ii).
    \17\ 18 CFR 380.4(a)(5).
    \18\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).

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[[Page 21099]]

VII. Regulatory Flexibility Act Certification

    36. The Regulatory Flexibility Act of 1980 (RFA) \19\ generally 
requires a description and analysis of any final rule that will have 
significant economic impact on a substantial number of small entities. 
The rule adopted here imposes requirements only on public utilities, 
which are not small businesses, and these requirements are, in fact, 
designed to benefit all customers, including small businesses.
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    \19\ 5 U.S.C. 601-612.
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    37. The Commission has followed the provisions of both the RFA and 
the Paperwork Reduction Act on potential impact on small businesses and 
other small entities. Specifically, the RFA directs agencies to 
consider four regulatory alternatives to be considered in a rulemaking 
to lessen the impact on small entities: tiering or establishment of 
different compliance or reporting requirements for small entities, 
classification, consolidation, clarification or simplification of 
compliance and reporting requirements, performance rather than design 
standards, and exemptions. As the Commission originally stated in Order 
No. 889, the OASIS regulations now known as ``Standards for Business 
Practices and Communication Protocols for Public Utilities'' apply only 
to public utilities that own, operate, or control transmission 
facilities subject to the Commission's jurisdiction, and should a small 
entity be subject to the Commission's jurisdiction, it may file for 
waiver of these regulations.\20\ The Commission is not modifying its 
prior determinations on this issue in this Final Rule.
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    \20\ Small entities that qualified for a waiver from the 
requirements of Order Nos. 888 and 889 may apply for a waiver of the 
requirement to comply with the standards incorporated by reference 
in the regulations we are adopting in this Final Rule.
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    38. The procedures the Commission is following in this Final Rule 
are in keeping with exemption provisions of the RFA. Accordingly, 
pursuant to section 605(b) of the RFA,\21\ the Commission hereby 
certifies that the regulations proposed herein will not have a 
significant adverse impact on a substantial number of small entities.
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    \21\ 5 U.S.C. 605(b).
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VIII. Document Availability

    39. 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 p.m. Eastern time) at 888 First Street, NE., Room 2A, 
Washington, DC 20426.
    40. From the Commission's Home Page on the Internet, this 
information is available in the eLibrary. The full text of this 
document is available in the eLibrary both in PDF and Microsoft Word 
format for viewing, printing, and/or downloading. To access this 
document in eLibrary, type ``RM05-5'' in the docket number field.
    41. User assistance is available for eLibrary and the Commission's 
Web site during the Commission's normal business hours. For assistance 
contact the Commission's Online Support services at 
<a href="/cdn-cgi/l/email-protection#84c2c1d6c7cbeae8edeae1d7f1f4f4ebf6f0c4e2e1f6e7aae3ebf2"><span class="__cf_email__" data-cfemail="e4a2a1b6a7ab8a888d8a81b79194948b9690a482819687ca838b92">[email protected]</span></a> or toll-free at (866) 208-3676, or for TTY, 
contact (202) 502-8659.

IX. Effective Date and Congressional Notification

    42. This Final Rule will become effective May 30, 2007. The 
Commission has determined with the concurrence of the Administrator of 
the Office of Information and Regulatory Affairs, Office of Management 
and Budget, that this rule is not a major rule within the meaning of 
section 251 of the Small Business Regulatory Enforcement Fairness Act 
of 1996.\22\
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    \22\ See 5 U.S.C. 804(2).
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List of Subjects

18 CFR Part 38

    Conflict of interests, Electric power plants, Electric utilities, 
Incorporation by reference, Reporting and recordkeeping requirements.

    By the Commission.
Philis J. Posey,
Deputy Secretary.

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In consideration of the foregoing, the Commission amends Chapter I, 
Title 18, part 38 of the Code of Federal Regulations, as follows:

PART 38--BUSINESS PRACTICE STANDARDS AND COMMUNICATION PROTOCOLS 
FOR PUBLIC UTILITIES

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

    Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42 
U.S.C. 7101-7352.


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2. In Sec.  38.2, paragraph (a)(4) is revised to read as follows:


Sec.  38.2  Incorporation by reference of North American Energy 
Standards Board Wholesale Electric Quadrant standards.

    (a) * * *
    (4) Coordinate Interchange (WEQ-004, June 22, 2006);
* * * * *
 [FR Doc. E7-7892 Filed 4-27-07; 8:45 am]
BILLING CODE 6717-01-P


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