[Federal Register Volume 63, Number 96 (Tuesday, May 19, 1998)]
[Proposed Rules]
[Pages 27529-27533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13294]


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DEPARTMENT OF ENERGY

18 CFR Part 385

Federal Energy Regulatory Commission.
[Docket No. PL98-1-000]


Public Access to Information and Electronic Filing; Request For 
Comments and Notice of Intent to Hold technical Conference

May 13, 1998.
AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Request for Comments for Notice of Intent to Hold Technical 
Conference.

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SUMMARY: The Federal Energy Regulatory Commission (Commission) intends 
to develop a comprehensive information management system that accepts 
filings and disseminates information electronically. The Commission 
seeks public comment to determine the best way to implement its 
electronic filing initiative. After reviewing the comments, the 
Commission intends to hold a technical conference to discuss its 
implementation process.

DATES: Comments are due June 30, 1998.

ADDRESSES: Send comments to: Office of the Secretary, Federal Energy 
Regulatory Commission, 888 First Street, N.E., Washington, D.C. 20426.

FOR FURTHER INFORMATION CONTACT:
Brooks Carter, Office of the Chief Information Officer, Federal Energy 
Regulatory Commission, 888 First Street, NE, Washington, DC 20426, 
(202) 501-8145.
Carolyn Van Der Jagt, Office of the General Counsel, Federal Energy 
Regulatory Commission, 888 First Street, NE, Washington, D.C. 20426, 
(202) 208-2246.

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, Room 2A, Washington, DC 20426.
    The Commission Issuance Posting System (CIPS) provides access to 
the texts of formal documents issued by the Commission. CIPS can be 
accessed via Internet through FERC's Homepage (http://www.ferc.fed.us) 
using the CIPS Link or the Energy Information Online icon. The full 
text of this document will be available on CIPS in ASCII and 
WordPerfect 6.1 format. CIPS is also available through the Commission's 
electronic bulletin board service 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. 
To access CIPS, set your communications software to 19200, 14400, 
12000, 9600, 7200, 4800, 2400, or 1200 bps, full duplex, no parity, 8 
data bits and 1 stop bit. User assistance is available at 202-208-2474 
or by E-mail to [email protected].
    This document is also available through the Commission's Records 
and Information Management System (RIMS), an electronic storage and 
retrieval system of documents submitted to and issued by the Commission 
after November 16, 1981. Documents from November 1995 to the present 
can be viewed and printed. RIMS is available in the Public Reference 
Room or remotely via Internet through FERC's Homepage using the RIMS 
link or the Energy Information Online icon. User assistance is 
available at 202-208-2222, or by E-mail to [email protected].
    Finally, the complete text on diskette in WorkPerfect format may be 
purchased from the Commission's copy contractor, La Dorn System 
Corporation. La Dorn Systems Corporation is located in the Public 
Reference Room at 888 First Street, NE., Washington, DC 20426.

I. Introduction

    The growing availability and use of electronic media and the 
increasing competitiveness of the natural gas, oil, and electric 
industries are compelling the Federal Energy Regulatory Commission 
(Commission) to manage its information resources more strategically. 
Advances in information technology (IT) permit the filing and 
dissemination of information at a faster rate and more cost-effectively 
than the traditional paper distribution methods.
    The Commission's ultimate goal is to improve its use of IT to 
reduce regulatory burdens, cut processing times, simplify filing 
processes, and generate better information for use by its staff, 
regulated industries, and the public. The Commission views its efforts 
to implement a system for electronic filing and dissemination of 
information as a large and complex undertaking. It believes that 
certain

[[Page 27530]]

aspects of electronic filings could be implemented relatively easily in 
the near future, whereas, other aspects may take more time to develop.
    The Commission requests comments to determine the best way to 
proceed with developing a faster, more cost-efficient electronic system 
for accepting, processing, and distributing the myriad of filings that 
it currently receives on paper. The Commission requests input from the 
industries it regulates and other interested parties, including 
software developers and standards setting organizations. After 
reviewing the comments, the Commission intends to hold a technical 
conference to discuss its implementation process and to establish 
various working groups to investigate the requirements necessary for 
the Commission to achieve its goal of moving towards a more efficient, 
cost-effective, paperless environment and the options available to meet 
that goal. The Commission will issue a separate, later notice 
announcing the date, time, and location for the technical conference.

