Revised Filing Requirements for Centralized Service Companies Under the Public Utility Holding Company Act of 2005, the Federal Power Act, and the Natural Gas Act, 68526-68529 [E9-30449]
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Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Rules and Regulations
[FR Doc. E9–30178 Filed 12–24–09; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
18 CFR Parts 366 and 367
[Docket No. RM09–21–000; Order No. 731]
Revised Filing Requirements for
Centralized Service Companies Under
the Public Utility Holding Company Act
of 2005, the Federal Power Act, and the
Natural Gas Act
Issued December 17, 2009.
AGENCY: Federal Energy Regulatory
Commission.
ACTION: Final rule.
SUMMARY: The Federal Energy
Regulatory Commission is revising its
regulations to require every centralized
service company that provides nonpower services to any public utility,
natural gas company, or both, to file
Form No. 60 (Annual Report of
Centralized Service Companies)
annually and abide by the Uniform
System of Accounts, unless exempted or
granted a waiver. This rule provides
greater transparency and will aid the
Commission in fulfilling its regulatory
obligations under the Federal Power Act
and the Natural Gas Act to ensure that
rates are just and reasonable.
DATES: Effective Date: This rule will
become effective January 27, 2010.
FOR FURTHER INFORMATION CONTACT:
Thomas Russo (Technical Information),
Division of Financial Regulation,
Office of Enforcement, Federal Energy
Regulatory Commission, 888 First
Street, NE., Washington, DC
20426,Telephone (202) 502–8792.
Lawrence Greenfield (Legal
Information), Office of the General
Counsel—Energy Markets,Federal
Energy Regulatory Commission, 888
First Street, NE., Washington, DC
20426, Telephone (202) 502–6415.
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:
Before Commissioners: Jon Wellinghoff,
Chairman; Suedeen G. Kelly, Marc
Spitzer, and Philip D. Moeller.
Order No. 731
Final Rule
Issued December 17, 2009.
Table of Contents
Paragraph
Nos.
I. Introduction ...........................................................................................................................................................................................
II. Background ...........................................................................................................................................................................................
III. Discussion ...........................................................................................................................................................................................
A. Comments .....................................................................................................................................................................................
B. Analysis .........................................................................................................................................................................................
C. Filing Date .....................................................................................................................................................................................
IV. Information Collection Statement ......................................................................................................................................................
V. Environmental Analysis ......................................................................................................................................................................
VI. Regulatory Flexibility Act Certification ............................................................................................................................................
VII. Document Availability ......................................................................................................................................................................
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I. Introduction
1. The Federal Energy Regulatory
Commission (Commission) is revising
its regulations at 18 CFR 366.1, 366.23,
367.1 and 367.2 to require every
centralized service company that
provides non-power services to any
public utility, natural gas company, or
both, to file Form No. 60 (Annual Report
of Centralized Service Companies)
annually and abide by the Uniform
System of Accounts, unless exempted or
granted a waiver pursuant to 18 CFR
366.3 or 366.4.1
2. The Commission believes that these
revisions promote transparency and are
consistent with the Commission’s
regulatory obligation to regulate public
utilities under the Federal Power Act
(FPA) 2 and natural gas companies
under the Natural Gas Act (NGA) 3 to
ensure that rates are just and reasonable.
The revisions also better track the
1 We are not adopting any revisions to the
regulatory text of 18 CFR part 368 or 18 CFR 369.1,
because the current text of those regulations already
is consistent with this Final Rule.
2 16 U.S.C. 791a et seq.
3 15 U.S.C. 717 et seq.
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Commission’s intent in prior orders
directing the filing of Form No. 60.
II. Background
3. On September 17, 2009, the
Commission issued a notice of proposed
rulemaking proposing to revise 18 CFR
366.1 and 18 CFR 367.1 to clarify that
‘‘service companies’’ includes entities
providing non-power goods or services
to any public utility or any natural gas
company, or both, in the same holding
company system, and to revise 18 CFR
366.23 and 18 CFR 367.2 to clarify that
every centralized service company that
provides non-power services to a public
utility, a natural gas company, or both,
in the same holding company system,
must file FERC Form No. 60 (Annual
Report of Centralized Service
Companies) annually and must abide by
the Uniform System of Accounts, unless
the holding company is exempted or
granted a waiver pursuant to 18 CFR
366.3 or 366.4.4
4 Revised Filing Requirements for Centralized
Service Companies Under the Public Utility Holding
Company Act of 2005, the Federal Power Act, and
the Natural Gas Act, Notice of Proposed
Rulemaking, 74 FR 48884 (Sep. 25, 2009), FERC
Stats. & Regs. ¶ 32,647 (2009) (Form 60 Notice).
PO 00000
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1
3
7
8
9
13
14
24
25
26
4. In the Form 60 Notice, the
Commission explained that the
Commission intended in Order Nos.
667, 667–A, and 684,5 to require every
centralized service company that
provides non-power services to a public
utility, a natural gas company, or both,
to file Form No. 60 (Annual Report of
Centralized Service Companies)
annually, unless the holding company is
exempted or granted a waiver pursuant
to 18 CFR 366.3 or 366.4.
5. However, as explained in the Form
60 Notice, the codification of this
requirement in the regulatory text did
not make this requirement clear. Thus,
in the Form 60 Notice, the Commission
proposed new language that would
more clearly express this requirement.
