Standards for Business Practices and Communication Protocols for Public Utilities, 8318-8323 [E7-3232]

Download as PDF 8318 Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Proposed Rules hsrobinson on PROD1PC76 with PROPOSALS examine, monitor, and assess utility and pipeline rates to ensure that they do not pay excessive or unduly discriminatory rates. 15. In light of the comments received, both orally and written, during OE’s review of Forms 1 and 2, and in light of the complaints set for hearing in National Fuel and Panhandle and the importance of the questions they raise, the Commission believes it is appropriate to solicit comments on these matters. Although the informal meetings held as a result of OE’s outreach efforts focused on Forms 1 and 2, this Notice of Inquiry (NOI) solicits comments on the need for changes to any and all of the Financial Forms filed with the Commission, i.e., Form 6 and quarterly submissions, Forms 3-Q and 6Q. The Commission is aware that not all participants in the informal review had an opportunity to submit written comments or to respond to comments submitted by other parties. This NOI gives those entities, and all other interested persons, the opportunity to comment formally with the Commission on any of the issues raised herein. The list is not exhaustive. Those responding to this NOI should feel free to raise any other questions or to make any comments which will aid the Commission in assessing its Financial Forms. After receipt of comments in response to this NOI, the Commission will determine whether it is appropriate to propose changes to the financial forms in the context of a formal rulemaking. V. Questions 16. The Commission asks that interested persons respond to the following general questions. (1) Do the annual and quarterly Financial Forms provide sufficient data for the public to permit an evaluation of the filers’ jurisdictional rates? (2) If not, what additional data is needed to conduct such an evaluation? Please specify the form (or forms) to which your suggestions pertain. (3) Do the financial reports provide sufficient data to the public to determine revenues attributable to the sale of excess fuel retention? If not, what additional data is needed to conduct such an evaluation? (4) Is the information included in the financial reports sufficient to audit formulaic rates? (5) Should the Commission require reporting of information on demand response initiatives (interruptible, load control, etc.), including demand and peak demand impacts, associated costs and savings, and the number of advanced meters installed? VerDate Aug<31>2005 16:00 Feb 23, 2007 Jkt 211001 (6) Please explain how this additional data will be useful to users of the Financial Forms. (7) How burdensome would any requirement for additional information be to filers of Financial Forms? (8) Are there specific reporting requirements that are no longer necessary or unduly burdensome that should be deleted? (9) What technical revisions, if any, need to be made to the Financial Forms? For example, identify any suggested changes in instructions, desirable software upgrades, and whether there are errors embedded in the forms which need to be corrected. (10) Should the Commission require electric utilities, licensees and interstate natural gas and oil pipeline companies to provide notification when their total sales or transactions fall below the minimum thresholds established in the Commission’s regulations such that they are no longer subject to these filing requirements? (11) Should the Commission require a showing of good cause before granting an extension of time in which to file the required forms? (12) Are these concerns of sufficient importance to warrant a rulemaking and, if so, what rules should the Commission promulgate? Commenters are encouraged to be as specific as possible. VI. Comment Procedures 16. The Commission invites interested persons to submit comments on these matters and any related matters or alternative proposals that commenters may wish to discuss. Comments are due March 28, 2007 and reply comments are due April 27, 2007. Comments and reply comments must refer to Docket No. RM07–9–000 and must include the commenter’s name, the organization he or she represents, if applicable, and his or her address. 17. 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. 18. Commenters that are not able to file comments electronically must send an original and 14 copies of their comments to: The Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street, NE., Washington, DC 20426. 19. All comments will be placed in the Commission’s public files and may PO 00000 Frm 00026 Fmt 4702 Sfmt 4702 be viewed, printed, or downloaded remotely as described in the Document Availability section below. Commenters on this NOPR are not required to serve copies of their comments on other commenters. VII. Document Availability 20. 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 Street, NE., Room 2A, Washington, DC 20426. 21. From the Commission’s Home Page on the Internet, this information is available in its 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 of this document, excluding the last three digits, in the docket number field. 22. User assistance is available for eLibrary and FERC’s Web site during normal business hours from our Help line at (202) 502–8222 or the Public Reference Room at public.reference@ferc.gov. By direction of the Commission. Magalie R. Salas, Secretary. [FR Doc. E7–3233 Filed 2–23–07; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission 18 CFR Part 38 [Docket No. RM05–5–003] Standards for Business Practices and Communication Protocols for Public Utilities Issued February 20, 2007. Federal Energy Regulatory Commission, DOE. ACTION: Notice of proposed rulemaking. AGENCY: SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes to incorporate by reference in its regulations revisions to the Coordinate Interchange business practice standards (WEQ–004) adopted by the Wholesale Electric Quadrant E:\FR\FM\26FEP1.SGM 26FEP1 hsrobinson on PROD1PC76 with PROPOSALS Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Proposed Rules (WEQ) of the North American Energy Standards Board (NAESB). These standards identify the processes and communications necessary to coordinate energy transfers that cross boundaries between entities responsible for balancing load and generation. Through this rulemaking, the Commission seeks to ensure that the Coordinate Interchange business practices standards that the Commission incorporates by reference in its regulations function compatibly with the North American Electric Reliability Council’s proposed Version 1 and 2 INT reliability standards, currently under review in Docket No. RM06–16–000, in the event that the Commission approves such standards. DATES: Comments on the proposed rule are due March 28, 2007. ADDRESSES: You may submit comments identified by Docket No. RM05–5–003, by one of the following methods: • Agency Web Site: https://ferc.gov. Follow the instructions for submitting comments via the eFiling link found in the Comment Procedures Section of the preamble. • Mail: Commenters unable to file comments electronically must mail or hand deliver an original and 14 copies of their comments to the Federal Energy Regulatory Commission, Secretary of the Commission, 888 First Street, NE., Washington, DC 20426. Please refer to the Comment Procedures Section of the preamble for additional information on how to file paper comments. FOR FURTHER INFORMATION CONTACT: Patricia Schaub (technical issues), Office of Energy Markets and Reliability, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 502– 6816. 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 1 to incorporate by reference a revised version of the Coordinate Interchange Standards (designated as WEQ–004) adopted by the Wholesale Electric Quadrant (WEQ) of the North American Energy Standards Board (NAESB) on June 22, 2006, and filed with the Commission on November 16, 2006. These revised standards would replace the Coordinate Interchange business practice standards that the 1 16 U.S.C. 791a, et seq. VerDate Aug<31>2005 16:00 Feb 23, 2007 Jkt 211001 Commission previously incorporated by reference into its regulations in a prior rulemaking.2 The WEQ’s Coordinate Interchange standards identify the processes and communications necessary to coordinate energy transfers crossing boundaries between entities responsible for balancing load and generation (Interchange). 