Document ID: FERC-2008-1035-0001
Agency: ferc
Document Type: Proposed Rule
Title: Order Requesting Supplemental Comments
Posted Date: 2008-07-24T04:00Z

[Federal Register: July 24, 2008 (Volume 73, Number 143)]
[Proposed Rules]               
[Page 43175-43178]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24jy08-19]                         

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 33

[Docket No. RM07-21-002]

 
Order Requesting Supplemental Comments

Issued July 17, 2008.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Order Requesting Supplemental Comments.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) requests 
supplemental comments on the scope and form of the reporting 
requirements under the expanded blanket authorization established in 
Order No. 708-A, which amends section 33.1(c)(12) of the Commission's 
regulations.

DATES: Comments are due September 22, 2008.

FOR FURTHER INFORMATION CONTACT:
    Carla Urquhart (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE.,Washington, 
DC 20426, (202) 502-8496.
Mosby Perrow (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426, (202) 502-6498.
Andrew Mosier (Technical Information), Office of Energy Market 
Regulation, Federal Energy Regulatory

[[Page 43176]]

Commission, 888 First Street, NE., Washington, DC 20426, (202) 502-
6274.
Ronald Lafferty (Technical Information), Office of Energy Market 
Regulation, Federal Energy Regulatory Commission, 888 First Street, 
NE., Washington, DC 20426, (202) 502-8026.

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

    1. In this order, the Federal Energy Regulatory Commission 
(Commission) seeks supplemental comments on the narrow issue of the 
scope and form of reporting requirements that would apply to the 
expanded blanket authorization under section 33.1(c)(12) of the 
Commission's regulations,\1\ adopted in Order No. 708-A\2\ issued 
concurrently with this order and as discussed below.
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    \1\ 18 CFR 33.1(c)(12).
    \2\ Blanket Authorizations Under FPA Section 203, Order No. 708, 
73 FR 11003 (Feb. 29, 2008), FERC Stats. & Regs. ] 31,265 (2008), 
124 FERC ] 61,048.
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I. Background

    2. In Order No. 708, the Commission amended its regulations under 
section 203 of the Federal Power Act (FPA) to provide for five 
additional blanket authorizations under FPA section 203(a)(1).\3\ The 
Commission found that the blanket authorizations would facilitate 
investment in the electric utility industry and, at the same time, 
ensure that public utility customers are adequately protected from any 
adverse effects of such transactions. One of the additional blanket 
authorizations provided that a public utility could transfer its 
outstanding voting securities to any holding company granted blanket 
authorizations in paragraph (c)(2)(ii) of FPA section 203, if after the 
transfer, the holding company and any of its associate or affiliate 
companies in aggregate would own less than 10 percent of the 
outstanding voting interests of such public utility. In adopting 
proposed regulation section 33.1(c)(12), the Commission rejected 
requests to extend the blanket authorization to ``any person,'' on the 
grounds that without increased reporting requirements, any such 
extension under section 33.1(c)(12) would best be made on a case-by-
case basis.\4\ The Commission also rejected requests to expand the 
reporting requirements applicable to the Commission's blanket 
authorizations under section 33.1 of the Commission's regulations.
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    \3\ 16 U.S.C. 824b(a)(1).
    \4\ Order No. 708, FERC Stats. & Regs. ] 31,265 at P 20.
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    3. In Order No. 708-A, the Commission granted, in part, and denied, 
in part, the requests for rehearing of Order No. 708. Among other 
things, the Commission expanded the blanket authorization under section 
33.1(c)(12) to authorize a public utility to transfer its outstanding 
voting securities to ``any person'' other than a holding company if, 
after the transfer, such person and any of its associate or affiliate 
companies will own less than 10 percent of the outstanding voting 
interests of such public utility. The Commission stated that it would 
also adopt a reporting requirement for entities transacting under that 
blanket authorization. In order to properly tailor additional reporting 
requirements, the Commission also stated that it would issue a request 
for supplemental comments on the narrow issue of the scope and form of 
the reporting requirements under the expanded blanket authorizations 
under section 33.1(c)(12).

