[Federal Register Volume 61, Number 185 (Monday, September 23, 1996)]
[Rules and Regulations]
[Pages 49662-49678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24261]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

18 CFR Part 141

[Docket No. RM96-17-000; Order No. 590]


Changes in Form No. 1 Instructions

    Issued September 16, 1996.

Agency: Federal Energy Regulatory Commission, DOE.

Action: Final Rule.

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Summary: The Federal Energy Regulatory Commission is modifying the 
instructions for the filing of FERC Form No. 1, ``Annual report of 
Major electric utilities, licensees and others,'' to make them clearer 
and to make it easier to file the Form electronically.

Effective date: This final rule is effective on October 23, 1996.

For Further Information Contact:
Joseph C. Lynch (Legal Information), Office of the General Counsel, 
Federal Energy Regulatory Commission, 888 First St. N.E., Washington, 
D.C. 20426, (202) 208-2128
Robert J. Lynch (Technical Information), Office of the Chief 
Accountant, Federal Energy Regulatory Commission, 888 First St. N.E., 
Washington, D.C. 20426, (202) 219-3012.

Supplementary Information: In addition to publishing the full text of 
this document in the Federal Register, the Commission also provides all 
interested persons an opportunity to inspect or copy the contents of 
this document during normal business hours in the Public Reference Room 
at 888 First Street. NE., Washington, DC. 20426.
    The Commission Issuance Posting System (CIPS), an electronic 
bulletin board service, provides access to the texts of formal 
documents issued by the Commission. CIPS is available at no charge to 
the user and may be accessed using a personal computer with a modem by 
dialing (202) 208-1397 if dialing locally, or 1-800-856-3920 if dialing 
long distance. CIPS is also available through the FedWorld System (by 
modem or Internet). To access CIPS, set your communications software to 
19200, 14400, 12000, 9600, 7200, 4800, 2400 or 1200bps, full duplex, no 
parity, 8 data bits, and 1 stop bit. The full text of this document 
will be available on CIPS indefinitely in ASCII and WordPerfect 5.1 
format for one year. The complete text on diskette in WordPerfect 
format may also be purchased from the Commission's copy contractor, La 
Dorn Systems Corporation, also located in the Public Reference Room at 
888 First Street NE., Washington, DC. 20426.

    Issued: September 16, 1996.

I. Introduction

    On December 29, 1994, the Commission amended its regulations to 
provide for the electronic filing of FERC Form No. 1, ``Annual report 
of Major electric utilities, licensees and others'' (Form No. 1).1 
The Commission directed that, beginning with reporting year 1994 (for 
which reports were due on or before May 31, 1995),2 parties would 
submit to the Commission a computer diskette with the Form No. 1 
information on it, in addition to the required number of paper copies. 
The Commission concluded that the change would yield significant 
benefits, including more timely analysis and publication of data and 
reduced cost of data entry and retrieval. Aside from requiring 
electronic filing of Form No. 1, the Commission otherwise left Form No. 
1 unchanged.
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    \1\ Electronic Filing of FERC Form No. 1 and Delegation to Chief 
Accountant, Order No. 574, 60 FR 1716 (Jan. 5, 1995), FERC Stats. & 
Regs. Regulations Preambles 1991-1996 para. 31,013 (1994) 
(Electronic Filing I), reconsid. denied, 70 FERC para. 61,330 (1995) 
(Electronic Filing II).
    \2\ Electronic Filing II, 70 FERC at 62,020.
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    The Commission is now amending the instructions for filing Form No. 
1 to eliminate ambiguity and to make it easier to file the form 
electronically.

II. Public Reporting Burden

    The Commission estimates the public reporting burden for the 
collection of information under the final rule will remain unchanged 
for Form No. 1, since the only modifications are to the instructions 
for the filing of the form to make them clearer and to make it easier 
to file the form electronically.

[[Page 49663]]

    The current annual reporting burden for the industry for the 
collection of information is estimated to be 235,000 hours. The 
industry burden is based on an estimate of 1,217 average hours on an 
annual basis for the 193 entities which complete a Form No. 1 filing. 
This estimate includes the time for reviewing instructions, researching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information.
    Comments regarding this burden estimate or any other aspect of this 
collection of information, including suggestions for reducing this 
burden can be sent to, the Federal Energy Regulatory Commission, 888 
First Street, N.E., Washington, D.C. 20426 (Attention: Michael Miller, 
Information Services Division, (202) 208-1415), and to the Office of 
Information and Regulatory Affairs of the Office of Management and 
Budget (Attention: Desk Officer for the Federal Energy Regulatory 
Commission); FAX: (202) 395-7285; telephone: (202) 395-3087.