5 Repeal of the Public Utility Holding Company
Act of 1935 and Enactment of the Public Utility
Holding Company Act of 2005, Order No. 667,
FERC Stats. & Regs. ¶ 31,197 (2005), order on reh’g,
Order No. 667–A, FERC Stats. & Regs. ¶ 31,213
(2006), order on reh’g, Order No. 667–B, FERC
Stats. & Regs. ¶ 31,224 (2006), order on reh’g, Order
No. 667–C, 118 FERC ¶ 61,133 (2007); Financial
Accounting, Reporting and Records Retention
Requirements Under the Public Utility Holding
Company Act of 2005, Order No. 684, FERC Stats.
& Regs. ¶ 31,229 (2006).
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Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Rules and Regulations
6. In response to the Form 60 Notice,
comments were filed by the American
Public Gas Association (APGA). These
comments, more specifically addressed
below, support the Commission’s
proposals in the Form 60 Notice.
III. Discussion
7. It was our intention in Order Nos.
667, 667–A and 684 that every
centralized service company providing
non-power services either to any public
utility or to any natural gas company (or
to both) in the same holding company
system file Form No. 60 and comply
with the Uniform System of Accounts,
unless the holding company is
exempted or granted a waiver. However,
as explained in the Form 60 Notice, it
has recently come to our attention that,
as currently written, the regulatory text
of 18 CFR 366.1, 366.23, 367.1 and
367.2 could be read to reach a different,
unintended conclusion. Namely, that
centralized service companies providing
non-power services to natural gas
companies would be excluded from the
requirement to file Form No. 60 if the
companies that were part of the holding
company system did not include a
public utility. The proposed revisions to
18 CFR 366.1, 18 CFR 366.23, 18 CFR
367.1 and 18 CFR 367.2 described in the
Form 60 Notice were all designed to
close this inadvertent loophole.6
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A. Comments
8. APGA supports the Commission’s
proposals in the Form 60 Notice. APGA
argues both that the proposed
regulations are consistent with the
Commission’s expressed intention as to
the scope of the filing requirement and
that ‘‘centralized service companies that
provide services to natural gas
companies or both natural gas
companies and public utilities warrant
the same treatment as centralized
service companies that provide services
to just public utilities. In APGA’s view,
this is because the same concerns
regarding transparency (and effective
rate regulation) persist among both
natural gas companies and public
utilities.’’ 7 Thus, APGA supports
revisions to the Commission’s
regulations to make the requirement to
file Form No. 60 clearer and adds that
the ‘‘Commission’s proposal is
consistent with its obligation to ensure
6 See Form 60 Notice, FERC Stats. & Regs.
¶ 32,647 at P 12–17; accord id. P 4–11. We note,
however, that, irrespective of the revisions we are
adopting in this Final Rule, under 18 CFR
366.23(a)(2), any service company in a holding
company system that does not file Form No. 60 is
required to file a narrative description of the
company’s functions during the prior calendar year
(Form No. 61) absent an exemption or waiver.
7 APGA Comments at 2–3.
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10:44 Dec 24, 2009
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just and reasonable rates for public
utilities under the FPA and for natural
gas companies under the NGA.’’ 8
Finally, APGA states that the
Commission possesses the authority to
require centralized service companies to
file FERC Form No. 60, pursuant to the
FPA and NGA, respectively, in addition
to its authority under PUHCA 2005.9
B. Analysis
9. Based on the analysis contained in
the Form 60 Notice and after
consideration of the comments filed in
response to the Form 60 Notice, we are
revising our regulations to clarify that
the FERC Form No. 60 annual filing
requirement, as well as the requirement
to abide by the Uniform System of
Accounts, extends to any centralized
service company that provides nonpower services to any public utility or
any natural gas company, or both, in the
same holding company system, so that
the filing requirements will now
expressly apply to all the entities that
the Commission envisioned covering in
its earlier orders, (i.e., the centralized
service companies that serve public
utilities and natural gas companies
subject to the Commission’s jurisdiction
under the FPA and NGA).
10. Therefore, in this Final Rule, the
Commission is revising 18 CFR 366.1
and 18 CFR 367.1 to clarify that ‘‘service
companies’’ include entities providing
non-power goods or services to any
public utility or any natural gas
company, or both, in the same holding
company system, and to revise 18 CFR
366.23 and 18 CFR 367.2 to clarify that
every centralized service company that
provides non-power services to a public
utility, a natural gas company, or both,
in the same holding company system,
must file FERC Form No. 60 (Annual
Report of Centralized Service
Companies) annually and must abide by
the Uniform System of Accounts, unless
the holding company is exempted or
granted a waiver pursuant to 18 CFR
366.3 or 366.4.
11. The Commission finds that these
revisions will promote transparency and
are consistent with the Commission’s
regulatory obligation to regulate public
utilities under the FPA and natural gas
companies under the NGA to ensure just
and reasonable rates. The revisions also
better track the Commission’s intent in
prior orders directing the filing of FERC
Form No. 60.10
12. In contrast to Order Nos. 667,
667–A and 684, in this rulemaking the
8 Id.
at 3.
Commission is relying explicitly on the
Commission’s authority under the FPA
and NGA, in addition to its authority
under PUHCA 2005. Accordingly, in
this Final Rule, we are also revising the
name of subchapter U, and of parts 366
and 367, title 18, CFR, to better reflect
the Commission’s reliance on its
statutory authority under the FPA and
NGA, in addition to its authority under
PUHCA 2005.
C. Filing Date
13. As this Final Rule merely clarifies
existing filing obligations that are
already in place, we will require
centralized service companies that are
subject to this Final Rule to file Form
No. 60 by May 1, 2010.