II. Discussion

    4. As the Commission stated in Order No. 708, in order to extend 
the blanket authorization under section 33.1(c)(12) to include ``any 
person,'' the Commission would need to establish appropriate reporting 
requirements so that we could monitor transfers to non-holding 
companies. The Commission explained that, although there is a 
presumption that less than 10 percent of a utility's shares will not 
result in a change of control, this presumption is rebuttable. In some 
instances, the transfer of less than 10 percent of voting shares may 
constitute a transfer of control.\5\ The Commission stated that it 
recognized that it could reduce regulatory burdens and encourage 
investment to allow transfers of securities not only to holding 
companies but to other ``persons,'' and that such transfers would not 
harm competition or customers as long as there was a sufficient ability 
to monitor possible changes in control of public utilities.
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    \5\ See Order No. 708, FERC Stats. & Regs. ] 31,265 at P 20; FPA 
Section 203 Supplemental Policy Statement, 72 FR 42277 (Aug. 2, 
2007), FERC Stats. & Regs. ] 31,253, at P 58, n.48 (2007).
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    5. In Order No. 708-A, the Commission granted Financial 
Institutions Energy Group's (Financial Group) request to extend the 
blanket authorization under section 33.1(c)(12) to cover public utility 
dispositions to non-holding companies, subject to the same ``in 
aggregate'' limitations imposed on transfers to holding companies. The 
Commission denied American Public Power Association's and the National 
Rural Electric Cooperative Association's (APPA/NRECA) general request 
for additional reporting requirements. Nevertheless, the Commission 
explained that, in order to properly tailor additional reporting 
requirements for the expanded blanket authorization under section 
33.1(c)(12), it would issue a concurrent request for supplemental 
comments that would seek comments on the narrow issue of the scope and 
form of the reporting requirements under the expanded blanket 
authorization.
    6. In support of its argument that the Commission should have 
extended the blanket authorization under section 33.1(c)(12) to cover 
public utility dispositions to non-holding companies, Financial Group 
proposed reporting requirements for transactions involving non-holding 
companies that it argues should be at least as helpful to the 
Commission as the preexisting reporting requirements applicable to 
holding companies. Because commenters did not have the opportunity to 
comment on the specific reporting requirements proposed by Financial 
Group, we are requesting supplemental comments on this narrow reporting 
issue.
    7. Financial Group proposes that within a specified time following 
consummation of the transaction (e.g., 30 days), the following 
information be reported: (1) Names of all parties to the transaction; 
(2) identification of both the pre-transaction and post-transaction 
voting security holdings (and the percentage ownership) in the public 
utility held by the acquirer and its associates or affiliate companies; 
(3) the date the transaction was consummated; (4) identification of any 
public utility or holding company affiliates of the parties to the 
transaction; and (5) the same type of statement currently required 
under section 33.2(j)(1),\6\ which describes Exhibit M to an FPA 
section 203 filing.
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    \6\ 18 CFR 33.2(j)(1).
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    8. As we have granted the blanket authorization under section 
33.1(c)(12) to include ``any person,'' we seek supplemental comments on 
the narrow issue of the scope and form of the reporting requirements 
under the expanded blanket authorization. For example, we seek comment 
on whether Financial Group's proposed reporting requirement should be 
adopted, as proposed or modified. If commenters do not believe that 
Financial Group's proposal as to reporting requirements is appropriate, 
they should explain why

[[Page 43177]]

and propose alternative reporting requirements. We also seek comment as 
to whether reports should be filed with the Commission on a quarterly 
basis or on some other basis. We note that the expanded blanket 
authorization will not become effective until the Commission's order on 
reporting requirements becomes effective.

III. Information Collection Statement

    9. The Office of Management and Budget (OMB) regulations require 
that OMB approve certain reporting and record keeping (information 
collections) imposed by agency rules.\7\ Therefore, the Commission is 
submitting a proposed information collection to OMB for review and 
approval in accordance with section 3507(d) of the Paperwork Reduction 
Act of 1995.\8\ Here, the Commission has expanded a blanket 
authorization to additional entities under section 33.1(c)(12), and now 
requests supplemental comments on the scope and form of the reporting 
requirements for entities that transact under the expanded blanket 
authorization.
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    \7\ 5 CFR 1320.12.
    \8\ 44 U.S.C. 3507(d).
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    10. Comments are solicited on the Commission's need for this 
information, whether the information will have practical utility, the 
accuracy of provided burden estimates, ways to enhance the quality, 
utility, and clarity of the information to be collected, and any 
suggested methods for minimizing respondents' burden, including the use 
of automated information techniques.
    Burden Estimate: The public reporting burden for the proposed 
reporting requirements and the records retention requirement is as 
follows.

