Standards for Business Practices and Communication Protocols for Public Utilities, 28222-28230 [05-9797]
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Federal Register / Vol. 70, No. 94 / Tuesday, May 17, 2005 / Proposed Rules
certain interest group members would
not be able to attend the previously
scheduled May 24, 2005 conference 1
and requested that the conference be
rescheduled. All major trade
associations for the gas, electric, and oil
industries have been contacted and are
comfortable with the June 1 date. The
technical conference will be held from
9 a.m. until 4 p.m. (EST) at the Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC 20426
in Hearing Room 1.
The Capitol Connection offers the
opportunity for remote listening and
viewing of the conference. It is available
for a fee, live over the Internet, via CBand Satellite. Persons interested in
receiving the broadcast, or who need
information on making arrangements
should contact David Reininger or Julie
Morelli at the Capitol Connection ((703)
993–3100) as soon as possible or visit
the Capitol Connection Web site at
https://www.capitolconnection.gmu.edu
and click on ‘‘FERC’’.
The conference is open to the public
to attend, and pre-registration is not
required.
FERC conferences are accessible
under section 508 of the Rehabilitation
Act of 1973. For accessibility
accommodations please send an e-mail
to accessibility@ferc.gov or call toll free
1–866–208–3372 (voice) or (202) 208–
1659 (TTY), or send a fax to (202) 208–
2106 with the required
accommodations.
For more information about this
conference, please contact Keith Pierce,
Office of Markets, Tariffs and Rates at
(202) 502–8525 or Keith.Pierce@ferc.gov.
Linda Mitry
Deputy Secretary
[FR Doc. 05–9802 Filed 5–16–05; 8:45 am]
BILLING CODE 6717–01–M
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Parts 35, 37, and 38
[Docket No. RM05–5–000]
Standards for Business Practices and
Communication Protocols for Public
Utilities
May 9, 2005.
Federal Energy Regulatory
Commission, DOE.
ACTION: Notice of proposed rulemaking.
AGENCY:
SUMMARY: The Federal Energy
Regulatory Commission is proposing to
1 See
70 FR 23945 (May 6, 2005).
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amend its regulations to incorporate by
reference standards promulgated by the
North American Energy Standards
Board’s (NAESB’s) Wholesale Electric
Quadrant (WEQ) dealing with: Open
Access Same-Time Information Systems
(OASIS) business practice standards,
including posting requirements for
Order No. 2003 generator
interconnection agreements and
procedures; OASIS Standards and
Communication Protocols and Data
Dictionary; and business practice
standards for Coordinate Interchange,
Area Control Error (ACE) Equation
Special Cases, Manual Time Error
Correction, and Inadvertent Interchange
Payback.
Incorporating these standards by
reference into the Commission’s
regulations is intended to benefit
wholesale electric customers by
streamlining utility business practices
and transactional processes and OASIS
procedures and by adopting a formal
ongoing process for reviewing and
upgrading the Commission’s OASIS
standards and other electric industry
business practices that would benefit
from the implementation of generic
industry standards. In addition, the
proposal to adopt business practice
standards for Coordinate Interchange,
ACE Equation Special Cases, Manual
Time Error Correction, and Inadvertent
Interchange Payback are intended to
complement the Version 0 Reliability
Standards of the North American
Electric Reliability Council.
DATES: Comments on the proposed rule
are due July 1, 2005.
ADDRESSES: Comments may be filed
electronically via the eFiling link on the
Commission’s Web site at https://
www.ferc.gov. Commenters unable to
file comments electronically must send
an original and 14 copies of their
comments to: Federal Energy Regulatory
Commission, Office of the Secretary,
888 First Street, NE., Washington, DC,
20426. Refer to the Comment
Procedures section of the preamble for
additional information on how to file
comments.
FOR FURTHER INFORMATION CONTACT:
Marvin Rosenberg (technical issues),
Office of Markets, Tariffs and Rates,
Federal Energy Regulatory
Commission, 888 First Street, NE,
Washington, DC 20426, (202) 502–
8292.
Kay Morice (technical issues), Office of
Markets, Tariffs and Rates, Federal
Energy Regulatory Commission, 888
First Street, NE, Washington, DC
20426, (202) 502–6507.
Gary D. Cohen (legal issues), Office of
the General Counsel, Federal Energy
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Regulatory Commission, 888 First
Street, NE, Washington, DC 20426,
(202) 502–8321.
SUPPLEMENTARY INFORMATION:
1. The Federal Energy Regulatory
Commission (Commission) proposes to
amend its regulations under the Federal
Power Act to incorporate by reference
certain standards promulgated by the
North American Energy Standards
Board’s (NAESB’s) Wholesale Electric
Quadrant (WEQ) that implement, with
modifications, the Commission’s
existing Open Access Same-Time
Information Systems (OASIS) Business
Practice Standards and OASIS
Standards and Communication
Protocols and Data Dictionary
requirements. In addition, the
Commission proposes to incorporate by
reference NAESB’s business practice
standards on Coordinate Interchange,
Area Control Error (ACE) Equation
Special Cases, Manual Time Error
Correction, and Inadvertent Interchange
Payback that complement the Version 0
Reliability Standards of the North
American Electric Reliability Council
(NERC).
2. Incorporating these standards by
reference into the Commission’s
regulations is intended to benefit
wholesale electric customers by
streamlining utility business practices
and transactional processes and OASIS
procedures and by adopting a formal
ongoing process for reviewing and
upgrading the Commission’s OASIS
standards as well as other electric
industry business practices that would
benefit from the implementation of
generic industry standards.
I. Background
3. When the Commission developed
its OASIS regulations, OASIS Standards
and Communication Protocols, Data
Dictionary, and Business Practice
Standards, it relied heavily on the
assistance provided by all segments of
the wholesale electric power industry
and its customers in the ad hoc working
groups that came together and offered
consensus proposals for the
Commission’s consideration. While this
process was very successful, it became
apparent to the Commission that
ongoing issues remained that would be
better addressed by an ongoing industry
group dedicated to drafting consensus
industry standards to implement the
Commission’s OASIS-related policies
and policies on other industry business
practices that would benefit from the
implementation of generic industry
standards rather than by continued
reliance on an ad hoc approach.
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Federal Register / Vol. 70, No. 94 / Tuesday, May 17, 2005 / Proposed Rules
4. On December 19, 2001, the
Commission issued an order 1 asking the
wholesale electric power industry to
develop business practice standards and
communication protocols by
establishing a single consensus,
industry-wide standards organization
for the wholesale electric industry, to
complement the market design
principles the Commission was
developing.
5. Subsequently, in 2002, the Gas
Industry Standards Board (GISB)
stepped forward and volunteered to
play this role by modifying its
organization to broaden the scope of its
activities to address electric power
standards. The result of this
reorganization has been the emergence
of NAESB’s WEQ, a non-profit,
industry-driven organization working to
reach consensus on standards to
streamline the business practices and
transactional processes within the
wholesale electric industry and
proposing and adopting voluntary
communication standards and model
business practices.
6. As we have previously stated, we
consider ‘‘coordination between
business practice standards and
reliability standards to be critical to the
efficient operation of the market.’’ 2
Thus, we urged the industry to
‘‘expeditiously establish the procedures
for ensuring such coordination after the
NAESB WEQ [was] formalized, and
request[ed] NAESB and others to file an
update on the progress on coordination
between it and NERC, 90 days after the
formation of the WEQ.’’ 3
7. In response to the Commission’s
request, NAESB and NERC filed a joint
letter, on December 16, 2002, explaining
that both organizations had signed a
memorandum of understanding (MOU)
‘‘designed to ensure that the
development of wholesale electric
business practices and reliability
standards are harmonized and that
every practicable effort is made to
eliminate overlap and duplication of
efforts between the two organizations.’’
The MOU describes, among other
coordination procedures, the
establishment of a Joint Interface
Committee that will review all
standards development proposals
received by either organization and
determine which organization should be
assigned to draft the relevant standards.
8. On January 18, 2005, NAESB filed
a report with the Commission detailing
1 See Electricity Market Design and Structure, 97
FERC ¶ 61,289 (2001) (December 2001 Order), 99
FERC ¶ 61,171 (May 2002 Order), reh’g denied, 101
FERC ¶ 61,297 (2002) (December 2002 Order).
2 May 2002 Order, 99 FERC ¶ 61,171at P 22.
3 Id. at P 22.
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the WEQ’s activities over the past two
years since the group’s inception. This
filing represents NAESB’s first filing
with the Commission reporting on
wholesale electric business practices.
NAESB reports that the WEQ has
adopted business practices standards
and communication protocols for the
wholesale electric industry. These
standards (Version 000 Standards)
include the following OASIS-related
business practice standards and
communication protocols: (1) OASIS
Business Practice Standards; (2) OASIS
Standards and Communication
Protocols; and (3) an OASIS Data
Dictionary.
9. NAESB also reports that, to
complement NERC’s Version 0
Reliability Standards, the WEQ has
adopted business practice standards for:
(1) Coordinate Interchange; (2) ACE
Equation Special Cases; (3) Manual
Time Error Correction; and (4)
Inadvertent Interchange Payback.
Further, NAESB states that the WEQ has
adopted business practice standards for
Standards of Conduct to implement the
Commission’s requirements in Order
Nos. 2004, 2004–A, and 2004–B.4
10. According to NAESB, the WEQ
has adopted the Commission’s OASIS
Business Practice Standards, OASIS
Standards and Communication
Protocols, and OASIS Data Dictionary to
reflect the business practice standards
and communication protocol standards
adopted by the Commission in Order
Nos. 605, 638, and 889.5 NAESB states
that the WEQ then adopted
modifications to these standards to: (1)
Facilitate the redirection of transmission
service;6 (2) address multiple
4 Standards of Conduct for Transmission
Providers, Order No. 2004, FERC Stats. & Regs.,
Regulations Preambles ¶ 31,155 (2003) (Order No.
2004), order on reh’g, Order No. 2004–A, FERC
Stats. & Regs., Regulations Preambles ¶ 31,161
(2004), order on reh’g and clarification, Order No.
2004–B, FERC Stats. & Regs., Regulations Preambles
¶ 31,166 (2004), order on reh’g and clarification,
Order No. 2004–C, FERC Stats. & Regs., Regulations
Preambles ¶ 31,172 (2005), , order on reh’g and
clarification, Order No. 2004–D, 110 FERC ¶ 61,320
(2005), appeal pending sub nom. American Gas
Association v. FERC, No. 04–1178, et al. (DC Cir.
filed June 9, 2004 and later). NAESB reports that it
is currently engaged in priority efforts to make any
necessary modifications to the Standards of
Conduct business practice standards to ensure they
adequately address the requirements of Order No.
2004–C.
5 Open Access Same-Time Information Systems,
Order No. 605, FERC Stats. & Regs., Regulations
Preambles 1996–2000 ¶ 31,075 (1999); Open Access
Same-Time Information Systems, Order No. 638,
FERC Stats. & Regs., Regulations Preambles 1996–
2000 ¶ 31,093 (2000); Open Access Same-Time
Information Systems, Order No. 889, FERC Stats. &
Regs., Regulations Preambles 1991–1996 ¶ 31,35
(1996), Order No. 889–A, FERC Stats. & Regs.,
Regulations Preambles 1996–2000 ¶ 31,049 (1997).
6 NAESB Comments at 21.
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submissions of identical transmission
requests/queuing issues;7 (3) address
OASIS posting requirements under
Order No. 2003 (the Large Generator
Interconnection rule);8 and (4) provide
non-substantive editing to improve the
formatting, organization, and clarity of
the text.9
11. NAESB also reports that the
development of the WEQ business
practices standards on Coordinate
Interchange, ACE Equation Special
Cases, Manual Time Error Correction,
and Inadvertent Interchange Payback
was part of a joint effort with NERC
where the existing NERC operating
policies were divided into reliability
standards for development by NERC and
business practices standards for
development by NAESB. The
Commission endorsed this cooperative
division of labor between NERC and
NAESB in the May 2002 Order.10
II. Discussion
A. Standards Development and
Incorporation by Reference
12. As we have previously stated, we
are pleased that the industry has
reached a broad consensus that the
WEQ will be the single organization to
develop business practice and electronic
communication standards on behalf of
the entire wholesale electric power
industry.11 Coordinating these efforts
within a single organization will make
the process of developing standards
more efficient, which benefits the entire
industry. NAESB is an accredited
American National Standards Institute
Standards Development Organization,
and, thus, the standards development
process will ensure due process and
assure that all industry members may
participate in drafting the standards.
The Commission’s confidence in the
ability of the WEQ to fill this role
successfully is justified by the positive
contributions NAESB and its
predecessor, GISB, have already made
7 Id.
at 20.
Standardization of Generator
Interconnection Agreements and Procedures, Order
No. 2003, FERC Stats. & Regs., Regulations
Preambles ¶ 31,146 (2003), order on reh’g, Order
No. 2003–A, FERC Stats. & Regs., Regulations
Preambles ¶ 31,160 (2004), order on reh’g, Order
No. 2003–B, FERC Stats & Regs., Regulations
Preambles ¶ 31,171 (2004), reh’g pending.
9 One of these edits was to delete Standard 1.4 of
the WEQ’s OASIS Business Practice Standards
governing compliance with the OASIS Standards of
Conduct (which is now governed by the
Commission’s regulations at 18 CFR part 358,
which superceded the Commission’s former
regulation at 18 CFR 37.4) because the provision to
which it related has now been superseded.
10 99 FERC ¶ 61,171 at P 22.