II. Background

    On November 7, 1997, the Chairman of the Commission hosted a round 
table forum to discuss reform of the Commission's regulatory processes. 
The November 7 symposium focused on public access to information and 
standards for electronic filing. The round-table forum included 
Commission staff and representatives of oil and natural gas pipelines, 
electric utilities, hydropower interests, customer groups, and other 
agencies with experience in electronic filing. The symposium featured a 
presentation by officials of the National Energy Board of Canada, who 
described their electronic filing program, and an on-line demonstration 
of the Federal Communication Commission's (FCC) Internet World Wide Web 
Site.\1\ Generally, the symposium participants enthusiastically 
supported the Commission's endeavors to further proceed with electronic 
filing.
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    \1\ Commission staff also demonstrated the Commission's Internet 
site, which came on-line on November 10, 1997.
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    The Commission previously has developed regulations for electronic 
filing of certain information as part of its ongoing effort to improve 
its ability to process information and provide information to the 
public. Gas pipelines file tariffs electronically and file various 
portions of their rate cases in specified electronic format.\2\ 
Electric utilities proposing to merge file certain competitive analyses 
data electronically.\3\ Electric utilities and licensees who file FERC 
Form No. 1 file that form electronically.\4\ Other reports and forms 
also are filed electronically.\5\ The Commission further has encouraged 
those who comment on proposed rules to file copies of their comments in 
electronic format on diskette and by Internet E-Mail.\6\
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    \2\ 18 CFR 154.4; 18 CFR 385.2011(b); Revisions to Uniform 
System of Accounts, Forms, Statements, and Reporting Requirements 
for Natural Gas Companies, 60 FR 53019 (Oct. 11, 1995), FERC Stats. 
and Regs. Regulation Preambles Jan. 1991 to June 1996 para.31.026 at 
31,517 (Sep. 28, 1995).
    \3\ Inquiry Concerning the Commission's Merger Policy under the 
Federal Power Act: Policy Statement, 61 FR 68,595 (Dec. 30, 1996), 
FERC Stats. & Regs. para.31,044 at 30,135, 30,138 (1996), order on 
reconsideration, 79 FERC para.61,321 (1997).
    \4\ 18 CFR 141.1(b)(2); 18 CFR 385.2011(a)(6).
    \5\ 18 CFR 385.2011(a).
    \6\ See Standards For Business Practices of Interstate Natural 
Gas Pipelines, Notice of Proposed Rulemaking, 61 FR 58790 (Nov. 19, 
1996), FERC Stats. & Regs. Proposed Regulations para.32,521 (Nov. 
13, 1996).
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    The Commission believes that electronic filing should be more 
efficient and cost-effective for both the Commission and those filing 
with the Commission. For the filer, electronic filing is faster than 
paper filing and eliminates the need to arrange for messenger or other 
services to hand deliver paper copies of the Commission. For the 
Commission, electronic filing eliminates the need to process paper 
filings, and electronic files are easier, and take less space to store 
than paper files.
    Perhaps even more important, electronic files provide enhanced 
retrieval and document processing capability. Electronic files can be 
posted on the Internet or other electronic mediums for viewing and 
downloading. Search and other electronic cataloguing programs can be 
used to find specific information. Finally, portions of electronic 
files can be copied and pasted into other documents.

III. Request for Comments

    The Commission requests comments that address the issues and 
questions raised below.

A. Filing Format

    Establishing the format(s) for electronically filed documents 
creates numerous complex requirements, including finding a format(s) 
that: (1) is easy for the filing party to create; (2) is easy for the 
Commission to process electronically with minimal human interaction; 
(3) can be quickly and accurately published on the Commission's home 
page for viewing and downloading using most common browsers; (4) 
complies with the record retention requirements of the National 
Archives and Records Administration (NARA); and (5) is searchable and 
from which text or other information can be exported into other 
documents or applications. Commenters should consider these issues in 
their comments.
    The filings the Commission presently accepts, processes, and 
distributes vary from routine text-only filings to complex 
environmental and engineering data in natural gas certificate and 
hydroelectronic filings that include tables, graphs, charts, maps, 
blueprints, and photographs. Some of these documents are small and 
could be filed electronically relatively easily. However, some filings 
are quite large and may require different consideration. The Commission 
believes that certain types of documents common to all industries, such 
as tariff filings, could be filed in the same format. However, the 
Commission does not believe that one particular format would be 
suitable for all times of filings.
    Possible electronic filing formats include, but are not limited to: 
native proprietary and non-proprietary word processing spreadsheet, or 
text formats; Standard Generalized Markup Language (SGML); Hypertext 
Markup Language (HTML); Extensible Markup Language (XML); Portable 
Document Format (PDF); and Rich Text Format (RTF).
    Each format option has its own particular advantages and 
limitations. For example, using numerous native proprietary and non-
proprietary formats is the least expensive option for filers. However, 
the Commission would have to support all the different software 
products and versions. Further, anyone downloading the filed documents 
would also need the same capabilities unless the Commission converts 
the documents into one usable format.\7\ Converting files raises 
several additional concerns. Different formats do not always accurately 
convert into the new format. Some conversions do not preserve the 
original fonts; certain text enhancements such as bolding and 
underlining may be eliminated; or the conversion drops footnote numbers 
or converts them to text. This also creates the problem of verifying 
the accuracy of the converted document.
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    \7\ For example, the FCC accepts tariff documents in 44 
different formats and converts the documents to PDF files.
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    HTML works well for major natural gas certificate filings because 
it is relatively easy to incorporate graphs, charts, and other types of 
information into HTML documents. However, each word processing or 
spreadsheet application converts to HTML according