IV. Information Collection Statement
14. Office of Management and Budget
(OMB) regulations require OMB to
review and approve certain information
collection requirements imposed by
agency rule.11 The Commission is
submitting notification of the
information collection requirements
contained in this Final Rule to OMB for
review and approval under section
3507(d) of the Paperwork Reduction Act
of 1995.12
15. The Office of Management and
Budget’s (OMB) regulations in 5 CFR
1320.11 require that it approve certain
reporting and recordkeeping
requirements (collections of
information) imposed by an agency.
Upon approval of a collection of
information, OMB will assign an OMB
control number and an expiration date.
Respondents subject to the filing
requirements of this Final Rule will not
be penalized for failing to respond to
these collections of information unless
the collections of information display a
valid OMB control number.
16. This Final Rule clarifies that the
requirement to file FERC Form No. 60
as it currently exists applies to
centralized service companies in
holding company systems that include a
natural gas company (where there is not
also a public utility); in holding
company systems that include a public
utility, these requirements already
apply. Likewise, this Final Rule clarifies
that the Uniform System of Accounts as
it currently exists applies to centralized
service companies in holding company
systems that include a natural gas
company (where there is not also a
public utility); in holding company
systems that include a public utility,
these requirements already apply.
Finally, this Final Rule revises the
9 Id.
10 See Form 60 Notice, FERC Stats. & Regs.
¶ 32,647 at P 12–17.
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68527
11 5
CFR 1320.11.
U.S.C. 3507(d).
12 44
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Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Rules and Regulations
definitions in 18 CFR parts 366 and 367
to match the requirements we are
implementing in this Final Rule.
17. Since most holding companies
include only public utilities or include
both public utilities and natural gas
companies and so would already be
subject to these requirements, we expect
that this clarification will have an
impact on only a relatively small
number of companies. Implementation
of this Final Rule is necessary to
provide greater transparency and will
aid the Commission in fulfilling its
regulatory obligation under the FPA and
the NGA to ensure that rates are just and
reasonable.
18. In the Form 60 Notice, the
Commission explained that, when the
Commission issued Order Nos. 667,
667–A and 684, it did not intend to
exclude centralized service companies
providing non-power services to
holding companies that included
natural gas companies (but no public
utilities) from the requirement to file
Form No. 60 or to abide by the Uniform
System of Accounts. Thus, the
Number of
respondents
Data collection
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FERC Form No. 60 ..........................................................................................
Information Collection Costs: 2,850
hours at $120/hour = $342,000.
Title: FERC Form No. 60, Annual
Report of Centralized Service
Companies.
Action: Proposed collections.
OMB Control No.: 1902–0215.
Respondents: Business or other for
profit, Interstate natural gas pipelines
and public utilities (not applicable to
small businesses).
Frequency of Responses: Annually.
20. Necessity of Information: This
Final Rule explicitly requires, absent an
exemption or waiver, any centralized
service company providing non-power
services to any natural gas company or
any public utility, or both, to file FERC
Form No. 60 annually and to comply
with the Uniform System of Accounts.
This information is needed to promote
transparency and to allow the
Commission to determine whether rates
of natural gas pipelines and public
utilities are just and reasonable.
21. Implementation of these
requirements will help the Commission
carry out its responsibilities under the
FPA, NGA, and PUHCA 2005 to ensure
that public utilities and natural gas
companies do not engage in improper
pricing and undue discrimination. The
information collection requirements of
this Final Rule will be reported to the
Commission and posted on the
Commission’s Web site.
Internal Review: The Commission has
reviewed the reporting and accounting
requirements proposed in this Final
Rule. These requirements conform to
the Commission’s plan for efficient
13 See Order No. 684, FERC Stats. & Regs.
¶ 31,229, at P 226; see also Form 60 Notice, FERC
Stats. & Regs. ¶ 32,647 at P 20.
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10:44 Dec 24, 2009
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V. Environmental Analysis
24. 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.14 The Commission has
categorically excluded certain actions
from these requirements as not having a
14 Regulations Implementing the National
Environmental Policy Act of 1969, Order No. 486,
FERC Stats. & Regs. ¶ 30,783 (1987).
15 18 CFR 380.4.
Frm 00052
Fmt 4700
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Number of responses per
respondent
38
information collection, communication,
and management within the natural gas
pipeline and electric power industries,
and are necessary to meet the
Commission’s obligations under
PUHCA, the FPA, and the NGA. 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 collection requirements.
22. Interested persons may obtain
information on the reporting
requirements by contacting the
following: Federal Energy Regulatory
Commission, 888 First Street, NE.,
Washington, DC 20426, [Attention:
Michael Miller, Office of the Chief
Information Officer, Phone: (202) 502–
8415, fax: (202) 273–0873, e-mail:
michael.miller@ferc.gov].
23. Comments concerning the
collection of information and the
associated burden estimate, 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) 395–4638, fax: (202) 395–7285].
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Commission continues to rely on the
estimate made in Order No. 684 of the
burden associated with the annual filing
of Form No. 60 (2,850 hours and
$342,000).13
19. Moreover, in response to the Form
60 Notice, the sole comment filed
supported the Form 60 Notice proposals
and did not raise any concerns as to the
reporting burden. Therefore, the
Commission will use the same estimate
in this Final Rule.
1
Hours per
response
Total No. of
hours
75
2,850
significant effect on the human
environment.15 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, for
accounting-related matters, and for raterelated matters.16 Therefore, no
environmental assessment is necessary.
