Document ID: FERC-2010-0998-0001
Agency: ferc
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2010-07-19T04:00Z

[Federal Register: July 19, 2010 (Volume 75, Number 137)]
[Notices]               
[Page 41840-41842]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19jy10-48]                         

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC10-919-000]

 
Commission Information Collection Activities (FERC-919); Comment 
Request; Extension

July 13, 2010.
AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of proposed information collection and request for 
comments.

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SUMMARY: In compliance with the requirements of section 3506(c)(2)(A) 
of the Paperwork Reduction Act of 1995, 44 U.S.C. 3506(c)(2)(A) (2006), 
(Pub. L. No. 104-13), the Federal Energy Regulatory Commission 
(Commission or FERC) is soliciting public comment on the proposed 
information collection described below.

DATES: Comments in consideration of the collection of information are 
due 60 days after publication of this Notice in the Federal Register.

ADDRESSES: Comments may be filed either electronically (eFiled) or in 
paper format, and should refer to Docket No. IC10-919-000. Documents 
must be prepared in an acceptable filing format and in compliance with 
Commission submission guidelines at http://www.ferc.gov/help/
submission-guide.asp. eFiling instructions are available at: http://
www.ferc.gov/docs-filing/efiling.asp. First time users must follow 
eRegister instructions at: http://www.ferc.gov/docs-filing/
eregistration.asp, to establish a user name and password before 
eFiling. The Commission will send an automatic acknowledgement to the 
sender's e-mail address upon receipt of eFiled comments. Commenters 
making an eFiling should not make a paper filing. Commenters that are 
not able to file electronically must send an original and two (2) paper 
copies of their comments to: Federal Energy Regulatory Commission, 
Secretary of the Commission, 888 First Street, NE., Washington, DC 
20426.
    Users interested in receiving automatic notification of activity in 
this docket may do so through eSubscription at http://www.ferc.gov/
docs-filing/esubscription.asp. In addition, all comments and FERC 
issuances may be viewed, printed or downloaded remotely through FERC's 
eLibrary at http://www.ferc.gov/docs-filing/elibrary.asp, by searching 
on Docket No. IC10-919-000. For user assistance, contact FERC Online 
Support by e-mail at ferconlinesupport@ferc.gov, or by phone at: (866) 
208-3676 (toll-free) or (202) 502-8659 for TTY.

FOR FURTHER INFORMATION CONTACT: Michael Miller may be reached by e-
mail at DataClearance@FERC.gov, telephone at (202)502-8415, and fax at 
(202)273-0873.

SUPPLEMENTARY INFORMATION: The information collected under FERC-919 
(OMB Control No. 1902-0234) ``Electric Rate Schedule Filings: RM04-7-
000 Final Rule: Market Based Rates for Wholesale Sales of Electric 
Energy, Capacity and Ancillary Services by Public Utilities'' is 
necessary to ensure that market-based rates charged by public utilities 
are just and reasonable as mandated by Federal Power Act (FPA) sections 
205 and 206. Section 205 of the FPA requires just and reasonable rates 
and charges. Section 206 allows the Commission to revoke a seller's 
market-based rate authorization if it determines that the seller may 
have gained market power since it was originally granted market-based 
rate authorization by the Commission.
    On June 21, 2007, the Commission issued Order No. 697 \1\ to modify 
subpart H to 18 Code of Federal Regulations (CFR) part 35. In Order No. 
697, the Commission revised and codified market-based rate standards 
for generating electric utilities for use in the Commission's 
determination of whether a wholesale seller of electric energy, 
capacity or ancillary services qualifies for market-based rate 
authority. Subpart H contains the regulations necessary to mandate that 
sellers submit market power analyses and related reports.
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    \1\ Market-Based Rates for Wholesale Sales of Electric Energy, 
Capacity and Ancillary Services by Public Utilities, Order No. 697, 
72 FR 39,904 (Jul. 20, 2007), FERC Stats. & Regs. ] 31,252 (2007) 
(Final Rule).
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    Market power analyses must address both horizontal and vertical 
market power. To demonstrate lack of horizontal market power, two 
indicative market power screens are required under Order No. 697: The 
uncommitted pivotal supplier screen, which is based on the annual peak 
demand of the relevant market, and the uncommitted market share screen 
applied on a seasonal basis. These screens examine whether a seller has 
the ability to exercise horizontal market power. Sellers that fail 
either screen are rebuttably presumed to have market power, and a 
seller that fails either screen may submit a delivered price test 
analysis to rebut the presumption of horizontal market power. If a 
seller fails to rebut the presumption of horizontal market power, the 
Commission sets the just and reasonable rate at the default cost-based 
rate unless it approves different mitigation based on case-specific 
circumstances. For a seller that already makes wholesale sales at 
market-based rates, rates are not revoked and cost-based rates are not 
imposed until the Commission issues an order making a definitive 
finding that the seller has market power or, where the seller accepts a 
presumption of market power, an order is issued addressing whether 
default cost-based rates or case-specific cost-based rates are to be 
applied. Once an order is issued, the Commission revokes the market-
based rate authority in all geographic markets where a seller is found 
to have market power.\2\
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    \2\ The seller has the option of withdrawing its market-based 
rate request in whole or in part.
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    Sellers that own or control more than 500 megawatts of generation 
and/or that own, operate or control transmission facilities, are 
affiliated with any entity that owns, operates or controls transmission 
facilities in the same region as the seller's generation assets, or 
with a franchised public utility in the