[[Page 27531]]

to its own specifications and will not always handle sophisticated 
formatting options. Additionally, hand coding of HTML may be required 
to improve the presentation of the document.
    SGML and XML may be difficult to use and would require users to 
purchase additional software. Further, the Commission would have to 
develop the Document Type Definitions for any filings based on those 
standards. PDF preserves the integrity of the original document, so 
that the PDF document looks like the document as if it were printed by 
the original word processing format. It also converts tables and other 
graphics. However, it has limited search capabilities and filers would 
have to purchase Adobe Systems Incorporated's software in order to 
create documents in PDF format.
    This is just a partial list of some of the problems and limitations 
that the Commission perceives as issues in determining the appropriate 
format(s) for its electronic filing initiative. Below is a list of 
questions on which the Commission would like comments to assist it in 
evaluating different formats it could use for electronic filings. This 
list is not meant to be all inclusive. Commenters are invited to 
present any additional information that may be relevant to the 
Commission's investigation. When responding to the questions, the 
commenter should note if its response is affected by the type of filing 
it makes and/or by certain industry-specific requirements.\8\
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    \8\ The Appendix to this order contains a compendium of the 
questions contained in the body of the order.
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    Specifically, the Commission seeks comments on the following: (1) 
What format(s) should the Commission consider for its different types 
of filings (please specify)? (2) What are the pros and cons of each 
format and what should the Commission and/or filer do to remedy the 
cons? (3) Are there certain filings for which the Commission can 
implement electronic filing relatively easily in the near future 
(please specify)? (4) What types of filings will require more time and 
effort to implement electronic filing (please specify): (5) How do you 
think the Commission should proceed in selecting which format(s) to use 
for which filings?

B. Citations

    Another problem with electronic filing is maintaining comparability 
in citation format between electronic and printed versions of a 
document. The user of an electronic document must be able to locate the 
appropriate portion of the document cited by someone who used the paper 
copy.
    As discussed above, PDF format is designed to maintain the 
structure and page formatting of the original document. Another 
alternative that eliminates the problems of matching page numbers band 
improves citation accuracy is for the filer to number the paragraphs in 
the filing. Numbering paragraphs will permit accurate citation because 
the numbering is not susceptible to changes resulting from margin or 
printer settings. (6) What citation format should the Commission 
establish for electronic filings and issued documents?

C. Signatures

    The Commission's regulations require that all filings with the 
Commission must be signed.\9\ The existence of such a requirement, 
created when documents were filed on paper, raises a number of 
questions when documents are filed electronically. (7) Is the signature 
requirement important enough to be retained? (8) If the Commission does 
not require signatures, how would the filing party verify that the 
contents of the filing are true? (9) If only certain filings need to be 
signed, should the Commission establish electronic signature 
requirements for those specific filings (please specify)?
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    \9\ 18 CFR 385.2005 (1997).
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D. Privileged Material

    While much of the information filed with the Commission is subject 
to public disclosure, the Commission's regulations exempt certain 
information. For example, site-specific historic preservation 
information in archaeological survey reports is considered non-public 
information. (10) How should privilege documents be handled? (11) How 
should documents be filed that are only partially privileged?