2. The revised Coordinate Interchange business practice standards that the Commission proposes to incorporate by reference in this notice of proposed rulemaking (NOPR) are intended to complement revisions to the Interchange Scheduling and Coordination group of INT reliability standards, dealing with the interchange of energy (INT reliability standards), that the North American Electric Reliability Council (NERC) has proposed and that are currently under consideration in the rulemaking proceeding in Docket No. RM06–16– 000.3 In this NOPR, the Commission proposes to amend part 38 of its regulations to incorporate by reference the WEQ’s revisions to the Coordinate Interchange business practice standards to ensure that they remain consistent with the applicable NERC INT reliability standards. Thus, the Commission proposes that the effective date of the revised WEQ Coordinate Interchange standards be no earlier than the effective date of the corresponding NERC INT reliability standards. Background 3. NAESB is a non-profit standards development organization established in January 2002 that serves as an industry forum for the development and promotion of business practice standards that promote a seamless marketplace for wholesale and retail natural gas and electricity. Since 1995, NAESB and its predecessor, the Gas Industry Standards Board, have been accredited members of the American National Standards Institute (ANSI), complying with ANSI’s requirements that its standards reflect a consensus of the affected industries. 4. NAESB’s standards include business practices that streamline the transactional processes of the natural gas and electric industries, as well as communication protocols and related standards designed to improve the 2 Standards for Business Practices and Communication Protocols for Public Utilities, Order No. 676, 71 FR 26199 (May 4, 2006), FERC Stats. & Regs., Regulations Preambles ¶ 31,216 (Apr. 25, 2006), reh’g denied, Order No. 676–A, 116 FERC ¶ 61,255 (2006). 3 See Mandatory Reliability Standards for the Bulk-Power System, 71 FR 64770 (Nov. 3, 2006), FERC Stats. & Regs. ¶ 32,608 at P 427–496 (Oct. 20, 2006) (Reliability NOPR). PO 00000 Frm 00027 Fmt 4702 Sfmt 4702 8319 efficiency of communication within each industry. NAESB supports all four quadrants of the gas and electric industries—wholesale gas, wholesale electric, retail gas, and retail electric. All participants in the gas and electric industries are eligible to join NAESB and participate in standards development. 5. NAESB’s procedures are designed to ensure that all industry members can have input into the development of a standard, whether or not they are members of NAESB, and each standard NAESB adopts is supported by a consensus of the relevant industry segments. 6. In Order No. 676, the Commission not only adopted business practice standards and communication protocols for the wholesale electric industry, it also established a formal ongoing process for reviewing and upgrading the Commission’s Open Access Same-Time Information Systems (OASIS) standards and other wholesale electric industry business practice standards. In addition, the Commission incorporated by reference NAESB standards designed to coordinate business practices with reliability standards approved by the Commission under section 215 of the Federal Power Act (FPA). 7. On April 4, 2006, as modified on August 28, 2006, NERC filed 107 proposed reliability standards with the Commission for approval under section 215 of the FPA, including Version 1 INT reliability standards. On October 20, 2006, in Docket No. RM06–16–000, the Commission issued a notice of proposed rulemaking (i.e., the Reliability NOPR) proposing to approve 83 of NERC’s 107 proposed reliability standards, including its INT reliability standards.4 The Reliability NOPR also explained that NERC would be submitting revised versions of some of these standards in November of 2006. On November 15, 2006, NERC filed revised proposed reliability standards including revised INT reliability standards INT–001–2 (Interchange Information) and INT–003– 2 (Interchange Transaction Information). Final action on the Reliability NOPR is currently pending. In addition, as the Commission noted in the Reliability NOPR, NERC removed certain standards from its proposed reliability standards because they actually were business practice standards that would be addressed by NAESB.5 8. The WEQ revised its Coordinate Interchange standards to support NERC’s Version 1 INT reliability standards. On June 22, 2006, the WEQ 4 See Reliability NOPR at P 427–496. NOPR at P 439 and P 452. 5 Reliability E:\FR\FM\26FEP1.SGM 26FEP1 8320 Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Proposed Rules membership ratified the revisions to the Coordinate Interchange standards. On November 16, 2006, NAESB filed the revised Coordinate Interchange standards with the Commission for appropriate action. On February 5, 2007, NAESB filed a report in this docket that describes how their proposed Coordinate Interchange business practice standards map to NERC’s INT reliability standards. 9. The revised Coordinate Interchange business practice standards (WEQ–004) facilitate the transfer of electric energy between entities responsible for balancing load and generation (Balancing Authorities). The term ‘‘Interchange’’ in this context refers to energy transfers across boundaries between Balancing Authorities. The Coordinate Interchange business practice standards identify the processes needed to facilitate interchange transactions, and specify the arrangements and data to be communicated to the entity responsible for authorizing implementation of interchange transactions (Interchange Authority). 10. The WEQ adopted revisions to its Coordinate Interchange business practice standards for three main reasons: (1) To incorporate business practice standards that had previously been included by NERC in its proposed reliability standards; (2) to modify the definitions and standards to better integrate with NERC’s corresponding reliability standards; and (3) to eliminate an appendix and update standards to reflect current operating conditions in the Eastern and Western Interconnections, and within the Electric Reliability Council of Texas (ERCOT). hsrobinson on PROD1PC76 with PROPOSALS Standards Previously Included by NERC in Its Reliability Standards 11. The Reliability NOPR noted that NERC deleted certain requirements previously included in its proposed reliability standards with the expectation that NAESB would include them in its business practice standards. The deleted NERC standards include Requirements R1.1, R3, R4, and R5 of INT–001–0, which relate to the timing and content of e-tags, and Requirement R1.1.3 of INT–003–0, which addresses ramp starting time and duration. 12. The revised Coordinate Interchange business practice standards the WEQ adopted to replace the deleted NERC standards include: • WEQ Standards 004–1, and 004–3.1 replace NERC INT–001–0 Requirement R1.1. The revised WEQ standards address how requests for Interchange VerDate Aug<31>2005 16:00 Feb 23, 2007 Jkt 211001 should be made and who is responsible for submitting such requests. • WEQ Standards 004–3, 004–5, 004– 8.1, and 004–8.2 replace NERC’s INT– 001–0 Requirement R3. These standards establish the timing requirements for submitting requests for Interchange. The WEQ’s timing table (Appendix D referenced in WEQ Standard 004–8.1) has been revised to better match up with the timing table in NERC’s INT–005–1. • WEQ Standard 004–5 replaces NERC’s INT–001–0 Requirement R4. This standard addresses the data that should be included in a request for Interchange and who is responsible for ensuring that these data are included in the request for Interchange. • WEQ Standard 004–12 replaces NERC’s INT–001–0 Requirement R5. This standard requires that parties involved in an Interchange must have personnel and facilities on site and immediately available to receive notification of changes to the Interchange. • WEQ Standards 004–17, 004–17.1, and 004–17.2 replace NERC’s INT–003– 0 Requirement R1.1.3. These standards establish the default ramp rates that apply to an Interchange unless otherwise agreed to by the parties involved. Changes To Better Conform With NERC’s Proposed INT Reliability Standards 13. The WEQ also modified the Coordinate Interchange definitions and business practice standards to better coordinate with NERC’s INT reliability standards. This follows the Commission’s directive in Order No. 676 that, ‘‘[i]n future versions of the standards, NAESB should use the NERC definitions relating to reliability.’’ 6 The modifications include: • New and revised definitions, such as changing Reliability Authority to Reliability Coordinator. • Changes to definitions resulting from WEQ’s efforts to match the language used in NERC’s ‘‘Glossary of Terms Used in Reliability Standards’’ (Glossary) where appropriate. For example, the WEQ added a definition for ‘‘Arranged Interchange’’ using the same language as NERC. • Changes to definitions, such as the ‘‘Request for Interchange’’ definition, where the words are not identical, but are compatible with NERC’s, facilitating coordination with the NERC INT reliability standards but reflecting the different responsibilities of the two organizations. 