[[Page 41841]]

same region as the seller's generation assets are required to file 
updated market power analyses every three years. The updated market 
power analyses must demonstrate that a seller does not possess 
horizontal market power. A pivotal supplier power analysis and a market 
share analysis must be submitted, and if the seller fails either, a 
delivered price test analysis must be submitted as well. When 
submitting horizontal market power analyses, a seller must use the form 
provided in Appendix A of Subpart H and include all materials 
referenced.
    To demonstrate a lack of vertical market power, to the extent that 
a public utility with market-based rates, or any of its affiliates, 
owns, operates or controls transmission facilities, it must have on 
file with the Commission, a Commission-approved Open Access 
Transmission Tariff (burden reported separately in information 
collection 1902-0096). In addition, in order for a seller to 
demonstrate that it satisfies the Commission's vertical market power 
analysis, it must also demonstrate that neither it nor its affiliates 
can erect other barriers to entry. To demonstrate a lack of vertical 
market power in wholesale energy markets through the affiliation, 
ownership, or control of inputs to electric power production, such as 
the transportation or distribution of the inputs to electric power 
production, a seller must submit: A description of its ownership or 
control of, or affiliation with an entity that owns or controls, 
intrastate natural gas transportation, intrastate natural gas storage 
or distribution facilities; sites for generation capacity development; 
and physical coal supply sources and ownership or control over who may 
access transportation of coal supplies. In addition, a seller is 
required to make an affirmative statement that it has not erected 
barriers to entry into the relevant market and will not erect barriers 
to entry into the relevant market.
    Lastly, a seller must submit an asset appendix with its initial 
application for market-based rate authorization or updated market power 
analysis, and all relevant change in status filings. The asset appendix 
must list, among other things, all affiliates that have market-based 
rate authority and identify any generation assets owned or controlled 
by the seller and any such affiliate. The appendix must list all 
generation assets owned (clearly identifying which affiliate owns which 
asset) or controlled (clearly identifying which affiliate controls 
which asset) by the corporate family by balancing authority area, and 
by geographic region, and provide the in-service date and nameplate 
and/or seasonal ratings by unit. In addition, the appendix must reflect 
all electric transmission and natural gas intrastate pipelines and/or 
gas storage facilities owned or controlled by the corporate family and 
the location of such facilities. (see subpart H, appendix B for 
standard form).
    Wholesale power marketers and wholesale power producers that are 
not affiliated with franchised public utilities or transmission owners, 
that do not own transmission, and that do not, together with all of 
their affiliates, own or control more than 500 MW of generation in the 
relevant region are not required to submit updated market power 
analyses. The Commission determines which sellers are in this category 
through information filed by the utility either when the seller files 
its initial application for market-based rate authorization, or through 
a separate filing made to request such a determination.
    In early 2005, the Commission clarified and standardized market-
based rate sellers' reporting requirements for any change in status 
that departed from the characteristics the Commission relied on in 
initially authorizing sales at market-based rates. In Order No. 652,\3\ 
the Commission required, as a condition of obtaining and retaining 
market-base rate authority, that sellers file notices of such changes 
no later than 30 days after the change in status occurs. Order No. 697 
incorporated minor revisions to the change in status reporting 
requirements. The order also codified the requirement that each seller 
include an appendix identifying specified assets with each pertinent 
change in status notification filed (see subpart H, appendix B for 
standard form).
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    \3\ Order No. 652 at P 47.
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    In Order No. 697-C, in order to address concerns regarding a 
seller's ability to erect barriers to entry through its acquisition of 
control of sites for new generation capacity development, the 
Commission clarified that all entities with market-based rate 
authorization are required to report on a quarterly basis,\4\ the 
acquisition of control of a site or sites for new generation capacity 
development for which site control has been demonstrated in the 
interconnection process and for which the potential number of megawatts 
that are reasonably commercially feasible on the site or sites for 
which new generation capacity development is equal to 100 megawatts or 
more. A notification of change in status that is submitted to report 
the acquisition of control of a site or sites for new generation 
capacity must include: The number of sites acquired; the relevant 
geographic market in which the sites are located; and the maximum 
number of megawatts that are reasonably commercially feasible on the 
sites reported.
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    \4\ All other change in status reports must be filed no later 
than 30 days after the change in status occurs. 18 CFR 35.42 (2010).
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    The market power analyses required by Order No. 697 helps to inform 
the Commission as to whether an entity seeking market-based rate 
authority lacks market power, and whether sales by that entity will be 
made at rates that are just and reasonable. The updated market power 
analyses allow the Commission to monitor changes in a seller's market 
power or potential abuses of market power, and enable the Commission to 
determine whether continued market-based rate authority will still 
yield rates that are just and reasonable. Market-based rate tariffs 
with standard provisions improve the efficiency of the Commission in 
its analysis and determination of whether a seller satisfies the 
requirements for market-based rate authority. These standardized 
market-based rate tariffs help to reduce document preparation time by 
applicants and sellers, and provide utilities with the clearly defined 
requirements of the Commission.
    ACTION: The Commission is requesting a three-year extension of the 
FERC-919 reporting requirements, with no changes.
    Burden Statement: The estimated annual burden follows.