E. Methods of Electronic Filing

    The Commission currently receives its filings on 3\1/2\-inch 
diskettes formatted for MS-DOS based computers. However, the Commission 
has found that diskette-type filings: (1) require time-consuming 
processing; (2) are cumbersome to store; and (3) are susceptible to 
viruses. In one instance, in Docket No. CP98-97-000 the Commission 
received, as a demonstration project, a certificate application from 
Great Lakes Gas Transmission Limited Partnership which was formatted in 
HTML on a CD-ROM. With some modifications, the Commission posted the 
application on its Internet site.
    There are several methods the Commission can use to accommodate 
electronic filings. For very simple filings, such as motions to 
intervene, the Commission can use an HTML form that intervenors can 
complete interactively. Information from the intervention could be 
loaded into a service list database, which in turm could be updated on 
the Commission's web site. In other cases, the Commission could use an 
HTML form for basic filer information to which the filer would have the 
ability to attach files and upload them to the Commission via the 
Internet. (12) which method(s) should the Commission use for electronic 
filing: (i) the HTML forms approaches discussed below; (ii) computer-
to-computer using a leased line/private network; (iii) uploading to the 
Commission's electronic bulletin board; or (iv) some other method 
(please specify)? (13) Should the Commission consider different methods 
for different types of filings (please specify)? (14) How should the 
Commission handle large filings?

F. The Hearing Process

    Electronic filing of documents will affect the Commission's hearing 
process in a number of ways. Although motions, pleadings, and testimony 
are filed with the Commission in the same manner as other filings, 
discovery requests and responses between and among participants 
generally are not required to be filed. Discovery often involves unique 
accommodations. For instance, a participant may be invited to review 
voluminous files of documents related to a particular matter. It may be 
that only a tiny subset of those documents is eventually introduced at 
hearing or relied on by witnesses in the proceeding. Exhibits 
introduced at hearings are also not filed by the participants, but are 
instead submitted to the court reporter for introduction into the 
record. Participants at Commission hearings currently rely on paper 
copies of filed documents, and on paper copies of discovery request, 
discovery responses, and trial exhibits. (15) How should the discovery 
process be modified, if at all, to accommodate electronic filing? (16) 
How should trial exhibits be introduced into the record to accommodate 
electronic filing? (17) How should trials be conducted if pleadings, 
testimony, and exhibits have been filed and served electronically?

G. Oaths, Attestations, and Notarization

    Certain filings require verification under oath, attestations, or 
notarization. For example, under Parts 34 of the

[[Page 27532]]

Commission's regulations and the Federal Power Act, an application for 
authority to issue securities requires that the application be signed 
by an authorized representative and be verified under oath. (18) To the 
extent such verification is only required by the Commission's 
regulations and not be statute, are these requirement important enough 
to be retained? (19) How should the Commission accommodate filings 
which require verification under oath, attestations, and notarization?

H. Security, Integrity, and Authentication

    The security, integrity, and authentication of electronic filings 
is a significant concern. (20) Should the Commission consider any 
special authentication or security measures, such as encryption, 
digital signatures, logon ID's, and passwords? (21) Are special 
measures only needed for certain documents (please specify)? (22) What 
steps should the Commission take to detect security breaches in 
filings? (23) How should the security breaches be handled?

I. Automatic Acknowledgment

    The Commission intends to implement an automatic acknowledgment 
mechanism. (24) How should the Commission provide automatic 
acknowledgment? (25) Should the receipt be sent to the web browser or 
by E-Mail? (26) How should the Commission notify the filer of the 
docket number of an electronic filing in a new proceeding? (27) Would 
posting the docket number on the Commission's Internet site be 
sufficient?

J. Service

    The Commission's regulations currently do not prevent parties from 
agreeing to electronic service.\10\ The Commission intends to clarify 
its rules to better facilitate electronic service. Additionally, the 
Commission presently provides paper copies of its issuances to all 
parties in a proceeding. It intends to provide electronic service for 
its issuances in the future. (28) Should the Commission encourage 
electronic service between parties over the Internet? (29) Should the 
Commission facilitate electronic service by posting documents on its 
Internet site or should the party making the filing make it available 
on its own Internet site? (30) Is it adequate for the Commission to 
serve notice to the parties in a proceeding that it has issued an order 
or should it disseminate the order directly to the parties 
electronically?
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    \10\ See 18 CFR 385.2010(f)(2).
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IV. Public Comment Procedures