VI. Regulatory Flexibility Act
Certification
25. The Regulatory Flexibility Act of
1980 (RFA) 17 generally requires a
description and analysis of rulemakings
that will have a significant economic
impact on a substantial number of small
entities. The regulations adopted here
impose requirements only on holding
companies of public utilities and
natural gas pipelines, the majority of
which are not small businesses, and
thus the regulations proposed here will
not have a significant economic impact
on a substantial number of small
entities. These requirements are, in fact,
designed to benefit all customers,
including small businesses.
Accordingly, the Commission hereby
certifies that the regulations proposed
here will not have a significant adverse
impact on a substantial number of small
entities.
VII. Document Availability
26. 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
16 See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5),
380.4(a)(15), 380.4(a)(16), 380.4(a)(25); accord id.
380.4(a)(27).
17 5 U.S.C. 601–12.
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Federal Register / Vol. 74, No. 247 / Monday, December 28, 2009 / Rules and Regulations
document via the Internet through the
Commission’s Home Page (https://
www.ferc.gov) and in the Commission’s
Public Reference Room during normal
business hours (8:30 a.m. to 5 p.m.
Eastern time) at 888 First Street, NE.,
Room 2A, Washington, DC 20426.
27. From the Commission’s Home
Page on the Internet, this information is
available in eLibrary. The full text of
this document is available in 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.
28. User assistance is available for
eLibrary and the Commission’s Web site
during the Commission’s normal
business hours. For assistance, contact
FERC Online Support by e-mail at
FERCOnlineSupport@ferc.gov, or by
telephone at 202–502–6652 (toll-free at
(866) 208–3676) or for TTY, contact
(202) 502–8659.
§ 366.1
List of Subjects
(a) General. (1) FERC Form No. 60.
Unless otherwise exempted or granted a
waiver by Commission rule or order
pursuant to §§ 366.3 and 366.4, every
centralized service company (see § 367.2
of this chapter) in a holding company
system, regardless of whether that
service company is providing services to
a public utility, a natural gas company,
or both, must file an annual report,
FERC Form No. 60, as provided in
§ 369.1 of this chapter. Every report
must be submitted on the FERC Form
No. 60 then in effect and must be
prepared in accordance with the
instructions incorporated in that form.
*
*
*
*
*
■ 8. The heading of part 367 is revised
to read as follows:
18 CFR Part 366
Electric power, Natural gas, Reporting
and recordkeeping requirements.
18 CFR Part 367
Electric power, Natural gas, Uniform
System of Accounts, Reporting and
recordkeeping requirements.
By the Commission.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the
Commission amends parts 366 and 367,
subchapter U, Chapter I, Title 18, Code
of Federal Regulations, as follows:
■ 1. The title of Subchapter U is revised
to read as follows:
SUBCHAPTER U—REGULATIONS UNDER
THE PUBLIC UTILITY HOLDING COMPANY
ACT OF 2005, FEDERAL POWER ACT AND
NATURAL GAS ACT
2. The title of part 366 is revised to
read as follows:
■
PART 366—BOOKS AND RECORDS
Definitions.
*
*
*
*
*
Service company. The term ‘‘service
company’’ means any associate
company within a holding company
system organized specifically for the
purpose of providing non-power goods
or services or the sale of goods or
construction work to any public utility
or any natural gas company, or both, in
the same holding company system.
*
*
*
*
*
■ 6. The heading of Subpart B is revised
to read as follows:
Subpart B—Accounting and
Recordkeeping Under PUHCA 2005,
the Federal Power Act and the Natural
Gas Act
7. In § 366.23, paragraph (a)(1) is
revised to read as follows:
■
§ 366.23 FERC Form No. 60, Annual
reports of centralized service companies,
and FERC–61, Narrative description of
service company functions.
PART 367—UNIFORM SYSTEM OF
ACCOUNTS FOR CENTRALIZED
SERVICE COMPANIES SUBJECT TO
THE PROVISIONS OF THE PUBLIC
UTILITY HOLDING COMPANY ACT OF
2005, FEDERAL POWER ACT AND
NATURAL GAS ACT
9. The authority citation for part 367
is revised to read as follows:
3. The authority citation for part 366
is revised to read as follows:
■
Authority: 15 U.S.C. 717 et seq., 16 U.S.C.
791a et seq., and 42 U.S.C. 16451–16463.
Authority: 15 U.S.C. 717 et seq., 16 U.S.C.
791a et seq., and 42 U.S.C. 16451–16463.
■
4. The heading of Subpart A is revised
to read as follows:
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■
■
Subpart A—Definitions and Provisions
Under PUHCA 2005, the Federal Power
Act and the Natural Gas Act
§ 367.1
5. In § 366.1, the definition of ‘‘service
company’’ is revised to read as follows:
■
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10:44 Dec 24, 2009
Jkt 220001
10. In § 367.1, paragraph (a)(45) is
revised to read as follows:
Definitions.
(a) * * *
(45) Service company means any
associate company within a holding
company system organized specifically
for the purpose of providing non-power
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68529
goods or services or the sale of goods or
construction work to any public utility
or any natural gas company, or both, in
the same holding company system.
*
*
*
*
*
■ 11. In § 367.2, paragraph (a) is revised
to read as follows:
§ 367.2 Companies for which this system
of accounts is prescribed.
(a) Unless otherwise exempted or
granted a waiver by Commission rule or
order pursuant to §§ 366.3 and 366.4 of
this chapter, this Uniform System of
Accounts applies to any centralized
service company operating, or organized
specifically to operate, within a holding
company system for the purpose of
providing non-power services to any
public utility or any natural gas
company, or both, in the same holding
company system.