6 Order PO 00000 No. 676 at P 40. Frm 00028 Fmt 4702 Sfmt 4702 • Changes to definitions, where NERC does not have a corresponding definition in its Glossary, but the WEQ modified its definitions, such as the ‘‘Approval Entity’’ definition, to reflect the definition changes previously discussed. • Changes to delete definitions no longer needed in the Coordinate Interchange business practice standards or that had been replaced by other definitions. Deleted definitions include: Checkout Process; Interchange Transaction; Interchange Transaction Tag; Interconnection; Market Operator; Scheduling Agent; and Transmission Service Provider. • Changes to the Coordinate Interchange business practice standards made to better coordinate with NERC’s INT reliability standards. The standards were modified to: (1) Incorporate the revised definitions; (2) provide greater detail, as in WEQ Standard 004–3; (3) add new standards to clarify and better coordinate with NERC, such as in WEQ Standard 004–2.2; and (4) delete standards that are no longer appropriate, such as WEQ Standard 004–1.2. Changes To Reflect Current Business Practices of the Eastern and Western Interconnections and ERCOT 14. The Coordinate Interchange business practices standards were also modified to reflect the current business practices of the Eastern and Western Interconnections and ERCOT. Language previously included in Appendix A was moved to Coordinate Interchange business practice standards 004–3, 004– 3.1, and 004–8.2. Discussion 15. In this NOPR, we propose to incorporate by reference the WEQ’s revised Coordinate Interchange standards in part 38 of the Commission’s regulations to coordinate with the consideration already under way in Docket No. RM06–16–000 of the complementary NERC INT reliability standards.7 Adoption of revised business practice standards is intended to be coordinated with the adoption of the complementary reliability standards to ensure that public utilities comply with a consistent set of standards. To ensure that the NAESB and NERC standards remain consistent, we propose that the effective date of these standards be no earlier than the effective date of the NERC standards if, and 7 The revised WEQ business practice standards we are proposing to incorporate by reference in this NOPR are the standards for Coordinate Interchange (WEQ–004, June 22, 2006) including Purpose, Applicability, and Standards 004–0 through 004– 17.2 and 004–A through 004–D. E:\FR\FM\26FEP1.SGM 26FEP1 8321 Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Proposed Rules when, they are approved by the Commission. 16. We are pleased that NAESB and NERC have been able to work together to separate out business and reliability decisions and to generally coordinate their adoption of standards. In the Reliability NOPR, the Commission urged NERC and NAESB to coordinate their filing of standards. We stated: In the future, to ensure that there is not a gap in Reliability Standards or business practices, the Commission expects filings from NERC and NAESB to be coordinated to allow for the seamless transfer of Requirements from Reliability Standards to Business Practices.8 In this instance, although the adoption of the standards was coordinated, the filing of notification to the Commission was not as coordinated as we would like it to be. In the future, we expect that NAESB and NERC will coordinate their submittals of any subsequent revisions to their respective interrelated standards and that each filing will reference its counterparts, to help assure coordinated implementation of future standards. We appreciate the supplemental information NAESB filed on February 5, 2007, and request that NERC and NAESB include in their filings the details showing how their respective standards relate to each other. 17. NAESB’s standards correspond to NERC’s Version 1 INT reliability standards. On November 15, 2006, NERC filed updated INT reliability standards (NERC’s Version 2 INT reliability standards) with the Commission in Docket No. RM06–16– 000. Review of the changes made to the Version 2 standards does not indicate that the WEQ would need to make any additional modifications to its Coordinate Interchange standards. We invite comments on whether NERC’s Version 2 INT reliability standards necessitate any additional standards beyond those included in the WEQ’s Coordinate Interchange business practice standards. 18. The Commission is not proposing in this rulemaking that public utilities make tariff filings to include the revised Coordinate Interchange standards in their tariffs. Instead, we propose that, when the WEQ next updates its wholesale electric standards, if the Commission decides to incorporate this next standard version into its regulations, public utilities will then be required to include these standards in their tariffs. Notice of Use of Voluntary Consensus Standards 19. The NAESB WEQ approved the revised Coordinate Interchange standards under NAESB’s consensus procedures.9 As the Commission found in Order No. 676, adoption of consensus standards is appropriate because the consensus process helps ensure the reasonableness of the standards by requiring that the standards draw support from a broad spectrum of all segments of the industry. Moreover, 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. In section 12(d) of the National Technology Transfer and Advancement Act of 1995, Congress Number of respondents Data collection affirmatively requires federal agencies to use technical standards developed by voluntary consensus standards organizations, like NAESB, as means to carry out policy objectives or activities.10 20. 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 a voluntary consensus standard developed by the WEQ. Information Collection Statement 21. The following collection of information contained in this proposed rule has 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 estimate is based on the projected costs for the industry to implement revisions to the WEQ’s Coordinate Interchange standards (WEQ–004). Number of responses per respondent Hours per response Total number of hours FERC–717 ....................................................................................................... 220 1 8 1760 Totals ........................................................................................................ ........................ ........................ ........................ 1760 Information Collection Costs: The Commission seeks comments on the costs to comply with these Total Annual Hours for Collection (Reporting and Recordkeeping, (if appropriate)) = 1760. requirements. It has projected the average annualized cost for all respondents to be the following: 11 FERC–717 hsrobinson on PROD1PC76 with PROPOSALS Annualized Capital/Startup Costs .................................................................................................................................................... Annualized Costs (Operations & Maintenance) .............................................................................................................................. 8 Reliability NOPR at P 439. 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 9 Under VerDate Aug<31>2005 16:00 Feb 23, 2007 Jkt 211001 serving entities, and end users. For final approval, 67 percent of the WEQ’s general membership must ratify the standards. 10 Pub L. 104–113, § 12(d), 110 Stat. 775 (1996), 15 U.S.C. 272 note (1997). PO 00000 Frm 00029 Fmt 4702 Sfmt 4702 $264,000 N/A 11 The total annualized costs for the information collection is $264,000. This number is reached by multiplying the total hours to prepare responses (1760 hours) by an hourly wage estimate of $150 (a composite estimate that includes legal, technical and support staff rates, $90 + $35 + $25). $264,000 = $150 × 1760. E:\FR\FM\26FEP1.SGM 26FEP1 8322 Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Proposed Rules FERC–717 hsrobinson on PROD1PC76 with PROPOSALS Total Annualized Costs ............................................................................................................................................................ 