11 Id. at P 3.
8 See
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Federal Register / Vol. 70, No. 94 / Tuesday, May 17, 2005 / Proposed Rules
in developing consensus standards
applicable to the natural gas industry
13. The WEQ’s standards were
developed under a voluntary consensus
process. Under this process, to be
approved a standard must receive a
super-majority vote of 67 percent of the
members of the WEQ’s Executive
Committee with support from at least 40
percent from each of the five industry
segments—transmission, generation,
marketer/brokers, distribution/load
serving entities, and end users. For final
approval, 67 percent of the WEQ’s
general membership must ratify the
standards.
14. As we found with respect to the
natural gas industry, adoption of
consensus standards is appropriate
because the consensus process assists
the Commission in determining the
reasonableness of the standards by
requiring that the standards draw
support from a broad spectrum of all
segments of the industry. Since the
industry itself has to conduct business
under these standards, the
Commission’s regulations should reflect
those standards that have the widest
possible support.
15. In section 12(d) of the National
Technology Transfer and Advancement
Act of 1995, Congress affirmatively
requires federal agencies to use
technical standards developed by
voluntary consensus standards
organizations, like NAESB’s WEQ, as
means to carry out policy objectives or
activities.12 As the Commission has
pointed out on several occasions,13
incorporation by reference is the
appropriate, and indeed the required,
method for adopting copyrighted
standards material.14 As required, the
WEQ standards are reasonably available
from NAESB. Members can access these
materials at no additional charge from
the NAESB Web site or can pay $50 for
the booklet or CD rom. Because
12 Pub L. No. 104–113, section 12(d), 110 Stat. 775
(1996), 15 U.S.C. 272 note (1997).
13 See, e.g., Standards for Business Practices of
Interstate Natural Gas Pipelines, Order No. 587–R,
FERC Stats. & Regs., Regulation Preambles ¶ 31,141
at P 29–37 (2003).
14 Order No. 587–A , 61 FR 55208, 77 FERC
¶ 61,061, at p. 61,232 (1996); Order No. 587–K ,
FERC Stats. & Regs., Regulations Preambles 1996–
2000 ¶ 31,072 at 30,775 (1999). See 5 U.S.C. 552
(a)(1) (2000); 1 CFR 51.7(4) (requirements
established for incorporation by reference); Federal
Participation in the Development and Use of
Voluntary Standards, OMB Circular A–119, at 6
(a)(1) (Feb. 10, 1998), https://www.whitehouse.gov/
omb/circulars/a119/a119.html (incorporation by
reference appropriate means of adopting private
sector standards under the National Technology
Transfer and Advancement Act). Indeed, the
Commission could not reproduce the WEQ
standards in violation of the NAESB copyright. See
28 U.S.C. 1498 (government not exempt from patent
and copyright infringement).
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standards development is of importance
to the entire industry, the Commission
strongly encourages all companies to
become members and to participate
actively in the NAESB process.
However, non-members can obtain the
standards booklet or CD rom for $100.
In addition, as required by the
regulations, copies of the standards are
also available for inspection in the
Commission’s Public Reference Room.15
16. Consistent with our practice for
the natural gas industry, the
Commission is proposing to incorporate
by reference (in part 38 of our
regulations under the Federal Power
Act, 18 CFR part 38) most of the
standards developed by the WEQ. Once
the Commission incorporates the WEQ’s
standards into its regulations, all public
utilities subject to the Commission’s
authority will be required to comply
with the incorporated standards, as
would non-jurisdictional entities
voluntarily following Commission’s
open access requirements under
reciprocity. As NAESB revises these
standards in the future, the Commission
will review NAESB’s revisions and
consider incorporating such changes
through a notice and comment
rulemaking.16
17. The Commission is also
proposing, similar to what we have
done with respect to the gas standards,
to require each electric utility to revise
its open access transmission tariff
(OATT) to include the applicable WEQ
standards.17 For standards that do not
require implementing tariff provisions,
the Commission is proposing to permit
the utility to incorporate the WEQ
standard by reference in its OATT.18
U.S.C. 552 (a)(1); 1 CFR 51.
are required to abide by only the
version of the standards adopted by the
Commission. Compliance with subsequent
revisions will not be required unless the
Commission has through a notice and comment
rulemaking proceeding incorporated by reference
any such revisions.
17 Thus, when the Commission incorporates by
reference updated standards, each utility will be
required to make a filing updating its tariff
accordingly.
18 When making such a tariff filing, the following
nomenclature should be used:
• OASIS Business Practice Standards (WEQBPS–
001–000, January 15, 2005) including the
Definitions of ‘‘Capacity Available to Redirect’’,
‘‘Commission’’, ‘‘Denial of Service’’, ‘‘Identical
Service Requests’’, ‘‘Parent Reservation’’, ‘‘Queue
Flooding’’, and ‘‘Queue Hoarding’’, Standards 2
through 10 with subsections except Standard 9.7,
Appendix—Standard 8 Examples, and Appendix B;
• OASIS Standards and Communication
Protocols (WEQSCP–001–000, January 15, 2005)
including Standards 1 through 5 with subsections;
• OASIS Data Dictionary (WEQDD–001–000,
January 15, 2005);
• Coordinate Interchange Standards (WEQBPS–
002–000, January 15, 2005) including Purpose,
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15 5
16 Entities
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Thus, we are proposing to revise our
regulation at 18 CFR 35.28(c) to include
this requirement.
18. Specifically, the Commission
proposes to incorporate by reference the
standards adopted by NAESB’s WEQ
that include: (1) OASIS Business
Practice Standards; (2) OASIS Standards
and Communication Protocols; and (3)
an OASIS Data Dictionary, with the
exception of standards that duplicate
the Commission’s regulations, all as
modified to address: (1) Redirect of
transmission service; 19 (2) multiple
submissions of identical transmission
requests/queuing issues; (3) OASIS
posting requirements under Order No.
2003 (the Large Generator
Interconnection rule); and (4)
maintenance of the OASIS standards.
Thus, we are proposing to revise our
regulations to add 18 CFR part 38,
where we would specifically enumerate
each set of standards adopted by the
WEQ that we are incorporating by
reference.
19. Further, the Commission proposes
to incorporate by reference the WEQ
business practice standards to
complement NERC’s Version 0
Reliability Standards including: (1)
Coordinate Interchange; (2) ACE
Equation Special Cases; (3) Manual
Time Error Correction; and (4)
Inadvertent Interchange Payback. Thus,
as discussed above, we propose to
include the incorporation by reference
of these standards in a new 18 CFR part
38, where we would specifically
enumerate each set of standards adopted
by the WEQ that we are incorporating
by reference. However, the Commission
is not proposing to incorporate by
reference the NAESB Standards of
Conduct-related business practice
standards.
20. We are proposing to incorporate
by reference NAESB’s OASIS standards
because we believe that this will create:
(1) A body of business practices
standards and communication protocol
standards that the industry can use as a
foundation for addressing emerging
Applicability, Definitions, Standards 1 through 13
with subsections, and Appendices A through D;
• ACE Equations Special Cases Standards
(WEQBPS–003–000, January 15, 2005) including
Purpose, Applicability, Definitions, Standards 1
through 3 with subsections, and Appendix A;
• Manual Time Error Correction Standards
(WEQBPS–004–000, January 15, 2005) including
Purpose, Applicability, Definitions, and Standards
1 through 12 with subsections; and
• Inadvertent Interchange Payback Standards
(WEQBPS–005–000, January 15, 2005) including
Purpose, Applicability, Definitions, Standard 1 with
subsections, and Appendix A.
19 As further discussed below, we are not
proposing to incorporate by reference OASIS
Business Practice Standard 9.7, as this appears to
conflict with provisions of the pro forma tariff.
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business issues; (2) business practices
and communication protocols
modifying the Commission’s standards
to accommodate new market operations;
and (3) business practices standards and
communication protocols to assist the
wholesale electric industry in
complying with the Commission’s
OASIS posting requirements under
Order No. 2003 (Standardization of
Generator Interconnection Agreements
and Procedures).
21. We also believe that incorporating
the NAESB business practice standards
identified above by reference will create
business practices that support NERC’s
Version 0 Reliability Standards and
functional model.
B. OASIS Standards
22. The WEQ’s OASIS standards are
based on the Commission’s existing
standards on this topic. First, the WEQ
adopted baseline OASIS standards to
reflect the Commission’s existing OASIS
standards. Then the WEQ modified its
baseline OASIS standards to facilitate
the redirect of transmission reservations
to alternate receipt and delivery points,
to address multiple submissions of
identical transmission requests and
queuing issues, and to address OASIS
posting requirements under Order No.
2003, based on industry requests for
enhancements to the OASIS standards.
The WEQ also performed maintenance
on the baseline OASIS standards to
improve their format, organization, and
clarity.
23. On April 19, 2005, NAESB
reported that the WEQ made
modifications to the Commission’s
OASIS Standards and Communication
Protocols (V1.4), OASIS Data Dictionary
(V1.41) and the OASIS Business
Practices Standards (V1.2), as follows:
New OASIS Business Practice Standards
• Standard 1: Provision of Open
Access Transmission Service
• Standard 8: Requirements for
dealing with multiple, identical
transmission service requests.
• Standard 9: Requirements for
dealing with Redirects on a Firm basis.
• Standard 10: Requirements for
dealing with Redirects on a Non-Firm
basis.
New OASIS Business Practice Standards
Definitions
•
•
•
•
•
•
•
Commission
Denial of Service
Identical Service Requests
Queue Flooding
Queue Hoarding
Capacity Available to Redirect
Parent Reservation
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Miscellaneous Changes to OASIS
Business Practice Standards
• The OASIS Business Practice
Standards contained numerous internal
references. Since the NAESB standards
are based on the current OASIS
Business Practices, references were
changed to reflect the correct NAESB
standard, or section of regulation, as
appropriate.20
• In several instances references to
specific regulations were replaced with
a general reference to currently
applicable regulations. These instances
included the following standards:
Applicability; 1.6(d)(1); 1.6(d)(5);
1.6(e)(1)(i).
• In Standards 1.5 (b)(2) and (3) the
information detailing how to obtain the
OASIS Business Practice Standards and
Standards and Communication
Protocols (OASIS S&CP) from the
Commission was deleted.
• In Standard 2.4 the specific
reference to ‘‘NERC [Transmission Line
Loading Relief] Procedures for NERC
CURTAILMENT PRIORITY (1–7)’’ was
replaced with a general reference to
those procedures.
• In Standard 7.2 the specific
reference to ‘‘NERC [Electronic Tagging]
Specification 1.6’’ was replaced with a
reference to the current version of the
NERC [Electronic Tagging]
Specifications.
• In Standards 7.9, 7.10, and 7.14
language referencing the IMPLEMENT
or CONDITIONAL status has been
changed to the more generic phrase
‘‘become implemented.’’
• In Standards 7.12 and 7.13 the
reference to ‘‘NERC Operating Policy 3
and associated Appendices’’ was
replaced with ‘‘NERC and/or NAESB
Standards.’’
Changes to OASIS S&CP Standard 4.5
• The phrase ‘‘[I]nformation that must
be posted on INFO.HTM, as per Section
3.4 b, includes’’ was deleted and
replaced with the following language:
When a regulatory order requires
informational postings on OASIS and
there is no OASIS S&CP template to
support the postings or it is deemed
inappropriate to use a template, there
shall be a reference in INFO.HTM to the
required information, including, but not
limited to, references to the following:
20 Changes of this nature are found in the
following standards: Applicability; Purpose;
definition of Affiliate; 1.5(a); 1.5(b); 1.5(c); 1.6
(b)(3)(i)(B); 1.6 (b)(3)(i)(C) (1); 1.6 (c)(4); 1.6 (d)(3);
1.6 (e)(1)(iv); 1.6 (g)(3); 1.6 (g)(4); 1.7(a); 2.0; Table
2–1 note 1; 2.1; 2.2; 2.3; 2.4; 2.5; 2.5.1; 2.5.3; 2.5.4;
2.5.5; 2.5.6; introductory paragraph under ‘‘Process
to Register Non-Standard Service Attribute Values’’
header; introductory paragraph under ‘‘Phase IA
Negotiation Process State Transition Diagram’’
header; 4.4; 4.5; 5.0; 6.0.
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• The phrase ‘‘[T]here shall be a
reference in INFO.HTM to’’ was deleted
from each of the bullets.
• The following new language was
added below the bullets:
For the purposes of this section, any
link to required informational postings
that can be accessed from INFO.HTM
would be considered to have met the
OASIS posting requirements, provided
that the linked information meets all
other OASIS accessibility requirements.
Miscellaneous Changes to the OASIS
Data Dictionary
• Element Name ‘‘INITIATING_
PARTY’: The phrase ‘‘Transmission
Provider (TP), Security Coordinator (SC)
or Control Area (CA)’’ replaced the
phrase ‘‘Transmission Provider,
Security Coordinator or Control Area’’
under the Restricted Values column so
that the abbreviations could be used in
Element Name
‘‘RESPONSIBLE_PARTY’’.
24. NAESB also reports that it has
made the following modifications to the
OASIS baseline standards to enhance
their format, organization, and clarity:
• Consolidation of Standards 8–21,
with exceptions for Standards 15–16, as
subsections 1.1–1.8 of Standard 1;
• Deletion of Standards 15 and 16,
but retention of the information as
introductory material for Standard 1;
• Deletion of Standard 22 as not
applicable;
• Modification of external references,
where appropriate, to be internal
references (e.g., references to ‘‘Section
37’’ changed to ‘‘Standard 1’’);
• Minor, non material reformatting;
• Modification of portions of
Standards 1.1–1.7 to reflect the
standards as contained in the current
CFR, as consistent with the intention of
Request No. R04005; and
• Deletion of Standard 1.4, Standards
of Conduct.
