Document ID: FERC-2006-2119-0001
Agency: ferc
Document Type: Rule
Title: Electronic Filing of FERC Form No. 60
Posted Date: 2006-11-07T05:00Z

[Federal Register: November 7, 2006 (Volume 71, Number 215)]
[Rules and Regulations]               
[Page 65049-65052]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07no06-6]                         

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Parts 366 and 385

[Docket No. RM06-25-000; Order No. 685]

 
Electronic Filing of FERC Form No. 60

Issued October 19, 2006.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Final rule.

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SUMMARY: In this Final Rule, the Federal Energy Regulatory Commission 
(Commission) is amending its regulations to further implement the 
Public Utility Holding Company Act of 2005 (PUHCA 2005). Specifically, 
the Commission is providing for electronic filing of the currently-
effective FERC Form No. 60, Annual Report of Centralized Service 
Companies, for the 2006 and 2007 reporting years, to be filed by May 1, 
2007 and May 1, 2008, respectively. No changes are being made to the 
currently-effective FERC Form No. 60 itself. The Commission has 
concluded that the automation of the FERC Form No. 60 filing will yield 
significant benefits, including reduced cost of data entry and 
retrieval, overall reduction of reporting burden, more timely analysis 
and publication of data, and increased data analysis capability.

DATES: Effective Date: The Final Rule will become effective January 8, 
2007.

FOR FURTHER INFORMATION CONTACT: Julia A. Lake (Legal Information), 
Office of the General Counsel--Energy Markets, Federal Energy 
Regulatory Commission, 888 First Street, NE., Washington, DC 20426, 
telephone: (202) 502-8370, e-mail: julia.lake@ferc.gov.
    Michelle Veloso (Technical Information), Division of Financial 
Regulation, Office of Enforcement, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington, DC 20426, telephone: 
(202) 502-8363, e-mail: michelle.veloso@ferc.gov.

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 to further implement the Public Utility 
Holding Company Act of 2005 (PUHCA 2005). Specifically, the Commission 
is providing for electronic filing of the currently-effective FERC Form 
No. 60, Annual Report of Centralized Service Companies, adopted in 
Order No. 667,\1\ for the 2006 and 2007 reporting years, to be filed by 
May 1, 2007 and May 1, 2008, respectively.\2\

[[Page 65050]]

No changes are being made to data reported in the currently-effective 
FERC Form No. 60 itself.
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    \1\ Order No. 667, 70 FR 75592 (Dec. 20, 2005), FERC Stats & 
Regs., Regulations Preambles 2001-2005 ] 31,197 (2005), order on 
reh'g, Order No. 667-A, 70 FR 28446 (May 16, 2006), FERC Stats. & 
Regs. ] 31,213 (2006), order on reh'g, Order No. 667-B, 71 FR 42750 
(July 28, 2006), FERC Stats. & Regs., ] 31,224 (2006).
    \2\ We note that, contemporaneously with this Final Rule, we are 
issuing, in Docket No. RM06-11-000, a Final Rule adding a new 
Uniform System of Accounts (USofA) for Centralized Service 
Companies, adding new records retention requirements for holding 
companies and service companies, and revising FERC Form No. 60, 
Annual Report for Centralized Service Companies to provide for 
financial reporting consistent with the new USofA. The Final Rule in 
that docket provides that revised FERC Form No. 60 will be filed 
electronically beginning with the 2008 reporting year and subsequent 
reporting years. See Financial Accounting, Reporting and Records 
Retention Requirements Under the Public Utility Holding Company Act 
of 2005, Order No. 684, published elsewhere in this issue of the 
Federal Register, FERC Stats. & Regs. ] 31,229 (2006).
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Background