22. OMB regulations 12 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: Standards for Business Practices and Communication Protocols for Public Utilities (FERC–717) (formerly Open Access Same Time Information System). Action: Proposed collection. OMB Control No.: 1902–0173. Respondents: Business or other for profit, (Public Utilities—Not applicable to small businesses). Frequency of Responses: One-time implementation (business procedures, capital/start-up). Necessity of the Information: This proposed rule, if implemented would upgrade the Commission’s business practice and communication protocols (methods by which computers coordinate their communications) governing Coordinate Interchange transactions to complement revisions to the NERC INT reliability standards under consideration in the rulemaking proceeding in Docket No. RM06–16– 000. The implementation of these standards and regulations is necessary to increase the efficiency of the wholesale electric power grid. The standards being adopted define procedures for market participants to request the implementation of Interchange Transactions or agreements to transfer energy from a seller to a buyer that crosses one or more Balancing Authority boundaries. 23. The information collection requirements of this proposed rule are based on the transition from transactions being made under the Commission’s existing business practice standard governing Coordinate Interchange transactions to conducting such transactions under the proposed revision to the Coordinate Interchange standards (WEQ–004). Our preliminary view, subject to our review of any comments that are filed on this NOPR proposal, is that the Commission’s incorporation by reference of these revised standards will keep these WEQ business practice standards consistent with the NERC INT reliability standards. 24. Internal Review: The Commission has reviewed the revised business practice standards and has made a 12 5 CFR 1320.11. VerDate Aug<31>2005 16:00 Feb 23, 2007 Jkt 211001 preliminary determination that the proposed revisions are necessary to maintain consistency between the business practice standards and reliability standards on this subject. The Commission has assured itself, by means of its internal review, that there is specific, objective support for the burden estimate associated with the information requirements. 25. 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, E-mail: michael.miller@ferc.gov. 26. 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]. Environmental Analysis 27. 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.13 The Commission has categorically excluded certain actions from these requirements as not having a significant effect on the human environment.14 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.15 Therefore, an environmental assessment is unnecessary and has not been prepared in this NOPR. Regulatory Flexibility Act Certification 28. The Regulatory Flexibility Act of 1980 (RFA) 16 generally requires a 13 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). 14 18 CFR 380.4. 15 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27). 16 5 U.S.C. 601–612. PO 00000 Frm 00030 Fmt 4702 Sfmt 4702 264,000 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. 29. 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. This is consistent with the exemption provisions of the RFA. Accordingly, pursuant to section 605(b) of the RFA,17 the Commission hereby certifies that the regulations proposed herein will not have a significant adverse impact on a substantial number of small entities. Comment Procedures 30. 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 March 28, 2007. Comments must refer to Docket No. RM05–5–003, and must include the commenter’s name, the organization they represent, if applicable, and their address. Comments may be filed either in electronic or paper format. 31. Comments may be filed electronically via the eFiling link on the Commission’s Web site at https:// www.ferc.gov. The Commission accepts 17 5 E:\FR\FM\26FEP1.SGM U.S.C. 605(b). 26FEP1 Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Proposed Rules 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, Secretary of the Commission, 888 First Street, NE., Washington, DC 20426. 32. 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. PART 38—BUSINESS PRACTICE STANDARDS AND COMMUNICATION PROTOCOLS FOR PUBLIC UTILITIES 1. The authority citation for part 38 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. 2. In § 38.2, paragraph (a)(4) is revised to read as follows: § 38.2 Incorporation by reference of North American Energy Standards Board Wholesale Electric Quadrant standards. (a) * * * (4) Coordinate Interchange (WEQ– 004, June 22, 2006); * * * * * [FR Doc. E7–3232 Filed 2–23–07; 8:45 am] BILLING CODE 6717–01–P Document Availability 33. 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 Street, NE., Room 2A, Washington, DC 20426. 34. 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.18 35. 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. List of Subjects in 18 CFR Part 38 Conflict of interests, Electric power plants, Electric utilities, Incorporation by reference, Reporting and recordkeeping requirements. hsrobinson on PROD1PC76 with PROPOSALS By direction of the Commission. Magalie R. Salas, Secretary. In consideration of the foregoing, the Commission proposes to amend Chapter I, Title 18, part 38 of the Code of Federal Regulations, as follows: 18 NAESB’s November 16, 2006 submittal is also available for viewing in eLibrary. The link to this file is as follows: https://elibrary.ferc.gov/idmws/ nvcommon/NVViewer.asp?Doc=11182760:0. VerDate Aug<31>2005 16:00 Feb 23, 2007 Jkt 211001 DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 100 [CGD05–07–009] RIN 1625–AA08 Special Local Regulations for Marine Events; Martin Lagoon, Middle River, MD Coast Guard, DHS. Notice of proposed rulemaking. AGENCY: ACTION: The Coast Guard proposes to establish temporary special local regulations for the ‘‘Baltimore County Community Waterfront Festival’’, an event to be held May 12, 2007 at Martin Lagoon, Middle River, Maryland. These special local regulations are necessary to provide for the safety of life on navigable waters during the event. This action is intended to temporarily restrict vessel traffic in a portion of the Middle River waterfront to accommodate watercraft static displays, fire-rescue demonstrations and a fireworks display. DATES: Comments and related material must reach the Coast Guard on or before March 28, 2007. ADDRESSES: You may mail comments and related material to Commander (dpi), Fifth Coast Guard District, 431 Crawford Street, Portsmouth, Virginia 23704–5004, hand-deliver them to Room 415 at the same address between 9 a.m. and 2 p.m., Monday through Friday, except Federal holidays, fax them to (757) 391–8149, or e-mail them to Dennis.M.Sens@uscg.mil. The Inspections and Investigations Branch, Fifth Coast Guard District, maintains the SUMMARY: PO 00000 Frm 00031 Fmt 4702 Sfmt 4702 8323 public docket for this rulemaking. Comments and material received from the public, as well as documents indicated in this preamble as being available in the docket, will become part of this docket and will be available for inspection or copying at the above address between 9 a.m. and 2 p.m., Monday through Friday, except Federal holidays. D. M. Sens, Project Manager, Inspections and Investigations Branch, at (757) 398– 6204. FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: Request for Comments We encourage you to participate in this rulemaking by submitting comments and related material. If you do so, please include your name and address, identify the docket number for this rulemaking (CGD05–07–009), indicate the specific section of this document to which each comment applies, and give the reason for each comment. Please submit all comments and related material in an unbound format, no larger than 8 1⁄2 by 11 inches, suitable for copying. If you would like to know they reached us, please enclose a stamped, self-addressed postcard or envelope. We will consider all comments and material received during the comment period. We may change this proposed rule in view of them. Public Meeting We do not now plan to hold a public meeting. But you may submit a request for a meeting by writing to the address listed under ADDRESSES explaining why one would be beneficial. If we determine that one would aid this rulemaking, we will hold one at a time and place announced by a later notice in the Federal Register. Background and Purpose On May 12, 2007, Baltimore County plans to sponsor the ‘‘Baltimore County Community Waterfront Festival’’. Various watercraft static displays and fire-rescue demonstrations would be staged within Martin Lagoon. The fireworks display would be launched from Wilson Point Park but the hazardous fallout area will extend over Martin Lagoon. A fleet of spectator vessels is expected to gather near the event site to view the fireworks display. Due to the need for vessel control during the proposed event, vessel traffic will be temporarily restricted to provide for the safety of participants, spectators and transiting vessels. E:\FR\FM\26FEP1.SGM 26FEP1