1. OASIS Business Practice Standards
25. With the exception of standards,
discussed below, involving standards
that duplicate the requirements in our
regulations (OASIS Business Practice
Standard 1, including Standards 1.1
through 1.8, and in the Definitions of
‘‘Affiliate,’’ ‘‘Responsible party,’’
‘‘Reseller,’’ ‘‘Transmission Provider,’’
‘‘Transmission Customer,’’ and
‘‘Wholesale merchant function’’), we
believe that the WEQ’s OASIS Business
Practice Standards are consistent with
the Commission’s existing standards on
this topic.21 Thus, our current view is
21 In addition, although we are proposing to
incorporate by reference OASIS Business Practice
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that incorporating the WEQ’s OASIS
Business Practice Standards by
reference in our regulations will further
the current requirement for
standardization of OASIS across the
industry. In addition, it will permit the
industry to use the NAESB consensus
process to suggest further modifications
and enhancements to the OASIS
Business Practice Standards as it deems
necessary, subject to the Commission’s
approval.
26. Thus, with the exceptions
referenced above and discussed below,
we are proposing to incorporate the
WEQ’s OASIS Business Practice
Standards by reference in a new 18 CFR
part 38. If commenters discover any
inconsistencies between the WEQ’s
OASIS Business Practice Standards we
propose to incorporate by reference and
the Commission’s existing OASIS
Business Practice Standards, this should
be brought to our attention in their
comments on this NOPR.
a. Standards for Redirects of
Transmission Service
27. In sections 22.1 and 22.2 of the
pro forma tariff,22 the OATT permits
redirects of transmission reservations to
alternate receipt and delivery points. As
discussed above, one of the
modifications that the WEQ made to its
baseline OASIS Business Practice
Standards was to include standards
intended to facilitate the redirect of
transmission services. However, we
have concern about Standards 9.7 and
10.6 in relation to the policies we have
adopted in the pro format OATT. As
discussed further below, based on these
inconsistencies we are not proposing to
adopt Standard 9.7, and we are inviting
comment on our understanding of
Standard 10.6.
28. The WEQ’s Standard 9.7 provides
that, unless otherwise mutually agreed
to by the primary provider and original
customer, a request for redirect on a
firm basis does not impact the
transmission customer’s long term firm
renewal rights (e.g., rollover or
evergreen rights) on the original path,
nor does it confer any renewal rights on
the redirected path. This provision
implies that the parties to any
agreement can mutually agree to
eliminate rollover rights, even though
the Commission has found that
Standard 10.6, we have problems with this
provision that we are asking commenters to address
in their comments on this NOPR.
22 See Promoting Wholesale Competition Through
Open Access Non-Discriminatory Transmission
Services by Public Utilities, Order No. 888, FERC
Stats. & Regs., Regulations Preambles 1991–1996 ¶
31,036 (1996), Order No. 888–A, FERC Stats. &
Regs., Regulations Preambles 1996–2000 ¶ 31,048 at
30,528 (1997).
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agreements cannot eliminate rollover
rights.23 In providing that rollover rights
cannot be eliminated by agreement, the
Commission was concerned about
transmission owners unfairly inducing
customers to give up their renewal
rights.
29. In addition, the language at the
end of Standard 9.7, which states ‘‘nor
does it confer any renewal rights on the
redirected path,’’ also appears to be
inconsistent with the pro forma tariff.
Under section 22.2 of the pro forma
tariff, a request for a redirect is to be
treated as a new request for service.
Such a request is governed by
procedures in section 17.1 of the pro
forma tariff and if the request is granted,
it is entitled to the reservation priority
afforded by section 2.2 of the pro forma
tariff.
30. As redirect service is treated as a
new service, to be consistent with the
OATT, once the parties agree to revise
the contract to provide service to a
redirected point of receipt or delivery,
the customer should receive any
renewal rights that go with the new
service at the revised receipt and
delivery points, including rollover
rights afforded under section 2.2.
31. Since this standard appears to
conflict with Commission policy, and
NAESB has not explained the benefits of
such a change, we are not proposing to
incorporate Standard 9.7. However, we
request comments on whether such a
change is appropriate. We also request
comment on whether, if the
Commission determines this standard
conflicts with its policies, there is an
immediate need for a standard on this
issue or whether we can wait for NAESB
to reconsider this issue and develop
alternate language.
32. We also are concerned about some
vague language in Standard 10.6, which
states that ‘‘for the purposes of
curtailment and other capacity
reductions, confirmed Redirects on a
Non-Firm basis shall be treated
comparably to all other types of NonFirm Secondary Point-to-Point Service.’’
The phrase ‘‘all other types’’ is not
defined. We interpret this phrase to
apply only to services that are
comparable to non-firm secondary
point-to-point service, and propose to
accept the standard based on this
interpretation. We request comments on
23 See Southern Company Services, Inc., 108
FERC ¶61,174 at P 42–45 (2004) where the
Commission denied a request for rehearing
challenging the Commission’s finding that parties
entering contracts for transmission service must
remove provisions they inserted in the contracts
that would have restricted future rollover
transmission rights contrary to Commission policy.
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whether this reflects the intent of this
standard.
b. Standards That Duplicate the
Requirements in Our Regulations
33. In adopting its OASIS Business
Practice Standards, the WEQ has
included language that duplicates
language already set out in part 37 of
our regulations.24 This is not
appropriate for business practice
standards we would incorporate by
reference. For this purpose, we
incorporate by reference standards that
implement our regulations and policies,
and operate in concert with our
regulations and policies.
34. Incorporating by reference
standards that duplicate Commission
regulations could result in inconsistent
regulations in the event that the
Commission revises its regulations
before the WEQ has issued revised
standards and because the
Commission’s regulations stand on their
own. Thus, to prevent these problems,
we are not proposing to incorporate by
reference the WEQ’s standards
(enumerated below) that duplicate our
regulations.
35. To further the industry’s progress
toward achieving standardized OASIS
reporting and business practices across
the industry, we are proposing to
incorporate by reference the WEQ’s
OASIS Business Practice Standards in a
new 18 CFR part 38, with the two
exceptions noted above, one involving
standards for redirects of transmission
service (OASIS Business Practice
Standard 9.7), and the other involving
standards that duplicate the
requirements in our regulations (OASIS
Business Practice Standard 1, including
Standards 1.1 through 1.8, and in the
Definitions of ‘‘Affiliate,’’ ‘‘Responsible
party,’’ ‘‘Reseller,’’ ‘‘Transmission
Provider,’’ ‘‘Transmission Customer,’’
and ‘‘Wholesale merchant function.’’)
2. OASIS Standards and
Communication Protocols and Data
Dictionary
36. We believe that the OASIS
Standards and Communication
Protocols, as modified by the WEQ, are
consistent with the Commission’s
existing standards on this topic. Thus,
our view is that incorporating the
WEQ’s OASIS Standards and
Communication Protocols by reference
in our regulations will further the
current requirement for standardization
24 The language that duplicates our regulations (at
18 CFR part 37) is found in Standard 1, including
Standards 1.1 through 1.8, and in the Definitions of
‘‘Affiliate,’’ ‘‘Responsible party,’’ ‘‘Reseller,’’
‘‘Transmission Provider,’’ ‘‘Transmission
Customer,’’ and ‘‘Wholesale merchant function.’’
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of OASIS across the industry. In
addition, it will permit the industry to
use the NAESB consensus process to
suggest further modifications and
enhancements to the OASIS Standards
and Communication Protocols as it
deems necessary, subject to the
Commission’s approval.
37. Thus, we are proposing to
incorporate the WEQ’s OASIS Standards
and Communication Protocols by
reference in a new 18 CFR part 38. If
commenters discover any
inconsistencies between the WEQ’s
OASIS Standards and Communication
Protocols and the Commission’s existing
OASIS Standards and Communication
Protocols, this should be brought to our
attention in their comments on this
NOPR.
38. We believe that the OASIS Data
Dictionary, as modified by the WEQ, is
consistent with the Commission’s
existing OASIS Data Dictionary.
Incorporating the WEQ’s OASIS Data
Dictionary by reference in our
regulations would continue the
requirement for standardization of
OASIS across the industry. In addition,
it would permit the industry to use the
NAESB consensus process to suggest
further modifications and enhancements
to the OASIS standards as it deems
necessary, subject to the Commission’s
approval. Thus, we are proposing to
incorporate by reference the WEQ’s
OASIS Data Dictionary in a new 18 CFR
part 38. If commenters discover any
inconsistencies between the WEQ’s
OASIS Data Dictionary and the
Commission’s existing OASIS Data
Dictionary, this should be brought to
our attention in their comments on this
NOPR.
3. Deleting Superceded Requirements
39. In addition, we propose to delete
the current requirement in 18 CFR part
37, found at 18 CFR sections 37.5(b)(2)
and (b)(3) to comply with the
Commission’s existing OASIS Standards
and Communication Protocols and
OASIS Business Practice Standards,
which would be superseded by the
WEQ-developed OASIS Business
Practice Standards and OASIS
Standards and Communication
Protocols that we are proposing to
incorporate by reference.
40. By contrast, with the exception of
sections 37.5(b)(2) and (b)(3), we are
retaining the OASIS regulations adopted
by the Commission in part 37 of our
regulations because these regulations set
forth the Commission’s policies. The
WEQ standards now cover the technical
aspects of OASIS compliance, and we
fully expect that in the future the WEQ
will continue to upgrade and improve
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the standards. If in the future the
Commission determines that changes in
OASIS are needed for policy reasons,
the Commission will use its own
processes to consider and implement
such changes to OASIS policy.
41. After reviewing the WEQ
standards, we believe that they reflect
the Commission’s OASIS policies and
are consistent with the OASIS technical
standards we previously adopted.
However, we invite commenters to
address whether there are important
discrepancies between the WEQ’s
OASIS Business Practice Standards and
OASIS Standards and Communication
Protocols and Data Dictionary and the
Commission’s existing standards.
C. Business Practice Standards To
Complement the NERC Version 0
Reliability Standards
1. Standards the Commission Proposes
To Incorporate by Reference
42. The WEQ’s business practice
standards addressing Coordinate
Interchange, ACE Equation Special
Cases, Manual Time Error Correction,
and Inadvertent Interchange Payback
were developed to support NERC’s
Version 0 Reliability standards. On
February 8, 2005 the NERC Board of
Trustees approved the Version 0
Reliability Standards to become
effective April 1, 2005. Incorporation of
the WEQ’s business practice standards
addressing Coordinate Interchange, ACE
Equation Special Cases, Manual Time
Error Correction, and Inadvertent
Interchange would complement the
NERC Version 0 Reliability Standards.
Thus, we are proposing to incorporate
these standards by reference in a new 18
CFR part 38. When these business
practices were NERC policies,
compliance with them was voluntary.
However, once they are incorporated by
reference into the Commission’s
regulations, compliance with them will
be mandatory.
2. Standards Being Developed on
Transmission Load Relief and
Coordinate Interchange Business
Practices
43. NAESB states that two sets of
business practices that complement
NERC’s reliability standards—
Transmission Load Relief (TLR) and
enhancements to Coordinate
Interchange Business Practices—were
adopted by the WEQ but not described
in its report. NAESB states that the
business practices for TLR duplicates
NERC’s reliability standards,25 as both
25 The Commission accepted NERC’s TLR
procedures for filing, to be effective April 1, 2005.
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28227
NERC and NAESB agreed that there was
insufficient time to adequately review
and separate the business practices from
the reliability standards and complete
the effort in 2004 for ‘‘Version 0.’’
NAESB states that it has been working
with NERC to separate the business
practices from the reliability standards.
44. We applaud the efforts of NAESB
and NERC to coordinate their standard
development efforts and NAESB’s
priority efforts to adopt business
practices that complement NERC’s
reliability standards.
D. Standards of Conduct Standards
45. One of the revisions the WEQ
made to the OASIS Business Practice
Standards was to delete Standard 1.4
dealing with Standards of Conduct. The
WEQ deleted this standard because the
Commission’s OASIS Standards of
Conduct, previously governed by the
Commission’s regulation at 18 CFR 37.4,
was superseded by the Commission’s
regulations at 18 CFR part 358. In
conjunction with deleting Standard 1.4
from the OASIS Business Practice
Standards, the WEQ adopted separate
stand-alone Standards of Conduct
standards developed to implement the
Standards of Conduct requirements
detailed in the Commission’s Order Nos.
2004, 2004–A, and 2004–B as they
apply to wholesale electric entities.
Moreover, in its filing, NAESB states
that priority efforts are underway to
make necessary modifications to
address Order No. 2004–C. As discussed
further below, the Commission is not
proposing to incorporate by reference
the WEQ’s Standards of Conduct
standards at the current time. However,
we are proposing to incorporate the
WEQ Standards and Communication
Protocols that govern the posting on
OASIS of the information required in
the Standards of Conduct in a new part
38 of the Commission’s regulations.26
46. We are not proposing to
incorporate the WEQ’s stand-alone
Standards of Conduct by reference
because these standards merely adopt
the language in the Commission’s
regulations promulgated by Order Nos.
2004, 2004–A, and 2004–B and contain
no further standards addressing the
implementation of these regulations. In
addition, the WEQ has edited the
Commission’s language to delete
North American Electric Reliability Council, 110
FERC ¶ 61,388 (2005).
26 The WEQ’s standards we are proposing to
incorporate by reference on the posting of
information required in the Standards of Conduct
are found at Standards 4.3.1, 4.3.10.6, 4.3.11, and
4.5 of the WEQ OASIS Standards and
Communications Protocols and the definition of
‘‘STANDARDS_OF_CONDUCT_ISSUES’’ in the
OASIS Data Dictionary.
