Opinion ID: 185384
Heading Depth: 2
Heading Rank: 3

Heading: The Commission's Interpretation of its Regulation

Text: 26 The Commission interpreted 18 C.F.R. § 35.15(a) as not applying to the canceled transactions because the agreements were not required to be on file, which is the predicate for the 60-day notice-of-termination requirement. See 84 F.E.R.C. p 61,199, at 61,986-87; 86 F.E.R.C. p 61,131, at 61,457. On rehearing, PCA pointed out that the Commission had previously applied the notice-of-termination rule to transactions like the ones at issue. See Portland Gen. Elec. Co., 75 F.E.R.C. p 61,310, at 62,002 (1996) (refusing to waive 60-day notice requirement in section 35.15 for terminating individual transactions); Portland Gen. Elec. Co., 77 F.E.R.C. p 61,171, at 61,639 (1996) (we believe that the ability to unilaterally terminate a power sales contract without prior notice should be limited: (1) to contracts executed on and after July 9, 1996; and (2) to termination at the end of the contract). In its Order on Rehearing, the Commission conceded that it applied Section 35.15 to short-term power sale transactions in Portland General but proceeded to reverse any contrary language in Portland General indicating that Section 35.15 might apply to short-term discretionary power sales that are not themselves on file. 86 F.E.R.C. p 61,131, at 61,457. 27 PCA claims that the regulation cannot sustain this reinterpretation. In PCA's view, the overruling of Portland General wrote the part thereof language out of § 35.15(a) without notice-and-comment rulemaking. In actuality, the Commission simply altered its view of what is required to be on file, holding that the discretionary power transactions at issue were not in that class. 18 C.F.R. § 35.15(a); 86 F.E.R.C. p 61,131, at 61,457. In doing so, the Commission merely narrowed the category of rate schedule[s] or part[s] thereof that are required to be on file (18 C.F.R. § 35.15(a)); it left the part thereof language undisturbed. The regulation does not forbid such narrowing.