    2. On August 8, 2005, the Energy Policy Act of 2005 (EPAct 2005) 
\3\ was signed into law. In relevant part, it repealed the Public 
Utility Holding Company Act of 1935 (PUHCA 1935) \4\ and enacted the 
Public Utility Holding Company Act of 2005 (PUHCA 2005),\5\ which, with 
one exception not relevant here, became effective on February 8, 2006 
(six months from the date of enactment). The intent of Congress in 
EPAct 2005 was to repeal the Securities and Exchange Commission's (SEC) 
regulatory regime established by PUHCA 1935 and to rely on this 
Commission and state regulatory authorities to protect energy 
customers, by supplementing the Commission's books and records 
authority under the Federal Power Act (FPA) and the Natural Gas Act 
(NGA) (and by enhancing the Commission's already significant authority 
over public utility mergers, acquisitions and dispositions of 
jurisdictional facilities \6\).
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    \3\ Energy Policy Act of 2005, Pub. L. 109-58, 119 Stat. 594 
(2005).
    \4\ 15 U.S.C. 79a et seq.
    \5\ EPAct 2005 at 1261 et seq.
    \6\ Id. at 1289.
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    3. On December 8, 2005, the Commission issued Order No. 667, adding 
a new Subchapter U and part 366 to Title 18 of the Code of Federal 
Regulations to implement PUHCA 2005.\7\ Among other things, the 
Commission required centralized service companies \8\ to file an annual 
financial report, the new FERC Form No. 60.\9\ Specifically, every 
centralized service company in a holding company system,\10\ i.e., was 
not a special-purpose company (such as, a fuel supply company or a 
construction company) that provides non-power goods or services to a 
Commission-jurisdictional public utility or natural gas company, was 
required to file with the Commission by May 1, 2006 and by May 1 each 
year thereafter, FERC Form No. 60, for the prior calendar year.\11\
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    \7\ See supra note 1.
    \8\ ``Service companies'' are defined in 18 CFR 366.1 as ``any 
associate company within a holding company system organized 
specifically for the purpose of providing non-power goods or 
services or the sale of goods or construction work to any public 
utility in the same holding company system.'' ``Centralized service 
companies'' are defined in 18 CFR 367.1(a)(7) as a service company 
that provides services such as administrative, managerial, 
financial, accounting, recordkeeping, legal or engineering services, 
which are sold, furnished, or otherwise provided (typically for a 
charge) to other companies in the same holding company system. 
Centralized service companies are different from other service 
companies that only provide a discrete good or service.
    \9\ See Order No. 667, FERC Stats. & Regs. ] 31,197 at P 82-88 
(codified at 18 CFR 366.23).
    \10\ As defined in 18 CFR 366.1, holding company means (i) any 
company that directly or indirectly owns, controls, or holds, with 
power to vote, 10 percent or more of the outstanding voting 
securities of a public-utility company or of a holding company of 
any public-utility company; and (ii) any person, determined by the 
Commission, after notice and opportunity for hearing, to exercise 
directly or indirectly (either alone or pursuant to an arrangement 
or understanding with one or more persons) such a controlling 
influence over the management or policies of any public-utility 
company or holding company as to make it necessary or appropriate 
for the rate protection of utility customers with respect to rates 
that such person be subject to the obligations, duties and 
liabilities imposed by this subtitle upon holding companies.
    \11\ See 18 CFR 366.23(a).
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    4. Centralized service companies began filing FERC Form No. 60 
beginning with the 2005 reporting year, due by May 1, 2006.\12\ They 
filed FERC Form No. 60 in a paper format because, at the time Order No. 
667 was issued, the Commission had not developed the form submission 
software to permit electronic filing.
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    \12\ The Commission provided centralized service companies in 
holding company systems exempted by the SEC from the reporting 
requirements of PUHCA 1935 a transition period for reporting years 
2005 and 2006 during which time they need not file FERC Form No. 60. 
See 18 CFR 366.23(b).
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Discussion