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references to natural gas and natural gas
pipelines to limit the applicability of its
standard to public utilities. However, in
their editing, the WEQ has changed the
meaning of the Commission’s language
(see, e.g., the definition of Energy
Affiliate). If we were to incorporate
these standards by reference, we would
have conflicting regulations, since the
WEQ’s standards duplicate language
already in our regulations, but with
errors.
47. As we stated above, in considering
what WEQ standards to incorporate by
reference, we are looking for the
development of standards to implement,
and operate in concert with, our
regulations. If the WEQ was to adopt a
set of standards that is consistent with,
but not duplicative of, our regulations at
18 CFR part 358, Standards of Conduct
for Transmission Providers, we would
consider incorporating those standards
by reference. In this regard, it would be
useful if the WEQ would adopt
standards comparable to those NAESB
adopted regarding standards of conduct
on the gas side.27
III. Notice of Use of Voluntary
Consensus Standards
48. Office of Management and Budget
Circular A–119 (section 11) (February
10, 1998) provides that Federal
Agencies should publish a request for
comment in a NOPR when the agency
is seeking to issue or revise a regulation
proposing to adopt a voluntary
consensus standard or a governmentunique standard. In this NOPR, the
Commission is proposing to incorporate
by reference voluntary consensus
standards developed by the WEQ.
IV. Information Collection Statement
49. The following collections of
information contained in this proposed
rule have been submitted to the Office
of Management and Budget (OMB) for
review under section 3507(d) of the
Number of
respondents
Data collection
Paperwork Reduction Act of 1995, 44
U.S.C. 3507(d). The Commission solicits
comments on the Commission’s need for
this information, whether the
information will have practical utility,
the accuracy of the 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. The following
burden estimates include the costs to
implement the WEQ’s OASIS Business
Practice Standards, OASIS Standards
and Communication Protocols, OASIS
Data Dictionary, Coordinate Interchange
Standards, ACE Equation Special Cases
Standards, Manual Time Error
Correction Standards, and Inadvertent
Interchange Payback Standards. The
burden estimates are primarily related
to start-up to implement these standards
and regulations and will not result in
on-going costs.
Number of
responses
per respondent
Hours per
response
Total number
of hours
FERC–516 .......................................................................................................
FERC–717 .......................................................................................................
220
220
1
1
6
24
1,320
5,280
Totals ........................................................................................................
........................
........................
30
6,600
Total Annual Hours for Collection
(Reporting and Recordkeeping, (if
appropriate)) = 6,600.
Information Collection Costs: The
Commission seeks comments on the
costs to comply with these
requirements. It has projected the
average annualized cost for all
respondents to be the following:28
FERC–516
FERC–717
Annualized Capital/Startup Costs ............................................................................................................................
Annualized Costs (Operations & Maintenance) ......................................................................................................
$198,000
N/A
$792,000
N/A
Total Annualized Costs ....................................................................................................................................
$198,000
$792,000
50. OMB regulations 29 require OMB
to approve certain information
collection requirements imposed by
agency rule. The Commission is
submitting notification of this proposed
rule to OMB. These information
collections are mandatory requirements.
Title: Electric Rate Schedule Filings
(FERC–516) Standards for Business
Practices and Communication Protocols
for Public Utilities (FERC–717)
(formerly Open Access Same Time
Information System).
Action: Proposed collections.
OMB Control No.: 1902–0096 and
1902–0173.
Respondents: Business or other for
profit, (Public Utilities (Not applicable
to small business.))
Frequency of Responses: One-time
implementation (business procedures,
capital/start-up).
Necessity of Information: This
proposed rule, if implemented, would
upgrade the Commission’s current
business practice and communication
standards to include standardized
practices and address currently
unresolved issues. The implementation
of these standards and regulations is
necessary to increase the efficiency of
the wholesale electric power grid.
51. The information collection
requirements of this proposed rule are
based on the transition from
transactions being made under the
Commission’s existing OASIS posting
requirements and business practice
standards to conducting transactions
under the proposed standards. The
NOPR proposes that the standards be
incorporated into utility’s tariffs and
that OASIS postings be reported where
it is directly accessible by industry
users. The implementation of these data
requirements will help the Commission
carry out its responsibilities under the
Federal Power Act of promoting the
27 See NAESB’s report filed on August 6, 2004, in
Docket No. RM96–1, on standards adopted by its
Wholesale Gas Quadrant to implement the
Commission’s Order No. 2004.
28 The total annualized costs for the two
information collections is $198,000 + $792,000=
$990,000. This number is reached by multiplying
the total hours to prepare a response (6600 hours)
by an hourly wage estimate of $150 (a composite
estimate that includes legal, technical and support
staff rates, $90+$35+$25). $990,000= $150 x 6600.
29 5 CFR 1320.11.
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efficiency of the electric industry’s
operations. The Commission’s Office of
Markets, Tariffs and Rates will use the
data in rate proceedings to review rate
and tariff changes by public utilities, for
general industry oversight, and to
supplement the documentation used
during the Commission’s audit process.
52. Internal Review: The Commission
has reviewed the requirements
pertaining to business practices and
electronic communication of public
utilities and made a preliminary
determination that the proposed
revisions are necessary to establish a
more efficient and integrated wholesale
electric power grid. Requiring such
information ensures both a common
means of communication and common
business practices which provide
participants engaged in the wholesale
transmission of electric power with
timely information and uniform
business procedures across multiple
transmission providers. These
requirements conform to the
Commission’s plan for efficient
information collection, communication,
and management within the electric
power industry. The Commission has
assured itself, by means of its internal
review, that there is specific, objective
support for the burden estimates
associated with the information
requirements.
53. Interested persons may obtain
information on the reporting
requirements by contacting the
following: Federal Energy Regulatory
Commission, Attn: Michael Miller,
Office of the Executive Director, 888
First Street, NE., Washington, DC 20426,
Tel: (202) 502–8415/Fax: (202) 273–
0873, Email: michael.miller@ferc.gov.
54. Comments concerning the
collection of information(s) and the
associated burden estimate(s), should be
sent to the contact listed above and to
the Office of Management and Budget,
Office of Information and Regulatory
Affairs, Washington, DC 20503
[Attention: Desk Officer for the Federal
Energy Regulatory Commission, phone:
(202) 395–7856, fax: (202) 395–7285].
55. The Commission is required to
prepare an Environmental Assessment
or an Environmental Impact Statement
for any action that may have a
significant adverse effect on the human
environment.30 The Commission has
categorically excluded certain actions
from these requirements as not having a
30 Order No. 486, Regulations Implementing the
National Environmental Policy Act, 52 FR 47897
(Dec. 17, 1987), FERC Stats. & Regs., Regulations
Preambles 1986–1990 ¶ 30,783 (1987).
15:03 May 16, 2005
VI. Regulatory Flexibility Act
Certification
56. The Regulatory Flexibility Act of
1980 (RFA) 33 generally requires a
description and analysis of final rules
that will have significant economic
impact on a substantial number of small
entities. The regulations proposed here
impose requirements only on public
utilities, which are not small businesses,
and, these requirements are, in fact,
designed to benefit all customers,
including small businesses.
57. The Commission has followed the
provisions of both the RFA and the
Paperwork Reduction Act on potential
impact on small business and other
small entities. Specifically, the RFA
directs agencies to consider four
regulatory alternatives to be considered
in a rulemaking to lessen the impact on
small entities: tiering or establishment
of different compliance or reporting
requirements for small entities,
classification, consolidation,
clarification or simplification of
compliance and reporting requirements,
performance rather than design
standards, and exemptions. As the
Commission originally stated in Order
No. 889, the OASIS regulations now
known as Standards for Business
Practices and Communication Protocols
for Public Utilities, apply only to public
utilities that own, operate, or control
transmission facilities subject to the
Commission’s jurisdiction and should a
small entity be subject to the
Commission’s jurisdiction, it may file
for waiver of the requirements.34 This is
31 18
V. Environmental Analysis
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significant effect on the human
environment.31 The actions proposed
here fall within categorical exclusions
in the Commission’s regulations for
rules that are clarifying, corrective, or
procedural, for information gathering,
analysis, and dissemination, and for
sales, exchange, and transportation of
electric power that requires no
construction of facilities.32 Therefore,
an environmental assessment is
unnecessary and has not been prepared
in this NOPR.
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CFR 380.4 (2004).
18 CFR 380.4(a)(2)(ii), 380.4(a)(5),
380.4(a)(27) (2004).
33 5 U.S.C. 601–612.
34 Small entities that qualified for a waiver from
the requirements of Order Nos. 888 and 889 may
apply for a waiver of the requirement to comply
with these standards. We described the criteria for
obtaining such a waiver in Bridger Valley Electric
Association, Inc., 101 FERC ¶ 61,146 (2002) and in
Sussex Rural Electric Cooperative, 103 FERC ¶
61,299 (2003). We stated in those cases that we
would grant a waiver if the applicant is: (1) a small
entity within the meaning of the RFA and has
qualified for a waiver under Order Nos. 888 and
889, serves a load of 45 MW or less, and has four
or fewer employees engaged in accounting, billing,
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28229
keeping with exemption provisions of
the RFA. Accordingly, pursuant to
section 605(b) of the RFA,35 the
Commission hereby certifies that the
regulations proposed herein will not
have a significant adverse impact on a
substantial number of small entities.
VII. Comment Procedures
58. The Commission invites interested
persons to submit comments on the
matters and issues proposed in this
notice to be adopted, including any
related matters or alternative proposals
that commenters may wish to discuss.
Comments are due July 1, 2005.
Comments must refer to Docket No.
RM05–5–000, and must include the
commenter’s name, the organization
they represent, if applicable, and their
address in their comments. Comments
may be filed either in electronic or
paper format.
59. Comments may be filed
electronically via the eFiling link on the
Commission’s Web site at https://
www.ferc.gov . The Commission accepts
most standard word processing formats
and commenters may attach additional
files with supporting information in
certain other file formats. Commenters
filing electronically do not need to make
a paper filing. Commenters that are not
able to file comments electronically
must send an original and 14 copies of
their comments to: Federal Energy
Regulatory Commission, Office of the
Secretary, 888 First Street NE.,
Washington, DC, 20426.
60. All comments will be placed in
the Commission’s public files and may
be viewed, printed, or downloaded
remotely as described in the Document
Availability section below. Commenters
on this proposal are not required to
serve copies of their comments on other
commenters.
VIII. Document Availability
61. 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
FERC’s Home Page (https://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
and regulatory activities; (2) it does not make, or
have authority to make, wholesale power sales at
market-based rates; (3) the applicant makes all of its
sales under one cost-based rate agreement that is on
file with the Commission; (4) it is obligated to file
for Commission approval any new contracts or
revisions to its existing contracts; and (5) the
applicant’s transmission system is essentially radial
in nature and primarily used for distribution to its
member-owners.
35 5 U.S.C. 605(b).
E:\FR\FM\17MYP1.SGM
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Federal Register / Vol. 70, No. 94 / Tuesday, May 17, 2005 / Proposed Rules
Street, NE., Room 2A, Washington, DC
20426.
62. From FERC’s Home Page on the
Internet, this information is available in
the eLibrary. The full text of this
document is available in the eLibrary
both 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.
63. User assistance is available for
eLibrary and the FERC’s Web site during
our normal business hours. For
assistance contact FERC Online Support
at FERCOnlineSupport@ferc.gov or tollfree at (866) 208–3676, or for TTY,
contact (202) 502–8659.
PART 37—OPEN ACCESS SAME-TIME
INFORMATION SYSTEMS
3. The authority citation for part 37
continues to read as follows:
Authority: 16 U.S.C. 791–825r, 2601–2645;
31 U.S.C. 9701; 42 U.S.C. 7101–7352.
4. In § 37.5, paragraph (b) is revised to
read as follows:
§ 37.5 Obligations of transmission
providers and responsible parties.
18 CFR Part 35
*
*
*
*
(b) A Responsible Party must provide
access to an OASIS providing
standardized information relevant to the
availability of transmission capacity,
prices, and other information (as
described in this part) pertaining to the
transmission system for which it is
responsible.
*
*
*
*
*
5. Part 38 is added to read as follows:
Electric utilities, Incorporation by
reference, Reporting and recordkeeping
requirements.
PART 38—BUSINESS PRACTICE
STANDARDS AND COMMUNICATION
PROTOCOLS FOR PUBLIC UTILITIES
List of Subjects
18 CFR Part 37
Conflict of interests, Electric utilities,
Reporting and recordkeeping
requirements.
18 CFR Part 38
Conflict of interests, Electric power
plants, Electric utilities, Incorporation
by reference, Reporting and
recordkeeping requirements.
By direction of the Commission.
Magalie R. Salas,
Secretary.
In consideration of the foregoing, the
Commission proposes to amend Chapter
I, Title 18, Code of Federal Regulations,
as follows.
PART 35—FILING OF RATE
SCHEDULES AND TARIFFS
1. The authority citation for part 35
continues to read as follows:
Authority: 16 U.S.C. 791a-825r, 2601–
2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352.
2. In § 35.28, add paragraph (c)(1)(vi)
to read as follows:
§ 35.28 Non-discriminatory open access
transmission tariff.
*
*
*
*
*
(c) * * *
(1) * * *
(vi) Each public utility’s open access
transmission tariff must include the
standards incorporated by reference in
part 38 of this chapter.
*
*
*
*
*
VerDate jul<14>2003
15:03 May 16, 2005
Jkt 205001
*
Authority: 16 U.S.C. 791–825r, 2601–2645;
31 U.S.C. 9701; 42 U.S.C. 7101–7352.
Sec.