    The Commission invites interested persons to submit comments, data 
views, and other information concerning the matters set out above.
    To facilitate the Commission's review of the comments, commenters 
are requested to provide an executive summary of their position on the 
issues raised. Commenters are requested to identify the specific 
question posed that their discussion addresses and to use appropriate 
headings. Additionally, commenters should double space their comments.
    The original and 14 copies of such comments must be received by the 
Commission before 5:00 p.m., June 30, 1998. Comments should be 
submitted to the Office of the Secretary, Federal Energy Regulatory 
Commission, 888 First Street, NE., Washington DC 20426 and should refer 
to Docket No. PL98-1-000.
    Additionally, comments should be submitted electronically. 
Commenters are encouraged to file comments using Internet E-Mail.
    Comments should be submitted through the Internet by E-Mail to 
[email protected] in the following format: on the subject line, 
specify Docket No. PL98-1-000; in the body of the E-Mail message, 
specify the name of the filing entity and the name, telephone number, 
and E-Mail address of a contact person; and attach the comment in 
WordPerfect 6.1 or lower format or in ASCII format as an attachment to 
the E-Mail message. The Commission will send a reply to the E-Mail to 
acknowledge receipt. Questions or comments on electronic filing using 
Internet E-Mail should be directed to Brooks Carter at 202 501-8145, E-
Mail address [email protected].
    Commenters also can submit comments on computer diskette in 
WordPerfect 6.1 or lower format or in ASCII format, with the name of 
the filer and Docket No. PL98-1-000 on the outside of the diskette.
    All comments will be placed in the Commission's public files and 
will be available for inspection in the Commission's Public Reference 
room at 888 First Street, NE., Washington, DC 20426, during regular 
business hours. Additionally, comments can be viewed and printed 
remotely via the Internet through FERC's Homepage using the RIMS link 
or the Energy Information Online icon. User assistance is available at 
202-208-2222, or by E-mail to [email protected].

    By direction of the Commission.
Linwood A Watson, Jr.,
Acting Secretary.

Appendix--Index of Questions

    For the ease of those submitting comments, the following is a 
compendium of the questions contained in body of this order:

Filing formats

    (1) What format(s) should the Commission consider for its 
different types of filings (please specify)?
    (2) What are the pros and cons of each format and what should 
the Commission and/or filer do to remedy the cons?
    (3) Are there certain filings for which the Commission can 
implement electronic filing relatively easily in the near future 
(please specify)?
    (4) What types of filings will require more time and effort to 
implement electronic filing (please specify)?
    (5) How do you think the Commission should proceed in selecting 
which format(s) to use for which filings?

Citations

    (6) What citation format should the Commission establish for 
electronic filings and issued documents?

Signatures

    (7) Is the signature requirement important enough to be 
retained?
    (8) If the Commission does not require signatures, how would the 
filing party verify that the contents of the filing are true?
    (9) If only certain filings need to be signed, should the 
Commission establish electronic signature requirements for those 
specific filings (please specify)?

Privileged Material

    (10) How should privileged documents be handled?
    (11  How should documents be filed that are only partially 
privileged?

Methods of Electronic Filing

    (12) Which method(s) should the Commission use for electronic 
filing: (i) the approaches discussed above; (ii) computer-to-
computer using a leased line/private network; (iii) uploading to the 
Commission's electronic bulletin board; or (iv) some other method 
(please specify)?
    (13) Should the Commission consider different methods for 
different types of filings (please specify)?
    (14) How should the Commission handle large filings?

The Hearing Process

    (15) How should the discovery process be modified, if at all, to 
accommodate electronic filing?
    (16) How should trial exhibits be introduced into the record to 
accommodate electronic filing?
    (17) How should trials be conducted if pleadings, testimony, and 
exhibits have been filed and served electronically?

Oaths, Attestations, and Notarization

    (18) To the extent such verification is only required by the 
Commission's regulations

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and not be statute, are these requirements important enough to be 
retained?
    (19) How should the Commission accommodate filings which require 
verification under oath, attestations, and notarization?

Security, Integrity, and Authentication

    (20) Should the Commission consider any special authentication 
or security measures, such as encryption, digital signatures, logon 
ID's and passwords?
    (21) Are special measures only needed for certain documents 
(please specify)?
    (22) What steps should the Commission take to detect security 
breaches in filings?
    (23) How should the security breaches be handled?

Automatic Acknowledgment

    (24) How should the Commission provide automatic acknowledgment?
    (25) Should the receipt be sent to the web browser or by E-Mail?
    (26) How should the Commission notify the filer of the docket 
number of an electronic filing in a new proceeding?
    (27) Would posting the docket number on the Commission's 
Internet site be sufficient?

Service

    (28) Should the Commission encourage electronic service between 
parties over the Internet?
    (29) Should the Commission facilitate electronic service by 
posting documents on its Internet site or should the party making 
the filing make it available on its own Internet site?
    (3) Is it adequate for the Commission to serve notice to the 
parties in a proceeding that it has issued an order, or should it 
disseminate the order directly to the parties electronically?

[FR Doc. 98-13294 Filed 5-18-98; 8:45 am]
BILLING CODE 6717-01-M