Agencies

[Federal Register Volume 72, Number 37 (Monday, February 26, 2007)]
[Proposed Rules]
[Pages 8318-8323]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3232]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 38

[Docket No. RM05-5-003]

Standards for Business Practices and Communication Protocols for
Public Utilities

Issued February 20, 2007.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) proposes
to incorporate by reference in its regulations revisions to the
Coordinate Interchange business practice standards (WEQ-004) adopted by
the Wholesale Electric Quadrant

[[Page 8319]]

(WEQ) of the North American Energy Standards Board (NAESB). These
standards identify the processes and communications necessary to
coordinate energy transfers that cross boundaries between entities
responsible for balancing load and generation. Through this rulemaking,
the Commission seeks to ensure that the Coordinate Interchange business
practices standards that the Commission incorporates by reference in
its regulations function compatibly with the North American Electric
Reliability Council's proposed Version 1 and 2 INT reliability
standards, currently under review in Docket No. RM06-16-000, in the
event that the Commission approves such standards.

DATES: Comments on the proposed rule are due March 28, 2007.

ADDRESSES: You may submit comments identified by Docket No. RM05-5-003,
by one of the following methods:
Agency Web Site: https://ferc.gov. Follow the instructions
for submitting comments via the eFiling link found in the Comment
Procedures Section of the preamble.
Mail: Commenters unable to file comments electronically
must mail or hand deliver an original and 14 copies of their comments
to the Federal Energy Regulatory Commission, Secretary of the
Commission, 888 First Street, NE., Washington, DC 20426. Please refer
to the Comment Procedures Section of the preamble for additional
information on how to file paper comments.