38.1
38.2
Applicability.
Incorporation by reference of North
American Energy Standards Board
Wholesale Electric Quadrant standards.
§ 38.1
Applicability.
This part applies to any public utility
that owns, operates, or controls facilities
used for the transmission of electric
energy in interstate commerce and to
any non-public utility that seeks
voluntary compliance with
jurisdictional transmission tariff
reciprocity conditions.
and Communication Protocols
(WEQSCP–001–000, January 15, 2005);
(3) Open Access Same-Time
Information Systems (OASIS) Data
Dictionary (WEQDD–001–000, January
15, 2005);
(4) Coordinate Interchange Standards
(WEQBPS–002–000, January 15, 2005);
(5) Area Control Error (ACE) Equation
Special Cases Standards (WEQBPS–
003–000, January 15, 2005);
(6) Manual Time Error Correction
Standards (WEQBPS–004–000, January
15, 2005); and
(7) Inadvertent Interchange Payback
Standards (WEQBPS–005–000, January
15, 2005).
(b) This incorporation by reference
was approved by the Director of the
Federal Register in accordance with 5
U.S.C. 552(a) and 1 CFR part 51. Copies
of these standards may be obtained from
the North American Energy Standards
Board, 1301 Fannin, Suite 2350,
Houston, TX 77002. Copies may be
inspected at the Federal Energy
Regulatory Commission, Public
Reference and Files Maintenance
Branch, 888 First Street, NE.,
Washington, DC 20426 and at the
National Archives and Records
Administration (NARA). For
information on the availability of this
material at NARA, call 202–741–6030,
or go to: https://www.archives.gov/
federal_register/
code_of_federal_regulations/
ibr_locations.html.
[FR Doc. 05–9797 Filed 5–16–05; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF THE TREASURY
§ 38.2 Incorporation by reference of North
American Energy Standards Board
Wholesale Electric Quadrant standards.
Internal Revenue Service
(a) All entities to which § 38.1 is
applicable must comply with the
following business practice and
electronic communication standards
promulgated by the North American
Energy Standards Board Wholesale
Electric Quadrant, which are
incorporated herein by reference:
(1) Open Access Same-Time
Information Systems (OASIS) Business
Practice Standards (WEQBPS–001–000,
January 15, 2005) with the exception of
the Definitions of ‘‘Affiliate,’’
‘‘Responsible Party,’’ ‘‘Reseller,’’
‘‘Transmission Provider,’’
‘‘Transmission Customer,’’ and
‘‘Wholesale Merchant Function,’’ and
Standard 1, including Standards 1.1
through 1.8, and Standard 9.7.
(2) Open Access Same-Time
Information Systems (OASIS) Standards
[REG–117969–00 and REG–125628–01]
PO 00000
Frm 00011
Fmt 4702
Sfmt 4702
26 CFR Part 1
RIN 1545–BD76 and RIN 1545–BA65
Statutory Mergers and Consolidations;
Revision of Income Tax Regulations
Under Sections 358, 367, 884, and
6038B Dealing With Statutory Mergers
or Consolidations Under Section
368(a)(1)(A) Involving One or More
Foreign Corporations; Hearing
Cancellation
Internal Revenue Service (IRS),
Treasury.
ACTION: Cancellation of notice of public
hearing on proposed rulemaking.
AGENCY:
SUMMARY: This document provides
notice of cancellation of a public
hearing on proposed rulemaking that
affects corporations engaging in mergers
E:\FR\FM\17MYP1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 94 (Tuesday, May 17, 2005)]
[Proposed Rules]
[Pages 28222-28230]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9797]
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 35, 37, and 38
[Docket No. RM05-5-000]
Standards for Business Practices and Communication Protocols for
Public Utilities
May 9, 2005.
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission is proposing to amend
its regulations to incorporate by reference standards promulgated by
the North American Energy Standards Board's (NAESB's) Wholesale
Electric Quadrant (WEQ) dealing with: Open Access Same-Time Information
Systems (OASIS) business practice standards, including posting
requirements for Order No. 2003 generator interconnection agreements
and procedures; OASIS Standards and Communication Protocols and Data
Dictionary; and business practice standards for Coordinate Interchange,
Area Control Error (ACE) Equation Special Cases, Manual Time Error
Correction, and Inadvertent Interchange Payback.
Incorporating these standards by reference into the Commission's
regulations is intended to benefit wholesale electric customers by
streamlining utility business practices and transactional processes and
OASIS procedures and by adopting a formal ongoing process for reviewing
and upgrading the Commission's OASIS standards and other electric
industry business practices that would benefit from the implementation
of generic industry standards. In addition, the proposal to adopt
business practice standards for Coordinate Interchange, ACE Equation
Special Cases, Manual Time Error Correction, and Inadvertent
Interchange Payback are intended to complement the Version 0
Reliability Standards of the North American Electric Reliability
Council.
DATES: Comments on the proposed rule are due July 1, 2005.
ADDRESSES: Comments may be filed electronically via the eFiling link on
the Commission's Web site at https://www.ferc.gov. Commenters unable to
file comments electronically must send an original and 14 copies of
their comments to: Federal Energy Regulatory Commission, Office of the
Secretary, 888 First Street, NE., Washington, DC, 20426. Refer to the
Comment Procedures section of the preamble for additional information
on how to file comments.
FOR FURTHER INFORMATION CONTACT:
Marvin Rosenberg (technical issues), Office of Markets, Tariffs and
Rates, Federal Energy Regulatory Commission, 888 First Street, NE,
Washington, DC 20426, (202) 502-8292.
Kay Morice (technical issues), Office of Markets, Tariffs and Rates,
Federal Energy Regulatory Commission, 888 First Street, NE, Washington,
DC 20426, (202) 502-6507.
Gary D. Cohen (legal issues), Office of the General Counsel, Federal
Energy Regulatory Commission, 888 First Street, NE, Washington, DC
20426, (202) 502-8321.
SUPPLEMENTARY INFORMATION:
1. The Federal Energy Regulatory Commission (Commission) proposes
to amend its regulations under the Federal Power Act to incorporate by
reference certain standards promulgated by the North American Energy
Standards Board's (NAESB's) Wholesale Electric Quadrant (WEQ) that
implement, with modifications, the Commission's existing Open Access
Same-Time Information Systems (OASIS) Business Practice Standards and
OASIS Standards and Communication Protocols and Data Dictionary
requirements. In addition, the Commission proposes to incorporate by
reference NAESB's business practice standards on Coordinate
Interchange, Area Control Error (ACE) Equation Special Cases, Manual
Time Error Correction, and Inadvertent Interchange Payback that
complement the Version 0 Reliability Standards of the North American
Electric Reliability Council (NERC).
2. Incorporating these standards by reference into the Commission's
regulations is intended to benefit wholesale electric customers by
streamlining utility business practices and transactional processes and
OASIS procedures and by adopting a formal ongoing process for reviewing
and upgrading the Commission's OASIS standards as well as other
electric industry business practices that would benefit from the
implementation of generic industry standards.
I. Background
3. When the Commission developed its OASIS regulations, OASIS
Standards and Communication Protocols, Data Dictionary, and Business
Practice Standards, it relied heavily on the assistance provided by all
segments of the wholesale electric power industry and its customers in
the ad hoc working groups that came together and offered consensus
proposals for the Commission's consideration. While this process was
very successful, it became apparent to the Commission that ongoing
issues remained that would be better addressed by an ongoing industry
group dedicated to drafting consensus industry standards to implement
the Commission's OASIS-related policies and policies on other industry
business practices that would benefit from the implementation of
generic industry standards rather than by continued reliance on an ad
hoc approach.
[[Page 28223]]
4. On December 19, 2001, the Commission issued an order \1\ asking
the wholesale electric power industry to develop business practice
standards and communication protocols by establishing a single
consensus, industry-wide standards organization for the wholesale
electric industry, to complement the market design principles the
Commission was developing.
---------------------------------------------------------------------------
\1\ See Electricity Market Design and Structure, 97 FERC ]
61,289 (2001) (December 2001 Order), 99 FERC ] 61,171 (May 2002
Order), reh'g denied, 101 FERC ] 61,297 (2002) (December 2002
Order).
---------------------------------------------------------------------------
5. Subsequently, in 2002, the Gas Industry Standards Board (GISB)
stepped forward and volunteered to play this role by modifying its
organization to broaden the scope of its activities to address electric
power standards. The result of this reorganization has been the
emergence of NAESB's WEQ, a non-profit, industry-driven organization
working to reach consensus on standards to streamline the business
practices and transactional processes within the wholesale electric
industry and proposing and adopting voluntary communication standards
and model business practices.
6. As we have previously stated, we consider ``coordination between
business practice standards and reliability standards to be critical to
the efficient operation of the market.'' \2\ Thus, we urged the
industry to ``expeditiously establish the procedures for ensuring such
coordination after the NAESB WEQ [was] formalized, and request[ed]
NAESB and others to file an update on the progress on coordination
between it and NERC, 90 days after the formation of the WEQ.'' \3\
---------------------------------------------------------------------------
\2\ May 2002 Order, 99 FERC ] 61,171at P 22.
\3\ Id. at P 22.
---------------------------------------------------------------------------
7. In response to the Commission's request, NAESB and NERC filed a
joint letter, on December 16, 2002, explaining that both organizations
had signed a memorandum of understanding (MOU) ``designed to ensure
that the development of wholesale electric business practices and
reliability standards are harmonized and that every practicable effort
is made to eliminate overlap and duplication of efforts between the two
organizations.'' The MOU describes, among other coordination
procedures, the establishment of a Joint Interface Committee that will
review all standards development proposals received by either
organization and determine which organization should be assigned to
draft the relevant standards.
8. On January 18, 2005, NAESB filed a report with the Commission
detailing the WEQ's activities over the past two years since the
group's inception. This filing represents NAESB's first filing with the
Commission reporting on wholesale electric business practices. NAESB
reports that the WEQ has adopted business practices standards and
communication protocols for the wholesale electric industry. These
standards (Version 000 Standards) include the following OASIS-related
business practice standards and communication protocols: (1) OASIS
Business Practice Standards; (2) OASIS Standards and Communication
Protocols; and (3) an OASIS Data Dictionary.
9. NAESB also reports that, to complement NERC's Version 0
Reliability Standards, the WEQ has adopted business practice standards
for: (1) Coordinate Interchange; (2) ACE Equation Special Cases; (3)
Manual Time Error Correction; and (4) Inadvertent Interchange Payback.
Further, NAESB states that the WEQ has adopted business practice
standards for Standards of Conduct to implement the Commission's
requirements in Order Nos. 2004, 2004-A, and 2004-B.\4\
---------------------------------------------------------------------------
\4\ Standards of Conduct for Transmission Providers, Order No.
2004, FERC Stats. & Regs., Regulations Preambles ] 31,155 (2003)
(Order No. 2004), order on reh'g, Order No. 2004-A, FERC Stats. &
Regs., Regulations Preambles ] 31,161 (2004), order on reh'g and
clarification, Order No. 2004-B, FERC Stats. & Regs., Regulations
Preambles ] 31,166 (2004), order on reh'g and clarification, Order
No. 2004-C, FERC Stats. & Regs., Regulations Preambles ] 31,172
(2005), , order on reh'g and clarification, Order No. 2004-D, 110
FERC ] 61,320 (2005), appeal pending sub nom. American Gas
Association v. FERC, No. 04-1178, et al. (DC Cir. filed June 9, 2004
and later). NAESB reports that it is currently engaged in priority
efforts to make any necessary modifications to the Standards of
Conduct business practice standards to ensure they adequately
address the requirements of Order No. 2004-C.
---------------------------------------------------------------------------
10. According to NAESB, the WEQ has adopted the Commission's OASIS
Business Practice Standards, OASIS Standards and Communication
Protocols, and OASIS Data Dictionary to reflect the business practice
standards and communication protocol standards adopted by the
Commission in Order Nos. 605, 638, and 889.\5\ NAESB states that the
WEQ then adopted modifications to these standards to: (1) Facilitate
the redirection of transmission service;\6\ (2) address multiple
submissions of identical transmission requests/queuing issues;\7\ (3)
address OASIS posting requirements under Order No. 2003 (the Large
Generator Interconnection rule);\8\ and (4) provide non-substantive
editing to improve the formatting, organization, and clarity of the
text.\9\
---------------------------------------------------------------------------
\5\ Open Access Same-Time Information Systems, Order No. 605,
FERC Stats. & Regs., Regulations Preambles 1996-2000 ] 31,075
(1999); Open Access Same-Time Information Systems, Order No. 638,
FERC Stats. & Regs., Regulations Preambles 1996-2000 ] 31,093
(2000); Open Access Same-Time Information Systems, Order No. 889,
FERC Stats. & Regs., Regulations Preambles 1991-1996 ] 31,35 (1996),
Order No. 889-A, FERC Stats. & Regs., Regulations Preambles 1996-
2000 ] 31,049 (1997).
\6\ NAESB Comments at 21.
\7\ Id. at 20.
\8\ See Standardization of Generator Interconnection Agreements
and Procedures, Order No. 2003, FERC Stats. & Regs., Regulations
Preambles ] 31,146 (2003), order on reh'g, Order No. 2003-A, FERC
Stats. & Regs., Regulations Preambles ] 31,160 (2004), order on
reh'g, Order No. 2003-B, FERC Stats & Regs., Regulations Preambles ]
31,171 (2004), reh'g pending.
\9\ One of these edits was to delete Standard 1.4 of the WEQ's
OASIS Business Practice Standards governing compliance with the
OASIS Standards of Conduct (which is now governed by the
Commission's regulations at 18 CFR part 358, which superceded the
Commission's former regulation at 18 CFR 37.4) because the provision
to which it related has now been superseded.