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                                                                     Number of
                                                                    respondents      Hours per     Total annual
                FERC-919 (Orders 697-A, B, C, D)                      filing         response          hours
                                                                     annually
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Market power analysis in new applications for market-based rates             155             250          38,750
 (required in 18 CFR 35.37(a))..................................

[[Page 41842]]

Triennial market power analysis in category 2 seller updates                  74              40           2,960
 (required in 18 CFR 35.37(a))..................................
Quarterly land acquisition reports (required in 18 CFR 35.42(d))              40               4             160
Appendix B addition to change in status reports 18 CFR 35.42(a).             400               1             400
                                                                 -----------------------------------------------
    Totals......................................................  ..............  ..............          42,270
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    The total estimated annual cost burden to respondents is $2,801,891 
(42,270 hours/2080 hours \5\ per year, times $137,874 \6\).
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    \5\ Estimated number of hours an employee works each year.
    \6\ Estimated average annual cost per employee.
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    The reporting burden includes the total time, effort, or financial 
resources expended to generate, maintain, retain, disclose, or provide 
the information including: (1) Reviewing instructions; (2) developing, 
acquiring, installing, and utilizing technology and systems for the 
purposes of collecting, validating, verifying, processing, maintaining, 
disclosing and providing information; (3) adjusting the existing ways 
to comply with any previously applicable instructions and requirements; 
(4) training personnel to respond to a collection of information; (5) 
searching data sources; (6) completing and reviewing the collection of 
information; and (7) transmitting, or otherwise disclosing the 
information.
    The estimate of cost for respondents is based upon salaries for 
professional and clerical support, as well as direct and indirect 
overhead costs. Direct costs include all costs directly attributable to 
providing this information, such as administrative costs and the cost 
for information technology. Indirect or overhead costs are costs 
incurred by an organization in support of its mission. These costs 
apply to activities which benefit the whole organization rather than 
any one particular function or activity.
    Comments are invited on: (1) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Commission, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility and clarity of the information to be collected; and (4) ways to 
minimize the burden of the collection of information on those who are 
to respond, including the use of appropriate automated, electronic, 
mechanical, or other technological collection techniques or other forms 
of information technology, e.g. permitting electronic submission of 
responses.

Kimberly D. Bose,
Secretary.
[FR Doc. 2010-17556 Filed 7-16-10; 8:45 am]
BILLING CODE 6717-01-P