Document ID: FERC-2012-0031-0001
Agency: ferc
Document Type: Notice
Title: Paper Hearing Procedures: ITC Holdings Corp.
Posted Date: 2012-01-05T05:00Z

[Federal Register Volume 77, Number 3 (Thursday, January 5, 2012)]
[Notices]
[Pages 487-488]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-33829]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. PA10-13-000]

ITC Holdings Corp.; Notice of Paper Hearing Procedure

    Take notice that on October 31, 2011, ITC Holdings Corp. and ITC 
Midwest LLC (collectively, ITC) filed a request for Commission review 
of certain findings and recommendations in the September 30, 2011 Audit 
Report (Audit Report) in this docket issued by the Director of the 
Office of Enforcement under authority delegated to him by section 
375.311 of the Commission's regulations, 18 CFR 375.311 (2011). ITC 
submitted its request for review under Part 41 of the Commission's 
regulations, 18 CFR Part 41.2. In accordance with section 41.3, ITC 
requested the use of shortened procedures. Pursuant to section 41.3, 
the Commission directs the commencement of a paper hearing. The 
Commission further provides clarification on the scope of the paper 
hearing.
    ITC's filing states that it challenges the Audit Report's findings 
that ITC Midwest ``improperly recovered from customers through formula 
rate billings amounts associated with the tax effects of amortized 
goodwill reported in Account 211, Miscellaneous Paid-In Capital. It 
also over-accrued its allowance for funds used during construction 
(AFUDC).'' ITC also challenges recommendations 2-4 in the Audit Report:
    2. Remove the overstated equity amounts associated with the tax 
effects of amortized goodwill reported in Account 211. File all 
correcting entries and supporting documentation with the Division of 
Audits within 30 days of the issuance of a final audit report in this 
docket.
    3. Record and file, with supporting documentation, all correcting 
entries and calculations to correct all account balances affected by 
the over-accrual of AFUDC.
    4. Adjust formula rate billings, as appropriate, for amounts 
inappropriately recovered from customers associated with the tax 
effects of amortized goodwill and related over-accrual of AFUDC. 
Compute interest on the adjustments in accordance with 18 CFR 35.19a. 
File a refund analysis with the Commission within 30 days of the 
issuance of a final audit report in this docket.

The scope of the paper hearing is limited to these challenged findings 
and recommendations.
    In accordance with section 41.3, ITC and any other interested 
entity, including the Commission staff, shall file, within 45 days of 
this notice, an initial memorandum that addresses the relevant facts 
and applicable law that support the position or positions taken 
regarding the matters at issue. Reply memoranda may be filed by 
participants who filed initial memoranda. Reply memoranda must be filed 
within 20 days of the due date for initial memoranda. Pursuant to 
section 41.3, subpart T of Part 385 of the Commission's regulations 
shall apply to all filings. Further, pursuant to section 41.4, each 
entity's memorandum should set out the facts and argument as prescribed 
for briefs in 18 CFR 385.706 (2011). Section 41.5 also requires that 
the facts stated in the memorandum must be sworn to by persons having 
knowledge thereof, which latter fact must affirmatively appear in the 
affidavit.
    eFiling is encouraged. More detailed information relating to filing 
requirements, interventions, protests, service, and qualifying 
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call (866) 208-3676 
(toll free). For TTY, call (202) 502-8659.

[[Page 488]]

    Dated: December 29, 2011.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2011-33829 Filed 1-4-12; 8:45 am]
BILLING CODE 6717-01-P