    5. The Commission's regulations provide for electronic filing of 
annual reports submitted by entities subject to Commission 
jurisdiction, including: FERC Form No. 1, Annual Report of Major 
Electric Utilities, Licensees and Others; FERC Form No. 2, Annual 
Report for Major Natural Gas Companies; FERC Form No. 2-A, Annual 
Report for Nonmajor Natural Gas Companies; and FERC Form No. 6, Annual 
Report of Oil Pipeline Companies.\13\ The electronic filing of these 
annual reports yields significant benefits, including reduced cost of 
data entry and retrieval, overall reduction of reporting burden, more 
timely analysis and publication of data, and increased data analysis 
capability.\14\ And, in general, filers and users alike agree that 
electronic filing of these annual reports yields significant benefits 
in terms of process simplification and savings of time and expense.\15\
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    \13\ See 18 CFR 385.2011.
    \14\ See, e.g., Electronic Filing of FERC Form No. 1, Order No. 
574, 60 FR 1716 (Jan. 5, 1995), FERC Stats. & Regs. ] 31,013 at 
31,257 (1995).
    \15\ Id. at 31,256-57.
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    6. Electronic filing of the currently-effective FERC Form. No. 60 
should result in similar benefits.\16\ The Commission, therefore, will 
require centralized service companies to file the currently-effective 
FERC Form No. 60 in an electronic medium for the 2006 and 2007 
reporting years, to be filed by May 1, 2007 and May 1, 2008, 
respectively.
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    \16\ We note that, contemporaneously with this Final Rule, we 
are issuing a Final Rule in Docket No. RM06-11-000 that provides for 
electronic filing of a revised FERC Form No. 60 beginning with the 
2008 reporting year. Commenters in that rulemaking docket did not 
oppose the Commission's proposal to require electronic filing of the 
revised form. See supra note 2.
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    7. No changes are being made to the information reported in the 
currently-effective FERC Form No. 60. However, the Commission will need 
to make minor formatting changes to the currently-effective FERC Form 
No. 60 to facilitate the development of form submission software. These 
minor changes will include the placement of instructions for each 
schedule at the top of each page, updating certain schedules so that 
the data and information is reported in a structured format on the 
schedule, renumbering of certain pages, and updating the General 
Instructions to the form to clarify that the respondents will no longer 
file two paper copies of the FERC Form No. 60, but rather the 
respondents will be required to use the form submission software to 
file the form.
    8. In a separate notice, instructions will be provided concerning 
how a centralized service company may register as a respondent and 
download the form submission software for use in filing the FERC Form 
No. 60.

Information Collection Statement

    9. Office of Management and Budget (OMB) regulations require OMB to 
approve certain information collection requirements imposed by an 
agency.\17\ The Final Rule will not change the reporting requirements 
in the currently-effective FERC Form No. 60. This rule, therefore, is 
not subject to OMB review. The Commission is submitting a copy of the 
Final Rule to OMB for information purposes only. Interested persons may 
obtain information on these reporting requirements by contacting the 
Federal Energy Regulatory Commission, 888 First Street, NE., 
Washington, DC 20426 [Attn: Michael Miller, Information Services 
Division, (202) 502-8415]. Comments on the requirements of this rule 
can be sent to the Office of Information and Regulatory Affairs of OMB 
[Attn: Desk Officer for the Federal Energy Regulatory Commission; 
phone,

[[Page 65051]]

(202) 395-4650, fax: (202) 395-7285, e-mail: 
oira_submission@omb.eop.gov].

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    \17\ 5 CFR 1320.11.
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Environmental Analysis

    10. 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.\18\ The Commission has categorically excluded certain 
actions from this requirement as not having a significant effect on the 
human environment.\19\ No environmental consideration is necessary for 
the promulgation of a rule that is clarifying, corrective or 
procedural.\20\ Because the electronic filing requirement for the 
currently-effective FERC Form No. 60 adopted in this Final Rule is 
merely procedural, no environmental statement is necessary.
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    \18\ Regulations Implementing the National Environmental Policy 
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. 
] 30,783 (1987) (codified at 18 CFR part 380).
    \19\ 18 CFR 380.4.
    \20\ 18 CFR 380.4(a)(2)(ii).
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Regulatory Flexibility Act Certification

    11. The Regulatory Flexibility Act of 1980 (RFA) \21\ 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 centralized 
service companies and holding companies to which this Final Rule 
applies would not fall within the RFA's definition of small entity.\22\ 
Consequently, the Commission certifies that this Final Rule will not 
have a ``significant economic impact on a substantial number of small 
entities.''
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    \21\ 5 U.S.C. 601-612.
    \22\ 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. NAICS defines a small 
natural gas pipeline company as one that transports natural gas and 
whose annual receipts (total income plus cost of goods sold) did not 
exceed $6.5 million dollars for the preceding year. 13 CFR 121.201.
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Document Availability

    12. 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.
    13. From the Commission's Home Page on the Internet, this 
information is available in the Commission's document management 
system, 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.
    14. User assistance is available for eLibrary and the Commission's 
Web site during normal business hours. For assistance, please contact 
FERC Online Support at 1-866-208-3676 (toll free) or 202-502-6652 (e-
mail at FERCOn-lineSupport@ferc.gov) or the Public Reference Room at 
202-502-8371, TTY 202-502-8659 (e-mail at public.referenceroom@ferc.gov 
).