III. Background

    The Commission, in the exercise of its authority under the Federal 
Power Act (FPA), collects data pertaining to the electric utility 
industry in the United States.3 One of the principal forms that 
the Commission uses to collect this information is Form No. 1, which 
some 193 electric utilities and licensees submit annually.4 Form 
No. 1 consists of cover pages, four pages of general information and 
instructions, and 113 pages of schedules incorporating financial and 
operational information pertaining to the respondent companies. An 
independent certified public accountant must certify that certain 
information on the form conforms to the Commission's Uniform System of 
Accounts.5
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    \3\ 16 U.S.C. 825, 825c.
    \4\ Electronic Filing I, 60 FR at 1716-17; FERC Stats. & Regs. 
at 31,256.
    \5\ 18 CFR Part 101. See Electronic Filing I, 60 FR at 1717; 
FERC Stats. & Regs. at 31,256.
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    The Commission has now gained experience from two reporting cycles 
under the new system. The Commission received numerous inquiries 
seeking clarification of certain of the instructions that were not 
compatible with the new electronic filing requirement. The Commission 
has determined that, in addition to clarifying these instructions, it 
also should revise certain others that have created ambiguity in prior 
reporting cycles.
    The Commission is making these revisions in the Form No. 1 
instructions in tandem with its continuing improvement of the Form No. 
1 software. These changes to the Form No. 1 instructions will make it 
easier to field test, and eventually distribute, a new version of the 
software to each Form No. 1 respondent. A detailed description of the 
changes that the Commission is making in its Form No. 1 instructions 
follows. A revised set of Form No. 1 instructions appears in the 
Appendix.6
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    \6\ Note: This Appendix will not appear in the Code of Federal 
Regulations.
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IV. Description of Changes to Form No. 1 Instructions

A. Overview of Instructions that the Commission is Modifying

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       Page No.                  Topic                Instruction No.   
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102..................  Control Over Respondent..  2                     
103..................  Corporations Controlled    4                     
                        By Respondent.                                  
104..................  Officers.................  3                     
108..................  Important Changes During   12                    
                        The Year.                                       
115..................  Statement Of Income For    7                     
                        The Year (Continued).                           
118..................  Statement of Retained      8                     
                        Earnings For The Year.                          
120..................  Statement Of Cash Flows..  1                     
122..................  Notes To Financial         6                     
                        Statements.                                     
261..................  Reconciliation Of          3                     
                        Reported Net Income With                        
                        Taxable Income For                              
                        Federal Income Taxes.                           
263..................  Taxes Accrued, Prepaid     8                     
                        And Charged During Year                         
                        (Continued).                                    
350-351..............  Regulatory Commission      2, 4 and column       
                        Expenses.                  headings (d), (e),   
                                                   (i), (l).            
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B. Description of and Reason for Changes

Page 102, Instruction No. 2

    1. Change: deleted.
    2. Reason: Inconsistent with requirement to file data in a 
structured electronic format. Instruction called for referencing 
information submitted to the Securities and Exchange Commission (SEC) 
(i.e. the SEC's 10-K annual report), rather than providing the 
information on a diskette.

Page 103, Instruction No. 4

    1. Change: deleted.
    2. Reason: Inconsistent with requirement to file data in a 
structured electronic format. Instruction called for referencing 
information submitted to the SEC (i.e., the SEC's 10-K annual report), 
rather than providing the information on a diskette.

Page 104, Instruction No. 3

    1. Change: deleted.
    2. Reason: Inconsistent with requirement to file data in a 
structured electronic format. Instruction called for substituting a 
copy of the information submitted to the SEC (i.e., item 4 of 
Regulation S-K), instead of completing page 104.

Page 108, Instruction No. 12

    1. Change: The Commission is changing the words ``attached to'' to 
``included on'' this page.
    2. Reason: The words ``attached to'' are inconsistent with the 
requirement to file data in a structured electronic format. Instruction 
provided for attaching a copy of the notes that appear in the 
respondent's annual report.