----------------------------------------------------------------------------------------------------------------
                                                     Number of       Number of       Hours per
            Data collection FERC-519                respondents      responses       response          Total
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Reporting.......................................              20               1               1              20
¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤
    Total.......................................              20               1               1              20
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    Information Collection Costs: The Commission seeks comments on the 
cost to provide this information to the Commission. It has projected 
the average annualized cost of all respondents to be the following: 20 
hours (reporting) @ $66 per hour = $1,320 for respondents. No capital 
costs are estimated to be incurred by respondents.
    Title: FERC-519, ``Application Under the Federal Power Act, Section 
203''.
    Action: Revised Collection.
    OMB Control No: 1902-0082.
    The applicant will not be penalized for failure to respond to this 
information collection unless the information collection displays a 
valid OMB control number or the Commission has provided justification 
as to why the control number should not be displayed.
    Respondents: Businesses or other for profit.
    Frequency of Responses: On occasion.
    Necessity of the Information: This order requesting supplemental 
comments proposes codification of a limited reporting requirement for 
entities taking advantage of a blanket authorization under FPA section 
203(a)(1), which in turn provides for a category of jurisdictional 
transactions under section 203(a)(1) for which the Commission would not 
require applications seeking before-the-fact approval. The information 
will enable the Commission and the public to monitor transactions that 
occur under the 18 CFR 33.1(c)(12) blanket authorization, as extended 
in Order No. 708-A.
    Internal Review: The Commission has conducted an internal review of 
the public reporting burden associated with the collection of 
information and assured itself, by means of internal review, that there 
is specific, objective support for its information burden estimate.
    11. Interested persons may obtain information on the reporting 
requirements by contacting: Federal Energy Regulatory Commission, 888 
First Street, NE., Washington, DC 20426 [Attention: Michael Miller, 
Office of the Executive Director, Phone (202) 502-8415, fax (202) 273-
0873, e-mail: michael.miller@ferc.gov]. Comments on the requirements of 
the order requesting supplemental comment may also be sent to the 
Office of Information and Regulatory Affairs, Office of Management and 
Budget, Washington, DC 20503 [Attention: Desk Officer for the Federal 
Energy Regulatory Commission, fax (202) 395-7285, e-mail oira_
submission@omb.eop.gov].

IV. Environmental Analysis

    12. 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.\9\ No environmental consideration is necessary for 
Commission action that involves information gathering, analysis, and 
dissemination.\10\ This request for supplemental comments seeks 
comments on the scope and form of the reporting requirements under the 
expanded blanket authorization under section 33.1(c)(12). Consequently, 
neither an environmental impact statement nor an environmental 
assessment is required.
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    \9\ Regulations Implementing National Environmental Policy Act, 
52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. ] 30,783 (1987).
    \10\ 18 CFR 380.4(a)(5).
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V. Regulatory Flexibility Act

    13. The Regulatory Flexibility Act of 1980 (RFA) \11\ 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 significant economic 
impact on a substantial number of small entities. Most utilities to 
which this reporting requirement applies would not fall within the 
RFA's definition of small entity.\12\ Consequently, the Commission 
certifies that this reporting requirement will not have a significant 
economic impact on a substantial number of small entities.
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    \11\ 5 U.S.C. 601-12.
    \12\ 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. 13 CFR 121.201.
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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

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FERC's Home Page (http://www.ferc.gov) and in FERC'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.
    15. From FERC's Home Page on the Internet, this information is 
available on eLibrary. The full text of this document is available on 
eLibrary in PDF and Microsoft Word format for viewing, printing, and/or 
downloading. To access this document in eLibrary, type the docket 
number excluding the last three digits of this document in the docket 
number field.
    16. User assistance is available for eLibrary and the FERC's Web 
site during normal business hours from FERC Online Support at 202-502-
6652 (toll free at 1-866-208-3676) or e-mail 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.

List of Subjects in 18 CFR Part 33

    Electric utilities, Reporting and recordkeeping requirements.

    By the Commission.
Kimberly D. Bose,
Secretary.
 [FR Doc. E8-16868 Filed 7-23-08; 8:45 am]

BILLING CODE 6717-01-P