FOR FURTHER INFORMATION CONTACT:

Patricia Schaub (technical issues), Office of Energy Markets and
Reliability, Federal Energy Regulatory Commission, 888 First Street,
NE., Washington, DC 20426, (202) 502-6816.
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 \1\ to incorporate
by reference a revised version of the Coordinate Interchange Standards
(designated as WEQ-004) adopted by the Wholesale Electric Quadrant
(WEQ) of the North American Energy Standards Board (NAESB) on June 22,
2006, and filed with the Commission on November 16, 2006. These revised
standards would replace the Coordinate Interchange business practice
standards that the Commission previously incorporated by reference into
its regulations in a prior rulemaking.\2\ The WEQ's Coordinate
Interchange standards identify the processes and communications
necessary to coordinate energy transfers crossing boundaries between
entities responsible for balancing load and generation (Interchange).
---------------------------------------------------------------------------

\1\ 16 U.S.C. 791a, et seq.
\2\ Standards for Business Practices and Communication Protocols
for Public Utilities, Order No. 676, 71 FR 26199 (May 4, 2006), FERC
Stats. & Regs., Regulations Preambles ] 31,216 (Apr. 25, 2006),
reh'g denied, Order No. 676-A, 116 FERC ] 61,255 (2006).
---------------------------------------------------------------------------

2. The revised Coordinate Interchange business practice standards
that the Commission proposes to incorporate by reference in this notice
of proposed rulemaking (NOPR) are intended to complement revisions to
the Interchange Scheduling and Coordination group of INT reliability
standards, dealing with the interchange of energy (INT reliability
standards), that the North American Electric Reliability Council (NERC)
has proposed and that are currently under consideration in the
rulemaking proceeding in Docket No. RM06-16-000.\3\ In this NOPR, the
Commission proposes to amend part 38 of its regulations to incorporate
by reference the WEQ's revisions to the Coordinate Interchange business
practice standards to ensure that they remain consistent with the
applicable NERC INT reliability standards. Thus, the Commission
proposes that the effective date of the revised WEQ Coordinate
Interchange standards be no earlier than the effective date of the
corresponding NERC INT reliability standards.
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\3\ See Mandatory Reliability Standards for the Bulk-Power
System, 71 FR 64770 (Nov. 3, 2006), FERC Stats. & Regs. ] 32,608 at
P 427-496 (Oct. 20, 2006) (Reliability NOPR).
---------------------------------------------------------------------------

Background

3. NAESB is a non-profit standards development organization
established in January 2002 that serves as an industry forum for the
development and promotion of business practice standards that promote a
seamless marketplace for wholesale and retail natural gas and
electricity. Since 1995, NAESB and its predecessor, the Gas Industry
Standards Board, have been accredited members of the American National
Standards Institute (ANSI), complying with ANSI's requirements that its
standards reflect a consensus of the affected industries.
4. NAESB's standards include business practices that streamline the
transactional processes of the natural gas and electric industries, as
well as communication protocols and related standards designed to
improve the efficiency of communication within each industry. NAESB
supports all four quadrants of the gas and electric industries--
wholesale gas, wholesale electric, retail gas, and retail electric. All
participants in the gas and electric industries are eligible to join
NAESB and participate in standards development.
5. NAESB's procedures are designed to ensure that all industry
members can have input into the development of a standard, whether or
not they are members of NAESB, and each standard NAESB adopts is
supported by a consensus of the relevant industry segments.
6. In Order No. 676, the Commission not only adopted business
practice standards and communication protocols for the wholesale
electric industry, it also established a formal ongoing process for
reviewing and upgrading the Commission's Open Access Same-Time
Information Systems (OASIS) standards and other wholesale electric
industry business practice standards. In addition, the Commission
incorporated by reference NAESB standards designed to coordinate
business practices with reliability standards approved by the
Commission under section 215 of the Federal Power Act (FPA).
7. On April 4, 2006, as modified on August 28, 2006, NERC filed 107
proposed reliability standards with the Commission for approval under
section 215 of the FPA, including Version 1 INT reliability standards.
On October 20, 2006, in Docket No. RM06-16-000, the Commission issued a
notice of proposed rulemaking (i.e., the Reliability NOPR) proposing to
approve 83 of NERC's 107 proposed reliability standards, including its
INT reliability standards.\4\ The Reliability NOPR also explained that
NERC would be submitting revised versions of some of these standards in
November of 2006. On November 15, 2006, NERC filed revised proposed
reliability standards including revised INT reliability standards INT-
001-2 (Interchange Information) and INT-003-2 (Interchange Transaction
Information). Final action on the Reliability NOPR is currently
pending. In addition, as the Commission noted in the Reliability NOPR,
NERC removed certain standards from its proposed reliability standards
because they actually were business practice standards that would be
addressed by NAESB.\5\
---------------------------------------------------------------------------

\4\ See Reliability NOPR at P 427-496.
\5\ Reliability NOPR at P 439 and P 452.
---------------------------------------------------------------------------

8. The WEQ revised its Coordinate Interchange standards to support
NERC's Version 1 INT reliability standards. On June 22, 2006, the WEQ

[[Page 8320]]

membership ratified the revisions to the Coordinate Interchange
standards. On November 16, 2006, NAESB filed the revised Coordinate
Interchange standards with the Commission for appropriate action. On
February 5, 2007, NAESB filed a report in this docket that describes
how their proposed Coordinate Interchange business practice standards
map to NERC's INT reliability standards.
9. The revised Coordinate Interchange business practice standards
(WEQ-004) facilitate the transfer of electric energy between entities
responsible for balancing load and generation (Balancing Authorities).
The term ``Interchange'' in this context refers to energy transfers
across boundaries between Balancing Authorities. The Coordinate
Interchange business practice standards identify the processes needed
to facilitate interchange transactions, and specify the arrangements
and data to be communicated to the entity responsible for authorizing
implementation of interchange transactions (Interchange Authority).
10. The WEQ adopted revisions to its Coordinate Interchange
business practice standards for three main reasons: (1) To incorporate
business practice standards that had previously been included by NERC
in its proposed reliability standards; (2) to modify the definitions
and standards to better integrate with NERC's corresponding reliability
standards; and (3) to eliminate an appendix and update standards to
reflect current operating conditions in the Eastern and Western
Interconnections, and within the Electric Reliability Council of Texas
(ERCOT).