Page 115, Instruction No. 7

    1. Change: The Commission is changing the words ``attached at'' to 
``included on'' page 122.
    2. Reason: The words ``attached at'' are inconsistent with the 
requirement to file the data in a structured electronic format. 
Instruction called for attaching at page 122 a copy of the notes 
appearing in the report to stockholders.

Page 118, Instruction No. 8

    1. Change: The Commission is changing the words ``attach them at'' 
to ``include them on'' page 122.
    2. Reason: The words ``attach them at'' are inconsistent with the 
requirement to file the data in a structured electronic format. 
Instruction called for attaching at page 122 a copy of the notes 
appearing in the report to stockholders.

Page 120, Instruction No. 1

    1. Change: The Commission is changing the words ``attached to'' to 
``included on'' page 122.
    2. Reason: The words ``attached to'' are inconsistent with the 
requirement to file the data in a structured electronic format. 
Instruction called for attaching at page 122 a copy of the notes 
appearing in the annual stockholders report.

Page 122, Instruction No. 6

    1. Change: The Commission is changing the words ``attached hereto'' 
to ``included herein.''
    2. Reason: The words ``attached hereto'' are inconsistent with the

[[Page 49664]]

requirement to file the data in a structured electronic format. 
Instruction called for attaching a copy of the notes that appear in the 
respondent's annual report to stockholders.

Page 261, Instruction No. 3

    1. Change: The Commission is adding the following direction to this 
instruction: ``For electronic reporting purposes complete line 27 and 
provide the substitute page in the context of a footnote.''
    2. Reason: As currently written, the instruction is inconsistent 
with the requirement to file the data in a structured electronic 
format.

Page 263, Instruction No. 8

    1. Change: The Commission is deleting the current text of this 
instruction and is replacing that text with the following language: 
``Report in columns (i) through (l) how the taxes were distributed. 
Report in column (i) only the amounts charged to Accounts 408.1 and 
409.1 pertaining to electric operations. Report in column (l) the 
amounts charged to Accounts 408.1 and 409.1 pertaining to other utility 
departments and amounts charged to Accounts 408.2 and 409.2. Also show 
in column (l) the taxes charged to utility plant or other balance sheet 
accounts.''
    2. Reason: The current instruction is confusing.

Pages 350-351, Instructions Nos. 2 and 4, and Column Headings for (d), 
(e), (i) and (l)

    1. Change: The Commission is deleting the text of Instruction No. 2 
and replacing the text of that instruction with the following language: 
``Report in columns (b) and (c) only the current year's expenses that 
are not deferred and the current year's amortization of amounts 
deferred in previous years.''
    The Commission is also revising the related column (d) heading to 
read: ``Total Expenses for Current Year (b)+(c)''
    The Commission is deleting Instruction No. 4 and renumbering 
Instruction Nos. 5 and 6 as Nos. 4 and 5.
    Finally, the Commission is revising the references to Account 186 
that appear in the column headings for (e), (i) and (l) to read 
``Account 182.3''.
    2. Reason: Current Instruction No. 2 is confusing; current 
Instruction No. 4 is outdated; and, to effect the necessary changes, 
the Commission must renumber certain instructions and revise column 
headings accordingly.

V. Environmental Statement

    Commission regulations require that an environmental assessment or 
an environmental impact statement be prepared for any Commission action 
that may have a significant adverse effect on the human environment. 
7 The Commission has categorically excluded certain actions from 
this requirement as not having a significant effect on the human 
environment. 8 No environmental consideration is necessary for the 
promulgation of a rule that is clarifying, corrective or procedural. 
9 Because the changes in the Form No. 1 instructions that the 
Commission is making here are merely procedural and clarifying, and 
simply correct ambiguity in certain of the instructions, no 
environmental statement is necessary.
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    \7\ Regulations Implementing the National Environmental Policy 
Act, Order No. 486, 52 FR 47897 (Dec. 17, 1987), FERC Stats. & Regs. 
Regulations Preambles 1986-1990 para. 30,783 (1987) (codified at 18 
CFR Part 380).
    \8\ 18 CFR 380.4.
    \9\ 18 CFR 380.4(a)(2)(ii).
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VI. Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act 10 requires rulemakings either 
to contain a description and analysis of the impact the rule will have 
on small entities or to certify that the rule will not have a 
substantial economic impact on a substantial number of small entities. 
Because most respondents do not fall within the definition of ``small 
entity,'' 11 the Commission certifies
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    \10\ 5 U.S.C. 601-612.
    \11\ See 5 U.S.C. 601(3), citing to section 3 of the Small 
Business Act, 15 U.S.C. 632, which defines a ``small business 
concern'' as a business which is independently owned and operated 
and which is not dominant in its field of operation.
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    that this rule will not have a significant economic impact on a 
substantial number of small entities.