---------------------------------------------------------------------------
11. NAESB also reports that the development of the WEQ business
practices standards on Coordinate Interchange, ACE Equation Special
Cases, Manual Time Error Correction, and Inadvertent Interchange
Payback was part of a joint effort with NERC where the existing NERC
operating policies were divided into reliability standards for
development by NERC and business practices standards for development by
NAESB. The Commission endorsed this cooperative division of labor
between NERC and NAESB in the May 2002 Order.\10\
---------------------------------------------------------------------------
\10\ 99 FERC ] 61,171 at P 22.
---------------------------------------------------------------------------
II. Discussion
A. Standards Development and Incorporation by Reference
12. As we have previously stated, we are pleased that the industry
has reached a broad consensus that the WEQ will be the single
organization to develop business practice and electronic communication
standards on behalf of the entire wholesale electric power
industry.\11\ Coordinating these efforts within a single organization
will make the process of developing standards more efficient, which
benefits the entire industry. NAESB is an accredited American National
Standards Institute Standards Development Organization, and, thus, the
standards development process will ensure due process and assure that
all industry members may participate in drafting the standards. The
Commission's confidence in the ability of the WEQ to fill this role
successfully is justified by the positive contributions NAESB and its
predecessor, GISB, have already made
[[Page 28224]]
in developing consensus standards applicable to the natural gas
industry
---------------------------------------------------------------------------
\11\ Id. at P 3.
---------------------------------------------------------------------------
13. The WEQ's standards were developed under a voluntary consensus
process. Under this process, to be approved a standard must receive a
super-majority vote of 67 percent of the members of the WEQ's Executive
Committee with support from at least 40 percent from each of the five
industry segments--transmission, generation, marketer/brokers,
distribution/load serving entities, and end users. For final approval,
67 percent of the WEQ's general membership must ratify the standards.
14. As we found with respect to the natural gas industry, adoption
of consensus standards is appropriate because the consensus process
assists the Commission in determining the reasonableness of the
standards by requiring that the standards draw support from a broad
spectrum of all segments of the industry. Since the industry itself has
to conduct business under these standards, the Commission's regulations
should reflect those standards that have the widest possible support.
15. In section 12(d) of the National Technology Transfer and
Advancement Act of 1995, Congress affirmatively requires federal
agencies to use technical standards developed by voluntary consensus
standards organizations, like NAESB's WEQ, as means to carry out policy
objectives or activities.\12\ As the Commission has pointed out on
several occasions,\13\ incorporation by reference is the appropriate,
and indeed the required, method for adopting copyrighted standards
material.\14\ As required, the WEQ standards are reasonably available
from NAESB. Members can access these materials at no additional charge
from the NAESB Web site or can pay $50 for the booklet or CD rom.
Because standards development is of importance to the entire industry,
the Commission strongly encourages all companies to become members and
to participate actively in the NAESB process. However, non-members can
obtain the standards booklet or CD rom for $100. In addition, as
required by the regulations, copies of the standards are also available
for inspection in the Commission's Public Reference Room.\15\
---------------------------------------------------------------------------
\12\ Pub L. No. 104-113, section 12(d), 110 Stat. 775 (1996), 15
U.S.C. 272 note (1997).
\13\ See, e.g., Standards for Business Practices of Interstate
Natural Gas Pipelines, Order No. 587-R, FERC Stats. & Regs.,
Regulation Preambles ] 31,141 at P 29-37 (2003).
\14\ Order No. 587-A , 61 FR 55208, 77 FERC ] 61,061, at p.
61,232 (1996); Order No. 587-K , FERC Stats. & Regs., Regulations
Preambles 1996-2000 ] 31,072 at 30,775 (1999). See 5 U.S.C. 552
(a)(1) (2000); 1 CFR 51.7(4) (requirements established for
incorporation by reference); Federal Participation in the
Development and Use of Voluntary Standards, OMB Circular A-119, at 6
(a)(1) (Feb. 10, 1998), https://www.whitehouse.gov/omb/circulars/
a119/a119.html (incorporation by reference appropriate means of
adopting private sector standards under the National Technology
Transfer and Advancement Act). Indeed, the Commission could not
reproduce the WEQ standards in violation of the NAESB copyright. See
28 U.S.C. 1498 (government not exempt from patent and copyright
infringement).
\15\ 5 U.S.C. 552 (a)(1); 1 CFR 51.
---------------------------------------------------------------------------
16. Consistent with our practice for the natural gas industry, the
Commission is proposing to incorporate by reference (in part 38 of our
regulations under the Federal Power Act, 18 CFR part 38) most of the
standards developed by the WEQ. Once the Commission incorporates the
WEQ's standards into its regulations, all public utilities subject to
the Commission's authority will be required to comply with the
incorporated standards, as would non-jurisdictional entities
voluntarily following Commission's open access requirements under
reciprocity. As NAESB revises these standards in the future, the
Commission will review NAESB's revisions and consider incorporating
such changes through a notice and comment rulemaking.\16\
---------------------------------------------------------------------------
\16\ Entities are required to abide by only the version of the
standards adopted by the Commission. Compliance with subsequent
revisions will not be required unless the Commission has through a
notice and comment rulemaking proceeding incorporated by reference
any such revisions.
---------------------------------------------------------------------------
17. The Commission is also proposing, similar to what we have done
with respect to the gas standards, to require each electric utility to
revise its open access transmission tariff (OATT) to include the
applicable WEQ standards.\17\ For standards that do not require
implementing tariff provisions, the Commission is proposing to permit
the utility to incorporate the WEQ standard by reference in its
OATT.\18\ Thus, we are proposing to revise our regulation at 18 CFR
35.28(c) to include this requirement.
---------------------------------------------------------------------------
\17\ Thus, when the Commission incorporates by reference updated
standards, each utility will be required to make a filing updating
its tariff accordingly.
\18\ When making such a tariff filing, the following
nomenclature should be used:
OASIS Business Practice Standards (WEQBPS-001-000,
January 15, 2005) including the Definitions of ``Capacity Available
to Redirect'', ``Commission'', ``Denial of Service'', ``Identical
Service Requests'', ``Parent Reservation'', ``Queue Flooding'', and
``Queue Hoarding'', Standards 2 through 10 with subsections except
Standard 9.7, Appendix--Standard 8 Examples, and Appendix B;
OASIS Standards and Communication Protocols (WEQSCP-
001-000, January 15, 2005) including Standards 1 through 5 with
subsections;
OASIS Data Dictionary (WEQDD-001-000, January 15,
2005);
Coordinate Interchange Standards (WEQBPS-002-000,
January 15, 2005) including Purpose, Applicability, Definitions,
Standards 1 through 13 with subsections, and Appendices A through D;
ACE Equations Special Cases Standards (WEQBPS-003-000,
January 15, 2005) including Purpose, Applicability, Definitions,
Standards 1 through 3 with subsections, and Appendix A;
Manual Time Error Correction Standards (WEQBPS-004-000,
January 15, 2005) including Purpose, Applicability, Definitions, and
Standards 1 through 12 with subsections; and
Inadvertent Interchange Payback Standards (WEQBPS-005-
000, January 15, 2005) including Purpose, Applicability,
Definitions, Standard 1 with subsections, and Appendix A.
---------------------------------------------------------------------------
18. Specifically, the Commission proposes to incorporate by
reference the standards adopted by NAESB's WEQ that include: (1) OASIS
Business Practice Standards; (2) OASIS Standards and Communication
Protocols; and (3) an OASIS Data Dictionary, with the exception of
standards that duplicate the Commission's regulations, all as modified
to address: (1) Redirect of transmission service; \19\ (2) multiple
submissions of identical transmission requests/queuing issues; (3)
OASIS posting requirements under Order No. 2003 (the Large Generator
Interconnection rule); and (4) maintenance of the OASIS standards.
Thus, we are proposing to revise our regulations to add 18 CFR part 38,
where we would specifically enumerate each set of standards adopted by
the WEQ that we are incorporating by reference.
---------------------------------------------------------------------------
\19\ As further discussed below, we are not proposing to
incorporate by reference OASIS Business Practice Standard 9.7, as
this appears to conflict with provisions of the pro forma tariff.
---------------------------------------------------------------------------
19. Further, the Commission proposes to incorporate by reference
the WEQ business practice standards to complement NERC's Version 0
Reliability Standards including: (1) Coordinate Interchange; (2) ACE
Equation Special Cases; (3) Manual Time Error Correction; and (4)
Inadvertent Interchange Payback. Thus, as discussed above, we propose
to include the incorporation by reference of these standards in a new
18 CFR part 38, where we would specifically enumerate each set of
standards adopted by the WEQ that we are incorporating by reference.
However, the Commission is not proposing to incorporate by reference
the NAESB Standards of Conduct-related business practice standards.
20. We are proposing to incorporate by reference NAESB's OASIS
standards because we believe that this will create: (1) A body of
business practices standards and communication protocol standards that
the industry can use as a foundation for addressing emerging
[[Page 28225]]
business issues; (2) business practices and communication protocols
modifying the Commission's standards to accommodate new market
operations; and (3) business practices standards and communication
protocols to assist the wholesale electric industry in complying with
the Commission's OASIS posting requirements under Order No. 2003
(Standardization of Generator Interconnection Agreements and
Procedures).
21. We also believe that incorporating the NAESB business practice
standards identified above by reference will create business practices
that support NERC's Version 0 Reliability Standards and functional
model.
B. OASIS Standards
22. The WEQ's OASIS standards are based on the Commission's
existing standards on this topic. First, the WEQ adopted baseline OASIS
standards to reflect the Commission's existing OASIS standards. Then
the WEQ modified its baseline OASIS standards to facilitate the
redirect of transmission reservations to alternate receipt and delivery
points, to address multiple submissions of identical transmission
requests and queuing issues, and to address OASIS posting requirements
under Order No. 2003, based on industry requests for enhancements to
the OASIS standards. The WEQ also performed maintenance on the baseline
OASIS standards to improve their format, organization, and clarity.
23. On April 19, 2005, NAESB reported that the WEQ made
modifications to the Commission's OASIS Standards and Communication
Protocols (V1.4), OASIS Data Dictionary (V1.41) and the OASIS Business
Practices Standards (V1.2), as follows:
New OASIS Business Practice Standards
Standard 1: Provision of Open Access Transmission Service
Standard 8: Requirements for dealing with multiple,
identical transmission service requests.
Standard 9: Requirements for dealing with Redirects on a
Firm basis.
Standard 10: Requirements for dealing with Redirects on a
Non-Firm basis.
New OASIS Business Practice Standards Definitions
Commission
Denial of Service
Identical Service Requests
Queue Flooding
Queue Hoarding
Capacity Available to Redirect
Parent Reservation
Miscellaneous Changes to OASIS Business Practice Standards
The OASIS Business Practice Standards contained numerous
internal references. Since the NAESB standards are based on the current
OASIS Business Practices, references were changed to reflect the
correct NAESB standard, or section of regulation, as appropriate.\20\
---------------------------------------------------------------------------
\20\ Changes of this nature are found in the following
standards: Applicability; Purpose; definition of Affiliate; 1.5(a);
1.5(b); 1.5(c); 1.6 (b)(3)(i)(B); 1.6 (b)(3)(i)(C) (1); 1.6 (c)(4);
1.6 (d)(3); 1.6 (e)(1)(iv); 1.6 (g)(3); 1.6 (g)(4); 1.7(a); 2.0;
Table 2-1 note 1; 2.1; 2.2; 2.3; 2.4; 2.5; 2.5.1; 2.5.3; 2.5.4;
2.5.5; 2.5.6; introductory paragraph under ``Process to Register
Non-Standard Service Attribute Values'' header; introductory
paragraph under ``Phase IA Negotiation Process State Transition
Diagram'' header; 4.4; 4.5; 5.0; 6.0.
---------------------------------------------------------------------------
In several instances references to specific regulations
were replaced with a general reference to currently applicable
regulations. These instances included the following standards:
Applicability; 1.6(d)(1); 1.6(d)(5); 1.6(e)(1)(i).
In Standards 1.5 (b)(2) and (3) the information detailing
how to obtain the OASIS Business Practice Standards and Standards and
Communication Protocols (OASIS S&CP) from the Commission was deleted.
In Standard 2.4 the specific reference to ``NERC
[Transmission Line Loading Relief] Procedures for NERC CURTAILMENT
PRIORITY (1-7)'' was replaced with a general reference to those
procedures.
In Standard 7.2 the specific reference to ``NERC
[Electronic Tagging] Specification 1.6'' was replaced with a reference
to the current version of the NERC [Electronic Tagging] Specifications.
In Standards 7.9, 7.10, and 7.14 language referencing the
IMPLEMENT or CONDITIONAL status has been changed to the more generic
phrase ``become implemented.''
In Standards 7.12 and 7.13 the reference to ``NERC
Operating Policy 3 and associated Appendices'' was replaced with ``NERC
and/or NAESB Standards.''
Changes to OASIS S&CP Standard 4.5
The phrase ``[I]nformation that must be posted on
INFO.HTM, as per Section 3.4 b, includes'' was deleted and replaced
with the following language:
When a regulatory order requires informational postings on OASIS
and there is no OASIS S&CP template to support the postings or it is
deemed inappropriate to use a template, there shall be a reference in
INFO.HTM to the required information, including, but not limited to,
references to the following:
The phrase ``[T]here shall be a reference in INFO.HTM to''
was deleted from each of the bullets.
The following new language was added below the bullets:
For the purposes of this section, any link to required
informational postings that can be accessed from INFO.HTM would be
considered to have met the OASIS posting requirements, provided that
the linked information meets all other OASIS accessibility
requirements.