Standards Previously Included by NERC in Its Reliability Standards

11. The Reliability NOPR noted that NERC deleted certain
requirements previously included in its proposed reliability standards
with the expectation that NAESB would include them in its business
practice standards. The deleted NERC standards include Requirements
R1.1, R3, R4, and R5 of INT-001-0, which relate to the timing and
content of e-tags, and Requirement R1.1.3 of INT-003-0, which addresses
ramp starting time and duration.
12. The revised Coordinate Interchange business practice standards
the WEQ adopted to replace the deleted NERC standards include:
WEQ Standards 004-1, and 004-3.1 replace NERC INT-001-0
Requirement R1.1. The revised WEQ standards address how requests for
Interchange should be made and who is responsible for submitting such
requests.
WEQ Standards 004-3, 004-5, 004-8.1, and 004-8.2 replace
NERC's INT-001-0 Requirement R3. These standards establish the timing
requirements for submitting requests for Interchange. The WEQ's timing
table (Appendix D referenced in WEQ Standard 004-8.1) has been revised
to better match up with the timing table in NERC's INT-005-1.
WEQ Standard 004-5 replaces NERC's INT-001-0 Requirement
R4. This standard addresses the data that should be included in a
request for Interchange and who is responsible for ensuring that these
data are included in the request for Interchange.
WEQ Standard 004-12 replaces NERC's INT-001-0 Requirement
R5. This standard requires that parties involved in an Interchange must
have personnel and facilities on site and immediately available to
receive notification of changes to the Interchange.
WEQ Standards 004-17, 004-17.1, and 004-17.2 replace
NERC's INT-003-0 Requirement R1.1.3. These standards establish the
default ramp rates that apply to an Interchange unless otherwise agreed
to by the parties involved.

Changes To Better Conform With NERC's Proposed INT Reliability
Standards

13. The WEQ also modified the Coordinate Interchange definitions
and business practice standards to better coordinate with NERC's INT
reliability standards. This follows the Commission's directive in Order
No. 676 that, ``[i]n future versions of the standards, NAESB should use
the NERC definitions relating to reliability.'' \6\ The modifications
include:
---------------------------------------------------------------------------

\6\ Order No. 676 at P 40.
---------------------------------------------------------------------------

New and revised definitions, such as changing Reliability
Authority to Reliability Coordinator.
Changes to definitions resulting from WEQ's efforts to
match the language used in NERC's ``Glossary of Terms Used in
Reliability Standards'' (Glossary) where appropriate. For example, the
WEQ added a definition for ``Arranged Interchange'' using the same
language as NERC.
Changes to definitions, such as the ``Request for
Interchange'' definition, where the words are not identical, but are
compatible with NERC's, facilitating coordination with the NERC INT
reliability standards but reflecting the different responsibilities of
the two organizations.
Changes to definitions, where NERC does not have a
corresponding definition in its Glossary, but the WEQ modified its
definitions, such as the ``Approval Entity'' definition, to reflect the
definition changes previously discussed.
Changes to delete definitions no longer needed in the
Coordinate Interchange business practice standards or that had been
replaced by other definitions. Deleted definitions include: Checkout
Process; Interchange Transaction; Interchange Transaction Tag;
Interconnection; Market Operator; Scheduling Agent; and Transmission
Service Provider.
Changes to the Coordinate Interchange business practice
standards made to better coordinate with NERC's INT reliability
standards. The standards were modified to: (1) Incorporate the revised
definitions; (2) provide greater detail, as in WEQ Standard 004-3; (3)
add new standards to clarify and better coordinate with NERC, such as
in WEQ Standard 004-2.2; and (4) delete standards that are no longer
appropriate, such as WEQ Standard 004-1.2.

Changes To Reflect Current Business Practices of the Eastern and
Western Interconnections and ERCOT

14. The Coordinate Interchange business practices standards were
also modified to reflect the current business practices of the Eastern
and Western Interconnections and ERCOT. Language previously included in
Appendix A was moved to Coordinate Interchange business practice
standards 004-3, 004-3.1, and 004-8.2.

Discussion

15. In this NOPR, we propose to incorporate by reference the WEQ's
revised Coordinate Interchange standards in part 38 of the Commission's
regulations to coordinate with the consideration already under way in
Docket No. RM06-16-000 of the complementary NERC INT reliability
standards.\7\ Adoption of revised business practice standards is
intended to be coordinated with the adoption of the complementary
reliability standards to ensure that public utilities comply with a
consistent set of standards. To ensure that the NAESB and NERC
standards remain consistent, we propose that the effective date of
these standards be no earlier than the effective date of the NERC
standards if, and

[[Page 8321]]

when, they are approved by the Commission.
---------------------------------------------------------------------------

\7\ The revised WEQ business practice standards we are proposing
to incorporate by reference in this NOPR are the standards for
Coordinate Interchange (WEQ-004, June 22, 2006) including Purpose,
Applicability, and Standards 004-0 through 004-17.2 and 004-A
through 004-D.
---------------------------------------------------------------------------

16. We are pleased that NAESB and NERC have been able to work
together to separate out business and reliability decisions and to
generally coordinate their adoption of standards. In the Reliability
NOPR, the Commission urged NERC and NAESB to coordinate their filing of
standards. We stated:

In the future, to ensure that there is not a gap in Reliability
Standards or business practices, the Commission expects filings from
NERC and NAESB to be coordinated to allow for the seamless transfer
of Requirements from Reliability Standards to Business Practices.\8\
---------------------------------------------------------------------------

\8\ Reliability NOPR at P 439.

In this instance, although the adoption of the standards was
coordinated, the filing of notification to the Commission was not as
coordinated as we would like it to be. In the future, we expect that
NAESB and NERC will coordinate their submittals of any subsequent
revisions to their respective interrelated standards and that each
filing will reference its counterparts, to help assure coordinated
implementation of future standards. We appreciate the supplemental
information NAESB filed on February 5, 2007, and request that NERC and
NAESB include in their filings the details showing how their respective
standards relate to each other.
17. NAESB's standards correspond to NERC's Version 1 INT
reliability standards. On November 15, 2006, NERC filed updated INT
reliability standards (NERC's Version 2 INT reliability standards) with
the Commission in Docket No. RM06-16-000. Review of the changes made to
the Version 2 standards does not indicate that the WEQ would need to
make any additional modifications to its Coordinate Interchange
standards. We invite comments on whether NERC's Version 2 INT
reliability standards necessitate any additional standards beyond those
included in the WEQ's Coordinate Interchange business practice
standards.
18. The Commission is not proposing in this rulemaking that public
utilities make tariff filings to include the revised Coordinate
Interchange standards in their tariffs. Instead, we propose that, when
the WEQ next updates its wholesale electric standards, if the
Commission decides to incorporate this next standard version into its
regulations, public utilities will then be required to include these
standards in their tariffs.