VII. Information Collection Statement

    Office of Management and Budget (OMB) regulations require OMB to 
approve certain information collection requirements imposed by an 
agency 12. The information collection requirements in the final 
rule are contained in FERC Form No. 1.
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    \12\ 5 CFR 1320.12.
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    Title: FERC Form No. 1 ``Annual Report of Major Electric Utilities, 
Licensees and Others''.
    Action: Final Rule.
    OMB Control No.: 1902-0021 (Respondents shall not be penalized for 
failure to respond to this collection of information unless the 
collection of information displays a valid OMB control number).
    Respondents: Business or other for profit entities.
    Frequency of responses: Annually
    Necessity of the information: The Commission uses the data 
collected to carry out its regulatory responsibilities. The 
Commission's Office of Chief Accountant uses the data in its audit 
program and continuous review of the financial condition of regulated 
companies. The Office of Electric Power Regulation (OEPR) uses the data 
in rate and other proceedings, and the Offices of Hydroelectric 
Licensing (OHL), Economic Policy (OEP) and General Counsel (OGC) use 
the data in investigations and programs relating to the administration 
of the Federal Power Act (FPA).
    The FPA mandates the collection of data needed by the Commission to 
perform its regulatory responsibilities in, inter alia, the setting of 
just and reasonable rates. The Commission could be held in violation of 
the FPA if the data were not collected.
    The final rule will not change the reporting requirements of FERC 
Form No. 1. This rule therefore is not subject to OMB review. The 
Commission is submitting a copy of the proposed rule to OMB for 
information purposes only. Interested persons may obtain information on 
these reporting requirements by contacting the Federal Energy 
Regulatory Commission, 888 First Street, NE. Washington, DC. 20426 
[Attention: Michael Miller, Information Services Division, (202) 208-
1415]. Comments on the requirements of this rule can be sent to the 
Office of Information and Regulatory Affairs of OMB [Attention: Desk 
Officer for the Federal Energy Regulatory Commission]; FAX: (202) 395-
7285; telephone: (202) 395-3087.

VIII. Administrative Findings and Effective Date

    The Administrative Procedure Act (APA) 13 requires rulemakings 
to be published in the Federal Register. The APA also mandates that an 
opportunity for comments be provided when an agency promulgates 
regulations. However, notice and comment are not required under the APA 
when the agency for good cause finds that notice and public procedure 
thereon are impracticable, unnecessary or contrary to the public 
interest. 14
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    \13\ 5 U.S.C. 551-559.
    \14\ 5 U.S.C. 553(B); e.g., Mid-Tex Electric Cooperative, Inc. 
v. FERC, 822 F.2d 1123 (D.C. Cir. 1987).
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    The Commission finds that notice and comment are unnecessary for 
this rulemaking. As explained above, this

[[Page 49665]]

final rule is merely procedural, clarifying and ministerial in nature. 
The Commission is merely clarifying its Form No. 1 instructions and 
making them more compatible with the requirement of electronic filing. 
The Commission, therefore, finds good cause to make this rule effective 
October 23, 1996.

IX. Congressional Notification

    The Small Business Regulatory Enforcement Fairness Act of 1996 
requires agencies to report to Congress on the promulgation of certain 
final rules prior to their effective dates. 15 That reporting 
requirement does not apply to this final rule because it falls within a 
statutory exception for rules relating to procedural matters. 16
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    \15\ 5 U.S.C. 801 (1994).
    \16\ 5 U.S.C. 804(3)(B) (1994).
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List of Subjects

18 CFR Part 141

    Electric power; Reporting and recordkeeping requirements.

    By the Commission.
Lois D. Cashell,
Secretary.

    In consideration of the foregoing, the Commission amends the 
instructions for Form No. 1 as appear in the Appendix.

    Note: This Appendix will not be codified in the Code of Federal 
Regulations.

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APPENDIX
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[FR Doc. 96-24261 Filed 9-20-96; 8:45 am]
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