Miscellaneous Changes to the OASIS Data Dictionary
Element Name ``INITIATING-- PARTY': The phrase
``Transmission Provider (TP), Security Coordinator (SC) or Control Area
(CA)'' replaced the phrase ``Transmission Provider, Security
Coordinator or Control Area'' under the Restricted Values column so
that the abbreviations could be used in Element Name ``RESPONSIBLE--
PARTY''.
24. NAESB also reports that it has made the following modifications
to the OASIS baseline standards to enhance their format, organization,
and clarity:
Consolidation of Standards 8-21, with exceptions for
Standards 15-16, as subsections 1.1-1.8 of Standard 1;
Deletion of Standards 15 and 16, but retention of the
information as introductory material for Standard 1;
Deletion of Standard 22 as not applicable;
Modification of external references, where appropriate, to
be internal references (e.g., references to ``Section 37'' changed to
``Standard 1'');
Minor, non material reformatting;
Modification of portions of Standards 1.1-1.7 to reflect
the standards as contained in the current CFR, as consistent with the
intention of Request No. R04005; and
Deletion of Standard 1.4, Standards of Conduct.
1. OASIS Business Practice Standards
25. With the exception of standards, discussed below, involving
standards that duplicate the requirements in our regulations (OASIS
Business Practice Standard 1, including Standards 1.1 through 1.8, and
in the Definitions of ``Affiliate,'' ``Responsible party,''
``Reseller,'' ``Transmission Provider,'' ``Transmission Customer,'' and
``Wholesale merchant function''), we believe that the WEQ's OASIS
Business Practice Standards are consistent with the Commission's
existing standards on this topic.\21\ Thus, our current view is
[[Page 28226]]
that incorporating the WEQ's OASIS Business Practice Standards by
reference in our regulations will further the current requirement for
standardization of OASIS across the industry. In addition, it will
permit the industry to use the NAESB consensus process to suggest
further modifications and enhancements to the OASIS Business Practice
Standards as it deems necessary, subject to the Commission's approval.
---------------------------------------------------------------------------
\21\ In addition, although we are proposing to incorporate by
reference OASIS Business Practice Standard 10.6, we have problems
with this provision that we are asking commenters to address in
their comments on this NOPR.
---------------------------------------------------------------------------
26. Thus, with the exceptions referenced above and discussed below,
we are proposing to incorporate the WEQ's OASIS Business Practice
Standards by reference in a new 18 CFR part 38. If commenters discover
any inconsistencies between the WEQ's OASIS Business Practice Standards
we propose to incorporate by reference and the Commission's existing
OASIS Business Practice Standards, this should be brought to our
attention in their comments on this NOPR.
a. Standards for Redirects of Transmission Service
27. In sections 22.1 and 22.2 of the pro forma tariff,\22\ the OATT
permits redirects of transmission reservations to alternate receipt and
delivery points. As discussed above, one of the modifications that the
WEQ made to its baseline OASIS Business Practice Standards was to
include standards intended to facilitate the redirect of transmission
services. However, we have concern about Standards 9.7 and 10.6 in
relation to the policies we have adopted in the pro format OATT. As
discussed further below, based on these inconsistencies we are not
proposing to adopt Standard 9.7, and we are inviting comment on our
understanding of Standard 10.6.
---------------------------------------------------------------------------
\22\ See Promoting Wholesale Competition Through Open Access
Non-Discriminatory Transmission Services by Public Utilities, Order
No. 888, FERC Stats. & Regs., Regulations Preambles 1991-1996 ]
31,036 (1996), Order No. 888-A, FERC Stats. & Regs., Regulations
Preambles 1996-2000 ] 31,048 at 30,528 (1997).
---------------------------------------------------------------------------
28. The WEQ's Standard 9.7 provides that, unless otherwise mutually
agreed to by the primary provider and original customer, a request for
redirect on a firm basis does not impact the transmission customer's
long term firm renewal rights (e.g., rollover or evergreen rights) on
the original path, nor does it confer any renewal rights on the
redirected path. This provision implies that the parties to any
agreement can mutually agree to eliminate rollover rights, even though
the Commission has found that agreements cannot eliminate rollover
rights.\23\ In providing that rollover rights cannot be eliminated by
agreement, the Commission was concerned about transmission owners
unfairly inducing customers to give up their renewal rights.
---------------------------------------------------------------------------
\23\ See Southern Company Services, Inc., 108 FERC ]61,174 at P
42-45 (2004) where the Commission denied a request for rehearing
challenging the Commission's finding that parties entering contracts
for transmission service must remove provisions they inserted in the
contracts that would have restricted future rollover transmission
rights contrary to Commission policy.
---------------------------------------------------------------------------
29. In addition, the language at the end of Standard 9.7, which
states ``nor does it confer any renewal rights on the redirected
path,'' also appears to be inconsistent with the pro forma tariff.
Under section 22.2 of the pro forma tariff, a request for a redirect is
to be treated as a new request for service. Such a request is governed
by procedures in section 17.1 of the pro forma tariff and if the
request is granted, it is entitled to the reservation priority afforded
by section 2.2 of the pro forma tariff.
30. As redirect service is treated as a new service, to be
consistent with the OATT, once the parties agree to revise the contract
to provide service to a redirected point of receipt or delivery, the
customer should receive any renewal rights that go with the new service
at the revised receipt and delivery points, including rollover rights
afforded under section 2.2.
31. Since this standard appears to conflict with Commission policy,
and NAESB has not explained the benefits of such a change, we are not
proposing to incorporate Standard 9.7. However, we request comments on
whether such a change is appropriate. We also request comment on
whether, if the Commission determines this standard conflicts with its
policies, there is an immediate need for a standard on this issue or
whether we can wait for NAESB to reconsider this issue and develop
alternate language.
32. We also are concerned about some vague language in Standard
10.6, which states that ``for the purposes of curtailment and other
capacity reductions, confirmed Redirects on a Non-Firm basis shall be
treated comparably to all other types of Non-Firm Secondary Point-to-
Point Service.'' The phrase ``all other types'' is not defined. We
interpret this phrase to apply only to services that are comparable to
non-firm secondary point-to-point service, and propose to accept the
standard based on this interpretation. We request comments on whether
this reflects the intent of this standard.
b. Standards That Duplicate the Requirements in Our Regulations
33. In adopting its OASIS Business Practice Standards, the WEQ has
included language that duplicates language already set out in part 37
of our regulations.\24\ This is not appropriate for business practice
standards we would incorporate by reference. For this purpose, we
incorporate by reference standards that implement our regulations and
policies, and operate in concert with our regulations and policies.
---------------------------------------------------------------------------
\24\ The language that duplicates our regulations (at 18 CFR
part 37) is found in Standard 1, including Standards 1.1 through
1.8, and in the Definitions of ``Affiliate,'' ``Responsible party,''
``Reseller,'' ``Transmission Provider,'' ``Transmission Customer,''
and ``Wholesale merchant function.''
---------------------------------------------------------------------------
34. Incorporating by reference standards that duplicate Commission
regulations could result in inconsistent regulations in the event that
the Commission revises its regulations before the WEQ has issued
revised standards and because the Commission's regulations stand on
their own. Thus, to prevent these problems, we are not proposing to
incorporate by reference the WEQ's standards (enumerated below) that
duplicate our regulations.
35. To further the industry's progress toward achieving
standardized OASIS reporting and business practices across the
industry, we are proposing to incorporate by reference the WEQ's OASIS
Business Practice Standards in a new 18 CFR part 38, with the two
exceptions noted above, one involving standards for redirects of
transmission service (OASIS Business Practice Standard 9.7), and the
other involving standards that duplicate the requirements in our
regulations (OASIS Business Practice Standard 1, including Standards
1.1 through 1.8, and in the Definitions of ``Affiliate,'' ``Responsible
party,'' ``Reseller,'' ``Transmission Provider,'' ``Transmission
Customer,'' and ``Wholesale merchant function.'')
2. OASIS Standards and Communication Protocols and Data Dictionary
36. We believe that the OASIS Standards and Communication
Protocols, as modified by the WEQ, are consistent with the Commission's
existing standards on this topic. Thus, our view is that incorporating
the WEQ's OASIS Standards and Communication Protocols by reference in
our regulations will further the current requirement for
standardization
[[Page 28227]]
of OASIS across the industry. In addition, it will permit the industry
to use the NAESB consensus process to suggest further modifications and
enhancements to the OASIS Standards and Communication Protocols as it
deems necessary, subject to the Commission's approval.
37. Thus, we are proposing to incorporate the WEQ's OASIS Standards
and Communication Protocols by reference in a new 18 CFR part 38. If
commenters discover any inconsistencies between the WEQ's OASIS
Standards and Communication Protocols and the Commission's existing
OASIS Standards and Communication Protocols, this should be brought to
our attention in their comments on this NOPR.
38. We believe that the OASIS Data Dictionary, as modified by the
WEQ, is consistent with the Commission's existing OASIS Data
Dictionary. Incorporating the WEQ's OASIS Data Dictionary by reference
in our regulations would continue the requirement for standardization
of OASIS across the industry. In addition, it would permit the industry
to use the NAESB consensus process to suggest further modifications and
enhancements to the OASIS standards as it deems necessary, subject to
the Commission's approval. Thus, we are proposing to incorporate by
reference the WEQ's OASIS Data Dictionary in a new 18 CFR part 38. If
commenters discover any inconsistencies between the WEQ's OASIS Data
Dictionary and the Commission's existing OASIS Data Dictionary, this
should be brought to our attention in their comments on this NOPR.
3. Deleting Superceded Requirements
39. In addition, we propose to delete the current requirement in 18
CFR part 37, found at 18 CFR sections 37.5(b)(2) and (b)(3) to comply
with the Commission's existing OASIS Standards and Communication
Protocols and OASIS Business Practice Standards, which would be
superseded by the WEQ-developed OASIS Business Practice Standards and
OASIS Standards and Communication Protocols that we are proposing to
incorporate by reference.
40. By contrast, with the exception of sections 37.5(b)(2) and
(b)(3), we are retaining the OASIS regulations adopted by the
Commission in part 37 of our regulations because these regulations set
forth the Commission's policies. The WEQ standards now cover the
technical aspects of OASIS compliance, and we fully expect that in the
future the WEQ will continue to upgrade and improve the standards. If
in the future the Commission determines that changes in OASIS are
needed for policy reasons, the Commission will use its own processes to
consider and implement such changes to OASIS policy.
41. After reviewing the WEQ standards, we believe that they reflect
the Commission's OASIS policies and are consistent with the OASIS
technical standards we previously adopted. However, we invite
commenters to address whether there are important discrepancies between
the WEQ's OASIS Business Practice Standards and OASIS Standards and
Communication Protocols and Data Dictionary and the Commission's
existing standards.
C. Business Practice Standards To Complement the NERC Version 0
Reliability Standards
1. Standards the Commission Proposes To Incorporate by Reference
42. The WEQ's business practice standards addressing Coordinate
Interchange, ACE Equation Special Cases, Manual Time Error Correction,
and Inadvertent Interchange Payback were developed to support NERC's
Version 0 Reliability standards. On February 8, 2005 the NERC Board of
Trustees approved the Version 0 Reliability Standards to become
effective April 1, 2005. Incorporation of the WEQ's business practice
standards addressing Coordinate Interchange, ACE Equation Special
Cases, Manual Time Error Correction, and Inadvertent Interchange would
complement the NERC Version 0 Reliability Standards. Thus, we are
proposing to incorporate these standards by reference in a new 18 CFR
part 38. When these business practices were NERC policies, compliance
with them was voluntary. However, once they are incorporated by
reference into the Commission's regulations, compliance with them will
be mandatory.
2. Standards Being Developed on Transmission Load Relief and Coordinate
Interchange Business Practices
43. NAESB states that two sets of business practices that
complement NERC's reliability standards--Transmission Load Relief (TLR)
and enhancements to Coordinate Interchange Business Practices--were
adopted by the WEQ but not described in its report. NAESB states that
the business practices for TLR duplicates NERC's reliability
standards,\25\ as both NERC and NAESB agreed that there was
insufficient time to adequately review and separate the business
practices from the reliability standards and complete the effort in
2004 for ``Version 0.'' NAESB states that it has been working with NERC
to separate the business practices from the reliability standards.
---------------------------------------------------------------------------
\25\ The Commission accepted NERC's TLR procedures for filing,
to be effective April 1, 2005. North American Electric Reliability
Council, 110 FERC ] 61,388 (2005).
---------------------------------------------------------------------------
44. We applaud the efforts of NAESB and NERC to coordinate their
standard development efforts and NAESB's priority efforts to adopt
business practices that complement NERC's reliability standards.
D. Standards of Conduct Standards
45. One of the revisions the WEQ made to the OASIS Business
Practice Standards was to delete Standard 1.4 dealing with Standards of
Conduct. The WEQ deleted this standard because the Commission's OASIS
Standards of Conduct, previously governed by the Commission's
regulation at 18 CFR 37.4, was superseded by the Commission's
regulations at 18 CFR part 358. In conjunction with deleting Standard
1.4 from the OASIS Business Practice Standards, the WEQ adopted
separate stand-alone Standards of Conduct standards developed to
implement the Standards of Conduct requirements detailed in the
Commission's Order Nos. 2004, 2004-A, and 2004-B as they apply to
wholesale electric entities. Moreover, in its filing, NAESB states that
priority efforts are underway to make necessary modifications to
address Order No. 2004-C. As discussed further below, the Commission is
not proposing to incorporate by reference the WEQ's Standards of
Conduct standards at the current time. However, we are proposing to
incorporate the WEQ Standards and Communication Protocols that govern
the posting on OASIS of the information required in the Standards of
Conduct in a new part 38 of the Commission's regulations.\26\
---------------------------------------------------------------------------
\26\ The WEQ's standards we are proposing to incorporate by
reference on the posting of information required in the Standards of
Conduct are found at Standards 4.3.1, 4.3.10.6, 4.3.11, and 4.5 of
the WEQ OASIS Standards and Communications Protocols and the
definition of ``STANDARDS--OF--CONDUCT--ISSUES'' in the OASIS Data
Dictionary.