*
*
*
*
*
[FR Doc. E9–30449 Filed 12–24–09; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
21 CFR Parts 510 and 529
[Docket No. FDA–2009–N–0665]
New Animal Drugs; Change of
Sponsor; Isoflurane
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Final rule.
SUMMARY: The Food and Drug
Administration (FDA) is amending the
animal drug regulations to reflect a
change of sponsor for an abbreviated
new animal drug application (ANADA)
for isoflurane, USP, from Nicholas
Piramal India Ltd. UK, to Piramal
Healthcare Ltd.
DATES: This rule is effective December
28, 2009.
FOR FURTHER INFORMATION CONTACT:
David R. Newkirk, Center for Veterinary
Medicine (HFV–100), Food and Drug
Administration, 7500 Standish Pl.,
Rockville, MD 20855, 240–276–8307, email: david.newkirk@fda.hhs.gov.
SUPPLEMENTARY INFORMATION: Nicholas
Piramal India Ltd. UK has informed
FDA that it has transferred ownership
of, and all rights and interest in,
ANADA 200–237 for Isoflurane, USP, to
Piramal Healthcare Ltd., Piramal Tower,
Ganpatrao Kadam Marg, Lower Parel,
Mumbai - 400 013, India. Accordingly,
the regulations are amended in 21 CFR
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]]>Agencies
[Federal Register Volume 74, Number 247 (Monday, December 28, 2009)]
[Rules and Regulations]
[Pages 68526-68529]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-30449]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Parts 366 and 367
[Docket No. RM09-21-000; Order No. 731]
Revised Filing Requirements for Centralized Service Companies
Under the Public Utility Holding Company Act of 2005, the Federal Power
Act, and the Natural Gas Act
Issued December 17, 2009.
AGENCY: Federal Energy Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Energy Regulatory Commission is revising its
regulations to require every centralized service company that provides
non-power services to any public utility, natural gas company, or both,
to file Form No. 60 (Annual Report of Centralized Service Companies)
annually and abide by the Uniform System of Accounts, unless exempted
or granted a waiver. This rule provides greater transparency and will
aid the Commission in fulfilling its regulatory obligations under the
Federal Power Act and the Natural Gas Act to ensure that rates are just
and reasonable.
DATES: Effective Date: This rule will become effective January 27,
2010.
FOR FURTHER INFORMATION CONTACT:
Thomas Russo (Technical Information), Division of Financial Regulation,
Office of Enforcement, Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426,Telephone (202) 502-8792.
Lawrence Greenfield (Legal Information), Office of the General
Counsel--Energy Markets,Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, DC 20426, Telephone (202) 502-6415.
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:
Before Commissioners: Jon Wellinghoff, Chairman; Suedeen G. Kelly, Marc
Spitzer, and Philip D. Moeller.
Order No. 731
Final Rule
Issued December 17, 2009.
Table of Contents
Paragraph
Nos.
I. Introduction............................................. 1
II. Background.............................................. 3
III. Discussion............................................. 7
A. Comments............................................. 8
B. Analysis............................................. 9
C. Filing Date.......................................... 13
IV. Information Collection Statement........................ 14
V. Environmental Analysis................................... 24
VI. Regulatory Flexibility Act Certification................ 25
VII. Document Availability.................................. 26
I. Introduction
1. The Federal Energy Regulatory Commission (Commission) is
revising its regulations at 18 CFR 366.1, 366.23, 367.1 and 367.2 to
require every centralized service company that provides non-power
services to any public utility, natural gas company, or both, to file
Form No. 60 (Annual Report of Centralized Service Companies) annually
and abide by the Uniform System of Accounts, unless exempted or granted
a waiver pursuant to 18 CFR 366.3 or 366.4.\1\
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\1\ We are not adopting any revisions to the regulatory text of
18 CFR part 368 or 18 CFR 369.1, because the current text of those
regulations already is consistent with this Final Rule.
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2. The Commission believes that these revisions promote
transparency and are consistent with the Commission's regulatory
obligation to regulate public utilities under the Federal Power Act
(FPA) \2\ and natural gas companies under the Natural Gas Act (NGA) \3\
to ensure that rates are just and reasonable. The revisions also better
track the Commission's intent in prior orders directing the filing of
Form No. 60.
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\2\ 16 U.S.C. 791a et seq.
\3\ 15 U.S.C. 717 et seq.
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II. Background
3. On September 17, 2009, the Commission issued a notice of
proposed rulemaking proposing to revise 18 CFR 366.1 and 18 CFR 367.1
to clarify that ``service companies'' includes entities providing non-
power goods or services to any public utility or any natural gas
company, or both, in the same holding company system, and to revise 18
CFR 366.23 and 18 CFR 367.2 to clarify that every centralized service
company that provides non-power services to a public utility, a natural
gas company, or both, in the same holding company system, must file
FERC Form No. 60 (Annual Report of Centralized Service Companies)
annually and must abide by the Uniform System of Accounts, unless the
holding company is exempted or granted a waiver pursuant to 18 CFR
366.3 or 366.4.\4\
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\4\ Revised Filing Requirements for Centralized Service
Companies Under the Public Utility Holding Company Act of 2005, the
Federal Power Act, and the Natural Gas Act, Notice of Proposed
Rulemaking, 74 FR 48884 (Sep. 25, 2009), FERC Stats. & Regs. ]
32,647 (2009) (Form 60 Notice).
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4. In the Form 60 Notice, the Commission explained that the
Commission intended in Order Nos. 667, 667-A, and 684,\5\ to require
every centralized service company that provides non-power services to a
public utility, a natural gas company, or both, to file Form No. 60
(Annual Report of Centralized Service Companies) annually, unless the
holding company is exempted or granted a waiver pursuant to 18 CFR
366.3 or 366.4.
