Federal Register / Vol. 72, No. 82 / Monday, April 30, 2007 / Rules and Regulations 21095 

1 16 U.S.C. 791a, et seq. 

2Standards 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). 

Issued in Kansas City, Missouri, on April 

20, 2007. 

Charles L. Smalley, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E7–8071 Filed 4–27–07; 8:45 am] 

BILLING CODE 4910–13–P 

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. 

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. 

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. 

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 


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21096 Federal Register / Vol. 72, No. 82 / Monday, April 30, 2007 / Rules and Regulations 

3Standards 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). 

4 Mandatory Reliability Standards for the BulkPower 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). 

5The 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. 

6The 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). 7Order No. 676 at P 40. 

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. 

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

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. 

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

16. The revised Coordinate 

Interchange business practice standards 

the WEQ adopted to replace the deleted 

NERC standards include: 

• 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. 

• 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. 

• 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. 

• 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. 

• 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: 

• New and revised definitions, such 

as changing ‘‘Reliability Authority’’ to 

‘‘Reliability Coordinator’’. 

• 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. 

• 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. 

• 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. 

• 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’’. 

• Changes to the Coordinate 

Interchange business practice standards 

made to better coordinate with NERC’s 


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8New York Independent System Operator, Inc., 

117 FERC ¶ 61,197 (2006). 

9Order No. 676 at P 78. 

10See, supra, discussion in P 18. 

11Order No. 676 at P 102. 

12Order No. 676 at P 85–87. 

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. 

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

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. 

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

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 governmentunique 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 


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13The 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 × 1760. 

14 5 CFR 1320.11. 

15Regulations 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). 

18See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 

380.4(a)(27). 

burden estimates cover compliance with 

this rule: 

Data collection Number of 

respondents 

Number of responses per 

respondent 

Hours per 

response 

Total number 

of hours 

FERC–717 ....................................................................................................... 220 1 8 1760 

Totals ........................................................................................................ ........................ ........................ ........................ 1760 

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

FERC–717 

Annualized Capital/Startup 

Costs ..................................... $264,000 

Annualized Costs (Operations 

& Maintenance) ..................... N/A 

Total Annualized Costs ..... 264,000 

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. 

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: 

michael.miller@ferc.gov. 

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: 

omb_submissions@omb.eop.gov. 

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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19 5 U.S.C. 601–612. 

20Small 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. 

21 5 U.S.C. 605(b). 22See 5 U.S.C. 804(2). 

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. 

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. 

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. 

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 

FERCOnlineSupport@ferc.gov or tollfree 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

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. 

■ 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 

■ 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. 

■ 2. In § 38.2, paragraph (a)(4) is revised 

to read as follows: 

§ 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 

RAILROAD RETIREMENT BOARD 

20 CFR Part 220 

RIN 3220–AB50 

Determining Disability 

AGENCY: Railroad Retirement Board. 

ACTION: Final rule. 

SUMMARY: The Board amends its 

regulations to index the amount of 

earnings used to determine if an 

individual is engaged in substantial 

gainful activity (SGA) to any increase in 

the Social Security national average 

wage index, to increase from $200 to 

$530 the minimum amount of monthly 

earnings to count during a trial work 

period and then index that amount to 

the Social Security national average 

wage index. 

DATES: These rules are effective on April 

30, 2007. 

ADDRESSES: Beatrice Ezerski, Secretary 

to the Board, Railroad Retirement Board, 

844 N. Rush Street, Chicago, Illinois 

60611–2092. 

FOR FURTHER INFORMATION CONTACT: 

Marguerite P. Dadabo, Assistant General 

Counsel, Office of General Counsel, 

Railroad Retirement Board, 844 N. Rush 

Street, Chicago, Illinois 60611–2092, 

(312) 751–4945, TDD (312) 751–4701. 

SUPPLEMENTARY INFORMATION: The 

Railroad Retirement Act provides for 

disability annuities for employees, 

widow(er)s, and children of deceased 

railroad employees who are unable to 

engage in any regular employment 

because of a physical or mental 

impairment. Regular employment is 

defined by reference to the definition of 

substantial gainful activity under the 

Social Security Act. Sections 220.141 

and 220.142 of the Board’s regulations 

reflect this definition and define 

‘‘substantial gainful activity’’ (SGA) as 

work activity that involves doing 

significant physical or mental activities 

for pay or profit. Work activity is gainful 

if it is the kind of work usually done for 

pay or profit, whether or not profit is 

realized. Section 220.143 sets forth 

earnings levels at which the Board 

considers a person to be engaged in SGA 

regardless of the severity of his or her 

impairment. The amount of average 

monthly earnings that ordinarily 

demonstrates SGA was increased 

effective July 1, 1999, when the Board 


pwalker on PROD1PC71 with RULES