---------------------------------------------------------------------------
46. We are not proposing to incorporate the WEQ's stand-alone
Standards of Conduct by reference because these standards merely adopt
the language in the Commission's regulations promulgated by Order Nos.
2004, 2004-A, and 2004-B and contain no further standards addressing
the implementation of these regulations. In addition, the WEQ has
edited the Commission's language to delete
[[Page 28228]]
references to natural gas and natural gas pipelines to limit the
applicability of its standard to public utilities. However, in their
editing, the WEQ has changed the meaning of the Commission's language
(see, e.g., the definition of Energy Affiliate). If we were to
incorporate these standards by reference, we would have conflicting
regulations, since the WEQ's standards duplicate language already in
our regulations, but with errors.
47. As we stated above, in considering what WEQ standards to
incorporate by reference, we are looking for the development of
standards to implement, and operate in concert with, our regulations.
If the WEQ was to adopt a set of standards that is consistent with, but
not duplicative of, our regulations at 18 CFR part 358, Standards of
Conduct for Transmission Providers, we would consider incorporating
those standards by reference. In this regard, it would be useful if the
WEQ would adopt standards comparable to those NAESB adopted regarding
standards of conduct on the gas side.\27\
---------------------------------------------------------------------------
\27\ See NAESB's report filed on August 6, 2004, in Docket No.
RM96-1, on standards adopted by its Wholesale Gas Quadrant to
implement the Commission's Order No. 2004.
---------------------------------------------------------------------------
III. Notice of Use of Voluntary Consensus Standards
48. Office of Management and Budget Circular A-119 (section 11)
(February 10, 1998) provides that Federal Agencies should publish a
request for comment in a NOPR when the agency is seeking to issue or
revise a regulation proposing to adopt a voluntary consensus standard
or a government-unique standard. In this NOPR, the Commission is
proposing to incorporate by reference voluntary consensus standards
developed by the WEQ.
IV. Information Collection Statement
49. The following collections of information contained in this
proposed rule have been submitted to the Office of Management and
Budget (OMB) for review under section 3507(d) of the Paperwork
Reduction Act of 1995, 44 U.S.C. 3507(d). The Commission solicits
comments on the Commission's need for this information, whether the
information will have practical utility, the accuracy of the 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. The following burden estimates include the
costs to implement the WEQ's OASIS Business Practice Standards, OASIS
Standards and Communication Protocols, OASIS Data Dictionary,
Coordinate Interchange Standards, ACE Equation Special Cases Standards,
Manual Time Error Correction Standards, and Inadvertent Interchange
Payback Standards. The burden estimates are primarily related to start-
up to implement these standards and regulations and will not result in
on-going costs.
----------------------------------------------------------------------------------------------------------------
Number of
Data collection Number of responses per Hours per Total number
respondents respondent response of hours
----------------------------------------------------------------------------------------------------------------
FERC-516........................................ 220 1 6 1,320
FERC-717........................................ 220 1 24 5,280
-----------------
Totals...................................... .............. .............. 30 6,600
----------------------------------------------------------------------------------------------------------------
Total Annual Hours for Collection (Reporting and Recordkeeping, (if
appropriate)) = 6,600.
Information Collection Costs: The Commission seeks comments on the
costs to comply with these requirements. It has projected the average
annualized cost for all respondents to be the following:\28\
---------------------------------------------------------------------------
\28\ The total annualized costs for the two information
collections is $198,000 + $792,000= $990,000. This number is reached
by multiplying the total hours to prepare a response (6600 hours) by
an hourly wage estimate of $150 (a composite estimate that includes
legal, technical and support staff rates, $90+$35+$25). $990,000=
$150 x 6600.
------------------------------------------------------------------------
FERC-516 FERC-717
------------------------------------------------------------------------
Annualized Capital/Startup Costs........ $198,000 $792,000
Annualized Costs (Operations & N/A N/A
Maintenance)...........................
-----------------
Total Annualized Costs.............. $198,000 $792,000
------------------------------------------------------------------------
50. OMB regulations \29\ require OMB to approve certain information
collection requirements imposed by agency rule. The Commission is
submitting notification of this proposed rule to OMB. These information
collections are mandatory requirements.
---------------------------------------------------------------------------
\29\ 5 CFR 1320.11.
---------------------------------------------------------------------------
Title: Electric Rate Schedule Filings (FERC-516) Standards for
Business Practices and Communication Protocols for Public Utilities
(FERC-717) (formerly Open Access Same Time Information System).
Action: Proposed collections.
OMB Control No.: 1902-0096 and 1902-0173.
Respondents: Business or other for profit, (Public Utilities (Not
applicable to small business.))
Frequency of Responses: One-time implementation (business
procedures, capital/start-up).
Necessity of Information: This proposed rule, if implemented, would
upgrade the Commission's current business practice and communication
standards to include standardized practices and address currently
unresolved issues. The implementation of these standards and
regulations is necessary to increase the efficiency of the wholesale
electric power grid.
51. The information collection requirements of this proposed rule
are based on the transition from transactions being made under the
Commission's existing OASIS posting requirements and business practice
standards to conducting transactions under the proposed standards. The
NOPR proposes that the standards be incorporated into utility's tariffs
and that OASIS postings be reported where it is directly accessible by
industry users. The implementation of these data requirements will help
the Commission carry out its responsibilities under the Federal Power
Act of promoting the
[[Page 28229]]
efficiency of the electric industry's operations. The Commission's
Office of Markets, Tariffs and Rates will use the data in rate
proceedings to review rate and tariff changes by public utilities, for
general industry oversight, and to supplement the documentation used
during the Commission's audit process.
52. Internal Review: The Commission has reviewed the requirements
pertaining to business practices and electronic communication of public
utilities and made a preliminary determination that the proposed
revisions are necessary to establish a more efficient and integrated
wholesale electric power grid. Requiring such information ensures both
a common means of communication and common business practices which
provide participants engaged in the wholesale transmission of electric
power with timely information and uniform business procedures across
multiple transmission providers. These requirements conform to the
Commission's plan for efficient information collection, communication,
and management within the electric power industry. The Commission has
assured itself, by means of its internal review, that there is
specific, objective support for the burden estimates associated with
the information requirements.
53. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, Attn: Michael Miller, Office of the Executive Director, 888
First Street, NE., Washington, DC 20426, Tel: (202) 502-8415/Fax: (202)
273-0873, Email: michael.miller@ferc.gov.
54. Comments concerning the collection of information(s) and the
associated burden estimate(s), should be sent to the contact listed
above and to the Office of Management and Budget, Office of Information
and Regulatory Affairs, Washington, DC 20503 [Attention: Desk Officer
for the Federal Energy Regulatory Commission, phone: (202) 395-7856,
fax: (202) 395-7285].
V. Environmental Analysis
55. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\30\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\31\ The actions proposed here fall within categorical
exclusions in the Commission's regulations for rules that are
clarifying, corrective, or procedural, for information gathering,
analysis, and dissemination, and for sales, exchange, and
transportation of electric power that requires no construction of
facilities.\32\ Therefore, an environmental assessment is unnecessary
and has not been prepared in this NOPR.
---------------------------------------------------------------------------
\30\ Order No. 486, Regulations Implementing the National
Environmental Policy Act, 52 FR 47897 (Dec. 17, 1987), FERC Stats. &
Regs., Regulations Preambles 1986-1990 ] 30,783 (1987).
\31\ 18 CFR 380.4 (2004).
\32\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27)
(2004).
---------------------------------------------------------------------------
VI. Regulatory Flexibility Act Certification
56. The Regulatory Flexibility Act of 1980 (RFA) \33\ generally
requires a description and analysis of final rules that will have
significant economic impact on a substantial number of small entities.
The regulations proposed here impose requirements only on public
utilities, which are not small businesses, and, these requirements are,
in fact, designed to benefit all customers, including small businesses.
---------------------------------------------------------------------------
\33\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------
57. The Commission has followed the provisions of both the RFA and
the Paperwork Reduction Act on potential impact on small business and
other small entities. Specifically, the RFA directs agencies to
consider four regulatory alternatives to be considered in a rulemaking
to lessen the impact on small entities: tiering or establishment of
different compliance or reporting requirements for small entities,
classification, consolidation, clarification or simplification of
compliance and reporting requirements, performance rather than design
standards, and exemptions. As the Commission originally stated in Order
No. 889, the OASIS regulations now known as Standards for Business
Practices and Communication Protocols for Public Utilities, apply only
to public utilities that own, operate, or control transmission
facilities subject to the Commission's jurisdiction and should a small
entity be subject to the Commission's jurisdiction, it may file for
waiver of the requirements.\34\ This is keeping with exemption
provisions of the RFA. Accordingly, pursuant to section 605(b) of the
RFA,\35\ the Commission hereby certifies that the regulations proposed
herein will not have a significant adverse impact on a substantial
number of small entities.
---------------------------------------------------------------------------
\34\ Small entities that qualified for a waiver from the
requirements of Order Nos. 888 and 889 may apply for a waiver of the
requirement to comply with these standards. We described the
criteria for obtaining such a waiver in Bridger Valley Electric
Association, Inc., 101 FERC ] 61,146 (2002) and in Sussex Rural
Electric Cooperative, 103 FERC ] 61,299 (2003). We stated in those
cases that we would grant a waiver if the applicant is: (1) a small
entity within the meaning of the RFA and has qualified for a waiver
under Order Nos. 888 and 889, serves a load of 45 MW or less, and
has four or fewer employees engaged in accounting, billing, and
regulatory activities; (2) it does not make, or have authority to
make, wholesale power sales at market-based rates; (3) the applicant
makes all of its sales under one cost-based rate agreement that is
on file with the Commission; (4) it is obligated to file for
Commission approval any new contracts or revisions to its existing
contracts; and (5) the applicant's transmission system is
essentially radial in nature and primarily used for distribution to
its member-owners.
\35\ 5 U.S.C. 605(b).
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VII. Comment Procedures
58. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due July 1, 2005. Comments must refer to
Docket No. RM05-5-000, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments. Comments may be filed either in electronic or paper format.
59. Comments may be filed electronically via the eFiling link on
the Commission's Web site at https://www.ferc.gov . The Commission
accepts most standard word processing formats and commenters may attach
additional files with supporting information in certain other file
formats. Commenters filing electronically do not need to make a paper
filing. Commenters that are not able to file comments electronically
must send an original and 14 copies of their comments to: Federal
Energy Regulatory Commission, Office of the Secretary, 888 First Street
NE., Washington, DC, 20426.
60. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VIII. Document Availability
61. 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 FERC's Home Page (https://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
[[Page 28230]]
Street, NE., Room 2A, Washington, DC 20426.
62. From FERC's Home Page on the Internet, this information is
available in the eLibrary. The full text of this document is available
in the eLibrary both 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.
63. User assistance is available for eLibrary and the FERC's Web
site during our normal business hours. For assistance contact FERC
Online Support at FERCOnlineSupport@ferc.gov or toll-free at (866) 208-
3676, or for TTY, contact (202) 502-8659.
List of Subjects
18 CFR Part 35
Electric utilities, Incorporation by reference, Reporting and
recordkeeping requirements.
18 CFR Part 37
Conflict of interests, Electric utilities, Reporting and
recordkeeping requirements.
18 CFR Part 38
Conflict of interests, Electric power plants, Electric utilities,
Incorporation by reference, Reporting and recordkeeping requirements.
By direction of the Commission.
Magalie R. Salas,
Secretary.
In consideration of the foregoing, the Commission proposes to amend
Chapter I, Title 18, Code of Federal Regulations, as follows.
PART 35--FILING OF RATE SCHEDULES AND TARIFFS
1. The authority citation for part 35 continues to read as follows:
Authority: 16 U.S.C. 791a-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
2. In Sec. 35.28, add paragraph (c)(1)(vi) to read as follows:
Sec. 35.28 Non-discriminatory open access transmission tariff.
* * * * *
(c) * * *
(1) * * *
(vi) Each public utility's open access transmission tariff must
include the standards incorporated by reference in part 38 of this
chapter.
* * * * *
PART 37--OPEN ACCESS SAME-TIME INFORMATION SYSTEMS
3. The authority citation for part 37 continues to read as follows:
Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
4. In Sec. 37.5, paragraph (b) is revised to read as follows:
Sec. 37.5 Obligations of transmission providers and responsible
parties.
* * * * *
(b) A Responsible Party must provide access to an OASIS providing
standardized information relevant to the availability of transmission
capacity, prices, and other information (as described in this part)
pertaining to the transmission system for which it is responsible.
* * * * *
5. Part 38 is added to read as follows:
PART 38--BUSINESS PRACTICE STANDARDS AND COMMUNICATION PROTOCOLS
FOR PUBLIC UTILITIES
Authority: 16 U.S.C. 791-825r, 2601-2645; 31 U.S.C. 9701; 42
U.S.C. 7101-7352.
Sec.
38.1 Applicability.
38.2 Incorporation by reference of North American Energy Standards
Board Wholesale Electric Quadrant standards.
Sec. 38.1 Applicability.
This part applies to any public utility that owns, operates, or
controls facilities used for the transmission o