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\5\ Repeal of the Public Utility Holding Company Act of 1935 and
Enactment of the Public Utility Holding Company Act of 2005, Order
No. 667, FERC Stats. & Regs. ] 31,197 (2005), order on reh'g, Order
No. 667-A, FERC Stats. & Regs. ] 31,213 (2006), order on reh'g,
Order No. 667-B, FERC Stats. & Regs. ] 31,224 (2006), order on
reh'g, Order No. 667-C, 118 FERC ] 61,133 (2007); Financial
Accounting, Reporting and Records Retention Requirements Under the
Public Utility Holding Company Act of 2005, Order No. 684, FERC
Stats. & Regs. ] 31,229 (2006).
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5. However, as explained in the Form 60 Notice, the codification of
this requirement in the regulatory text did not make this requirement
clear. Thus, in the Form 60 Notice, the Commission proposed new
language that would more clearly express this requirement.
[[Page 68527]]
6. In response to the Form 60 Notice, comments were filed by the
American Public Gas Association (APGA). These comments, more
specifically addressed below, support the Commission's proposals in the
Form 60 Notice.
III. Discussion
7. It was our intention in Order Nos. 667, 667-A and 684 that every
centralized service company providing non-power services either to any
public utility or to any natural gas company (or to both) in the same
holding company system file Form No. 60 and comply with the Uniform
System of Accounts, unless the holding company is exempted or granted a
waiver. However, as explained in the Form 60 Notice, it has recently
come to our attention that, as currently written, the regulatory text
of 18 CFR 366.1, 366.23, 367.1 and 367.2 could be read to reach a
different, unintended conclusion. Namely, that centralized service
companies providing non-power services to natural gas companies would
be excluded from the requirement to file Form No. 60 if the companies
that were part of the holding company system did not include a public
utility. The proposed revisions to 18 CFR 366.1, 18 CFR 366.23, 18 CFR
367.1 and 18 CFR 367.2 described in the Form 60 Notice were all
designed to close this inadvertent loophole.\6\
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\6\ See Form 60 Notice, FERC Stats. & Regs. ] 32,647 at P 12-17;
accord id. P 4-11. We note, however, that, irrespective of the
revisions we are adopting in this Final Rule, under 18 CFR
366.23(a)(2), any service company in a holding company system that
does not file Form No. 60 is required to file a narrative
description of the company's functions during the prior calendar
year (Form No. 61) absent an exemption or waiver.
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A. Comments
8. APGA supports the Commission's proposals in the Form 60 Notice.
APGA argues both that the proposed regulations are consistent with the
Commission's expressed intention as to the scope of the filing
requirement and that ``centralized service companies that provide
services to natural gas companies or both natural gas companies and
public utilities warrant the same treatment as centralized service
companies that provide services to just public utilities. In APGA's
view, this is because the same concerns regarding transparency (and
effective rate regulation) persist among both natural gas companies and
public utilities.'' \7\ Thus, APGA supports revisions to the
Commission's regulations to make the requirement to file Form No. 60
clearer and adds that the ``Commission's proposal is consistent with
its obligation to ensure just and reasonable rates for public utilities
under the FPA and for natural gas companies under the NGA.'' \8\
Finally, APGA states that the Commission possesses the authority to
require centralized service companies to file FERC Form No. 60,
pursuant to the FPA and NGA, respectively, in addition to its authority
under PUHCA 2005.\9\
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\7\ APGA Comments at 2-3.
\8\ Id. at 3.
\9\ Id.
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B. Analysis
9. Based on the analysis contained in the Form 60 Notice and after
consideration of the comments filed in response to the Form 60 Notice,
we are revising our regulations to clarify that the FERC Form No. 60
annual filing requirement, as well as the requirement to abide by the
Uniform System of Accounts, extends to any centralized service company
that provides non-power services to any public utility or any natural
gas company, or both, in the same holding company system, so that the
filing requirements will now expressly apply to all the entities that
the Commission envisioned covering in its earlier orders, (i.e., the
centralized service companies that serve public utilities and natural
gas companies subject to the Commission's jurisdiction under the FPA
and NGA).
10. Therefore, in this Final Rule, the Commission is revising 18
CFR 366.1 and 18 CFR 367.1 to clarify that ``service companies''
include entities providing non-power goods or services to any public
utility or any natural gas company, or both, in the same holding
company system, and to revise 18 CFR 366.23 and 18 CFR 367.2 to clarify
that every centralized service company that provides non-power services
to a public utility, a natural gas company, or both, in the same
holding company system, must file FERC Form No. 60 (Annual Report of
Centralized Service Companies) annually and must abide by the Uniform
System of Accounts, unless the holding company is exempted or granted a
waiver pursuant to 18 CFR 366.3 or 366.4.
11. The Commission finds that these revisions will promote
transparency and are consistent with the Commission's regulatory
obligation to regulate public utilities under the FPA and natural gas
companies under the NGA to ensure just and reasonable rates. The
revisions also better track the Commission's intent in prior orders
directing the filing of FERC Form No. 60.\10\
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\10\ See Form 60 Notice, FERC Stats. & Regs. ] 32,647 at P 12-
17.