Notice of Use of Voluntary Consensus Standards

19. The NAESB WEQ approved the revised Coordinate Interchange
standards under NAESB's consensus procedures.\9\ As the Commission
found in Order No. 676, adoption of consensus standards is appropriate
because the consensus process helps ensure the reasonableness of the
standards by requiring that the standards draw support from a broad
spectrum of all segments of the industry. Moreover, 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. 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, as means to carry out policy
objectives or activities.\10\
---------------------------------------------------------------------------

\9\ 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.
\10\ Pub L. 104-113, Sec. 12(d), 110 Stat. 775 (1996), 15
U.S.C. 272 note (1997).
---------------------------------------------------------------------------

20. 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 a voluntary consensus standard
developed by the WEQ.

Information Collection Statement

21. The following collection of information contained in this
proposed rule has 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 estimate is based on the projected costs for the
industry to implement revisions to the WEQ's Coordinate Interchange
standards (WEQ-004).

----------------------------------------------------------------------------------------------------------------
Number of
Data collection Number of responses per Hours per Total number
respondents respondent response of hours
----------------------------------------------------------------------------------------------------------------
FERC-717........................................ 220 1 8 1760
---------------------------------------------------------------
Totals...................................... .............. .............. .............. 1760
----------------------------------------------------------------------------------------------------------------

Total Annual Hours for Collection

(Reporting and Recordkeeping, (if appropriate)) = 1760.
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: \11\
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\11\ The total annualized costs for the information collection
is $264,000. This number is reached by multiplying the total hours
to prepare responses (1760 hours) by an hourly wage estimate of $150
(a composite estimate that includes legal, technical and support
staff rates, $90 + $35 + $25). $264,000 = $150 x 1760.

------------------------------------------------------------------------
FERC-717
------------------------------------------------------------------------
Annualized Capital/Startup Costs...................... $264,000
Annualized Costs (Operations & Maintenance)........... N/A
-----------------

[[Page 8322]]

Total Annualized Costs............................ 264,000
------------------------------------------------------------------------

22. OMB regulations \12\ 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.
---------------------------------------------------------------------------

\12\ 5 CFR 1320.11.
---------------------------------------------------------------------------

Title: Standards for Business Practices and Communication Protocols
for Public Utilities (FERC-717) (formerly Open Access Same Time
Information System).
Action: Proposed collection.
OMB Control No.: 1902-0173.
Respondents: Business or other for profit, (Public Utilities--Not
applicable to small businesses).
Frequency of Responses: One-time implementation (business
procedures, capital/start-up).
Necessity of the Information: This proposed rule, if implemented
would upgrade the Commission's business practice and communication
protocols (methods by which computers coordinate their communications)
governing Coordinate Interchange transactions to complement revisions
to the NERC INT reliability standards under consideration in the
rulemaking proceeding in Docket No. RM06-16-000. The implementation of
these standards and regulations is necessary to increase the efficiency
of the wholesale electric power grid. The standards being adopted
define procedures for market participants to request the implementation
of Interchange Transactions or agreements to transfer energy from a
seller to a buyer that crosses one or more Balancing Authority
boundaries.
23. The information collection requirements of this proposed rule
are based on the transition from transactions being made under the
Commission's existing business practice standard governing Coordinate
Interchange transactions to conducting such transactions under the
proposed revision to the Coordinate Interchange standards (WEQ-004).
Our preliminary view, subject to our review of any comments that are
filed on this NOPR proposal, is that the Commission's incorporation by
reference of these revised standards will keep these WEQ business
practice standards consistent with the NERC INT reliability standards.
24. Internal Review: The Commission has reviewed the revised
business practice standards and has made a preliminary determination
that the proposed revisions are necessary to maintain consistency
between the business practice standards and reliability standards on
this subject. The Commission has assured itself, by means of its
internal review, that there is specific, objective support for the
burden estimate associated with the information requirements.
25. 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, E-mail: michael.miller@ferc.gov.
26. 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].

Environmental Analysis

27. 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.\13\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\14\ 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.\15\ Therefore, an environmental assessment is unnecessary
and has not been prepared in this NOPR.
---------------------------------------------------------------------------

\13\ 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).
\14\ 18 CFR 380.4.
\15\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(27).
---------------------------------------------------------------------------

Regulatory Flexibility Act Certification

28. The Regulatory Flexibility Act of 1980 (RFA) \16\ 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.
---------------------------------------------------------------------------

\16\ 5 U.S.C. 601-612.
---------------------------------------------------------------------------

29. 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. This is consistent with the exemption
provisions of the RFA. Accordingly, pursuant to section 605(b) of the
RFA,\17\ the Commission hereby certifies that the regulations proposed
herein will not have a significant adverse impact on a substantial
number of small entities.
---------------------------------------------------------------------------

\17\ 5 U.S.C. 605(b).
---------------------------------------------------------------------------

Comment Procedures

30. 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 March 28, 2007. Comments must refer to
Docket No. RM05-5-003, and must include the commenter's name, the
organization they represent, if applicable, and their address. Comments
may be filed either in electronic or paper format.
31. Comments may be filed electronically via the eFiling link on
the Commission's Web site at https://www.ferc.gov. The Commission
accepts

[[Page 8323]]

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, Secretary of the Commission, 888 First
Street, NE., Washington, DC 20426.
32. 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.

Document Availability

33. 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 Street, NE., Room 2A, Washington, DC 20426.
34. 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.\18\
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\18\ NAESB's November 16, 2006 submittal is also available for
viewing in eLibrary. The link to this file is as follows: https://
elibrary.ferc.gov/idmws/nvcommon/NVViewer.asp?Doc=11182760:0.
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35. 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 in 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, part 38 of the Code of Federal Regulations, as
follows:

PART 38--BUSINESS PRACTICE STANDARDS AND COMMUNICATION PROTOCOLS
FOR PUBLIC UTILITIES

1. The authority citation for part 38 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.

2. In Sec. 38.2, paragraph (a)(4) is revised to read as follows:

Sec. 38.2 Incorporation by reference of North American Energy
Standards Board Wholesale Electric Quadrant standards.

(a) * * *
(4) Coordinate Interchange (WEQ-004, June 22, 2006);
* * * * *

[FR Doc. E7-3232 Filed 2-23-07; 8:45 am]
BILLING CODE 6717-01-P

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