Administrative Findings and Effective Date

    15. The Administrative Procedure Act (APA) \23\ requires 
rulemakings to be published in the Federal Register. The APA also 
mandates that an opportunity for comments be provided when an agency 
promulgates regulations. However, notice and comment are not required 
under the APA when the agency for good cause finds that notice and 
public procedure thereon are impracticable, unnecessary or contrary to 
the public interest.\24\
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    \23\ 5 U.S.C. 551-59.
    \24\ 5 U.S.C. 553(B); see, e.g., Mid-Tex Electric Cooperative, 
Inc. v. FERC, 822 F.2d 1123 (D.C. Cir. 1987).
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    16. The Commission finds that notice and comment are unnecessary 
for this rulemaking. As explained above, this Final Rule is merely 
procedural in nature. The Commission is not revising the data the 
centralized service companies file in the currently-effective FERC Form 
No. 60. The Commission is merely requiring electronic filing of the 
currently-effective FERC Form No. 60. The Commission, therefore, finds 
good cause to make this Final Rule effective January 8, 2007.

Congressional Notification

    17. The provisions of the Small Business Regulatory Enforcement 
Fairness Act of 1996 \25\ regarding Congressional review of Final Rules 
does not apply to this Final Rule, because the rule concerns agency 
procedure and practice and will not substantially affect the 
substantive rights of non-agency parties.\26\
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    \25\ 5 U.S.C. 801.
    \26\ 5 U.S.C. 804(3)(B).
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List of Subjects

18 CFR Part 366

    Electric power, Natural gas, Reporting and recordkeeping 
requirements.

18 CFR Part 385

    Administrative practice and procedure, Electric power, Penalties, 
Pipelines, Reporting and recordkeeping requirements.

    By the Commission.
Magalie R. Salas,
Secretary.

0
In consideration of the foregoing, the Commission amends parts 366 and 
385, Chapter I, Title 18, Code of Federal Regulations, as follows:

PART 366--PUBLIC UTILITY HOLDING COMPANY ACT OF 2005

0
1. The authority citation for part 366 is revised to read as follows:

    Authority: 42 U.S.C. 16451-16463.

0
2. In Sec.  366.23, the section heading and paragraph (a)(1) are 
revised to read as follows:

Sec.  366.23  FERC Form No. 60, Annual reports of centralized service 
companies, and FERC-61, Narrative description of service company 
functions.

    (a) General. (1) FERC Form No. 60. Unless otherwise exempted or 
granted a waiver by Commission rule or order pursuant to Sec. Sec.  
366.3 and 366.4, every centralized service company (see Sec.  367.2 of 
this chapter) in a holding company system must file an annual report, 
FERC Form No. 60, as provided in Sec.  369.1 of this chapter. Every 
report must be submitted on the FERC Form No. 60 then in effect and 
must be prepared in accordance with the instructions incorporated in 
that form.
* * * * *

PART 385--RULES OF PRACTICE AND PROCEDURE

0
3. The authority citation for part 385 is revised to read as follows:

    Authority: 5 U.S.C. 551-557; 15 U.S.C. 717-717z, 3301-3432; 16 
U.S.C. 791a-825v, 2601-2645; 28 U.S.C. 2461; 31 U.S.C. 3701, 9701; 
42 U.S.C. 7101-7352, 16441, 16451-16463; 49 U.S.C. 60502; 49 App. 
U.S.C. 1-85 (1988).

0
4. In Sec.  385.2011, paragraph (a)(9) is added and paragraph (c)(3) is 
revised to read as follows:

[[Page 65052]]

Sec.  385.2011  Procedures for filing on electronic media (Rule 2011).

    (a) * * *
    (9) FERC Form No. 60, Annual report of centralized service 
companies.
* * * * *
    (c) What to file. * * *
    (3) With the exception of the Form Nos. 1, 2, 2-A, 6 and 60, the 
electronic media must be accompanied by the traditional prescribed 
number of paper copies.
* * * * *
[FR Doc. E6-18061 Filed 11-6-06; 8:45 am]

BILLING CODE 6717-01-P