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12. In contrast to Order Nos. 667, 667-A and 684, in this
rulemaking the Commission is relying explicitly on the Commission's
authority under the FPA and NGA, in addition to its authority under
PUHCA 2005. Accordingly, in this Final Rule, we are also revising the
name of subchapter U, and of parts 366 and 367, title 18, CFR, to
better reflect the Commission's reliance on its statutory authority
under the FPA and NGA, in addition to its authority under PUHCA 2005.
C. Filing Date
13. As this Final Rule merely clarifies existing filing obligations
that are already in place, we will require centralized service
companies that are subject to this Final Rule to file Form No. 60 by
May 1, 2010.
IV. Information Collection Statement
14. Office of Management and Budget (OMB) regulations require OMB
to review and approve certain information collection requirements
imposed by agency rule.\11\ The Commission is submitting notification
of the information collection requirements contained in this Final Rule
to OMB for review and approval under section 3507(d) of the Paperwork
Reduction Act of 1995.\12\
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\11\ 5 CFR 1320.11.
\12\ 44 U.S.C. 3507(d).
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15. The Office of Management and Budget's (OMB) regulations in 5
CFR 1320.11 require that it approve certain reporting and recordkeeping
requirements (collections of information) imposed by an agency. Upon
approval of a collection of information, OMB will assign an OMB control
number and an expiration date. Respondents subject to the filing
requirements of this Final Rule will not be penalized for failing to
respond to these collections of information unless the collections of
information display a valid OMB control number.
16. This Final Rule clarifies that the requirement to file FERC
Form No. 60 as it currently exists applies to centralized service
companies in holding company systems that include a natural gas company
(where there is not also a public utility); in holding company systems
that include a public utility, these requirements already apply.
Likewise, this Final Rule clarifies that the Uniform System of Accounts
as it currently exists applies to centralized service companies in
holding company systems that include a natural gas company (where there
is not also a public utility); in holding company systems that include
a public utility, these requirements already apply. Finally, this Final
Rule revises the
[[Page 68528]]
definitions in 18 CFR parts 366 and 367 to match the requirements we
are implementing in this Final Rule.
17. Since most holding companies include only public utilities or
include both public utilities and natural gas companies and so would
already be subject to these requirements, we expect that this
clarification will have an impact on only a relatively small number of
companies. Implementation of this Final Rule is necessary to provide
greater transparency and will aid the Commission in fulfilling its
regulatory obligation under the FPA and the NGA to ensure that rates
are just and reasonable.
18. In the Form 60 Notice, the Commission explained that, when the
Commission issued Order Nos. 667, 667-A and 684, it did not intend to
exclude centralized service companies providing non-power services to
holding companies that included natural gas companies (but no public
utilities) from the requirement to file Form No. 60 or to abide by the
Uniform System of Accounts. Thus, the Commission continues to rely on
the estimate made in Order No. 684 of the burden associated with the
annual filing of Form No. 60 (2,850 hours and $342,000).\13\
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\13\ See Order No. 684, FERC Stats. & Regs. ] 31,229, at P 226;
see also Form 60 Notice, FERC Stats. & Regs. ] 32,647 at P 20.
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19. Moreover, in response to the Form 60 Notice, the sole comment
filed supported the Form 60 Notice proposals and did not raise any
concerns as to the reporting burden. Therefore, the Commission will use
the same estimate in this Final Rule.
----------------------------------------------------------------------------------------------------------------
Number of
Data collection Number of responses per Hours per Total No. of
respondents respondent response hours
----------------------------------------------------------------------------------------------------------------
FERC Form No. 60................................ 38 1 75 2,850
----------------------------------------------------------------------------------------------------------------
Information Collection Costs: 2,850 hours at $120/hour = $342,000.
Title: FERC Form No. 60, Annual Report of Centralized Service
Companies.
Action: Proposed collections.
OMB Control No.: 1902-0215.
Respondents: Business or other for profit, Interstate natural gas
pipelines and public utilities (not applicable to small businesses).
Frequency of Responses: Annually.
20. Necessity of Information: This Final Rule explicitly requires,
absent an exemption or waiver, any centralized service company
providing non-power services to any natural gas company or any public
utility, or both, to file FERC Form No. 60 annually and to comply with
the Uniform System of Accounts. This information is needed to promote
transparency and to allow the Commission to determine whether rates of
natural gas pipelines and public utilities are just and reasonable.
21. Implementation of these requirements will help the Commission
carry out its responsibilities under the FPA, NGA, and PUHCA 2005 to
ensure that public utilities and natural gas companies do not engage in
improper pricing and undue discrimination. The information collection
requirements of this Final Rule will be reported to the Commission and
posted on the Commission's Web site.
Internal Review: The Commission has reviewed the reporting and
accounting requirements proposed in this Final Rule. These requirements
conform to the Commission's plan for efficient information collection,
communication, and management within the natural gas pipeline and
electric power industries, and are necessary to meet the Commission's
obligations under PUHCA, the FPA, and the NGA. 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 collection requirements.
22. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street, NE., Washington, DC 20426, [Attention:
Michael Miller, Office of the Chief Information Officer, Phone: (202)
502-8415, fax: (202) 273-0873, e-mail: michael.miller@ferc.gov].
23. Comments concerning the collection of information and the
associated burden estimate, 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) 395-4638, fax:
(202) 395-7285].
V. Environmental Analysis
24. 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.\14\ The
Commission has categorically excluded certain actions from these
requirements as not having a significant effect on the human
environment.\15\ 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, for accounting-related matters, and for
rate-related matters.\16\ Therefore, no environmental assessment is
necessary.
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\14\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, FERC Stats. & Regs. ] 30,783 (1987).
\15\ 18 CFR 380.4.
\16\ See 18 CFR 380.4(a)(2)(ii), 380.4(a)(5), 380.4(a)(15),
380.4(a)(16), 380.4(a)(25); accord id. 380.4(a)(27).
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VI. Regulatory Flexibility Act Certification
25. The Regulatory Flexibility Act of 1980 (RFA) \17\ generally
requires a description and analysis of rulemakings that will have a
significant economic impact on a substantial number of small entities.
The regulations adopted here impose requirements only on holding
companies of public utilities and natural gas pipelines, the majority
of which are not small businesses, and thus the regulations proposed
here will not have a significant economic impact on a substantial
number of small entities. These requirements are, in fact, designed to
benefit all customers, including small businesses. Accordingly, the
Commission hereby certifies that the regulations proposed here will not
have a significant adverse impact on a substantial number of small
entities.
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\17\ 5 U.S.C. 601-12.
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VII. Document Availability
26. 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
[[Page 68529]]
document via the Internet through the Commission's Home Page (https://www.ferc.gov) and in the Commission's Public Reference Room during
normal business hours (8:30 a.m. to 5 p.m. Eastern time) at 888 First
Street, NE., Room 2A, Washington, DC 20426.
27. From the Commission's Home Page on the Internet, this
information is available in eLibrary. The full text of this document is
available in 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.
28. User assistance is available for eLibrary and the Commission's
Web site during the Commission's normal business hours. For assistance,
contact FERC Online Support by e-mail at FERCOnlineSupport@ferc.gov, or
by telephone at 202-502-6652 (toll-free at (866) 208-3676) or for TTY,
contact (202) 502-8659.
List of Subjects
18 CFR Part 366
Electric power, Natural gas, Reporting and recordkeeping
requirements.
18 CFR Part 367
Electric power, Natural gas, Uniform System of Accounts, Reporting
and recordkeeping requirements.
By the Commission.
Kimberly D. Bose,
Secretary.
In consideration of the foregoing, the Commission amends parts 366
and 367, subchapter U, Chapter I, Title 18, Code of Federal
Regulations, as follows:
0
1. The title of Subchapter U is revised to read as follows:
SUBCHAPTER U--REGULATIONS UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT
OF 2005, FEDERAL POWER ACT AND NATURAL GAS ACT
0
2. The title of part 366 is revised to read as follows:
PART 366--BOOKS AND RECORDS
0
3. The authority citation for part 366 is revised to read as follows:
Authority: 15 U.S.C. 717 et seq., 16 U.S.C. 791a et seq., and 42
U.S.C. 16451-16463.
0
4. The heading of Subpart A is revised to read as follows:
Subpart A--Definitions and Provisions Under PUHCA 2005, the Federal
Power Act and the Natural Gas Act
0
5. In Sec. 366.1, the definition of ``service company'' is revised to
read as follows:
Sec. 366.1 Definitions.
* * * * *
Service company. The term ``service company'' means any associate
company within a holding company system organized specifically for the
purpose of providing non-power goods or services or the sale of goods
or construction work to any public utility or any natural gas company,
or both, in the same holding company system.
* * * * *
0
6. The heading of Subpart B is revised to read as follows:
Subpart B--Accounting and Recordkeeping Under PUHCA 2005, the
Federal Power Act and the Natural Gas Act
0
7. In Sec. 366.23, paragraph (a)(1) is revised to read as follows:
Sec. 366.23 FERC Form No. 60, Annual reports of centralized service
companies, and FERC-61, Narrative description of service company
functions.
(a) General. (1) FERC Form No. 60. Unless otherwise exempted or
granted a waiver by Commission rule or order pursuant to Sec. Sec.
366.3 and 366.4, every centralized service company (see Sec. 367.2 of
this chapter) in a holding company system, regardless of whether that
service company is providing services to a public utility, a natural
gas company, or both, must file an annual report, FERC Form No. 60, as
provided in Sec. 369.1 of this chapter. Every report must be submitted
on the FERC Form No. 60 then in effect and must be prepared in
accordance with the instructions incorporated in that form.
* * * * *
0
8. The heading of part 367 is revised to read as follows:
PART 367--UNIFORM SYSTEM OF ACCOUNTS FOR CENTRALIZED SERVICE
COMPANIES SUBJECT TO THE PROVISIONS OF THE PUBLIC UTILITY HOLDING
COMPANY ACT OF 2005, FEDERAL POWER ACT AND NATURAL GAS ACT
0
9. The authority citation for part 367 is revised to read as follows:
Authority: 15 U.S.C. 717 et seq., 16 U.S.C. 791a et seq., and 42
U.S.C. 16451-16463.
0
10. In Sec. 367.1, paragraph (a)(45) is revised to read as follows:
Sec. 367.1 Definitions.
(a) * * *
(45) Service company means any associate company within a holding
company system organized specifically for the purpose of providing non-
power goods or services or the sale of goods or construction work to
any public utility or any natural gas company, or both, in the same
holding company system.
* * * * *
0
11. In Sec. 367.2, paragraph (a) is revised to read as follows:
Sec. 367.2 Companies for which this system of accounts is prescribed.
(a) Unless otherwise exempted or granted a waiver by Commission
rule or order pursuant to Sec. Sec. 366.3 and 366.4 of this chapter,
this Uniform System of Accounts applies to any centralized service
company operating, or organized specifically to operate, within a
holding company system for the purpose of providing non-power services
to any public utility or any natural gas company, or both, in the same
holding company system.
* * * * *
[FR Doc. E9-30449 Filed 12-24-09; 8:45 am]
BILLING CODE 6717-01-P
